Foshan Electrical FOSHAN ELECTRICAL AND LIGHTING CO. LTD.ANNUAL REPORT 2024 April 2025 1Foshan Electrical ANNUAL REPORT 2024 Part I Important Notes Table of Contents and Definitions The Board of Directors the Supervisory Committee as well as the directors supervisors and senior management of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality accuracy and completeness of the contents of this Report and its summary and shall be jointly and severally liable for any misrepresentations misleading statements or material omissions therein.Wan Shan the Company’s legal representative Tang Qionglan the Company’s Chief Financial Officer (CFO) and Li Yizhi the person-in-charge of the Company’s accounting organ (equivalent to accounting manager) hereby guarantee that the Financial Statements carried in this Report are factual accurate and complete.All the Company’s directors have attended the Board of Directors meeting for the review of this Report and its summary.The future plans and other forward-looking statements as well as the cautionary statements mentioned in this Report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to be well aware of possible risks.The Company has described in detail in this Report the risk of macro-economic fluctuations and intensified market competition the risk of rising raw material prices the risk of exchange rate fluctuations the risk of the recoverability of accounts receivable. Please refer to the section headed “Potential risks facing the Company and countermeasures” in Item XI of Part III of this Report.The profit distribution plan approved by the Board of Directors is as follows: Based on the total share capital of 1535778230 shares at the time of disclosure of the Company's 2024 Annual Report a cash dividend of RMB1.2 (including tax) will be distributed for every ten shares to all shareholders with no bonus shares (including tax) to be issued and no capitalisation of reserves into share capital. If the total number of shares eligible for the profit distribution changes due to share repurchases equity incentive grants etc. the Company will adjust the total dividend amount accordingly in accordance with the principle of maintaining the distribution ratio per share unchanged.This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions the Chinese version shall prevail. 2Foshan Electrical 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 ........ 12 Part IV Corporate Governance ....................... 52 Part V Environmental and Social Responsibility .... 809 Part VI Significant Events ......................... 91 Part VII Share Changes and Shareholder Information 1308 Part VIII Preference Shares ...................... 1442 Part IX Corporate Bonds .......................... 1453 Part X Financial Statements ...................... 1464 3Foshan Electrical Documents Available for Reference Investors and interested parties can get access to the following materials in the Board of Directors’s Office (Strategic Investment Department) in the Company’s office building: 1. The financial statements signed and stamped by the Company’s legal representative Chief Financial Officer and the person-in-charge of the Company’s accounting organ. 2. The original copy of the Independent Auditor’s Report signed and stamped by the certified public accountants and stamped by the CPA firm. 3. The originals of all the Company’s announcements and documents disclosed to the public during the Reporting Period on the media designated by the China Securities Regulatory Commission (CSRC) for information disclosure. 4Foshan Electrical Definitions Term Refers Definition The “Company” “listed company” Refers Foshan Electrical and Lighting Co. Ltd.“FSL” or “we” Rising Holdings Group Refers Guangdong Rising Holdings Group Co. Ltd.Electronics Group Refers Guangdong Electronics Information Industry Group Ltd.Hong Kong Rising Investment Refers Rising Investment Development Limited Hongkong Wah Shing Refers Hongkong Wah Shing Holding Company Limited Guangdong Rising Capital Investment Co. Ltd.Rising Capital Refers (formerly known as “Guangdong Rising Finance HoldingCo. Ltd. (GD Rising Finance)) Shenzhen Rising Investment Refers Shenzhen Rising Investment Development Co. Ltd.NationStar Optoelectronics Refers Foshan NationStar Optoelectronics Co. Ltd.NationStar Semiconductor Refers Foshan NationStar Semiconductor Technology Co. Ltd.Sigma Refers Foshan Sigma Venture Capital Co. Ltd.Liaowang Auto Lamp Refers Nanning Liaowang Auto Lamp Co. Ltd.Fozhao Huaguang Refers Fozhao Huaguang (Maoming) Technology Co. Ltd.Zhejiang Hule Electrical Equipment Manufacturing Co.Hule Electrical Equipment Refers Ltd.Beijing Airtrust Refers Beijing Airtrust Technology Co. Ltd.Guangdong Fenghua Semiconductor Technology Co.Fenghua Semiconductor Refers Ltd. (formerly known as “Guangdong Yuejing High-techCo. Ltd.”) CSRC Refers China Securities Regulatory Commission SZSE Refers Shenzhen Stock Exchange General meeting of Foshan Electrical and Lighting Co.General meeting Refers Ltd.The Board of Directors of Foshan Electrical and Lighting Board of Directors Refers Co. Ltd.The Supervisory Committee of Foshan Electrical and Supervisory Committee Refers Lighting Co. Ltd.Expressed in the Chinese currency of Renminbi RMB RMB’0000 RMB’00000000 Refers expressed in tens of thousands of Renminbi expressed in hundreds of millions of Renminbi 5Foshan Electrical 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 Electrical and Lighting Co.Ltd any) Abbr. (if any) FSL Legal representative Wan Shan No. 64 Fenjiang North Road Chancheng District Foshan City Guangdong Registered address Province P.R.China Zip code 528000 Changes of registered address N/A No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province Office address P.R.China Zip code 528051 Company website www.chinafsl.com Email address gzfsligh@pub.foshan.gd.cn II Contact Information Secretary of the Board of Directors Securities Representative Name Huang Zhenhuan Huang Yufen No. 8 Zhihui Road Chancheng No. 8 Zhihui Road Chancheng Address District Foshan City Guangdong District Foshan City Guangdong Province P.R.China Province P.R.China Tel. (0757) 82810239 (0757) 82966028 Fax (0757) 82816276 (0757) 82816276 Email address fsldsh@chinafsl.com fslhyf@163.com III Media for Information Disclosure and Place where this Report Is Lodged Stock exchange website where this Report is disclosed http://www.cninfo.com.cn Media and website where this Report is disclosed Securities Daily http://www.zqrb.cn Board of Directors Office FSL Office Building 8 Zhihui Road Chancheng District Foshan City Place where this Report is lodged Guangdong Province P.R.China (Strategic Investment Department) IV Change to Company Registered Information Unified social credit code 91440000190352575W Change to principal activity of the Company since Unchanged going public (if any) In April 2006 the State-owned Assets Supervision and Administration Commission (SASAC) of Foshan Municipal People’s Government the former controlling shareholder of the Company transferred Every change of controlling shareholder since 13.47% of shares it held in the Company to OSRAM incorporation (if any) Prosperity Holding Company Limited (later renamed as “OSRAM Holding Company Limited”) and at the same time SASAC of Foshan Municipal People’s Government transferred 10.50% of shares it held in the 6Foshan Electrical Company to Prosperity Lamps & Components Limited.Upon completion of such transfer the biggest shareholder of the Company was OSRAM Prosperity Holding Company Limited and the Company had no any controlling shareholder or actual controller. In December 2015 OSRAM of Germany transferred 100% equity it held in OSRAM Holding Company Limited (OSRAM Holding Company Limited held 13.47% of shares of the Company being the biggest shareholder of the Company and later renamed as “Hongkong Wah Shing Holding Company Limited”) to Electronics Group. In addition Electronics Group and its parties acting in concert (Rising Capital Shenzhen Rising Investment and Hong Kong Rising Investment) held 23.144% of the shares of the Company through increasing their shareholding of the Company.Electronics Group and its parties acting in concert became the controlling shareholder of the Company and Electronics Group is a wholly-owned subsidiary of Rising Holdings Group. In December 2021 wholly- owned subsidiaries of Rising Holdings Group Rising Capital and Shenzhen Rising Investment transferred 5.94% of shares they held in the Company to Rising Holdings Group through transfer by agreement for no compensation. Therefore Rising Holdings Group and its parties acting in concert held 30% of shares in the Company. In February 2022 the Company repurchased and retired certain shares and Rising Holdings Group and its parties acting in concert held 30.82% of shares in the Company. In November 2023 the Company carried out a private placement of 186783583 shares of A-share stock to specific parties of which Rising Holdings Group subscribed for 46695895 shares.Rising Holdings Group and its parties acting in concert held 30.12% of shares in the Company. From 3 June 2024 to 8 November 2024 Electronics Group and Hong Kong Wah Shing increased their shareholdings in the Company by 18342550 shares accounting for 1.18% of the Company’s total share capital. As of 31 December 2024 Rising Holdings Group and its parties acting in concert held 31.30% of shares in the Company. On 10 January 2025 the Company’s share repurchase and cancellation were completed and the Rising Holdings Group and its parties acting in concert held 31.57% of shares in the Company. As of the disclosure date of this Report due to the increased shareholding by Electronics Group Rising Holdings Group and its parties acting in concert held 31.75% of shares in the Company.V Other Information The independent audit firm hired by the Company: Name WUYIGE Certified Public Accountants LLP Room 2206 22/F 1 Zhichun Road Haidian District Office address Beijing Accountants writing signatures He Xiaojuan and Wang Xiaohan 7Foshan Electrical The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period: □Applicable □ Not applicable Name of sponsor Office address Name of representative Period of supervision Guotai Haitong Securities 618 Shangcheng Road Co. Ltd(formerly known Xu Zhenyu and Yang From 4 December 2023 to China (Shanghai) Pilot as Guotai Junan Securities Haoyue 31 December 2024 Free Trade Zone Co. Ltd.) The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period: □Applicable □Not applicable VI Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below.□Yes □No 2024-over-2023 202420232022 change (%) Operating revenue 9048237647.149057292003.90-0.10%8759965275.96 (RMB) Net profit attributable to the listed company’s 446184021.97 290357652.22 53.67% 230320570.67 shareholders (RMB) Net profit attributable to the list company’s 97753307.23274838768.63-64.43%222164265.49 shareholders before non-recurring gains and losses (RMB) Net cash cash flows from operating 598115335.88 1174389978.98 -49.07% 1064888320.69 activities (RMB) Basic earnings per 0.29050.212836.51%0.1707 share (EPS)-basic EPS-diluted 0.2881 0.2108 36.67% 0.1691 Weighted average return on equity 6.94% 5.51% 1.43% 4.13% (ROE) (%) Change of 31 December 2024 31 December 2024 31 December 2023 31 December 2022 over 31 December 2023(%) Total assets (RMB) 17159763456.64 16934439915.02 1.33% 15288917918.86 Equity attributable to the listed company’s 6574304305.27 6285442808.19 4.60% 5173011348.74 shareholders (RMB) Indicate by tick mark whether the lower of the net profit attributable to the listed company’s 8Foshan Electrical shareholders before and after non-recurring gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern.□Yes □No Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and losses was negative.□Yes □No VII Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under CAS and IAS □Applicable □Not applicable No difference for the Reporting Period. 2. Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under CAS and Foreign Accounting Standards □Applicable □Not applicable No difference for the Reporting Period.VIII Key Financial Information by Quarter Unit: RMB Q1 Q2 Q3 Q4 Operating revenue 2517243351.93 2267302415.49 2102727793.40 2160964086.32 Net profit attributable to the 83714220.74108514961.6458693073.41195261766.18 listed company’s shareholders Net profit attributable to the listed company’s shareholders after 76725491.16 102117421.61 38987283.45 -120076888.99 deducting non- recurring gains and losses Net cash flows from 77337687.93307255356.68186540571.9426981719.33 operating activities Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what have been disclosed in the Company’s quarterly or interim reports.□Yes □No IX Exceptional Gains and Losses □Applicable □ Not applicable 9Foshan Electrical Unit: RMB Item 2024 2023 2022 Note Gain or losses on disposal of non-current assets (including the portion offset for 374276636.74 11286004.48 -8216871.49 provisions for asset impairment) Government grants recognised in profit or loss (exclusive of those that are closely related to the Company’s normal business operations and given in accordance with 51867148.37 52146676.20 67165060.76 defined criteria and in compliance with government policies and have a continuing impact on the Company’s profit or loss) Gain or loss on fair value changes in financial assets and liabilities held by a non- financial enterprise as well as on disposal of financial assets and liabilities (exclusive 3881370.83 -10070899.66 -19057137.27 of the effective portion of hedges that is related to the Company’s normal business operations) Capital occupation charges on non-financial enterprises that are recorded into current 665872.11 224271.91 339583.00 profit or loss Reverse of provision for impairment of accounts receivable individually conducting 16742832.57 573448.92 1203963.23 impairment test Profits arising from business combination when the combined cost is less than the 2131597.43 recognised fair value of net assets of the merged company Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common 22504245.08 control from the period-beginning to combination dates net Gain or loss on debt restructuring -368531.60 Other non-operating income and expenses 11943647.794424223.1010557819.17 other than the above Less: Income tax effects 65001245.07 5440558.97 4192386.71 Non-controlling interests effects (after-tax) 47708614.43 37624282.39 62147970.59 Total 348430714.74 15518883.59 8156305.18 -- Others that meets the definition of non-recurring gains and losses: □Applicable □Not applicable There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.Explain the reasons if the Company classifies any non-recurring gains and losses item mentioned in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Exceptional Gain/Loss Items as a recurrent gain/loss item: □Applicable □Not applicable The Company involves no circumstances where the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities 10Foshan Electrical to the Public - Exceptional Gain/Loss Items are defined as recurring gains and losses. 11Foshan Electrical Part III Management Discussion and Analysis I Industry Overview for the Reporting Period In 2024 the global economy exhibited a complex and volatile landscape with an overall slowdown in development trends. On the one hand the domestic economy is undergoing a critical phase of structural adjustment and transformation with a continuous shift between traditional and emerging growth drivers. The challenges and difficulties facing development have increased. On the other hand although the total export volume of lighting products has remained generally stable prices have declined leading to heightened operational pressures for enterprises. Leading enterprises are continuously consolidating their market advantages by leveraging strengths in channels branding technology scale and capital. In contrast small and medium-sized enterprises lacking core competitiveness such as brand recognition and technological capability are gradually being marginalized. At the same time with the integration of 5G the Internet of Things and AI with lighting technologies leading enterprises in the industry are actively adjusting their product structures and market strategies. They are accelerating the transformation from providing single products to offering integrated solutions for smart cities smart homes healthy lighting and green lighting. These companies are expanding into new niche markets making breakthroughs in high value-added areas and creating new growth opportunities for the industry.Benefiting from the rapid development of the automotive industry market demand for vehicle lighting has continued to grow. According to statistics from the China Association of Automobile Manufacturers in 2024 China’s automobile production and sales reached 31.282 million units and 31.436 million units respectively representing year-on-year increases of 3.7% and 4.5%. The new energy vehicle industry achieved ongoing rapid growth. Statistically the output and sales of new energy vehicles for 2024 reached 12.888 million and 12.866 million up by 34.4% and 35.5% year on year respectively. Additionally the market share of new energy vehicles rose to 40.9%. With the significant growth in sales of new energy vehicles the rise of domestic automotive brands and the improvement of research and development capabilities and flexible service capabilities of enterprises along the entire industry chain Chinese auto parts enterprises have gradually been incorporated by vehicle companies into their supply chain systems. This has contributed to the continuously accelerated replacement with domestic products and given more opportunities to Chinese automotive light enterprises. At the same time with the advancement of automotive intelligence technologies vehicle lighting is also evolving toward greater electronic integration intelligence and diversification creating new development opportunities for the industry. The penetration rates of ADB headlights DLP headlights interactive taillights and multi-colour ambient lighting are steadily increasing driving up the overall value of vehicle lighting and enabling lighting enterprises to maintain their growth momentum.In 2024 the LED packaging industry advanced amid both challenges and opportunities. On the one hand intensified industry competition resulted in revenue growth without a corresponding increase in profits. On the other hand intensified market competition and technological advancement have created new opportunities for market development accelerating the industry’s transformation toward diversification and intelligence. Industry players are enhancing their overall competitiveness and seeking new growth drivers by adjusting their product portfolios and actively expanding into high value-added and high-growth-potential niche segments such as automotive LEDs Mini-LED backlighting and agricultural lighting. At the same time in response to shifting global market demand—particularly the rapid rise of demand in emerging markets—industry enterprises are actively expanding into overseas markets to increase their market share. 12Foshan Electrical II Principal Operations of the Company in the Reporting Period (I) Principal operations The Company has been committed to the R&D production and sale of high-quality and energy- efficient lighting products in order to provide integrated lighting solutions for customers. Since 2021 the Company has successively acquired and held control of Liaowang Auto Lamp NationStar Optoelectronics and Hule Electrical Equipment. The Company’s main business currently includes the research and development production and sales of general lighting and electrical products automotive lighting LED packaging products and more.The general lighting and electrical product business of the Company mainly covers LED light sources LED luminaries traditional lighting products and comprehensive lighting solutions for home lighting commercial lighting industrial lighting municipal road lighting and landscape lighting. Over recent years the Company has been exploring new fields including smart lighting healthy lighting marine lighting aviation lighting and animal and plant lighting.Electrical products mainly include switches sockets smart control panels and smart door locks.Based on its own automotive light sources and modules the Company relying on its majority-owned subsidiary Liaowang Auto Lamp has expanded the automotive lighting business into the automotive light assembly sector involving basically all the lights that an automobile requires such as headlights rear light combos fog lights backup lights interior lights and license plate lights. The main clients of Liaowang Auto Lamp include SAIC-GM-Wuling Automobile Chongqing Changan Automobile SERES IM Bestune SAIC Maxus Automotive and other whole-automobile manufacturers. And medium- and high-end products take up an increasing percentage of its total sales of automotive lights.The Company conducts LED packaging business mainly by relying on its majority-owned subsidiary NationStar Optoelectronics (stock code: 002449). The primary products include LED epitaxial wafers and chips LED packaging and component products integrated circuit packaging products and third generation compound semiconductor packaging products which are widely used for consumer electronics home appliances computers communications display and lighting products general lighting automotive lighting sterilization and purification plant lighting and other fields.(II) Business models 1. Procurement model The Company’s procurement department should ensure that the procured materials and products meet the prescribed requirements and that procurement activities are under control. Besides it should consider the needs of each department and the reasonable stock quantity before carrying out any procurement and 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 production plan for the next month 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. 13Foshan Electrical 3. Sales model The Company’s general lighting business adopts a dual sales model in the domestic market combining distributor-based distribution and direct supply for engineering projects.. The Company primarily sells in household commerce and e-commerce sale channels. For foreign sales the Company adopts the models of OEM and independent brands. The sale of products of independent brands abroad is carried out mainly via agencies.In the automotive lighting business in the factory-installed market the model of supplying automotive light products directly to OEMs is mainly adopted; in the aftermarket products are mainly sold by agencies.In the LED packaging business the direct sale model is mainly adopted in which products are sold through direct communication with clients.(III) Main driving forces for growthThe Company is committed to the overall development strategy of “new-type basic platform andlarge-scale new tracks” continuously enhancing innovation-driven efforts optimising industrial layouts promoting changes in marketing models advancing management improvements and vigorously exploring segmented market fields. Since 2021 the Company has successively acquired Liaowang Auto Lamp NationStar Optoelectronics and Hule Electrical Equipment significantly enhancing its competitiveness in the automotive lighting and marine lighting sectors. At the same time the integration of upstream and downstream resources along the LED industry chain has provided solid support for the Company’s rapid expansion.With the evolution of the industrial competition model consumers are getting increasingly concerned with product quality and brand. As a result lighting companies with insufficient competitiveness will be gradually elbowed out of the market while enterprises with core competitiveness will have more market opportunities. Capitalising on advantages in technology brand channels and scale the Company continuously launches high-tech-content new products through sustained R&D investment and technology innovation advancing the technological upgrade and quality improvement of main products. Simultaneously the Company is intensifying market exploration efforts optimising industrial layouts increasing production automation and digital management levels effectively controlling procurement costs and improving production efficiency. These initiatives have enabled the Company to secure a favorable position amid increasing market concentration further strengthening its market competitiveness.III Core Competitiveness Analysis The Company has been dedicated to the R&D manufacturing and sale of lighting products since its establishment. Through continuous investment in R&D and innovation branding channel development as well as vertical integration of the industrial chain the core competitiveness of the Company has been further strengthened which is mainly reflected in the following aspects: R&D technical advantage As a National High-Tech Enterprise a National Intellectual Property Demonstration Enterprise a Guangdong Manufacturing Champion Demonstration Enterprise one of the Top 100 Innovative Enterprises in Guangdong Province and one of the Top 100 Manufacturing Enterprises in Guangdong Province the Company possesses outstanding innovation capabilities and technological strength. The Company’s testing center is accredited by the China National Accreditation Service for Conformity Assessment (CNAS) enabling it to provide authoritative certification for product quality. In addition the Company and its subsidiaries have established 31 research and development platforms including 14Foshan Electrical the “Guangdong Provincial Enterprise Technology Centre” “Guangdong Provincial DoctoralWorkstation” “Guangdong Provincial Science and Technology Expert Workstation” “PostdoctoralResearch Station (Branch Station)” “Guangdong Provincial Engineering Technology Research andDevelopment Centre for Electric Light Sources” and the “Guangdong Provincial Industrial DesignCentre.” The Company has undertaken several key scientific and technological projects includingthe National Key R&D Program “Marine Agriculture and Freshwater Fisheries TechnologyInnovation” and Hainan Province “Land-Sea-Air” Technology Special Project. The Company has received numerous honors including the First Prize for Scientific and Technological Progress in China’s Machinery Industry the Second Prize of the China Invention and Entrepreneurship Achievement Award the Third Prize for Scientific and Technological Progress from the China National Light Industry Council the Gold Award at the National Age-friendly Design Competition and the Taiwan Golden Pin Design Award. Barriers with independent intellectual property have been established in numerous fields such as optics spectroscopy electronics IoT and AI. The Company and its subsidiaries have cumulatively obtained over 2600 authorized valid patents and led or participated in formulating more than 250 standards at international national and industry levels. By actively integrating internal and external resources the Company has collaborated in-depth with renowned universities and research institutes such as Tsinghua University Fudan University Hong Kong University of Science and Technology Wuhan University Dalian Ocean University the Chinese Academy of Sciences’ Institute of Deep-sea Science and Engineering and the Ji Hua Laboratory in industry-university-research partnerships. This has led to significant technological breakthroughs and technological achievement transformations spurring innovations in frontier technology fields establishing efficient R&D talent development channels and providing firm support for maintaining the Company’s technological leadership and ongoing product innovation.Liaowang Auto Lamp boasts a provincial enterprise technology centre a provincial R&D centre and a Guangxi automotive lighting parts engineering technology research centre; and established the Automotive Lighting Research Institute and multiple R&D centres. In recent yearsLiaowang Auto Lamp has increased R&D Investment accelerated investment in various lens modules and interactive signal lamp technologies and continuously enhanced its R&D strength. NationStar Optoelectronics has created 14 research platforms at or above provincial and ministerial 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 national “863” programme and the key national R&D programme in addition to more than 100 provincial and ministerial research projects. Besides it has won multiple honors such as “National Intellectual Property Demonstration Enterprise” “China Patent Gold Award” “NationalScience and Technology Progress Award (first/second prize)” as well as “GG Golden Globe Award”.Moreover it has constantly made breakthroughs and surmounted technological challenges in emerging areas such as Mini/Micro LED third-generation semiconductor SiC power devices and GaN devices smart health sensors automotive components and new optoelectronic components.Brand advantage As a national brand with 67 years of deep cultivation in the lighting industry the Company wasrecognised in 2024 by the Ministry of Commerce and four other ministries as a “China Time-honoredBrand” and was selected as one of the “Top Ten Cases of Innovation for China Time-honored Brands” by the Ministry of Commerce. The Company’s brand influence and value have continued to grow having been listed among the “Top 500 Most Valuable Chinese Brands” for 19 consecutive years. In 2024 with a brand value of RMB39382 million the Company rose to second place in the industry and made its debut on the “Asia’s 500 Most Influential Brands” list. By aligning improvements in corporate development positioning product design and user experience the Company has reshaped its corporate value system and refined its “Technology-FSL” brand strategy successfully completingthe launch of a renewed and upgraded brand image. Centring on a new brand image of “youth 15Foshan Electrical technology fashion” the Company implemented a multidimensional communication strategy.Offline efforts included illuminating the Canton Tower sponsoring the “Pearl River Cruise” university industrial design competitions and major traditional cultural events such as Crossing the Tongji Bridge as well as launching the “Millions Renewal Action” and participating in international automotive lighting exhibitions and other professional events at home and abroad. Online the Company released creative promotional videos such as Couples Watching Lights and leveraged official and new media platforms—including Xinhua News Agency and South-plus—to share compelling “FSL stories” behind major national projects such as the Shenzhen–Zhongshan Link the Huangmaohai Sea-Crossing Passage and Harbin Ice —Snow World. These efforts have accelerated the transformation of FSL from an industry brand into a mainstream consumer brand breathing new life into this time-honored enterprise. The brand “FSL” has become one of the most influential and popular industrial brands in China and the powerful brand influence has played a key role in driving the sustained growth of the Company’s sales. Liaowang Auto Lamp strictly abides by the national industry standards when producing automotive lights of the “Liaowang” brand. It has been hailed as a high-quality supplier of related automobile enterprises several times. NationStar Optoelectronics actively participates in various important industry exhibitions and forums and has earned high recognition both within and outside the industry through its profound professional background and active engagement. As a result it has received honors such as “Brand Power” and “Top Ten LEDPackaging 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 four 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 Chinese automotive light industry. It has accumulated stable whole-automobile manufacturing clients and has been developing customers of medium- and high-end and new energy vehicle makers. Its client entities are increasingly diverse.NationStar Optoelectronics has an excellent client structure. It has established a long-term cooperative relationship with industry-leading display manufacturers and internationally famous home appliance enterprises has successfully showcased its products in many large events and high- end venues at home and abroad and is widely recognized by end clients and the market. Hule Electrical Equipment is one of the major manufacturers in the ship lighting industry in China and has established long-term cooperative relationships with large domestic shipbuilding enterprises. The quality and satisfaction of its products are widely recognised by 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 cost of products but also shows in aspects such as raw material procurement and price negotiation. Liaowang Auto Lamp has production bases in Liuzhou Chongqing Qingdao Suzhou and Indonesia with the capacity to produce over five million sets of auto lamps annually. NationStar Optoelectronics began engaging in LED packaging in 1976. It is 16Foshan Electrical 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 manufacturing enterprise in China. Hule Electrical Equipment is an important domestic manufacturer of ship lighting fixtures having been deeply rooted in the industry for many years. It is one of the leading companies in the domestic ship lighting fixture industry.Advantage of a vertical and integrated LED industrial chain The Company achieved full coverage of the LED industry chain by holding equity in NationStar Optoelectronics including upstream LED chips manufacturing midstream LED packaging and downstream LED application products. This optimisation of the industry chain further enhances the Company’s competitiveness and influence in the industry.IV Analysis of Principal Operations 1. Overview In 2024 guided by its long-term development strategy and annual operational goals the Companyadopted the business policy of “strengthening foundations promoting transformation preventingrisks and reaching new heights.” It advanced with a dual-engine approach comprising the implementation of the “Climbing Plan” for business operations and the “Industrial Leap Plan” for developing new quality productive forces. The Company remained committed to winning five key battles: market expansion cost reduction and efficiency improvement asset revitalisation risk prevention and control and investment and acquisition. Despite external challenges the Company forged ahead with resilience achieving steady improvement in overall operations characterised by enhanced stability progress and quality. In 2024 the Company achieved operating revenue of RMB 9.048 billion maintaining a stable revenue scale. Net profit attributable to shareholders of the listed company reached RMB 446 million representing a year-on-year increase of 53.67%.During the Reporting Period the Company carried out the following key initiatives: (1) Market expansion was refined achieving multiple breakthroughs across business segments. First through channel optimisation efforts the Company launched specialised market expansion campaigns such as the “Spring Thunder” initiative. It also implemented a new retail strategy via the Douyin local lifestyle platform and formed a “Special Task Force” to support distributors in expanding sales networks and strengthening terminal presence thereby enhancing their operational capabilities. Second the Company launched an initiative to enhance its engineering business. It was newly registered as a supplier with 47 leading real estate developers and large-scale chain enterprises and added 30 design companies to its client database. The Company won bids for multiple lighting procurement projects each exceeding RMB1 million and successfully completed lighting projects for two national key infrastructure initiatives—the Shenzhen–Zhongshan Link and the Huangmaohai Sea-Crossing Passage—significantly boosting its engineering business performance and brand influence. Third the Company carried out an e-commerce channel upgrade initiative. It launched a series of livestream sales promotions such as the “CEO Price Drop” campaign creating popular online products through content innovation and product optimisation. As a result e-commerce business revenue increased by 35.70% year-on-year. Fourth the Company launched an overseas expansion initiative. It entered seven previously untapped national markets developed 46 new overseas clients and won the bid for the lighting project of Cambodia’s national airport marking a breakthrough in overseas engineering projects. Fifth the Company implemented a key business breakthrough initiative. In the vehicle lighting segment it developed nine new clients among mid- to high-end automakers launched 15 new vehicle model projects and secured 22 new LED vehicle lighting module projects. Additionally it obtained designation for a controller project marking a 17Foshan Electrical breakthrough in the automotive electronics field. Revenue from the vehicle lighting business grew by 15.13% year-on-year. In the marine lighting segment the Company successfully delivered lighting systems for the Fishery Machine No.1 and Sea Tower No.1 Marine Ranch Projects. It also completed a comprehensive upgrade of the deep-sea lighting system for China’s manned submersible “Jiaolong” enhancing its underwater detection range and precision target search capabilities. In the packaging device segment automotive LED products entered the supply chains of high-selling new energy vehicles. Intelligent sensing devices became part of the supplier network for internationally renowned brands. Revenue from Mini LED backlight modules doubled year-on-year and significant progress was made in the market promotion of ultra-thin display modules. (2) Innovation-driven capability was enhanced and transformation of scientific and technological achievements was accelerated.First the Company upgraded its R&D system and strengthened its R&D platforms. In line with the positioning of “external resource integration and internal empowerment synergy” the former R&D Department was upgraded to the Lighting Research Institute establishing a three-tiered technical framework encompassing products platforms and technologies. The Company also unveiled the New Quality Productive Forces Research Center and added three new municipal-level R&D platforms including the Foshan Key Laboratory for Marine Optical Core Technologies. As of the end of the Reporting Period the Company had a total of five CNAS Certified laboratory 31 R&D platforms and ten specialized refined distinctive innovative enterprises. Second the Company strengthened its market orientation to develop innovative products. The Company planned product series targeting age-friendly healthy and smart living needs launching innovations such as an age- friendly smart home system its first medical device—the Eye Accommodation Training Lamp— along with the Shadow-Soft Low-Position Desk Lamp and an HD High-Pixel Projection Interactive Module. It also carried out iterative upgrades of popular products including panel lights downlights and floodlights. Third the Company built a reserve of platform technologies and advanced its patent and standards strategy. Focusing on 11 technological areas—including new materials intelligent sensing optical spectroscopy and offline voice technology—the Company advanced core capabilities through independent innovation and strengthened collaboration with universities and research institutes. These efforts resulted in the output of 40 core technologies and a series of breakthroughs in fields such as human–vehicle interaction and automotive electronics. Over the year the Company was granted 487 patents and released 15 standards at various levels. It led the formulation of the Technical Specification for Photocatalytic Air-Purification Lighting Products filling a gap in the industry and participated in drafting China’s first group standard for vehicle light information interaction system. Two corporate standards received the “Leader” certification. The RS2727MWAT high-definition display device was named “Influential Product of the Year” by the Aurora Awards. In addition the jointly developed project Key Technologies for Photothermal Coupling Design and Packaging of Micro-Architecture Semiconductor Light-Emitting Devices received the First Prize of Guangdong Science and Technology Progress Award. (3) Investment and M&A drived momentum and industrial layout was optimised. The Company continued to optimise the industrial layout through investment and acquisitions with a focus on enhancing the quality of development of the listed company. We have made breakthroughs in sports lighting by investing in the establishment of Huaguang Company and an industrial base focusing on and prioritising the development of our sports lighting business. In the automotive lighting sector we have strengthened the industrial chain by investing in the construction of the Liaowang Auto Lighting production base in Suzhou expanding production capacity accelerating business development with original equipment manufacturers in the Yangtze River Delta and upgrading our product portfolio toward the mid-to-high-end market. In the marine lighting segment 18Foshan Electrical we extended the value chain by successfully acquiring Hule Electrical Equipment a ship lighting company further solidifying and strengthening our marine lighting business. In the airport runway lighting sector we addressed gaps in the value chain by partnering with a subsidiary of Guangdong Airport Group to increase capital and acquire a controlling stake in Beijing Hangxin. Leveraging the combined strengths of the three shareholders in capital market and technology we are cultivating a new growth driver in airport runway lighting. (4) Internal potential was unlocked and quality was enhanced through multi-pronged efforts to drive efficiency gains.We adopted a dual approach of increasing revenue and reducing expenditures targeting key areas to implement “subtraction” strategies for cost reduction while tapping into potential growth points to apply “addition” strategies for quality and efficiency enhancement. First we pursued cost reductionand efficiency enhancement to the greatest extent. We introduced for the first time a “projectmanager” accountability system and established 15 dedicated cost-reduction task forces covering all departments business units and subsidiaries. These task forces developed comprehensive cost- cutting measures across R&D procurement production processes and management deeply tapping into potential across the entire workforce and value chain. Second we enhanced efficiency through digital and intelligent transformation. We advanced the development of financial shared services a centralised marketing platform warehouse management systems and human resources information platforms streamlining and optimising both online and offline processes. We also upgraded and transformed production lines at our manufacturing bases in Gaoming Chongqing and Liuzhou achieving an increase in production efficiency of over 10%. Third we revitalised assets to enhance efficiency. We made every effort to complete the acquisition listing and successful transfer of the southern parcel of the Fenjiang North Road site. We also formulated tailored revitalisation plans for each idle property and factory building thereby increasing the Company’s revenue. 2. Revenue and Cost Analysis (1) Operating Revenue Composition Unit: RMB 20242023 As % of total As % of total Change Operating revenue operating Operating revenue operating (%) revenue (%) revenue (%) Total 9048237647.14 100% 9057292003.90 100% -0.10% By operating division Lighting products 5498230129.5160.77%5372636104.7359.32%2.34% and luminaries Electronic component 2709267008.01 29.94% 2720580207.91 30.04% -0.42% manufacturing Export trade and - 840740509.629.29%964075691.2610.64% other 12.79% By product category General lighting 3226311712.8335.66%3329722911.7836.76%-3.11% products LED packaging and component 2467584592.15 27.27% 2497194527.32 27.57% -1.19% products Vehicle lamp 2107363678.8823.29%1830397791.0120.21%15.13% products Trade and other 1246977663.28 13.78% 1399976773.79 15.46% - 19Foshan Electrical 20242023 As % of total As % of total Change Operating revenue operating Operating revenue operating (%) revenue (%) revenue (%) products 10.93% By operating segment Domestic 7069352913.60 78.13% 7028294952.48 77.60% 0.58% Overseas 1978884733.54 21.87% 2028997051.42 22.40% -2.47% By sales model Distribution 3235221661.38 35.76% 3428904093.13 37.86% -5.65% Other 5813015985.76 64.24% 5628387910.77 62.14% 3.28% (2) Operating Division Product Category Operating Segment and Distribution Model Contributing over 10% of Operating Revenue or Operating Profit □Applicable □ Not applicable Unit: RMB YoY YoY YoY change change in Gross change in gross Operating revenue Cost of sales profit in cost operating profit margin of sales revenue margin (%) (%)(%) By operating division Lighting products 5498230129.514264055887.7322.45%2.34%2.39%-0.03% and luminaries Electronic component 2709267008.01 2334427988.29 13.84% -0.42% 0.85% -1.08% manufacturing Export trade and - - 840740509.62769067025.478.53%0.99% other 12.79% 13.72% By product category General lighting 3226311712.832395182567.2625.76%-3.11%-4.04%0.73% products LED packaging and component 2467584592.15 2056558519.16 16.66% -1.19% 0.63% -1.50% products Vehicle lamp 2107363678.881749368441.5616.99%15.13%15.49%-0.26% products Trade and other - - 1246977663.281166441373.516.46%0.47% products 10.93% 11.37% By operating segment Domestic 7069352913.60 5688104522.61 19.54% 0.58% 1.46% -0.69% Overseas 1978884733.54 1679446378.88 15.13% -2.47% -4.80% 2.08% By sales model Distribution 3235221661.38 2398022891.26 25.88% -5.65% -6.47% 0.66% Other 5813015985.76 4969528010.23 14.51% 3.28% 3.39% -0.09% Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period: □Applicable □Not applicable (3) Whether Revenue from Physical Sales Is Higher than Service Revenue □Yes □ No 20Foshan Electrical Operating division Item Unit 2024 2023 Change (%) Unit sales Piece 713224733 714617415 -0.19% Lighting products and Output Piece 718889546 721393924 -0.35% luminaries Inventory Piece 121400783 115735970 4.89% 0000 Unit sales 15692588 18219061 -13.87% pieces Electronic component 0000 Output 15693050 18815038 -16.59% manufacturing pieces 0000 Inventory 3505239 3504777 0.01% pieces Any over 30% YoY movements in the data above and why: □Applicable □Not applicable (4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period □Applicable □Not applicable (5) Breakdown of Cost of Sales By operating division and product category 20242023 Operating As % of As % of Change Item division Cost of sales total cost of Cost of sales total cost of (%) sales (%) sales (%) Lighting products and Raw materials 3438364079.35 46.67% 3316446132.22 44.99% 3.68% luminaries Lighting products and Labor cost 428258110.88 5.81% 468703890.32 6.36% -8.63% luminaries Lighting Depreciation products and 397433697.50 5.39% 379493981.91 5.15% 4.73% and other luminaries Electronic component Raw materials 1654069012.61 22.45% 1600633606.20 21.72% 3.34% manufacturing Electronic component Labor cost 157574627.02 2.14% 147593047.13 2.00% 6.76% manufacturing Electronic Manufacturing component 522784348.66 7.10% 566483112.02 7.69% -7.71% costs manufacturing - Trade Other 592011916.96 8.04% 685583656.16 9.30% 13.65% Other - Other 177055108.51 2.40% 205805258.67 2.79% operations 13.97% Total 7367550901.49 100.00% 7370742684.63 100.00% -0.04% Unit: RMB Unit: RMB 21Foshan Electrical 20242023 Product As % of total As % of total Change Item category Amount cost of sales Amount cost of sales (%) (%)(%) General Raw lighting 1928152601.20 26.17% 1990393132.24 27.00% -3.13% materials products General lighting Labor cost 263720327.80 3.58% 288182082.50 3.91% -8.49% products General Depreciation lighting 203309638.26 2.76% 217552399.74 2.95% -6.55% and other products General lighting Subtotal 2395182567.26 32.51% 2496127614.48 33.87% -4.04% products Vehicle Raw lamp 1403947879.47 19.06% 1189156564.20 16.13% 18.06% materials products Vehicle lamp Labor cost 158140979.51 2.15% 172159579.91 2.34% -8.14% products Vehicle Depreciation lamp 187279582.58 2.54% 153397384.38 2.08% 22.09% and other products Vehicle lamp Subtotal 1749368441.56 23.75% 1514713528.49 20.55% 15.49% products LED packaging Raw and 1504607255.48 20.42% 1460582341.01 19.82% 3.01% materials component products LED packaging and Labor cost 129901398.23 1.76% 122206881.33 1.66% 6.30% component products LED packaging Depreciation and 422049865.45 5.73% 460990948.10 6.25% -8.45% and other component products LED packaging and Subtotal 2056558519.16 27.91% 2043780170.44 27.73% 0.63% component products Trade and Raw - other 847737272.77 11.51% 962531357.13 13.06% materials 11.93% products Trade and other Labor cost 34070032.36 0.46% 33748393.71 0.46% 0.95% products Trade and Depreciation other 107578959.87 1.46% 114036361.71 1.55% -5.66% and other products 22Foshan Electrical 20242023 Product As % of total As % of total Change Item category Amount cost of sales Amount cost of sales (%) (%)(%) Trade and - other Subtotal 989386265.00 13.43% 1110316112.55 15.06% 10.89% products Other - Other 177055108.51 2.40% 205805258.67 2.79% operations 13.97% (6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period □Yes □ No For details see “IX Changes to the Consolidation Scope” in “Part X Financial Statements” of this Report. (7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period □Applicable □Not applicable (8) Major Customers and Suppliers Major customers: Total sales to top five customers (RMB) 2123894526.75 Total sales to top five customers as % of total sales of 23.47% the Reporting Period (%) Total sales to related parties among top five customers 0.00% as % of total sales of the Reporting Period (%) Information about top five customers: Sales revenue contributed As % of total sales No. Customer for the Reporting Period revenue (%) (RMB) 1 No. 1 587650326.48 6.49% 2 No. 2 519907004.99 5.75% 3 No. 3 406512491.87 4.49% 4 No. 4 355474909.33 3.93% 5 No. 5 254349794.08 2.81% Total -- 2123894526.75 23.47% Other information about major customers: □Applicable □ Not applicable None of the top five customers is a related party of the Company.Major suppliers: Total purchases from top five suppliers (RMB) 622645839.60 Total purchases from top five suppliers as % of total 10.06% purchases of the Reporting Period (%) Total purchases from related parties among top five suppliers as % of total purchases of the Reporting 0.00% Period (%) Information about top five suppliers: 23Foshan Electrical Purchase in the Reporting As % of total purchases No. Supplier Period (RMB) (%) 1 No. 1 214518024.12 3.47% 2 No. 2 112857486.25 1.82% 3 No. 3 107393512.31 1.74% 4 No. 4 95568469.93 1.54% 5 No. 5 92308346.99 1.49% Total -- 622645839.60 10.06% Other information about major suppliers: □Applicable □ Not applicable None of the top five suppliers is a related party of the Company. 3. Expense Unit: RMB Main reason for any 2024 2023 Change (%) significant change Selling expense 349356200.73 315111171.93 10.87% Administrative 484757347.38430544371.9612.59% expense This was primarily due to Finance costs -55499247.20 -32498749.52 -70.77% exchange rate fluctuations during the Reporting Period.R&D expense 548670366.07 483579093.81 13.46% 4. R&D Investments □Applicable □ Not applicable Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company By overcoming key technologies in multi-optical This project aims to develop a new combination design we plan Development of type of anti-glare eye-friendly to develope a lighting a New Anti- high color rendering index angle- product that integrates high Glare Eye- The project will adjustable LED downlight. By color rendering anti-glare Friendly High Trial improve product using high color rendering COB performance and flexible Color Rendering production quality and market light sources to simulate the effect adjustability providing Index Angle- share.of natural sunlight the product users with a more Adjustable LED effectively reduces eye irritation comfortable Downlight and enhances visual comfort. environmentally friendly and healthy lighting environment.Development of By integrating modern a Self- information technology It is planned to reducing The project will Organising automation control technology energy consumption and expand our smart Network-Based and energy-saving technology carbon emissions while lighting product line Lighting System this project aims to develope a In progress improving the management and further Integrated with new type of smart lighting system efficiency of the lighting developing the smart the Internet of that supports the construction of a system and enhancing the lighting market.Things and Its green smart and sustainable user experience.Application in society 24Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company Smart Lighting Fixtures The existing solar streetlights We aim to develop a highly generally exhibit low conversion efficient control system that efficiency when photovoltaic meets the requirements of panels charge internal storage reliability energy Development of batteries. To achieve a certain efficiency and performance The project will an Intelligent level of illuminance and lighting for solar-powered road enhance the and Efficient duration larger photovoltaic Trial lighting. By integrating Company’s market Solar Streetlight panels and storage batteries are production sensors and connecting the competitiveness in Driver Power required which increases material lighting control system to solar-powered road Supply costs. In response to this situation the Internet of Things the lighting.this project focuses on the solution enables demand- development of an intelligent and based lighting and enhances efficient driver power supply for the efficiency of streetlight solar streetlights. operation and maintenance.The project will This project aims to develop a slim Development of expand market share tri-proof light based on a sealed a Slim Tri-Proof We aim to achieve in industrial waterproof design to meet the Light Based on Trial comprehensive upgrades in transportation and growing market demand for Sealed production waterproof rating lighting other sectors and improved form performance and Waterproof efficiency and service life. enhancing overall reliability in tri-proof lighting Design market solutions.competitiveness.This project aims to address Underwater lighting fixtures common key technical issues Study on the designed for different depths The project will faced during the industrialisation Structure of can achieve high cost- provide customised and deployment of marine lighting Full-Ocean- effectiveness and reliability. solutions to enhance and related technological Trial Depth Pressure- Since the pressure resistance the Company’s equipment. It focuses on production Resistant varies with depth different market developing underwater lighting Lighting design solutions are competitiveness in fixtures tailored to different water Fixtures employed for each specific marine lighting.depths and application scenarios depth.meeting custom requirements.The project focuses on This project aims to carry out the researching the optimal research and demonstration of spectrum lighting cycles LED lighting technology and and other lighting specialized fixtures for sea parameters for the growth of Development cucumber farming. It focuses on sea cucumber seedlings and and studying key lighting parameters juvenile sea cucumbers Demonstration The project will such as optimal spectrum and (with Liaoning sea of LED Lighting enhance the lighting cycles for the growth cucumber as the Technology and In progress Company’s market stages of sea cucumber seedlings representative species). It Specialised competitiveness in and juvenile sea cucumbers with also aims to develop Fixtures for Sea aquaculture lighting.a particular emphasis on the corresponding lighting Cucumber Liaoning sea cucumber species. fixtures to promote Farming The goal is to optimise lighting increased production and conditions to improve the income in sea cucumber efficiency and quality of sea farming and facilitate the cucumber farming. widespread application of the technology.Development of This project focuses on research In progress This project aims to provide The project will 25Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company Deep-Sea into the water-sealing and a series of lighting products enhance the Lighting corrosion-resistant technology for for deep-sea exploration Company’s Fixtures and deep-sea lighting products. It aims equipment accelerating the technological Their Semi- to break through the technical domestic development and strength in deep-sea Automated barriers of deep-sea pressure- application of deep-sea lighting and Manufacturing resistant packaging and lighting products. increasing market Process environmental reliability share.developing reliable easy-to- maintain deep-sea lighting products with high brightness uniform illumination and a high color rendering index.This project aims to develop an By using artificial light Development of efficient artificial light microalgae The project will sources and intelligent an Efficient (fungi) intelligent cultivation enhance the control the project aims to Artificial Light system through the development Company’s achieve high conversion Microalgae of high-efficiency lighting technological In progress efficiency from electricity to (Fungi) fixtures high light energy strength in light and from light to algae Intelligent utilisation in the microalgae aquaculture lighting (+fungi) providing support Cultivation (fungi) cultivation process and and increasing for industrial-scale System intelligent cultivation in revenue and profits.promotion.photobioreactors.This project undertakes the research and development task ofthe sub-topic “Development andDirected Application of High-Efficiency The project will Aggregation and Fish Luring Lights and Control enhance the Intelligent Systems for Deep-Sea Fisheries in This project aims to develop Company’sEquipment the South China Sea” as part of fish aggregation lamps for technological In progress Technology for the national key R&D programme. aquatic environments to strength in fish Deep-Sea It also collaborates in the support industrialisation. aggregation lighting Fishery integration and application to support Resources demonstration of new deep-sea industrialisation.fishery resource capture technologies in the South China Sea.The project will The project aims to conduct enhance the research and development of new Company’s market Innovative technologies in the field of It is planned to achieve mass competitiveness Projection Series interactive lighting with a focus production of the product support the In progress Lighting on building technical reserves for and complete verification of Company in seizing Fixtures high-definition colour projection production stability. first-mover and achieving scalable mass advantages and production. drive business growth.The project will The project aims to upgrade and It is planned to enhance the enhance the Digital iterate interactive display luminous performance with Company’s market Interactive technology transitioning from a particular focus on In progress competitiveness Lighting System white light to red light display improving emission support the II thereby expanding application precision brightness and Company in seizing scenarios and usage scope. colour saturation.first-mover 26Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company advantages and drive business growth.This project aims to develop an The project will innovative aerial virtual imaging create a new system focusing on cutting-edge It is planned to develop core Innovative category of product technological breakthroughs in the products in imaging optics Aerial Virtual In progress orders for the field of interactive display and to to ensure a leading Imaging System Company thereby develop core imaging optics technological position.expanding our products to secure a leading business operations.position in the industry.This project aims to carry out The project will research and industrialisation of drive continuous MDL intelligent interactive Research and innovation to display technology with a focus Industrialisation It is planned to maintain consolidate the on continuous innovation and of MDL annual upgrades of MDL Company’s leading breakthroughs in interactive Intelligent In progress technology and achieve position increase display technologies. It will Interactive year-on-year application in market share and enhance product performance and Display mass production. promote business market competitiveness through a Technology growth and phased approach to technology sustainable research and development and development.iterative mass production.This project aims to develop a The project will It is planned to develop in- concealed smart lighting system in enhance the Concealed house capabilities for the response to the increasingly Company’s market Smart Lighting In progress optical-mechanical- intense competition and product competitiveness and System electrical-thermal system of homogenisation in the automotive drive business the technology.lighting market. growth.This project aims to align with the market trend of LED luminaries Through the integration of Research on shifting from replacing energy- intelligent modules lighting Intelligent saving lamps to more refined and fixtures can be networked Control The project will intelligent solutions. It focuses on and their functions Technology for support the research into intelligent control customised enabling LED Lighting Trial Company in technology for LED luminaries seamless incorporation into and Its production capturing market and its application in smart home smart home systems and Application in share and enhancing lighting fixtures addressing the thereby achieving Smart Home brand influence.core trend of LED luminaries personalised customised Lighting evolving from a single-function and systematised lighting Fixtures light source to an intelligent and solutions.integrated system.With the advantages of high This project aims to satisfy efficiency energy conservation the major demand for large- The Research on active luminescence and ultra- screen 4K/8K UHD display Full-colour and The project is of vital high resolution Micro-LED from national policies and Integrated importance in terms stands out from an array of novel social development. In Packaging of Trial of promoting the display technologies and has combination with the main Micro-LED production localization of become a focus in novel development trend of full- Display with China’s LED display technology competitions. This colour Micro-LED display High Brightness industry chain.project aims to satisfy the major at home and abroad we will and Contrast demand for large-screen 4K/8K overcome the core UHD display from national technology bottleneck of the 27Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company policies and social development. industry such as full-colour In combination with the main packaging technology and development trend of full-colour develop high-brightness and Micro-LED display at home and high-contrast Micro-LED abroad we will overcome the core display devices and modules technology bottleneck of the that meet the market demand industry such as full-colour for better interactivity and packaging technology and display performance. By develop high-brightness and high- doing so the development of contrast Micro-LED display upstream and downstream devices and modules that meet the industries of the industry market demand for better chain will be boosted and interactivity and display China’s dominant position performance. in display applications will be further consolidated.The core technology of UHD display represented by In this project we will Micro/Mini-LED devices is still develop high performance monopolised by Samsung of Mini/Micro-LED display South Korea Apple of the US devices and display modules Sony of Japan and other by researching technical international giants. problems such as high Manufacturers in the province density IMD Mini/Micro- The Research on need to pay high royalties to LED integrated packaging the Key engage in the business which technology high Technology of seriously constrains the strategic compatibility pixel cutout The Company’s 4K/8K Full- transformation of the LED Trial manufacturing technology dominant position in color Micro- industry in Guangdong Province. production of Mini/Micro-LED display display applications LED Displays Therefore to vigorously develop devices and mass transfer will be consolidated.with Ultra High the UHD video display industry technology of Micro-LED Definition the key solutions are to break chips. Related technology (UHD) through the bottleneck of will be developed to remove Micro/Mini-LED device the blockade of international technology and motivate the giants fill the gap of local transformation and upgrading of high-end applications and UHD display in the LED industry achieve the efficient and so as to secure the internationally rapid 4K/8K development advanced technology status of the for the HD display.province’s LED display.Agriculture is the core of the This project aims to develop Plant Lighting: The farming industry and the an LED technology system project will support cornerstone of national food for efficient cultivation in the demonstration LED security. The cultivation of high- modern agriculture through application of the Technology for value crops serves as an important research on efficient LED Company’s plant Efficient industrial foundation for rural epitaxial regulation for lighting products in Cultivation in revitalization. LED plant lighting Trial modern agricultural high-value crops.Modern is a new technology that has production cultivation design and Ultraviolet Agriculture and emerged with the development of fabrication processes of high Products: The Its modern agricultural production light efficiency LED chips project will support Demonstrative methods and semiconductor as well as design and the demonstration Application lighting technology. It has been packaging processes of high application of the recognised domestically and light efficiency LED Company’s deep internationally as an important devices. The goal is to ultraviolet products 28Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company direction for the emerging high- provide chip and device in the field of public tech industry in agriculture. support for the disinfection and However the development of manufacturing of hygiene.LED plant lighting technology in specialised LED luminary our country started relatively late systems dedicated to and there is a gap in technological efficient cultivation in level compared to leading modern agriculture international companies. To meet promoting the advancement the industrial demand to improve of LED plant lighting light efficiency and reduce energy technology in our country to consumption in LED plant reach an international lighting as well as the leading level.physiological requirements of high light efficiency during crop breeding processes an LED technology system for efficient cultivation in modern agriculture will be developed to promote the industrial application of LED technology in crop breeding and the efficient production of high- value crops thereby driving the high-quality development of smart agriculture.Deep ultraviolet LED is a This project aims to develop preferred alternative to traditional a low thermal resistance and mercury lamps for disinfection highly reliable universal and sterilization due to its efficient deep ultraviolet (UV) LED virus and bacteria-killing abilities light source for pathogen as well as its safety environmental disinfection addressing the friendliness and free of secondary technological and market pollution. With the improvement demands of deep UV LED of deep ultraviolet LED virus inactivation. It performance there is great The integrates intelligent potential for implementing deep Development identification and driving This project will ultraviolet LED applications in and Application control technologies tailored drive the upgrading pathogen inactivation in public Demonstration to specific application and development of health and logistics sectors. This of Deep Trial scenarios. The project also industries related to project aims to promote the Ultraviolet LED production involves the application of public disinfection integration between the public Modules and pathogen disinfection using deep health safety sector and the deep Equipment for equipment in the field of ultraviolet ultraviolet LED industry by Public Health public health driving the technology.conducting research on high- and Other Fields upgrading and development security and intelligent deep of industries related to ultraviolet LED disinfection public disinfection. Its goal equipment and system solutions is to effectively prevent for the public health domain. It control and eliminate the strives to drive the large-scale hazards of sudden public application of purification and health emergencies disinfection in the public health ensuring the physical well- and logistics sectors in China being and safety of the contributing to the safeguarding of public.national public health security. 29Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company As LED technology continues to This project leverages its advance and the miniaturisation of technological advantages in LED sizes further develops it display packaging to further brings new vitality to the display break through the industry with emerging display performance limitations of technologies such as small-pitch LED display devices and LED displays Mini LED displays optimise the packaging Research and and Micro LED displays taking processes of display Application of the stage one after another. Based modules to improve their Key on the new opportunities created utilisation. It aims to The project will Technologies for by 5G+4K/8K ultra-high- promote the application and increase product Indoor Fine- Trial definition display platform for adoption of fine-pitch market share and Pitch LED production indoor small-pitch display display devices in high- consolidate core Display Devices application scenarios this project definition display terminal competitiveness for Next- carries out the research on key products seize the Generation technologies of indoor fine-pitch technological high ground in Displays LED display devices seizes the the field of new display technological heights in the field technologies establish of new displays forms a strong technical barriers demonstration of new displays within the industry and establishes a strong technological consolidate the core barrier and consolidates the core competitiveness of the competitiveness of enterprises. enterprise.This project focuses on leveraging the advantages of Display module is one of the most LED display modules in widely used areas of LED home appliances medical applications and the use of LED devices toys gaming display modules has been further consoles and other expanded in various household applications. Through appliances such as air research on intelligent conditioners refrigerators water display modules including heaters and washing machines. Bluetooth communication Research and By venturing into the smart home voice broadcasting touch Application of The project will and home appliance market this control and high-definition Intelligent Trial improve product project aims to provide customers colour display the aim is to Display Module production quality and market with comprehensive efficient and further expand user for Home share.customized smart design scenarios improve the Appliances solutions. This not only injects functionality of display new vitality into the smart home modules and make the appliance market but also helps interaction between display drive the healthy and high-quality modules and external development of the smart home modules more intelligent appliance industry. Furthermore and integrated. These efforts it creates stable economic benefits will promote the healthy and for the enterprise. high-quality development of the smart home appliance industry.Development The improving consumption level This project aims to promote The project will and Application of residents the robust consumer the development of high- Trial improve product of Key electronics market and the performance consumer production quality and market Technologies for increasing demand from electronic component share.High- consumers for enhanced manufacturing towards 30Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company Performance performance in their products higher precision and Consumer have strongly driven the sophistication by tackling Optoelectronic upgrading of high-performance the industry’s forefront Devices consumer electronics. However technologies including the packaging technology for improving the spatial colour high-performance consumer uniformity of LED devices electronic components has long through packaging been dominated by developed processes developing new countries such as the United chip-level packaging States Japan and Germany. structures for high- Therefore Therefore it is urgent performance consumer to achieve breakthroughs in major electronics LED devices technologies for high- and reducing the voiding performance consumer electronics rate. Furthermore it seeks to LED devices break the foreign further facilitate the companies’ monopoly on high- domestic substitution of performance consumer high-performance consumer electronics promote the domestic electronic components.substitution of high-performance consumer electronic components and drive innovation and upgrading throughout the LED technology industry chain.With the advancement of semiconductor lighting technology increasing attention has been paid to the impact of light This project focuses on on human health. The demand for high-quality LED healthy LED light sources is shifting from lighting applications aiming a focus on luminous efficacy to an to develop packaging emphasis on light quality and processes with a high human-centric lighting. As an phosphor-to-glue ratio for emerging field healthy lighting is healthy lighting devices and the result of integrating to realise the development of semiconductor lighting high light-quality multi- Research on Key technology with advanced user wavelength blue light The project will Technologies for demands. It is becoming a new Trial healthy lighting products. improve product High-Quality growth driver for the development production The implementation of this quality and market LED Healthy of China’s lighting industry with project will further share.Lighting applications already covering strengthen our strategic areas such as disinfection and presence in the emerging sterilisation medical and field of healthy lighting healthcare educational wellbeing facilitate the development of agricultural health and residential high-quality healthy lighting wellness. The project aims to technologies and products develop products featuring and contribute to increased relatively stable spectral output revenue and profitability for high colour rendering index and the Company..controllable mass production costs offering promising market prospects in the field of high- quality healthy lighting.Research and Driven by the rapid growth of the At the stage This project focuses on the The project will 31Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company Application of new energy vehicle market of research research of multiple key improve product Key Packaging demand for automotive LEDs and technologies related to high- quality and market Technologies for continues to rise. As automobiles development power ceramic LEDs for share.High-Power advance towards electrification automotive applications Ceramic LEDs and intelligentisation a range of with the goal of developing for Automotive innovative automotive LED high-power ceramic LEDs Use products have emerged including featuring low thermal megapixel-level DLP headlights resistance high brightness and projection-based augmented and long lifespan. The reality head-up displays (AR- implementation of this HUD). High-power ceramic LEDs project will continuously offer advantages such as high enhance the quality of high- brightness long lifespan and low power ceramic LED thermal resistance making them products for automotive the preferred light source for applications further enrich products such as megapixel-level the Company’s automotive DLP headlights and projection- LED product portfolio and based augmented reality head-up support the domestic displays (AR-HUD). This project substitution of high-power aims to accelerate breakthroughs ceramic LEDs in China as in key packaging technologies for well as the high-quality high-power ceramic LEDs for development of the new automotive applications develop energy vehicle industry.new products with both market value and industrial security significance and continuously strengthen the Company’s leading position in the LED packaging industry.This project aims to promote the development of the LED industry This project develops in the Pearl River Delta region by epitaxial growth and chip collaborating with countries along preparation technologies for Epitaxial the Belt and Road. Through the high-performance deep- Growth and introduction of advanced ultraviolet LEDs with flip- Chip Fabrication international technologies the flop structures and The project will Techniques for project aims to provide Trial optimises key processes to improve product High- Guangdong Province with production obtain high-quality and high quality and market Performance independent intellectual property A1-component A1GaN share.Deep Ultraviolet rights and high-performance deep materials high-performance LED with flip- ultraviolet LED fabrication deep-ultraviolet LED flop structures technologies. By doing so we will epitaxial structures and catch up with the international realise the development of counterparts or even lead them in deep-ultraviolet LED chips.this industry.With the strong market demand This project aims to address for high-power power supplies technical challenges such as TO-247 Package charging stations and distributed lead frame design wire The project will Product photovoltaic inverters the market Trial bonding processes and improve product Development scale of silicon carbide products production mould compatibility through quality and market Project continues to expand. Therefore it the research and share.is essential to intensify the development of TO-247 research and development of package products thereby 32Foshan Electrical Expected impact on Names of main Project the future Project objectives Objectives to be achieved R&D projects progress development of the Company silicon carbide discrete devices to achieving high performance establish a solid foundation for the and high reliability.Company to penetrate the mid- to high-end semiconductor device market while enhancing product competitiveness and increasing market share.Details about R&D personnel: 2024 2023 Change (%) Number of R&D personnel 2045 1735 17.87% R&D personnel as % of total employees 16.76% 14.17% 2.59% Educational background Bachelor’s degree 1176 962 22.25% Master’s degree 155 104 49.04% Doctoral degree and above 13 15 -13.33% Junior college and below 701 654 7.19% Age structure Below 30 763 621 22.87% 30~407927476.02% Over 40 490 367 33.51% Details about R&D investments: 2024 2023 Change (%) R&D investments (RMB) 590807947.33 534561947.29 10.52% R&D investments as % of operating 6.53%5.90%0.63% revenue Capitalised R&D investments (RMB) 0.00 0.00 0.00% Capitalised R&D investments as % of total 0.00%0.00%0.00% R&D investments Reason for any significant change to the composition of R&D personnel and impact: □Applicable □ Not applicable Driven by strategic planning and business expansion needs the Company actively recruits highly skilled and well-educated external talents injecting continuous innovation momentum and professional expertise. As a result the proportion of R&D personnel holding bachelor’s and master’s degrees has increased significantly.Reasons for any significant YoY change in the percentage of R&D investments in operating revenue: □Applicable □Not applicable Reason for any sharp variation in the percentage of capitalized R&D investments and rationale: □Applicable □Not applicable Other notes: The R&D investment calculated according to the Administration Measures for Identification of High-tech Enterprises and other relevant regulations includes the R&D input included in operating costs and R&D expenditures expensed in accordance with accounting standards.In 2024 the Company’s R&D Investment amounted to RMB590807900 accounting for 6.53% of 33Foshan Electrical its operating revenue. Among this the revenue generated from the external sales of products produced during pilot and trial production stages was included in main business revenue with the corresponding expenditure of RMB42137600 recorded under main business cost. 5. Cash Flows Unit: RMB Item 2024 2023 Change (%) Subtotal of cash generated from operating 8884435924.998513648453.744.36% activities Subtotal of cash used in operating activities 8286320589.11 7339258474.76 12.90% Net cash flows from operating activities 598115335.88 1174389978.98 -49.07% Subtotal of cash generated from investing 1059888697.14423342286.04150.36% activities Subtotal of cash used in investing activities 1775272864.22 1130862869.12 56.98% Net cash flows from investing activities -715384167.08 -707520583.08 -1.11% Subtotal of cash generated from financing 445145960.641404603429.35-68.31% activities Subtotal of cash used in financing activities 768748792.52 721157492.22 6.60% Net cash flows from financing activities -323602831.88 683445937.13 -147.35% Net increase in cash and cash equivalents -416870923.47 1155281636.62 -136.08% Explanation of why any of the data above varies significantly: □Applicable □ Not applicable (1) Net cash flow from operating activities decreased by 49.07% year-on-year primarily due to an increase in cash payments for raw material purchases during the Reporting Period. (2) Net cash flows from investing activities decreased by 1.11% year-on-year mainly attributable to the increase in purchases of large-denomination certificates of deposit and the payment for equity acquisition of Hule Electrical Equipment a non-wholly owned subsidiary not under common control. (3) Net cash flow from financing activities decreased by 147.35% year-on-year primarily due to the receipt of capital raised from equity financing in the previous year. (4) Net increase in cash and cash equivalents decreased by 136.08% year-on-year mainly as a result of the decline in net cash flow from financing activities.Explanation of why net cash generated from/used in operating activities varies significantly from net profit for the Reporting Period: □Applicable □Not applicable V Analysis of Non-Core Businesses □Applicable □ Not applicable Unit: RMB As % of Recurrent Amount profit before Main source/reason or not tax Dividend income from other equity investments Return on 65850578.68 10.96% held during the period and interest income from Yes investment other debt investments Gain/loss on Gain/loss on fair value changes of financial -713704.94 -0.12% Yes fair value instruments 34Foshan Electrical changes Primarily due to the provision for goodwill Asset -207929562.68 -34.60% impairment and inventory write-downs during Yes impairments the Reporting Period.Primarily attributable to the receipt of mediation Non- funds and the negative impact on goodwill operating 18436172.78 3.07% Not resulting from the merger of enterprises not income under the same control in the current period.Non- Primarily attributable to the payment of operating 4576737.83 0.76% Not compensation during the Reporting Period.expense Other income 111434984.12 18.54% Receipt of continuing government grants Not Credit Allowances for doubtful accounts receivable and impairment -29684596.41 -4.94% Yes other receivables loss Asset Gains or losses on the disposal of non-current disposal 374492447.01 62.32% Not assets income VI Analysis of Assets and Liabilities 1. Significant Changes in Asset Composition Unit: RMB 31 December 2024 1 January 2024 Change in Main reason for any As % of total As % of total percentage Amount Amount significant change assets assets (%) Purchase of large- 320912743 359604965 denomination Monetary assets 18.70% 21.24% -2.54% 7.31 4.55 certificates in the current period Accounts 2125667291. 2093499280. 12.39%12.36%0.03% receivable 96 40 Contract assets 1690021.95 0.01% 4252013.94 0.03% -0.02% 202549936197117164 Inventories 11.80% 11.64% 0.16% 1.381.14 Primarily due to the transfer of an Investment 793487046. 163636347. increase in assets 4.62%0.97%3.65% property 02 41 intended for lease during the Reporting Period.Long-term equity 180300594. 179188555. 1.05%1.06%-0.01% investments 89 15 364659420345321458 Fixed assets 21.25% 20.39% 0.86% 6.046.47 Primarily due to an increase in the transfer of Construction in 263601705. 117453350 1.54% 6.94% -5.40% construction-in- progress 89 5.11 progress to fixed assets during the Reporting Period.Right-of-use 22342999.3 0.13%8812320.640.05%0.08% assets 4 Short-term 307141147. 1.79% 220019877. 1.30% 0.49% 35Foshan Electrical 31 December 2024 1 January 2024 Change in Main reason for any As % of total As % of total percentage Amount Amount significant change assets assets (%) borrowings 49 73 119506301.235335693. Contract liabilities 0.70% 1.39% -0.69% 4828 Long-term 222581930. 253093421. 1.30%1.49%-0.19% borrowings 54 29 15023993.1 Lease liabilities 0.09% 4310967.92 0.03% 0.06% 997281070.105735226 Notes receivable 5.81% 6.24% -0.43% 217.60 Accounts 352694866.443201960. receivable 2.06% 2.62% -0.56% 8902 financing Primarily due to an increase in the Investments in amount of large- 114002286454822905. other debt 6.64% 2.69% 3.95% denomination 3.7225 obligations certificates of deposit purchased during the Reporting Period.Investments in 726663613.699762746. other equity 4.23% 4.13% 0.10% 4235 instruments 388587348.434549913. Intangible assets 2.26% 2.57% -0.31% 9999 Primarily due to a decrease in the 193078481 227117478 payment of Notes payable 11.25% 13.41% -2.16% 7.62 7.69 procurement costs via bills during the Reporting Period. 278196509287598020 Accounts payable 16.21% 16.98% -0.77% 6.706.64 495717050.362491923. Other payables 2.89% 2.14% 0.75% 9701 Primarily due to an increase in endorsed Other current 377156212. 95008427.0 but not yet matured 2.20%0.56%1.64% liabilities 40 1 notes receivable during the Reporting Period.Indicate by tick mark whether overseas assets account for a high proportion of total assets.□Applicable □Not applicable 2. Assets and Liabilities at Fair Value □Applicable □ Not applicable Unit: RMB 36Foshan Electrical Gain/loss on fair Cumulative Impairment Purchased value fair value allowance Sold in the Beginning in the Other Ending Item changes in changes for the Reporting amount Reporting changes amount the charged to Reporting Period Period Reporting equity Period Period Financial assets 1. Held-for- trading financial assets 15252977 - 45000000 56000000 155850 43649 (exclusive of 5.41 438454.94 0.00 0.00 0.00 820.47 derivative financial assets) 11400 3. Other debt 45482290 72700000 70000000 281999 22863. investments 5.25 0.00 .00 58.47 72 4. Investments 6997627427896892451108977726663 in other equity 996025.00 6.35.07.66613.42 instruments 5. Receivables 44320196 90507093 352694 financing 0.02 .13 866.89 22630 Subtotal of 1750317 27458437 451108977 1177000 72150311 297584 31164. financial assets 387.03 .13 .66 000.00 8.13 58.47 50 22630 Total of the 1750317 27458437 451108977 1177000 72150311 297584 31164. above 387.03 .13 .66 000.00 8.13 58.47 50 Financial 275250 0.00275250.00 liabilities .00 Details about other changes: (1) Other changes in trading financial assets (excluding derivative financial assets) refer to the trading financial assets that occurred in Hule Electrical Equipment before Hainan Technology acquired Hule Electrical Equipment in the current period. (2) 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. During the Reporting Period large-denomination certificates of deposit amounting to RMB727 million were purchased with sales totalling RMB70 million. The cumulative fair value changes was RMB0.00 and other changes included cumulative interest income of RMB28199958.47.Significant changes to the measurement attributes of the major assets in the Reporting Period: □Yes □No 3. Restricted Asset Rights as at the End of the Reporting Period Unit: RMB Item Ending carrying amount Reason for restriction Monetary assets 512340403.99 Note deposits bond deposits pre-sale of properties etc.Pledge of note pool notes receivable endorsed or Notes receivable 951909082.20 discounted but not matured 37Foshan Electrical Accounts receivable 25328943.24 Pledge of note pool financing Fixed assets 211977100.96 As mortgage and guarantee for related party see XVI (3) Intangible assets 10341686.87 “Others” in Part X.Frozen large-denomination certificates of deposit (Note: Investments in other 103309041.10 This large-denomination certificate of deposit was debt obligations unfrozen in March 2025.) Other non-current 2931.37 Frozen funds assets Total 1815209189.73 —— VII Investments Made 1. Total Investment Amount □Applicable □ Not applicable Investment amount in the Investment amount in the same Change (%) Reporting Period (RMB) period of last year (RMB) 386039888.94173881228.98122.01% 2. Major Equity Investments Made in the Reporting Period □Applicable □ Not applicable Unit: RMB Gains and Type of Progress losses Whether Amou Shareho Fundi Date of Name of Way of Invest wealth as at the Predic on involved Principal nt lding ng Partne disclosu Disclosure index investee investm ment manage balance ted investm in any activity invest percenta resour rs re (if (if any) corporation ent period ment sheet return ents for legal ed ge (%) ces any) product date the actions Current Period Manufactu Announcement on re of Investment and automotiv Busines Establishment of e parts and s Wholly-owned accessorie registrat Subsidiaries by s; sales of ion has Holding Liaowang lighting been Subsidiaries and Newly 25000 Self- - 28 Auto Lamp products; Long- complet Investment in establish 000.0 53.79% funde None N/A 0.00 47494.2 Not Septemb (Suzhou) research term ed Automotive Lamp ed 0 d 6 er 2024 Co. Ltd. and during Production and developm the Construction ent of Reportin Projects on automotiv g http://www.cninfo e Period. .com.cn with componen Announcement ts. No.: 2024-056 Lighting Complet fixtures ed Zhejiang for ships equity Hule navigation transfer 11366 Not Not Electrical signal Acquisit Equity Long- registrat 378705 5723. 66.00% None applicab 0.00 Not applicab Not applicable Equipment fixtures ion fund term ion 7.54 00 le le Manufacturi explosion- during ng Co. Ltd. proof the fixtures Reportin etc. g Period 38Foshan Electrical 138 3739 665 Total -- -- -- -- -- -- -- -- 0.00 563.2 -- -- -- 723. 8 00 3. Major Non-Equity Investments Ongoing in the Reporting Period □Applicable □ Not applicable Unit: RMB Reason for Cumulat Fixed Industry Cumulati failure to Fundi Projec ive Way of asset of the Input in the ve input reach the Date of ngres t Predicte return as Disclosure index (if Project name investm invest investm Reporting as of the planned disclosure ource progre d return of the any) ent ment ent Period period- progress and (if any) s ss period- or not project end predicted end return Announcement on The Investment in the production Production Ramp-up ramp-up Project for New- project for LED Self- generation LED new- 5568000.0 899877 98.52 10 January Other Yes packagi finan N/A Packaging Devices and generation 0 146.45 % 2019 ng cing Chips on LED http://www.cninfo.com.packaging cn (announcement of devices and subsidiary NationStar chips Optoelectronics) Announcement on Investment in the Construction of The Jili NationStar Industrial Park LED Self- Optoelectronics’ Jili 104924552 641795 37.43 7 August project (not Other Yes packagi finan N/A Industrial Park Project.84369.04%2020 including land ng cing on purchase) http://www.cninfo.com.cn (announcement of subsidiary NationStar Optoelectronics) 110492552154167 Total -- -- -- -- -- -- -- --.842515.49 4. Financial Investments (1) Securities Investments □Applicable □ Not applicable Unit: RMB Gain/loss Sold Cumulati Beginn on fair in ve fair Purchase Gain/loss Initial Measure ing value the Ending Security Security Security value d in the in Accountin Funding investme ment carryin changes Repo carrying type code name changes Reportin Reporting g title resources nt cost method g in the rting amount charged g Period Period value Reportin Perio to equity g Period d Gotion 368 Investmen Domesticall High- Fair - 28056 ts in other 830144 376 17133 3635790 Self- y/Overseas 002074 tech value 47974 4559. equity 85.13 funded listed stock Co. method 506. 79.10 45.02 61.48 89 instrument Ltd. 50 s Domesticall 601187 Xiamen 152957 Fair 290 32694 17054 26384 3235020 Investmen Self- 39Foshan Electrical Gain/loss Sold Cumulati Beginn on fair in ve fair Purchase Gain/loss Initial Measure ing value the Ending Security Security Security value d in the in Accountin Funding investme ment carryin changes Repo carrying type code name changes Reportin Reporting g title resources nt cost method g in the rting amount charged g Period Period value Reportin Perio to equity g Period d y/Overseas Bank 606.83 value 807 353.55 4417. 916.90 24.60 ts in other funded listed stock Co.Ltd. method 671. 77 equity instrument 05 s Foshan branch Investmen of Fair 500 ts in other Guangd 500000. 500000.0 Self- Other None value 000. equity ong 00 funded method 0 instrument Develop 00 s ment Bank Held-for- Domesticall Qianli Fair 901 117600 10249 10249 1926438. trading y/Overseas 601777 Technol value 522. Other 8.74 financial listed stock ogy method 15.54 15.54 30 76 assets Held-for- Domesticall ZOTYE Fair 777 - - 423448. trading y/Overseas 000980 Automo value 75.0 15398. 15398. 62376.61 Other 92 financial listed stock bile method 2 41 41 assets Hangzh ou Industri al & Fair - - Held-for- Trust 150000 15585 1543950. trading Self- None Comme value 14550. 14550.product 0.00 00.00 00 financial funded rcial method 00 00 assets Trust Co.Ltd. 660 45110 23957166328891155850.0290936911138 Total -- 8977. -- -- 549.62475.859.2000.000263.1334.53 66 33 Note: The holding of Hangzhou Industrial & Commercial Trust Co. Ltd. during the Reporting Period resulted from the acquisition of Hule Electrical Equipment by Hainan Technology. (2) Investments in Derivative Financial Instruments □Applicable □ Not applicable 1) Derivative Investments for Hedging Purposes in the Reporting Period □Applicable □ Not applicable Unit: USD’0000 Gain/loss on Cumulative Ending Purchased Initial fair value fair value Sold in the investment Beginnin in the Ending Type of derivative investmen changes in the changes Reporting amount as % of g amount Reporting amount t amount Reporting charged to Period the Company’s Period Period equity ending equity General forward 1800 0 0 0 1800 1800 0 0.00% General forward 650 0 -3.83 0 650 0 650 0.46% Total 2450 0 -3.83 0 2450 1800 650 0.46% Major changes in Not accounting policies 40Foshan Electrical and specific accounting principles adopted for hedges in the Reporting Period compared to the last reporting period Actual gain/loss in During the Reporting Period the actual profit and loss amounted to USD-61400.the Reporting Period The Company carries out foreign exchange hedging business appropriately according to specific situations Effectiveness of which can effectively reduce the foreign exchange market risk lock in industrial profit of export business and hedging 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 the Company as agreed the actual Analysis of risks and exchange loss of the Company will not be offset. 5. Collection forecast risk: Marketing departments forecast control measures collection based on the actual and expected orders of customers. In practice customers may adjust such orders.associated with As a result the Company’s collection forecast will not be accurate leading to delivery risks.derivative Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate.investments held in When the exchange rate fluctuates greatly it will adjust the business strategy in a timely manner to stabilize the Reporting Period export business and avoid exchange losses to the utmost. 2. The Company has established the Management (including but not System for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also limited to market formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions risk liquidity risk clearly defining the operating principles approval authority responsible department and responsible person credit risk internal operation procedures information isolation measures internal risk reporting system risk management operational risk procedures and information disclosure related to the foreign exchange hedging business. 3. In order to prevent legal risk etc.) any delay in the foreign exchange hedging the Company will strengthen the management of accounts receivable actively collect receivables and avoid any overdue receivables. In the meantime the Company plans to increase the export purchases and purchase corresponding credit insurance so as to reduce the risk of default and customer default. 4. The Company’s foreign exchange hedges must be strictly based on the Company’s foreign exchange earnings prediction. Besides the Company shall strictly control the scale of its foreign exchange hedges and manage all risks that the Company may face within a controllable range. 5. The internal audit department of the Company shall check the actual signing and execution situation of all trading contracts on a regular or irregular basis.Changes in market prices or fair value of derivative 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 Standard Reporting Period for Business Enterprises No. 24—Hedges the Accounting Standard for Business Enterprises No. 37— (fair value analysis Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at based on the price should include provided by pricing service providers such as banks or the price obtained. Fair value measurement and measurement recognition are carried out on a monthly basis. Fair value changes of forward exchange settlement contracts method and related entered into by the Company are mainly attributable to difference arising from exchange rate fluctuations.assumptions and parameters) Legal matters involved (if N/A applicable) Disclosure date of announcement on Board of Directors’s 1 August 2023 30 April 2024 approving derivative investment (if any) 2) Derivative Investments for Speculative Purposes in the Reporting Period □Applicable □Not applicable No such cases in the Reporting Period. 41Foshan Electrical 5. Use of Raised Funds □Applicable □ Not applicable (1) General Information about Use of Raised Funds □Applicable □ Not applicable Unit: RMB’0000 Usage ratio Cumulative Cumulati Re- of raised re-purposed Amount Net used in ve total purposed Purpose and Securities Total funds at the Cumulative amount being idle Year of Way of amount the amount amount in Unused whereabouts of listing amount end of the re-purposed as % of for more raising raising of funds current of raised the amount the unused date raised Reporting amount total than two raised (1) period funds Reporting amount Period (3) amount years used (2) Period = (2) / (1) raised The balance of temporarily idle proceeds used by the Company for cash Issuance management of shares 4 amounted to 1094108841133020128892 2023 to December 18.49% 0 0 0 RMB599 0 specific 2023 55.18 1.55 .95 .48 69.7 million while objects the remaining proceeds were deposited in designated accounts for raised funds. 1094108841133020128892 Total -- -- 18.49% 0 0 0 -- 0 55.181.55.95.4869.7 Description of the use of raised funds In November 2023 the Company raised RMB1094551800 through a share issuance to specific investors. After deducting issuance expenses such as underwriting fees sponsorship fees audit fees and legal fees totalling RMB6136300 the actual net proceeds amounted to RMB1088415500. As at 31 December 2024 the Company had cumulatively utilised RMB201284800 of the raised funds accounting for 18.49% of the net proceeds. (2) Promised Use of Raised Funds □Applicable □ Not applicable Unit: RMB’0000 Promised Accumul project Total ative Investm Time Return Accumula funded Re- promise investme Meeti Signific Adjuste ent when s tive with purpose d Input nt ng the ant Securiti d total progress the derive benefits Financing raised d or investm in the amount expect change es Project amount as at the project d in recorded project funds and partially ent Report at the ed to listing nature of the period- is ready the as at the name investmen re- amount ing end of return project date investm end for its Report end of t with purpose with Period the s or feasibilit ent (1) (3)＝(2) intended ing Reporting over- d or not raised Reportin not y or not /(1) use Period Period raised funds g Period funds (2) Promised projects 2023 FSL’s Producti Issuance 4 automatio on and 3646 3585 324 3535. Novemb of Shares Decemb n and Not 9.86% N/A N/A N/A Not construc er 2026 to Specific er 2023 digitalisati 4.27 0.64 1.67 32 tion Targets on project 2023 FSLHaina Producti Issuance 4 n on and 2525 2525 316 1052 41.68 May of Shares Decemb Not N/A N/A N/A Yes Industrial construc 2025 to Specific er 2023 2.91 2.91 0.92 5.5 % Park I tion Targets 2023 4 The smart Producti Not 9179. 9179. 29.6 95.77 1.04% May N/A N/A N/A Yes 42Foshan Electrical Issuance Decemb street on and 52 52 3 2025 of Shares er 2023 lights construc to Specific project tion Targets The 2023 vehicle Producti Issuance 4 May light on and 2400 2400 251 2667. 11.11 of Shares Decemb Not 2027 N/A N/A N/A Not module construc to Specific er 2023 8.8 8.8 6.86 39 % (Note 1) productio tion Targets n project 2023 Researc The R&D Issuance 4 h and Novemb centre 1454 1454 238 3304. 22.71 of Shares Decemb develop Not er 2027 N/A N/A N/A Not constructi to Specific er 2023 ment 9.68 9.68 1.87 5 % (Note 1) on project Targets project 113 109410882012 Subtotal of promised projects -- 30.9 -- -- N/A N/A -- -- 55.1841.558.48 5 Use of over-raised funds There were no over raised funds. 11 109410882012 Total -- 330 -- -- N/A N/A -- -- 55.1841.558.48.95 1. FSL’s Automation and Ddigitalisation Project: This project aims to procure advanced automated production equipment and supporting facilities and to implement a digital and intelligent transformation to establish an intelligent manufacturing system.It was originally scheduled to reach its intended usable state by November 2026. However due to the combined impact of a slowdown in domestic macroeconomic growth overseas tariff barriers and declining costs of related hardware and software the investment progress of the project has fallen short of expectations. 2. R&D Centre Construction Project: On 18 June 2024 the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory Committee reviewing and passing the Proposal on Extending the R&D Centre Construction Project Time. According to the construction status and implementation progress of the raised funds investment project and in light of the demand for products in the downstream market the relevant R&D projects planned for the Company’s R&D centre are currently progressing steadily and the purchase of relevant R&D equipment and R&D-related software is under way in succession. However as some experimental equipment needs to be customised and the R&D Explain the equipment is characterised by small batches and multiple varieties not all equipment has been procured installed or circumstances and commissioned adequately. In view of the above reasons the Company agreed to extend the construction period of the raised reasons for failing to funds investment project “R&D centre construction project” by two years that is to extend the time for the raised funds achieve the planned investment project to reach the intended status of use to May 2026.progress and On 23 April 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th expected returns by Supervisory Committee during which the Proposal on the Change and Termination of Certain Fundraising Investment item (including the Projects was reviewed and approved. Due to adjustments made to certain R&D topics and supporting equipment during the reason for selecting implementation of the “R&D Centre Construction Project” the Company intends to extend the investment period of the project “N/A” for “Meetingby one and a half years to ensure smooth project advancement and the achievement of R&D objectives. Accordingly the the expected returns planned date for the project to reach its intended usable state will be postponed to November 2027.or not”) 3. Automotive Lighting Module Production Project: On 23 April 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. Throughout the implementation of the Automotive Lighting Module Production Project the Company has prioritised 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 customised equipment the current investment progress has fallen behind schedule. Therefore the Company proposes to extend the investment period of the project by two years postponing the date for it to reach its intended usable state to May 2027. (For details on the delay in the planned progress of the “FSL’s Hainan Industrial Park Phase I” and the “Smart StreetlightConstruction Project” please refer to the section “Particulars about significant change to project feasibility” in this table.) 1.FSL’s Hainan Industrial Park Phase I Project: On 23 April 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 the Change and Termination Particulars about of Certain Fundraising Investment Projects was reviewed and approved. Due to various factors including the fact that China’s significant change to marine industry is still in its early stages of development the Company’s existing production capacity is sufficient to meet the project feasibility 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 to the Announcement on the Change and Termination of Certain Fundraising Investment Projects disclosed on the same day on www.cninfo.com.cn). 43Foshan Electrical .2. Smart streetlight construction project: On 23 April 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of Certain Funded Projects was reviewed and approved. Due to a slowdown in investment by local governments in municipal infrastructure in recent years the market demand for new infrastructure projects such as smart streetlights has grown at a rate below expectations resulting in insufficient project orders. Therefore the Company proposes to terminate the implementation of the "Smart Streetlight Construction Project" (For further details please refer to the Announcement on the Change and Termination of Certain Funded Projects disclosed on the same day on cninfo.com.cn).Amount purpose and use progress of N/A over-raised funds Change of implementation location of raised N/A funds investment projects Applicable Occurred during the Reporting Period.Adjustments to the On 18 June 2024 the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory way of Committee reviewing and passing the Proposal on Adding Implementation Entities and Special Accounts for Raised Funds implementation of to Some Raised Funds Investment Projects and agreed to add FSL Chanchang Lighting Co. Ltd. (hereinafter referred to as raised funds “Chanchang Company”) a wholly-owned subsidiary of the Company as one of the implementation entities for the raised investment projects funds investment project “FSL’s automation and digitalisation project”. In consequence the implementation entities of the raised funds investment project changed from the Company to the Company and Chanchang Company. The adjustment did not involve any change to the amount or purpose of the raised funds.Applicable Advance On 16 January 2024 the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the 9th investments in Supervisory Committee reviewing and passing the Proposal on Using Raised Funds to Replace Self-raised Funds for Pre- promised projects invested Capital Projects and Paid Issuance Expenses and agreed based on the actual situation of the Company to use the funded with raised raised funds to replace self-raised funds of RMB87975313.46 used for pre-invested capital projects. Specifically self-raised funds and funds of RMB2603975.16 for paid issuance expenses would be replaced. By January 2024 the Company had completed the subsequent swaps swap of all the self-pooled funds.Use of idle raised funds for temporarily N/A supplementing the working capital Surplus amount of raised funds upon project N/A implementation and the reasons As at 31 December 2024 the total amount of unutilised proceeds was RMB892697000 of which RMB293697000 was held Purpose and as bank deposits in designated accounts for raised funds and RMB599 million was invested in cash management using whereabouts of temporarily idle proceeds which had not yet matured or been redeemed. The raised funds unused by the Company would be unused raised funds put into use according to the subsequent progress of the raised funds investment projects. 1. On 16 January 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 forImplementing Raised Funds Investment Projects. Given that the implementation of the raised funds investment project “FSLHainan Industrial Park I” is organised by Fozhao (Hainan) Technology Co. Ltd. (hereinafter referred to as “HainanTechnology”) a wholly-owned subsidiary of the Company to guarantee the successful implementation of the raised funds Problems or other investment project the Board of Directors agreed that the Company might use raised funds to provide an interest-free loan for issues arising in the Hainan Technology with the total loan amount not exceeding RMB252529100 and a loan term of three years.use and disclosure of 2. On 23 April 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th raised funds Supervisory Committee during which the Proposal on Adjusting the Internal Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed and approved. In light of the rapid development of information technology and the Company’s actual business needs and in order to enhance the efficiency of fund utilisationthe Company plans to adjust the internal investment structure for equipment upgrades under the “FSL’s automation anddigitalisation project” and to add a new project implementation site at “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict 44Foshan Electrical Chancheng District Foshan City.” 3. On 23 April 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of Certain Funded Projects was reviewed and approved. It was agreed that the Company would make the following adjustments to the “R&D Centre 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. 4. The Proposal on the Change and Termination of Certain Funded Projects reviewed and approved at the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors convened by the Company on 23 April 2025 is still subject to review by the General Meeting of Shareholders.Note 1: The date on which the project is expected to reach its intended usable state reflects the postponed timeline as approved by the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee. (3) Re-purposed Raised Funds □Applicable □Not applicable No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Investments 1. Sale of Major Assets □Applicable □ Not applicable Whether the project has Proporti been Net profit on of Relation implemente contribute net ship Whether d as planned d by the Whether profit with the all the and on asset to the contribu Principl counterp associat schedule. If the listed If it is ownersh Impact of ted by es for arty ed rights it has not Trade company a ip of the Asset(s) the sale on the asset determi (applica and been Counterpa Date Price from the related assets Disclosu Disclosure to be the sale to ning the ble in obligati implemente rty of sale (RMB1 beginning -party involved re date index sold Company the total sale the case ons have d as 0000) of the transa has been (Note 3) net price of of been planned the period to ction fully profit of the asset related fully reasons and the date of transferr the party transferr the sale ed listed transacti ed measures (RMB100 compan ons) taken by the 00) y Company should be explained The Company Announcem has placed ent Title: the North Progress Fenjiang South Report on Road plot Area the under a Plot of Company’s Foshan reserved North Asset Chanchen 4 account Fenjiang 26 Disposal and g District Nove 3937 29868. which will Market Road 57.06% Not N/A Yes Not Yes Februar Public Land mber 7.91 11 help price Chanche y 2024 Listing of Reserve 2024 activate ng Land for Centre assets District Sale improve Foshan Disclosure asset City Website: profitabilit http://www.y and cninfo.com.provide cn financial support 45Foshan Electrical Whether the project has Proporti been Net profit on of Relation implemente contribute net ship Whether d as planned d by the Whether profit with the all the and on asset to the contribu Principl counterp associat schedule. If the listed If it is ownersh Impact of ted by es for arty ed rights it has not Trade company a ip of the Asset(s) the sale on the asset determi (applica and been Counterpa Date Price from the related assets Disclosu Disclosure to be the sale to ning the ble in obligati implemente rty of sale (RMB1 beginning -party involved re date index sold Company the total sale the case ons have d as 0000) of the transa has been (Note 3) net price of of been planned the period to ction fully profit of the asset related fully reasons and the date of transferr the party transferr the sale ed listed transacti ed measures (RMB100 compan ons) taken by the 00) y Company should be explained for the future developm ent of the Company’ s main business. 2. Sale of Major Equity Investments □Applicable □Not applicable IX Major Subsidiaries □Applicable □ Not applicable Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit: Unit: RMB Relationship Principal Registered Total Operating Operating Name with the Net assets Net profit activity capital assets revenue profit Company Foshan 6249 NationStar 61847 3824161 3472860 3641475 5437553 Subsidiary Manufacturing 27926 Optoelectronics 7169.00 649.55 317.19 3.20 2.37 Co. Ltd. 9.11 Nanning 3505528152 Liaowang Auto Subsidiary Manufacturing 10484149 18228394 62909490. 63038037.Lamp Co. Ltd. 700.00 60927. 48.22 21.05 78 39 69 FSL Zhida Electric 16361 381508792844183425774516006603492 Technology Co. Subsidiary Manufacturing 6843.Ltd. (FSL 000.00 8.71 77.41 .18 .25 39 Zhida) FSL Chanchang 1218 727823772527108641675013676616462 Lighting Co. Subsidiary Manufacturing 52913 Ltd. 944.00 22.96 550.97 9.52 8.67 2.47 Subsidiaries obtained or disposed in the Reporting Period: □Applicable □ Not applicable 46Foshan Electrical How the subsidiary was obtained Impact on overall operations and Name or disposed of in the Reporting performance Period No significant impact on the Liaowang Auto Lamp (Suzhou) Newly established Company’s production and Co. Ltd.performance.No significant impact on the Fozhao Huaguang (Maoming) Newly established Company’s production and Technology Co. Ltd.performance.No significant impact on the Gaozhou NationStar Lighting Newly established Company’s production and Technology Co. Ltd.performance.No significant impact on the Zhejiang Hule Electrical Acquired Company’s production and Equipment Manufacturing Co. Ltd.performance.No significant impact on the Shanghai Lelaite Electrical Acquired Company’s production and Equipment Co. Ltd.performance.Information about major majority- and minority-owned subsidiaries: —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 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.—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 Nanning Liaowang in its consolidated financial statements from the date when the Company obtained actual control of it.—FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) was incorporated by the Company Foshan Zhibida Enterprise Management Co. Ltd. and Dongguan Baida Semiconductor Material Co. Ltd. on a joint investment basis. FSL Zhida obtained its business license on 21 October 2016. FSL Zhida changed its registered capital on the basis of paid-in-capital on 16 January 2023. Upon the completion of the change the Company holds a stake of 66.84% in it. The Company has included FSL Zhida in its consolidated financial statements since the date of FSL Zhida’s incorporation.—FSL Chanchang Lighting Co. Ltd. (renamed on 19 June 2018 from “Foshan Chanchang ElectricAppliances (Gaoming) Co. Ltd.”) which is a Sino-foreign joint venture invested and established by the Company and Prosperity Lamps & Components Limited had obtained license for business corporation on 23 August 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District Foshan with document “MWMYZ [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 23 August 2016 the Company and Prosperity Lamps & Components Limited 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 Lighting Co. Ltd. 47Foshan Electrical X Structured Bodies Controlled by the Company □Applicable □Not applicable XI Prospects i. The Company’s development strategiesThe Company is committed to implementing the development strategy of “new-type basic platformand large-scale new tracks.” It will continue to focus on technology and services as the coreemphasising brand and value. The Company is closely aligned with upgrading to “mid-to-high-endintelligent manufacturing” transforming towards “providing products and overall solutions” and making strides towards “intelligent healthy and green human-centric lighting.” At the same time the Company is making efforts on the application front continuously expanding into the Internet of Things (IoT) ecosystem and niche markets. It is committed to developing new application scenarios and products consistently enhancing the Company’s core competitiveness and accelerating the next phase of development.ii. Operational plan for 2025 1. Make market expansion the fundamental task of the Company’s development and comprehensively enhance its market outreach capabilities.Firstly the Company will strengthen and solidify the foundation of the business. Through a series ofstrategies such as “grid management + supplier capability upgrading + competitive product planningfor application scenarios + deep distribution” the Company is determined to promote channel penetration and enhance control over the terminal market. It will accelerate the establishment andimprovement of an integrated project operation mechanism covering “R&D production sales supplyand service” and speed up the expansion of major clients and large projects such as “large-scaleindustrial and real estate” sectors. The Company will also focus on driving the implementation and transformation of group procurement and reserve projects. At the same time it will consolidate its export business intensify efforts in the “Go Global Initiative” and accelerate expansion into emerging markets such as Southeast Asia the Middle East and BRICS countries driving the growth of its overseas business. The automotive lighting business seizes the development window of the automotive market adapting to the trends of electrification networking and intelligence. It accelerates its transformation towards new energy and mid-to-high-end segments aiming to achieve more scenario applications and business expansion in high-end areas such as automotive lighting controllers and intelligent human-vehicle interaction. Secondly the Company will focus on making the new track businesses more specialised and practical. The Company integrates resources in marine lighting leveraging internal synergy advantages to seize the boom cycle of the shipbuilding industry.It is fully committed to expanding into the military vessel market inland waterway vessel lighting and deep-sea vessel lighting businesses while focusing on cultivating and promoting fishing and aquaculture lighting products and integrated solutions. For road lighting sports lighting and aviation lighting the Company remains resolute in pursuing a specialised refined distinctive and innovative approach. It focuses on breakthroughs in core markets core businesses core products core technologies and core talents. By developing professional products and delivering benchmark projects the Company aims to drive business breakthroughs and growth. 2. Make innovation-driven development a fundamental requirement for the Company and comprehensively enhance product competitiveness.The Company will adhere to technological self-reliance lead with the “Technological Fozhao” brand strategy and build new competitive advantages. Firstly focusing on “new quality” to strengthen innovation the Company positions the New Quality Productive Forces Research Center as the 48Foshan Electrical forefront of advancing high-quality development. It will strengthen research in foundational urgent cutting-edge and disruptive technologies focusing on building three major areas of excellence: technology industry and talent. The Company will concentrate on cultivating and developing high- quality R&D talent deeply integrating “industry academia and research” and continuouslyempowering and driving high-quality development. Secondly the Company will “strengtheninnovation based on light.” By leveraging the research institute and automotive lighting research institute to deeply integrate innovative resources the Company will develop its “light code”technology. It will optimise the three-tier R&D system of “production generation R&D generationand reserve generation” intensify efforts in technological innovation and product iteration and launch a series of products and intelligent solutions including smart control and elderly care solutions.Thirdly the Company emphasises innovation in new tracks. Focusing on the future direction of industrial development the Company will strategically consider new businesses such as marine lighting smart lighting and healthy lighting. It will target the recruitment of urgently needed innovative and scarce talent for R&D particularly those with expertise in cutting-edge technologies who can lead major scientific research projects along with top-tier scientific leaders and teams.Fourthly the Company will integrate resources to strengthen innovation. The Company will deepen industry-university-research cooperation with research institutes and universities enhance collaboration on industrial product R&D with corporate research institutions and reserve a batch of original technologies. It aims to achieve more breakthroughs from “zero to one” and “one to N” using technological innovation to forge a “new engine” for the Company’s high-quality development. 3. Make operational improvement the fundamental source of the Company’s development and comprehensively enhance value creation capability.Firstly the Company will establish a solid foundation for operational excellence. Through unified deployment systematic methods mechanism building capability development and solidifying results the Company will make incremental and continuous improvements in its operations. This will drive more flexible manufacturing smoother logistics faster delivery superior quality more automated equipment and more refined planning. Secondly the Company will improve operational efficiency. We will accelerate the establishment of a flexible and efficient integrated operation mechanism covering R&D production and sales. By utilising digital big data systems and tools the Company will comprehensively optimise business processes based on the principles of scientific accuracy compliance coordination and unification enhancing business flow efficiency and the ability to respond quickly to the market. Thirdly the Company will reduce operational costs. We will vigorously promote generalisation platformisation modularisation structuring and standardisation to comprehensively reduce costs in R&D design procurement manufacturing and marketing. The Company will also work to reduce channel inventory raw material and finished product inventory and supply chain inventory. With the annual budget as a constraint it will strengthen rigid cost control and dynamic adjustments. Fourthly the Company will enhance operational efficiency. We will make asset revitalisation one of the key tasks for the year fully driving the land reserve of the central area of North Fenjiang Road and the revitalisation of idle properties and factory buildings to improve asset profitability.(III) Potential risks facing the Company and countermeasures 1. Risks of macro economic fluctuations and fiercer market competition Currently the global macroeconomic environment faces multiple uncertainties. Domestic macroeconomic growth is slowing while international trade protectionism is rising with frequent occurrences of tariff barriers and technical trade measures. These factors may have an adverse impact on the development of the lighting industry. The lighting industry has especially entered a stage of 49Foshan Electrical competition within the existing market with market growth slowing down and intensified competition. As a result the profitability of companies may continue to face pressure.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 smart lighting healthy lighting marine lighting animal and plant lighting. It will also accelerate the introduction of new manufacturing processes technologies and products to the market for new competitive edges. At the same time by optimizing marketing network and strengthening the business focus and expansion on domestic and foreign major customers the Company will improve service quality strengthen internal management and increase core competitive capacity constantly. 2. Risk of raw material price fluctuations The main raw materials of the Company and its subsidiaries include chips lamp beads electronic components aluminum substrates plastic parts metal materials etc. and the price fluctuations of main raw materials will have an impact on the Company’s production costs. If the price of raw materials continues to rise in the future it may adversely affect the Company’s production and operation.Countermeasures: The Company will pay attention to market dynamics collect information analyze and pre-judge supply of main raw materials and price trends so as to make excellent sourcing plans.By enhancing negotiation refining suppliers perfecting supply chain management and promoting alternative materials the Company is able to decrease procurement costs. 3. Risk of exchange rate fluctuations Overseas sales which are mainly settled in USD account for over 20% of the Company’s total sales.If RMB experiences significant appreciation the price competitiveness of overseas sales could be undermined and exchange losses may increase which will produce adverse impacts on the Company’s net profit.Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend of settlement currencies in time intensifying settlement currency management and carrying out foreign exchange hedging business when the timing is right the Company can relatively lock in exchange rates and minimize the risks brought by exchange rate fluctuations. 4. Risk associated with the recoverability of accounts receivable Receivables grow along with the Company’s business. Customers who fail to repay loans timely or become insolvent due to changes in macroeconomic trends market environments and their business will place the Company at the risk of non-performing receivables.Countermeasures: In order to reduce the receivable collection risk the Company can constantly optimize the receivable risk management system categorise customers for better management regularly assess customers’ credit profiles and enhance customer risk assessment. Meanwhile it can reinforce contract approval and management double its effort to collect receivables and incorporate the collection of receivables into the performance assessment system for business departments.XII Communications with the Investment Community such as Researches Inquiries and Interviews □Applicable □ Not applicable 50Foshan Electrical Main discussions Way of Type of Index to communication Date Place Visitor and materials communication visitor information provided See Investor 5 January One-on-one GF Securities Guolian Relations The Company Institution http://www.cninfo.com.cn 2024 meeting Fund C&S Paper Activities Log Sheet No. 2024-01 Foshan Listed Companies Association Sanshui District See Investor 26 January One-on-one Institutions Enterprise Promotion Relations The Company http://www.cninfo.com.cn 2024 meeting individuals for Listing Association Activities Log CITIC Securities and 44 Sheet No. 2024-02 other individual and institutional investors.CICC CITIC Securities See Investor Comein Through an Guotai Junan Securities Relations 7 May 2024 Finance Online Institution http://www.cninfo.com.cn online platform and 15 other Activities Log Conference institutional investors. Sheet No. 2024-03 Zhongxin Rongchuang Wanhe Guodu Venture See Investor 16 May One-on-one Capital Dongxing Relations The Company Institution http://www.cninfo.com.cn 2024 meeting Securities and eight Activities Log other institutional Sheet No. 2024-04 investors.A wide range of See Investor 20 May www.quanjing. Through an investors who Relations Other http://www.cninfo.com.cn 2024 com online platform participate remotely Activities Log over the Internet. Sheet No. 2024-05 Barclays AMBIENTA SGR SPA LH NR UK See Investor 23 May One-on-one (MANAGEMENT) Relations The Company Institution http://www.cninfo.com.cn 2024 meeting LLP J.P. Morgan Asset Activities Log Management Qatar Sheet No. 2024-06 Investment Authority.Foshan Listed Companies Association See Investor Zhuhai Dinghua Equity 27 June One-on-one Relations The Company Institution Investment Guangdong http://www.cninfo.com.cn 2024 meeting Activities Log Baolong Private Equity Sheet No. 2024-07 Fund and 12 other institutional investors.The State-owned Assets Supervision and Administration Commission of Guangdong Province SZSE Listed SZSE Listing Companies Association Hall of Guangdong See Investor 5“Panorama * Guangdong Rising RelationsNovember Other Other http://www.cninfo.com.cn Roadshow Holdings Group along Activities Log 2024World” with over 200 Sheet No. 2024-08 website. institutional investors and media representatives participated with the entire event also being live-streamed on www.quanjing.com.XIII Formulation and Implementation of the Market Value management System and Valuation Promotion Plan Has the Company established a market value management system 51Foshan Electrical □Yes □No Has the Company disclosed a valuation improvement plan □Yes □No XIV Implementation of the “Quality and Earnings Dual Improvement” Action Plan Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□Yes □No 52Foshan Electrical Part IV Corporate Governance I General Information of Corporate Governance During the Reporting Period in strict accordance with relevant requirements of Company Law Securities Law Code of Corporate Governance of Listed Companies in China and Rules of Stock Listing of Shenzhen Stock Exchange as well as other relevant laws rules and regulations the Company continuously perfected the corporate governance structure and set up an effective corporate governance system. At present the Company has set up governance structure of responsible Shareholders’ General Meeting the Board of Directors the Supervisory Committee and managers who performed right of decision-making execution and supervision respectively according to their duties; besides the Company set up special committees of the Board of Directors and system for independent directors. The Company strengthened information disclosure of principal shareholders and persons acting-in-concert forbidden shareholders of the Company to misapply their rights. The Company separated from the principal shareholder in personnel assets business financial affairs and organizational and was absolutely impendent. The Company timely revised and perfected various systems in accordance with the latest issued laws & rules and relevant regulations of CSRC and SZSE.And the corporate governance is basically in line with the requirements of relevant laws regulations and regulatory documents.Indicate by tick market whether there is any material incompliance with the applicable laws regulations or rules issued by the CSRC governing the governance of listed companies.□Yes □No No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in Asset Personnel Financial Affairs Organization and Business The Company is completely separated from its controlling shareholder and actual controller in aspects such as business personnel assets institutions and finance and possesses independent and complete business and self-dependent operating ability. 1. As for the business the Company is independent of its controlling shareholder and actual controller and their subordinate enterprises and owns the independent business departments and management system as well as possesses of impendent and entire business and self-dependent operating ability. 2. As for the personnel the Company formulates the independent management system such as the labor personnel and the salary possesses the independent personnel department and the operating management team. The Senior Executives of the Company are serving at the Company in full time and receiving the salary from the Company. 3. As for the assets the assets of the Company are independent and entire with clear ownership and possesses the independent production system BOP system and the supporting facilities as well as possesses the legal ownership of the land factories equipments related to the production and operating and the assets such as the trademark patent and the non-patent technology and possesses the entire control and govern power of all the assets of the Company without any behavior such as the controlling shareholder or the actual controller occupies the assets of the Company. 4. As for the institutions the Company set up the independent and entire organizations and institutions and the construction as well as the operating of the corporate governance institutions is executed strictly executed according to the Articles of Association and the production and operating as well as 53Foshan Electrical the offices are entirely independent from the controlling shareholder and the actual controller with any situation of working under one roof with the controlling shareholder or the actual controller. 5. As for the finance the Company set up the independent finance department and builds up the independent and normative accounting and financial control system according to the requirements of the ASBE set up the independent bank account and pays the taxes legally and independently and the Company could make the financial decisions independently without any situation of the controlling shareholder or the actual controller intervenes the capital usage of the Company.III Horizontal Competition □Applicable □Not applicable IV Annual and Special General Meetings Convened during the Reporting Period 1. General Meeting Convened during the Reporting Period Investor Resolutions of the Meeting Type Convened date Disclosure date participation ratio meeting The 1st Resolutions of the Extraordinary Extraordinary 1st Extraordinary 41.42% 26 February 2024 27 February 2024 General Meeting General Meeting General Meeting of 2024 of 2024 Resolutions of the The 2023 Annual Annual General 41.16% 14 May 2024 15 May 2024 2023 Annual General Meeting Meeting General Meeting The 2nd Resolutions of the Extraordinary Extraordinary 2nd Extraordinary 42.43% 10 October 2024 11 October 2024 General Meeting General Meeting General Meeting of 2024 of 2024 The 3rd Resolutions of the Extraordinary Extraordinary 16 December 17 December 3rd Extraordinary 42.49% General Meeting General Meeting 2024 2024 General Meeting of 2024 of 2024 2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting Rights □Applicable □Not applicable V Directors Supervisors and Senior Management 1. General Information Increase Decrease Other Beginning in the in the Ending Reason Gende Incumben Start of End of increase Name Age Office title shareholdin Reporting Reporting shareholding for share r t/Former tenure tenure /decreas g (share) Period Period (share) changes e (share) (share) (share) Chairman Incumben 26 February Wan Shan Male 55 of the 0 0 0 0 0 t 2024 Board Vice 25 Zhuang Chairman Incumben Male 73 December 11903509 0 0 0 11903509 Jianyi of the t 2015 Board Incumben 26 February Director t 2024 Zhang Male 47 21 73052 0 0 0 73052 Xuequan General Incumben December Manager t 2023 54Foshan Electrical Increase Decrease Other Beginning in the in the Ending Reason Gende Incumben Start of End of increase Name Age Office title shareholdin Reporting Reporting shareholding for share r t/Former tenure tenure /decreas g (share) Period Period (share) changes e (share) (share) (share) Chen Incumben 26 February Male 41 Director 0 0 0 0 0 Mingjie t 2024 Incumben 30 June Hu Fengcai Male 59 Director 0 0 0 0 0 t 2022 Incumben 14 May Li Zehua Male 39 Director 0 0 0 0 0 t 2024 13 Independe Incumben Li Xiyuan Male 64 September 0 0 0 0 0 nt Director t 2021 13 Zhang Independe Incumben Male 59 September 0 0 0 0 0 Renshou nt Director t 2021 Independe Incumben 24 August Dou Linping Male 65 0 0 0 0 0 nt Director t 2020 Chairman of the Incumben 14 May Chen Xinjie Male 51 Supervisor 0 0 0 0 0 t 2024 y Committee 16 Femal Incumben Xi Lijia 36 Supervisor December 0 0 0 0 0 e t 2024 25 Zhuang Incumben Male 39 Supervisor December 0 0 0 0 0 Junjie t 2015 Zhang Incumben 10 October Male 50 Supervisor 0 0 0 0 0 Xiubo t 2024 Incumben 10 October Su Houxu Male 33 Supervisor 0 0 0 0 0 t 2024 Executive Deputy Incumben 5 February Zhang Yong Male 50 77596 0 0 0 77596 General t 2024 Manager Deputy Incumben 13 May Chen Yu Male 52 General 66066 0 0 0 66066 t 2014 Manager Deputy Zeng Femal Incumben 14 May 46 General 0 0 0 0 0 Xiaojing e t 2024 Manager Deputy Incumben 30 August Wang Ye Male 48 General 5600 0 0 0 5600 t 2024 Manager Chief Tang Femal Incumben 26 January 54 Financial 75940 0 0 0 75940 Qionglan e t 2016 Officer Secretary Huang of the Incumben 19 May Male 37 0 0 0 0 0 Zhenhuan Board of t 2021 Directors Chairman 23 Wu Male 54 of the Former 7 May 2020 February 0 0 0 0 0 Shenghui Board 2024 Deputy 25 Huang 5 February Male 55 General Former December 0 0 0 0 0 Zhiyong 2024 Manager 2015 Chairman of the 18 January 17 April Li Jingwei Male 48 Supervisor Former 0 0 0 0 0 20222024 y Committee Li Yizhi Male 37 Supervisor Former 24 August 29 0 0 0 0 0 55Foshan Electrical Increase Decrease Other Beginning in the in the Ending Reason Gende Incumben Start of End of increase Name Age Office title shareholdin Reporting Reporting shareholding for share r t/Former tenure tenure /decreas g (share) Period Period (share) changes e (share) (share) (share) 2020 November 2024 10 Ye 27 May Male 51 Supervisor Former October 77561 0 0 0 77561 Zhenghong 2010 2024 2010 Lin Qing Male 55 Supervisor Former September October 22583 0 0 0 22583 20162024 Deputy 28 19 January Wei Bin Male 55 General Former September 105226 0 0 0 105226 2024 Manager 2009 Total -- -- -- -- -- -- 12407133 0 0 0 12407133 -- Indicate by tick mark whether any director supervisor or senior management resigned during the Reporting Period.□Yes □ No In February 2024 Mr. Wu Shenghui resigned as Chairman of the Board and Director and from the relevant special committees of the Company due to reassignment.In February 2024 Mr. Huang Zhiyong resigned as Director and from the relevant special committees of the Company due to reassignment.In April 2024 Mr. Li Jingwei resigned from his position as a supervisor and chairman of the Supervisory Committee of the Company due to a job transfer.In November 2024 Mr. Li Yizhi resigned from his position as a supervisor of the Company due to a job transfer.In October 2024 Mr. Ye Zhenghong and Mr. Lin Qing ceased to serve as supervisors of the Company due to the expiration of their term in the 9th Supervisory Committee and the subsequent reshuffle.In January 2024 Mr. Wei Bin resigned as Deputy General Manager of the Company due to reassignment.Change of directors supervisors and senior management: □Applicable □ Not applicable Name Office title Type of change Date of change Reason for change Wu Shenghui Chairman of the Board Former 23 February 2024 Job transfer Huang Zhiyong Director Former 5 February 2024 Job transfer Chairman of the Li Jingwei Former 17 April 2024 Job transfer Supervisory Committee Li Yizhi Supervisor Former 29 November 2024 Job transfer Ye Zhenghong Supervisor Former 10 October 2024 Board change Lin Qing Supervisor Former 10 October 2024 Board change Wei Bin Deputy General Manager Former 19 January 2024 Job transfer Wan Shan Chairman of the Board Elected 26 February 2024 Job transfer Zhang Xuequan Director Elected 26 February 2024 Job transfer Zhang Xuequan General Manager Appointed 21 December 2023 Job transfer Chen Mingjie Director Elected 26 February 2024 Job transfer Li Zehua Director Elected 14 May 2024 Job transfer Chen Xinjie Chairman of the Elected 14 May 2024 Job transfer 56Foshan Electrical Supervisory Committee Xi Lijia Supervisor Elected 16 December 2024 Job transfer Zhang Xiubo Supervisor Elected 10 October 2024 Board change Su Houxu Supervisor Elected 10 October 2024 Board change Executive Deputy General Zhang Yong Appointed 5 February 2024 Job transfer Manager Zeng Xiaojing Deputy General Manager Appointed 14 May 2024 Job transfer Wang Ye Deputy General Manager Appointed 30 August 2024 Job transfer 2. Biographical Information Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and senior management: (I) Work experience of the directors Mr. Wan Shan: Born in October 1969 a member of the Communist Party of China MBA of College of Public Management of Sun Yat-Sen University. He was the Deputy Director Clerk of the Lecturers’ Brigade in the Propaganda Department of the Guangdong Provincial Party Committee. He also worked as a team member in the “Ten Hundred Thousand Million” Work Team stationed in Yongdong Village Rongcheng District Jieyang City. Additionally Wan Shan held the position of Deputy Director in the Research and Teaching Office of the Lecturers’ Brigade in the Publicity Department of CPC Guangdong Provincial Committee. He further served as the Deputy Director of the Office in the Publicity Department of CPC Guangdong Provincial Committee the Director of the Office of the Publicity Department of CPC Guangdong Provincial Committee Deputy Director in the State-owned Cultural Assets Supervision and Administration Office of the People’s Government.Furthermore he has worked as the Assistant to the General Manager and Secretary of Board of Directors as well as the Office Director at Guangdong Rising Assets Management Co. Ltd. He was also the Deputy Secretary of the Party Committee Director and Chairman of the Labor Union in Foshan NationStar Optoelectronics Co. Ltd as well as the Director of Party-Masses Department of Guangdong Rising Holdings Group Co. Ltd. (now renamed as Guangdong Rising Holdings Group Co. Ltd.). He has served as Secretary of Party Committee in the Company since January 2024; and as the Chairman of the Board of the Company since February 2024.Mr. Zhuang Jianyi: Born in 1951 with a bachelor’s degree and MBA. Currently the chairman of Prosperity Lamps & Components Limited and a director of Thinkon Semiconductor Jinzhou Corp.he has been engaged in the lighting industry for nearly fifty years. From 1995 to 2010 he acted as the Directors the Vice Chairman of the Board and the Chairman of the Board of the Company. And he has been serving as the Vice Chairman of the Board of the Company since December 2015.Mr. Zhang Xuequan: Born in December 1977 a member of the Communist Party of China MBA of Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the former Iodine-tungsten Lamp Workshop from October to December 1996; worked in the Technology Department and then the Quality Control Department from January 1997 to August 2002; acted as the Workshop Manager of Lamp Workshop from September 2002 to May 2008; acted as the Department Director of the Business Management Department of the Company from June 2008 to August 2016. He concurrently acted as the Office Director and the Head of the Investment Department from February 2016 to December 2018. He was the Party Branch Secretary for the Administrative Office of the Company from July 2010 to June 2017 and a member of the party committee of the Company since July 2015. He was a supervisor of the Company from May 2013 to August 2016 a Deputy General Manager of the Company from August 2016 to March 2020 an Executive Deputy General Manager of the Company from March 2020 to December 2023. He has been serving as the Deputy Secretary of the CPC Committee and General Manager of the Company 57Foshan Electrical since December 2023 and a Director of the Company since February 2024. He has also served as a director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) chairman and general manager of Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New Energy Technology Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan NationStar Optoelectronics Co. Ltd.Mr. Chen Mingjie: Male born in September 1983 a member of the Communist Party of China. He graduated with a Master’s degree in Business Administration from the School of Business at Renmin University of China. He served as the Deputy Supervisor of the Political and Cultural Department at Guangdong People’s Broadcasting Station; the Secretary of the Party Committee Office Senior Supervisor Deputy Director then the Director and Youth League Committee Secretary of the Party and Mass Personnel Department at Guangdong Provincial Guangsheng Asset Management Co. Ltd.(now renamed as Guangdong Provincial Guangsheng Holdings Group Co. Ltd.). He has been the Deputy Secretary of the Party Committee and Chairman of the Labor Union in the Company since August 2023; as the Director of the Company since February 2024.Mr. Hu Fengcai: Born in September 1965 member of the Communist Party of China graduated from the Party School of the Guangdong Provincial Committee of CPC majoring in Modern Economic Management. He is a senior accountant. He has held positions such as Deputy Manager of the Finance Department and Deputy Manager and Manager of the Financial Audit Department of Guangdong Metallurgical Industry Corporation of Guangdong Metallurgical Industry Corporation; member of the Party Committee and Deputy General Manager of Guangdong Guangye Metallurgical Limited Corporation; Independent Director of SGIS Songshan Co. Ltd.; director member of the Party Committee and Deputy General Manager of Guangdong Rising Metallurgical Co. Ltd.; Chairman of the Third Working Group of the Supervisory Committee and Deputy Director of the Operation Management Department at Guangdong Rising Assets Management Co. Ltd. (now renamed Guangdong Rising Holdings Group Co. Ltd.); Deputy Director of the Operation Management Department of Guangdong Rising Holdings Group Co. Ltd.; Director of Foshan NationStar Optoelectronics Co. Ltd.; and Guangdong Fenghua Advanced Technology Holding Co.Ltd.; he is currently a dedicated director dispatched by Guangdong Rising Holdings Group Co. Ltd.to listed companies and a director of Guangdong Rising Mining Group Co. Ltd. He has been a Director of the Company since June 2022.Mr. Li Zehua: Male born in October 1985 a member of the Communist Party of China. He holds a Master’s degree in Law and has obtained the legal professional qualification certificate and the secretary of Board of Directors qualification certificate for listed companies. He has served as Deputy Director and Director of the Office Director of the Party-Masses Department Director of the Human Resources Department Director of the Securities and Legal Affairs Department Director of the Investment Management Department Secretary of Li Zehua: Male born in October 1985 a member of the Communist Party of China. He holds a Master’s degree in Law and has obtained the legal professional qualification certificate and the secretary of Board of Directors qualification certificate for listed companies. and Chief Legal Counsel at Dongjiang Environmental Company Limited. He is currently a Party Committee Member and Deputy General Manager of Guangdong Electronics Information Industry Group Ltd. as well as the Chairman ofShenzhen Yuebao Electronic Technology Co. Ltd. He has been a Director of the Company since May 2024.Mr. Li Xiyuan: Born in March 1961 member of the Communist Party of China no permanent residence abroad postdoctoral degree professor-level senior engineer. He has previously served as Deputy Director of the Construction Management Office of the Northern Section of Beijing-Zhuhai Expressway in Guangdong Province Deputy Director of the Infrastructure Management Department at Guangdong Provincial Communication Group Co. Ltd. General Manager of Guangdong Gaintop 58Foshan Electrical Highway Engineering Construction Group Co. Ltd. General Manager and Chairman of Guangdong Provincial Expressway Development Co. Ltd. Chairman of Guangdong Road and Bridge Construction Development Co. Ltd. and Director of Guangdong Construction Engineering Group Co. Ltd. Guangdong Province Navigation Group Co. Ltd. Guangdong Namyue Group Co. Ltd.and Guangdong Provincial Railway Construction Investment Group Co. Ltd. He is currently an external director of Guangzhou Port Group Co. Ltd. Guangzhou High-tech Industry Group Co. Ltd.and Zhongshan Cuiheng Group Co. Ltd. as well as an independent director of Shenzhen Tagen Group Co. Ltd. and Dongguan Development (Holdings) Co. Ltd. He has been an Independent Director of the Company since September 2021.Mr. Zhang Renshou: Born in May 1965 Ph.D. professor postdoctoral co-supervisor doctoral supervisor no permanent residence abroad doctoral degree. Former assistant lecturer lecturer and associate professor at the Guangzhou Foreign Language Training Centre of the Ministry of Petroleum Industry; editor at the Development Research Centre of People’s Government of Guangdong Province; currently a professor in the Accounting Department of the School of Management at Guangzhou University; a special researcher at the Consultancy Office of the People’s Government of Guangdong Province; and an independent director at Jiangmen Rural Commercial Bank Limited.(non-listed company) Guangdong Provincial Expressway Development Co. Ltd. and Thinkon Semiconductor Jinzhou Corp.. He also serves as: Member of the Expert Group of the Budget Committee of Guangzhou Municipal People’s Congress Member of the Expert Group of the Economic Committee of Guangzhou Municipal People’s Congress Member of the 8th Committee of Guangdong Social Sciences Association Member of the Academic Committee of Research Center for Guangdong Local Public Finance Professional Advisory Committee Member of Guangdong Statistics Bureau Member of the Academic Committee of Guangdong Coastal Economic Belt Development Research Center President of Guangdong South China Economic Development Research Association Major Administrative Decision Demonstration Expert and Innovation and Entrepreneurship Development Expert of Shaoguan Municipal People’s Government of Guangdong Province and Special Researcher of Guangzhou Taxation Bureau of State Taxation Administration of the People’s Republic of China. He has been an Independent Director of the Company since September 2021.Mr. Dou Linping: Male born in August 1959 with no right of permanent residence in a foreign country holds a Bachelor’s degree and is a Senior Engineer. Previously he has served as Deputy Chief of the Design Section of Beijing Luminaries Factory Director of the Office of Design Standards and then Vice Director of Beijing Luminaries Research Institution Deputy Secretary-General and Managing Director of China Association of Lighting Industry and Managing Director and Secretary- General of China Illuminating Engineering Society. At present he serves as Vice Director-General of China Solid State Lighting Alliance Director of the Urban Cultural and Tourism Lighting Professional Committee of CSA and Independent Director of Hengdian Group TOSPO Lighting Co.Ltd. and Beijing New Space Technology Co. Ltd. He has been an Independent Director of the Company since August 2020. 2. Work experience of the supervisors Mr. Chen Xinjie: Male born in November 1973 a member of the Communist Party of China with a university degree. He has previously served as Quartermaster Sergeant and Deputy Platoon Leader of the Huadu City Squad Guangzhou Detachment Guangdong Provincial Corps of the Chinese People’s Armed Police Force Platoon Leader of the 10th Squad and 7th Squad Guangzhou Detachment Head of the Training Section of the Command Headquarters Deputy Chief of Staff and Chief of Staff of the Guangzhou Detachment; Commander of the Zhanjiang Detachment Guangdong Provincial Corps of the Chinese People’s Armed Police Force; Colonel Commander of the Zhanjiang 59Foshan Electrical Detachment Guangdong Provincial Corps of the Chinese People’s Armed Police Force; Deputy Director of the Petition and Stability Maintenance Department and Director of the People’s Armed Forces Department at Guangdong Rising Holdings Group Co. Ltd.; and Deputy Director of the Party- Masses Department (including the CPC Publicity Department Corporate Culture Department Union Office and People’s Armed Forces Department) and Director of the People’s Armed Forces Department at Guangdong Rising Holdings Group Co. Ltd. Since April 2024 he has served as a member of the Company’s Party Committee and the Secretary of Committee for Discipline Inspection.Since May 2024 he has also served as the Chairman of the Company’s Supervisory Committee.Ms. Xi Lijia: Female born in December 1988 a member of the Communist Party of China. She holds a Master’s degree in National Economics from Nanjing University and has obtained qualifications as a Certified Public Accountant legal professional and intermediate-level accounting professional. She has previously served as a Senior Auditor in the Audit and Assurance Department at Deloitte Huayong Certified Public Accountants (Special General Partnership) Guangzhou Branch as well as in the Operations Management position in the Urban Comprehensive Development Division and the Audit position in the Risk Control Department at CCCC Urban Investment Holding Limited. Since July 2024 she has been serving as a Senior Supervisor in the Audit Department at Guangdong Rising Holdings Group Co. Ltd. He has been a Supervisor of the Company since December 2024.Mr. Zhuang Junjie: Male born in September 1985 a permanent resident of Hong Kong with a Bachelor’s degree. He previously served as a Software Consultant Manager at Accenture and is currently serving as the Director and General Manager of Prosperity Lamps & Components Limited.He has been a Supervisor of the Company since December 2015.Mr. Zhang Xiubo: Male born in November 1974 a member of the Communist Party of China with a university degree and an engineer. He joined the company in 1996. From February 2007 to September 2020 he served as Assistant to the Director of the Zhongdeng Workshop Director of the Zhongdeng Workshop Director of the Single-end Lamp Workshop Director of the Halogen Lamps Workshop and Director of the PCB Workshop. From September 2020 to May 2021 he served as the Director of the Procurement Department. From May 2021 to May 2024 he served as the Director of the Bidding Centre. From April 2024 to June 2024 he served as the Director of the Bidding Centre Party Secretary and General Manager of Gaoming Company Executive Director of FSL Chanchang Lighting Co. Ltd. and Chairman of Foshan Taimei Times Lamp Co. Ltd. Since June 2024 he has served as the Party Secretary and General Manager of Gaoming Company Executive Director of FSL Chanchang Lighting Co. Ltd. and Chairman of Foshan Taimei Times Lamp Co. Ltd. Since October 2024 he has also served as the Assistant General Manager of the Company. He has been a Supervisor of the Company since October 2024.Mr. Su Houxu: Male born in July 1991 a member of the Communist Party of China with a university degree. He previously served as a Project Specialist Deputy Manager Manager and Deputy Director of the Project Development Department at Guangdong Zhonglv (Linzhi) Tourism and Culture Investment Co. Ltd. He joined the Company in 2020 and served as the Deputy Director of the Party-Masses Department (Party Committee Office Union Office) from September 2020 to April 2022 (in charge of work). From April 2022 to October 2022 he served as the Deputy Director of the Party-Masses Department (Union Office) (in charge of work). From October 2022 to November 2024 he served as the Director of the Party-Masses Department (Union Office) and Party Branch Secretary of the Party-Masses Department while also serving as the Vice Chairman of the Company’s Trade Union and Secretary of the Youth League Committee. Since November 2024 he has served as the Director of the Party-Masses and Human Resources Department while also serving as the 60Foshan Electrical Secretary of the Company’s Youth League Committee. He has been a Supervisor of the Company since October 2024. 3. Work experience of the senior management staff Mr. Zhang Xuequan: Male born in December 1977 a member of the Communist Party of China MBA of Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the former Iodine-tungsten Lamp Workshop from October to December 1996; worked in the Technology Department and then the Quality Control Department from January 1997 to August 2002; acted as the Workshop Manager of Lamp Workshop from September 2002 to May 2008; acted as the Department Director of the Business Management Department of the Company from June 2008 to August 2016. He concurrently acted as the Office Director and the Head of the Investment Department from February 2016 to December 2018. He was the Party Branch Secretary for the Administrative Office of the Company from July 2010 to June 2017 and a member of the party committee of the Company since July 2015. He was a supervisor of the Company from May 2013 to August 2016 a Deputy General Manager of the Company from August 2016 to March 2020 an Executive Deputy General Manager of the Company from March 2020 to December 2023. He has been serving as the Deputy Secretary of the CPC Committee and General Manager of the Company since December 2023 and a Director of the Company since February 2024. He has also served as a director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) chairman and general manager of Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New Energy Technology Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan NationStar Optoelectronics Co. Ltd.Mr. Zhang Yong: Male born in June 1974 a member of the Communist Party of China and a senior engineer with a bachelor degree. He joined in the Company in July 1997. and successively acted as Deputy Director and Director of Lamp Filament Appliance Workshop from October 1999 to June 2008; acted as Factory Director of Gaoming Fluorescent Lamps Factory and Factory Director of Gaoming Branch Factory from July 2008 to December 2008; respectively acted as Department Director of Product Department OEM Department Mechanical Dynamics Department and Infrastructure Department from January 2009 to December 2012; acted as General Manager Assistant from March 2013 to August 2016. He was a supervisor and the Chairman of the Supervisory Committee of the Company from September 2013 to August 2016; served as the chairman of the Labor Union of the Company from September 2013 to May 2019; acted as the Deputy Party Secretary from July 2015 to 27 December 2021; and was a Deputy General Manager of the Company from August 2016 to January 2024. And he has been an Executive Deputy General Manager of the Company since February 2024. Appointed as a director of Foshan NationStar Optoelectronics Co.Ltd. starting from October 2024.Mr. Chen Yu: Male born in December 1972 a member of the Communist Party of China and an engineer with a bachelor’s degree. He entered the Company in 1994. And acted as workshop manager of parabolic reflector coating film energy-saving lamps factory director of the branch factory of Gaoming and workshop manager of general bulbs from January 1997 to December 2012 acted as Director of Production Department OEM Department and Mechanical Served as the head of the Production Department OEM Department and Mechanical Power Department from January 2013 to August 2013. From September 2013 to May 2014 served as the head of the Production Department and OEM Department. He has been the Deputy General Manager of the Company since May 2014.Since Starting from August 2021 he has also served as the Chairman of Nanning Liaowang Auto Lamp Co. Ltd.Ms. Zeng Xiaojing: Female born in October 1978 a member of the Communist Party of China with a university degree and a certified accountant. She has previously served as the Deputy Head of the 61Foshan Electrical Finance Section at Guangdong Petroleum Enterprise Group Yunfu City Company; Deputy Director of the Finance and Asset Department and Head of Financial Computerisation Management at Sinopec Guangdong Yunfu Petroleum Branch; Chief Accountant and Deputy Director of the Finance Department at Guangdong Yunfu Salt Industry General Company; Head of the Finance Section and Manager of the Finance Management Department at Guangdong Yunfu Salt Industry Group Co. Ltd.; Deputy General Manager (Deputy Director) Executive Director Legal Representative and Party Branch Secretary at Guangdong Yunfu Salt Industry Group Co. Ltd. (Yunfu Salt Industry Bureau); and Deputy General Manager Executive Director (Legal Representative) General Manager and Party Committee Secretary at Guangdong Zhaoqing Salt Industry Group Co. Ltd. He has been the Deputy General Manager of the Company since May 2024.Mr. Wang Ye: Male born in January 1977 with a postgraduate degree and an Executive MBA (EMBA) from China Europe International Business School (CEIBS). He has previously served as Senior Director of the South China Regional Headquarters at Orient Overseas Logistics (China) Ltd.Senior Manager at the Supply Chain Headquarters of Danone (China) Food and Beverage Co. Ltd.Deputy General Manager of Logistics Management Headquarters at Qingdao Beer Co. Ltd. Head of the Supply Chain Centre Vice President and General Manager of the E-commerce Division at Opple Lighting Co. Ltd. He has been the Deputy General Manager of the Company since September 2024.Ms. Tang Qionglan: Female born in March 1970 a member of the Communist Party of China with a bachelor’s degree and a Certified Public Accountant (CPA) in China. She has previously served as an Audit Project Manager at BDO China Guangdong Shu Lun Pan Certified Public Accountants LLP Foshan Branch Deputy Head and Head of the Finance Department at Foshan NationStar Optoelectronics Co. Ltd. as well as Chief Financial Officer Deputy General Manager and Financial Manager. She has served as the Chief Financial Officer of the Company since January 2016.Concurrently she has also served as a director of Xiamen Bank Co. Ltd. since September 2016.Mr. Huang Zhenhuan: Male born in December 1987 he holds a master’s degree in finance is a financial economist and has obtained the qualification certificate of Secretary of the Board of Directors issued by SZSE. He used to be the sponsor of Assets Department Assistant General Manager of Investment Department and General Manager of Finance Department of Guangzhou Guangyong State-owned Asset Sales Co. Ltd. General Manager of Guangzhou Guangyong Equity Investment Fund Management Co. Ltd. General Manager of Corporate Finance Department III (Industry Center) of Minsheng Bank Guangzhou Branch Investment Director of Guangdong Rising Finance Holding Co. Ltd. (GD Rising Finance) and Senior Director of Capital Operation Department of Guangdong Rising Holdings Group Co. Ltd. He has served as Secretary of the Board of Directors of the Company since May 2021.Offices held concurrently in shareholding entities: □Applicable □ Not applicable Remuneration or Shareholding Office held in the allowance from Name Start of tenure End of tenure entity shareholding entity the shareholding entity Full-time director Guangdong Rising accredited to the Hu Fengcai Holdings Group listed company by Yes Co. Ltd. capital operation department Guangdong Member of the Li Zehua Electronics Party committee Yes Information deputy general 62Foshan Electrical Remuneration or Shareholding Office held in the allowance from Name Start of tenure End of tenure entity shareholding entity the shareholding entity Industry Group manager Ltd.Guangdong Rising Senior manager of Xi Lijia Holdings Group the Audit Yes Co. Ltd. Department Prosperity Lamps Chairman of the Zhuang Jianyi & Components Yes Board Limited Prosperity Lamps Zhuang Junjie & Components Director and GM Yes Limited Offices held concurrently in other entities: □Applicable □ Not applicable Remuneration or Office held in the Name Other entity Start of tenure End of tenure allowance from entity the entity Thinkon Zhuang Jianyi Semiconductor Director Not Jinzhou Corp.Guangdong Rising Hu Fengcai Mining Group Director Yes Co. Ltd.Guangzhou Port Li Xiyuan Director Yes Group Co. Ltd.Dongguan Development Independent Li Xiyuan Yes (Holdings) Co. Director Ltd.Shenzhen Tagen Independent Li Xiyuan Yes Group Co. Ltd. Director Zhang Guangzhou Accounting Yes Renshou University Professor Jiangmen Rural Zhang Independent Commercial Bank Yes Renshou Director Company Limited Guangdong Provincial Zhang Independent Expressway Yes Renshou Director Development Co.Ltd.Thinkon Zhang Independent Semiconductor Yes Renshou Director Jinzhou Corp.China Solid State Dou Linping Vice Chairman Not Lighting Alliance Hengdian Group Independent Dou Linping Tospo Lighting Yes Director Co. Ltd.Beijing New Independent Dou Linping Yes Space Technology Director 63Foshan Electrical Remuneration or Office held in the Name Other entity Start of tenure End of tenure allowance from entity the entity Co. Ltd.Tang Xiamen Bank Director Not Qionglan Co.Ltd.Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior management as well as those who left in the Reporting Period: □Applicable □Not applicable 3. Remuneration of Directors Supervisors and Senior Management Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior management: The Remuneration & Appraisal Committee under the Board of Directors decided the 2023 remunerations for the leadership in accordance with the Measures for Managing the Remuneration of the Leadership Team Members the particulars on completing current main financial indexes & operating goals as well as the fulfillment of job responsibilities by them before submitting the remuneration plan to the Board of Directors for approval.Remuneration of directors supervisors and senior management for the Reporting Period Unit: RMB’0000 Total before- Any tax Incumbent/ remuneration Name Gender Age Office title remuneration Former from related from the party Company Wan Shan Male 55 Chairman of the Board Incumbent 82.88 Not Zhuang Vice Chairman of the Male 73 Incumbent 0 Yes Jianyi Board Zhang Male 47 Director Incumbent 264.13 Not Xuequan Chen Mingjie Male 41 Director Incumbent 141.27 Not Hu Fengcai Male 59 Director Incumbent 0 Yes Li Zehua Male 39 Director Incumbent 0 Yes Li Xiyuan Male 64 Independent Director Incumbent 18 Yes Zhang Male 59 Independent Director Incumbent 18 Not Renshou Dou Linping Male 65 Independent Director Incumbent 18 Not Chairman of the Chen Xinjie Male 51 Incumbent 60.48 Not Supervisory Committee Xi Lijia Female 36 Supervisor Incumbent 0 Yes Zhuang Male 39 Supervisor Incumbent 0 Yes Junjie Zhang Xiubo Male 50 Supervisor Incumbent 50.59 Not Su Houxu Male 33 Supervisor Incumbent 43.25 Not Executive Deputy General Zhang Yong Male 50 Incumbent 253.47 Not Manager Chen Yu Male 52 Deputy General Manager Incumbent 244.81 Not Zeng Female 46 Deputy General Manager Incumbent 52.44 Not Xiaojing Wang Ye Male 48 Deputy General Manager Incumbent 62.01 Not 64Foshan Electrical Total before- Any tax Incumbent/ remuneration Name Gender Age Office title remuneration Former from related from the party Company Tang Female 54 Chief Financial Officer Incumbent 253.51 Not Qionglan Huang Secretary of the Board of Male 37 Incumbent 76.83 Not Zhenhuan Directors Wu Shenghui Male 54 Chairman of the Board Former 205.58 Yes Huang Male 55 Deputy General Manager Former 0 Yes Zhiyong Chairman of the Li Jingwei Male 48 Former 200.4 Yes Supervisory Committee Li Yizhi Male 37 Supervisor Former 3.31 Yes Ye Male 51 Supervisor Former 56.78 Not Zhenghong Lin Qing Male 55 Supervisor Former 42.74 Not Wei Bin Male 55 Deputy General Manager Former 150.67 Not Total -- -- -- -- 2299.15 -- Other information: □Applicable □ Not applicable Due to the failure to complete the leadership’s 2024 annual salary assessment during the Reporting Period the pre-tax remuneration received by the Company’s directors supervisors and senior management for the year 2024 includes the performance-based salary from 2023 that was not paid as well as the vested incentive salary for the period from 2020 to 2023. It does not include the performance-based salary for 2024 that has not yet been assessed and settled.Due to the the failure to complete the leadership team’s 2024.VI Performance of Duty by Directors in the Reporting Period 1. Board of Directors Meetings Convened during the Reporting Period Meeting Convened date Disclosure date Resolutions of the meeting The 51st Meeting of the Announcement on Resolutions of the 51st 16 January 2024 17 January 2024 9th Board of Directors Meeting of the 9th Board of Directors The 52nd Meeting of the Announcement on Resolutions of the 52nd 5 February 2024 6 February 2024 9th Board of Directors Meeting of the 9th Board of Directors The 53rd Meeting of the Announcement on Resolutions of the 53rd 26 February 2024 27 February 2024 9th Board of Directors Meeting of the 9th Board of Directors The 54th Meeting of the Announcement on Resolutions of the 54th 17 April 2024 19 April 2024 9th Board of Directors Meeting of the 9th Board of Directors The 55th Meeting of the Announcement on Resolutions of the 55th 29 April 2024 30 April 2024 9th Board of Directors Meeting of the 9th Board of Directors The 56th Meeting of the Announcement on Resolutions of the 56th 14 May 2024 15 May 2024 9th Board of Directors Meeting of the 9th Board of Directors The 57th Meeting of the Announcement on Resolutions of the 57th 18 June 2024 20 June 2024 9th Board of Directors Meeting of the 9th Board of Directors The 58th Meeting of the Announcement on Resolutions of the 58th 30 August 2024 31 August 2024 9th Board of Directors Meeting of the 9th Board of Directors The 59th Meeting of the 27 September 28 September Announcement on Resolutions of the 59th 9th Board of Directors 2024 2024 Meeting of the 9th Board of Directors 1st Meeting of the 10th 10 October 2024 11 October 2024 Resolution of the First Meeting of the 10th 65Foshan Electrical Meeting Convened date Disclosure date Resolutions of the meeting Board of Directors Board of Directors 2nd Meeting of the 10th Resolution of the Second Meeting of the 28 October 2024 29 October 2024 Board of Directors 10th Board of Directors 3rd Meeting of the 10th 29 November 30 November Resolution of the Third Meeting of the 10th Board of Directors 2024 2024 Board of Directors 4th Meeting of the 10th 16 December 17 December Resolutions of the 4th Meeting of the 10th Board of Directors 2024 2024 Board of Directors 2. Directors’ Attendance at the Board of Directors and Shareholders’ Meeting Directors’ attendance at the Board of Directors and Shareholders’ Meeting Number of Whether or attendance Number not attending Number of Number of Number of in Board of of Board of on-site telecommunication attendance General Directors absence Directors in Director attendance -based attendance in Board of meetings required from person for in Board of in Board of Directors attended during the Board of two Directors Directors by proxy Reporting Directors consecutive Period times Wan Shan 11 6 5 0 0 Not 3 Zhuang 13 3 10 0 0 Not 4 Jianyi Zhang 11 6 5 0 0 Not 3 Xuequan Chen 11 3 8 0 0 Not 3 Mingjie Hu Fengcai 13 5 8 0 0 Not 4 Li Zehua 8 3 5 0 0 Not 2 Li Xiyuan 13 4 9 0 0 Not 4 Zhang 13 4 9 0 0 Not 4 Renshou Dou 13 6 7 0 0 Not 4 Linping Explanation for not attending two consecutive Board of Directors meetings in person: Not applicable. 3. Objections Raised by Directors on Matters of the Company Indicate by tick mark whether any directors raised any objections on any matter of the Company.□Yes □No No such cases in the Reporting Period. 4. Other Information about the Performance of Duty by Directors Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □ No Suggestions from directors adopted or not adopted by the Company: During the Reporting Period the directors of the Company worked to fulfill their functions and duties actively attended Board of Directors meetings and Shareholders’ General Meetings offered advices and suggestions and performed their rights functions duties and obligations as defined in the Company Law the Securities Law and the Articles of Association. They fulfilled their role as a 66Foshan Electrical director upheld the legitimate rights and interests of the Company and its shareholders promoted further improvement in corporate governance and effectively facilitated regulatory compliance of the Company’s operation. During the Reporting Period the directors of the Company actively performed their functions and duties made full use of their professional knowledge worked diligently to fulfill their duties and offered many invaluable advices and suggestions on the Company’s management decision-making and major matters based on their in-depth understanding of the Company’s operations. They played their due role in improving the Company’s supervision mechanism promoting improvement in the Company’s risk control capacity and upholding the legitimate rights and interests of the Company and its shareholders.VII Performance of Duty by Specialized Committees under the Board of Directors in the Reporting Period Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice Wan Shan Review: 1.Zhuang Proposal on Jianyi FSL’s 14th Five- Zhang 17 April Year Approved Xuequan 2024 Development Chen Strategy Plan Mingjie (Revised) Li Xiyuan Review: 1.The Strategy Proposal on the Committee of Investment by a the 9th Board Wan Shan Controlling of Directors Zhuang Subsidiary to Jianyi Establish a 24 Zhang Wholly-owned September Approved Xuequan Subsidiary and 2024 Chen Invest in the Mingjie Automotive Li Xiyuan Lighting Production Construction Project.Review: 1.Proposal on the Nomination of Li Xiyuan Candidates for Zhang Non-independent 31 January Renshou Directors; 2. Approved 2024 and Dou Proposal on the The Linping Nomination of the Nomination Company’s Committee of 6 Executive Deputy the 9th Board General Manager.of Directors Review: 1.Li Xiyuan Proposal on the Zhang 26 Nomination of the Renshou February Approved Chairman of the and Dou 2024 9th Board of Linping Directors.Zhang 10 April Review: 1. Approved 67Foshan Electrical Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice Xuequan 2024 Proposal on the Chen Nomination of Mingjie Non-independent Li Xiyuan Directors for the Zhang 9th Board of Renshou Directors Dou Linping Zhang Xuequan Review: 1.Chen Proposal on the Mingjie 10 May Nomination of the Li Xiyuan Approved 2024 Company’s Zhang Deputy General Renshou Manager.Dou Linping Review:1.Proposal on the Nomination of Candidates for Non-independent Directors of the 10th Board of Directors; 2.Proposal on the Nomination of Zhang Candidates for Xuequan Independent Chen Directors of the Mingjie 22 August 10th Board of Li Xiyuan Approved 2024 Directors; 3. Zhang Proposal on the Renshou Nomination of Dou Candidates for Linping Chairman and Vice Chairman of the 10th Board of Directors; 4.Proposal on the Nomination of Senior Management Personnel of the Company.Zhang Xuequan Review: 1.Chen Proposal on the Mingjie 30 August Nomination of the Li Xiyuan Approved 2024 Company’s Zhang Deputy General Renshou Manager.Dou Linping 68Foshan Electrical Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice Zhang Renshou Review: 1.Hu Proposal on the Fengcai 4 February Company’s 2023 Huang Approved 2024 Annual Financial Zhiyong Report and Audit Li Xiyuan Arrangements.and Dou Linping Review: 1. Report on the 2023 financial audit and internal control audit situation; 2. 2023 annual financial settlement report; 3. 2024 annual financial budget report; 4.Proposal on the provision for asset impairment and write-off of The Audit and assets; 5. Special Risk report on the Management storage and use of 4 Committee of Zhang raised funds in the 9th Board Renshou 2023; 6. Report of Directors Hu on the Board of 10 April Fengcai Directors’ Audit Approved 2024 Li Xiyuan and Risk Dou Management Linping Committee’s supervision of the accounting firm’s duties; 7.Evaluation report on the performance of the accounting firm; 8. 2023 annual internal control evaluation report; 9. 2023 work report and 2024 work plan of the Audit Department; 10. 2023 compliance and risk work report.Zhang 26 April Review: 1. Report Approved Renshou 2024 on the First- 69Foshan Electrical Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice Hu quarter Results of Fengcai 2024; 2. Proposal Li Xiyuan on Conducting Dou Foreign Exchange Linping Hedging Business; 3.Feasibility Analysis Report on Conducting Foreign Exchange Hedging Business; 4.Special Report on the Storage and Actual Use of Raised Funds in the Q1 2024; 5.Audit Work Summary for the Q1 2024.Review: 1. 2024 Half-Year Report and Summary; 2.Proposal on the Provision for Impairment for the First Half of 2024; 3. Proposal on Changes in Zhang Accounting Renshou Policies; 4.Hu Special Report on Fengcai 22 August the Storage and Approved Li Zehua 2024 Actual Use of Li Xiyuan Raised Funds in Dou the First Half of Linping 2024; 5. Audit Department’s Work Summary for the First Half of 2024; 6.Proposal on the Appointment of the Company’s Chief Financial Officer.The Audit Zhang Review: 1. 2024 Compliance Renshou Q3 Report; 2.and Risk Hu Proposal on 25 Management Fengcai Changes in 1 October Approved Committee of Li Zehua Accounting 2024 the 10th Li Xiyuan Policies; 3.Board of Dou Proposal on the Directors Linping Re-appointment 70Foshan Electrical Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice of the Accounting Firm for 2024; 4.Audit Department’s Work Summary for the First Three Quarters of 2024.Review: 1.Proposal on the Performance Indicators for the Company’s Leadership for 2024 and the New Term; 2. Proposal Zhang on Revising the Renshou Company Hu Leadership Fengcai 22 August Compensation Approved Li Zehua 2024 Management Li Xiyuan Measures; 3.Dou Proposal on The Linping Formulating the Remuneration Implementation and Appraisal 2 Measures for the Committee of Term and the 9th Board Contract-based of Directors Management of Company Leadership.Review: 1.Proposal on the Zhang Individual Renshou Performance Hu Assessment and Fengcai 30 August Result Approved Li Zehua 2024 Application Plan Li Xiyuan for the Dou Professional Linping Manager (Deputy General Manager).Zhang Renshou Review: 1.Hu Proposal on the The 25 Fengcai Termination of Remuneration November Approved Li Zehua the 2023 and Appraisal 2024 Li Xiyuan Restricted Stock Committee of 2 Dou Incentive Plan.the 10th Linping Board of Zhang Review: 1.Directors 12 Renshou Proposal on the December Approved Hu Implementation 2024 Fengcai Plan for the 71Foshan Electrical Opinion Meetings Convened Contents Other Objection Committee Members and convened date reviewed activities (if any) advice Li Zehua Performance Li Xiyuan Assessment and Dou Compensation Linping Disbursement for the Company’s Leadership for 2023 and Their Term.VIII Performance of Duty by the Supervisory Committee Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.□Yes □No The Supervisory Committee raised no objections in the Reporting Period.IX Employees 1. Number Functions and Educational Backgrounds of Employees Number of in-service employees of the Company at the 3795 period-end Number of in-service employees of main subsidiaries 8406 at the period-end Total number of in-service employees at the period-end 12201 Total number of employees with remuneration in this 12201 Reporting Period Number of retirees to whom the Company or its main 244 subsidiaries need to pay retirement pension Functions Function Number of employees Production 8273 Sales 792 Technical 2060 Financial 143 Administrative 933 Total 12201 Educational backgrounds Educational background Number of employees Junior college and below 9553 Bachelor’s degree 2381 Master’s degree 250 Doctoral degree and above 17 Total 12201 2. Employee Remuneration PolicyAdhering to the principle of “giving priority to efficiency giving consideration to fairness creatingand sharing together” the Company takes value creation as the guide constructs four sets of salary systems of management R&D sales and production determines salary grades according to different positions and their characteristics and inclines salary distribution to core talents and key positions so as to maximize the enthusiasm of employees. 72Foshan Electrical 3. Employee Training Plans The Company focuses on talent development and employee career growth establishing a training mechanism that replaces training with practical experience and combines practical experience with training. In line with the Company’s development needs a comprehensive training plan has been developed incorporating both offline and online learning platforms. The Company has launched an Entrepreneur Leadership Training Camp offering training on performance appraisal the application of OKRs sales triad strategies and more. Additionally middle management is encouraged to visit Huawei for learning experiences driving the upgrading of talent awareness breaking through mental barriers and enhancing capabilities. 4. Labor Outsourcing □Applicable □Not applicable X Profit Distributions to Shareholders (in the Form of Cash and/or Stock) How the profit distribution policy especially the cash dividend policy for ordinary shareholders was formulated executed or revised in the Reporting Period: □Applicable □ Not applicable According to the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice on Further Implementing Regulations Related to Dividend Distribution of Listed Companies (Guang- Dong-Zheng-Jian [2012] No. 91) in order to further standardize the dividend mechanism promote a scientific sustained and stable dividend mechanism and protect legal rights and interests of investors in 2012 the Company convened a general meeting to revise the dividend-related contents in its Articles of Association and specify the dividend conditions the lowest dividend ratio the decision- making procedure etc.. Meanwhile it formulated the Management Rules for Profit Distribution and the Return for Shareholder Plan for the Coming Three Years (2024-2026) specifying the arrangements and forms of dividends the cash dividend planning and the distribution intervals which further improved the decision-making and supervision procedures for dividend distribution.According to the Company’s Articles of Association the profit distributed in cash shall not be less than 30% of the distributable profit achieved in the year.Special statement about the cash dividend policy In compliance with the Company’s Articles of Yes Association and resolution of general meeting Specific and clear dividend standard and ratio Yes Complete decision-making procedure and mechanism Yes Independent directors faithfully performed their duties Yes and played their due role If the Company has no dividend plan it should disclose the specific reasons and the next steps it intends to take N/A to enhance investor returns Non-controlling interests are able to fully express their opinion and desire and their legal rights and interests Yes are fully protected In case of adjusting or changing the cash dividend policy the conditions and procedures involved are in N/A compliance with applicable regulations and transparent Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the Company has made profits in the Reporting Period and the 73Foshan Electrical profits of the Company as the parent distributable to shareholders are positive.□Applicable □Not applicable Final dividend plan for the Reporting Period: □Applicable □ Not applicable Bonus shares for every ten shares (share) 0 Dividend for every ten shares (RMB) (tax inclusive) 1.2 Total shares as the basis for the profit distribution 1535778230 proposal (share) Cash dividends (RMB) (tax inclusive) 184293387.60 Cash dividends in other forms (such as share 0.00 repurchase) (RMB) Total cash dividends (including those in other forms) 184293387.60 (RMB) Distributable profit (RMB) 3019769843.45 Total cash dividends (including those in other forms) 100% as % of total profit distribution Cash dividend policy Where it is difficult to determine the development stage of the Company but it has plans for considerable spending in profit distribution cash dividends shall reach at least 20% in the total profit to be distributed.Details about the proposal for profit distribution and converting capital reserve into share capital According to the audit by WUYIGE Certified Public Accountants LLP (Special General Partnership) the parent company achieved a net profit after tax of RMB 421528439.06 for the year 2024. Adding the undistributed profit at the beginning of the year (RMB 2824687635.90) subtracting the profit distribution amount for 2023 (RMB 184293387.60) and deducting the reserve for surplus (RMB 42152843.91) the profit available for distribution to shareholders at the end of 2024 is RMB 3019769843.45. The Board of Directors proposed the profit distribution plan for 2024 as follows: Based on the total share capital of 1535778230 shares as disclosed in the Company’s 2024 annual report a cash dividend of RMB 1.2 (including tax) will be distributed for every ten shares to all shareholders and 0 bonus shares (including tax) will be issued. There will be no capitalisation of reserves to increase share capital. Where any change occurs to the total shares entitled to the final dividend due to any share repurchases equity incentive grants etc. when the final dividend plan is implemented the dividend per share shall remain the same while the total payout amount shall be adjusted accordingly.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for Employees □Applicable □ Not applicable 1. Equity Incentives On 12 June 2023 the 2023 Restricted Share Incentive Plan (Draft) together with other relevant proposals were approved at the 44th Meeting of the 9th Board of Directors and the 22nd Meeting of the 9th Supervisory Committee. As such the Company intended to grant no more than 13 million restricted shares to 262 awardees. To be specific there were 11.7 million shares for the first grant accounting for 90.00% of the total grant under the incentive plan; and there were 1.3 million reserved shares accounting for 10.00% of the total grant under the incentive plan. The restricted shares were A-stock ordinary shares repurchased by the Company. And the grant price for the first grant was RMB3.81/share. For details please see the 2023 Restricted Stock Incentive Plan (Draft) and other related announcements disclosed by the Company on http://www.cninfo.com.cn on 13 June 2023.On 29 November 2024 the Company held the 3rd meeting of the 10th Board of Directors and the 3rd meeting of the 10th Supervisory Committee. During the meetings the Proposal on the Termination of the 2023 Restricted Stock Incentive Plan was reviewed and approved. Given that the shares repurchased by the Company for the 2023 Restricted Stock Incentive Plan are about to expire and 74Foshan Electrical the decision-making and approval process for this incentive plan has not been completed the Company has decided to terminate the implementation of the 2023 Restricted Stock Incentive Plan.For detailed information please refer to the Announcement on the Termination of the 2023 Restricted Stock Incentive Plan and other relevant announcements disclosed by the Company on 30 November 2024 on http://www.cninfo.com.cn. Equity incentives received by directors and senior management: □Applicable □Not applicable Appraisal mechanism and incentives for senior management: None. 2. Implementation of Employee Stock Ownership Plans □Applicable □Not applicable 3. Other Incentive Measures for Employees □Applicable □Not applicable XII Formulation and Implementation of Internal Control System during the Reporting Period 1. Internal Control Formulation and Implementation During the Reporting Period the Company in accordance with the Basic Standards for Internal Control and its supporting guidelines as well as the actual situation further revised and improved the relevant internal control systems and established a relatively effective internal control system so as to effectively prevent and discover risks in the process of operation and management in time and provide guarantee for the legal compliance and asset safety of operation and management. The Company’s Board of Directors has established an Audit Compliance and Risk Management Committee responsible for supervising reviewing and communicating the Company’s internal and external audits internal control system reviews risk management and compliance management. The internal audit department of the Company is responsible for the internal audit supervision of the Company including supervising and inspecting the implementation of the internal control system of the Company regularly or irregularly conducting routine audits or special audits on finance internal control major projects and their businesses and putting forward suggestions for improving internal control to control and prevent risks. If the audit department finds major defects in internal control in the process of supervision and inspection it has the right to report directly to the Audit Compliance and Risk Management Committee of the Board of Directors and the Supervisory Committee.According to the identification of major defects in the Company’s internal control there were no major defects in the internal control of financial reports and non-financial reports in 2024. 2. Material Internal Control Weaknesses Identified for the Reporting Period □Yes □No XIII Management and Control of Subsidiaries by the Company during the Reporting Period Problems Integration Solutions Settlement Follow-up Name Integration plan encountered in progress taken progress settlement plan integration Zhejiang Hule Firstly Hule Through Electrical Electrical systematic None None None None Equipment Equipment resource Manufacturing empowered integration and 75Foshan Electrical Co. Ltd. channel resources process by leveraging reengineering FSL’s mature the collaborative channel network effects between and industrial the two parties customer have begun to resources in the emerge. The next lighting field to step will focus on accelerate Hule advancing the Electrical implementation Equipment’s of shipbuilding customer customer expansion in the development military and naval projects laying a sectors. Secondly solid foundation it deepened for achieving the technological annual collaboration by performance integrating FSL’s targets.R&D expertise in electrical control and automation to strengthen the technological barriers for Hule Electrical Equipment’s intelligent ship lighting products.Thirdly it introduced FSL’s lean production management system to drive cost reduction and efficiency improvement across the entire value chain of Hule Electrical Equipment.XIV Evaluation Report or Independent Auditor’s Report on Internal Control 1. Internal Control Evaluation Report Disclosure date of the internal 25 April 2025 control evaluation report Index to the disclosed internal See http://www.cninfo.com.cn for the Internal Control Evaluation Report control evaluation report 2024 Evaluated entities’ combined assets 100.00% as % of consolidated total assets Evaluated entities’ combined operating revenue as % of 100.00% consolidated operating revenue Identification standards for internal control weaknesses Category Weaknesses in internal control Weaknesses in internal control not 76Foshan Electrical over financial reporting related to financial reporting A defect should be considered a significant deficiency if it meets any of the following characteristics: 1. It has been penalised for serious violations of national laws administrative regulations and normative documents; 2. Due to asevere lack of the “Three Key Areasand Major Decisions” decision- making procedure resulting in undemocratic decision-making A defect with any of the following processes which caused serious characteristics should be considered decision-making errors and a significant defect: 1. The defect significant economic losses for the involves fraud by directors Company; 3. The negative impact supervisors or senior management; caused by illegal or non-compliant 2. The control environment is behavior is widespread widely ineffective; 3. The registered public attracts public attention and causes accountant identifies a material irreparable damage to the misstatement in the financial Company’s reputation; 4. Important statements for the period and business operations in the internal control failed to detect the Company’s production and misstatement during its operation; management lack policy controls or 4. The Audit Committee and policy system failure; 5. The internal audit function’s oversight internal control evaluation result is of internal control is ineffective. a significant deficiency and A deficiency should be considered effective remediation has not been an important deficiency if it meets completed within twelve months.Nature standard any of the following conditions: 1. Defects with the following An identified significant deficiency characteristics should be recognised has not been corrected within a as important defects: 1. Owing to reasonable period; 2. Restatement partly lack of the decision-making of previously published financial process on significant events and statements; 3. The internal audit the undemocratic decision-making function is ineffective; 4. The process which caused the decision- control over the selection and making mistake that led the application of accounting policies Company face with certain in accordance with generally economic losses; 2. The negative accepted accounting principles is influences owning to the unlawful ineffective. acts and the irregularities h involve A defect should be considered a with wide range and cause public general deficiency if it is a control concern among the partial regions deficiency other than the significant which bring certain harms to the deficiencies and important reputation of the Company; 3. The deficiencies mentioned above. system of the major business involved with the production and operating of the Company is incomplete or partially invalid; 4.Tthe results of the internal control assessment turn out to include any serious defects and such defects fail to be rectified effectively within 6 months.A defect should be considered a general deficiency if it meets any of the following characteristics: 1. 77Foshan Electrical Due to the incompleteimplementation of the “Three KeyAreas and Major Decisions” decision-making procedure resulting in undemocratic decision- making processes and decision- making errors causing the Company to suffer relatively small economic losses; 2. The negative impact caused by non-compliant behaviour affects certain regions and attracts limited public attention causing minor damage to the Company’s reputation; 3. The general business policies related to the Company’s production and operations are incomplete or partially ineffective; 4. The remediation of general deficiencies has not been completed within six months.Based on the data of the 2023 According to the quantitative consolidated statements the criterion of the internal control quantitative criterion of confirming defects of the financial report the the important degree of the quantitative criterion of the internal misstatement (including the false control defects assessment of the negatives) from of the consolidated non-financial report confirmed by statements of the listed companies the Company is as follows: Serious Quantitative standard is as follows: Serious defect: defect: Misstatement ≥ 1.0% of the Misstatement ≥ 1.0% of the total total assets amount; important assets amount; important defects: defects: 0.5% of the total assets 0.5% of the total assets amount ≤ amount ≤ misstatement ＜1.0% of misstatement ＜ 1.0% of the total the total assets amount; common assets amount; common defects: defects: Misstatement ＜ 0.5% of Misstatement ＜ 0.5% of the total the total assets amount.assets amount.Number of material weaknesses in internal control over financial 0 reporting Number of material weaknesses in internal control not related to 0 financial reporting Number of serious weaknesses in internal control over financial 0 reporting Number of serious weaknesses in internal control not related to 0 financial reporting 2. Independent Auditor’s Report on Internal Control □Applicable □ Not applicable Opinion paragraph in the independent auditor’s report on internal control WUYIGE Certified Public Accountants LLP considered that: Foshan Electrical and Lighting Co. Ltd.maintained effective internal control of the financial report in all significant aspects according to the Basic Standards for Internal Control and relevant regulations. 78Foshan Electrical Independent auditor’s report on internal control Disclosed disclosed or not Disclosure date 25 April 2025 See http://www.cninfo.com.cn for the Auditor’s Report Index to such report disclosed on Internal Control Type of the auditor’s opinion Unmodified unqualified opinion Material weaknesses in internal control not related to Not financial reporting Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.□Yes □No Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal control self-evaluation report issued by the Company’s Board of Directors.□Yes □ No XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed Company Governance None. 79Foshan Electrical Part V Environmental and Social Responsibility I. Major Environmental Issues Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authorities.□Yes □ No Environmental policies and standards: During production and operations the Company conscientiously implemented guidelines and policies for environmental protection at all levels and strictly observed relevant laws and regulations for environmental protection such as the Law of the People’s Republic of China on Environmental Protection the Law of the People’s Republic of China on Prevention and Control of Air Pollution the Law of the People’s Republic of China on Prevention and Control of Water Pollution the Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste and the Law of the People’s Republic of China on Prevention and Control of Noise Pollution.Meanwhile it has put in place facilities for pollution prevention and control and ensures the stable operation of facilities. Additionally the Company regularly commissions third parties to carry out monitoring work in accordance with the requirements of the Environmental Monitoring Management Measures to ensure that all pollutants are discharged in accordance with the standards.Environment-related administrative permits: Name of the Administrative Date of Effective Company or its Permit No.permit granted grant period subsidiary Pollutant Discharge Foshan Electrical and Registration for 17 March 91440000190352575W001W Five years Lighting Co. Ltd. Stationary Source of 2020 Pollutant Foshan Electrical and Pollutant Discharge Lighting Co. Ltd. 91440600784850061B001U 1 June 2023 Five years Permit Gaoming Branch 17 Foshan Taimei Times Pollutant Discharge 91440600782035581D001Q November Five years Lamp Co. Ltd. Permit 2022 Pollutant Discharge FSL Chanchang Registration for 18 March 91440600779203775W Five years Lighting Co. Ltd. Stationary Source of 2020 Pollutant Pollutant Discharge FSL Zhida Electric Registration for 1 September Technology Co. Ltd. 91440605MA4UWNPY98001W Five years Stationary Source of 2021 (FSL Zhida) Pollutant Foshan Haolaite Registration of Fixed 14 January 91440604MA552Q66XM001W Five years Lighting Co. Ltd. Pollution Sources 2021 Foshan Electrical and Pollutant Discharge Lighting Co. Ltd. Registration for 20 August 914406005666224665001Y Five years Gaoming Lamp Stationary Source of 2021 Branch Pollutant Nanning Liaowang Pollutant Discharge 17 March 914501001983431121001Y Five years Auto Lamp Co. Ltd. Registration for 2020 80Foshan Electrical Name of the Administrative Date of Effective Company or its Permit No.permit granted grant period subsidiary Stationary Source of Pollutant Liuzhou Guige Pollutant Discharge Lighting Technology 914502000836092085001V 18 July 2023 Five years Permit Co. Ltd.Chongqing Guinuo 25 Pollutant Discharge Lighting Technology 91500000305128048Y001Q September Five years Permit Co. Ltd. 2022 Pollutant Discharge Qingdao Guige Registration for 29 October Lighting Technology 913702820530892807001W Five years Stationary Source of 2021 Co. Ltd.Pollutant Zhejiang Hule Pollutant Discharge Electrical Equipment Registration for 6 August 91330402796491756K001W Five years Manufacturing Co. Stationary Source of 2020 Ltd. Pollutant Foshan NationStar Pollutant Discharge 24 June Optoelectronics Co. 914406001935264036001X Five years Permit 2024 Ltd.Foshan NationStar Pollutant Discharge 12 January Semiconductor 91440600570160743B001Q Five years Permit 2024 Technology Co. Ltd.Discharge standards and pollutants discharged in production and operating activities: Type of Name of Discharge Total Name of the major and major and Outlet Outlet Pollutant Total Discharge concentrat actual Excessive company or its characteris characteris quantit distributi discharge discharge method ion discharg discharge subsidiary tic tic y on standards approved /intensity e pollutants pollutants Emission Standards Foshan Discharge for Air Electrical and Exhaust d in an In the SO2: 280 Pollutants SO2: 40.597 Lighting Co. SO2 1 0.67 None gas organized plant mg/m3 in Glass t/y Ltd. Gaoming manner Industry Branch (DB44/21 59-2019) Emission Standards Foshan Discharge for Air Electrical and Oxynitride Exhaust d in an In the Pollutants Oxynitride: Lighting Co. Oxynitride 1 : 24.254 None gas organized plant 3 in Glass 149.839 t/y Ltd. Gaoming 550mg/m manner Industry Branch (DB44/21 59-2019) Xylene Integrated SO2 Discharge Emission Liuzhou Guige nitrogen Discharge d upon Standards Lighting Exhaust oxide d in an In the 1 reaching of Air / / None Technology gas benzene organized plant applicable Pollutants Co. Ltd. toluene manner standards (GB16297 particulate -1996) matter 81Foshan Electrical Type of Name of Discharge Total Name of the major and major and Outlet Outlet Pollutant Total Discharge concentrat actual Excessive company or its characteris characteris quantit distributi discharge discharge method ion discharg discharge subsidiary tic tic y on standards approved /intensity e pollutants pollutants volatile organic matter Integrated Discharge Emission Liuzhou Guige Volatile Discharge d upon Standards Lighting Exhaust organic d in an un- In the 2 reaching of Air / / None Technology gas compound organized plant applicable Pollutants Co. Ltd. s manner standards (GB16297 -1996) COD: Zhejiang Hule Discharge Wastewa COD: 846 0.046t/a COD: 0.587 Electrical COD and d by Wastewat ter mg/L GB18918- Ammoni t/a Equipment ammonia standards 1 None er treatmen Ammonia: 2002 a: Ammonia: Manufacturing nitrogen after t station 31 mg/L 0.00051t 0.005 t/a Co. Ltd. treatment /a Sulfur dioxide (SO? ): 29.4 Sulfur Sulfur Sulfur mg/Nm3 dioxide: dioxide: Zhejiang Hule Discharge dioxide Nitrogen 0.004 t/a 0.004 t/a Electrical d by Exhaust nitrogen Roof of a oxides (GB17820 NOx: NOx: 0.021 Equipment standards 1 None gas oxides building (NOx): -2012) 0.021 t/a t/a Manufacturing after total 137.3119 Total Total Co. Ltd. treatment VOCs mg/Nm3 VOCs: VOCs: Total 0.046 t/a 0.587 t/a VOCs: 458.9 mg/m3 Zhejiang Hule Discharge Daytime: Electrical d upon 93.8 GB12348- Equipment Noise Noise reaching / / dB(A) / / None 2008 Manufacturing applicable Nighttime: Co. Ltd. standards dB(A) Stricter COD: Discharge limits COD:0.0 Foshan Wastewa 14.67 COD: COD and d by under 0069t/a NationStar Wastewat ter mg/L 24.32t/a ammonia standards 1 GB39731- Ammoni None Optoelectronics er treatmen Ammonia: Ammonia: nitrogen after 2020 and a:0.0029 Co. Ltd. t station 0.152 3.65t/a treatment DB44/26- t/a mg/L 2001 Total Roof of Total VOCs East and VOCs: Total non- West 0.25mg/m VOCs: Discharge Foshan methane Towers 3; non- DB44/23- 0.2068 d by NationStar Exhaust hydrocarb South methane 67-2022- t/a; non- standards 3 / None Optoelectronics gas ons Area hydrocarb DB44/27- methane after Co. Ltd. (NMHCs) Roof of ons: 2001 hydrocar treatment and Tower 2.063mg/ bons: particulate A North m3; 1.6725 t matter Area particulate 82Foshan Electrical Type of Name of Discharge Total Name of the major and major and Outlet Outlet Pollutant Total Discharge concentrat actual Excessive company or its characteris characteris quantit distributi discharge discharge method ion discharg discharge subsidiary tic tic y on standards approved /intensity e pollutants pollutants matter: <20mg/m3 (measured concentrat ion below the detection limit or minimum detection concentrat ion) Daytime Discharge Foshan 58 d upon NationStar Nighttime GB12348- Noise Noise reaching / / / / None Optoelectronics 48 2008 applicable Co. Ltd. Unit: standards dB(A) COD: Foshan Discharge COD: 34.9 4.17883 Wastewa COD: NationStar COD and d by mg/L 6 t/a Wastewat ter DB44/26- 9.771t/a Semiconductor ammonia standards 1 Ammonia: Ammoni None er treatmen 2001 Ammonia: Technology nitrogen after 2.287 a: t station 1.221 t/a Co. Ltd. treatment mg/L 0.27326 6 t/a GB14554- Foshan Discharge Total 93DB44/2 total NationStar d by Exhaust Total Roof of a VOCs: 7- VOCs: total VOCs: Semiconductor standards 7 None gas VOCs building 4.965 2001DB4 1.2782 6.757 t/a Technology after mg/m3 4/2367- t/a Co. Ltd. treatment 2022 Foshan Discharge Daytime NationStar d upon 57 GB12348- Semiconductor Noise Noise reaching / / Nighttime / / None 2008 Technology applicable 47 Unit: Co. Ltd. standards dB(A) Pollutant treatment: Emission and treatment of the Company’s main pollutants: (1) Exhaust gas: FSL: The flue gas of glass kilns and the high-temperature melting of glass raw materials generated air pollutants such as sulphur dioxide nitric oxide and smoke during the manufacturing of semi- products such as glass bulb shells and lamp tubes. Such flue gas was treated with semi-dry desulfurization electric precipitation and SCR denitration. Upon treatment the standard limits for glass kilns in the Emission Standards for Air Pollutants in Glass Industry (DB44/2159-2019): Table 1 Emission Limits of Air Pollutants were met. Liaowang Auto Lamp: Exhaust gases like volatile organic compounds (VOCs) were mainly generated during the manufacturing of auto luminary which were treated through Regenerative 83Foshan Electrical Thermal Oxidizer (RTO) catalytic combustion and UV activated carbon adsorption. Upon treatment the discharge limits and requirements stipulated in Comprehensive Discharge Standards for Air Pollution (GB16297-1996) were met.Hule Electric Equipment: The main types of exhaust gases produced by the Company include dust exhaust tin soldering exhaust and organic exhaust. The dust exhaust (PM10) from the spraying area is discharged through a filter cartridge at high altitude while the cutting exhaust is discharged at high altitude through a spray tower. The polishing exhaust is discharged in an unorganized manner through a filter cartridge and the welding fumes are discharged in an unorganized manner. The wave soldering and reflow soldering of two chip mounters generate exhaust gases containing tin and its compounds which are discharged at high altitudes. The organic exhaust is separated in the flue into two sections: drying and curing. A burner is used for heating and during the surface treatment process the flue uses natural gas to heat and dry the metal parts. The parts then enter the powder coating chamber and subsequently return to the flue for curing. The drying water vapour and combustion exhaust gases from natural gas including SO? and NOx are discharged at high altitudes through the same pipeline. The curing exhaust gases including TVOCs are treated by activated carbon adsorption before being released at high altitudes. The emissions of powder coating dust and curing exhaust from the powder coating process meet the relevant standard limits of Zhejiang provincial local standard Air Pollutant Emission Standards for Industrial Coating Processes (DB33/2146-2018).The emissions from natural gas combustion meet the special emission limit requirements in Table 3 of the Emission Standards for Air Pollutants from Boilers (GB13271-2014).NationStar Optoelectronics: During the production of LED products the main pollutants generated are COD and ammonia nitrogen. These are treated through a coagulation sedimentation + plate-frame filter press process. After treatment the emissions meet the stricter discharge limit requirements specified in the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020) as well as Water Pollutant Discharge Limits (DB44/26-2001) which is a local standard of Guangdong Province.NationStar Semiconductor: a) During the production of LED epitaxial wafers the main pollutant generated is ammonia. This is treated through an ammonia recovery process. After treatment the emissions meet the standard limit requirements in Table 2 of the Odorous Pollutant Emission Standards (GB14554-93). b) The manufacturing of LED chips mainly caused pollutants such as sulfuric acid mist hydrochloric acid mist chlorine hydrogen chloride fluorides and particulate matters. Upon treatment through Scrubber combustion-based washing and spraying equipment and scrubbing towers for acid and alkali exhaust gas the Emission Limits of Air Pollutants (DB44/27- 2001) of Guangdong Province: Standard Class II for Time Period II were met. c) During the production of LED chips the main pollutants generated include acetone isopropanol esters ethers amines and others. These are treated through a process of water spraying + dehumidification and defogging + secondary activated carbon adsorption. After treatment the emissions meet the standard limit requirements in Table 1 of the Comprehensive Emission Standards for Volatile Organic Compounds from Fixed Pollution Source (DB44/2367-2022). (2) Wastewater: FSL: The Company’s wastewater mainly came from offices and living. Domestic wastewater was treated with a tertiary septic tank. Oily sewage from the canteen was pre-treated with an oil and residue separation system and then transferred to wastewater treatment stations for centralized treatment. Upon treatment the discharge limits and requirements stipulated in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong Province: Standard Class I for Time Period II were met. 84Foshan Electrical Liaowang Auto Lamp: The manufacturing of auto luminary did not generate industrial wastewater and mainly caused wastes such as domestic wastewater. Upon treatment through physicochemical and biochemical the discharge limits and requirements for Level 1 standards of the Integrated Wastewater Discharge Standard (GB 8978-1996) were met.Hule Electric Equipment: The wastewater produced by the Company primarily consists of domestic sewage and production wastewater. The drainage system adopts a separate system for rainwater and sewage. Domestic sewage is treated through the existing septic tank and combined with the production wastewater that has been pre-treated by the sewage treatment station it is discharged into the municipal sewage network through the main discharge outlet. After further treatment by Jiaxing United Sewage Treatment Co. Ltd. to meet discharge standards the effluent is released. The discharge of the treated effluent complies with Level 1A Standard of the Pollutant Discharge Standards for Urban Wastewater Treatment Plants (GB18918-2002). The production wastewater (cleaning wastewater) is treated using an “air flotation + air flotation sedimentation integrated” process with oxidation treatment. The removal efficiencies for CODCr SS and oil are 75% 73% and 99% respectively. The main pollutants in the treated water are CODCr 215 mg/L SS 20.7 mg/L and oil 0.09 mg/L. The managed wastewater meets Table 4 Level 3 Standard of the Integrated Wastewater Discharge Standards (GB8978-1996) as well as the requirements of the Indirect Discharge Limits for Nitrogen and Phosphorus Pollutants from Industrial Enterprises (DB33/887- 2013). NationStar Optoelectronics: During the production of LED products the main pollutants generated are COD and ammonia nitrogen. These are treated through a coagulation sedimentation + plate-frame filter press process. After treatment the emissions meet the discharge limit requirements specified in the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020) and the Water Pollutant Discharge Limits (DB44/26-2001).NationStar Semiconductor: During the production of LED chips the main pollutants generated are COD ammonia nitrogen SS and fluoride. These are treated through physicochemical and biochemical processes. After treatment the emissions meet the indirect discharge limit requirements of Table 1 in the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020). (3) Noises: FSL: Noises mainly came from the operation of production machinery. Specifically water pumps and fans that would cause loud noises were placed in a soundproof room or covered with a noise enclosure. Hush pipes were attached to exhaust gas exhaust pipes that would cause loud noises.Liaowang Auto Lamp: Noises mainly came from the operation of production machinery.Specifically basic damping soundproof rooms and soundproof cottons were applied to injection moulding and friction welding that would cause loud noises. The Emission Standard for Noise of Industrial Enterprises at Boundary (GB12348-2008): Standard Class III were met.NationStar Optoelectronics: Noises mainly included mechanical and aerodynamic noises.Specifically production and process equipment were placed in a closed workshop. Soundproof rooms vibration dampers and noise enclosures were adopted for Equipment such as air compressors water pumps and fans that would cause loud noises.NationStar Semiconductor: Noises mainly included mechanical and aerodynamic noises.Production and process equipment was placed in a closed workshop. Soundproof rooms vibration dampers and noise enclosures were adopted for equipment such as air compressors water pumps and fans that would cause loud noises.Construction and operation of pollution prevention and control facilities: 85Foshan Electrical Op Total Design Date of Date of Actu era investm process construction operation al tin No. Facility ent Operator Processes ing (MM/YYYY (MM/YY capac g (RMB1 capacit ) YY) ity ho 0000) y urs Semi-dry flue gas Exhaust desulphurization 6000 gas November December Gaoming 60000 24 1 500 (SDFGD) + electric 0 treatment 2015 2015 Branch m3/h h/d precipitation + SCR m3/h facilities denitration Exhaust Taimei Cyclone plate tower + 1200 gas September 12000 12 2 30 May 2020 Compan activated carbon 3 0 treatment 2019 m /h 3 h/d y adsorption m /h facilities Conditioning + Wastewate Taimei September coagulation + 120 120 12 3 r treatment 130 May 2020 Compan 2019 sedimentation + air m3/d m3/d h/d facilities y flotation + filtration Exhaust Chancha gas ng activated carbon 8000 8000 12 4 20 Aug-14 Apr-15 treatment Compan adsorption m3/h m3/h h/d facilities y Exhaust Zhida UV photocatalytic 3500 gas September October 35000 12 5 48 Compan oxidation + activated 0 treatment 2020 2021 m3/h h/d y carbon adsorption m3/h facilities Photo- Oxygen- Activated carbon Liaowan 7000 Activated December October adsorption + UV 70000 24 6 28 g Auto 0 Carbon 2021 2022 photo-oxidation ㎡/h h/d Lamp ㎡/h All-in-One catalysis Machine VOCs organic 100009500 waste gas Activated carbon cubic cubic RTO December March Liuzhou 24 7 500 adsorption + meters meter (regenerati 2016 2017 Lighting h/d incineration per s per ve thermal hour hour incinerator ) oxidizer VOC organic 3200 February Qingdao activated carbon 32000 8h/ 8 waste gas 28.11 June 2018 0 2019 Lighting adsorption ㎡/h d treatment ㎡/h facility RTO (Regenerat Zeolite Chongqi 7500 ive October adsorption+desorption 75000 24 9 500 May 2018 ng 0 Thermal 2017 +RTO catalytic ㎡/h h/d Guinuo ㎡/h Incinerator combustion ) UV Chongqi Zeolite adsorption + 7000 October 70000 24 10 photocatal 200 May 2018 ng dedusting + UV 0 2017 ㎡/h h/d ysis Guinuo photocatalysis ㎡/h 86Foshan Electrical Op Total Design Date of Date of Actu era investm process construction operation al tin No. Facility ent Operator Processes ing (MM/YYYY (MM/YY capac g (RMB1 capacit ) YY) ity ho 0000) y urs Method for Hule treating 8~ December February Electric Activated carbon 3000 1536 11 organic 3.2 11 2020 2021 Equipme adsorption treatment m3/h m3/h exhaust h/d nt gasHule “Air flotation + airWastewate October Electric flotation sedimentation 1h/ 12 r treatment 20 August 2019 8 t/d 1 t/d 2019 Equipme integrated” oxidation d station nt treatment Wastewate NationSt Coagulation and 386.1 24 13 r treatment 39.5 April 2017 May 2017 600 t/d ar sedimentation t/d h/d station Method for treating the Dry filtration + 4114 exhaust NationSt 80000 24 14 May 2023 June 2023 secondary activated 8 gases of ar m3/h h/d carbon adsorption m3/h the plant in the west 259 Method for treating the Dry filtration + 3949 exhaust NationSt 11000 24 15 May 2023 June 2023 secondary activated 9 gases of ar 0 m3/h h/d carbon adsorption m3/h the plant in the east North area Dry filtration + exhaust activated carbon 32 NationSt 68000 24 16 gas 93 March 2024 April 2024 adsorption and 211 ar m3/h h/d treatment concentration + m3/h facility catalytic combustion NationSt Wastewate Physiochemical and ar 1080 331.8 24 17 r treatment 356.7 Sep-12 Dec-12 biochemical Semicon t/d 5 t/d h/d station processing ductor Method for NationSt treating ≥1750 1050 November ar Ammonia recovery 24 18 MOCVD 467.9 July 2023 0 9 2023 Semicon device 3 h/d exhaust Nm /h m3/h ductor gas Method for Scrubber combustion treating NationSt water washing and 1836 acid and ar 45000 24 19 348.405 Sep-12 Nov-12 spraying device + acid 8 alkali Semicon m3/h h/d and alkali exhaust gas m3/h exhaust ductor scrubber tower device gases Method for Scrubber combustion treating NationSt water washing and 1530 acid and ar 40000 24 20 348.405 Sep-12 Nov-12 spraying device + acid 4m3/ alkali Semicon m3/h h/d and alkali exhaust gas h exhaust ductor scrubber tower device gases 87Foshan Electrical Op Total Design Date of Date of Actu era investm process construction operation al tin No. Facility ent Operator Processes ing (MM/YYYY (MM/YY capac g (RMB1 capacit ) YY) ity ho 0000) y urs Method for Scrubber combustion treating NationSt water washing and 1137 acid and November ar 40000 24 21 106.2 July 2023 spraying device + acid 6m3/ alkali 2023 Semicon m3/h h/d and alkali exhaust gas h exhaust ductor scrubber tower device gases Method for Water spraying + NationSt treating dehumidification and November ar 20000 4436 24 22 organic 119.87 July 2023 defogging + secondary 2023 Semicon m3/h m3/h h/d exhaust activated carbon ductor gas adsorption Method for Water spraying + NationSt treating dehumidification and 1645 November ar 40000 24 23 organic 362.07 July 2023 defogging + secondary 0m3/ 2023 Semicon m3/h h/d exhaust activated carbon h ductor gas adsorption Method for Water spraying + NationSt treating dehumidification and November ar 20000 7366 24 24 organic 362.07 July 2023 defogging + secondary 2023 Semicon m3/h m3/h h/d exhaust activated carbon ductor gas adsorption Environmental self-monitoring plan: Foshan Electrical and Lighting Co. Ltd. Gaoming Branch developed an environmental self- monitoring plan. It entrusted a third-party environmental testing agency to perform the annual inspection of the exhaust outlet. All the inspection results were lower than the standard limits.Meanwhile it accepted the annual supervision and monitoring by local environmental protection departments. All the monitoring results were lower than the standard limits.Liuzhou Guige Lighting Technology Co. Ltd. has put in place the Self-monitoring Plan of Liuzhou Guige Lighting Technology Co. Ltd. It entrusted a third-party environmental testing agency to perform the annual inspection of the exhaust outlet. All the inspection results were lower than the standard limits. Meanwhile it accepted the annual supervision and monitoring by local environmental protection departments. All the monitoring results were lower than the standard limits.Zhejiang Hule Electric Equipment Manufacture Co. Ltd. has developed an environmental monitoring management system and entrusted a third-party environmental testing agency to conduct annual testing of the company’s exhaust emission outlets. The test results have all been below the emission standard limits. Meanwhile it accepted the annual supervision and monitoring by local environmental protection departments. All the monitoring results were lower than the standard limits.Foshan NationStar Optoelectronics Co. Ltd. in accordance with its self-monitoring plan commissions a qualified third-party environmental testing agency to carry out monthly and semi- annual testing of the Company’s various water and atmospheric pollutants. All test results are below the emission standard limits. Meanwhile it accepted the quarterly supervision and monitoring by local environmental protection departments. All the monitoring results were lower than the standard limits. 88Foshan Electrical Foshan NationStar Semiconductor Technology Co. Ltd. abided by its self-monitoring plan. It entrusted a qualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year basis. All the inspection results were lower than the standard limits.Meanwhile it accepted the quarterly supervision and monitoring by local environmental protection departments. All the monitoring results were lower than the standard limits.Contingency plan for environmental emergencies: The Company formulated the Emergency Plan for Environmental Emergencies of Foshan Electrical and Lighting Co. Ltd. Gaoming Branch (including the Risk Assessment Report and Material Survey of Environmental Emergencies) in August 2017 had it reviewed by experts on 13 September 2017 and had it filed with the Foshan Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-2017-094-L) on 24 October 2017. In August 2020 the Emergency Plan for Environmental Emergencies of Foshan Electrical and Lighting Co. Ltd. Gaoming Branch (including the Risk Assessment Report and Material Survey of Environmental Emergencies) was revised. On 7 September 2020 an expert review was reorganized and on 25 September 2020 the Emergency Plan was filed with Gaoming Branch of Foshan Municipal Ecology and Environment Bureau (filing number: 440608-2020-056-M). In September 2024 the contingency plan was revised again. On 10 October 2024 an expert review was reorganized and on 24 January 2025 the contingency plan was filed with Gaoming Branch of Foshan Municipal Ecology and Environment Bureau (filing number: 440608-2025-0008-M). In June 2018 Liuzhou Guige Lighting Technology Co. Ltd. completed the preparation of the Emergency Plan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co. Ltd.(including the Risk Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental Emergencies) which was reviewed by experts and released and filed with Liudong Branch of Liuzhou Environmental Protection Bureau on 29 August 2018 (No. 450203-2018-022-1). In August 2021 the Emergency Plan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co. Ltd. (including the Risk Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental Emergencies) was updated and compiled passed the expert review and released and on 27 December 2021 the Emergency Plan was filed with Liudong Branch of Liuzhou Environmental Protection Bureau (No. 450203-2021-0019-L).Hule Electric Equipment completed the preparation of the Emergency Plan for Environmental Emergencies of Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (including the Risk Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental Emergencies) on 22 September 2021. It passed the expert review on 15 November 2021 and on 23 November 2021 the emergency plan was filed with Nanhu Branch of Jiaxing Environmental Protection Bureau. The filing number is: 330402-2021-072-L. On 30 September 2024 the Emergency Plan for Environmental Emergencies of Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (including the Risk Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental Emergencies) was revised. An expert review was reorganized on 21 October 2024 and on 12 November 2024 the emergency plan was filed with Nanhu Branch of Jiaxing Environmental Protection Bureau. The filing number is: 330402-2024-095-L. On 31 December 2024 the performance of the pollution reduction measures in the heavy pollution weather emergency plan was upgraded from Level D suspension of production to Level C partial production restriction.Foshan NationStar Optoelectronics Co. Ltd. revised in 2023 the Emergency Plan for Environmental Emergencies of NationStar Optoelectronics (including the Risk Assessment Report and Material Survey of Environmental Emergencies) according to the requirements of the Management Methods 89Foshan Electrical for Environmental Emergencies and had it filed with Foshan Municipal Ecology and Environment Bureau (Filing No.: 440604-2023-0040-L).Foshan NationStar Semiconductor Technology Co. Ltd. formulated the Emergency Plan for Environmental Emergencies of NationStar Semiconductor (including the Risk Assessment Report and Material Survey of Environmental Emergencies) according to the requirements of the Management Measures for Environmental Emergencies and had it filed with Foshan Municipal Ecology and Environment Bureau (Filing No.: 440605-2023-0124-M) in 2023.Input in environmental governance and protection and the payment of environmental protection- related taxes: During the Reporting Period the input of the Company and its subsidiaries in the construction of environmental protection facilities the development of environmental protection standards the treatment of exhaust gas wastewater and waste residue and routine detection totaled RMB14.2304 million and their environmental protection-related taxes paid amounted to RMB69200.Measures taken during the Reporting Period to reduce carbon emissions and the impact: □Applicable □ Not applicable During the Reporting Period the Company reduced electricity consumption under the same output value by selecting high-efficiency and energy-saving equipment. The Company insists on constantly publicizing environmental protection knowledge to employees improving their awareness of environmental protection and realizing the sustainable development goal of harmonious coexistence between enterprises and the environment through the joint efforts of all employees.Administrative punishments received with respect to environmental issues in the Reporting Period: Name of the Impact on the Reason for Company or its Incompliance Punishment Company’s Rectification punishment subsidiary operations N/A N/A N/A N/A N/A N/A Other environment-related information that should be disclosed: None.II Social Responsibility For details about the Company’s fulfillment of social responsibilities in 2024 please refer to the Environmental Social and Governance (ESG) Report 2024 disclosed by the Company on http://www.cninfo.com.cn on 25 April 2024.III Efforts in Poverty Alleviation and Rural RevitalizationThe Company focuses on “industrial development for agriculture technological benefits foragriculture and green support for agriculture” 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. First industrial investment and employment promotion: The Company has invested nearly RMB53 million in the Maoming area to build a lighting and LED application product manufacturing base providing local tax revenue and employment opportunities thereby promoting local economic development. Second technological innovation and agricultural efficiency enhancement: Focusing on the practical needs of agricultural production the Company researches and produces lighting technologies and products for planting 90Foshan Electrical and aquaculture thereby improving agricultural economic benefits. Third urban-rural integration and consumption support building a bridge for urban-rural resource intercommunication promoting resource sharing and complementary advantages. Approximately RMB1.3 million of consumption support was implemented in Wuhua Meizhou and other places promoting agricultural product sales and achieving a win-win situation for economic and social benefits. 91Foshan Electrical Part VI Significant Events I Fulfillment of Commitments 1. Commitments of the Company’s Actual Controller Shareholders Related Parties and Acquirers as well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end □Applicable □ Not applicable Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment Electronics Group and Hong Kong Rising Investment have made commitments as follows to avoid horizontal competition with the Company: 1. They shall conduct supervision and restraint on the production and operating activities of themselves and their relevant enterprises so that besides the enterprise above that is in horizontal competition with the Company for now if the products or business of them or their relevant enterprises become Commitm the same with or similar to those of the Company or its ents made subsidiaries in the future they shall take the following Electroni About in measures: (1) If the Company thinks necessary they and cs Group avoidanc acquisition their relevant enterprises shall reduce and wholly and Hong e of documents transfer their relevant assets and business; and (2) If the 4 December Long- Kong horizonta Ongoing or Company thinks necessary it is given the priority to 2015 term Rising l shareholdi acquire first by proper means the relevant assets and Investme competiti ng business of them and their relevant enterprises. 2. All the nt on alteration commitments made by them to eliminate or avoid documents horizontal competition with the Company are also applicable to their directly or indirectly controlled subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries break the aforesaid commitments and thus cause a loss for the Company they shall compensate the Company on a rational basis. 1. Rising Group will take active measures to avoid any business or activity that competes or may compete with the principal business of the Company and its auxiliary Commitm enterprises and urge the Promisor to control enterprises ents made to avoid any business or activity that competes or may About in compete with the principal business of the Company and avoidanc acquisition its auxiliary enterprises. 2. If the Promisor and its Rising e of documents controlled enterprises are given the opportunity to 4 November Long- Holdings horizonta Ongoing or engage in new business that constitutes or may constitute 2021 term Group l shareholdi horizontal competition with the principal businesses of competiti ng the Company and its auxiliary enterprises the Promisor on alteration will make every effort to make the business opportunity documents first available to the Company or its auxiliary enterprises on reasonable and fair terms and conditions on the premise that conditions permit and in the interest of the listed company. 92Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment Electronics Group and Hong Kong Rising Investment have made a commitment that during their direct or indirect holding of the Company’s shares they shall 1.Strictly abide by the regulatory documents of the CSRC and the SZSE the Company’s Articles of Association etc. and not harm the interests of the Company or other shareholders of the Company in their production and operating activities by taking advantage of their position as the controlling shareholder and actual controller; 2.Commitm About Make sure that they or their other controlled subsidiaries ents made Electroni reduction branch offices jointly-run or associated companies (the in cs Group and “Relevant Enterprises” for short) will try their best to acquisition and Hong regulatio avoid or reduce related-party transactions with the documents 4 December Long- Kong n of Company or the Company’s subsidiaries; 3. Strictly Ongoing or 2015 term Rising related- follow the market principle of justness fairness and shareholdi Investme party equal value exchange for necessary and unavoidable ng nt transacti related-party transactions between them and their alteration ons Relevant Enterprises and the Company and withdraw documents from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a general meeting or a board meeting and execute the relevant approval procedure and information disclosure duties pursuant to the applicable laws regulations and regulatory documents. Where the aforesaid commitments are broken and a loss is thus caused for the Company its subsidiaries or the Company’s other shareholders they shall be obliged to compensate. 1. Strictly abide by the regulatory documents of the CSRC and the SZSE the Company’s Articles of Association etc. and not harm the interests of the Company or other shareholders of the Company in their production and operating activities by taking advantage of their position as the controlling shareholder and actual Commitm About controller; 2. Make sure that they or their other ents made reduction controlled subsidiaries branch offices jointly-run or in and associated companies (the “Relevant Enterprises” for acquisition Rising regulatio short) will try their best to avoid or reduce related-party documents 4 November Long- Holdings n of transactions with the Company or the Company’s Ongoing or 2021 term Group related- subsidiaries; 3. Strictly follow the market principle of shareholdi party justness fairness and equal value exchange for necessary ng transacti and unavoidable related-party transactions between alteration ons them and their Relevant Enterprises and the Company documents and withdraw from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a general meeting or a board meeting and execute the relevant approval procedure and information disclosure duties pursuant to the applicable laws regulations and regulatory documents.Commitm Electroni In order to ensure the independence of the Company in ents made cs Group business personnel asset organization and finance About in and Hong Electronics Group and Hong Kong Rising Investment 4 December Long- independ Ongoing acquisition Kong have made the following commitments: 1. They will 2015 term ence documents Rising ensure the independence of the Company in business: (1) or Investme They promise that the Company will have the assets 93Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment shareholdi nt personnel qualifications and capabilities for its ng operating activities to be conducted independently as alteration well as the ability of independent sustainable operation documents in the market. (2) They promise not to intervene in FSL’s business activities other than the execution of their rights as FSL’s shareholders. (3) They promise that they and their related parties will not be engaged in business that is substantially in competition with FSL’s business. And (4) They promise that they and their related parties will try their best to reduce related-party transactions between them and FSL; for necessary and unavoidable related-party transactions they promise to operate fairly following the market-oriented principle and at fair prices and execute the transaction procedure and the duty of information disclosure pursuant to the applicable laws regulations and regulatory documents. 2. They will ensure the independence of FSL in personnel: (1) They promise that FSL’s GM deputy GMs CFO Company Secretary of Board of Directors and other senior management personnel will work only for and receive remuneration from FSL not holding any positions in them or their other controlled subsidiaries other than director and supervisor. (2) They promise FSL’s absolute independence from their related parties in labor human resource and salary management. And (3) They promise to follow the legal procedure in their recommendation of directors supervisors and senior management personnel to FSL and not to hire or dismiss employees beyond FSL’s Board of Directors and General Meeting. 3. They will ensure the independence and completeness of FSL in asset: (1) They promise that FSL will have a production system an auxiliary production system and supporting facilities for its operation; legally have the ownership or use rights of the land plants machines trademarks patents and non- patented technology in relation to its production and operation; and have independent systems for the procurement of raw materials and the sale of its products. (2) They promise that FSL will have independent and complete assets all under FSL’s control and independently owned and operated by FSL. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy FSL’s funds and assets in any way or use FSL’s assets to provide guarantees for the debts of themselves or their other controlled subsidiaries with. 4. They will ensure the independence of FSL in organization: (1) They promise that FSL has a sound corporate governance structure as a joint-stock company with an independent and complete organization structure. (2) They promise that the operational and management organs within FSL will independently execute their functions according to laws regulations and FSL’s Articles of Association. 5. They will ensure the independence of FSL in finance: (1) They 94Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment promise that FSL will have an independent financial department and financial accounting system with normative independent financial accounting rules. (2) They promise that FSL will have independent bank accounts and not share bank accounts with its related parties. (3) They promise that FSL’s financial personnel do not hold concurrent positions in its related parties. (4) They promise that FSL will independently pay its tax according to law. And (5) They promise that FSL can make financial decisions independently and that they will not illegally intervene in FSL’s use of its funds.To maintain the independence of the Company Rising Holdings Group has made the following commitments: 1. It will ensure the personnel independence of the Company. It promises to ensure personnel independence with the Company and GM deputy GMs CFO Company Secretary of Board of Directors and other senior management personnel of the Company will not hold positions other than directors and supervisors in the enterprises wholly owned controlled or actually controlled by it and its subsidiaries (hereinafter referred to as “subsidiaries”) and will not receive salaries from it or its subsidiaries. It promises to ensure personnel independence with the Company and GM deputy GMs CFO Secretary of the Board of Directors and other senior management personnel of the Company will not hold positions other than directors and supervisors in the enterprises wholly owned controlled or actually Commitm controlled by it and its subsidiaries (hereinafter referred ents made to as “subsidiaries”) and will not receive salaries from it in or its subsidiaries. 2. It will ensure the asset acquisition Rising About independence of the Company. (1) It promises that the documents 4 November Long- Holdings independ Company has independent and complete assets. (2) It Ongoing or 2021 term Group ence promises that it and its subsidiaries will not illegally shareholdi occupy the Company’s funds and assets in any way. 3. It ng will ensure the financial independence of the Company: alteration (1) It promises that the Company will have an documents independent financial department and financial accounting system. (2) It promises that the Company will have a standardized and independent financial accounting system. (3) It promises that the Company will have independent bank accounts and not share bank accounts with it. (4) It promises that the Company’s financial personnel do not hold concurrent positions in it or its subsidiaries. And (5) It promises that the Company can make financial decisions independently and that they will not illegally intervene in the Company’s use of its funds. 4. It will ensure the independence of the Company in organization: (1) It promises that the Company can operate independently with an independent and complete organization structure. (2) It promises that the office and production and business premises of the Company are separated from those of Rising Holdings Group. And (3) It promises that the Board of Directors the Supervisory 95Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment Committee and various functional departments of the Company operate independently and there is no subordinate relationship with the functional departments of Rising Holdings Group. And 5 It will ensure the independence of the Company in business: (1) It promises that the Company will have independence in business. And (2) It promises that the Company will have the assets personnel qualifications and capabilities for its operating activities to be conducted independently as well as the ability of independent sustainable operation in the market. 1. They shall conduct supervision and restraint on the production and operating activities of themselves and their relevant enterprises so that besides the enterprise above that is in horizontal competition with NationStar Optoelectronics for now if the products or business of them or their relevant enterprises become the same with or similar to those of NationStar Optoelectronics or its subsidiaries in the future they shall take the following Commitm measures: (1) If NationStar Optoelectronics thinks ents made About necessary they and their relevant enterprises shall in avoidanc reduce and wholly transfer their relevant assets and acquisition e of business; and (2) If NationStar Optoelectronics thinks documents 7 October Long- FSL horizonta necessary it is given the priority to acquire first by Ongoing or 2021 term l proper means the relevant assets and business of them shareholdi competiti and their relevant enterprises. 2. All the commitments ng on made by them to eliminate or avoid horizontal alteration competition with FSL are also applicable to their directly documents or indirectly controlled subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries break the aforesaid commitments and thus cause a loss for NationStar Optoelectronics they shall compensate NationStar Optoelectronics on a rational basis. 1. FSL and enterprises under its control (except NationStar Optoelectronics and its subsidiaries) will reduce and standardize related transactions with Commitm About NationStar Optoelectronics and its subsidiaries. 2. In ents made reduction case of any inevitable or reasonably justified related in and party transactions FSL and enterprises under its control acquisition regulatio (except NationStar Optoelectronics and its subsidiaries) documents 7 October Long- FSL n of will strictly abide by the market principles conduct Ongoing or 2021 term related- related party transactions with NationStar shareholdi party Optoelectronics fairly and reasonably based on the ng transacti general principles of equality mutual benefit equal alteration ons value and compensation and perform legal procedures documents in accordance with laws regulations normative documents and relevant regulations of NationStar Optoelectronics.Commitm About To promote NationStar Optoelectronics’ implementation 7 October Long- ents made FSL maintaini of standardized management and the lawful and Ongoing 2021 term in ng compliant exercise of shareholder rights and 96Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment acquisition independ corresponding obligations practical and effective documents ence of measures will be taken to ensure the independence of or the listed NationStar Optoelectronics in terms of personnel assets shareholdi company finance organization and business. The undersigned ng commits to the following: (I) Ensure the independence alteration of NationStar Optoelectronics’ personnel: 1. Ensure that documents senior management personnel of NationStar Optoelectronics including the General Manager (President) Deputy General Managers Chief Financial Officer Secretary of Board of Directors and others do not hold any position other than Director or Supervisor in Foshan Lighting or other enterprises controlled by Foshan Lighting (excluding NationStar Optoelectronics and its controlled enterprises the same below) and do not receive salaries from Foshan Lighting or other enterprises controlled by Foshan Lighting. 2. Ensure the independence of labor personnel relations and the salary management system between NationStar Optoelectronics and Foshan Lighting or other enterprises controlled by Foshan Lighting. (II) It will ensure the independence of NationStar Optoelectronics in asset 1.FSL promises that NationStar Optoelectronics will have independent and complete operating assets related to operation; 2. FSL promises that the funds assets and other resources of NationStar Optoelectronics will not be illegally occupied. (III) It will ensure the independence of NationStar Optoelectronics in finance 1. It promises that NationStar Optoelectronics will have an independent financial department and independent financial accounting system and financial accounting rules. 2. It promises that NationStar Optoelectronics will have independent bank accounts and not share bank accounts with FSL and other enterprises under its control; 3. It promises that the financial personnel of NationStar Optoelectronics do not work part-time and receive salaries in FSL and other enterprises under its control; 4. It promises that NationStar Optoelectronics will independently pay its tax according to law; And (5) It promises that NationStar Optoelectronics can make financial decisions independently and that it will not illegally intervene in NationStar Optoelectronics’s use of its funds. (IV) It will ensure the independence of NationStar Optoelectronics in organization It promises that the listed company has a sound corporate governance structure as a joint-stock company with an independent and complete organization structure. (V) It will ensure the independence of NationStar Optoelectronics in business It promise that NationStar Optoelectronics remains independent in procurement production sales and intellectual property rights and that NationStar Optoelectronics will have the assets personnel qualifications and capabilities for it operating activities to be conducted independently as well as the ability of independent sustainable operation in the 97Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment market. 1. FSL has provided relevant information and documents (including but not limited to original written materials duplicate materials or oral testimony etc.) related to this trading to the intermediaries providing professional services of auditing valuation legal and financial About consultancy for this trading. FSL promises that the the copies or photocopies of the documents and materials truthfuln provided are consistent with the originals and that the ess signatures and seals of the documents and materials are accuracy authentic and the signatories of the documents have and been legally authorized and effectively signed the Commitm complete documents; that the provided information and ents made ness of documents are authentic accurate and complete and that during the 27 October Long- FSL there are no false records misleading statements or Ongoing asset informati 2021 term material omissions. FSL also promises to bear individual restructuri on and joint and several liability. 2. We promise that the ng provided copies or photocopies of the documents and materials during provided are consistent with the originals and that the this signatures and seals of the documents and materials are major authentic and the signatories of the documents have asset been legally authorized and effectively signed the restructu documents; that the provided information and ring documents are authentic accurate and complete and that there are no false records misleading statements or material omissions. We also promise to bear individual and joint and several liability. We promise that the information provided is true accurate and complete. 2. 1. They promise not to transfer benefits to other units or individuals free of charge or under unfair conditions and not to harm the interests of the Company in any other ways; 2. They promise to restrain position-related consumption behavior; 3. They promise not to use the Company’s assets to engage in investment and About consumption activities unrelated to the performance of measures duties; 4. They promise that the future remuneration to fill up system formulated by the Board of Directors or the returns Remuneration and Assessment Committee will be linked Commitm Director for risks to the implementation of the Company’s measures to fill ents made and arising up returns; 5. If the Company formulates an equity during senior from incentive plan in the future they will actively promote 27 October Long- Ongoing asset managem diluting the exercise conditions of the future equity incentive 2021 term restructuri ent office immediat plan to be linked with the implementation of the ng of FSL e return Company’s measures to fill up returns; 6. From the date in major of issuance of these commitments to the completion of asset this major asset restructuring of the Company if the restructu CSRC makes other new regulatory provisions on ring measures to fill up returns and the relevant commitments and these commitments cannot meet these provisions of the CSRC they promise to issue supplementary commitments in accordance with the latest regulations of the CSRC at that time. 7. We promise to earnestly fulfill the compensation measures formulated by the Company and any commitments we 98Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment make. If we violate any of these commitments and cause losses to the Company or investors we are willing to bear corresponding legal responsibilities to the Company or investors according to law. 1. We have provided relevant information and documents (including but not limited to original written materials duplicate materials or oral testimony etc.) related to this trading to the intermediaries providing professional services of auditing assessment legal and financial consultancy for this trading. We promise that the copies or photocopies of the documents and materials provided are consistent with the originals and that the About signatures and seals of the documents and materials are the authentic and the signatories of the documents have truthfuln been legally authorized and effectively signed the ess documents; the provided information and documents are accuracy authentic accurate and complete and there are no false and records misleading statements or material omissions.Commitm Director complete We also promise to bear individual and joint and several ents made and ness of liability. We promise that the information provided is during senior the true accurate and complete. 2. We promise that the 27 October Long- Ongoing asset managem informati copies or photocopies of the documents and materials 2021 term restructuri ent office on provided are consistent with the originals and that the ng of FSL provided signatures and seals of the documents and materials are during authentic and the signatories of the documents have this been legally authorized and effectively signed the major documents; that the provided information and asset documents are authentic accurate and complete and that restructu there are no false records misleading statements or ring material omissions. We also promise to bear individual and joint and several liability. We promise that the information provided is true accurate and complete. 3.Where the information provided or disclosed by us in this trading is suspected of false records misleading statements or material omissions and we are filed for investigation by the judicial organ or by the CSRC the shares with interests in the listed company will not be transferred until the investigation conclusion is formed.Rising 1. They promise not to interfere in the operation and Holdings management activities of the listed company beyond Group their authority and not to encroach on the interests of the Rising listed company. 2. From the date of issuance of these Capital commitments to the completion of this trading of the About Commitm Electroni listed company if the CSRC makes new regulatory effective ents made cs Group requirements on measures to fill up returns and performa during Hongkon commitments of relevant personnel and the above 27 October Long- nce of Ongoing asset g Wah commitments cannot meet these new regulatory 2021 term measures restructuri Shing requirements of the CSRC they promise to issue to fill up ng Hong supplementary commitments according to the latest returns Kong regulations of the CSRC at that time. 3. They promise to Rising earnestly fulfill the measures to fill up returns formulated Investme by the listed company and any commitments made by nt and them. If they violate these commitments and causes Shenzhen losses to the listed company or investors they are willing 99Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment Rising to bear the compensation responsibility for the listed Investme company or investors according to law. As one of the nt subjects responsible for the measures to fill up returns if they violate the above commitments or refuse to fulfill the above commitments they agree that the securities regulatory agencies such as the CSRC and the SZSE will punish them or take relevant regulatory measures in accordance with the relevant regulations and rules they formulated or issued. 1. They shall conduct supervision and restraint on the production and operating activities of themselves and their relevant enterprises so that besides the enterprise above that is in horizontal competition with FSL for now if the products or business of them or their relevant enterprises become the same with or similar to those of FSL or its subsidiaries in the future they shall take the Rising following measures: (1) If FSL thinks necessary they Holdings About and their relevant enterprises shall reduce and wholly Commitm Group avoidanc transfer their relevant assets and business; and (2) If FSL ents made Rising e of thinks necessary it is given the priority to acquire first during 27 October Long- Capital horizonta by proper means the relevant assets and business of Ongoing asset 2021 term and l them and their relevant enterprises. 2. All the restructuri Hongkon competiti commitments made by them to eliminate or avoid ng g Wah on horizontal competition with the Company are also Shing applicable to their directly or indirectly controlled subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries break the aforesaid commitments and thus cause a loss for FSL they shall compensate FSL on a rational basis.They have made a commitment that during their direct or indirect holding of FSL’s shares they shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE FSL’s Articles of Association etc. and not harm the interests of the Company or other shareholders of FSL in their production and operating activities by taking advantage of their position as the controlling Rising About shareholder and actual controller; 2. Make sure that they Holdings regulatio Commitm or their other controlled subsidiaries branch offices Group n andents made jointly-run or associated companies (the “RelevantRising reductionduring Enterprises” for short) will try their best to avoid or 27 October Long- Capital of Ongoing asset reduce related-party transactions with FSL or FSL’s 2021 term and related- restructuri subsidiaries; 3. Strictly follow the market principle of Hongkon party ng justness fairness and equal value exchange for necessary g Wah transacti and unavoidable related-party transactions between Shing ons them and their Relevant Enterprises and the Company and withdraw from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a general meeting or a board meeting and execute the relevant approval procedure and information disclosure duties pursuant to the applicable laws regulations and regulatory documents. Where the 100Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment aforesaid commitments are broken and a loss is thus caused for FSL its subsidiaries or FSL’s other shareholders they shall be obliged to compensate.About compens If NationStar Optoelectronics is subject to administrative ation for Rising penalties such as accountability and fines by relevant possible Commitm Holdings competent departments after the completion of this violation ents made Group trading due to the illegal acts of NationStar s of laws during Electroni Optoelectronics before the completion of this 27 October Long- and Ongoing asset cs Group acquisition they promise to fully bear the losses of 2021 term regulatio restructuri and NationStar Optoelectronics or FSL as well as the ns by ng Rising expenses and fees under punishment or recourse to NationSt Capital ensure that NationStar Optoelectronics or FSL will not ar suffer any economic losses.Optoelec tronics 1. We promise that the information provided is true accurate and complete and there are no false records misleading statements or material omissions. 2. We have provided relevant information and documents (including but not limited to original written materials duplicate materials or oral testimony etc.) related to this trading to the intermediaries. They promise that the copies or photocopies of the documents and materials provided are About consistent with the originals and that the signatures and the seals of the documents and materials are authentic and truthfuln the signatories of the documents have been legally ess authorized and effectively signed the documents; that accuracy there are no false records misleading statements or Rising and material omissions. 3. We promise that the explanations Commitm Holdings complete and confirmations issued by them are true accurate and ents made Group ness of complete and there are no false records misleading during Electroni the statements or material omissions. 4. During this trading 27 October Long- Ongoing asset cs Group informati we will disclose the information about this trading in a 2021 term restructuri and on timely manner in accordance with relevant laws and ng Rising provided regulations the CSRC and the SZSE and ensure the Capital during authenticity accuracy and completeness of such this information. 5. We shall bear legal responsibility for the major authenticity accuracy and completeness of the asset information documents materials explanations and restructu confirmations provided. In case of any violation or losses ring caused to the listed company investors parties to the trading and intermediaries participating in this trading they will be liable for compensation according to law. 6.Where the information provided or disclosed by us in this trading is suspected of false records misleading statements or material omissions and we are filed for investigation by the judicial organ or by the CSRC the shares with interests in the listed company will not be transferred until the investigation conclusion is formed.Commitm About Electronics Group promises that the 100% equity of ents made Electroni the Sigma it held is clear in ownership and is not subject to 27 October Long- Ongoing during cs Group clarity of any dispute or potential dispute and there is no situation 2021 term asset the affecting its legal existence; the above shares are not 101Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment restructuri underlyi subject to any other pledges guarantees or third-party ng ng assets interests or restrictions and there is no pending or of this potential litigation arbitration and any other major administrative or judicial procedure that may lead to the asset seizure freezing expropriation or restriction of transfer restructu of the above-mentioned equity by the relevant judicial or ring administrative organs. There is no entrusted shareholding or trust shareholding restriction or prohibition of transfer of the above-mentioned equity controlled by Electronics Group.Contents of Commitment: Rising Holdings Group and Rising Capital promise that the shares of NationStar About Optoelectronics it held is clear in ownership and is not the subject to any dispute or potential dispute and there is clarity of no situation affecting its legal existence; the above Commitm Rising the shares are not subject to any other pledges guarantees or ents made Holdings underlyi third-party interests or restrictions and there is no during Group 27 October Long- ng assets pending or potential litigation arbitration and any other Ongoing asset and 2021 term of this administrative or judicial procedure that may lead to the restructuri Rising major seizure freezing expropriation or restriction of transfer ng Capital asset of the above-mentioned equity by the relevant judicial or restructu administrative organs. There is no entrusted ring shareholding or trust shareholding restriction or prohibition of transfer of the above-mentioned equity controlled by Rising Group and Rising Capital.NationStar Optoelectronics has provided the necessary true accurate complete and effective documents materials or oral statements and explanations for this trading at this stage and there is no concealment falsehood or material omission. The copies or photocopies of the documents provided are consistent About with the original materials or originals. The signatures statemen and seals on the documents and materials provided are t and authentic and NationStar Optoelectronics has fulfilled commit the legal procedures required for such signatures and Commitm ment of seals and obtained legal authorization. All the facts ents made NationSt truthfuln stated and explained are consistent with the facts that during ar ess 27 October Long- happened. As this transaction proceeds the Company Ongoing asset Optoelect accuracy 2021 term shall provide needed information and documents as restructuri ronics and required by applicable laws regulations rules and ng complete requirements of CSRC and the stock exchange and ness of continue to guarantee the truthfulness accuracy informati completeness and validity of the information and on documents provided. The Company promises and provided guarantees the truthfulness accuracy and completeness of the information provided or disclosed with respect to this transaction. It guarantees that there are no misrepresentations misleading statements or material omissions. And it shall be individually and jointly liable for that.Commitm About Among 79753050 shares of tradable shares with ents made the unlimited selling conditions of NationStar 27 October Long- Sigma Ongoing during clarity of Optoelectronics held by Sigma 39876 500 shares were 2021 term asset the pledged for Guangdong Electronics Information 102Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment restructuri ownershi Industry Group Ltd. As of the date of issuance of this ng p of the commitment the pledge of the above shares has been underlyi released. However the Maximum Pledge Contract for ng assets Stocks of Listed Companies (No.: XXYZZ (BY) No.of this 201906280001-2) signed by Sigma and Guangzhou major Branch of Industrial Bank Co. Ltd. has not been asset dissolved. There is no entrusted shareholding or trust restructu shareholding restriction or prohibition of transfer of the ring above-mentioned equity controlled by Rising Group.Guangdong Electronics Information Industry Group Ltd.has promised that it will not add any new loans to Guangzhou Branch of Industrial Bank Co. Ltd. as a borrower during the validity period of the guarantee and that it will not substantially assume any guarantee responsibility due to the Maximum Pledge Contract for Stocks of Listed Companies. Except as aforesaid the asset ownership of Sigma is clear there is no dispute or potential dispute and there is no situation affecting the legal existence. There is no entrusted shareholding or trust shareholding restriction or prohibition of transfer of the above-mentioned equity controlled by Rising Group and Rising Capital.Commitm 1. Sigma promises that all its registered capital has been ents made About no paid in. 2. Sigma promises that all existing shareholders during ownershi contribute their own funds to hold shares there is no 27 October Long- Sigma Ongoing asset p dispute situation such as holding shares on behalf of them and 2021 term restructuri in equity there is no dispute or potential dispute between ng shareholders over their shares. 1. FSL has provided relevant information and documents (including but not limited to original written materials duplicate materials or oral testimony etc.) related to this trading to the intermediaries providing professional services of auditing valuation legal and financial consultancy for this trading. FSL promises that the About copies or photocopies of the documents and materials statemen provided are consistent with the originals and that the t and signatures and seals of the documents and materials are commit authentic and the signatories of the documents have Commitm ment of been legally authorized and effectively signed the ents made truthfuln documents; that the provided information and during ess documents are authentic accurate and complete and that 27 October Long- Sigma Ongoing asset accuracy there are no false records misleading statements or 2021 term restructuri and material omissions. FSL also promises to bear individual ng complete and joint and several liability. 2. We promise that the ness of copies or photocopies of the documents and materials informati provided are consistent with the originals and that the on signatures and seals of the documents and materials are provided authentic and the signatories of the documents have been legally authorized and effectively signed the documents; that the provided information and documents are authentic accurate and complete and that there are no false records misleading statements or material omissions. We also promise to bear individual and joint and several liability. We promise that the 103Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment information provided is true accurate and complete. 2.According to the laws and regulations issued by the State Council such as the Notice of the State Council on Resolutely Curbing the Soaring of Housing Prices in Some Cities (GF [2010] No. 10) the Notice of the General Office of the State Council on Further Director Improving Regulation of the Real Estate Market (GBF senior [2013] No. 17) and the Adjustment of Regulatory managem Policies on Listed Companies’ Re-financing Merger ent office and Acquisition and Reorganization Involving Real of FSL About Estate Business issued by the CSRC on the relevant Rising matters requirements for refinancing of listed companies Commitm Holdings on involved in real estate business the controlling ents made Group special shareholders and all directors and Senior Management of in time of Electroni self- Foshan Electrical and Lighting Co. Ltd. (hereinafter 14 March Long- Ongoing IPO or cs Group inspectio referred to as the “Company”) have made the following 2023 term refinancin Hongkon n of the commitments: The Self-inspection Report on the g g Wah real Company’s Involvement in Real Estate Business has Shing estate truthfully disclosed the self-inspection of the real estate Hong business development projects of the Company and its Kong subsidiaries between 1 January 2020 and 31 December Rising 2022. If the Company is identified with illegalities or Investme violations not disclosed as required by the self- nt inspection such as idle land land speculation holding real estate projects from selling and house price rigging thus causing losses to itself and the investors we will be liable for compensation in line with relevant laws regulations and requirements of securities regulatory authorities.According to the Opinions of the General Office of the State Council on Further Strengthening the Protection of the Lawful Rights and Interests of Small and Medium- sized Investors in the Capital Market (GBF [2013] No. 110) the Opinions of the State Council on Further Promoting the Sound Development of Capital Markets About (GF [2014] No. 17) the Guiding Opinions on Matters the concerning the Dilution of Immediate Return in Initial measures Public Offering Refinancing and Material Asset to fill up Restructuring (ZJHGG [2015] No. 31) and other Commitm Director immediat relevant regulations in order to protect the interests of ents made and e returns small and medium-sized investors the Directors and in time of senior diluted 14 March Long- Senior Management of the Company have made the Ongoing IPO or managem by the 2023 term following commitments that the measures to fill up refinancin ent office issuance immediate returns diluted by the issuance of A-shares to g of FSL of A- specific objects can be effectively fulfilled: 1. We shares to promise not to transfer benefits to other units or specific individuals for free or under unfair conditions and not to objects compromise the interests of the Company in other ways.in 2023 2. We promise to restrain position-related consumption behaviour. 3. We promise not to use the Company’s assets to engage in investment and consumption activities unrelated to the performance of duties. 4. We promise that the remuneration system formulated by the Board of Directors or the Remuneration and Assessment 104Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment Committee is linked to the implementation of the Company’s measures to fill up returns. 5. If the Company implements an equity incentive plan in the future the exercise conditions of the future equity incentive plan will be linked with the implementation of the Company’s measures to fill up returns. 6. From the date of issuance of these commitments to the completion of the issuance of shares to specific objects if the CSRC makes other new regulatory provisions on measures to fill up returns and the relevant commitments and these commitments cannot meet these provisions of the CSRC we promise to issue supplementary commitments in accordance with the latest regulations of the CSRC at that time. As one of the subjects responsible for the measures to fill up returns if we violate the above commitments or refuse to fulfil the above commitments we agree that the securities regulatory agencies such as the CSRC and the SZSE will punish us or take relevant regulatory measures in accordance with the relevant regulations and rules they formulated or issued.According to the relevant provisions of the CSRC in order to ensure that the measures to fill up immediate returns diluted by the issuance of A-shares to specific objects can be practically fulfilled the Company’s controlling shareholders Rising Holdings Group Electronics Group Hong Kong Rising Investment Hongkong Wah Shing and the de facto controller Rising Holdings Group respectively made the following commitments: 1. We promise not to interfere About in the operation and management activities of the listed the company beyond our authority and not to encroach on Rising effective the interests of the listed company. 2. From the date of Holdings fulfilmen issuance of these commitments to the completion of the Group t of issuance of shares to specific objects if the CSRC makes Electroni measures Commitm new regulatory requirements on measures to fill up cs Group taken by ents made returns and commitments of relevant personnel and the Hongkon controlli in time of above commitments cannot meet these new regulatory 14 March Long- g Wah ng Ongoing IPO or requirements of the CSRC we promise to issue 2023 term Shing sharehol refinancin supplementary commitments according to the latest Hong ders and g regulations of the CSRC at that time. 3. From the date of Kong de facto issuance of these commitments to the completion of the Rising controlle issuance of shares to specific objects if the CSRC makes Investme r to fill new regulatory requirements on measures to fill up nt up returns and commitments of relevant personnel and the immediat above commitments cannot meet these new regulatory e returns requirements of the CSRC we promise to issue supplementary commitments according to the latest regulations of the CSRC at that time. As one of the subjects responsible for the measures to fill up returns if we violate the above commitments or refuse to fulfil the above commitments we agree that the securities regulatory agencies such as the CSRC and the SZSE will punish us or take relevant regulatory measures in accordance with the relevant regulations and rules they 105Foshan Electrical Type of Date of Term of Commitm Fulfillm Promisor commit Details of commitment commitment commit ent ent ment making ment formulated or issued.Other commitme About nts made to cash FSL’s profit distributed in cash shall not be less than 27 May Long- minority FSL Ongoing dividend 30% of the distributable profit realized in the year. 2009 term shareholde s rs of the Company Commit ment Letter Regardin Electronics Group and its controlling subsidiary g the Hongkong Wah Shing commit to completing the current Within Electroni Increase share acquisition plan within the implementation period. six Other cs Group in During the acquisition period and the statutory period months 26 June commitme Hongkon Foshan the Company and Hongkong Wah Shing will not reduce starting Expired 2024 nts g Wah Lighting their holdings in Foshan Lighting shares and will strictly from 3 Shing Shares comply with relevant regulations. They will not engage June and in insider trading trading shares during sensitive 2024.Subsequ periods or short-term trading activities.ent Increase Plans Notificat ion Electronics Group commits to completing the current Within Letter share acquisition plan within the implementation period.six Regardin During the acquisition period and the statutory period Other 18 months Electroni g the the Electronics Group will not reduce its holdings in commitme November starting Ongoing cs Group Increase Foshan Lighting shares and will strictly comply with nts 2024 from 20 in relevant regulations. It will not engage in insider trading Novemb Foshan trading shares during sensitive periods or short-term er 2024.Lighting trading activities.Shares Whether the commitme Yes nts were timely performed Specific reasons for failing to fulfill commitme N/A nts on time and plans for next step 2. Where There Had Been an Earnings Forecast for an Asset or Project and the Reporting Period Was Still Within the Forecast Period Explain Why the Forecast Has Been Reached for the Reporting Period.□Applicable □Not applicable 106Foshan Electrical 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 in the Reporting Period.III Irregularities in the Provision of Guarantees □Applicable □Not applicable No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Independent Auditor’s “Modified Opinion” on the Financial Statements of the Latest Period □Applicable □Not applicable V Explanations Given by the Board of Directors the Supervisory Committee and the Independent Directors (if any) Regarding the Independent Auditor’s “Modified Opinion” on the Financial Statements of the Reporting Period □Applicable □Not applicable VI YoY Changes to Accounting Policies Estimates and Correction of Material Accounting Errors □Applicable □ Not applicableRefer to “Part X Financial Statements-V Important Accounting Policies and Estimations-43. Changesin Main Accounting Policies and Estimates” for details.VII YoY Changes to the Scope of the Consolidated Financial Statements □Applicable □ Not applicable The scope of consolidation for this period’s financial statements has increased compared to the previous period with the addition of one subsidiary Foshan Huaguang (Maoming) Technology Co.Ltd. three subsidiaries Liaowang Auto Lamp (Suzhou) Co. Ltd. Gaozhou NationStar Lighting Technology Co. Ltd. and Zhejiang Hule Electric Equipment Manufacture Co. Ltd. and one subsidiary of a subsidiary Shanghai Lelaite Electrical Equipment Co. Ltd. For further details please refer to IX. Changes in the Scope of Consolidation in Section 10 Financial Report.VIII Engagement and Disengagement of Independent Auditor Current independent auditor: Name of the domestic independent auditor WUYIGE Certified Public Accountants LLP The Company’s payment to the domestic independent 165 auditor (RMB’0000) How many consecutive years the domestic independent Three auditor has provided audit service for the Company Names of the certified public accountants from the domestic independent auditor writing signatures on the He Xiaojuan and Wang Xiaohan auditor’s report How many consecutive years the certified public He Xiaojuan (three years) and Wang Xiaohan (one accountants from the domestic independent auditor year) have provided audit service for the Company 107Foshan Electrical Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□Yes □No Independent auditor financial advisor or sponsor engaged for the audit of internal controls: □Applicable □ Not applicable In the Reporting Period the Company engaged WUYIGE Certified Public Accountants LLP as its internal control auditor with the total audit fees of RMB250000.IX Possibility of Delisting after Disclosure of this Report □Applicable □Not applicable X Insolvency and Reorganization □Applicable □Not applicable No such cases in the Reporting Period.XI Major Legal Matters □Applicable □ Not applicable Basic Whether Lawsuit Execution of Amount Lawsuit information there are (arbitration) lawsuit Disclosure Disclosure involved (arbitration) on lawsuit accrued results and (arbitration) date index (RMB’0000) progress (arbitration) liabilities influences judgment 137 other 49 cases are litigation currently No matters that under trial; significant 39885.57 Yes N/A N/A did not meet 88 cases influence on litigation have been the Company standards closed.Note: For details please refer to “Part X Financial Statements-XVI Commitments and ContingentMatters- 2. Contingent Matters”.XII Punishments and Rectifications □Applicable □Not applicable No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual Controller □Applicable □ Not applicable In the Reporting Period the Company and its controlling shareholder and actual controller were not involved in any unsatisfied court judgments large-amount overdue liabilities or the like.XIV Major Related-Party Transactions 1. Continuing Related-Party Transactions □Applicable □ Not applicable 108Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns Purchasing Guangdon products g Fenghua and Bank Under Advanced receiving Purchase transfers 27 http://www.same Market 688.4 0.18 Technolog labor of 688.42 1600 Not or bank 688.42 February cninfo.com.actual price 2 % y service materials acceptanc 2024 cn controller (Holding) from e notes Co. Ltd. related party Purchasing Guangzho products u and Bank Shengfeng Under receiving Receivin transfers Catering same Market 413.5 0.85 labor g labor 413.59 or bank 413.59 Managem actual price 9 % service service acceptanc ent controller from e notes Service related Co. Ltd.party Guangdon g Rising Commerci Purchasing al products Developm and Bank ent Co. Under receiving Receivin transfers Ltd. same Market 0.07 labor g labor 43.78 43.78 or bank 43.78 (renamed actual price % service service acceptanc Guangzho controller from e notes 27 http://www.u Tianxin related 1200 Not February cninfo.com.Property party 2024 cn Managem ent Company) Guangdon g Rising Cultural Purchasing Industry products Developm and Bank Under ent Co. receiving Receivin transfers same Market 0.06 Ltd. labor g labor 29.67 29.67 or bank 29.67 actual price % (formerly service service acceptanc controller known as from e notes Guangdon related g Great party Wall Hotel Co. Ltd.) Guangdon Under Purchasing Purchase Market 0.00 Bank 0.490.490.49 g Rising same products of price % transfers 109Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns Cultural actual and materials or bank Industry controller receiving acceptanc Developm labor e notes ent Co. service Ltd. from (formerly related known as party Guangdon g Great Wall Hotel Co. Ltd.) Purchasing products Guangdon and Bank Under g Xintao receiving Purchase transfers same Market 348.4 0.72 Microelect labor of 348.49 or bank 348.49 actual price 9 % ronics Co. service materials acceptanc controller Ltd. from e notes related party Purchasing Guangdon products g and Bank Electronic Under receiving Purchase transfers s same Market 0.02 labor of 63.90 63. 90 or bank 63.90 Informatio actual price % service materials acceptanc n Industry controller from e notes Group related Ltd. 27 http://www.party 300 Yes February cninfo.com. Purchasing 2024 cn products Shenzhen and Bank Under Yuepeng receiving Receivin transfers same Market 234.0 0.70 Constructi labor g labor 234.01 or bank 234.01 actual price 1 % on Co. service service acceptanc controller Ltd. from e notes related party Purchasing products Guangdon and Bank g Rising Under receiving Receivin transfers South same Market 0.13 labor g labor 65.28 65.28 or bank 65.28 Constructi actual price % service service acceptanc on Co. controller from e notes Ltd.related party 110Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns Purchasing Zhuhai products Dongjiang and Bank Under Environm receiving Receivin transfers same Market 0.09 ental labor g labor 43.42 43.42 or bank 43.42 actual price % Protection service service acceptanc controller Technolog from e notes y Co. Ltd. related party Purchasing products and Bank Primatroni Under receiving Receivin transfers x Nanho same Market 0.09 labor g labor 43.32 43.32 or bank 43.32 Technolog actual price % service service acceptanc y Ltd. controller from e notes related party Purchasing products Guangdon and Bank g Rising receiving Receivin transfers Actual Market 0.14 Holdings labor g labor 66.27 66.27 or bank 66.27 controller price % Group service service acceptanc Co. Ltd. from e notes related party Purchasing products Guangdon and Bank Under g Rising receiving Receivin transfers same Market 0.07 Hydrogen labor g labor 31.66 31.66 or bank 31.66 actual price % Energy service service acceptanc controller Co. Ltd. from e notes related party Guangdon g Rising Purchasing Urban products Services and Bank Under Co. Ltd. receiving Receivin transfers same Market 0.03 (formerly labor g labor 15.49 15.49 or bank 15.49 actual price % known as service service acceptanc controller Guangdon from e notes g Heshun related Property party Managem 111Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns ent Co.Ltd.) Purchasing products Foshan and Bank Fulong Under receiving Receivin transfers Environm same Market 0.02 labor g labor 8.56 8.56 or bank 8.56 ental actual price % service service acceptanc Technolog controller from e notes y Co. Ltd.related party Purchasing products and Bank Primatroni Under receiving Purchase transfers x Nanho same Market 0.00 labor of 6.20 6.20 or bank 6.20 Technolog actual price % service materials acceptanc y Ltd. controller from e notes related party Purchasing products Guangdon and Bank Under g Fenghua receiving Receivin transfers same Market 0.01 New labor g labor 5.96 5.96 or bank 5.96 actual price % Energy service service acceptanc controller Co. Ltd. from e notes related party Purchasing Shenzhen products Longgang and Bank Under Dongjiang receiving Receivin transfers same Market 0.01 Industrial labor g labor 5.18 5.18 or bank 5.18 actual price % Waste service service acceptanc controller Treatment from e notes Co. Ltd. related party Zhuhai Purchasing Doumen products District and Bank Under Yongxing receiving Receivin transfers same Market 0.01 sheng labor g labor 4.52 4.52 or bank 4.52 actual price % Environm service service acceptanc controller ental from e notes Industry related Waste party 112Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns Recovery and Comprehe nsive Treatment Co. Ltd.Purchasing products Jiangmen and Bank Dongjiang Under receiving Receivin transfers Environm same Market 0.00 labor g labor 0.22 0.22 or bank 0.22 ental actual price % service service acceptanc Company controller from e notes Limited related party Purchasing products Guangzho and Bank Under u receiving Receivin transfers same Market 372.4 2.96 Haixinsha labor g labor 372.43 or bank 372.43 actual price 3 % Industrial service service acceptanc controller Co. Ltd. from e notes related party Purchasing products Guangzho and Bank u Huajian Under receiving Receivin transfers 27 http://www.Business same Market 0.05 labor g labor 24.04 24.04 900 Not or bank 24.04 February cninfo.com.Developm actual price % service service acceptanc 2024 cn ent Co. controller from e notes Ltd.related party Purchasing products Guangdon and Bank Under g Huajian receiving Receivin transfers same Market 0.01 Enterprise labor g labor 4.92 4.92 or bank 4.92 actual price % Group service service acceptanc controller Co. Ltd. from e notes related party Hangzhou Enterpris Purchasing Bank Times e products Purchase transfers 27 http://www.Market 0.00 Lighting controlle and of 0.13 0.13 300 Not or bank 0.13 February cninfo.com.price % Electric d by receiving materials acceptanc 2024 cn Appliance related labor e notes 113Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns s Co. Ltd. natural service person from related party Selling Guangdon products g Fenghua Bank Under and Advanced transfers 27 http://www.same providing Sale of Market 1081 1081.9 0.12 1081.9 Technolog 2000 Not or bank February cninfo.com.actual labor products price .98 8 % 8 y acceptanc 2024 cn controller service to (Holding) e notes related Co. Ltd.party Selling Enterpris PROSPER products e Bank ITY and controlle transfers LAMPS & providing Sale of Market 961.6 0.11 d by 961.69 or bank 961.69 COMPON labor products price 9 % related acceptanc ENTS service to natural e notes LIMITED related person 27 http://www.party 3600 Not February cninfo.com. Selling Enterpris 2024 cn products e Bank Traxon and controlle transfers Technolog providing Sale of Market 0.01 d by 95.23 95.23 or bank 95.23 ies labor products price % related acceptanc Limited service to natural e notes related person party Selling products Guangdon Bank Under and g Xintao transfers same providing Sale of Market 179.1 0.02 Microelect 179.17 or bank 179.17 actual labor products price 7 % ronics Co. acceptanc controller service to Ltd. e notes related party Shantou Selling 27 http://www.Rising products 1500 Not February cninfo.com.Bank Infrastruct Under and 2024 cn transfers ure same providing Sale of Market 142.6 0.02 142.69 or bank 142.69 Constructi actual labor products price 9 % acceptanc on controller service to e notes Investmen related t Co. Ltd. party Guangdon Under Selling Providin Bank Market 135.3 0.01 g Xintao same products g labor 135.36 transfers 135.36 price 6 % Microelect actual and services or bank 114Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns ronics Co. controller providing acceptanc Ltd. labor e notes service to related party Selling Guangdon products Bank g Yixin Under and Providin transfers Changche same providing Market 0.00 g labor 12.10 12.1 or bank 12.10 ng actual labor price % services acceptanc Constructi controller service to e notes on Group related party Guangzho Selling u products Bank Wanshun Under and transfers Investmen same providing Sale of Market 0.00 5.96 5.96 or bank 5.96 t actual labor products price % acceptanc Managem controller service to e notes ent Co. related Ltd. party Selling Guangdon products g Bank Under and Zhongren Providin transfers same providing Market 0.00 Group g labor 0.55 0.55 or bank 0.55 actual labor price % Constructi services acceptanc controller service to on Co. e notes related Ltd party Selling products Guangdon Bank and g Rising Providin transfers Actual providing Market 0.00 Holdings g labor 0.01 0.01 or bank 0.01 controller labor price % Group services acceptanc service to Co. Ltd. e notes related party Guangdon g Rising Selling Mining products Bank Group Under and transfers Co. Ltd. same providing Sale of Market 0.00 9.96 9.96 or bank 9.96 (formerly actual labor products price % acceptanc known as controller service to e notes Guangdon related g Rising party Nonferrou 115Foshan Electrical As % of Market Price Appro total price of the ved Over Relations Total value of Pricing conn transac the Related hip with Type of value of all Method of similar Disclosu Disclosure Content princip ected tion approv party the transaction (RMB’ same settlement transac re date index le trans line ed line Company 0000) -type tions actio (RMB’ or not trans availab n 0000) actio le ns s Metals Group Co. Ltd.) Selling Guangdon products Bank g Under and Providin transfers Zhongnan same providing Market 0.01 g labor 45.26 45.26 or bank 45.26 Constructi actual labor price % services acceptanc on Co. controller service to e notes Ltd. related 27 http://www. party 2200 Not February cninfo.com. Selling 2024 cn Guangdon products Bank g Under and transfers Zhongnan same providing Sale of Market 0.00 9.65 9.65 or bank 9.65 Constructi actual labor products price % acceptanc on Co. controller service to e notes Ltd. related party Selling products Shandong Bank Under and Zhongjin transfers 27 http://www.same providing Sale of Market 0.00 Lingnan 0.91 0.91 1000 Not or bank 0.91 February cninfo.com.actual labor products price % Copper acceptanc 2024 cn controller service to Co. Ltd. e notes related party 5200.4 Total -- -- -- 14600 -- -- -- -- -- 7 Large-amount sales return in detail None The Company has compiled statistics on the total amount of routine related-party transactions in 2024 with Fenghua Advanced Technology and its subsidiaries Give the actual situation in the Reporting Guangsheng Real Estate and its subsidiaries Guangsheng Group and its other Period (if any) where an estimate had been subsidiaries Huajian Group and its subsidiaries Zhongjin Lingnan and its subsidiaries made for the total value of continuing and Youchang Company and its subsidiaries. For related-party procurement the actual related-party transactions by type to occur in amount incurred in 2024 was RMB25519500 accounting for 58.60% of the estimated the Reporting Period amount for the year. For related-party sales the actual amount incurred in 2024 was RMB26805200 accounting for 26.02% of the estimated amount for the year.Reason for any significant difference between the transaction price and the market None reference price (if applicable) 2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests □Applicable □Not applicable 116Foshan Electrical No such cases in the Reporting Period. 3. Related Transactions Regarding Joint Investments in Third Parties □Applicable □Not applicable No such cases in the Reporting Period. 4. Amounts Due to and from Related Parties □Applicable □ Not applicable Non-operating amounts due to and from related parties or not □Yes □No No such cases in the Reporting Period. 5. Transactions with Related Finance Companies □Applicable □ Not applicable Deposit business: Daily Reporting Period Relationship Interest Beginning Ending Related maximum Total Total with the rate balance balance party limits deposited in withdrawn Company range (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000) Guangdong Controlled Rising by the same 0.2%- 150000117915.42731230.59700929.48148216.53 Finance controlling 2.8% Co. Ltd. shareholder Loan business: None.Credit or other financial business: Relationship with Total amount Actual amount Related party Business type the Company (RMB’0000) (RMB’0000) Controlled by the Guangdong Rising same controlling Credit granting 200000 Finance Co. Ltd.shareholder 6. Transactions with Related Parties by Finance Company Controlled by the Company □Applicable □Not applicable No finance company controlled by the Company was involved in making deposits borrowing credit granting or any other financial business with any related party. 7. Other Major Related-Party Transactions □Applicable □ Not applicable Total Relationship Pricing Type of value Method of Disclosure Related party with the Content princip Disclosure index transaction (RMB’00 settlement date Company le 00) 117Foshan Electrical Purchasing Bank Guangdong products and 9 July 2021 Under same Receivin transfers or Zhongnan receiving Market 17 August http://www.cninfo.c actual g labor 1243.93 bank Construction labor service price 2021 and 12 om.cn controller service acceptance Co. Ltd. from related March 2022 notes party Purchasing Guangdong Bank products and Yixin Under same Receivin transfers or 6 May 2021 receiving Market http://www.cninfo.c Changcheng actual g labor 392.37 bank and 28 labor service price om.cn Construction controller service acceptance January 2022 from related Group notes party Purchasing http://www.cninfo.c Bank Guangdong products and om.cn Under same Receivin transfers or Zhongren Group receiving Market 1 December (announcement of actual g labor 1531.73 bank Construction labor service price 2020 subsidiary controller service acceptance Co. Ltd from related NationStar notes party Optoelectronics) Index to the current announcement about the said related-party transaction disclosed: Title of announcement Disclosure date Disclosure website Announcement on a Related-Party http://www.cninfo.com.cn (announcement 1 December 2020 Transaction Due to a Call for Public Bids of subsidiary NationStar Optoelectronics) Announcement on a Related-Party 6 May 2021 http://www.cninfo.com.cn Transaction Due to a Call for Public Bids Announcement on a Related-Party 9 July 2021 http://www.cninfo.com.cn Transaction Due to a Call for Public Bids Announcement on a Related-Party 17 August 2021 http://www.cninfo.com.cn Transaction Due to a Call for Public Bids Announcement on a Related-Party 28 January 2022 http://www.cninfo.com.cn Transaction Due to a Call for Public Bids Announcement on a Related-Party 12 March 2022 http://www.cninfo.com.cn Transaction Due to a Call for Public Bids XV Major Contracts and Execution thereof 1. Entrustment Contracting and Leases (1) Entrustment □Applicable □Not applicable No such cases in the Reporting Period. (2) Contracting □Applicable □Not applicable No such cases in the Reporting Period. (3) Leases □Applicable □ Not applicable Notes to leases The significant lease matters of the Company during the reporting period are as follows: 118Foshan Electrical Name Date of Name of Status of Date of of Lease amount commencement Purpose lessor leased assets expiry of leas lessee of lease Rent-free period: Two months; from 10 November 2024 to 9 September Guangdong 54/F 2026 the monthly Rising Guangdong rent is 10 September 9 September Holdings FSL Rising Office RMB293144.02; 2024 2027 Group Co. International from 10 September Ltd. Tower 2026 to 9 September 2027 the monthly rent is RMB307801.22.Self-numbered Guangdong NationS 01 50/F Rising tar Guangdong RMB1296000.00 10 September 9 September Holdings Office Optoele Rising /year 2024 2027 Group Co.ctronics International Ltd.Tower Lease items with a greater-than-10% impact on the Company’s gross profit during the Reporting Period: □Applicable □Not applicable No such cases in the Reporting Period. 2. Major guarantees □Applicable □ Not applicable Unit: RMB’0000 Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries) Disclosure Guarante date of the Line of Actual Actual Type of Collater Counter Having e for a guarantee Term of Obligor guarant occurren guarante guarante al (if guarantee expired related line guarantee ee ce date e amount e any) (if any) or not party or announcem not ent Total actual balance Total approved line for of such guarantees such guarantees at the at the end of the 0.00 end of the Reporting Reporting Period Period (A3) (A4) Guarantees provided by the Company as the parent for its subsidiaries Disclosure Guarante date of the Line of Actual Actual Type of Collater Counter Having e for a guarantee Term of Obligor guarant occurren guarante guarante al (if guarantee expired related line guarantee ee ce date e amount e any) (if any) or not party or announcem not ent Total approved line for Total actual balance such guarantees at the of such guarantees 0.00 end of the Reporting at the end of the Period (B3) Reporting Period 119Foshan Electrical (B4) Guarantees provided between subsidiaries Disclosure Guarante date of the Line of Actual Actual Type of Collater Counter Having e for a guarantee Term of Obligor guarant occurren guarante guarante al (if guarantee expired related line guarantee ee ce date e amount e any) (if any) or not party or announcem not ent Nanning Liaowang Auto Lamp Co. Ltd.Liuzhou Guige 25 April 2 March Fuxuan 21 June 3545.9 Mortgag 2022 -31 2023 19 6350 Yes None Not Not Technology 2023 5 ed December April 2024 Co. Ltd. 2025 Liuzhou Guige Lighting Technology Co. Ltd.Chongqing 25 May 2023 Guinuo 2 March 10 - 24 May 3964.6 Mortgag Lighting 2023 19 7000 Februar Yes None 2024; 21 Not Not 2 ed Technology April 2024 y 2023 May 2024 - Co. Ltd. 20 May 2025 Nanning Liaowang Auto Lamp Co. Ltd.Liuzhou Guige 24 April 2 March 24 Fuxuan 1430 4547.0 Mortgag 2022-31 2023 19 March Yes None Not Not Technology 0 0 ed December April 2024 2023 Co. Ltd. 2025 Liuzhou Guige Lighting Technology Co. Ltd.Zhejiang Hule 21 21 August Electrical 1721.9 Mortgag —— 2000 August Yes None 2023 - 20 Not Not Equipment 6 ed 2023 August 2028 Manufacturi ng Co. Ltd.Total actual amount Total approved line for of such guarantees such guarantees in the 27650 13779.53（Note 1） in the Reporting Reporting Period (C1) Period (C2) Total actual balance Total approved line for of such guarantees such guarantees at the 27650 at the end of the 13779.53 end of the Reporting Reporting Period Period (C3) (C4) Total guarantee amount (total of the three kinds of guarantees above) 120Foshan Electrical Total actual Total guarantee line guarantee amount approved in the 27650 in the Reporting 13779.53 Reporting Period Period (A1+B1+C1) (A2+B2+C2) Total actual Total approved guarantee guarantee balance line at the end of the 27650 at the end of the 13779.53 Reporting Period Reporting Period (A3+B3+C3) (A4+B4+C4) Total actual guarantee amount (A4+B4+C4) 2.10% as % of the Company’s net assets Compound guarantees: None.Note 1: The total actual amount of guarantees provided to subsidiaries during the Reporting Period (C2) includes the guarantees incurred by Hule Electrical Equipment prior to its acquisition by Hainan Technology in the current period.Other notes:Chongqing Guinuo Lighting Technology Co. Ltd. (referred to as “Chongqing Guinuo”) Liuzhou Guige Foreshine Technology Co. Ltd. (referred to as “Liuzhou Foreshine”) and Liuzhou Guige Fuxuan Technology Co. Ltd. (referred to as "Liuzhou Lighting") are all wholly-owned subsidiaries of Nanning Liaowang Auto Lamp Co. Ltd. (referred to as “Liaowang Auto Lamp”).As of 31 December 2024 the details of the guarantees and specific collateral can be found in “PartX-XVI Commitments and Contingent Matters-3. Others” of this Report. 3. Cash Entrusted to Other Entities for Management (1) Cash Entrusted for Wealth Management □Applicable □ Not applicable Overview of cash entrusted for wealth management during the Reporting Period Unit: RMB’0000 Provision for Unrecovered impairment on Type Funding source Amount Undue amount overdue amount unrecovered overdue amount Bank financial Self-funded 45000 4000 0 0 products Others Raised funds 59900 59900 0 0 Others Self-funded 63700 63700 0 0 Trust wealth management Self-funded 150 150 0 0 products Total 168750 127750 0 0 High-risk wealth management transactions with a significant single amount or with low security and low liquidity: □Applicable □ Not applicable 121Foshan Electrical Unit: RMB’0000 Pres Allo Annu Actu cribe wan alize al d Plan Index to Type of Fund Expe ce Use Determ d gain/l Receipt/ proc for transaction Type wealth ing Begin Endi cted for Am of ination yield oss in payment edur more summary Trustee of manage reso ning ng yield imp ount princi of rate Repo of such e transact and other trustee ment urce date date (if air pal yield for rting gain/loss exec ion or informatio product s any) men refere Perio uted not n (if any) t (if nce d or any) not Pending In recovery Guangz compli (frozen hou Subject ance in 2024 Branch Large 6 6 to with 10 Self- due to of certifica Janua Janu actual 3.3 330 prescri Bank 00 fund Other 990 litigation Yes China te of ry ary invest 0% .9 bed 0 ed Everbri deposit 2023 2026 ment approv unfrozen ght period al in March Bank proced 2025) ure In compli Foshan Subject ance Branch Large 31 31 to with of Bank Self- To be certifica 50 Augu Augu actual 2.9 147 prescri of Bank fund Other 435 recovere Yes te of 00 st st invest 0% .42 bed Commu ed d deposit 2023 2026 ment approv nication period al s proced ure In Guangz compli hou Subject ance Branch Large 3 3 to with 10 Self- To be of certifica Nove Nove actual 2.9 359 prescri Bank 00 fund Other 870 recovere Yes China te of mber mber invest 0% .12 bed 0 ed d Everbri deposit 2023 2026 ment approv ght period al Bank proced ure In Foshan compli Hujing Subject ance Sub- Large 1 1 to with 15 Self- 13 To be branch certifica Dece Dece actual 2.9 443 prescri Bank 00 fund Other 27. recovere Yes of Bank te of mber mber invest 5% .71 bed 0 ed 5 d of deposit 2023 2026 ment approv Guang period al Zhou proced ure Foshan Large Rais 5 5 Subject In 21 To be Hujing certifica ed Febru Febr to 2.7 17 528 compli Bank 20 Other recovere Yes Sub- te of fund ary uary actual 5% 49 .69 ance 0 d branch deposit s 2024 2027 invest with 122Foshan Electrical Pres Allo Annu Actu cribe wan alize al d Plan Index to Type of Fund Expe ce Use Determ d gain/l Receipt/ proc for transaction Type wealth ing Begin Endi cted for Am of ination yield oss in payment edur more summary Trustee of manage reso ning ng yield imp ount princi of rate Repo of such e transact and other trustee ment urce date date (if air pal yield for rting gain/loss exec ion or informatio product s any) men refere Perio uted not n (if any) t (if nce d or any) not of Bank ment prescri of period bed Guang approv Zhou al proced ure In Guangz compli hou Subject ance Branch Large Rais 5 5 to with To be of certifica 55 ed Febru Febr actual 2.6 129 prescri Bank Other 429 recovere Yes China te of 00 fund ary uary invest 0% .68 bed d Everbri deposit s 2024 2027 ment approv ght period al Bank proced ure In compli Subject ance Huaxia Large Rais 5 5 to with 14 11 To be Bank certifica ed Febru Febr actual 2.6 337 prescri Bank 30 Other 15. recovere Yes Foshan te of fund ary uary invest 0% .17 bed 0 4 d Branch deposit s 2024 2027 ment approv period al proced ure In compli China Subject ance Mercha Large Rais 5 5 to with To be nts certifica 82 ed Febru Febr actual 2.6 639 193 prescri Bank Other recovere Yes Bank te of 00 fund ary uary invest 0% .6 .34 bed d Foshan deposit s 2024 2027 ment approv Branch period al proced ure In compli Subject ance Huaxia Large 8 8 to with 15 Self- To be Bank certifica Marc Marc actual 2.6 11 319 prescri Bank 00 fund Other recovere Yes Foshan te of h h invest 0% 70 .48 bed 0 ed d Branch deposit 2024 2027 ment approv period al proced ure China Bank Large 35 Self- 29 29 Other Subject 2.6 273 69. To be Yes In 123Foshan Electrical Pres Allo Annu Actu cribe wan alize al d Plan Index to Type of Fund Expe ce Use Determ d gain/l Receipt/ proc for transaction Type wealth ing Begin Endi cted for Am of ination yield oss in payment edur more summary Trustee of manage reso ning ng yield imp ount princi of rate Repo of such e transact and other trustee ment urce date date (if air pal yield for rting gain/loss exec ion or informatio product s any) men refere Perio uted not n (if any) t (if nce d or any) not Mercha certifica 00 fund Marc Marc to 0% 31 recovere compli nts te of ed h h actual d ance Bank deposit 2024 2027 invest with Foshan ment prescri Branch period bed approv al proced ure In compli China Subject ance Mercha Large to with Self- 30 30 To be nts certifica 30 actual 2.6 40. prescri Bank fund April April Other 234 recovere Yes Bank te of 00 invest 0% 39 bed ed 2024 2027 d Foshan deposit ment approv Branch period al proced ure In compli Subject ance Hangzh Wealth 27 27 to with ou manage Self- - To be 15 Febru Febr actual 3.6 prescri Trust Trust ment fund Other 5.4 1.4 recovere Yes 0 ary uary invest 0% bed Co. product ed 6 d 2024 2025 ment approv Ltd. s period al proced ure In Foshan compli Sub- Subject ance branch 18 25 to with of Structur Self- To be 40 Nove Febr actual 2.4 26. 10. prescri LUSO Bank ed fund Other recovere Yes 00 mber uary invest 3% 73 95 bed Internat deposit ed d 2024 2025 ment approv ional period al Bankin proced g Ltd.ure In Subject compli Rais 5 5 to ance 10 To be Bank of Term ed Augu Febr actual 2.6 141 with Bank 70 Other 0 recovere Yes Hainan deposits fund st uary invest 5% .78 prescri 0 d s 2024 2025 ment bed period approv al 124Foshan Electrical Pres Allo Annu Actu cribe wan alize al d Plan Index to Type of Fund Expe ce Use Determ d gain/l Receipt/ proc for transaction Type wealth ing Begin Endi cted for Am of ination yield oss in payment edur more summary Trustee of manage reso ning ng yield imp ount princi of rate Repo of such e transact and other trustee ment urce date date (if air pal yield for rting gain/loss exec ion or informatio product s any) men refere Perio uted not n (if any) t (if nce d or any) not proced ure In compli China Subject ance Mercha 18 18 to with nts Self- To be Term 10 Octob Octo actual 1.5 1.4 prescri Bank Bank fund Other 0 recovere Yes deposits 0 er ber invest 5% 5 bed Haikou ed d 2024 2025 ment approv Guorui period al Branch proced ure In compli China Subject ance Mercha to with Self- 26 26 To be nts Term 10 actual 1.4 1.4 prescri Bank fund June June Other 0 recovere Yes Bank deposits 0 invest 5% 5 bed ed 2024 2025 d Foshan ment approv Branch period al proced ure 125Foshan Electrical http://w ww.cnin fo.com.c n - Announc ement on the Continue d Use of Own Funds for Entruste d Wealth Manage ment Announc ement No. 2023- 011; Announc In ement on Other compli the Use Guangd profes Subject ance of Part ong sional 27 30 to with of the Self- To be Rising wealth Term 20 Septe Marc actual 2.0 prescri Idle fund Other 30 0 recovere Yes Finance manag deposits 00 mber h invest 0% bed Funds ed d Compa ement 2024 2025 ment approv for ny institu period al Entruste tions proced d Wealth ure Manage ment Announc ement No. 2024- 017; Announc ement on the Use of Part of Idle Raised Funds for Cash Manage ment Announc ement No.: 2024- 005. 129429 Total -- -- -- -- -- -- -- -- -- -- 7739.08. 126Foshan Electrical Pres Allo Annu Actu cribe wan alize al d Plan Index to Type of Fund Expe ce Use Determ d gain/l Receipt/ proc for transaction Type wealth ing Begin Endi cted for Am of ination yield oss in payment edur more summary Trustee of manage reso ning ng yield imp ount princi of rate Repo of such e transact and other trustee ment urce date date (if air pal yield for rting gain/loss exec ion or informatio product s any) men refere Perio uted not n (if any) t (if nce d or any) not 503170 Situation where the principal is expectedly irrecoverable or an impairment may be incurred: □Applicable □Not applicable (2) Entrusted Loans □Applicable □Not applicable No such cases in the Reporting Period. 4. Other Significant Contracts □Applicable □Not applicable No such cases in the Reporting Period.XVI Other Significant Events □Applicable □ Not applicable 1. Land Reserve for the Fenjiang North Road Plot In February 2024 after review and approval by the Company’s board of directors and shareholders’ meeting the Company officially signed the State-owned Land Use Rights Reserve Agreement with the Foshan Chancheng District Land Reserve Center and the Chancheng District Zumiao Subdistrict Office. After completing the preliminary land preparation work such as demolition of buildings in accordance with relevant laws regulations and policy stipulations the company will proceed with the phased handover and accounting of the Fenjiang North Road plot over the course of three years.In September 2024 the Company completed the preliminary land preparation work for the Fenjiang North Road plot in accordance with relevant regulations including the demolition of above-ground structures. The southern section of the Fenjiang North Road plot was handed over to the Land Reserve Center of Chancheng District Foshan. On 28 September 2024 Chancheng Branch of the Foshan Bureau of Natural Resources publicly listed the southern section of the plot for transfer at the Chancheng Sub-Center of the Foshan Public Resources Trading Center. On 4 November 2024 Shenzhen China Overseas Investment Co. Ltd. and China State Construction International Investment Group Co. Ltd. successfully won the bid for the southern section of the Company’s Fenjiang North Road plot. On 25 December 2024 the Company received the first installment of the compensation payment for the southern section of the Fenjiang North Road plot totaling RMB381779100 from the Chancheng District Land Reserve Center of Foshan City. For detailed information please refer to the announcements disclosed by the Company on 7 December 2023 3 February 2024 30 September 2024 5 November 2024 and 26 December 2024 on the http://www.cninfo.com.cn titled Announcement on the Company’s Asset Disposal and Signing of the Land Reserve Agreement Progress Announcement on the Company’s Asset Disposal and Signing of 127Foshan Electrical the Land Reserve Agreement and Progress Announcement on the Company’s Asset Disposal and Public Listing of Land for Sale. 2. Signed an Acquisition Intention Agreement with Yilai Smart In October 2024 the Company signed an Equity Acquisition Intention Agreement with the controlling shareholders of Qingdao Yilai Smart Technology Co. Ltd. (hereinafter referred to as “Yilai Smart”) Jiang Zhaoning and Liu Daping. The Company intends to acquire more than 50% of the equity in Yilai Smart (the specific percentage and transferor will be determined through negotiation after due diligence audit and evaluation). Upon completion of the acquisition the Company will become the controlling shareholder of Yilai Smart and Yilai Smart will be included in the Company’s consolidated financial statements. The equity acquisition is subject to the completion of comprehensive due diligence audit and asset evaluation and further negotiation based on the relevant results. The final terms of this transaction are subject to the signing of the formal equity acquisition agreement and there is uncertainty as to whether it can be reached in the end. For detailed information please refer to the Announcement on Signing the Equity Acquisition Intention Agreement disclosed by the Company on 29 October 2024 on the http://www.cninfo.com.cn.XVII Significant Events of Subsidiaries □Applicable □ Not applicable 1. Liaowang Auto Lamp Invests in the Establishment of a Wholly-owned Subsidiary and the Investment in the Automotive Lighting Production Construction Project In September 2024 the Company held the 59th meeting of the 9th Board of Directors where the Proposal on the Investment by the Controlling Subsidiary to Establish a Wholly-owned Subsidiary and Invest in the Automotive Lighting Production Construction Project was reviewed and approved.The proposal agreed that the Company’s controlling subsidiary Nanning Liaowang Auto Lamp Co.Ltd. (referred to as “Liaowang Auto Lamp”) would invest in the establishment of a wholly-owned subsidiary in Xiangcheng District Suzhou and invest approximately RMB58 million in the construction of an automotive lighting production base. This investment aims to optimize the industrial layout of Liaowang Auto Lamp expand the production scale of automotive lighting products accelerate the shift towards mid-to-high-end product markets and enhance market competitiveness. For detailed information please refer to the Announcement on the Investment by the Controlling Subsidiary to Establish a Wholly-Owned Subsidiary and Invest in the Automotive Lighting Production Construction Project disclosed by the Company on 28 September 2024 on the http://www.cninfo.com.cn. 2. Foshan (Hainan) Company Acquisition of Zhejiang Hule Electric Equipment Manufacture Co. Ltd. Project After the relevant decision-making procedures were followed by the Company’s wholly-owned subsidiary Foshan Lighting (Hainan) Technology Co. Ltd. (referred to as “Hainan Technology”) and approved by the Company’s General Manager’s Office Foshan Lighting (Hainan) Company signed a Supplementary Agreement to the Equity Transfer Agreement with the transferor in August 2024. Foshan Lighting (Hainan) Company acquired 66% of the equity in Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (referred to as “Hule Electric Equipment”) in cash making Hulu Electric Equipment a controlling subsidiary of the Company. 3. Expropriation of Land and Above-ground Housing of Nanjing Fozhao The Company held the 24th Meeting of the 9th Board of Directors on 15 December 2021 where the Proposal on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary 128Foshan Electrical Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd. was deliberated and adopted. The Board of Directors agreed that Nanjing Lishui District People’s Government expropriates the land use rights and above-land housing of Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd.(hereinafter referred to as “Nanjing Fozhao”) a wholly-owned subsidiary of the Company at a compensation amount of RMB183855895.00 and Nanjing Fozhao signed an expropriation and compensation agreement with Lishui County House Dismantling Moving & Resettling Development Co. Ltd. the implementing unit of the housing expropriation. As of 31 December 2023 Nanjing Fozhao has received 30% of the compensation that is RMB55.16 million and the land use right certificate and house ownership certificate of the assets involved have been cancelled. As of the date of this Report the site handover is still in progress. As of 7 January 2025 Lishui District Demolition and Resettlement Co. Ltd. of Nanjing had taken possession of all land and above-ground buildings of Nanjing Fozhao. As of the disclosure date of this report both parties are still in negotiation regarding the performance of the contract and the payment of the remaining compensation. After the demolition work is completed Nanjing Fozhao plans to carry out liquidation and cancellation. 129Foshan Electrical Part VII Share Changes and Shareholder Information I Share Changes 1. Share Changes Unit: share Before Increase/decrease in the Reporting Period (+/-) After Shares Shares as as dividend Percentag New dividend Percentag Shares converte Other Subtotal Shares e (%) issues converte e (%) d from d from capital profit reserves 1.-- Restricted 197537241 12.75% 14024178 14024178 57295457 3.70% shares 4 4 1.1 Shares held by 0 0.00% 0 0 0 0.00% state 1.2 Shares held by -- state-owned 69136167 4.46% 46695896 3.02% 2244027122440271 legal persons 1.3 Shares held by other 1826025 0.12% -154096 -154096 1671929 0.11% domestic investors Among which: Shares held 13384340.09%0013384340.09% by domestic legal persons Shares held by domestic 4875910.03%-154096-1540963334950.02% natural persons 1.4 Shares held by - - 244811961.58%89276320.58% foreign 15553564 15553564 investors Among which: Shares held - - 116040940.75%00.00% by foreign 11604094 11604094 legal persons Shares held by foreign 12877102 0.83% -3949470 -3949470 8927632 0.58% natural 130Foshan Electrical persons 5. Funds wealth - - managemen 102093853 6.59% 10209385 10209385 0 0.00% t products 3 3 etc. 2. 13512409140241781402417814914827 Unrestricte 87.25% 96.30% 894473 d shares 2.1 RMB- denominate 10565010 14023611 14023611 11967371 68.22%77.27% d ordinary 50 7 7 67 shares 2.2 Domesticall y listed 294739939 19.03% 5667 5667 294745606 19.03% foreign shares 2.3 Overseas listed 0 0.00% 0 0 0 0.00% foreign shares 4. Other 0 0.00% 0 0 0 0.00% 3. Total 15487782 15487782 100.00%00100.00% shares 30 30 Reasons for share changes: □Applicable □ Not applicable 1. In 2023 in accordance with the Reply on the Approval of the Registration of Foshan Electrical and Lighting Co. Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the CSRC the Company issued 186783583 RMB-denominated ordinary shares (A shares) to 13 specific objects including Rising Holdings Group the Company’s de facto controller and such shares were listed on the SZSE on 4 December 2023. On 4 June 2024 the 140087688 restricted shares subscribed by 12 subscribers in this issue were relieved. For details please refer to the Indicative Announcement on the Trading on the Market of Restricted Shares Issued to Specific Objects That Have Been Relieved disclosed on 29 May 2024 on http://www.cninfo.com.cn. 2. Due to the resignation of directors and senior management in accordance with relevant regulations an additional 154096 unrestricted shares were issued.Approval of share changes: □Applicable □ Not applicable During the Reporting Period the application for the relief of the 140087688 restricted shares subscribed by 12 specific objects which were issued by the Company in 2023 and their change to unrestricted shares was approved by the SZSE and China Securities Depository and Clearing Corporation Limited (CSDC).Transfer of share ownership: □Applicable □Not applicable Effects of share changes on the basic earnings per share (EPS) and diluted earnings per share equity 131Foshan Electrical 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 2. Changes in Restricted Shares □Applicable □ Not applicable Unit: share Restricted Restricted Restricted Restricted shares shares shares Restricted Name of the shares amount at Restricted amount at increased shares shareholders relieved of the reasons the period- of the relieved date the period period- begin period end Restricted shares after the initial offering; Nuode Asset subscription for Management Co. 33373720 0 33373720 0 the Company’s 4 June 2024 Ltd. A-share issuance to specific objects in 2023 Restricted shares after the initial offering; Caitong Fund subscription for Management Co. 44658703 0 44658703 0 the Company’s 4 June 2024 Ltd. A-share issuance to specific objects in 2023 Restricted shares after the initial offering; subscription for CSC Financial Co. 8788395 0 8788395 0 the Company’s 4 June 2024 Ltd.A-share issuance to specific objects in 2023 Restricted shares after the initial offering; subscription for UBS AG 6484641 0 6484641 0 the Company’s 4 June 2024 A-share issuance to specific objects in 2023 132Foshan Electrical Restricted Restricted Restricted Restricted shares shares shares Restricted Name of the shares amount at Restricted amount at increased shares shareholders relieved of the reasons the period- of the relieved date the period period- begin period end Restricted shares after the initial offering; subscription for Morgan Stanley & 5119453 0 5119453 0 the Company’s 4 June 2024 Co. International plc A-share issuance to specific objects in 2023 Restricted shares after the initial offering; subscription for CITIC Securities 5119453 0 5119453 0 the Company’s 4 June 2024 Co. Ltd.A-share issuance to specific objects in 2023 Guangdong Rongchuang Restricted Lingyue Intelligent shares after the Manufacturing and initial offering; Information subscription for Technology 5119453 0 5119453 0 the Company’s 4 June 2024 Industry Equity A-share Investment Fund issuance to Partnership specific objects (Limited in 2023 Partnership) Restricted shares after the initial offering; Changsha Lugu subscription for Capital 8532423 0 8532423 0 the Company’s 4 June 2024 Management Co.A-share Ltd.issuance to specific objects in 2023 Restricted shares after the Huatai Asset initial offering; Management Co. subscription for Ltd. - Huatai Youyi 5119453 0 5119453 0 the Company’s 4 June 2024 Equity-Specific A-share Pension Product issuance to specific objects in 2023 Restricted Sichuan Pu Xin shares after the Chan Rong 5119453 0 5119453 0 4 June 2024 initial offering; Investment Co. Ltd.subscription for 133Foshan Electrical Restricted Restricted Restricted Restricted shares shares shares Restricted Name of the shares amount at Restricted amount at increased shares shareholders relieved of the reasons the period- of the relieved date the period period- begin period end the Company’s A-share issuance to specific objects in 2023 Restricted shares after the initial offering; Horizon Asset subscription for Management Co. 8703071 0 8703071 0 the Company’s 4 June 2024 Ltd. A-share issuance to specific objects in 2023 Restricted shares after the initial offering; subscription for Wu Xiaochun 3949470 0 3949470 0 the Company’s 4 June 2024 A-share issuance to specific objects in 2023 Relief of Restricted sale restricted due to shares in separation of accordance Wei Bin 78919 26307 105226 0 directors with rules on supervisors and restricted senior shares for management senior management Relief of Restricted sale restricted due to shares in separation of accordance Jiao Zhigang 67799 22600 90399 0 directors with rules on supervisors and restricted senior shares for management senior management Relief of Restricted sale restricted due to shares in separation of accordance Cheng Ke 8662 2888 11550 0 directors with rules on supervisors and restricted senior shares for management senior management Xu Xiaoping 27952 9318 37270 0 Restricted sale Relief of 134Foshan Electrical Restricted Restricted Restricted Restricted shares shares shares Restricted Name of the shares amount at Restricted amount at increased shares shareholders relieved of the reasons the period- of the relieved date the period period- begin period end due to restricted separation of shares in directors accordance supervisors and with rules on senior restricted management shares for senior management Relief of Restricted sale restricted due to shares in separation of accordance Ye Zhenghong 58171 19390 0 77561 directors with rules on supervisors and restricted senior shares for management senior management Relief of Restricted sale restricted due to shares in separation of accordance Lin Qing 16937 5646 0 22583 directors with rules on supervisors and restricted senior shares for management senior management Relief of restricted shares in accordance Management Wang Ye 0 4200 0 4200 with rules on restricted shares restricted shares for senior management Total 140346128 90349 140332133 104344 -- -- II. Issuance and Listing of Securities 1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period □Applicable □Not applicable 2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures □Applicable □Not applicable 3. Existing Staff-Held Shares □Applicable □Not applicable 135Foshan Electrical III Shareholders and Actual Controller 1. Shareholders and Their Shareholdings at the Period-End Unit: share Number of ordinary Number of Number of preferred shareholder preferred shareholders with Number of s at the shareholders resumed voting rights at ordinary 73807 month-end 107419 with resumed 0 the month-end prior to 0 shareholder prior to the voting rights (if the disclosure of this s disclosure any) (see Note Report (if any) (see of this 8) Note 8) Report 5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing) Name of Shareholdi Total Increase/decrea Shares in pledge Nature of Restricted Unrestricte the ng shares held se in the marked or frozen sharehold shares d shares shareholder percentage at the Reporting er held held Status Shares s (%) period-end Period Hongkong Wah Shing Foreign 1973389819733898 Holding legal 12.74% 8842550 0 N/A 0 00 Company person Limited Prosperity Foreign Lamps & 14693485 14693485 legal 9.49% 0 0 N/A 0 Component 7 7 person s Limited Guangdong State- Electronics owned 13219424 13219424 Information 8.54% 9500000 0 N/A 0 legal 6 6 Industry person Group Ltd.Guangdong State- Rising owned 12982679 4669589 Holdings 8.38% 0 83130898 N/A 0 legal 3 5 Group Co.person Ltd.Guozheng Internationa l Securities (Hong Kong) Co.Ltd.Foreign (formerly legal 2.27% 35142601 -3083923 0 35142601 N/A 0 known as person Anxin Internationa l Securities (Hong Kong) Co.Ltd.) Central State- Huijin owned 2.14% 33161800 0 0 33161800 N/A 0 Asset legal Manageme person 136Foshan Electrical nt Co. Ltd.Rising Foreign Investment legal 1.65% 25482252 0 0 25482252 N/A 0 Developme person nt Limited Domestic Zhang natural 1.10% 17000000 5300000 0 17000000 N/A 0 Shaowu person Overseas Zhuang natural 0.77% 11903509 0 8927632 2975877 N/A 0 Jianyi person Hong Kong Securities Foreign Clearing legal 0.62% 9660977 -20706829 0 9660977 N/A 0 Company person Limited Strategic investors or general corporations becoming top-ten None shareholders due to placing of new shares (if any) (see Note 3) Among the top 10 shareholders of the Company Hongkong Wah Shing Holding Company Limited Guangdong Electronics Information Industry Group Ltd. Guangdong Rising Holdings Group Co. Ltd. and Rising Investment Development Limited are considered Related or acting-in- concerted parties. Prosperity Lamps & Components Limited and Zhuang Jianyi have a concert parties among related-party relationship and are also considered concerted parties. Apart from the above the shareholders above it is unknown whether there are any related-party relationships or whether any other shareholders constitute concerted parties as defined by the Measures for the Administration of the Acquisition of Listed Companies.Above shareholders involved in entrusting/being None entrusted with voting rights and giving up voting rights Special account for share repurchases (if As of the end of this reporting period the Company’s repurchase account holds any) among the top ten 13000000 A-shares of the Company accounting for 0.84% of the total share capital. shareholders (see Note 10) Shareholdings of top ten unlimited shareholders (excluding shares lent trough refinancing and management lock- up shares) Type of shares Name of the Unrestricted shares at the Period-end Type of shareholders Shares shares RMB- Hongkong Wah Shing denominate 19733898 Holding Company 197338980 d ordinary 0 Limited stock RMB- Prosperity Lamps & denominate 14693485 146934857 Components Limited d ordinary 7 stock Guangdong Electronics RMB- 13219424 Information Industry 132194246 denominate 6 Group Ltd. d ordinary 137Foshan Electrical stock RMB- Guangdong Rising denominate Holdings Group Co. 83130898 83130898 d ordinary Ltd.stock Guozheng International Securities (Hong Kong) Domestical Co. Ltd. (formerly ly listed 3514260135142601 known as Anxin foreign International Securities stock (Hong Kong) Co. Ltd.) RMB- Central Huijin Asset denominate 3316180033161800 Management Co. Ltd. d ordinary stock Domestical Rising Investment ly listed 2548225225482252 Development Limited foreign stock RMB- denominate Zhang Shaowu 17000000 17000000 d ordinary stock RMB- Hong Kong Securities denominate Clearing Company 9660977 9660977 d ordinary Limited stock Domestical China Merchants ly listed Securities (Hong Kong) 8767891 8767891 foreign Co. Ltd stock Related or acting-in- concert parties among Among the top ten unrestricted tradable shareholders of the Company Hongkong Wah the top ten unrestricted Shing Holding Company Limited Guangdong Electronics Information Industry Group ordinary shareholders Ltd. Guangdong Rising Holdings Group Co. Ltd. and Rising Investment Development as well as between the Limited are considered concerted parties. Apart from the above it is unknown whether top ten unrestricted there are any related-party relationships or whether any other shareholders constitute ordinary shareholders concerted parties as defined by the Measures for the Administration of the Acquisition of and the top ten ordinary Listed Companies.shareholders Top ten ordinary shareholders involved in securities margin None trading (if any) (see Note 4) Participation of shareholders with a shareholding bigger than 5% the top ten shareholders and the top ten shareholders of non-restricted tradable shares in the lending of shares through refinancing □Applicable □Not applicable Changes in the top ten shareholders and the top ten shareholders of non-restricted tradable shares from the previous Period due to lending/return through refinancing □Applicable □Not applicable Indicate by tick mark whether any of the top ten ordinary shareholders or the top ten unrestricted 138Foshan Electrical ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.□Yes □No No such cases in the Reporting Period. 2. Controlling Shareholder Nature of the controlling shareholder: Controlled by a local state-owned legal person Type of the controlling shareholder: legal person Name of Legal Date of Unified social credit controlling representative/person Principal activity establishment code shareholder in charge Asset management and operation equity management and operation investment operation and management and re- investment of investment earnings; other business authorized by the state- owned assets administration of the Guangdong Province; contractor service for overseas projects and domestic projects calling for international bids contractor service for Guangdong survey consulting design Rising 23 December Lyu Yongzhong 91440000719283849E and supervision of the Holdings 1992 aforesaid overseas projects Group Co. Ltd.export of equipment and materials for the aforesaid overseas projects and dispatch of contract workers for the aforesaid overseas projects; property rental service; and exploitation sale and deep processing of rare earth (operated by the branches with the relevant licenses).(Operating activities that require approval in accordance with laws shall be subject to approval by relevant authorities.) Development production and sale of electronics IT Guangdong products and electrical Electronics 19 October appliances operation of Information Wang Jia 91440000725458764N 2000 electronic information Industry Group networks and computers Ltd.electronic computer technology service and 139Foshan Electrical Name of Legal Date of Unified social credit controlling representative/person Principal activity establishment code shareholder in charge equipment and venue rental service; sale of electronic computers and fittings electronic components electron devices and electrical machinery and equipment; wholesale of coal; energy performance contracting service development and consulting service of energy-saving technology and manufacture and installation of energy- saving equipment; parking lot operation (188 Yueken Road Tianhe District Guangzhou Guangdong Province P.R.China); import and export of goods; and training of professional and technical personnel (Limited to branch operation); .technical services. (Operating activities that require approval in accordance with laws shall be subject to approval by relevant authorities.) At the end of the Reporting Period Guangdong Rising Holdings Group Co. Ltd. and its parties acting in concert. directly or indirectly held the following stakes in other listed companies at Shareholdings home or abroad: of controlling 1. a 35.72% stake of 1335060698 shares in Zhongjin Lingnan Nonfemet (stock code: shareholder in 000060); other listed 2. a 26.37% stake of 291458228 A shares and H shares in Dongjiang Environment (stock companies at code: 002672); home or abroad 3. a 23.59% stake of 272894617 shares in Fenghua Advanced (stock code: 000636); in reporting 4. a 2.06% stake of 6946167 shares in Rising Nonferrous (stock code: 600259); period 5. For holdings in China Telecom (A+H shares) please refer to the data disclosed in China Telecom’s 2024 annual report.Change of the controlling shareholder in the Reporting Period: □Applicable □Not applicable No such cases in the Reporting Period. 3. Actual Controller and Its Acting-in-Concert Parties Nature of the actual controller: Local institution for state-owned assets management Type of the actual controller: Legal person 140Foshan Electrical Legal Name of actual Date of Unified social credit representative/person Principal activity controller establishment code in charge Asset management and operation equity management and operation investment operation and management and re- investment of investment earnings; other business authorized by the state- owned assets administration of the Guangdong Province; contractor service for overseas projects and domestic projects calling for international bids contractor service for survey consulting Guangdong design and supervision 23 December Rising Holdings Lyu Yongzhong 91440000719283849E of the aforesaid overseas 1992 Group Co. Ltd. projects export of equipment and materials for the aforesaid overseas projects and dispatch of contract workers for the aforesaid overseas projects; property rental service; and exploitation sale and deep processing of rare earth (operated by the branches with the relevant licenses).(Operating activities that require approval in accordance with laws shall be subject to approval by relevant authorities.) At the end of the Reporting Period Guangdong Rising Holdings Group Co. Ltd. and its parties acting in concert. directly or indirectly held the following stakes in other listed Shareholdings of companies at home or abroad: the actual 1. a 35.72% stake of 1335060698 shares in Zhongjin Lingnan Nonfemet (stock code: controller in 000060); other listed 2. a 26.37% stake of 291458228 A shares and H shares in Dongjiang Environment (stock companies at code: 002672); home or abroad 3. a 23.59% stake of 272894617 shares in Fenghua Advanced (stock code: 000636); in this Reporting 4.a 2.06% stake of 6946167 shares in Rising Nonferrous (stock code: 600259); Period 5. For holdings in China Telecom (A+H shares) please refer to the data disclosed in China Telecom’s 2024 annual report.Change of the actual controller during the Reporting Period: 141Foshan Electrical □Applicable □Not applicable No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company: People’s Government of Department of Finance of Guangdong Province Guangdong Province Guangdong Rising Holdings Group Co. Ltd.Guangdong Electronics Information Industry Rising Investment Development Limited Group Ltd.Hongkong Wah Shing Enterprise Limited Hongkong Wah Shing Holding Company Limited Foshan Electrical and Lighting Co. Ltd.Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□Applicable □Not applicable 4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held by Them □Applicable □Not applicable 5. Other 10% or Greater Corporate Shareholders □Applicable □Not applicable 6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller Reorganizer and Other Commitment Makers □Applicable □ Not applicable (1) During the Reporting Period in accordance with the Reply on the Approval of the Registration of Foshan Electrical and Lighting Co. Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the CSRC the Company issued 186783583 A shares to 13 specific objects of 142Foshan Electrical which Rising Holdings Group the Company’s de facto controller subscribed for 46695895 A shares by way of cash. The shares subscribed by Rising Holdings Group shall not be transferred within 18 months from the date of closing of the issue and the shares subscribed by other investors shall not be transferred within six months from the date of listing. In June 2024 the lock-up restrictions on 12 shareholders excluding Rising Holdings Group were lifted. (2) In June 2024 one of the Company’s controlling shareholders and concerted parties Electronics Group and Hongkong Wah Shing plan to increase their holdings in the Company’s stock within six months starting from June 2024. They have also committed not to reduce their holdings in the Company’s shares during the acquisition period and the statutory period. As at November 2024 the above-mentioned share acquisition plan has been completed and Electronics Group and Hongkong Wah Shing have not reduced their holdings in Foshan Lighting shares. (3) In November 2024 one of the Company’s controlling shareholders and concerted parties Electronics Group plans to increase its holdings in the Company’s stock within six months starting from November 2024. They have also committed not to reduce their holdings in the Company’s shares during the acquisition period and the statutory period.IV Specific Implementation of Share Repurchases in the Reporting Period Progress on any share repurchases □Applicable □Not applicable Progress on reducing the repurchased shares by means of centralized bidding: □Applicable □Not applicable 143Foshan Electrical Part VIII Preference Shares □Applicable □Not applicable No preference shares in the Reporting Period. 144Foshan Electrical Part IX Corporate Bonds □Applicable □Not applicable 145Foshan Electrical Part X Financial Statements I Auditor’s Report Type of the independent auditor’s opinion Unmodified unqualified opinion Date of signing this Report 23 April 2025 Name of the independent auditor WUYIGE Certified Public Accountants LLP No. of independent Auditor’s Report WUYIGE Auditor’s Report [2025] No. 22-00044 Names of certified public accountants He Xiaojuan and Wang Xiaohan Independent Auditor’s Report To the Shareholders of Foshan Electrical and Lighting Co. Ltd.I Opinion We have audited the financial statements of Foshan Electrical and Lighting Co. Ltd. (the “Company”) which comprise the consolidated balance sheets and balance sheet of the Company as the parent as of 31 December 2024 the consolidated income statement and income statement of the Company as the parent consolidated cash flow statement and cash flows statement of the Company as the parent and consolidated statement of changes in owners’ equity and statement of changes in owners’ equity of the Company as the parent for the year then ended as well as the notes to the financial statements.In our opinion the financial statements referred to above present fairly in all material respects the consolidated and parent company financial position of the Company at 31 December 2024 and the consolidated and the company as the parent operating results and cash flows for the year then ended in conformity with the Chinese Accounting Standards (CAS).II Basis for Opinion We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants.Our responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our other ethical responsibilities in accordance with the said Code of Ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III Key Audit Matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.(I). Revenue recognition 1. Description As stated in the Notes to the Financial Statements “V. (37) Revenue” and “Ⅶ. (61) OperatingRevenue and Operating Costs” the Company’s operating revenue for 2024 was RMB9048237647.14 of which the main business revenue was RMB8802435475.94 accounting for 97.28% of the total operating revenue. Due to the significance of the main business revenue and 146Foshan Electrical its role as a key performance indicator there is an inherent risk that management may manipulate revenue recognition to achieve specific targets or expectations. Therefore we consider revenue recognition as a key audit matter. 2. Response to auditing (1) Understanding and evaluating the design of internal control related to revenue recognition and testing the effectiveness of relevant internal control. (2) Checking whether the revenue recognition policy is in line with the requirements of the Accounting Standards for Business Enterprises and is consistently applied. (3) Selecting the revenue transactions recorded of this year to check invoices sales contracts outbound orders customer receipt records and export documents and assess whether the relevant revenue recognition conforms to the accounting policies of the Company for revenue recognition. (4) Selecting the revenue transactions recorded of this year to carry out independent confirmation procedures and confirm the authenticity of revenue. (5) Inquiring about the industrial and commercial registration information of major customers through public channels so as to ensure that major customers operate normally and their business scope conforms to the nature of the Company’s downstream customers. (6) Implementing analysis procedures for operating revenue including analysing the annual and monthly revenue of major products changes in major customers changes in sales prices and gross profit margins of major products and judging the rationality of changes in annual revenue and gross profit margins of this year. (7) Selecting the revenue transactions recorded around the balance sheet date checking the outbound order customer receipt records and other supporting documents to assess whether the revenue is recorded in the appropriate accounting period.(II). Provision for bad debt of accounts receivable 1. Description As stated in the Notes to the Financial Statements “V. (13) Accounts Receivable” and “ Ⅶ. (5)Accounts Receivable” as at December 31 2024 the book balance of accounts receivable in your company’s consolidated financial statement was RMB 2310731844.60 and the balance of bad debt provision was RMB 185064552.64. Determining the recoverability of accounts receivable requires management to identify impaired items and objective evidence assess the expected future cash flows that can be obtained and determine their present value involving significant accounting estimates and judgments by management. As the impairment of expected credit losses of accounts receivable is significant to the financial statements we consider the impairment of accounts receivable a key audit matter. 2. Audit response (1) Evaluated and tested the design and operating effectiveness of internal controls related to credit policies and receivables management. (2) Analysed the reasonableness of the accounting estimates for the provision for bad debts in respect of accounts receivable including the basis for determining the group of accounts receivable the judgment of materiality of amounts the separate provision for bad debts and the judgment of expected credit loss rates. 147Foshan Electrical (3) Analysed and calculated the ratio between the amount of provision for bad debts and the balance of accounts receivable at the balance sheet date compared the provision for bad debts with the actual amount incurred in prior periods and analysed the adequacy of the provision for bad debts for accounts receivable. (4) Obtained the table of the provisions for bad debts and checked whether the provision making method is implemented in accordance with the bad debts policy and whether the recalculation of the amount of provision for bad debts is accurate. (5) Evaluated the reasonableness of the provision for bad debts for accounts receivable by analysing the aging of the accounts receivable and the creditworthiness of the customers and by performing correspondence procedures for accounts receivable and checking the post-period recovery.iii. Goodwill impairment tests 1. Description On 28 February 2022 the Company acquired a 21.48% equity interest in Foshan NationStar Optoelectronics Co. Ltd. (hereinafter "NationStar Optoelectronics") resulting in goodwill of RMB405620123.64. The goodwill of NationStar Optoelectronics has a significant impact on its financial statements. As at 31 December 2024 a goodwill impairment provision of RMB142393052.68 had been made. As the goodwill of NationStar Optoelectronics has a significant impact on the financial statements and during goodwill impairment testing your management made reasonable judgements and identifies indications of impairment based on both internal and external information the calculation of recoverable amounts upon the occurrence of impairment indicators and at each year-end impairment test relies heavily on management’s estimates and assumptions.These estimates involve uncertainties and may be significantly influenced by the Management’s judgments about future markets and economic environments. Different estimates and assumptions adopted significantly influence the recoverable value of the goodwill appraised. As goodwill impairment testing involves significant judgments and estimates made by the Management it is considered a key audit matter. 2. Audit response (1) Understanding evaluating and testing the Company’s key internal controls related to goodwill impairment testing. (2) For goodwill arising from a business combination understanding the achievement of performance forecasts for the acquired company. (3) Discussing with the management the methodology of goodwill impairment testing including the asset group or combination of asset groups related to goodwill the reasonableness of assumptions such as fair value future earnings projections and discounted cash flow rates for each asset group or combination of asset groups and the judgment and assessment of the fair value or profitability of each asset group or combination of asset groups. (4) Evaluating the competency professional quality and objectivity of the external valuation experts engaged by management. 148Foshan Electrical (5) Discussing with the external valuation experts engaged by the management to understand the reasonableness of key assumptions used in the impairment test. (6) Where necessary with the assistance of internal valuation experts evaluate the reasonableness of the type of value valuation methodology and valuation parameters such as the discount rate of the asset valuation reports issued by external valuation experts.IV Other Information The Company’s management is responsible for the other information. The other information comprises all of the information included in the Company’s 2024 Annual Report other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial Statements The Company’s management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS and for designing implementing and maintaining such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI Auditor’s Responsibilities for Audit of Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CAS we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting 149Foshan Electrical a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control; (2) Understand the internal controls relevant to the audit in order to design appropriate audit procedures; (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management; (4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and Also based on the audit evidence we will draw a conclusion as to whether there is a material uncertainty about the matters or circumstances that may cast significant doubt about the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by CAS to draw users’ attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate we should express modified opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.However future events or conditions may cause the Company to cease to continue as a going concern; (5) Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation; (6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the Company audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance of the Company regarding the planned scope and timing of the audit and significant audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards (if applicable).From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.WUYIGE Certified Public Accountants LLP China Certified Public Accountant: He Xiaojuan (Project Partner) China · Beijing China Certified Public Accountant: Wang Xiaohan 23 April 2025 150Foshan Electrical 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. 31 December 2024 Unit: RMB Item 31 December 2024 1 January 2024 Current assets: Monetary assets 3209127437.31 3596049654.55 Settlement reserve Interbank loans granted Held-for-trading financial assets 43649820.47 152529775.41 Derivative financial assets Notes receivable 997281070.21 1057352267.60 Accounts receivable 2125667291.96 2093499280.40 Accounts receivable financing 352694866.89 443201960.02 Prepayments 24419779.12 34508638.92 Premiums receivable Reinsurance receivables Receivable reinsurance contract reserve Other receivables 70524265.25 49108300.85 Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 2025499361.38 1971171641.14 Including: Data resources Contract assets 1690021.95 4252013.94 Assets held for sale 17147339.84 17147339.84 Current portion of non-current assets Other current assets 261284776.85 109292399.14 Total current assets 9128986031.23 9528113271.81 Non-current assets: Loans and advances to customers Investments in debt obligations Investments in other debt obligations 1140022863.72 454822905.25 Long-term receivables Long-term equity investments 180300594.89 179188555.15 Investments in other equity instruments 726663613.42 699762746.35 Other non-current financial assets Investment property 793487046.02 163636347.41 Fixed assets 3646594206.04 3453214586.47 Construction in progress 263601705.89 1174533505.11 Productive living assets Oil and gas assets Right-of-use assets 22342999.34 8812320.64 Intangible assets 388587348.99 434549913.99 Including: Data resources Development costs Including: Data resources Goodwill 279438540.78 421831593.46 151Foshan Electrical Item 31 December 2024 1 January 2024 Long-term prepaid expense 253024495.82 190362699.25 Deferred income tax assets 135948224.91 106283766.95 Other non-current assets 200765785.59 119327703.18 Total non-current assets 8030777425.41 7406326643.21 Total assets 17159763456.64 16934439915.02 Current liabilities: Short-term borrowings 307141147.49 220019877.73 Borrowings from the central bank Interbank loans obtained Held-for-trading financial liabilities 275250.00 Derivative financial liabilities Notes payable 1930784817.62 2271174787.69 Accounts payable 2781965096.70 2875980206.64 Advances from customers 13531474.15 466872.69 Contract liabilities 119506301.48 235335693.28 Financial assets sold under repurchase agreements Customer deposits and interbank deposits Payables for acting trading of securities Payables for underwriting of securities Employee benefits payable 214651088.46 193830812.66 Taxes payable 107085160.39 42940157.30 Other payables 495717050.97 362491923.01 Including: Interest payable Dividends payable Handling charges and commissions payable Reinsurance payables Liabilities directly associated with assets held for sale Current portion of non-current liabilities 120574788.81 343914214.45 Other current liabilities 377156212.40 95008427.01 Total current liabilities 6468388388.47 6641162972.46 Non-current liabilities: Insurance contract reserve Long-term borrowings 222581930.54 253093421.29 Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 15023993.11 4310967.92 Long-term payables Long-term employee benefits payable Provisions 27430683.82 14277087.30 Deferred income 73739179.94 75185461.27 Deferred income tax liabilities 185921269.29 174806746.25 Other non-current liabilities 177917.63 205769.48 Total non-current liabilities 524874974.33 521879453.51 Total liabilities 6993263362.80 7163042425.97 Owners’ equity: Share capital 1548778230.00 1548778230.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 914336325.66 914336325.66 Less: Treasury stock 82165144.15 82165144.15 152Foshan Electrical Item 31 December 2024 1 January 2024 Other comprehensive income 383429155.02 360027027.59 Specific reserve 4782061.20 1213325.92 Surplus reserves 150097522.97 107944679.06 General reserve Retained earnings 3655046154.57 3435308364.11 Total equity attributable to owners of the 6574304305.276285442808.19 Company as the parent Non-controlling interests 3592195788.57 3485954680.86 Total owners’ equity 10166500093.84 9771397489.05 Total liabilities and owners’ equity 17159763456.64 16934439915.02 Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 2. Balance Sheet of the Company as the Parent Unit: RMB Item 31 December 2024 1 January 2024 Current assets: Monetary assets 1260985441.29 1756256289.35 Held-for-trading financial assets Derivative financial assets Notes receivable 71832245.04 90413382.59 Accounts receivable 745257268.31 840003427.41 Accounts receivable financing 67526522.26 105327382.82 Prepayments 71078813.72 7334575.29 Other receivables 944184445.88 558342534.44 Including: Interest receivable Dividends receivable Inventories 268069616.21 462793053.42 Including: Data resources Contract assets 1690021.95 4252013.94 Assets held for sale Current portion of non-current assets Other current assets 861413.93 8244786.97 Total current assets 3431485788.59 3832967446.23 Non-current assets: Investments in debt obligations Investments in other debt obligations 1047759858.61 454822905.25 Long-term receivables Long-term equity investments 2434177186.55 2502623981.06 Investments in other equity instruments 687581069.62 659684177.55 Other non-current financial assets Investment property 202079386.31 47163026.83 Fixed assets 599351996.15 651197430.25 Construction in progress 5884955.59 205106029.03 Productive living assets Oil and gas assets Right-of-use assets 8720969.67 5082521.44 Intangible assets 57347999.70 93932977.96 Including: Data resources Development costs Including: Data resources Goodwill Long-term prepaid expense 35546452.07 29727301.65 153Foshan Electrical Item 31 December 2024 1 January 2024 Deferred income tax assets 38910990.65 36285162.26 Other non-current assets 120611200.89 48331060.62 Total non-current assets 5237972065.81 4733956573.90 Total assets 8669457854.40 8566924020.13 Current liabilities: Short-term borrowings Held-for-trading financial liabilities 275250.00 Derivative financial liabilities Notes payable 864782508.32 982735414.37 Accounts payable 860893918.87 977444406.30 Advances from customers 13367850.30 Contract liabilities 58018288.88 145086858.16 Employee benefits payable 57145931.55 64958645.43 Taxes payable 75527406.17 20946142.07 Other payables 445875922.06 324137191.03 Including: Interest payable Dividends payable Liabilities directly associated with assets held for sale Current portion of non-current liabilities 3581230.44 1377403.64 Other current liabilities 50682086.68 82802283.98 Total current liabilities 2430150393.27 2599488344.98 Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 5516409.11 3705117.80 Long-term payables Long-term employee benefits payable Provisions 2110312.84 Deferred income Deferred income tax liabilities 68096992.10 63366691.06 Other non-current liabilities Total non-current liabilities 75723714.05 67071808.86 Total liabilities 2505874107.32 2666560153.84 Owners’ equity: Share capital 1548778230.00 1548778230.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 909058541.44 909058541.44 Less: Treasury stock 82165144.15 82165144.15 Other comprehensive income 383570431.32 359858073.06 Specific reserve 3170252.81 897781.74 Surplus reserves 381401592.21 339248748.30 Retained earnings 3019769843.45 2824687635.90 Total owners’ equity 6163583747.08 5900363866.29 Total liabilities and owners’ equity 8669457854.40 8566924020.13 Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 154Foshan Electrical 3. Consolidated Income Statement Unit: RMB Item 2024 2023 1. Revenue 9048237647.14 9057292003.90 Including: Operating revenue 9048237647.14 9057292003.90 Interest revenue Insurance premium income Handling charge and commission income 2. Costs and expenses 8774598215.99 8639746992.68 Including: Cost of sales 7367550901.49 7370742684.63 Interest costs Handling charge and commission expense Surrenders Net insurance claims paid Net amount provided as insurance contract reserve Expenditure on policy dividends Reinsurance premium expense Taxes and surcharges 79762647.52 72268419.87 Selling expense 349356200.73 315111171.93 Administrative expense 484757347.38 430544371.96 R&D expense 548670366.07 483579093.81 Finance costs -55499247.20 -32498749.52 Including: Interest expense 21576958.65 24128844.17 Interest revenue 51401372.58 47710201.22 Add: Other income 111434984.12 90204646.62 Return on investment (“-” for loss) 65850578.68 14598948.35 Including: Share of profit or loss of joint 1112039.741833621.59 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 fair value changes(“-” for loss) -713704.94 1129444.26 Credit impairment loss (“-” for loss) -29684596.41 -52131054.21 Asset impairment loss (“-” for loss) -207929562.68 -81268657.36 Asset disposal income (“-” for loss) 374492447.01 12719324.89 3. Operating profit (“-” for loss) 587089576.93 402797663.77 Add: Non-operating income 18436172.78 9540666.39 Less: Non-operating expense 4576737.83 6538763.70 4. Profit before tax (“-” for loss) 600949011.88 405799566.46 Less: Income tax expense 77463900.13 21126964.48 5. Net profit (“-” for net loss) 523485111.75 384672601.98 5.1 By operating continuity 5.1.1 Net profit from continuing operations 523485111.75384672601.98 (“-” 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 446184021.97290357652.22 the Company as the parent 5.2.1 Net profit attributable to non- 77301089.7894314949.76 controlling interests 6. Other comprehensive income net of tax 23135043.59 -137433230.11 155Foshan Electrical Item 2024 2023 Attributable to owners of the Company as 23402127.43-138113991.11 the parent 6.1 Items that will not be reclassified to 23712358.26-138930211.73 profit or loss 6.1.1 Changes caused by remeasurements on defined benefit schemes 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method 6.1.3 Fair value changes of investments in 23712358.26-138930211.73 other equity instruments 6.1.4 Fair value changes of enterprise’s own credit risk 6.1.5 Other 6.2 Items that will be reclassified to profit -310230.83816220.62 or loss 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method 6.2.2 Fair value changes of investments in other debt obligations 6.2.3 Other comprehensive income arising from the reclassification of financial assets 6.2.4 Credit impairment allowance for investments in other debt obligations 6.2.5 Reserve for cash flows hedges 6.2.6 Differences arising from the translation of foreign currency- -310230.83 816220.62 denominated financial statements 6.2.7 Other Attributable to non-controlling interests -267083.84 680761.00 7. Total comprehensive income 546620155.34 247239371.87 Attributable to owners of the Company as 469586149.40152243661.11 the parent Attributable to non-controlling interests 77034005.94 94995710.76 8. Earnings per share 8.1 Basic earnings per share 0.2905 0.2128 8.2 Diluted earnings per share 0.2881 0.2108 Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before the combinations was RMB0.00 with the amount for last year being RMB0.00.Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 4. Income Statement of the Company as the Parent Unit: RMB Item 2024 2023 1. Operating revenue 3245704296.00 3370500210.73 Less: Cost of sales 2510354864.55 2670075179.86 Taxes and surcharges 30174651.89 28696224.90 Selling expense 228778506.21 201697475.29 Administrative expense 174979539.01 170906350.75 156Foshan Electrical Item 2024 2023 R&D expense 147257581.23 126839317.28 Finance costs -30483466.93 -15149738.19 Including: Interest expense 420144.80 3768074.03 Interest revenue 15000167.87 12619606.34 Add: Other income 16862459.80 14162829.17 Return on investment (“-” for loss) 94498689.59 24345065.94 Including: Share of profit or loss of joint 1112039.741833621.59 ventures and associates Income from the derecognition of financial assets at amortized cost (“-” for loss) Net gain on exposure hedges (“-” for loss) Gain on fair value changes(“-” for loss) -275250.00 Credit impairment loss (“-” for loss) -20122940.28 -32773855.07 Asset impairment loss (“-” for loss) -133838658.95 -28910470.10 Asset disposal income (“-” for loss) 359998517.07 12469694.01 2. Operating profit (“-” for loss) 501765437.27 176728664.79 Add: Non-operating income 2218901.52 365819.08 Less: Non-operating expense 1757649.60 1144051.24 3. Profit before tax (“-” for loss) 502226689.19 175950432.63 Less: Income tax expense 80698250.13 10093913.53 4. Net profit (“-” for net loss) 421528439.06 165856519.10 4.1 Net profit from continuing operations 421528439.06165856519.10 (“-” for net loss) 4.2 Net profit from discontinued operations (“-” for net loss) 5. Other comprehensive income net of tax 23712358.26 -138930211.73 6.1 Items that will not be reclassified to 23712358.26-138930211.73 profit or loss 6.1.1 Changes caused by remeasurements on defined benefit schemes 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method 6.1.3 Fair value changes of investments in 23712358.26-138930211.73 other equity instruments 6.1.4 Fair value changes of enterprise’s own credit risk 6.1.5 Other 6.2 Items that will be reclassified to profit or loss 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method 6.2.2 Fair value changes of investments in other debt obligations 6.2.3 Other comprehensive income arising from the reclassification of financial assets 6.2.4 Credit impairment allowance for investments in other debt obligations 6.2.5 Reserve for cash flows hedges 6.2.6 Differences arising from the translation of foreign currency- denominated financial statements 6.2.7 Other 6. Total comprehensive income 445240797.32 26926307.37 157Foshan Electrical Item 2024 2023 7. Earnings per share 8.1 Basic earnings per share 8.2 Diluted earnings per share Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 5. Consolidated Cash Flow Statement Unit: RMB Item 2024 2023 1. Cash flows from operating activities: Proceeds from sale of commodities and 8471959981.118065012419.58 rendering of services Net increase in customer deposits and interbank deposits Net increase in borrowings from the central bank Net increase in loans from other financial institutions Premiums received on original insurance contracts Net proceeds from reinsurance Net increase in deposits and investments of policy holders Interest handling charges and commissions received Net increase in interbank loans obtained Net increase in proceeds from repurchase transactions Net proceeds from acting trading of securities Tax rebates 191537811.87 229414220.39 Cash generated from other operating 220938132.01219221813.77 activities Subtotal of cash generated from operating 8884435924.998513648453.74 activities Payments for commodities and services 6057433876.86 5219988965.35 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 1452338519.97 1391392105.83 Taxes paid 357515353.88 395513858.13 Cash used in other operating activities 419032838.40 332363545.45 Subtotal of cash used in operating activities 8286320589.11 7339258474.76 Net cash flows from operating activities 598115335.88 1174389978.98 2. Cash flows from investing activities: Proceeds from disinvestment 630996025.00 380981292.12 158Foshan Electrical Item 2024 2023 Return on investment 35963824.31 27200412.45 Net proceeds from the disposal of fixed assets intangible assets and other long- 392928847.83 15079869.64 lived assets Net proceeds from the disposal of subsidiaries and other business units Cash generated from other investing 80711.83 activities Subtotal of cash generated from investing 1059888697.14423342286.04 activities Payments for the acquisition of fixed assets intangible assets and other long- 368259788.54 376549919.12 lived assets Payments for investments 1306010850.00 720700000.00 Net increase in pledged loans granted Net payments for the acquisition of 101002225.68 subsidiaries and other business units Cash used in other investing activities 33612950.00 Subtotal of cash used in investing activities 1775272864.22 1130862869.12 Net cash flows from investing activities -715384167.08 -707520583.08 3. Cash flows from financing activities: Capital contributions received 1091377596.17 Including: Capital contributions by non- controlling interests to subsidiaries Borrowings raised 438828726.86 297756038.67 Cash generated from other financing 6317233.7815469794.51 activities Subtotal of cash generated from financing 445145960.641404603429.35 activities Repayment of borrowings 524289910.93 391955216.77 Interest and dividends paid 237329833.00 191158501.03 Including: Dividends paid by subsidiaries 35144021.0932130255.23 to non-controlling interests Cash used in other financing activities 7129048.59 138043774.42 Subtotal of cash used in financing activities 768748792.52 721157492.22 Net cash flows from financing activities -323602831.88 683445937.13 4. Effect of foreign exchange rates changes 24000739.614966303.59 on cash and cash equivalents 5. Net increase in cash and cash equivalents -416870923.47 1155281636.62 Add: Cash and cash equivalents beginning 3101252943.881945971307.26 of the period 6. Cash and cash equivalents end of the 2684382020.413101252943.88 period Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 6. Cash Flow Statement of the Company as the Parent Unit: RMB Item 2024 2023 1. Cash flows from operating activities: Proceeds from sale of commodities and 3127149264.783172331505.84 rendering of services Tax rebates 97198208.30 113727709.96 159Foshan Electrical Item 2024 2023 Cash generated from other operating 76841817.5671968034.73 activities Subtotal of cash generated from operating 3301189290.643358027250.53 activities Payments for commodities and services 2300853714.93 2003568260.17 Cash paid to and for employees 434395756.21 465614131.12 Taxes paid 143240367.24 88243833.94 Cash used in other operating activities 167831948.98 135741826.48 Subtotal of cash used in operating activities 3046321787.36 2693168051.71 Net cash flows from operating activities 254867503.28 664859198.82 2. Cash flows from investing activities: Proceeds from disinvestment 160000000.00 Return on investment 43963853.10 36858062.04 Net proceeds from the disposal of fixed assets intangible assets and other long- 376617558.15 10799817.00 lived assets Net proceeds from the disposal of subsidiaries and other business units Cash generated from other investing 36354374.99 activities Subtotal of cash generated from investing 616935786.2447657879.04 activities Payments for the acquisition of fixed assets intangible assets and other long- 78104450.17 51703074.73 lived assets Payments for investments 784920000.00 250000000.00 Net payments for the acquisition of subsidiaries and other business units Cash used in other investing activities 363883363.61 33612950.00 Subtotal of cash used in investing activities 1226907813.78 335316024.73 Net cash flows from investing activities -609972027.54 -287658145.69 3. Cash flows from financing activities: Capital contributions received 1091377596.17 Borrowings raised Cash generated from other financing activities Subtotal of cash generated from financing 1091377596.17 activities Repayment of borrowings 178893000.00 Interest and dividends paid 185077493.16 140340441.08 Cash used in other financing activities 1261522.66 Subtotal of cash used in financing activities 185077493.16 320494963.74 Net cash flows from financing activities -185077493.16 770882632.43 4. Effect of foreign exchange rates changes 14253014.98936838.90 on cash and cash equivalents 5. Net increase in cash and cash equivalents -525929002.44 1149020524.46 Add: Cash and cash equivalents beginning 1610082668.66461062144.20 of the period 6. Cash and cash equivalents end of the 1084153666.221610082668.66 period Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 160Foshan Electrical 7. Consolidated Statements of Changes in Owners’ Equity 2024 Unit: RMB 2024 Equity attributable to owners of the Company as the parent Other equity Non- Total Less: Other Speci Surpl Gene Retain Item Share instruments Capital controlli owners Treasu comprehe fic us ral ed Oth Subtot capita Prefer Perpet reserve ng ’ ry nsive reser reser reser earning er al l red ual Other s interests equity stock income ve ves ve s shares bonds 107 1. Balance 154 12 3435 6285 9771 914382169434859 as at the 877 360027 13 308 442 397 363251444654680. end of the 823 027.59 325 364.1 808.1 489.0 5.66.1579.86 prior year 0.00 .92 1 9 5 06 Add: Adjustmen t for change in accounting policy Adjustmen t for correction of previous error Other 107 II. Balance 154 12 3435 6285 9771 914382169434859 as at the 877 360027 13 308 442 397 363251444654680. beginning 823 027.59 325 364.1 808.1 489.0 5.66.1579.86 of the year 0.00 .92 1 9 5 06 III. 42 Increase/ 35 15221972888106243951 decrease in 234021 68 84377961491107.70260 the period 27.43 735 3.90.467.0814.79 (“-” for .28 1 decrease) i. Total 446146955466 comprehen 234021 77034 840286142015 sive 27.43 005.94 1.979.405.34 income ii. Capital increased 5961 59612 and 2637 637.51 reduced by .51 owners 1. Ordinary shares increased by owners 2. Capital increased by holders 161Foshan Electrical of other equity instrument s 3. Share- based payments included in owners’ equity 5961 59612 4. Other 2637 637.51.51 42 --- iii. Profit 152 - 226418422194 distributio 84 35144 462393383740 n 3.9 021.09 1.517.608.69 1 1.42 - Appropriat 152 4215 ion to 84 2843 surplus 3.9.91 reserves 1 2. Appropriat ion to general reserve 3.Appropri --- ation to - 184218422194 owners (or 35144 933893383740 shareholde 021.09 7.607.608.69 rs) 4. Other iv.Transfers within owners’ equity 1. Increase in capital (or share capital) from capital reserves 2. Increase in capital (or share capital) from surplus reserves 3. Loss offset by surplus reserves 162Foshan Electrical 4. Changes in defined benefit schemes transferred to retained earnings 5. Other comprehen sive income transferred to retained earnings 6. Other 35 35688307 v. Specific 68 47384 735.220. reserve 735 85.35 2863.28 18 1. Increase 945 1894 3026 11323 in the 51 5510 9038 527.74 period 0.3 .32 .06 2 15 37615372196 2. Used in 65850 7767751817 the period 42.39 5.0.04.43 4 vi. Other IV. 150 15447365565741016 Balance as 9143 8216 09 35921 877383429820463046500 at the end 3632 5144 75 95788. 823155.02061154.5305.2093. of the 5.66 .15 22. 57 0.00.207784 period 97 2023 Unit: RMB 2023 Equity attributable to owners of the Company as the parent Other equity Non- Total Less: Other Speci Surpl Gene Retain Item Share instruments Capital controlli owners Treasu comprehe fic us ral ed Oth Subtot capita Prefer Perpet reserve ng ’ ry nsive reser reser reser earning er al l red ual Other s interests equity stock income ve ves ve s shares bonds 91 I. Balance 136 3296 5173 8600 7245821635934272 as at the 199 498141 435 011 245 971.51440233703. end of the 464 018.70 828.5 348.7 052.4 54.157.168 prior year 7.00 0 4 2 5 Add: Adjustmen t for change in accounting 163Foshan Electrical policy Adjustmen t for correction of previous error Other 91 II. Balance 136 3296 5173 8600 7245821635934272 as at the 199 498141 435 011 245 971.51440233703. beginning 464 018.70 828.5 348.7 052.4 54.157.168 of the year 7.00 0 4 2 5 III. 16 Increase/ 186 12 1112 1171 9070-5851388 decrease in 783 13 431 58720 152 9035138113657253 the period 583. 325 459.4 977.18 436.6 4.12991.111.95.61 (“-” for 00 .92 5 3 1 decrease) i. Total -290315222472 comprehen 94995 138113576543663937 sive 710.76 991.112.221.111.87 income ii. Capital 18610931088 increased 9070 - 783873415 and 9035 54584 583.937.1488.8 reduced by 4.12 48.30 0022 owners 1. Ordinary 186 1088 1088 9016 shares 783 415 415 3190 increased 583. 488.8 488.8 5.82 by owners 00 2 2 2. Capital increased by holders of other equity instrument s 3. Share- based payments included in owners’ equity 54585458- 4. Other 448. 448. 54584 303048.30 16 --- iii. Profit 585 - 151413481668 distributio 65 31969 851199466921 n 1.9 754.99 6.614.709.69 1 1.16 - Appropriat 585 1658 ion to 65 5651 surplus 1.9.91 reserves 1 164Foshan Electrical 2. Appropriat ion to general reserve 3. Appropriat - - - - ion to 1348 1348 1668 31969 owners (or 9946 9946 6921 754.99 shareholde 4.70 4.70 9.69 rs) 4. Other iv.Transfers within owners’ equity 1. Increase in capital (or share capital) from capital reserves 2. Increase in capital (or share capital) from surplus reserves 3. Loss offset by surplus reserves 4. Changes in defined benefit schemes transferred to retained earnings 5. Other comprehen sive income transferred to retained earnings 6. Other 12 12132366 v. Specific 13 11534 325.795. reserve 325 69.71 9263.92 1. Increase 17 1746 2875 11283 in the 469 9664 2916 252.79 period 66 .05 .84 165Foshan Electrical 4.0 5 16 25616252638 2. Used in 10129 3363386121 the period 783.08 8.1.13.21 vi. Other IV. 107 15412343562859771 Balance as 9143 8216 94 34859 87736002713308442397 at the end 3632 5144 46 54680. 823027.59325364.1808.1489.0 of the 5.66 .15 79. 86 0.00.92195 period 06 Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi 8. Statements of Changes in Owners’ Equity of the Company as the Parent 2024 Unit: RMB 2024 Other equity instruments Other Capital Less: Total Item Share Preferr Perpetu comprehen Specific Surplus Retained reserve Treasur Other owners’ capital ed al Other sive reserve reserves earnings s y stock equity shares bonds income I. Balance as 154890908216339242824659003 at the end of 359858 89778 778258545144.8748.387635.63866. the prior 073.06 1.74 30.001.441509029 year Add: Adjustment for change in accounting policy Adjustment for correction of previous error Other II. Balance 154890908216339242824659003 as at the 359858 89778 778258545144.8748.387635.63866. beginning of 073.06 1.74 30.001.441509029 the year III. Increase/ decrease in 19508 26321 2371232272442152 the period 2207.5 9880.7 58.2671.07843.91 (“-” for 5 9 decrease) i. Total 42152 44524 237123 comprehensi 8439.0 0797.3 58.26 ve income 6 2 ii. Capital increased and reduced 166Foshan Electrical by owners 1. Ordinary shares increased by owners 2. Capital increased by holders of other equity instruments 3. Share- based payments included in owners’ equity 4. Other -- iii. Profit 42152 22644 18429 distribution 843.91 6231.5 3387.6 10 1.Appropriat - ion to 42152 42152 surplus 843.91 843.91 reserves 2. Appropriatio - - n to owners 18429 18429 (or 3387.6 3387.6 shareholders 0 0 ) 3. Other iv. Transfers within owners’ equity 1. Increase in capital (or share capital) from capital reserves 2. Increase in capital (or share capital) from surplus reserves 3. Loss offset by surplus reserves 4. Changes in defined benefit schemes transferred 167Foshan Electrical to retained earnings 5. Other comprehensi ve income transferred to retained earnings 6. Other v. Specific 22724 22724 reserve 71.07 71.07 1. Increase 11325 11325 in the period 253.53 253.53 2. Used in 90527 90527 the period 82.46 82.46 vi. Other IV. Balance 1548 9090 8216 38140 30197 61635 38357031702 as at the end 7782 5854 5144. 1592.2 69843. 83747. 431.3252.81 of the period 30.00 1.44 15 1 45 08 2023 Unit: RMB 2023 Other equity instruments Other Capital Less: Total Item Share Preferr Perpetu comprehen Specific Surplus Retained reserve Treasur Other owners’ capital ed al Other sive reserve reserves earnings s y stock equity shares bonds income I. Balance as 136174268216322662810349190 at the end of 498788 9946635.65144.3096.316233.23753. the prior 284.79 47.0021594106 year Add: Adjustment for change in accounting policy Adjustment for correction of previous error Other II. Balance 136174268216322662810349190 as at the 498788 9946635.65144.3096.316233.23753. beginning of 284.79 47.0021594106 the year III. Increase/ decrease in 1867 9016 - 98134 897781658514371 the period 8358 3190 138930 0113.2 1.74651.91402.49 (“-” for 3.00 5.82 211.73 3 decrease) i. Total - 16585 26926 comprehensi 138930 6519.1 307.37 ve income 211.73 0 ii. Capital 1867 9016 10884 168Foshan Electrical increased 8358 3190 15488.and reduced 3.00 5.82 82 by owners 1. Ordinary 1867901610884 shares 8358319015488. increased by 3.005.8282 owners 2. Capital increased by holders of other equity instruments 3. Share- based payments included in owners’ equity 4. Other -- iii. Profit 16585 15148 13489 distribution 651.91 5116.6 9464.7 10 1. - Appropriatio 16585 16585 n to surplus 651.91 651.91 reserves 2. Appropriatio - - n to owners 13489 13489 (or 9464.7 9464.7 shareholders 0 0 ) 3. Other iv. Transfers within owners’ equity 1. Increase in capital (or share capital) from capital reserves 2. Increase in capital (or share capital) from surplus reserves 3. Loss offset by surplus reserves 4. Changes in defined benefit 169Foshan Electrical schemes transferred to retained earnings 5. Other comprehensi ve income transferred to retained earnings 6. Other v. Specific 89778 89778 reserve 1.74 1.74 1. Increase 80108 80108 in the period 91.57 91.57 2. Used in 71131 71131 the period 09.83 09.83 vi. Other IV. Balance 1548 9090 8216 33924 28246 59003 35985889778 as at the end 7782 5854 5144. 8748.3 87635. 63866. 073.061.74 of the period 30.00 1.44 15 0 90 29 Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting Department Head: Li Yizhi III Company Profile (I) Basic information Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as “the Company”) a joint-stock limited company jointly founded by Foshan Electrical and Lighting Company Nanhai Wuzhuang Color Glazed Brick Field and Foshan Poyang Printing Industrial Co. Ltd. on 20 October 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 CSRC 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 SZSE for trade on 23 November 1993. The Company was approved to issue 50 million B shares on 23 July 1995. And as approved to change into a foreign-invested stock limited company on 26 August 1996 by WJMZEHZ [1996] No. 466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China. On 11 December 2000 as approved by CSRC with ZJGSZ [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. The Company held the 26th Meeting of the 9th Board of Directors on 14 January 2022 where the Proposal on Cancelling Some Shares of the Company’s Repurchase Special Securities Account was deliberated and adopted. The repurchased 13 million A shares were used for the equity incentive plan. The remaining 18952995 A shares and the repurchased 18398512 B shares totaling 37351507 shares were all deregistered. On 8 February 2022 it was confirmed by Shenzhen Branch of CSDC that the number of repurchased public shares canceled this time was 37351507 accounting for 2.67% of the total share capital of the Company before the cancellation 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 170Foshan Electrical changed to RMB1361994647.00. On 14 March 2023 the Company held the 39th Meeting of the Ninth Session of the Board of Directors and considered and passed the Proposal on the Company’s Compliance with the Conditions for the Issuance of A Shares to Specific Objects and the Board of Directors agreed that the Company should apply for the issuance of shares to specific objects to the SZSE. According to the resolutions passed at the 39th Meeting of the Ninth Board of Directors and the First Extraordinary General Meeting of 2023 the Company applied for the issuance of ordinary shares (A shares) not exceeding 30% of the total share capital i.e. not exceeding 408598394 shares to specific investors and 186783583 shares were actually issued. 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 and Two Hundred and Thirty (RMB1548778230.00).Credibility code of the Company: 91440000190352575W.Legal representative: Mr. Wan Shan The Company’s registered address is No. 64 Fenjiang North Road Chancheng District Foshan City and the office address is No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province.Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products electrical products vehicle lamp products epitaxy and chip products LED packaging and component products trade and other products.The business term of the Company is long-term which was calculated from the date of issuance of License of Business Corporation.(II) Authorized issuer and date of approval of the financial report The Financial Report was approved and authorized for issue by the Board of Directors on 23 April 2025. (III) Consolidation scope of financial statements The Company’s consolidated financial statements for the reporting period include 13 subsidiaries: Foshan Electrical and Lighting Co. Ltd. FSL Chanchang Lighting Co. Ltd. (“Chanchang”) Foshan Taimei Times Lamp Co. Ltd. (“Taimei”) Nanjing Fozhao Lighting Components Manufacturing Co.Ltd. (“Nanjing Fozhao”) Foshan Electrical & Lighting (Xinxiang) Co. Ltd. (“Xinxiang”) Foshan Fozhao Zhicheng Technology Co. Ltd. (“Zhicheng”) FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) Foshan Haolaite Lighting Co. Ltd. (“Haolaite”) Fozhao (Hainan) Technology Co. Ltd.(“Hainan Technology”) Foshan Kelian New Energy Technology Co. Ltd. (“Foshan Kelian”) Nanning Liaowang Auto Lamp Co. Ltd. (“Liaowang Auto Lamp”) Foshan NationStar Optoelectronics Co. Ltd. (“NationStar Optoelectronics”) Foshan Sigma Venture Capital Co. Ltd.(“Sigma”) and Fozhao Huaguang (Maoming) Technology Co. Ltd. (“Fozhao Huaguang”). A totalof 14 sub-subsidiaries are also involved: Liuzhou Guige Fuxuan Technology Co. Ltd. (“LiuzhouOptoelectronics”) Liuzhou Guige Foreshine Technology Co. Ltd. (“Liuzhou Foreshine”) Chongqing Guinuo Lighting Technology Co. Ltd. (“Chongqing Guinuo”) Qingdao Guige Lighting Technology Co. Ltd. (“Qingdao Optoelectronics”) Indonesia Liaowang Auto Lamp Co. Ltd.(“Indonesia Liaowang”) Liaowang Auto Lamp (Suzhou) Co. Ltd. (“Suzhou Liaowang”) Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (“Hule Electric Equipment”) Foshan NationStar Electronic Manufacturing Co. Ltd. (“NationStar Electronic Manufacturing”) Foshan Guoxing Electronic Manufacture Co. Ltd. Nanyang Baoli Vanadium Industry Co. Ltd. (“Baoli Vanadium”) Guangdong New Electronics Information Ltd. (“New Electronic Information”) Guangdong Fenghua Semiconductor Technology Co. Ltd. (“Fenghua Semiconductor”) NationStar Optoelectronics 171Foshan Electrical (Germany) Co. Ltd. (“Germany NationStar”) and Gaozhou NationStar Lighting Technology Co.Ltd. (“Gaozhou NationStar”). Additionally the Company has 1 subsidiary of a sub-subsidiary which is Shanghai Lelaite Electrical Equipment Co. Ltd. (“Shanghai Leilite”).Given that Nanyang Baoli Vanadium Industry Co. Ltd. (Baoli Vanadium) is in a state of non- continuing operations the Financial Statements 2024 of Baoli Vanadium were formulated at fair value or costs whichever was lower.The scope of consolidation for the financial statements this period has increased compared to the previous period with the addition of one subsidiary Fozhao Huaguang three sub-subsidiaries Suzhou Liaowang Gaozhou NationStar Hule Electric Equipment and one subsidiary of a sub-subsidiary Shanghai Leilite. For more details please refer to Note IX “Changes in the Scope ofConsolidation” and Note X “Equity in Other Entities”.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 CSRC and on the basis of the significant accounting policies and accounting estimates formulated. 2. Going Concern The Company has the ability to continue as a going concern for at least 12 months from the end of the Reporting Period and there are no material matters affecting its ability to continue as a going concern.V Important Accounting Policies and Estimations Reminders of the specific accounting policies and accounting estimations: The following significant accounting policies and accounting estimates of the Company have been formulated in accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accounting policies in the ASBE. 1. Statement of Compliance with the Accounting Standards for Business Enterprises The financial statements prepared by the Company are in compliance with the ASBEs which factually and completely present the Company’s and the consolidated financial positions on 31 December 2024 business results and cash flows as well as other relevant information for 2024. 2. Fiscal Year A fiscal year starts on 1 January and ends on 31 December 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. 172Foshan Electrical 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 The individual amount accounts for more than 10% of Significant accounts receivable with bad debt provision the account receivable or bad debt provision and the separately accrued amount exceeds RMB10 million.Individual amount accounts for more than 10% of the Bad debt provision of accounts receivable collected or current reversal of bad debt provision and the amount reversed with significant amount in this year exceeds RMB10 million.The individual amount accounts for more than 10% of Significant verification of accounts receivable in this the account receivable or bad debt provision and the year amount exceeds RMB10 million.The ending balance of an individual construction in Significant construction in progress progress accounts for more than 10% and the amount exceeds RMB50 million.The individual amount accounts for more than 10% of Significant accounts payable/other payables over one accounts payable over one year/other payables and the year amount exceeds RMB10 million.Cash flows of an individual investment accounts for Significant cash flows generated from investing more than 3% of the net assets at the period-end and activities the amount exceeds RMB100 million.Minority shareholders hold more than 5% interest and any of the items of total assets net assets operating Significant non-wholly-owned subsidiary 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 loss is calculated in Significant joint ventures or associated enterprises absolute terms) accounts for more than 10% of the net profit of consolidated financial statements.The influence of individual amount on net profit Significant debt reorganization exceeds 10%.The amount of an individual commitment exceeds Significant commitments RMB10 million. 173Foshan Electrical Item Materiality criteria The amount of money involved in cases exceeds Significant contingency RMB10 million. 6. Accounting Methods for Business Combination Involving Enterprises under and not under the Same Control 1. Business combination under the same control In case of a long-term equity investment resulting from a business combination under the same control if the acquirer pays cash transfers non-cash assets assumes debts as merger consideration the share of the Company’s equity of the acquiree obtained on combination date in the carrying value of the financial statements of the ultimate controlling party is deemed as an initial investment cost of long- term equity investments. If the acquirer issues equity instruments as consideration for a combination the total par value of the shares issued is treated as equity. The difference between the initial investment cost of a long-term equity investment and the carrying amount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted to capital surplus; if capital surplus is not sufficient to offset the difference retained earnings shall be adjusted. 2. Business combination not involving entities under the same control In case of business combination involving enterprises not under the same control the combination costs shall be the total fair values of the assets paid liabilities incurred or assumed and the equity securities issued on the date of acquisition by the acquirer in exchange for control on the acquiree.Identifiable assets liabilities and contingent liabilities of the acquiree acquired in a business combination not under the same control that qualify for recognition are measured at fair value on the date of acquisition. The acquirer recognizes as goodwill the difference between the combination costs and the fair value share of the identifiable net assets of the acquiree obtained in the combination. If the combination costs are less than the fair value share of the acquiree’s identifiable net assets obtained in the combination the difference between the combination costs still less than the fair value share of the acquiree’s identifiable net assets obtained in the combination after review shall be included in the non-operating revenue for the current period. 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 174Foshan Electrical subsidiaries and between subsidiaries. The share of owners’ equity of subsidiaries that do not belong to the Company is presented as minority interests in the consolidated balance sheet under the item of shareholders’ equity as “minority interests”. Long-term equity investments held by subsidiaries are deemed as the Company’s treasury stock and presented as a deduction from shareholders’ equity in the consolidated balance sheet under the item “Less: treasury stock”. (3) Accounting treatment of the acquisition of subsidiaries through consolidation For subsidiaries acquired through a business combination under common control the assets liabilities operating results and cash flows are included in the consolidated financial statements from the beginning of the period of consolidation as if the business combination had occurred at the time the ultimate controlling party began to exercise control; for subsidiaries acquired through a business combination not under the same control the fair value of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidated financial statements. The financial statements are adjusted based on the fair value of the identifiable net assets on the acquisition date. (4) Accounting treatment of disposal of subsidiaries If a long-term equity investment in a subsidiary is partially disposed of without loss of control the difference between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is adjusted to capital surplus in the consolidated financial statements and retained earnings is adjusted if the capital surplus is not sufficient to cover the reduction. If the control over the investee is lost due to the disposal of part of equity investments the residual equity are re-measured at fair value on the date of loss of control. The aggregate of the consideration obtained by disposing of the equity and the fair value of the remaining equity less the portion of the net assets of the subsidiary that has been measured as calculated at the original shareholding proportion from the acquisition date or combination date is recognized in profit and loss of the current period on investments in which the control is lost and goodwill shall be offset. Other comprehensive income related to the equity investments in the former subsidiary shall be included in the return on investment for the current period when the Company lost the control. 8. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations 1. Classification of joint arrangements Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reached through separate entities are classified as joint operations. Separate entities refer to entities with separate identifiable financial structures including separate legal entities and entities that do not have legal entity status but are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint ventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of the joint venture parties in the joint venture arrangement the joint venture parties shall reassess the classification of the joint venture arrangement. 2. Accounting treatment of joint operations As a participant in a joint operation the Company recognizes the following items related to its share of interest in the joint operations. It accounts for them following the relevant Accounting Standards for Business Enterprises: Recognition of assets or liabilities held separately and recognition of assets or liabilities held jointly on a share basis; recognition of revenue from the sale of the share of output from the joint operation to which it is entitled; recognition of revenue from the joint operation arising from the sale of output on a share basis; and recognition of expenses incurred separately and recognition of expenses incurred in the joint operation on a share basis. 175Foshan Electrical 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 cash flow statement represents the Company’s cash on hand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of the cash flow statement are investments that are held for a short period of time are highly liquid are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value. 10. Translation of Transactions and Financial Statements Denominated in Foreign Currencies 1. Conversion of foreign currency business The Company records foreign currency transactions using the spot exchange rate on the transaction date or the nearest exchange rate to the transaction date to convert into the functional currency. On the balance sheet date the monetary items in foreign currencies are translated at the spot exchange rate. Exchange differences arising from the difference between the spot rate on that date and the spot rate at initial recognition or on the previous balance sheet date are recognized in profit or loss except for exchange differences on special borrowings in foreign currencies that qualify for capitalization which are capitalized in the period in which they are capitalized and charged to the cost of the related assets. Non-monetary items measured at historical costs in foreign currencies are still translated at the spot exchange rate on the transaction date with the amount of standard currency for accounting unchanged. Non-monetary items measured at fair value in foreign currencies are translated at the spot exchange rate on the date when the fair value is determined. The difference between the amount of standard currency for accounting after translation and the original amount shall be treated as a fair value change (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. 176Foshan Electrical 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 flows characteristics of financial assets the Company classifies its financial assets into the following three categories: a) Financial assets are measured at the amortized cost. The business model of the Company for managing such financial assets aims at obtaining contractual cash flows and the characteristics of contractual cash flows of such financial assets are basically the same as basic borrowing arrangement namely the cash flow arising on a specific date which are solely payments of principal and interest on the principal amount outstanding. Interest income is subsequently recognized on such financial assets on the basis of the effective interest method; b) Financial assets at fair value and changes included in other comprehensive income The business model of the Company for managing such financial assets aims at receiving contractual cash flows as well as selling and the characteristics of contractual cash flow of such financial assets are basically the same as basic borrowing arrangement. Such financial assets are subsequently measured at fair value with changes recognized in other comprehensive income except for interest income impairment losses or gains calculated in accordance with the effective interest method and foreign exchange gains or losses recognized in the current profit or loss; c) Financial assets measured at fair value through profit or loss for the current period Financial assets held that are not classified as at amortized cost and at fair value through other comprehensive income are measured at fair value with gains or losses (including interest and dividend income) recognized in profit or loss for the current period. On initial recognition a financial asset may be irrevocably designated as financial asset at fair value through profit or loss if the accounting mismatch can be eliminated or reduced. The designation shall not be revoked once made.For instruments in non-business equity instruments the Company may irrevocably assign such investments as financial assets (equity instruments) measured at fair value through other comprehensive income at initial recognition. The assignment is made based on investments by item and the relevant investments meet the definition of an equity instrument from the issuer’s perspective.Such financial assets are subsequently measured at fair value and except for dividends received (except for the portion which forms part of investment cost recovered) which are recognized in profit or loss all other related gains and losses are recognized in other comprehensive income and are not subsequently transferred to current profit or loss. (2) Financial liabilities On initial recognition financial liabilities are classified into the following categories: a) Financial liabilities measured at fair value through profit and loss for the current period. Such financial liabilities are subsequently measured at fair value and the resulting gains or losses are recognized in profit or loss for the current period; b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies; c) Financial liabilities measured at amortized cost. Such financial liabilities are measured at amortized cost using the effective interest method. 177Foshan Electrical 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: (1) the contractual right to receive cash flows from the financial asset is terminated; (2) the financial asset is transferred and the conditions for derecognition are met.If the present obligation of a financial liability is discharged in whole or in part the discharged portion is derecognized. If an existing liability is replaced by another financial liability from the same creditor on substantially different terms or the terms of an existing liability are substantially modified the existing financial liability is derecognized and a new financial liability is recognized simultaneously.All regular acquisitions or sales of financial assets are recognized and derecognized on a transaction date basis. 12. Notes Receivable The determination methods and accounting methods of notes receivable are detailed in Note V-13.Accounts Receivable. 13. Accounts Receivable 1. Measurement of expected credit loss The Company uses expected credit losses as the basis for impairment accounting and recognizes an allowance for bad debts for financial assets measured at amortized cost (including accounts receivable including notes receivable and accounts receivable) financing receivables lease receivables and other receivables. 2. Recognition method for expected credit losses The general approach to expected credit losses is that: the Company assesses whether the credit risk of the relevant financial instruments has increased significantly since the initial recognition on each balance sheet date divides the process of credit impairment of financial instruments into three stages and applies different accounting treatments to the impairment of financial instruments at different stages: (1) in the first stage if the credit risk of a financial instrument has not increased significantly since the initial recognition the Company will measure the loss reserves according to the amount equivalent to the expected credit losses in the next 12 months and calculate the interest revenue according to the book balance (i.e. before deducting the provision for impairment) and the actual interest rate; (2) In the second stage if the credit risk of a financial instrument has increased significantly since the initial recognition but no credit impairment has occurred the Company will measure the loss reserves based on the expected credit loss over the entire life of the financial instrument and calculates interest revenue based on the carrying amount of the financial instrument and the effective interest rate; (3) In the third stage if credit impairment occurs after the initial recognition the Company will measure the loss reserves based on the expected credit loss over the 178Foshan Electrical 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.a) Accounts receivable of expected credit losses withdrawn individually Rationale for a single provision for Objective evidence of impairment expected credit losses The impairment tests are conducted separately for accounts receivable Individual accruals for expected individually accrued. An impairment loss is recognized based on the credit losses difference between the present value of future cash flows and their carrying amount and an expected credit loss is recorded b) Accounts receivable with expected credit losses provision based on credit risk portfolio Portfolio name Basis for portfolio recognition Determination method of expected credit losses For the general lighting auto lamps Prepare the comparative list between aging of and other relevant business accounts receivable and expected credit loss rate Business portfolio of typically from the parent company over the entire life and calculate the expected general lighting and and the subsidiary Liaowang Auto credit loss by consulting historical experience in auto lamps Lamp this portfolio takes the aging credit losses combining current situation and of accounts receivable as the credit prediction for future economic situation.risk characteristics LED packaging components and Prepare the comparative list between aging of other relevant business with the accounts receivable and expected credit loss rate Business portfolio of subsidiary NationStar over the entire life and calculate the expected LED packaging and Optoelectronics as the credit loss by consulting historical experience in components representative this portfolio takes credit losses combining current situation and the aging of accounts receivable as prediction for future economic situation.the credit risk characteristics Internal business Related parties and internal Other methods portfolio transactions 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 Portfolio 2 Trade acceptance accounts receivable and expected credit loss rate 179Foshan Electrical over the entire life 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 Business portfolio of LED lighting and auto lamps packaging and components Within one year (including one 3%2% year) One to two years 10% 10% Two to three years 30% 30% Three to four years 50% 50% Four to five years 80% 80% Over five years 100% 100% (2) Receivables and lease receivables containing significant financing components. 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 Basis for portfolio recognition Porfolio 1: Deposit security deposit Based on nature of accounts Porfolio 2: Amounts from related parties Based on nature of accounts Porfolio 3: Advances on behalf of others Based on nature of accounts (2) Aging calculation method for recognizing credit risk combinations based on aging Refer to the description of receivables with no significant financing components. (3) Criteria for determining the bad debt provision based on individual items Refer to the description of receivables with no significant financing components. 14. Accounts Receivable Financing The determination methods and accounting methods of receivables financing are detailed in Note V- 13. Accounts Receivable. 180Foshan Electrical 15. Other Receivables The determination methods and accounting methods of expected credit losses of other receivables is the same as that of accounts receivable as detailed in Note V-13. Accounts Receivable. 16. Contract Assets The Company presents the right to receive consideration for goods or services that have been transferred to the customer (and which is dependent on factors other than time-lapse) as a contract asset. The provision for impairment of contract assets is made with reference to the method of determining expected credit losses in this note.Contract assets are categorized into the following portfolios according to credit risk characteristics: Portfolio name Basis for portfolio recognition For the general lighting auto lamps and other relevant business Portfolio 1: General lighting and lamps typically from the parent company and the subsidiary business portfolio Liaowang Auto Lamp this portfolio takes the aging of accounts receivable as the credit risk characteristics LED packaging components and other relevant business with Portfolio 2: LED packaging and components the subsidiary NationStar Optoelectronics as the business portfolio representative this portfolio takes the aging of accounts receivable as the credit risk characteristics Portfolio 3: Internal business portfolio Related parties and internal transactions 17. Inventory 1. Classification of inventories Inventory refers to the finished goods or merchandise held by the Company for sale in the ordinary course of business work-in-progress during the production process and materials and supplies consumed in the production or service provision process. It mainly includes 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. 181Foshan Electrical The net realizable value of finished goods materials for sale and other merchandise inventories used directly for sale is determined in the normal course of production and operation as the estimated selling price of such inventories less estimated selling expenses and related taxes.The net realizable value of material inventories subject to processing is determined in the normal course of production operations as the estimated selling price of the finished goods produced less the estimated costs to be incurred to completion estimated selling expenses and related taxes. The Company determines the net realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for which the inventory is held and the impact of post- balance sheet events. 18. Assets Held for Sale 1. Recognition criteria and accounting treatment for non-current assets classified as held for sale or disposal groups A non-current asset or disposal group whose carrying value will be recovered principally through sale rather than through continuing use is classified as held for sale and meets the following conditions: first it is immediately available for sale under current conditions based on the customary practice for sales of such assets or disposal groups in similar transactions; and second it is highly probable that the sale will occur i.e. the enterprise has already resolved on a plan for the sale and has obtained a firm commitment to purchase and it is expected that the sale is expected to be completed within one year. The relevant regulations require the approval of the relevant or regulatory authority of the enterprise before the sale shall have been approved.When the Company initially measures or remeasures non-current assets or disposal groups held for sale on the balance sheet date if the carrying value is higher than the fair value minus the net amount of the sale costs the carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down will be recognized as asset impairment loss and included in current profit and loss and provision for impairment of assets held for sale will be made.The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against the carrying value of goodwill in the disposal group first and then against the carrying value of each non-current asset proportionately according to the proportion of the carrying value of each non-current asset in the disposal group as defined in the applicable measurement of the Accounting Standards for Business Enterprises - Non-current Assets Held for Sale Disposal Groups and Discontinued Operations. 2. Recognition criteria and presentation of discontinued operations Discontinued operations is a separately distinguishable component that meets one of the following conditions and that has been disposed of by the Company or classified by the Company as held for sale: the component represents a separate principal business or a separate principal operating area; the component is part of a related program of proposed dispositions of a separate principal business or a separate principal operating area; The component is a subsidiary acquired specifically for resale.The Company presents gains and losses from continuing operations and gains and losses from discontinued operations separately in the statement of income. Operating gains and losses such as impairment losses and reversal amounts for discontinued operations and gains and losses on disposals are presented as gains and losses from discontinued operations. The revenues expenses gross profit income tax expense (benefit) and net profit from discontinued operations impairment losses recognized on assets or disposal groups of discontinued operations and the amount of their reversal total gain or loss on disposal of discontinued operations income tax expense (benefit) and net gain or loss on disposal net cash flows from operating activities investing activities and financing 182Foshan Electrical activities of discontinued operations and gains and losses from continuing operations and gains and losses from discontinued operations attributable to owners of the parent company are disclosed in the notes. 19. Investment in Debt Obligations Not applicable 20. Other Investment in Debt Obligations The determination methods and accounting methods of other investment in debt obligations are detailed in Note V-11. Financial Instruments. 21. Long-term Receivables Not applicable 22. Long-term Equity Investments 1. Judgment criteria for joint control and significant influence Joint control means that activities that have a significant impact on the return of an arrangement must be decided upon with the unanimous consent of the participants sharing control including sales and purchases of goods or services management of financial assets purchases and disposals of assets research and development activities and financing activities. Significant influence refers to the condition where an investor holds between 20% to 50% of the voting capital in an investee generally indicating a significant influence. Or although less than 20% having a significant influence when one of the following conditions is met: Representation on the board of directors or similar authority of the investee; participation in the policy-making process of the investee; assignment of management personnel to the investee; reliance of the investee on the technology or technical information of the investee; and major transactions with the investee. 2. Determination of initial investment cost 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 in accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 12-Debt Restructuring; for long-term equity investments acquired through exchange of non-monetary assets the initial investment cost is determined in accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 7- Exchange of Non-monetary Assets. 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 183Foshan Electrical 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 include leased land use rights leased buildings and land use rights held and ready to be transferred after appreciation. Investment property is initially measured according to cost and then measured by cost model.The Company uses the composite life depreciation method for buildings leased out of investment properties and the specific accounting policies are the same as those for fixed assets. Land use rights leased out of investment properties and land use rights held and intended to be transferred after appreciation are amortized through the straight-line method with the same accounting policies as those for the intangible assets segment. 24. Fixed Assets (1) Recognition conditions The fixed assets refer to tangible assets held for production of goods provision of labour 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 Depreciation Annual depreciation Category Depreciable life Residual value rate method rate Houses and Straight-line 3-38 years 1%-10% 31.67%-3.17% buildings depreciation method Machinery Straight-line 2-11 years 1%-10% 47.50%-8.18% equipment depreciation method Transportation Straight-line Five to ten years 1%-10% 19.00%-9.50% equipment depreciation method Electronic Straight-line Two to eoght years 1%-10% 47.50%-11.88% equipment depreciation method Straight-line Other equipment Five 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. 184Foshan Electrical 25. Construction in Progress The Company’s construction in progress is divided into two types: Construction on a self-operation basis and a contracted basis. The criteria and time point for carrying forward construction in progress to fixed assets are based on the construction in progress reaching its intended state of use. The standard for determining the intended usable condition shall be one of the following: The physical construction (including installation) of the fixed assets has been fully completed or substantially completed; production or trial operation has been conducted and the results show that the assets can operate normally or can steadily produce qualified products or the results of the trial operation show that they can function normally or operate; the amount of expenditure on the fixed assets constructed is little or almost no longer incurred; the fixed assets acquired have met the design or contract requirements or are substantially consistent with the design or contract requirements. 26. Borrowing Costs 1. Recognition principles for the capitalization of borrowing costs If the borrowing costs incurred by the Company can be directly attributable to the acquisition construction or production of assets that meet the capitalization conditions they shall be capitalized and included in the costs of the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be included in the profit and loss for the current period. Assets eligible for capitalization refer to assets such as fixed assets investment properties and inventories that require a long period for their acquisition or production activities to reach the expected usable or saleable status. 2. Calculation of capitalization amount The capitalization period refers to the period from when the capitalization of borrowing costs starts to when the capitalization stops. The period during which capitalization of borrowing costs is suspended is not included. Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course of acquisition or production and the interruption lasts for more than three consecutive months.Borrowing of special borrowings is determined by the interest expense incurred in the period of the special borrowings less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the investment income earned by making temporary investments; the appropriation of general borrowings is determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings by the capitalization rate of the general borrowings appropriated which is the weighted average interest rate of general borrowings; if there is a discount or premium on borrowings the amount of discount or premium to be amortized in each accounting period is determined by the effective interest rate method. The amount of interest is adjusted for each period.The effective interest rate method is a method of calculating the amortized discount or premium or interest expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the amortized discount or premium or interest expense on a borrowing based on its effective interest rate. 27. Living Assets Not applicable 28. Oil and Gas Assets Not applicable 185Foshan Electrical 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 on a straight-line basis 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 Patent use right 5-20 years Expected number of years of benefit Method of line Software 3-10 years Expected number of years of benefit Method of line Trademark right 3-10 years Expected number of years of benefit Method of line Other 3-10 years Expected number of years of benefit Method of line The intangible assets are regarded as intangible assets with uncertain service life if the term during which they can bring economic benefits to the Company is unforeseeable or if their usage period is uncertain. The bases for determining of uncertain service life are: The intangible assets come from contractual or other legal rights but the contract or laws have no certain stipulations of the service life; the term during which the intangible assets bring economic benefits to the Company is still unforeseeable even with consideration of peer status or demonstrations of related professionals.At the end of each year the review of service life of intangible assets with uncertain service life mainly adopts the method of reviewing from lower department to upper department where departments related to the use of intangible assets shall conduct the basic review and make assessment of whether the determining basis of uncertain service life changes. 3. The scope of R&D expenditure collection and the related accounting treatment The scope of the Company’s R&D expenditures is mainly formulated based on the Company’s R&D projects which mainly includes: including 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 and commissioned external R&D expenses.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. 186Foshan Electrical Specific criteria for dividing the research phase and development phase of internal research and development projects: The expenditures in internal research and development projects of the Company are classified into expenditures in research stage and expenditures in development stage.The expenditures in research stage are included in the current profits and losses when incurred. The expenditures in development stage are recognized as intangible assets when meeting the following conditions: (1) The completion of the intangible assets makes it technically feasible for using or selling; (2) Having the intention to complete and use or sell the intangible assets; (3) The way in which an intangible asset generates economic benefits including the proof that the products produced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assets can be sold in a market and will be used internally; (4) Having sufficient technical financial resources and other resources to support the development of the intangible assets and the ability to use or sell the intangible assets; (5) Expenditure attributable to the development stage of intangible assets can be measured reliably. The cost of self-developed intangible assets includes the total expenditure incurred after meeting intangible assets recognition criterion and before reaching intended use. Expenditures that have been expensed in previous periods are no longer adjusted. 30. Long-term Asset Impairment 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 flows 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. 187Foshan Electrical 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. Payroll 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 methods for 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 labour union budget and employee education budget withdrawn in regulations and then recognizes it as liabilities that are included in the current profits and losses or relevant assets cost. (2) Accounting treatment of the welfare after demission The payable and deposit amount calculated according to the defined contribution plan during the accounting period when the active staff offering the service for the Company is recognized as liabilities and is included in the current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employees provide services based on the formula determined by expected cumulative welfare unit method and included in current profits and losses or cost of relevant asset. (3) Accounting treatment of the demission welfare When offering the demission welfare the Company shall recognize the payroll liabilities incurred from the demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission welfare offered by the plan or layoff proposal owing to termination of the labour relationship or the date when the Company recognizes the cost related to the reorganization of 188Foshan Electrical 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. Accrued Liabilities The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a current obligation of the Company and it is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation while the amount of the obligation can be measured in a reliable way. The Company conducts the initial measurement in accordance with the best estimate of the necessary expenses for the performance of the current obligation. If there is a sequent range for the necessary expenses and if all the outcomes within this range are equally likely to occur the best estimate shall be determined in accordance with the midpoint estimate within the range; if the contingencies concern two or more items the best estimate shall be calculated and determined in accordance with all possible outcomes and the relevant probabilities.Review of the book value of provisions shall be conducted on the balance sheet date. The book value shall be adjusted in accordance with the current best estimate when there is definite evidence indicating that the book value cannot reflect the current best estimate in faithfulness. 35. Share-based Payment Not applicable 36. Other Financial Instruments such as Preferred Shares and Perpetual Bonds Not applicable 37. Revenue Disclosure of accounting policies adopted for revenue recognition and measurement by type of business The Company recognizes revenue based on the transaction price apportioned to the performance obligation in a contract when the customer obtains control of the underlying good or service.Obtaining control of related goods refers to that customers can control the use of the goods and obtain almost all the economic benefits from the goods. A performance obligation is a contractual commitment by the Company to transfer a clearly distinguishable commodity to a customer. The transaction price is the amount of consideration that the Company expects to be entitled to receive as a result of the transfer of the commodity to the customer excluding amounts collected on behalf of third parties and amounts that the Company expects to return to the customer.Whether the performance obligation is to be fulfilled within a certain period of time or at a certain point in time depends on the terms of the contract and the relevant legal provisions. If the performance obligation is fulfilled within a certain period of time the Company recognizes revenue in accordance with the progress of performance. Otherwise the Company recognizes revenue at a point in time when the customer obtains control of the underlying asset.The Company determines whether the Company’s status is that of a principal or agent when engaging in a transaction based on whether it has control over the goods or services prior to transferring them 189Foshan Electrical to the customer. If the Company is able to control the goods or services before transferring them to the customer the Company is the principal responsible party and recognizes revenue based on the total consideration received or receivable. Otherwise the Company shall recognize revenue as an agent based on the amount of commissions or fees to which it is expected to be entitled which shall be determined at the net amount of the total consideration received or receivable less the price payable to other related parties or at the established commission amount or percentage etc.Specific principles and measurement methods for revenue recognition by business type: The Company recognizes revenue from general lighting products LED packaging and component products automotive lamp products trading and other products as follows: (1) Recognition of domestic sales revenue: Under the conventional settlement mode the Company has delivered goods that have passed inspection to the purchaser as required by the purchaser; the amount of revenue has been determined a sales invoice has been issued and the payment has been received or is expected to be recovered; under the consignment sales settlement mode the Company recognizes sales revenue when the product is issued and the settlement notice is issued after the customer inspection is qualified; (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 tofulfil a contract with a customer. Incremental costs of obtaining a contract (“contract acquisitioncosts”) are costs that won’t have been incurred if the contract is not acquired. If the cost is expected to be recovered the Company regards it as contract acquiring cost and confirms it as an asset.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 labour direct materials manufacturing overhead (or similar costs) costs explicitly attributable to the user and other costs incurred solely as a result of that contract; the cost increases the resources available to meet future performance obligations; and the cost is expected to be recovered.Contract performance costs recognized as assets are included in “Inventory” on the balance sheet if the amortization period at the initial recognition doesn’t exceed one year or one normal operating cycle; if the amortization period at the initial recognition is more than one year or one normal operating cycle they are included in “Other non-current assets” on the balance sheet.Contract acquisition cost recognized as assets are included in “Other current assets” on the balance sheet if the amortization period at the initial recognition doesn’t exceed one year or one normal operating cycle; if the amortization period at the initial recognition is more than one year or one normal operating cycle they are included in “Other non-current assets” on the balance sheet. 190Foshan Electrical 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 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 favourable 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 favourable 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 191Foshan Electrical favourable 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 taxes The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the different amount between the book value of assets or liabilities and its tax base (for items not recognized as assets and liabilities if its tax basis can be determined according to the tax law the tax basis is recognized as the different amount). 2. Measurement of deferred income tax The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the deductible temporary differences. On the balance sheet date deferred income tax assets without recognition during the former accounting period shall be recognized if there are definite indications representing that it is probable to have sufficient taxable income to offset the deductible temporary differences during the future period. If it is likely that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the future period the book value of the deferred income tax assets will be written down.For taxable temporary differences related to the investment in subsidiaries and associated enterprises the deferred income tax liabilities are recognized unless the time of temporary differences reversal can be controlled by the 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. 192Foshan Electrical 41. Lease The Company assesses whether a contract is a lease or contains a lease at the inception date of the contract. A contract is a lease or contains a lease if one of the parties to the contract has given up the right to control the use of one or more identified assets for a specified period of time in exchange for consideration. (1) Accounting treatment for leases as the lessee 1.On the start date of the lease term the Company deems the right-of-use assets and lease liabilities of all the operating leases except for the short-term leases and low-value leases and recognizes the depreciation expense and interest expense respectively within the lease term. (1) Right-of-use assets After the commencement date of the lease term the Group uses the cost for initial measurement of right-of-use assets. This cost includes the initial measurement amount of the lease liability lease payments made on or before the commencement date of the lease term net of lease incentives and initial direct cost.If it is reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term the Company will depreciate the leasehold property over its estimated remaining service life. If it is not reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term the Company will depreciate the leased assets over the lease term or the remaining service life whichever is shorter. When the recoverable amount is less than the carrying amount of the right-of-use asset the carrying amount is written down to the recoverable amount. (2) Lease liabilities The Company initially measures the lease liabilities at the current value of the lease payments outstanding at the start date of the lease term. Lease payments include fixed payments and payments that are reasonably certain to be made when the option to purchase or terminate the lease is exercised.Variable lease payments that are not covered in the measurement of the lease liabilities are included in current profit or loss when actually incurred.The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be reasonably determined the Company’s incremental borrowing rate is used as the rate of discount. Interest expense on the lease liability for each period during the lease term is calculated on the basis of a fixed periodic rate i.e. the discount rate used by the Company or a revised discount rate and is included in finance costs. 2. Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as a lessee for simplified treatment 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 193Foshan Electrical 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 unrealised 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 (CZ [2022] No. 136) jointly issued by the Ministry of Finance and the Ministry of Emergency Management on 21 November 2022. Safety production expenses when accrued are included in costs or current profit or loss of relevant products and in the “Special Reserve” account. When safety production expenses are used within the prescribed scope and are operating expenses they are directly used to offset the special reserves. If they form fixed assets the expenses incurred are first aggregated under the “Construction in Progress” account and when the safety projects are completed and reach the predetermined usable state they are recognised 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 recognised. 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 Name of statement item Changes to the accounting policies and why Amount affected materially affected In October 2023 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 17 of Accounting Standards for Business Enterprises (CK [2023] No. 21)which stipulates provisions on “Classification of CurrentNone 0.00and Non-current Liabilities” “Disclosure of SupplierFinancing Arrangements” and “Accounting Treatment ofSale and Leaseback Transactions”. These provisions were effective from 1 January 2024.In December 2024 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 18 of Accounting Standards for Business Enterprises (CK [2024] No. 24) Operating costs sellingwhich stipulates provisions on “Accounting Treatment 0.00expenses of Warranty-type Quality Guarantees Not Constituting aSeparate Performance Obligation”. These provisions will be effective from the date of issuance. 194Foshan Electrical (1) The Company has implemented the Interpretation No. 17 of Accounting Standards for Business Enterprise since 1 January 2024. This provision has no impact on the financial statements for the reporting period and does not involve retrospective adjustments for prior years. (2) The Company has implemented the Interpretation No. 18 of Accounting Standards for Business Enterprise since 1 January 2024. This includes accounting treatment for the estimated liabilities arising from warranty-type quality guarantees not constituting a separate performance obligation. In accordance with the Accounting Standards for Business Enterprises No.13 - Contingencies the estimated liability is recognized by debiting “Cost of Goods Sold” “Other Operating Costs” and other relevant accounts and crediting the “Provisions” account. Correspondingly the “Operating Costs” in the income statement and “Other Current Liabilities” “Non-current Liabilities Due Within One Year” and “Provisions” in the balance sheet are presented. The Company applies the retrospective adjustment method for this accounting policy change on the date of initial implementation. (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 2023 □Applicable □ Not applicable Explanation of adjustment On the date of initial implementation the Company applies the retrospective adjustment method for the provisions of the Interpretation No. 18 of Accounting Standards for Business Enterprises. The impact of the provisions on the 2023 financial statements is as follows: Unit: RMB Item of consolidated income statement 2023 (before) 2023 (after) Affected Operating cost 7354814252.01 7370742684.63 15928432.62 Selling expense 331039604.55 315111171.93 -15928432.62 Unit: RMB Income Statement Items of the Parent Company 2023 (before) 2023 (after) Affected Operating cost 2669830010.84 2670075179.86 245169.02 Selling expense 201942644.31 201697475.29 -245169.02 44. Other None.VI. Taxes 1. Main Taxes and Tax Rates Category of taxes Tax basis Tax rate Sales volume from goods selling or VAT 3% 6% 9% 13% taxable service Urban maintenance and Turnover tax payable 7% 5% construction tax Enterprise income tax Taxable income 15% 22% 25% Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate 195Foshan Electrical Name Income tax rate The Company Zhida Company Chanchang Company Haolite Company Liaowang Auto Lamp Chongqing Guinuo Liuzhou Optoelectronics Liuzhou Foreshine Qingdao Optoelectronics NationStar Optoelectronics 15% NationStar Semiconductor Fenghua Semiconductor Hainan TechnologyHule Electric Equipment and Germany NationStar.Indonesia Liaowang 22% Other subsidiaries 25% 2. Tax Preference 1. In December 2023 the Company passed the re-evaluation for high and new technology enterprise status and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202344003659).According to relevant regulations the Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2023. 2. In December 2022 the subsidiary Zhida Company passed the re-evaluation for high and new technology enterprise status and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202244009711).According to the relevant regulations Zhida Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022. 3. In November 2024 the subsidiary Chanchang Company passed the re-evaluation for high and new technology enterprise status and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202444001793).According to the relevant regulations Chanchang Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2024. 4. In December 2022 the subsidiary Haolaite Company passed the assessment for high and new technology enterprise status and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202244003711).According to relevant regulations Haolaite Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022. 5. In December 2023 the subsidiary Liaowang Auto Lamp passed the re-evaluation for high and new technology enterprise status and was awarded the High and New Technology Enterprise 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. 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 1 January 2019 and is entitled to a reduced enterprise income tax rate of 15% after examination by and filing with the tax authorities. 7. Liuzhou Lighting a wholly-owned subsidiary of Liaowang Auto Lamp passed the review of high- tech enterprise in December 2022 and obtained the certificate of high-tech enterprise (Certificate No.: GR202245001221). According to relevant regulations Liuzhou Lighting will pay enterprise income tax at a reduced rate of 15% for three years starting from 2022. 8. In November 2024 Liuzhou Foreshine a wholly owned subsidiary of Liaowang Auto Lamp passed the re-evaluation for high and new technology enterprise status and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202445000159). According to relevant regulations Liuzhou Foreshine will pay enterprise income tax at a reduced rate of 15% for three years starting from 2024.In addition according to the Notice of the Guangxi Zhuang Autonomous Region Department of 196Foshan Electrical Finance and the Guangxi Zhuang Autonomous Region Tax Service of the State Taxation Administration on Clarifying the Policy on the Partial Exemption of Local Share of Enterprise Income Tax under Certain Circumstances (Gui Cai Shui [2023]) enterprises recognised as high and new technology enterprises during the period from 2021 to 2025 shall be exempt for five consecutive years starting from the first year of recognition from the portion of enterprise income tax that is locally shared. According to the above provisions Liuzhou Foreshine is entitled to a 40% reduction in its payable enterprise income tax. 9.In December 2022 Qingdao Lighting a wholly owned subsidiary of Liaowang Auto Lamp was recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202237100785). According to relevant regulations Qingdao Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years starting from 2022. 10. In December 2023 NationStar Optoelectronics a subsidiary of the Company was re recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise 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. 197Foshan Electrical 11. In November 2024 NationStar Semiconductor a wholly owned subsidiary of NationStar Optoelectronics was re recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise 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. In December 2024 Fenghua Semiconductor a majority-owned subsidiary of NationStar Optoelectronics was re recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise 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. In October 2024 Hainan Technology a subsidiary of the Company was recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202446000187). According to the relevant regulations Hainan Technology is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2024. 14. In December 2023 Hule Electrical Equipment a majority-owned subsidiary of Hainan Technology was recognised as a high and new technology enterprise and was awarded the High and New Technology Enterprise Certificate (Certificate No.: GR202333010552). According to relevant regulations the Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2023. 15. The subsidiary Haolaite Company’s controlling subsidiary NationStar Optoelectronics (Germany) is registered in Germany. According to local tax policies it enjoys a corporate income tax rate of 15%. 16. Subsidiaries Fozhao Huaguang and Hainan Technology indirectly hold Shanghai Lelaite which is a small and micro enterprise From 1 January 2024 to 31 December 2024 the people’s governments of provinces autonomous regions and municipalities directly under the Central Government shall determine in accordance with the actual situation in the region and the needs of macroeconomic regulation and control that resource tax urban maintenance and construction tax property tax urban land use tax stamp duty (excluding stamp duty on securities transactions) arable land occupation tax and education surcharge and local education surcharge may be reduced within a tax range of 50% for small and micro enterprises. 3. Other Pay in accordance with the relevant provisions of the tax law.VII. Notes to Main Items of Consolidated Financial Statements 1. Monetary Assets Unit: RMB Item Ending balance Beginning balance Cash on hand 40535.66 42466.76 Bank deposits 1221721793.26 1942320219.96 Other monetary assets (note 1) 512794818.03 466064741.94 Money deposited in finance 1462165277.451179154268.07 company (note 2) To-be-received interest (note 3) 12405012.91 8467957.82 Total 3209127437.31 3596049654.55 Of which: Total amount deposited 32471593.7431405378.56 overseas 198Foshan Electrical Other notes Note 1: Other monetary assets were security deposits for notes and performance bonds pre-sale house payments as well as investments placed with security firm and the balance with e-commerce platforms of which the security deposits for notesperformance bonds and pre-sale house payment were restricted assets (see “31. Assets with Restricted Ownership or Right of Use” in Note “VII Notesto Consolidated Financial Statements”).Note 2: Money deposited in finance company was those deposited in Guangdong Rising Finance Co.Ltd.Note 3: To-be-received interest was interest receivable on undue bank deposits and term deposits as of the end of the Reporting Period which is not recognized as cash and cash equivalents. 2. Trading Financial Assets Unit: RMB Item Ending balance Beginning balance Financial assets at fair value 43649820.47152529775.41 through profit or loss Including: Wealth management products 41661005.56 151550477.63 Equity instrument investments 1988814.91 979297.78 Total 43649820.47 152529775.41 3. Derivative Financial Assets None. 4. Notes Receivable (1) Notes Receivable Listed by Category Unit: RMB Item Ending balance Beginning balance Bank acceptance bill 928954818.05 984928441.40 Commercial acceptance bill 68326252.16 72423826.20 Total 997281070.21 1057352267.60 (2) Disclosure by Withdrawal Methods for Bad Debts Unit: RMB Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Accounts receivable with individual provision for bad debts Notes receivable 99868 99728 withdrawn 140310 105883 14780 105735 4179.4100.00%0.14%1070.100.00%0.14% bad debt 9.23 0304.87 37.27 2267.60 provision by 4 21 group Including: 199Foshan Electrical Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Bank 92895 92895 984928984928 acceptance 4818.0 93.02% 0.00 0.00% 4818. 93.02% 0.00 0.00% bill 441.40 441.40 5 05 Commercial 68326 6972914031073901814780724238 acceptance 6.98% 2.01% 252.1 6.98% 2.00% bill 361.39 9.23 63.47 37.27 26.20 6 9986899728 14031010588314780105735 Total 4179.4 100.00% 0.14% 1070. 100.00% 0.14% 9.230304.8737.272267.60 421 Withdrawal of bad debt provision by group: RMB1403109.23 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion Within 1 year 998684179.44 1403109.23 0.14% Total 998684179.44 1403109.23 A description of the basis for determining the portfolio: See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable: □Applicable □Not applicable (3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period Withdrawal of bad debt provision: Unit: RMB Changes in the current period Beginning Ending Category Reversed or balance Withdrawal Verification Other balance recovered Trade 1478037.27-206549.91131621.871403109.23 acceptance Total 1478037.27 -206549.91 131621.87 1403109.23 Note: Other mainly refers to the amount of provision for bad debts on accounts receivable added during the current period as a result of the consolidation of Hule Electrical Equipment.Of which bad debt provision collected or reversed with significant amount: □Applicable □Not applicable (4) Notes Receivable Pledged by the Company at the Period-end Unit: RMB Item Ending pledged amount Bank acceptance bill 579430069.21 Total 579430069.21 200Foshan Electrical (5) Notes Receivable Which Had Endorsed by the Company or had Discounted and had not Due on the Balance Sheet Date at the Period-end Unit: RMB Amount of recognition termination Amount of not terminated Item at the period-end recognition at the period-end Bank acceptance bill 77576500.22 371626812.99 Commercial acceptance bill 852200.00 Total 77576500.22 372479012.99 (6) Notes Receivable Written-off in Current Period None. 5. Accounts Receivable (1) Disclosure by Aging Unit: RMB Aging Ending carrying amount Beginning carrying amount Within one year (including one year) 1958007653.74 1944758964.52 One to two years 160745414.76 151569005.90 Two to three years 75845969.51 99249444.34 Over three years 116132806.59 40389042.02 Three to four years 74345304.65 9919239.39 Four to five years 8949462.00 7074054.82 Over five years 32838039.94 23395747.81 Total 2310731844.60 2235966456.78 (2) Disclosure by Withdrawal Methods for Bad Debts Unit: RMB Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Accounts receivable 14605 withdrawn 72871 731806 257803 21977 380244 2307.66.32%49.89%1.15%85.25% bad debt 642.18 65.50 44.44 900.85 3.59 provision 8 separately Accounts receivable 21646 11219 12048 withdrawn 205248 221018 208969 79536.93.68%2910.45.18%98.85%9275.55.45% bad debt 6626.46 6112.34 6836.81 provision by 92 6 3 group Including: (1) Business portfolio of 14704 10958 97526137296169842158884 general 92300. 63.64% 6.63% 75.96% 3622.2 6.45% lighting and 907.72 5393.16 8474.56 4852.29 88 7 auto lamps (2) Business portfolio of 69418 1466667952151175710905500851 LED 7236.0 30.04% 2.11% 22.89% 2.13% packaging 002.74 233.30 637.78 653.26 984.52 4 and 201Foshan Electrical components 231071850614246 212566223596209349 Total 31844. 100.00% 4552.6 8.01% 100.00% 7176.3 6.37% 7291.966456.789280.40 6048 Provision for bad debts by item: RMB72871642.18 There were no significant accounts receivable with bad debt provision separately accrued in the current period.Provision for bad debts by combination: RMB112192910.46 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion (1) Business portfolio of 1470492300.8897526907.726.63% general lighting and auto lamps (2) Business portfolio of LED 694187236.0414666002.742.11% packaging and components Total 2164679536.92 112192910.46 A description of the basis for determining the portfolio: See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable: □Applicable □Not applicable (3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period Withdrawal of bad debt provision: Unit: RMB Changes in the current period Write-offs in Beginning Ending Category prior periods and Reversed or balance Withdrawal Verification Other balance reversals in recovered current periods Accounts receivable withdrawn 2197790 3237844 15457653. 3393837 728716 153035.99118454.23 bad debt 0.85 2.43 15 0.29 42.18 provision separately Accounts receivable - withdrawn 1204892 1140763 112192 105660.201959834 bad debt 75.53 6.22 910.46 1.09 provision by group 1424671437860715457653.1434002185064 Total 153035.99 224114.43 76.388.65159.20552.64 Note: Other mainly refers to the amount of provision for bad debts on accounts receivable added during the current period as a result of the consolidation of Hule Electrical Equipment. 202Foshan Electrical Of which bad debt provision collected or reversed with significant amount: None. (4) Accounts Receivable Written-off in Current Period Unit: RMB Item Written-off amount Accounts receivable actually written off 224114.43 Of which verification of significant accounts receivable: None.Notes to verification of accounts receivable: Current period write-off of accounts receivable amounting to RMB224114.43 and the provision for bad debts of RMB224114.43 have been put under the approval procedures according to the Company’s bad debt management policy. (5) Top Five of the Ending Balance of the Accounts Receivable and the Contract Assets Collected According to Arrears Party Unit: RMB Ending balance of Proportion to bad debt Ending balance of total ending provision of Ending balance of Name of the Ending balance of accounts balance of accounts accounts entity contract assets receivable and accounts receivable and receivable contract assets receivable and impairment contract assets provision for contract assets No. 1 150246356.36 150246356.36 6.49% 4507390.69 No. 2 94272141.84 94272141.84 4.07% 2828164.26 No. 3 91661436.56 91661436.56 3.96% 4143338.85 No. 4 87592748.84 87592748.84 3.79% 2631871.40 No. 5 77605283.13 77605283.13 3.35% 2328158.49 Total 501377966.73 501377966.73 21.66% 16438923.69 6. Contract Assets (1) List of Contract Assets Unit: RMB Ending balance Beginning balance Item Carrying Bad debt Carrying Carrying Bad debt Carrying amount provision value amount provision value Contract 3380043.901690021.951690021.956074305.631822291.694252013.94 assets Total 3380043.90 1690021.95 1690021.95 6074305.63 1822291.69 4252013.94 (2) Significant Changes in the Amount of Carrying Value and the Reason in the Reporting Period There was no significant change in carrying value in the Reporting Period. (3) Disclosure by Withdrawal Methods for Bad Debts Unit: RMB Category Ending balance Beginning balance 203Foshan Electrical Carrying amount Bad debt provision Carrying amount Bad debt provision Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Provision for bad debts based on individual items Bad debt provision 338001690016900260743018222425201 withdrawn 100.00% 50.00% 100.00% 30.00% according to 43.90 21.95 1.95 5.63 91.69 3.94 groups Including: Business portfolio of 338001690016900260743018222425201 general 100.00% 50.00% 100.00% 30.00% lighting and 43.90 21.95 1.95 5.63 91.69 3.94 auto lamps 338001690016900260743018222425201 Total 100.00% 50.00% 100.00% 30.00% 43.9021.951.955.6391.693.94 Provision for bad debts by combination: RMB 1690021.95 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion Business portfolio of general 3380043.901690021.9550.00% lighting and auto lamps Total 3380043.90 1690021.95 A description of the basis for determining the portfolio: See Note V-16. Contract Assets.Withdrawal of bad debt provision by adopting the general mode of expected credit loss □Applicable □Not applicable (4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period Unit: RMB Withdrawal of Reversal or Write-off/verified Other Item the current recovery in the for the current Reason changes period Reporting Period period Provision for impairment of contract -132269.74 assets Total -132269.74 —— Of which bad debt provision collected or reversed with significant amount: Naught. (5) Contract Assets Written-off in Current Period None. 7. Accounts Receivable Financing (1) Accounts Receivable Financing Listed by Category Unit: RMB 204Foshan Electrical Item Ending balance Beginning balance Bank acceptance bill 352694866.89 443201960.02 Total 352694866.89 443201960.02 (2) Disclosure by Withdrawal Methods for Bad Debts None.The basis for the division of each stage and the withdrawal proportion of bad debt provision See Note V-13. Accounts Receivable.Notes to significant changes in the carrying amount of accounts receivable financing with amount changed of loss provision in the current period:Naught (3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period None. (4) Accounts Receivable Financing Pledged by the Company at the Period-end Unit: RMB Item Ending pledged amount Bank acceptance bill 25328943.24 Total 25328943.24 (5) Accounts Receivable Financing Which Had Endorsed by the Company or had Discounted and had not Due on the Balance Sheet Date at the Period-end Unit: RMB Amount of recognition termination Amount of not terminated Item at the period-end recognition at the period-end Bank acceptance bill 414969887.25 Total 414969887.25 (6) Accounts Receivable Financing with Actual Verification for the Current Period None. (7) The changes of accounts receivable financing in the Current Period and the fair value changes None. (8) Other Notes None. 8. Other Receivables Unit: RMB Item Ending balance Beginning balance Other receivables 70524265.25 49108300.85 Total 70524265.25 49108300.85 (1) Interest Receivable None. 205Foshan Electrical (2) Dividend Receivable None. (3) Other Receivables 1) Category of Other Receivables by Account Nature Unit: RMB Nature Ending carrying amount Beginning carrying amount Other current accounts 77640342.04 65389794.88 Performance bonds 25244600.82 17686774.68 Export VAT rebates 5974168.41 4708061.84 Staff loans and petty cash 3138997.42 1589234.30 Rents and utilities 1314614.82 817043.94 Total 113312723.51 90190909.64 2) Disclosure by Aging Unit: RMB Aging Ending carrying amount Beginning carrying amount Within one year (including one year) 51110555.10 46054067.53 One to two years 22389136.32 7676026.75 Two to three years 6564915.91 2219050.74 Over three years 33248116.18 34241764.62 Three to four years 1383400.01 5990920.12 Four to five years 4236860.23 4583526.14 Over five years 27627855.94 23667318.36 Total 113312723.51 90190909.64 3) Disclosure by Withdrawal Methods for Bad Debts □Applicable □ Not applicable Unit: RMB Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Bad debt 30403040 provision 315412 31541 9096.26.84%9096.100.00%34.97%100.00% separately 39.47 239.47 accrued 04 04 Bad debt provision 8290 1237 70524258649695413491083 withdrawn 3627. 73.16% 9362. 14.93% 65.03% 16.27% according to 65.25 70.17 69.32 00.85 47 22 groups Including: Other receivables with bad debt 82901237 provision 705242 586496 95413 491083 3627.73.16%9362.14.93%65.03%16.27% based on a 65.25 70.17 69.32 00.85 combination 47 22 of credit risk characteristics 1133100.00427870524290190941082491083 Total 37.76% 100.00% 45.55% 1272%8458.65.2509.64608.7900.85 206Foshan Electrical 3.5126 Provision for bad debts by item: RMB30409096.04 Unit: RMB Beginning balance Ending balance Name Carrying Bad debt Carrying Bad debt Withdrawal Reason for amount provision amount provision proportion withdraw It is not expected Customer A 20000000.00 20000000.00 20000000.00 20000000.00 100.00% that the money will be recovered Total 20000000.00 20000000.00 20000000.00 20000000.00 Provision for bad debts by combination: RMB 12379362.22 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion Other receivables with bad debt provision based 82903627.4712379362.2214.93% on a combination of credit risk characteristics Total 82903627.47 12379362.22 A description of the basis for determining the portfolio: See Note V-13. Accounts Receivable.Withdrawal of bad debt provision by adopting the general mode of expected credit loss: Unit: RMB First stage Second stage Third stage Expected loss in the Expected loss in the Expected credit loss Bad debt provision duration (credit duration (credit Total in the next 12 impairment not impairment months occurred) occurred) Balance of 1 1342723.927982242.9431757641.9341082608.79 January 2024 Balance of 1 January 2024 in the current period Withdrawal of the -139062.572905532.502766469.93 current period Reclassification in the Reporting 1203749.11 1203749.11 Period Verification of the 66067.21107736.93173804.14 current period Other changes 319110.55 -2177.76 316932.79 Balance of 31 1522771.9010819530.4730446155.8942788458.26 December 2024 207Foshan Electrical The basis for the division of each stage and the withdrawal proportion of bad debt provision See Note V-13. Accounts Receivable.Changes of carrying amount with significant amount changed of loss provision in the current period □Applicable □Not applicable 4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period Withdrawal of bad debt provision: Unit: RMB Changes in the current period Beginning Charged- Ending Category Reversed or balance Withdrawal off/Written- Other balance recovered off Other 41082608.7 42788458.2 2766469.931203749.11173804.14316932.79 receivables 9 6 41082608.742788458.2 Total 2766469.93 1203749.11 173804.14 316932.79 96 Of which the bad debt provision recovered or transferred-back with significant amount during the current period: None. 5) Particulars of the Actual Verification of Other Receivables during the Current Period Unit: RMB Item Written-off amount Other receivables 173804.14 Of which the verification of significant other receivables: None. 6) Top Five of the Ending Balance of Other Receivables Collected according to the Arrears Party Unit: RMB Proportion to Ending balance Name of the total ending Nature Ending balance Aging of bad debt entity balance of other provision receivables % Other current More than 5 No. 1 20000000.00 17.65% 20000000.00 accounts years Other current No. 2 15883375.00 Within 2 year 14.02% 1588337.50 accounts Other current No. 3 14840849.57 Within 1 year 13.10% 445225.49 accounts Performance No. 4 10000000.00 Within 1 year 8.83% 300000.00 bond Export VAT No. 5 5974168.41 Within 1 year 5.27% 179225.05 rebates Total 66698392.98 58.87% 22512788.04 208Foshan Electrical 7) Presentation in Other Receivables due to the Centralized Management of Funds None. 9. Prepayment (1) Prepayment Listed by Aging Analysis Unit: RMB Ending balance Beginning balance Aging Amount Proportion Amount Proportion Within one year 18587036.85 76.11% 27750424.91 80.42% One to two years 2101361.07 8.61% 3496897.72 10.13% Two to three years 1640558.43 6.72% 665594.01 1.93% Over three years 2090822.77 8.56% 2595722.28 7.52% Total 24419779.12 34508638.92 Notes of the reasons of the prepayment aging over one year with significant amount but failed settled in time: None. (2) Top Five Prepayment in Ending Balance Collected according to the Prepayment Target Unit: RMB Relationship with Proportion to total Name of the entity Ending balance Aging the Company prepayments (%) No. 1 Non-associated 4337460.00 Within one year 17.76% No. 2 Non-associated 1769347.69 Within one year 7.25% No. 3 Non-associated 934833.36 Within one year 3.83% No. 4 Non-associated 760000.00 Within one to two years 3.11% No. 5 Non-associated 674648.13 Within one year 2.76% Total 8476289.18 34.71% 10. Inventories Whether the Company needs to comply with the disclosure requirements for the real estate industry None (1) Category of Inventory Unit: RMB Ending balance Beginning balance Depreciation Depreciation reserves of reserves of Item Carrying inventories or Carrying Carrying inventories or Carrying amount impairment value amount impairment value provision for provision for contract contract 209Foshan Electrical performance costs performance costs 3149306292395305927108.292064 Raw materials 22535048.55 13862774.27 94.77646.2228334.01 2296652229665247880117.247880 Goods in process 13.27213.2738117.38 1249130112278105189188904940 Inventory goods 126346042.26 146951222.27 700.184657.929.47667.20 2911481263331425003429.415805 Goods in transit 27816444.67 9197980.38 76.11731.4461449.23 Semi-finished 1036387 101146 96957960.1 924778 2492313.514480118.25 goods 82.42 468.91 1 41.86 Low-value 1515044 151504 132218 1322185.78 consumables .74 4.74 5.78 146605914660516681045.6166810 Other 8.8898.88845.68 2204689202549214566373197117 Total 179189848.99 174492095.17 210.379361.386.311641.14 (2) Data Resources Recognized as Inventory None. (3) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs Unit: RMB Increased amount of the Decreased amount for the Beginning current period current period Item Ending balance balance Transferred-back Withdrawal Other Other or charged-off Raw materials 13862774.27 10675574.58 2003300.30 22535048.55 Inventory 146951222.2724377757.2344982937.24126346042.26 goods Goods in transit 9197980.38 26413654.99 7795190.70 27816444.67 Semi-finished 4480118.251462730.203450534.942492313.51 goods Total 174492095.17 62929717.00 58231963.18 179189848.99 Note: In the amount reversed or charged off in the current period the amount reversed was RMB9538707.43 and the amount charged off was RMB48693255.75.Provision for decline in value of inventories by portfolio None.Criteria for making provision for decline in value of inventories by portfolio See Note V-17. Inventory. (4) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense None. (5) Amortization Amount of Contract Performance Cost during the Reporting Period None. 210Foshan Electrical 11. Held-for-sale Assets Unit: RMB Ending Ending Estimated Impairment Estimated Item carrying carrying Fair value disposal provision disposal time amount amount expense Houses buildings and 17147339.8 17147339.8 165208303. 55718333.9 31 December land involved in 4 4 00 5 2025 expropriation 17147339.817147339.8165208303.55718333.9 Total 44005 Other notesFor details see “Part X- XVIII Other Other Significant Events Events-8. Others: Demolition Mattersof Nanjing Fozhao” of this Report. The estimated disposal costs include employee resettlement fees compensation for the termination of the original tenant’s contract and taxes related to the proceeds of demolition. 12. Current Portion of Non-current Assets None. 13. Other Current Assets Unit: RMB Item Ending balance Beginning balance Input tax of VAT to be certified and 125298564.4594451130.80 deducted Large-value bank certificates of 130975312.95700000.00 deposit Advance payment of enterprise 2524237.9111454058.94 income tax Other 2486661.54 2687209.40 Total 261284776.85 109292399.14 14. Investments in Debt Obligations None. 15. Other Investments in Debt Obligations (1) List of Other Investments in Debt Obligations Unit: RMB Accumulated Change in impairment Accrue Interest fair value Ending Accumulate provision Beginning Item d adjustmen in the balanc Cost d fair value recognized in Notes balance interest t reporting e changes other period comprehensiv e income Purchase 400 1281 4176 Large Bank held-to- 454822 00 1563 3446 Certificates maturity 905.25 00.93 9.18 of Deposit investments 00. 211Foshan Electrical Accumulated Change in impairment Accrue Interest fair value Ending Accumulate provision Beginning Item d adjustmen in the balanc Cost d fair value recognized in Notes balance interest t reporting e changes other period comprehensiv e income in 2023 00 Purchase 707 held-to- 1538 7223 00 Large Bank maturity 8394 8839 00 Certificates investments .54 4.54 00. of Deposit in 2024 00 11 114007 2819 454822022000 Total 9958 905.25863.700.47 20.0 0 Changes in provision for impairment on other debt investments in the current period None. (2) Significant Other Investments in Debt Obligations at the Period-end Unit: RMB Ending balance Beginning balance Actual Actual Item Par Coupon Maturity Overdue Coupon Maturity Overdue interest Par value interest value rate date principal rate date principal rate rate Large bank certificate s of 1000 10000 6 January 6 January deposit in 0000 3.30% 3.30% 0000.0 3.30% 3.30% 20262026 China 0.00 0 Everbright Bank（Note） Large bank certificate 50003131 s of 50000 0000. 2.90% 2.90% August 2.90% 2.90% August deposit in 000.00 0020262026 Bank of Communi cations Large bank certificate 10003150003 s of 0000 2.90% 2.90% Novemb 0000.0 2.90% 2.90% Novemb deposit in 0.00 er 2026 0 er 2026 China Everbright Bank Large 1500 2.95% 2.95% 1 15000 2.95% 2.95% 1 212Foshan Electrical Ending balance Beginning balance Actual Actual Item Par Coupon Maturity Overdue Coupon Maturity Overdue interest Par value interest value rate date principal rate date principal rate rate bank 0000 Decembe 0000.0 Decembe certificate 0.00 r 2026 0 r 2026 s of deposit in Bank of Guangzho u Large bank certificate 212005 s of 0000 2.75% 2.75% February deposit in 0.002027 Bank of Guangzho u Large bank certificate 550005 s of 0000. 2.60% 2.60% February deposit in 002027 China Everbright Bank Large deposit 1430 05 certificate 0000 2.60% 2.60% February of Huaxia 0.00 2027 Bank Large deposit 820005 certificate 0000. 2.60% 2.60% February of China 002027 Merchants Bank Large deposit 1500 08 March certificate 0000 2.60% 2.60% 2027 of Huaxia 0.00 Bank Large deposit 3500 certificate 29 March 0000.2.60%2.60% of China 2027 00 Merchants Bank Large deposit 3000 certificate 30 April 0000.2.60%2.60% of China 2027 00 Merchants Bank 110745000 Total 00000000.0 213Foshan Electrical Ending balance Beginning balance Actual Actual Item Par Coupon Maturity Overdue Coupon Maturity Overdue interest Par value interest value rate date principal rate date principal rate rate 00.000 Note:Large bank certificates of deposit in China Everbright Bank was frozen in 2024 due to litigation cases and was unfrozen in March 2025. (3) Status of Accrued Depreciation Reserves None.The basis for the division of each stage and the withdrawal proportion of bad debt provision See Note V-17. Other Investments in Debt Obligations. (4) Status of Other Investments in Debt Obligations Written-off in Current Period None. 16. Other Equity Instrument Investment Unit: RMB Accumulativ Reason for Gains Losses e gains Accumulative Dividend assigning to recorded in recorded in recorded in losses recorded income measure in fair Beginnin other other Ending other in other recognize value of which Project name g comprehensiv comprehensiv balance comprehensi comprehensive d in changes included balance e income in e income in ve income in income in the current other the current the current the current current period year comprehensive period period period income 36357 36837 Non-trading Gotion High-tech 4797461.4 28056455 171337 9045.0 6506.5 equity Co. Ltd. 8 9.89 9.10 2 0 instruments 32350 29080 Non-trading Xiamen Bank 32694353. 17054441 263849 2024.6 7671.0 equity Co.Ltd. 55 7.77 16.90 0 5 instruments Guangdong Non-trading 3000030000496154. Rising Finance equity 000.00000.0024 Co. Ltd. instruments Beijing Guangrong Lianmeng Non-trading 6082570785509730. Semiconductor equity 43.8068.8012 lighting Industry instruments Investment Center(L.P.) Foshan Nanhai District United Guangdong New Non-trading 3000030000 Light Source equity 00.0000.00 Industry instruments Innovation Center Non-trading China Guangfa 50000 50000 equity Bank Co.Ltd. 0.00 0.00 instruments 214Foshan Electrical Accumulativ Reason for Gains Losses e gains Accumulative Dividend assigning to recorded in recorded in recorded in losses recorded income measure in fair Beginnin other other Ending other in other recognize value of which Project name g comprehensiv comprehensiv balance comprehensi comprehensive d in changes included balance e income in e income in ve income in income in the current other the current the current the current current period year comprehensive period period period income 7266669976 32694353.4797461.445110897291041 Total 3613.4 2746.3 5587.6680.36 25 Non-trading equity instrument investment in the Current Period disclosed by items Unit: RMB Reason for Reason for Amount of other assigning to other comprehensive measure in fair Dividend comprehensive Accumulative Accumulative income value of which Project name income income gains losses transferred to changes recognized transferred to retained included other retained earnings comprehensive earnings income Not satisfied with the Gotion High-tech 1713379. 280564559.condition of N/A Co. Ltd. 10 89 trading equity instrument Not satisfied with the Xiamen Bank 26384916 170544417.condition of N/A Co. Ltd. .90 77 trading equity instrument Beijing Guangrong Not satisfied Lianmeng with the Semiconductor 509730.12 1505569.32 condition of N/A lighting Industry trading equity Investment instrument Center(L.P.) Not satisfied Guangdong with the Rising Finance 496154.24 644988.33 condition of N/A Co. Ltd. trading equity instrument 29104180453259535. Total.3631 Other notes NationStar Optoelectronics is a limited partner of Beijing Guangrong Lianmeng Semiconductor Lighting Industry Investment Center (Limited Partnership). As at 31 December 2024 NationStar Optoelectronics has received a total distribution of principal and interest amounting to RMB5423025.52 from Beijing Guangrong Lianmeng Semiconductor Lighting Industry Investment Center (Limited Partnership). The accumulated principal repaid is RMB3917456.20. After partial recovery of the investment NationStar Optoelectronics holds a 3.98% equity stake in the partnership. 215Foshan Electrical 17. Long-term Receivables None. 18. Long-term Equity Investment Unit: RMB Increase/decrease for the current period Gains and Beginnin Beginning Cash Withdraw Ending Ending losses Adjustment of g balance balance of Additional Reduced Changes bonus or al of balance balance of Investee recognize other (carrying depreciatio investmen investmen of other profits impairme Other (Carryin depreciation d under comprehensiv value) n reserve t t equity announce nt g value) reserve the equity e income d to issue provision method I. Joint ventures II. Associated enterprises Shenzhen Primatronix 17918 1803 11120 (Nanho) 8555.1 0059 Electronics 39.74 5 4.89 Ltd. 179181803 11120 Subtotal 8555.1 0059 39.74 54.89 179181803 11120 Total 8555.1 0059 39.74 54.89 The recoverable amount is determined based on the net amount of the fair value minus disposal costs □Applicable □Not applicable The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or external information None.The reason for the discrepancy between the information used in the Company’s impairment tests in prior years and the actual situation of those years None. 19. Other Non-current Financial Assets None. 20. Investment Property (1) Investment Property Adopting the Cost Measurement Mode □Applicable □ Not applicable Unit: RMB Houses and Construction in Item Land use right Total buildings progress I. Original carrying value 1. Beginning balance 204959267.68 204959267.68 216Foshan Electrical Houses and Construction in Item Land use right Total buildings progress 2. Increased amount of the 652565293.0461486213.33714051506.37 period (1) Outsourcing 13697930.10 13697930.10 (2) Transfer from inventories/fixed 638867362.94 61486213.33 700353576.27 assets/construction in progress (3) Increase for business combination 3. Decreased amount of the 34629898.7934629898.79 period (1) Disposal (2) Other transfer 34629898.79 34629898.79 4. Ending balance 822894661.93 61486213.33 884380875.26 II. Accumulative depreciation and accumulative amortization 1. Beginning balance 41322920.27 41322920.27 2. Increased amount of the 44391379.3812976146.1457367525.52 period (1) Withdrawal or amortization 14437016.76 14437016.76 (2) Transfer from inventories/fixed 29954362.62 12976146.14 42930508.76 assets/construction in progress 3. Decreased amount of the 7796616.557796616.55 period (1) Disposal (2) Other transfer 7796616.55 7796616.55 4. Ending balance 77917683.10 12976146.14 90893829.24 III. Depreciation reserves 1. Beginning balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal (2) Other transfer 4. Ending balance IV. Carrying value 1. Ending carrying value 744976978.83 48510067.19 793487046.02 2. Beginning carrying value 163636347.41 163636347.41 The recoverable amount is determined based on the net amount of the fair value minus disposal costs □Applicable □Not applicable The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or external information None.The reason for the discrepancy between the information used in the Company’s impairment tests in 217Foshan Electrical prior years and the actual situation of those years None. (2) Investment Property Adopting the Fair Value Measurement Mode □Applicable □Not applicable (3) Projects Converted to Investment Properties and Measured at Fair Value None. (4) Investment Property Failed to Accomplish Certification of Property As at 31 December 2024 the property certificates for the LED workshop Smart LED workshop buildings 1-3 Fuwan standard workshop J3 (leased portion) Gaoming office building (leased portion) Kelian Building (leased portion) Hainan Fuli parking spaces and the leased portion of the Hainan production base are still being processed. The Company believes that there are no substantial legal obstacles to the processing of these property certificates and it will not have a significant adverse impact on the Company’s normal operations. 21. Fixed Assets Unit: RMB Item Ending balance Beginning balance Fixed assets 3646134662.80 3451760127.91 Disposal of fixed assets 459543.24 1454458.56 Total 3646594206.04 3453214586.47 (1) List of Fixed Assets Unit: RMB Houses and Machinery Transportation Electronic Other Item Total buildings equipment equipment equipment (Note:1) I. Original carrying value 1. Beginning 21598786 51304924 72880741. 9176571 74935316 38514056.09 balance 50.29 86.84 85 2.00 47.07 2. Increased 6509797022674745112147665.9189630.946483212 amount of the 6691694.62.968.996557.79 period 3088712.579551393.9537591.32291750.99328202. (1) Purchase 4858753.88 54009710 (2) Transfer from 564845506166486001592908.76897879.740264709 construction in 442413.77.280.75760.17 progress (3) Increase for 43969202.20545317.66823768. business 1330526.97 978721.88 298599 combination 39076281.40066532. (4) Others (note 2) 891806.99 60000.00 38443.70 8453 3. Decreased 36409196941008800.2178815.21584656.412676525 amount of the 3812283.95.1189463.82 period (1) Disposal or 144286588 39581097. 2178707.2 811111.2 190666861 3809357.50 scrap .82 08 3 7 .90 (2) Equipment 957524.27 957524.27 218Foshan Electrical Houses and Machinery Transportation Electronic Other Item Total buildings equipment equipment equipment (Note:1) transformation 219805380773545.3221052139 (3) Others (Note 2) 470179.54 2926.45 108.01.296.65 244676635356958282849592.993706880273383 4. Ending balance 41393466.76 84.1404.94265.9434.04 II. Accumulative depreciation 1. Beginning 772209491 31072672 51404295. 7413643 40339668 28949352.01 balance .83 27.12 01 6.53 02.50 2. Increased 1237622854099595910011118.6591771.554417335 amount of the 4092568.23.291.822862.24 period 102715498396266269221027.46591771.517756408 (1) Withdrawal 2961841.26.579.52662.43 (2) Increase in 13250170.12326375.27451331. business 1130726.97 744058.62 177551 combinations 7796616.51366946.59209595.3 (3) Others (Note 2) 46032.20 550 3. Decreased 17351519035214099.2070659.51137075.215562736 amount of the 3625710.98.1666799.36 period (1) Disposal or 142181631 34829620. 2070552.6 770605.8 183458646 3606236.15 scrap .01 46 5 8 .15 (2) Equipment 359294.77359294.77 transformation 31333559.366470.131744795. (3) Others (Note 2) 25184.43 19474.83 106.92 15144 7224565863482012759344753.795911343728214 4. Ending balance 29416209.26.9619.28722.1601.38 III. Depreciation reserves 1. Beginning 7800885.0 7804716.6 3037.99793.59 balance 8 6 2. Increased 4002059.74176798.2 amount of the 86602.74 85190.97 2944.79 77 period 4000514.24175252.7 (1) Withdrawal 86602.74 85190.97 2944.79 66 (2) Others 1545.51 1545.51 3. Decreased 3427074.33599245.0 amount of the 86602.74 84774.44 793.59 07 period (1) Disposal or 3393126.4 3563751.7 86602.7484022.52 scrap 5 1 (2) Equipment 33947.8533947.85 transformation Others 751.92 793.59 1545.51 8375870.58382269.8 4. Ending balance 3454.52 2944.79 56 IV. Carrying value 1. Ending carrying 17243097 18665696 23501384. 1977660 36461346 11977257.50 value 97.18 15.11 02 8.99 62.80 2. Beginning 13876691 20154243 9564704.08 21473408. 1762848 34517601 219Foshan Electrical Houses and Machinery Transportation Electronic Other Item Total buildings equipment equipment equipment (Note:1) carrying value 58.46 74.64 85 1.88 27.91 Note 1: Fixed assets-Other refers to the cooling system and sewage treatment station of NationStar Optoelectronics and tools of Liaowang Auto Lamp etc.Note 2: Other increases or decreases in gross amount and accumulated depreciation are due to the addition of building accessories and classification of houses and buildings leased out to investment properties during the current period. (2) List of Temporarily Idle Fixed Assets None. (3) Fixed Assets Leased out by Operation Lease None. (4) Fixed Assets Failed to Accomplish Certification of Property The Company’s Fuwan Standard Workshop J3 (self-use part) Fuwan Standard Workshop K1 Fuwan Energy Saving Lamp Workshop 2 Glass Workshop 8 Glass Workshop 9 Fluorescent Lamp Workshop Standard Workshop A Hainan Production Base (self-use part) Kelian Building (self-use part) Gaoming Office Building (self-use part) Gaoming New Canteen Fuwan Employee Village Family Dormitory Buildings 2-6 Family Dormitory Building 8 Fuwan Industrial Park Employee Village Dormitory Buildings 01-04 Fuwan Employee Village Dormitory Buildings A 2 3 5 6 7 10 to 13 and Employee Apartment Buildings 1-4 have been completed and put into use and transferred to fixed assets. As of 31 December 2024 the relevant property certificates are currently being processed. The Company believes that there are no substantial legal obstacles to the processing of such property rights certificates and it will not have a significant adverse impact on the normal operation of the Company. (5) Impairment Test of Fixed Assets □Applicable □ Not applicable The recoverable amount is determined based on the net amount of the fair value minus disposal costs □Applicable □ Not applicable The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □ Not applicable In 2024 the company set aside a total of RMB4175252.76 for impairment of fixed assets.Specifically impairment tests were conducted on fixed assets that were severely worn due to prolonged use or became obsolete due to product upgrades. Relevant assets were impaired and their recoverable amount was estimated based on the fair value and disposal costs determined by reference to the recent disposal and recovery rate of similar assets. The Company accrued an impairment provision of RMB4175252.76 based on the higher between the net amount of fair value less disposal costs and the present value of expected future cash flows for the relevant asset groups.The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or external information None. 220Foshan Electrical The reason for the discrepancy between the information used in the Company’s impairment tests in prior years and the actual situation of those years None. (6) Proceeds from Disposal of Fixed Assets Unit: RMB Item Ending balance Beginning balance Equipment 459543.24 1454458.56 Total 459543.24 1454458.56 22. Construction in progress Unit: RMB Item Ending balance Beginning balance Construction in progress 263601705.89 1174533505.11 Total 263601705.89 1174533505.11 (1) List of Construction in Progress Unit: RMB Ending balance Beginning balance Item Carrying Impairment Carrying Carrying Impairment Carrying amount provision value amount provision value Construction 265196525. 263601705. 117606106 117453350 1594819.141527554.99 in progress 03 89 0.10 5.11 265196525.263601705.117606106117453350 Total 1594819.14 1527554.99 03890.105.11 (2) Changes in Significant Construction in Progress during the Reporting Period Unit: RMB Proportion Of which: Capitaliza of Accumulati amount of tion rate Increased Other Transferre accumulativ ve amount capitalize of Funding Budge Beginning amount of decrease Ending Job Project name d in fixed e investment of interest d interests interests resource t balance the current d balance schedule assets in capitalizatio for the for the s period amount construction n Reporting Reporting s to budget Period Period 171 Self- The Project of 2038 financin 4544679559801103614926628645610.683247.5 the Geely 1131 37.43% 37.43% 3.37% g and Industrial Park 670 507.68 06.22 369.59 31.86 1 1 2.45 Borrowi 0.00 ng 726 Self- 2917 financin Kelian 738 265818 259393 100.00 3664095 5810 93.71% g and Building 900. 751.84 52.21 % 3.02 4.05 Borrowi 00 ng 212 Self- Gaoming financin 135164777938630174163100.00 office building 89.49% g and 300. 145.48 9.24 454.72 % Borrowi 00 ng 310 Self- FSL Hainan 1291 400 165138 888831 448478 100.00 financin Industrial Park 7889 100.99% I 000. 431.72 8.40 54.41 % g and 5.71 00 Borrowi 221Foshan Electrical Proportion Of which: Capitaliza of Accumulati amount of tion rate Increased Other Transferre accumulativ ve amount capitalize of Funding Budge Beginning amount of decrease Ending Job Project name d in fixed e investment of interest d interests interests resource t balance the current d balance schedule assets in capitalizatio for the for the s period amount construction n Reporting Reporting s to budget Period Period ng 296 42152038 382106368142224580503372865683247.5 Total 9983 1131 3.37% 0909836.72986.07678.723.63 1.622.451 0.00 Note: 1. The decrease in other amounts in this period is mainly due to the conversion of completed projects into investment properties. 2. The Company has pre-invested self-aised funds into the first phase of the FSL’s Hainan Industrial Park Phase I Project and exchanged them with the raised funds in accordance with relevant regulations. (3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress Unit: RMB Item Amount withdrawn Reason for withdrawal Xinxiang Office The project has been suspended and is currently idle with no 67264.15 Building plans for continued construct at this time.Total 67264.15 -- (4) Impairment Test of Construction in Progress □Applicable □Not applicable (5) Engineering Materials None. 23. Productive Living Assets (1) Productive Living Assets Adopting Cost Measurement Mode □Applicable □Not applicable (2) Impairment Test of Productive Living Assets Adopting Cost Measurement Mode □Applicable □Not applicable (3) Productive Living Assets Adopting Fair Value Measurement Mode □Applicable □Not applicable 24. Oil and Gas Assets □Applicable □Not applicable 25. Right-of-use Assets (1) List of Right-of-use Assets Unit: RMB 222Foshan Electrical Houses and Machinery Item Other Total buildings equipment I. Original carrying value 1. Beginning 16811584.0916811584.09 balance 2. Increased amount 26292087.191096398.9675471.7027463957.85 of the period (1) Leased in 26292087.19 1096398.96 75471.70 27463957.85 3. Decreased amount of the 11564500.18 11564500.18 period (1) Disposal 11564500.18 11564500.18 4. Ending balance 31539171.10 1096398.96 75471.70 32711041.76 II. Accumulative depreciation 1. Beginning 7999263.457999263.45 balance 2. Increased amount 8641729.62383976.6444025.179069731.43 of the period (1) Withdrawal 8641729.62 383976.64 44025.17 9069731.43 3. Decreased amount of the 6700952.46 6700952.46 period (1) Disposal 6700952.46 6700952.46 4. Ending balance 9940040.61 383976.64 44025.17 10368042.42 III. Depreciation reserves 1. Beginning balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal 4. Ending balance IV. Carrying value 1. Ending carrying 21599130.49712422.3231446.5322342999.34 value 2. Beginning 8812320.648812320.64 carrying value (2) Impairment Test of Right-of-use Assets □Applicable □Not applicable 26. Intangible Assets (1) List of Intangible Assets Unit: RMB Land use Patent use Non-patent Trademark Other(N Item Software Total right right technology right ote) I. Original carrying value 223Foshan Electrical Land use Patent use Non-patent Trademark Other(N Item Software Total right right technology right ote) 1. Beginning 4911703 2422797 748659 5902642 balance 15.79 7.69 34.65 28.13 2. Increased 9723009.138715474556227020000.3470006154017 amount of the 047.173.13000.009.34 period 7204537206084. (1) Purchase 1547.17 6.9512 (2) Internal R&D (3) Increase for 9723009.1387000251086.27020000.3470005433409 business 040.0018000.005.22 combination 3. Decreased 13107021310702 amount of the 64.2064.20 period (1) Disposal 13107021310702 (2) Others 64.2064.20 4. Ending 3698230 3809952 823215 27020000. 347000 5207341 balance 60.63 4.86 57.78 00 0.00 43.27 II. Accumulated amortization 1. Beginning 1096270 2418515 219021 1557143 balance 32.21 1.93 30.00 14.14 2. Increased 1030394833504.51164411125833.3144583.2405206 amount of the 6.63794.785352.68 period 9344615.833504.51162721125833.3144583.2307576 (1) Withdrawal 59728.575355.43 (2) Increase in 959331.016966.2976297.2 business 415 combinations 3. Decreased 47619584761958 amount of the 2.542.54 period (1) Disposal 47619584761958 (2) Others 2.542.54 4. Ending 7231139 2501865 335463 1125833.3 144583. 1321467 balance 6.30 6.50 24.78 5 35 94.28 III. Depreciation reserves 1. Beginning balance 2. Increased amount of the period (1) Withdrawal 3. Decreased amount of the period (1) Disposal 4. Ending balance IV. Carrying 224Foshan Electrical Land use Patent use Non-patent Trademark Other(N Item Software Total right right technology right ote) value 1. Ending 2975116 1308086 487752 25894166. 332541 3885873 carrying value 64.33 8.36 33.00 65 6.65 48.99 2. Beginning 3815432 529638 4345499 42825.76 carrying value 83.58 04.65 13.99 Note: List of Intangible Assets—Others are the software copyrights added by merging with Hule Electrical Equipment in the current period.The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance of intangible assets was 0.00%. (2) Data Resources Recognized as Intangible Assets □Applicable □Not applicable (3) Land Use Right with Certificate of Title Uncompleted None. (4) Impairment Test of Intangible Assets □Applicable □Not applicable 27. Goodwill (1) Original Carrying Value of Goodwill Unit: RMB Increase Decrease Name of the invested Beginning Formed by Ending units or events balance business Disposal balance generating goodwill combination Nanning Liaowang 1621146 16211469.8 Auto Lamp Co. Ltd. 9.82 2 Foshan NationStar 4056201405620123. Optoelectronics Co. 23.6464 Ltd. 4218315421831593. Total 93.4646 Note: As for the M&A of NationStar Optoelectronics in 2014 by Guangdong Electronics Information Industry Group Ltd. the wholly-owned subsidiary of Guangdong Rising Holdings Group Co. Ltd.the difference between the fair value and the net assets attributable to the shareholders of the listed company on the date of acquisition of NationStar Optoelectronics formed goodwill of RMB405620123.64. (2) Goodwill Impairment Provisions Unit: RMB Name of the Increase Decrease invested units or Beginning Ending events generating balance Withdrawal Disposal balance goodwill Foshan 142393052. 142393052. 225Foshan Electrical NationStar 68 68 Optoelectronics Co. Ltd. 142393052.142393052. Total 6868 (3) Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to: Composition and basis of Whether it is the asset group or Operating segments Name consistent with the combination of asset and basis previous year groups General lighting Nanning Liaowang Operating non-current and vehicle lamp Yes Auto Lamp Co. Ltd.assets and goodwill are products based on the minimum asset portfolio capable of LED packaging and Foshan NationStar generating independent component Optoelectronics Co. Yes cash flows. products and other Ltd.products (4) Specific Method of Determining the Recoverable Amount The recoverable amount is determined as the net fair value less disposal costs □Applicable □ Not applicable Unit: RMB Determin ation of Basis for Carrying Recoverabl Impairment fair value Key Item determining amount e Amount Amount and parameters key parameters disposal costs The average trading price of Foshan stocks in NationStar 70698905 56459600 14239305 Market the 30 Optoelectro 5.16 2.48 2.68 method trading Note1 nics Co. days prior Ltd. to the benchmark date excluding abnormal 226Foshan Electrical trading days. 706989055645960014239305 Total 5.162.482.68 Note 1: The recoverable amount of NationStar Optoelectronics Asset Group is determined based on the higher of the net amount of the fair value of the assets minus disposal expenses and the present value of the expected future cash flows of the assets. NationStar Optoelectronics is a small and medium-sized board listed company on the Shenzhen Stock Exchange. NationStar Optoelectronics calculates its fair value based on the average stock transaction price of the 30 trading days before excluding abnormal trading days on the benchmark date. The disposal expenses are determined by transaction costs and related taxes related to asset disposal.The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □ Not applicable Unit: RMB Basis for Key Key determini Years of Recovera parameter parameter ng key Carrying Impairme the Item ble s of the s of the parameter amount nt amount forecast Amount forecast stable s for the period period period stable period Based on the principle of prudence Revenue the growth Revenue income Nanning rate of growth assumptio Liaowang 3.00% - rate of 0% n of the 54179045478688 Auto 5 years 7.00% and stable 65.1134.00 Lamp and discount period Co. Ltd. discount rate of remains rate of 11.28% stable 11.28% compared with the last year of the forecast period.Total 5417904 5478688 227Foshan Electrical 65.1134.00 The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or external information None.The reason for the discrepancy between the information used in the Company’s impairment tests in prior years and the actual situation of those years None. (5) Completion of Commitments to Results and Corresponding Goodwill Impairment When goodwill is formed there is a commitment to the results and the reporting period or the period preceding the reporting period is within the commitment period □Applicable □Not applicable 28. Long-term Prepaid Expense Unit: RMB Beginning Increased amount of Amortization amount Other decreased Ending Item balance the current period of the current period amount balance 13032959180708 Mould 131980958.97 63494375.43 18107709.95 0.74464.33 Expense on 49146320.647839 maintenance 37830003.34 22192422.66 0400.72 and decoration 313010. Boarding box 667938.96 39889.35 394818.31 00 10218849.721912 Other 3711413.31 6711142.05 510.77 19036269253024 Total 173562264.97 92792758.45 18107709.95 9.25495.82 Other notes： Mold reduction is the disposal of molds. 29. Deferred Income Tax Assets/Deferred Income Tax Liabilities (1) Deferred Income Tax Assets that Had not Been Off-set Unit: RMB Ending balance Beginning balance Deductible Deductible Item Deferred income Deferred income temporary temporary tax assets tax assets difference difference Provision for asset 437165619.6566540210.84390622029.7159298411.33 impairment Unrealized profit of 67232648.5710084897.2837737392.895660608.94 internal transactions Deductible loss 205026280.47 33375483.69 124708331.49 22015171.66 Depreciation of 45661228.34 6849184.25 54793929.61 8219089.44 228Foshan Electrical fixed assets Provisions 27430683.82 4114602.59 14277087.30 2141563.09 Fair value changes of trading financial 636322.31 95448.35 751107.32 112666.10 assets Estimated cost 59384034.04 8907605.11 46135701.47 6920355.22 Lease liabilities and 34868832.745980792.8012750617.721915901.17 others Total 877405649.94 135948224.91 681776197.51 106283766.95 (2) Deferred Income Tax Liabilities Had not Been Off-set Unit: RMB Ending balance Beginning balance Item Taxable temporary Deferred income Taxable temporary Deferred income difference tax liabilities difference tax liabilities Assets assessment appreciation from business 151028108.5122654216.2683667098.6012550064.79 consolidation not under the same control Fair value changes of other investments 445258977.6566788846.65417362085.5962604312.84 in equity instruments Fair value changes of trading financial 736537.65 110480.65 1559845.00 233976.75 assets One-off depreciation of 615396814.10 92309522.12 649066960.98 97598859.53 fixed assets Right-of-use assets 22342999.384058203.6112108349.601819532.34 and others Total 1234763437.29 185921269.29 1163764339.77 174806746.25 (3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set Unit: RMB Mutual set-off Mutual set-off Amount of deferred Amount of deferred amount of deferred amount of deferred income tax assets or income tax assets or Item income tax assets income tax assets liabilities after off- liabilities after off- and liabilities at the and liabilities at the set at the period- set at the period-end period-end period-begin begin Deferred income tax 135948224.91106283766.95 assets Deferred income tax 185921269.29174806746.25 liabilities (4) List of Unrecognized Deferred Income Tax Assets None. (5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years None. 229Foshan Electrical 30. Other Non-current Assets Unit: RMB Ending balance Beginning balance Item Carrying Impairment Carrying Carrying Impairment Carrying amount provision value amount provision value Contract 389288.9520492.17368796.78 assets Advance payments for equipment advance 59359531.60 59359531.60 40991898.73 40991898.73 payments for constructio n Advance payment for long- 36085714.00 36085714.00 36085714.00 36085714.00 term assets acquisition Long-term 103788056.4103788056.4 assets to be 41955426.17 41955426.17 44 disposed of Prepayment 10000000.010000000.0 s for equity 10000000.00 10000000.00 00 acquisition Other 1163686.77 1163686.77 294664.28 294664.28 210786277.710020492.1200765785.5129327703.110000000.0119327703.1 Total 679808 Note: The long-term assets expected to be disposed of mainly include the land use rights of the plot at No. 64 Fenjiang North Road which is to be transferred and disposed of as well as the disposal costs of the plot. 31. Assets with Restricted Ownership or Right of Use Unit: RMB Period-end Period-beginning Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of amount value restriction restriction amount value restriction restriction Note Note deposits deposits bond bond Monetary 512340 5123404 Restricted 486328 486328 Restricted deposits pre- deposits assets 403.99 03.99 use 752.85 752.85 use sale of pre-sale of properties properties etc. etc.Pledged Pledge of Pledged Pledge of endorsed or note pool endorsed or note pool Notes 951909 9519090 873275 873275 discounted notes discounted notes receivable 082.20 82.20 556.80 556.80 but not receivable but not receivable matured endorsed or matured endorsed or 230Foshan Electrical Period-end Period-beginning Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of amount value restriction restriction amount value restriction restriction discounted discounted but not but not matured matured Related Related party 348161 2119771 326522 219746 party Fixed assets Mortgaged mortgage Mortgaged 016.79 00.96 715.93 331.38 mortgage guarantees guarantees Related Related party Intangible 155514 1034168 155514 106527 party Mortgaged mortgage Mortgaged assets 08.00 6.87 08.00 15.04 mortgage guarantees guarantees Investments Frozen large- in other debt 103309 1033090 denomination Frozen obligations( 041.10 41.10 certificates of Note) deposit Accounts Pledge of 253289 2532894 Pledge of 120221 120221 Pledged receivable Pledged note pool 43.24 3.24 note pool 199.92 199.92 financing Other non- current 2931.37 2931.37 Frozen Frozen funds assets 1956601815209182189171022 Total 2826.69189.739633.504555.99 Note: The large-denomination certificate of deposit of China Everbright Bank in other debt investments which was frozen in 2024 due to a litigation case was unfrozen in March 2025. 32. Short-term Borrowings (1) Category of Short-term Borrowings Unit: RMB Item Ending balance Beginning balance Pledged borrowings 39850000.00 Mortgage loans 28000000.00 83330000.00 Credit loans 234995981.93 70000000.00 Acceptance bill discount 4282836.39 66689877.73 Interest from short-term borrowings 12329.17 0.00 Total 307141147.49 220019877.73 Notes of the category for short-term loans: Notes receivable discounted but not yet due at the end of the period are all bank acceptances with recourse rights and do not meet the conditions for derecognition. Therefore they are recognised as short-term borrowings. (2) List of the Short-term Borrowings Overdue but not Returned None. 33. Trading Financial Liabilities Unit: RMB Item Ending balance Beginning balance 231Foshan Electrical Held-for-trading financial liabilities 275250.00 Including: Other 275250.00 Total 275250.00 34. Derivative Financial Liabilities None. 35. Notes Payable Unit: RMB Category Ending balance Beginning balance Bank acceptance bill 1930784817.62 2256122566.65 letter of credit 15052221.04 Total 1930784817.62 2271174787.69 The total amount of notes payable that are due but unpaid amounted to RMB0.00 at the end of the current period. 36. Accounts Payable (1) List of Accounts Payable Unit: RMB Item Ending balance Beginning balance Accounts payable 2781965096.70 2875980206.64 Total 2781965096.70 2875980206.64 (2) Significant Accounts Payable Aging over One Year or Overdue Unit: RMB Item Ending balance Unpaid/Un-carry-over reason It has not reached the settlement No. 1 84923739.08 period It has not reached the settlement No. 2 58539706.36 period Total 143463445.44 37. Other Payables Unit: RMB Item Ending balance Beginning balance Other payables 495717050.97 362491923.01 Total 495717050.97 362491923.01 (1) Interest Payable None. (2) Dividends Payable None. 232Foshan Electrical (3) Other Payables 1) Other receivables by nature Unit: RMB Item Ending balance Beginning balance Account current 208777778.90 122073392.43 Relevant expense of sales 87551768.43 88852388.08 Performance bond 96583554.73 76508284.65 Payments for demolition 34898417.30 36592784.44 Payment for equity transfer 16366572.00 5000000.00 Other 51538959.61 33465073.41 Total 495717050.97 362491923.01 2) Significant Other Accounts Payable Aging over One Year or Overdue Unit: RMB Item Ending balance Unpaid/Un-carry-over reason It has not reached the settlement Unit A 91046577.48 period Total 91046577.48 38. Advances from Customer (1) List of Advances from Customers Unit: RMB Item Ending balance Beginning balance Advances from customers 163623.85 466872.69 Land reserve payment 13367850.30 Total 13531474.15 466872.69 (2) Significant Advances from Customers Aging over One Year or Overdue None. 39. Contract Liabilities Unit: RMB Item Ending balance Beginning balance Advances on sales 119506301.48 235335693.28 Total 119506301.48 235335693.28 40. Employee Benefits Payable (1) List of Employee Benefits Payable Unit: RMB Item Beginning balance Increase Decrease Ending balance I. Short-term salary 192578525.70 1357077402.48 1348763708.25 200892219.93 II.Post-employment benefit-defined 1252286.96 127920376.26 127551750.45 1620912.77 contribution plans III.Termination 17373511.055235555.2912137955.76 benefits 233Foshan Electrical Total 193830812.66 1502371289.79 1481551013.99 214651088.46 (2) List of Short-term Salary Unit: RMB Item Beginning balance Increase Decrease Ending balance 1. Salary bonus 189203378.171188641431.671180534703.70197310106.14 allowance subsidy 2. Employee 39743.1062615306.6862615988.1339061.65 welfare 3. Social insurance 513915.45 51885336.28 51736989.92 662261.81 Of which: Medical 432930.3147095538.6346962266.32566202.62 insurance premiums Work-related injury 80985.144789797.654774723.6096059.19 insurance 4. Housing fund 498319.50 41648992.83 41637431.16 509881.17 5. Labor union budget and 2323169.4812286335.0212238595.342370909.16 employee education budget Total 192578525.70 1357077402.48 1348763708.25 200892219.93 (3) List of Defined Contribution Plans Unit: RMB Item Beginning balance Increase Decrease Ending balance 1. Basic pension 941107.39117505270.78117280661.271165716.90 benefits 2. Unemployment 29771.684732899.014725033.9137636.78 insurance 3. Annuity 281407.89 5682206.47 5546055.27 417559.09 Total 1252286.96 127920376.26 127551750.45 1620912.77 Other notes The Company participates in the scheme of pension insurance and unemployment insurance established by government agencies as required. According to the scheme fees are paid to it on a monthly basis and at the rate of stipulated by government agencies. In addition to the above monthly deposit fees the Company no longer assumes further payment obligations. Corresponding expenses are recorded into the current profits or losses or the cost of related assets when incurred. 41. Taxes Payable Unit: RMB Item Ending balance Beginning balance Enterprise income tax 70202563.56 17336516.13 VAT 20024672.48 15318825.56 Personal income tax 10342055.07 3796001.53 Property tax 1757727.88 1606639.28 Urban maintenance and 1631337.721260207.36 construction tax Education surcharge 1622938.34 1905489.83 Local education surcharge 695000.38 986924.96 Land use tax 458383.14 436657.21 Stamp tax 313705.15 247268.25 234Foshan Electrical Other 36776.67 45627.19 Total 107085160.39 42940157.30 42. Liabilities Held for sale None. 43. Current Portion of Non-current Liabilities Unit: RMB Item Ending balance Beginning balance Current portion of long-term 112386714.93339846622.13 borrowings Current portion of lease liabilities 8188073.88 4067592.32 Total 120574788.81 343914214.45 44. Other Current Liabilities Unit: RMB Item Ending balance Beginning balance Reversed notes that are endorsed 368196176.6071846109.20 and undue Endorsed but not yet terminated 1050000.00 recognition Pending changerover output VAT 7910035.8023162317.81 and others Total 377156212.40 95008427.01 45. Long-term Borrowings (1) Category of Long-term Borrowings Unit: RMB Item Ending balance Beginning balance Mortgage loans 39680861.51 27754169.97 Credit loans 295287783.96 565185873.45 Less: Current portion of long-term 112386714.93339846622.13 borrowings Total 222581930.54 253093421.29 46. Bonds Payable None. 47. Lease Liabilities Unit: RMB Item Ending balance Beginning balance Lease liabilities 25185296.61 9690845.42 Less: Unrecognized financing 1973229.621312285.18 expenses Less: current portion of lease 8188073.884067592.32 liabilities Total 15023993.11 4310967.92 Other notes: 235Foshan Electrical Analysis of the maturity of lease liabilities Unit: RMB Item Ending balance Beginning balance 1 to 2 years 7538905.81 1637899.09 3 to 5 years 4826977.55 2673068.83 More than 5 years 2658109.75 Total 15023993.11 4310967.92 48. Long-term Payables None. 49. Long-term Employee Benefits Payable None. 50. Provisions Unit: RMB Item Ending balance Beginning balance Reason for formation Pending litigation 2110312.84 Contract dispute Withdrawal of product Product quality assurance 25320370.98 14277087.30 quality assurance expenses Total 27430683.82 14277087.30 51. Deferred Income Unit: RMB Beginning Reason for Item Increase Decrease Ending balance balance formation Government Government 75185461.2735090983.0336537264.3673739179.94 grants Grant Total 75185461.27 35090983.03 36537264.36 73739179.94 -- Other notes: Amount recorded Amount Amount into non- offset Amount recorded into Related to Beginning operating cost in Other Ending Item of newly other income in assets/related balance income in the changes balance subsidy the Reporting to income the Reportin Period Reporting g Period Period 6599119826924956818374 Government grants related to assets 24732407.74.127.007.38 The Projects of the Production Expansion and Technological Transformation of 14068497 1000394 Related to 4064551.68 Components of Small-spacing and Outdoor .44 5.76 assets LED Displays The Project of the Innovation in Packaging Technology and Technological 4832954. 6000000 9322107 Related to Transformation of Key Packaging 1510846.32 10 .00 .78 assets Equipment of LED packaging with Small Spacing for Display Government Subsidy for Annual Fixed 4137000. 4763500 8677987 Related to 222512.50 Asset Investment in Advanced 00 .00 .50 assets 236Foshan Electrical Amount recorded Amount Amount into non- offset Amount recorded into Related to Beginning operating cost in Other Ending Item of newly other income in assets/related balance income in the changes balance subsidy the Reporting to income the Reportin Period Reporting g Period Period Manufacturing and Oil & Gas Extraction Projects The Project of the Innovation in Packaging Technology and Technological 7623293. 6052565 Related to Transformation of Key Packaging 1570727.40 17 .77 assets Equipment of LED packaging with High Color Rendering Index for Illumination The second batch of ultra-long-term special 5250000 5162500 Related to 87500.00 government bond project subsidies for 2024. .00 .00 assets 2023 Automotive Lamp Production 765000.00 1610000 2129000 Related to Digitalization Workshop Technology 246000.00.00 .00 assets Improvement Project Technology renovation project for the 2069917 2001695 Related to production line of micro and flip-chip LED 68221.24.00 .76 assets chips.Research on the Third-generation 2000000 1871395 Related to Semiconductor Power Device and Module 128604.63.00 .37 assets Packaging Technology The First Batch of 2022 Special Funds for Industrial Technological Transformation by 2047999. 1792000 Related to 255999.99 the Finance Bureau of Liang Jiang New 99 .00 assets Area The Project of Resource Conservation and 2440481. 1425234 Related to 1015246.80 Environmental Protection 00 .20 assets The Second Batch of Support Funds for the“Technological Transformation of 1566666. 1366666 Related to 200000.04Thousands of Enterprises” in the Guangxi 58 .54 assets Zhuang Autonomous Region for 2021 The 2019 Second Batch of Special Funds of 1500000. 1200000 Related to RMB3 Million for the Industrial and 300000.00 00 .00 assets Information Development of the City Special Project on Deep-sea Technology Industry Promotion (Industry Development Category) of Hainan Deep-Sea Technology 1200000 1200000 Related to Innovation Center - Project on Building and .00 .00 assets Commercial Operation of Deep-sea Lighting Product Production Line The First Batch of Special Funds for the Industrial and Information Development for 1366666. 966666.9 Related to the Guangxi Zhuang Autonomous Region 399999.96 93 7 assets for 2017 (Technological Transformation) for Liuzhou Guige The Project of the First Batch of Support 1200000. 900000.0 Related to Funds for Enterprises in Liuzhou City for 300000.00 00 0 assets 2017 for Liuzhou Guige LED Technology for Efficient Cultivation in 607172.60 459540.0 743871.4 Related to Modern Agriculture and Its Demonstrative 322841.18 0 2 assets Application Research and Development and Industrialization Project of Potassium 857384.58 743787.0 Related to 113597.52 Nitride-based Rf Devices in the Field of 6 assets Next Generation Mobile Communication Intelligent Technology Reform Project of 620755.00 620755.0 Related to LED Packaging Workshop in Geely 0 assets Industrial Park (Phase I) 237Foshan Electrical Amount recorded Amount Amount into non- offset Amount recorded into Related to Beginning operating cost in Other Ending Item of newly other income in assets/related balance income in the changes balance subsidy the Reporting to income the Reportin Period Reporting g Period Period The 2019 14th Batch of Industrial Support 750000.00 600000.0 Related to 150000.00 Funds of RMB1.5 Million 0 assets The First Batch of 2022 Special Funds for 560000.01 490000.0 Related to 70000.01 Micro Small and Medium Enterprises 0 assets The Innovation Fund for Enterprises in 600000.00 450000.0 Related to Liudong New Area for 2017 for Liuzhou 150000.00 0 assets Guige The Project of the Third Batch of Special Funds of Innovation-driven Development 520000.00 424000.0 Related to 96000.00 for the Guangxi Zhuang Autonomous 0 assets Region for 2018 for Liuzhou Guige The Fund for the Intelligent Transformation 487333.22 419333.1 Related to and Upgrading Projects of Automobile 68000.04 8 assets Enterprises for 2021 The Fund for the Project of the Management 448000.12 384000.1 Related to Committee of the Liuzhou High-tech 63999.96 6 assets Industrial Development Zone The Key Labs of Semiconductor Micro 434562.60 359125.2 Related to Display Enterprises in Guangdong Province 75437.40 0 assets (for 2020) The Project of Research and Development and Industrialization of NB-IoT-based 361725.80 323894.0 Related to Multi-Mode Low-Power Wide-Area 37831.80 0 assets Internet of Things Node Chips and Packaging Technology The Project of Key Technologies and 380250.00 319260.0 Related to Industrialization of Silica-based Gallium 60990.00 0 assets Nitride Power Components The Project of Support Funds for Enterprises 516666.57 316666.5 Related to 200000.04 in Liuzhou City for 2020 for Liuzhou Guige 3 assets 17298788 3572000 7917289 Related to Other 12953499.23.41 .00 .18 assets 9194263.81660265555432 Government grants related to income 11804856.62 15.03.56 Research Project on Key Technologies of the Third Generation of High Efficiency and 1705474. 1639002 Related to 66471.72 Frequency Semiconductor Electronic Power 54 .82 income Module Research on Key Technologies of 4K/8K 4962516. 1344000 Related to Full-colour Micro-LED Displays with Ultra- 3618516.28 28 .00 income High Definition (UHD) The Research on Full-colour and Integrated 1770402. 674326.0 990013.5 Related to Packaging of Micro-LED Display with High 1454714.74 30 3 9 income Brightness and Contrast 1200000 840000.0 Related to MDL Project 360000.00.00 0 income The Guangdong-Hong Kong-Macao Joint 350000.00 322118.5 Related to Lab of Intelligent Micro-nano Photoelectric 27881.49 1 income Technology 405870.03 6291700 420297.6 Related to Other 6277272.39.00 4 income 7518546135090987373917 Total 36537264.36.273.039.94 238Foshan Electrical 52. Other Non-current Liabilities Unit: RMB Item Ending balance Beginning balance Tax to be charged off 174986.26 205769.48 Other 2931.37 Total 177917.63 205769.48 53. Share Capital Unit: RMB Increase/decrease (+/-) Beginning New Bonus Bonus issue Ending balance balance shares Other Subtotal shares from profit issued The sum 1548778230.001548778230.00 of shares Other notes: Beginning balance Ending balance Category/investor Increased Decreased Amount invested Percentage Amount invested Percentage Restricted shares 197537241.00 12.75% 90349.00 140332133.00 57295457.00 3.70% Unrestricted shares 1351240989.00 87.25% 140241784.00 1491482773.00 96.30% Total 1548778230.00 100.00% 140332133.00 140332133.00 1548778230.00 100.00% 54. Other Equity Instruments None. 55. Capital Reserves Unit: RMB Item Beginning balance Increase Decrease Ending balance Capital premium 907090354.12907090354.12 (premium on stock) Other capital 7245971.547245971.54 reserves Total 914336325.66 914336325.66 56. Treasury Shares Unit: RMB Item Beginning balance Increase Decrease Ending balance Treasury shares (A- 82165144.1582165144.15 share) Total 82165144.15 82165144.15 Note: The inventory shares (A shares) were cancelled on 10 January 2025. The total share capital of the Company changed from 1548778230 shares to 1535778230 shares. For details please refer to 4. Notes to Other Events after Balance Sheet Date of Section 17 Events after the Balance sheet Date. 57. Other Comprehensive Income Unit: RMB 239Foshan Electrical Reporting Period Less: Recorded Less: Recorded in other in other comprehensive comprehensive Attributable to Attributable to Beginning Income before income in prior income in prior owners of the Item Less: Income non-controlling Ending balance balance taxation in the period and period and Company as tax expense interests after Current Period transferred to transferred to the parent after tax profit or loss in retained tax the Current earnings in the Period Current Period I. Other comprehensive 35973 income that may 2789689 4184533 2371235 3834426 not subsequently 0272.7 2.07 .81 8.26 31.00 be reclassified to 4 profit or loss Fair value changes 35973 of other 2789689 4184533 2371235 3834426 investments in 0272.7 2.07 .81 8.26 31.00 equity instruments 4 II. Other comprehensive - - - income that may 29675 - subsequently be 577314.6 310230.8 267083.84.85 13475.98 reclassified to 7 3 4 profit or loss Differences arising from translation of - - -29675 - foreign currency- 577314.6 310230.8 267083.8 denominated 4.85 13475.98 7 3 4 financial statements Total of other 36002 -2731957 4184533 2340212 3834291 comprehensive 7027.5 267083.8 income 7.40 .81 7.43 55.02 9 4 58. Specific Reserve Unit: RMB Item Beginning balance Increase Decrease Ending balance Safety production 1213325.9218945510.3215376775.044782061.20 costs Total 1213325.92 18945510.32 15376775.04 4782061.20 Other notes including changes and reason of change: The increase in the current year represents the safety production expenses accrued in accordance with the proportion stipulated in the Notice on Issuing the Management Measures for the Provision and Use of Enterprise Production Safety Costs (CZ [2022] No. 136) and the decrease in the current year represents the actual safety production expenses incurred. 59. Surplus Reserves Unit: RMB Item Beginning balance Increase Decrease Ending balance Statutory surplus 66264408.1042152843.91108417252.01 reserves Discretionary 41680270.9641680270.96 surplus reserves Total 107944679.06 42152843.91 150097522.97 Notes including changes and reasons thereof: 240Foshan Electrical The increase for the current period is the provision for surplus reserve amounting to RMB42152843.91. 60. Retained Earnings Unit: RMB Item Reporting Period Same period of last year Beginning balance of retained 3435308364.113296490575.52 earnings before adjustments Beginning balance of total retained earnings of adjustments (“+” for -54747.02increase “-“ for decrease)Beginning balance of retained 3435308364.113296435828.50 earnings after adjustments Add: Net profit attributable to owners of the Company as the 446184021.97 290357652.22 parent Less: Withdrawal of statutory 42152843.9116585651.91 surplus reserves Dividend of ordinary shares 184293387.60134899464.70 payable Ending retained earnings 3655046154.57 3435308364.11 List of adjustment of beginning retained earnings: 1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards for Business Enterprises and relevant new regulations. 2) The undistributed profit at the beginning of the period is adjusted by RMB0.00 due to changes in accounting policies. 3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors. 4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control. 5) RMB0.00 beginning retained earnings was affected totally by other adjustments. 61. Operating Revenue and Cost of Sales Unit: RMB Reporting Period Same period of last year Item Operating revenue Cost Operating revenue Cost Main operations 8802435475.94 7190495792.98 8783592484.22 7164937425.96 Other operations 245802171.20 177055108.51 273699519.68 205805258.67 Total 9048237647.14 7367550901.49 9057292003.90 7370742684.63 Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative □Yes □No Breakdown information of operating income and operating cost: Unit: RMB 241Foshan Electrical Total Category of contracts Operating revenue Operating cost Business Type 9048237647.14 7367550901.49 Including: General lighting products 3226311712.83 2395182567.26 LED packaging and component products 2467584592.15 2056558519.16 Vehicle lamp products 2107363678.88 1749368441.56 Trade and other products 1246977663.28 1166441373.51 Classification by operating region Including: Domestic 7069352913.60 5688104522.61 Overseas 1978884733.54 1679446378.88 Total 9048237647.14 7367550901.49 Information in relation to the transaction price apportioned to the residual contract performance obligation: At the end of this reporting period the amount of revenue corresponding to the performance obligations already contracted but not yet fulfilled or not yet fully fulfilled is RMB 269855637.67. 62. Taxes and Surtaxes Unit: RMB Item Reporting Period Same period of last year Property tax 28676638.78 22491644.46 Urban maintenance and 21327278.3920485713.05 construction tax Education surcharge 9143375.97 10734704.27 Stamp duty 8344850.82 7026462.85 Local education surcharge 6096584.00 3973983.11 Land use tax 6023030.05 6043496.59 Environmental protection tax 93630.35 66202.00 Vehicle and vessel use tax 38409.21 44856.33 VAT of land 1237746.77 Other 18849.95 163610.44 Total 79762647.52 72268419.87 63. Administrative Expense Unit: RMB Item Reporting Period Same period of last year Employee benefits 275293420.32 269186658.26 Depreciation charge 83279370.36 57457595.30 Office expenses 40006914.71 26186734.81 Intermediary agency fee 11805486.89 8161257.09 Engineering decoration cost 10009360.18 10100054.08 Amortization of intangible assets 8648358.17 8230781.28 Utilities 8612131.67 8078631.82 Rent and management charge 7859197.84 1505144.05 Labor cost 5995845.07 3353120.74 Security fund for the disabled 2841940.52 2712902.14 Other 30405321.65 35571492.39 Total 484757347.38 430544371.96 242Foshan Electrical 64. Selling Expense Unit: RMB Item Reporting Period Same period of last year Employee benefits 151647016.46 135070057.05 Business propagandize fees and 103972069.8788766075.69 advertizing fees Business travel charges 17187185.83 15200339.00 Office expenses 15730733.51 18179213.99 Sales promotion fees 11347352.24 16271950.39 Commercial insurance premium 6518012.66 6996600.98 Other 42953830.16 34626934.83 Total 349356200.73 315111171.93 65. Development Costs Unit: RMB Item Reporting Period Same period of last year Personnel labour costs 264483169.80 231096377.82 Direct input costs 202803354.52 166919907.20 Depreciation and long-term prepaid 41317402.2541981744.02 expense Commissioned external research 8124543.459684695.96 and development costs Design fee 939546.93 971319.82 Amortization expense of intangible 50558.92254711.01 assets Others 30951790.20 32670337.98 Total 548670366.07 483579093.81 Other notes: In respect of R&D expense incurred by the Company expense other than that on bench-scale and pilot-scale production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale production is included in core business revenue and the relevant costs are included in cost of sales of core business. 66. Finance Costs Unit: RMB Item Reporting Period Same period of last year Interest costs 21576958.65 24128844.17 Less: Interest income 51401372.58 47710201.22 Foreign exchange gains or losses -28129824.29 -11208631.12 Handling charge and others 2454991.02 2291238.65 Total -55499247.20 -32498749.52 243Foshan Electrical 67. Other Income Unit: RMB Sources Reporting Period Same period of last year The Deductible Input Tax for Advanced Manufacturing 54157807.49 34934153.62 Enterprises The Subsidy for Metal-organic Chemical Vapor Deposition 7084696.84 15005565.15 (MOCVD) The Tax Incentives for the Poor 6655996.87 4766450.00 The Projects of the Production Expansion and Technological Transformation of Components of 5590398.00 5113075.04 Small-spacing and Outdoor LED Displays The Research on the Key Technology of 4K/8K Full-colour 3618516.282344940.27 Micro-LED Displays with Ultra- High Definition (UHD) VAT refunded as soon as it is levied 3548006.01 The Research and Application of Epitaxial Wafers Chips and Packaging of Near Ultraviolet 3331914.60 31914.60 Silica-based AlGaN Vertical LEDs with High Power Manufacturing Operation Management MOM Prototype Software Research Project for 2813200.00 NationStar Manufacturing Scenarios CAE software Research Project for Multi-physics Field Coupling 2011000.00 Simulation of NationStar LED Products The Project of the Innovation in Packaging Technology and Technological Transformation of 1570727.401799394.64 Key Packaging Equipment of LED packaging with High Color Rendering Index for Illumination The Research on Full-colour and Integrated Packaging of Micro- 1454714.74994276.21 LED Display with High Brightness and Contrast The subsidy for stabilizing 1423855.771059015.09 employment Social insurance subsidies 1185266.41 The Project of Resource Conservation and Environmental 1015246.80 1809367.44 Protection The award and subsidy for“Specialized Refined Distinctive 1000000.00 and Innovative ‘Little Giant’Enterprises.” Enterprise R&D Reward and 684357.00 696100.00 244Foshan Electrical Sources Reporting Period Same period of last year Subsidy Support Fund for the Digital Intelligent Transformation of the 592548.00 1524300.00 Manufacturing Industry The Research on the Key Technology and Innovative 563843.4035843.40 Application of Deep Ultraviolet Solid-state Light Sources The Project of Support Funds for 556000.08556000.08 Enterprises in Liuzhou City Return of handling charges for 531972.25856016.80 withholding and remittance Chancheng District Government 500000.00 Quality Award Reward Funds for Smart Factory Demonstration Enterprises and 500000.00 Digital Workshops Talent “flyover” (or talent 500000.00 relocation) Standardized Strategy Municipal 493500.00 Subsidy Funds Epitaxial Growth and Chip Fabrication Techniques for High- 400000.00 Performance Deep Ultraviolet LED Quality Management Maturity 400000.00 Level 5A Enterprise Bonus The First Batch of Special Funds for the Industrial and Information Development for the Guangxi 399999.96399999.96 Zhuang Autonomous Region for 2017 (Technological Transformation) for Liuzhou Guige Job expansion grants 383000.00 94500.00 Incentive for standard products of 360000.00400000.00 Foshan City MDL Project 360000.00 LED Technology for Efficient Cultivation in Modern Agriculture 322841.18 and Its Demonstrative Application The 2019 Second Batch of Special Funds for the Industrial and 300000.00300000.00 Information Development of the City Incentive Subsidy for Digital and Intelligent Demonstration 2000000.00 Workshop of Foshan City in 2022 The 24th China Patent Award 1000000.00 Industrial Logistics Subsidy Award 808200.00 Funds for the Q2 2022The 2021 “100 Enterprises Strive 500000.00for the First Place” bonus The Visible Light Communication and Positioning System for the 473516.21 Industrial Internet of Things (IIOT) The Construction Project for the 300000.00 245Foshan Electrical Sources Reporting Period Same period of last year Center for Cultivating and Arranging High-Value Patents of NationStar Other 7125575.04 12402018.11 Total 111434984.12 90204646.62 68. Net Gain on Exposure Hedges None. 69. Gain on Fair Value Changes Unit: RMB Sources of fair value changes gains Reporting Period Same period of last year Held-for-trading financial assets -438454.94 1129444.26 Held-for-trading financial liabilities -275250.00 Total -713704.94 1129444.26 70. Investment Income Unit: RMB Item Reporting Period Same period of last year Long-term equity investment 1112039.741833621.59 income accounted by equity method Investment income from disposal of -46590.76 long-term equity investment Investment income from disposal of 4098921.53-11739672.84 trading financial assets Dividend income from holding of 29104180.3617173298.27 other equity instrument investment Interest income from holding of other investments in debt 29195152.92 5611238.58 obligations Earnings of debt restructuring -368531.60 Income received from financial 2708815.731767053.51 products and structural deposits Total 65850578.68 14598948.35 71. Credit Impairment Loss Unit: RMB Item Reporting Period Same period of last year Bad debt loss on notes receivable 206549.91 -757766.65 Bad debt loss on accounts -28328425.50-49088791.49 receivable Bad debt loss on other receivables -1562720.82 -2284496.07 Total -29684596.41 -52131054.21 72. Asset Impairment Loss Unit: RMB Item Reporting Period Same period of last year I. Loss on inventory valuation and -53391009.57-75435041.50 contract performance cost IV. Loss on impairment of fixed -4175252.76 -3090860.92 246Foshan Electrical assets VI. Loss on impairment of -67264.15 construction in progress X. Goodwill Impairment Losses -142393052.68 XI. Loss on impairment of contract 132269.74-1214861.13 assets XII. Others -8035253.26 -1527893.81 Total -207929562.68 -81268657.36 73. Assets Disposal Income Unit: RMB Sources Reporting Period Same period of last year Gains or losses arising from the disposal of non-current assets not 374492447.01 12719324.89 classified as held for sale Total 374492447.01 12719324.89 Note: It mainly refers to the income from land acquisition storage and disposal. For details please refer to 8. Others of Section 18 Other Important Matters. 74. Non-operating Income Unit: RMB Amount recorded in the Item Reporting Period Same period of last year current non-recurring gains and losses Government grants 11000.00 Negative goodwill arising from a business 2131597.432131597.43 combination under common control.Income from default 1407591.86216259.821407591.86 money Gains from the write-off 353339.66443941.78353339.66 of non-current assets.Of which: income from 353339.66443941.78353339.66 scrap of fixed assets Confiscated income 88495.91 38764.54 88495.91 Other 14455147.92 8830700.25 14455147.92 Total 18436172.78 9540666.39 18436172.78 75. Non-operating Expense Unit: RMB Amount recorded in the Item Reporting Period Same period of last year current non-recurring gains and losses The disposal of non- 569149.931877262.19569149.93 current assets Among them: Loss on 569149.931877262.19569149.93 Disposal of Fixed Assets Penalty and delaying 1119970.98174342.121119970.98 payment Other 2887616.92 4487159.39 2887616.92 Total 4576737.83 6538763.70 4576737.83 247Foshan Electrical 76. Income Tax Expense (1) List of Income Tax Expense Unit: RMB Item Reporting Period Same period of last year Current income tax expense 109234078.37 42271159.52 Deferred income tax expense -31770178.24 -21144195.04 Total 77463900.13 21126964.48 (2) Adjustment Process of Accounting Profit and Income Tax Expense Unit: RMB Item Reporting Period Profit before taxation 600949011.88 Current income tax expense accounted at 90142351.78 statutory/applicable tax rate Influence of applying different tax rates by subsidiaries 1360731.89 Influence of income tax before adjustment 2457830.46 Influence of non-taxable income -5336428.60 Influence of non-deductable costs expenses and losses 3224992.77 The effect of using deductible losses of deferred income tax assets that have not been recognized in the -6096944.83 previous period Influence of unrecognized deductible temporary 31212676.44 differences and deductible losses Impact of additional deduction of R&D expenses -41229394.88 Regarded as sales 367538.81 Other impacts 1360546.29 Income tax expense 77463900.13 77. Other Comprehensive Income Refer to Note VII Notes to Main Items of Consolidated Financial Statements-57 for details. 78. Cash Flow Statement (1) Cash Related to Operating Activities Cash generated from other operating activities Unit: RMB Item Reporting Period Same period of last year Received deposits 53286881.53 70968759.75 Deposit interest 46785606.92 42458410.80 Income from subsidy 46067747.23 31099876.60 Income from waste 25670669.63 26066867.58 Rental income from property and 4592235.967000259.85 equipment utility Income from insurance 565849.48174793.99 compensation Other 43969141.26 41452845.20 Total 220938132.01 219221813.77 Notes: None. 248Foshan Electrical Cash used in other operating activities Unit: RMB Item Reporting Period Same period of last year Administrative expense paid in cash 134685611.81 128058647.93 Selling expense paid in cash 97075000.74 74111308.85 Finance costs paid in cash 2507911.36 2295193.65 Returned cash deposit 43057569.73 27751789.33 Other 141706744.76 100146605.69 Total 419032838.40 332363545.45 Notes: None. (2) Cash Related to Investing Activities Cash generated from other investing activities Unit: RMB Item Reporting Period Same period of last year Forward Settlement Margin 80711.83 Total 80711.83 Significant cash received related to investing activities Unit: RMB Item Reporting Period Same period of last year Land revitalization project 381779100.00 Total 381779100.00 Notes: None.Cash used in other investing activities Unit: RMB Item Reporting Period Same period of last year Payments related to foreign 33612950.00 exchange settlements Total 33612950.00 Significant cash paid related to investing activities None.Notes: None. (3) Cash Related to Financing Activities Cash generated from other financing activities Unit: RMB Item Reporting Period Same period of last year 249Foshan Electrical Cash deposit collected 6317233.78 15469794.51 Total 6317233.78 15469794.51 Notes: None.Cash used in other financing activities Unit: RMB Item Reporting Period Same period of last year Cash paid for acquisition of Fenghua Semiconductor under the 129409650.00 same control Cash paid as security deposit for 3114400.413648429.05 bank acceptance bills Other 4014648.18 4985695.37 Total 7129048.59 138043774.42 Notes: None.Changes in liabilities arising from financing activities □Applicable □ Not applicable Unit: RMB 250Foshan Electrical Balance at Increase in the current period Decrease in the current period the Ending Item beginning Non-cash Non-cash balance of the Cash changes Cash changes changes changes period Short-term 2200198 323750000. 16223744.7 152832597. 100019877. 307141147.borrowings 77.73 00 5 26 73 49 Long-term 2530934 115031737. 341618095. 375072393. 112088930. 222581930.borrowings 21.29 86 45 09 97 54 Other payables- 5000000 payment for 5000000.00.00 equity transfer Current portion 3439142120574788.343914214.120574788. of non-current 14.45814581 liabilities 431096725466149.515023993.1 Lease liabilities 7153845.96 2 7599278.37.921 8263384438781737.503882778.535058836.563622301.670321859. Total 53 31 81.39865295 (4) Description of Cash Flows Presented on a Net Basis None. (5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts and Disbursements but Affect the Company’s Financial Position or May Affect the Company’s Cash Flows in the Future In 2024 the Company and its subsidiaries received RMB4036473900 in various types of acceptance bills issued and endorsed by customers and RMB2660812000 in various types of acceptance bills endorsed and transferred to suppliers. In addition the Company and its subsidiaries received a total of RMB316935200 in payments for goods through bill discounting. 251Foshan Electrical 79. Supplemental Information for Cash Flow Statement (1) Supplemental Information for Cash Flow Statement Unit: RMB Supplemental information 2024 2023 1. Reconciliation of net profit to net cash flows generated from operating activities: Net profit 523485111.75 384672601.98 Add: Provision for asset 237614159.09133399711.57 impairment Depreciation of fixed assets oil-gas 532193425.19523465306.34 assets and productive living assets Depreciation of right-of-use assets 9069731.43 7408897.98 Amortization of intangible assets 22274527.25 13901913.93 Amortization of long-term prepaid 92792758.4573777294.51 expenses Loss from disposal of fixed assets intangible assets and other long- -374492447.01 -12719324.89 term assets (gains: negative) Losses from scrapping of fixed 215810.271433320.41 assets (gains: negative) Losses from fair value changes 713704.94-1129444.26 (gains: negative) Finance costs (gains: negative) 3107305.71 12920213.05 Investment loss (gains: negative) -65850578.68 -14598948.35 Decrease in deferred income tax -26846373.34-16039761.54 assets (increase: negative) Increase in deferred income tax -4925674.34-5104433.51 liabilities (“-” for decrease) Decrease in inventory (“-” for -81113668.04-14969280.77 increase) Decrease in operating receivables -235225023.13-294512387.33 (“-” for increase) Increase in operating payables (“-” -41073056.86380117504.23 for decrease) Other 6175623.20 2366795.63 Net cash flows from operating 598115335.881174389978.98 activities 2. Significant investing and financing activities without involvement of cash receipts and payments Transfer of debts into capital Current portion of convertible corporate bonds Fixed assets leased in for financing 3. Net increase/decrease of cash and cash equivalents: Ending balance of cash 2684382020.41 3101252943.88 Less: Beginning balance of cash 3101252943.88 1945971307.26 Add: Ending balance of cash equivalents 252Foshan Electrical Supplemental information 2024 2023 Less: Beginning balance of cash equivalents Net increase in cash and cash -416870923.471155281636.62 equivalents (2) Net Cash Paid For Acquisition of Subsidiaries Unit: RMB Amount Cash or cash equivalents paid in the current period for the business combination occurring in the previous 102299151.00 period Including: Zhejiang Hule Electrical Equipment Manufacturing 102299151.00 Co. Ltd.Less: Cash and cash equivalents held by subsidiary at 1296925.32 the acquisition date Including: Zhejiang Hule Electrical Equipment Manufacturing 1296925.32 Co. Ltd.Net cash paid for acquisition of subsidiaries 101002225.68 (3) Net Cash Received from Disposal of the Subsidiaries None. (4) Cash and Cash Equivalents Unit: RMB Item Ending balance Beginning balance I. Cash 2684382020.41 3101252943.88 Including: Cash on hand 40535.66 42466.76 Bank deposit on demand 2680618712.62 3097947293.67 Other monetary assets on demand 3722772.13 3263183.45 III. Ending balance of cash and cash 2684382020.413101252943.88 equivalents (5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their Usage None. (6) Monetary Assets Not Classified as Cash and Cash Equivalents Unit: RMB Reason for not Item 2023 2022 classifying the item as cash and cash equivalents Note deposits bond deposits pre-sale of 512340403.99 486328752.85 Specific purpose properties etc.Interest receivable accrued on bank deposits Interest not received 12405012.91 8467957.82 and time deposits not yet matured as at the end of 253Foshan Electrical the Reporting Period Total 524745416.90 494796710.67 (7) Notes on Other Significant Activities None. 80. Notes to Items of the Statements of Changes in Owners’ Equity Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the amount adjusted: None. 81. Foreign Currency Monetary Items (1) Foreign Currency Monetary Items Unit: RMB Ending foreign currency Ending balance converted Item Exchange rate balance to RMB Monetary assets 151520262.50 Of which: USD 16943207.85 7.1884 121794555.31 EUR 462996.15 7.5257 3484370.13 HKD 51813.01 0.92604 47980.92 IDR 57821978240.68 0.000453 26193356.14 Accounts receivable 322336908.64 Of which: USD 44515281.29 7.1884 319993648.03 EUR 216221.04 7.5257 1627214.68 HKD 174266.39 0.92604 161377.65 IDR 1224433294.72 0.000453 554668.28 Long-term borrowings Of which: USD EUR HKD Accounts payable 6047424.95 Of which: USD 700100.26 7.1884 5032600.71 Euro 130463.43 7.5257 981828.64 IDR 72837970.00 0.000453 32995.60 Other current assets 160855.05 Of which: IDR 355088415.76 0.000453 160855.05 (2) Notes to Overseas Entities Including: for Significant Oversea Entities Main Operating Place Recording Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency Relevant Reasons Shall Be Disclosed.□Applicable □Not applicable 82. Lease (1) The Company Was Lessee □Applicable □ Not applicable Unit: RMB Item Amount Simplified short-term lease charges recognized in the cost of the related assets or in current 3216256.31 254Foshan Electrical profit or loss Expenses on low-value leases included in the cost of related assets or current profit or loss 27199.87 using a simplified accounting treatment Total cash outflows related to leases 7928840.44 Variable lease payments that are not covered in the measurement of the lease liabilities □Applicable □Not applicable Simplified short-term lease or lease expense for low-value assets □Applicable □Not applicable Circumstances involving sale and leaseback transactions None. (2) The Company Was Lessor Operating leases with the Company as lessor □Applicable □ Not applicable Unit: RMB Of which: income related to Item Rental income variable lease payments not included in lease receipts Housing rental and others 10869099.09 0.00 Total 10869099.09 0.00 Finance leases with the Company as lessor □Applicable □Not applicable Undiscounted lease receipts for each of the next five years □Applicable □Not applicable Reconciliation of undiscounted lease receipts to net investment in leases None. (3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or Distributor □Applicable □Not applicable 83. Data Resources None. 84. Other None.VIII. Research and Development Expenditure Unit: RMB Item Amount for the current period Amount for the previous period Personnel labour costs 264483169.80 231096377.82 255Foshan Electrical Direct input costs 202803354.52 166919907.20 Depreciation and long-term prepaid 41317402.2541981744.02 expense Commissioned external research 8124543.459684695.96 and development costs Design fee 939546.93 971319.82 Amortization expense of intangible 50558.92254711.01 assets Others 30951790.20 32670337.98 Total 548670366.07 483579093.81 Of which: Expensed research and 548670366.07483579093.81 development expenditure Other notes In respect of R&D expense incurred by the Company expense other than that on bench-scale and pilot-scale production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale production is included in core business revenue and the relevant costs are included in cost of sales of core business.IX. Changes to the Consolidation Scope 1. Business Combination Not under the Same Control (1) Business Combination Not under the Same Control during the Current Period Unit: RMB Cash Net Income of flows of profits of Recogniti acquiree the acquiree Time of Cost of Proporti on basis from the acquiree Way to gain Acquisitio from the Acquirees gaining gaining on of of purchase from the equity n date purchase equity the equity equity purchase date to purchase date to date period- date to the period- end end of the end period Re- electing directors Zhejiang completin Hule Cash g property Electrical acquisition 01 transfer Equipmen 113665 66.00 of the 01 August 626124 269335 996320 August procedure t 723.00 % original 2024 99.51 0.74 1.55 2024 s etc. and Manufact shareholders actually uring Co. ’ equity controllin Ltd.g the acquired company (2) Combination Cost and Goodwill Unit: RMB Zhejiang Hule Electrical Equipment Manufacturing Combination cost Co. Ltd.-Cash 113665723.00 Total combination costs 113665723.00 256Foshan Electrical Less: share in the fair value of identifiable net assets 115797320.43 acquired The amount of goodwill/combination cost less than the -2131597.43 share in the fair value of identifiable net assets acquired (3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date Unit: RMB Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd.Fair value on purchase date Carrying value on purchase date Assets: Monetary assets 3835299.97 3835299.97 Accounts receivable 132228807.71 132228807.71 Inventories 26605061.77 23658451.54 Fixed assets 39372437.48 12529891.35 Intangible assets 53357797.97 2515973.93 Held-for-trading financial assets 1558500.00 1558500.00 Prepayments 1874763.21 1874763.21 Long-term prepaid expense 0.00 1651723.30 Deferred income tax assets 2818084.62 2818084.62 Total assets 261650752.73 182671495.63 Liabilities: Borrowings 10500000.00 10500000.00 Accounts payable 44024378.12 44024378.12 Deferred income tax liabilities 11855663.57 8775.00 Advances from customers 97695.29 97695.29 Contract liabilities 3345246.39 3345246.39 Employee benefits payable 4409195.96 4409195.96 Taxes payable 2054337.91 2054337.91 Other current liabilities 9954277.55 9954277.55 Total liabilities 86240794.79 74393906.22 Net assets 175409957.94 108277589.41 Less: non-controlling interests 59612637.51 36787633.21 Net assets acquired 115797320.43 71489956.20 When Hainan Technology acquired the equity of Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd. it engaged an assessment agency with relevant qualifications to assess the identifiable assets and liabilities of the target company in accordance with the asset-based method and determined the fair value of the consolidated net assets of Zhejiang Hule Electrical Equipment Manufacturing Co.Ltd. based on the assessment results. (4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair Value Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control during the Reporting Period □Yes □No (5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger None. 257Foshan Electrical (6) Other Notes None. 2. Business Combination under the Same Control None. 3. Counter Purchase Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities of the listed companies whether constituted a business and its basis the determination of the combination costs the amount and calculation of adjusted rights and interests in accordance with the equity transaction process: None. 4. Disposal of Subsidiary Whether there were any transactions or events during the period in which control of the subsidiary was lost □Yes □No Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the current period □Yes □No 258Foshan Electrical 5. Changes in Combination Scope for Other Reasons Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries etc.) and relevant information: 1. Fozhao Huaguang (Maoming) Technology Co. Ltd. completed its industrial and commercial registration in April of this period. In May the company injected capital into it. Fozhao Huaguang was included in the scope of consolidation starting from May 2024.Gaozhou NationStar Technology Co. Ltd. completed its business registration in April of the current period and NationStar injected capital into it in May. Gaozhou NationStar has been included in the merger scope since May 2024. 3. Liaowang Auto Lamp (Suzhou) Co. Ltd. completed its industrial and commercial registration in November of this period. In December Liaowang Auto Lamp injected capital into it. Suzhou Liaowang was included in the consolidated scope starting from December 2024. 4. The holding company of Hainan Technology Hule Electrical Equipment holds a 55% stake in Shanghai Lelaite and has achieved control over it. Hainan Technology acquired control of Shanghai Lelaite through the acquisition of Hule Electrical Equipment and Shanghai Lelaite was included in the consolidation scope starting from August 2024. 6. Other None.X. Equity in Other Entities 1. Equity in Subsidiary (1) Subsidiaries Unit: RMB Main Shareholding percentage Name of Registered Registration Nature of Way of operating (%) subsidiaries capital place business gaining place Directly Indirectly Foshan Fozhao Zhicheng Production Newly 50000000.00 Foshan Foshan 100.00% Technology Co. and sales established Ltd.FSL Chanchang Production Newly Lighting Co. 72782944.00 Foshan Foshan 100.00% and sales established Ltd.Foshan Taimei Production Newly Times Lamp Co. 500000.00 Foshan Foshan 70.00% and sales established Ltd.Foshan Electrical & Lighting Production Newly 35418439.76 Xinxiang Xinxiang 100.00% (Xinxiang) Co. and sales established Ltd. 259Foshan Electrical Main Shareholding percentage Name of Registered Registration Nature of Way of operating (%) subsidiaries capital place business gaining place Directly Indirectly Nanjing Fozhao Lighting Production Components 41683200.00 Nanjing Nanjing 100.00% Acquired and sales Manufacturing Co. Ltd.FSL Zhida Electric Production Newly 38150000.00 Foshan Foshan 66.84% Technology Co. and sales established Ltd. (FSL Zhida) Foshan Haolaite Production Newly Lighting Co. 17158000.00 Foshan Foshan 51.00% 10.53% and sales established Ltd.NationStar Business Optoelectronics combination 1436419.00 Germany Germany Trade 61.53% (Germany) Co. under the Ltd. same control Foshan Kelian Business New Energy Property combination 170000000.00 Foshan Foshan 100.00% Technology Co. development under the Ltd. same control Fozhao (Hainan) Production Newly Technology Co. 200000000.00 Haikou Haikou 100.00% and sales established Ltd.Zhejiang Hule Electrical Production Equipment 29000000.00 Jiaxing Jiaxing 66.00% Acquired and sales Manufacturing Co. Ltd.Shanghai Lelaite Electrical 1000000.00 Shanghai Shanghai Trade 36.30% Acquired Equipment Co.Ltd.Nanning Manufacturi Liaowang Auto 35055700.00 Nanning Nanning ng of vehicle 53.79% Acquired Lamp Co. Ltd. lamps Liuzhou Guige Manufacturi Lighting 30000000.00 Liuzhou Liuzhou ng of vehicle 53.79% Acquired Technology Co.lamps Ltd.Manufacturi Liuzhou Guige ng of Fuxuan 20000000.00 Liuzhou Liuzhou automotive 53.79% Acquired Technology Co.electronic Ltd.products Chongqing Manufacturi Guinuo Lighting 30000000.00 Chongqing Chongqing ng of vehicle 53.79% Acquired Technology Co.lamps Ltd.Qingdao Guige Manufacturi Lighting 30000000.00 Qingdao Qingdao ng of vehicle 53.79% Acquired Technology Co.lamps Ltd.Indonesia Manufacturi 40873066.42 Indonesia Indonesia 53.79% Acquired Liaowang Auto ng of vehicle 260Foshan Electrical Main Shareholding percentage Name of Registered Registration Nature of Way of operating (%) subsidiaries capital place business gaining place Directly Indirectly Lamp Co. Ltd. lamps Liaowang Auto Manufacturi Newly Lamp (Suzhou) 25000000.00 Suzhou Suzhou ng of vehicle 53.79% established Co. Ltd. lamps Business Foshan Sigma Business combination Venture Capital 50000000.00 Foshan Foshan 100.00% services under the Co. Ltd.same control Foshan Business Electronic NationStar combination 618477169.00 Foshan Foshan manufacturin 21.48% Optoelectronics under the g Co. Ltd. same control Foshan Business NationStar Electronic combination Semiconductor 820000000.00 Foshan Foshan manufacturin 21.48% under the Technology Co. g same control Ltd.Foshan Guoxing Business Electronic Electronic combination 10000000.00 Foshan Foshan manufacturin 21.48% Manufacture Co. under the g Ltd. same control Business Nanyang Baoli combination Vanadium 100000000.00 Henan Nanyang Mining 12.89% under the Industry Co. Ltd.same control Business Guangdong New combination Electronics 5000000.00 Guangzhou Guangzhou Trade 21.48% under the Information Ltd.same control Guangdong Business Fenghua Electronic combination Semiconductor 200000000.00 Guangzhou Guangzhou manufacturin 21.45% under the Technology Co. g same control Ltd.Gaozhou NationStar Electronic Newly Lighting 30000000.00 Maoming Maoming manufacturin 21.48% established Technology Co. g Ltd.Fozhao Huaguang Production Newly (Maoming) 22920000.00 Maoming Maoming 100.00% and sales established Technology Co.Ltd.Notes to holding proportion in subsidiary different from voting proportion: None.Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not controlling the investee: None.Significant structural entities and controlling basis in the scope of combination: 261Foshan Electrical None.Other notes; Guoxing Electronic Manufacture NationStar Semiconductor Baoli Vanadium Industry New Electronics Fenghua Semiconductor and Gaozhou NationStar are subsidiaries of NationStar Optoelectronics.Basis of determining whether the Company is the agent or the principal (2) Significant Non-wholly-owned Subsidiary Unit: RMB The profit or loss Shareholding Declaring dividends Balance of non- Name of attributable to the proportion of non- distributed to non- controlling interests subsidiaries non-controlling controlling interests controlling interests at the period-end interests Nanning Liaowang Auto Lamp Co. 46.21% 29129877.07 2429803.05 484479615.42 Ltd.Foshan NationStar Optoelectronics 78.52% 43226616.92 31719418.04 2987301700.06 Co. Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion: None. (3) The Main Financial Information of Significant Not Wholly-owned Subsidiary Unit: RMB Ending balance Beginning balance Name of Curre Non- Current Non- Total Non- Current Non- Total subsidiar Total Current Total nt current liabiliti current liabiliti current liabiliti current liabiliti ies assets assets assets assets assets es liability es assets es liability es Nanning Liaowan 179 1590 8969 2487 1512 5492 1567 10172815167492741766 g Auto 759 8599 8294 8428 8294 8920. 7583 6668260910223700.8459 Lamp 409 43.26 8.71 91.97 22.99 36 43.35 28.5227.6978.767179.47 Co. Ltd. 9.17 Foshan NationSt 384 24086249209632822425396725596526234038232722 ar 125 01972792915102451176291312174131584288859731 Optoelec 956 05.2669.1166.373.1919.5674.5230.0604.5873.661.5625.22 tronics 3.85 Co. Ltd.Unit: RMB Reporting Period Same period of last year Total Cash flows Total Cash flows Name of Operating comprehen from Operating comprehen from subsidiaries Net profit Net profit revenue sive operating revenue sive operating income activities income activities Nanning 1822836303803624717259070261585442471943148657062412472 Liaowang 9421.057.390.71.34717.596.224.305.63 Auto Lamp 262Foshan Electrical Reporting Period Same period of last year Total Cash flows Total Cash flows Name of Operating comprehen from Operating comprehen from subsidiaries Net profit Net profit revenue sive operating revenue sive operating income activities income activities Co. Ltd.Foshan NationStar 3472865437553543755324010823541637855355385535533896408 Optoelectro 0317.192.372.3777.59227.924.984.9859.65 nics Co.Ltd. (4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company None. (5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of Consolidated Financial Statements None. 2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the Subsidiary None. 3. Equity in Joint Ventures or Associated Enterprises (1) Significant Joint Ventures or Associated Enterprises None. (2) Main Financial Information of Significant Joint Ventures None. (3) Main Financial Information of Significant Associated Enterprises None. (4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises Ending balance/reporting Beginning balance/the same period period of last year Joint ventures: Total carrying value of investment The total of following items according to the shareholding proportions Associated enterprises: 263Foshan Electrical Total carrying value of 180300594.89179188555.15 investment The total of following items according to the shareholding proportions --Net profit 1112039.74 1833621.59 -- Other comprehensive income --Total comprehensive income 1112039.74 1833621.59 (5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to Transfer Funds to the Company None. (6) The Excess Loss of Joint Ventures or Associated Enterprises None. (7) The Unrecognized Commitment Related to Investment to Joint Ventures None. (8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises None. 4. Significant Common Operation None. 5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements Notes to the structured entity excluded in the scope of consolidated financial statements: None. 6. Other None.XI. Government Grants 1. Government Grants Recognized at the End of the Reporting Period at the Amount Receivable □Applicable □Not applicable Reasons for failing to receive government grants in the estimated amount at the estimated point in time □Applicable □Not applicable 264Foshan Electrical 2. Liability Items Involving Government Grants □Applicable □ Not applicable Unit: RMB Amount recorded into Amount non- transferred to Amount of Related to Beginning operating other income Other Ending Item newly assets/related balance income in in the changes balance subsidy to income the Reporting Reporting Period Period Deferred 65991198.1 26924957.0 24732407.7 68183747.3 Related to income 2 0 4 8 assets Deferred 11804856.6 Related to 9194263.158166026.035555432.56 income 2 income 3. Government Grants Recognized as Current Profit or Loss □Applicable □ Not applicable Unit: RMB Item Reporting Period Same period of last year Other income 49901371.11 48544426.20 Non-operating income 11000.00 XII. The Risk Related to Financial Instruments 1. Various Types of Risks Arising from Financial Instruments The Company’s main financial instruments include equity investments trading financial assets receivables financing notes receivable accounts receivable other receivables other debt investments accounts payable notes payable other payables short-term borrowings and long-term borrowings.Detailed information on these financial instruments is provided in Note 7 under the relevant items.The main risks of the Company due to financial instruments were credit risk liquidity risk and market risk. The operating management of the Company was responsible for the risk management target and the recognition of the policies.(I) Credit risk Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the other party. The credit risk the Company faced was selling on credit which leads to customer credit risk.The Company will evaluate credit risk of new customer and set credit limit once the balance of account receivable over credit limit require the customer to pay or producing and delivering goods shall be approved by the management of the Company.The Company through monthly aging analysis of account receivable and monitoring the collection situation of the customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation the Company should conduct necessary measures to requesting the payment timely.(II) Liquidity risk 265Foshan Electrical Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in the way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the Company. The financial department through supervising the balance of the cash and securities can be convert to cash at any time and the rolling prediction of cash flows in future 12 months to ensure the Company have sufficient cash to pay the liabilities under the case of all reasonable prediction.iii. Market risk Market risk was referred to risk of the fair value or future cash flows of financial instrument changed due to the change of market price including: exchange rate risk interest rate risk and other price risk. 1. Exchange rate risk Exchange rate risk refers to the risk of loss due to exchange rate changes. The Company’s exposure to foreign exchange risk is mainly related to the US dollar and the euro. As of 31 December 2023 the Company’s assets and liabilities were in RMB except for the balances of usd euro Hong Kong dollar and rupiah as set out in this Note VII-81. Foreign Currency Monetary Items. Foreign exchange risk arising from the assets and liabilities of such foreign currency balances may have a certain impact on the Company’s operating results.The Company made efforts to avoid exchange rate risk through forward exchange settlement improving operation management and promoting the international competitiveness of the Company etc. 2. Interest rate risk Interest rate risk is refers to fluctuation risk of the fair value or future cash flows of financial instrument change due to the change of market interest rates. The interest rate risk faced by the Company mainly comes from bank borrowings. By establishing a good bank-enterprise relationship the Company reasonably designed the credit line credit variety and credit period ensured sufficient credit line of banks and met various short or long-term financing needs of the Company with preferential loan interest rates. As of 31 December 2024 the balance of the Company’s fixed-rate borrowing was RMB637826956.57 accounting for 100% of the total borrowing balance. Therefore the market risk of interest rate changes borne by the Company is not significant. 3. Other price risk The Group’s other price risks arise primarily from investments in equity instruments as there is the risk of changes in the price of equity instruments.As of 31 December 2024 if the expected prices of the Group’s various equity instrument investments increase or decrease by 1% and other factors remain unchanged the Group shall increase or decrease comprehensive income by approximately RMB1059041.21 (31 December 2023: increasing or decreasing comprehensive income by approximately RMB997232.34). 2. Hedge (1) The Company Carries out Hedging Business for Risk Management □Applicable □Not applicable (2) The Company Conducts Eligible Hedging Operations and Applies Hedge Accounting None. 266Foshan Electrical (3) The Company Conducts Hedging Operations for Risk Management Expects to Achieve Its Risk Management Objectives but Does Not Apply Hedge Accounting □Applicable □Not applicable 3. Financial Assets (1) Classification of Transfer Methods □Applicable □ Not applicable Unit: RMB Nature of Amount of Transfer transferred Derecognized transferred Basis for derecognition method financial or not financial assets assets Since the credit risk and deferred payment risk of bank acceptance bills in accounts Accounts receivable financing are minimal and the Endorsement receivable 321066873.83 Yes interest risk related to the notes has been of notes financing transferred to banks it can be judged that almost all risks and rewards of ownership of the notes have been transferred Accounts Discount of Almost all risks and rewards of ownership of receivable 93903013.42 Yes notes the notes have been transferred financing Endorsement Notes Almost all risks and rewards of ownership of 77576500.22 Yes of notes receivable the notes have been transferred Almost all its risks and rewards have been Endorsement Notes 368196176.60 Not retained including the risk of default of notes receivable associated with it Almost all its risks and rewards have been Discount of Notes 4282836.39 Not retained including the risk of default notes receivable associated with it Cloud Credit Almost all its risks and rewards have been Accounts Endorsement 1050000.00 Not retained including the risk of default receivable associated with it Total 866075400.46 (2) Financial Assets Derecognized due to Transfer □Applicable □ Not applicable Unit: RMB Method of financial Amount of derecognized Gains or losses related to Item assets transfer financial assets derecognition Accounts receivable Endorsement of notes 321066873.83 financing Accounts receivable Discount of notes 93903013.42 financing Notes receivable Endorsement of notes 77576500.22 Total 492546387.47 (3) Continued Involvement in the Transfer of Assets Financial Assets □Applicable □ Not applicable 267Foshan Electrical Unit: RMB Amount of assets Amount of liabilities Item Method of assets transfer resulting from continued resulting from continued involvement involvement Notes receivable 372479012.99 372479012.99 Of which: Bank Endorsement of notes 367343976.60 367343976.60 acceptance bills Commercial Acceptance Endorsement of notes 852200.00 852200.00 Draft Bank Acceptance Draft Discount of notes 4282836.39 4282836.39 Cloud Credit Accounts receivable 1050000.00 1050000.00 Endorsement Total 373529012.99 373529012.99 XIII. The Disclosure of Fair Value 1. Ending Fair Value of Assets and Liabilities at Fair Value Unit: RMB Closing fair value Fair value Fair value Fair value Item measurement items measurement items measurement items Total at level 1 at level 2 at level 3 I. Consistent fair -------- value measurement i. Trading financial 1988814.9141661005.5643649820.47 assets 1. Financial assets at fair value through 1988814.91 41661005.56 43649820.47 profit or loss (1) Investments in 1988814.911988814.91 equity instruments (2) Wealth management 41661005.56 41661005.56 products ii. Other investments in debt 1140022863.72 1140022863.72 obligations iii. Other equity instrument 687081069.62 39582543.80 726663613.42 investment iv. Receivable 352694866.89352694866.89 financing Total assets measured at fair 689069884.531181683869.28392277410.692263031164.50 value on a recurring basis vi. Trading 275250.00275250.00 financial liabilities Of which:Other 275250.00 275250.00 Total assets measured at fair 275250.00275250.00 value on a recurring basis II. Inconsistent fair -------- value measurement 268Foshan Electrical 2. Basis for Determining the Market Value of Continuing and Discontinuing Level 1 Fair Value Measurement Items Level 1 fair value measurements are determined based on the market price of equities at the balance sheet date and the mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as quoted prices in an active market. 3. Continuing and Discontinuing Level 2 Fair Value Measurement Items Qualitative And Quantitative Information On The Valuation Techniques Used And Significant Parameters The fair value of financial products subscribed by the Group and other investments in debt obligations that are measured at fair value is determined by reference to the expected rate of return provided by the financial institutions. 4. Continuing and Discontinuing Level 3 Fair Value Measurement Items Qualitative And Quantitative Information On The Valuation Techniques Used And Significant Parameters (1) The Company measured the investment at cost as a reasonable estimate of fair value because there were no significant changes in the business environment and operating and financial conditions of the investee GF Bank. (2) The Company measured the investee Shenzhen Zhonghao (Group) Company Limited at nil as a reasonable estimate of fair value due to the deterioration of its business environment and operating and financial conditions. (3) The Company measured the investment at cost as a reasonable estimate of fair value because there were no significant changes in the business environment and operating and financial conditions of the investee companies Foshan Nanhai District United Guangdong New Light Source Industry Innovation Center Beijing Guang Rong Union Semiconductor Lighting Industry Investment Center and Guangdong Rising Finance Co. Ltd. (4) The receivables financing represents bank acceptance notes held by the Company with a short remaining maturity the face value of which approximates the fair value and the face amount is used to recognize the fair value at the statement date. 5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3 None. 6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if Conversion Happens among Consistent Fair Value Measurement Items at Different Levels None. 7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes None. 8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value Financial assets and liabilities not measured at fair value include: monetary assets accounts receivable and accounts payable etc. There is small difference between the carrying value of above financial assets and liabilities and fair value. 9. Other None. 269Foshan Electrical XIV. Related Party and Related-party Transactions 1. The parent company of the Company Proportion of Proportion of voting rights share held by the Registration Nature of Registered owned by the Name Company as the place business capital Company as the parent against the parent against the Company (%) Company (%) Hongkong Wah Shing Holding Hong Kong Investment HKD110000 12.74% 12.74% Company Limited Guangdong Electronics Production RMB1162 Information Guangzhou 8.54% 8.54% and sales million Industry Group Ltd.Guangdong Rising Holdings Group Guangzhou Investment RMB10 billion 8.38% 8.38% Co. Ltd.Rising Investment RMB360 million Development Hong Kong Investment and HKD1 1.65% 1.65% Limited million Total 31.30% 31.30% Notes: Information on parent company of the Company Hongkong Wah Shing Holding Company Limited (hereinafter referred to as “Hongkong Wah Shing”) the largest shareholder of the Company is a wholly-owned subsidiary of Guangdong Electronics Information Industry Group Ltd. (hereinafter referred to as “Electronics Group”) and ElectronicsGroup Shenzhen Rising Investment Development Co. Ltd. (hereinafter referred to as “ShenzhenRising”) Guangdong Rising Finance Holding Co. Ltd. (GD Rising Finance) (renamed Guangdong Rising Capital Investment Co. Ltd. on 13 December 2021 hereinafter referred to as “Rising Capital”) and Rising Investment Development Limited (hereinafter referred to as “Rising Investment”) are wholly-owned subsidiaries of Guangdong Rising Holdings Group Co. Ltd. (hereinafter referred to as “Rising Holdings Group”). According to the relevant provisions of the Company Law and the Measures for the Administrative Measures on Acquisition of Listed Companies Electronics Group Shenzhen Rising Rising Capital and Rising Investment are concerted actors and Rising Holdings Group becomes the actual controller of the Company. In December 2021 Shenzhen Rising and Rising Capital transferred all their shares of the Company to Rising Holdings Group. In February 2022 the Company repurchased and cancelled a portion of its shares resulting in the total shareholding of the aforementioned concerted parties accounting for 30.82% of the Company’s shares. In November 2023 the Company issued 186783583 A-shares in a private placement to specific investors withRising Holdings Group subscribing to 46695895 shares. As a result the total shareholding of the concerted parties accounted for 30.12% of the Company’s shares. From 3 June 2024 to 8 November 2024 Electronics Group and Hong Kong Wah Shing increased their shareholdings in the Company by 18342550.00 shares accounting for 1.18% of the Company’s total share capital. As of 31 December 2024 the total shareholding of the aforementioned concerted parties in the Company accounted for 31.30%.The final controller of the Company is Guangdong Rising Holdings Group Co. Ltd. 270Foshan Electrical 2. Subsidiaries of the Company Refer to Note X Equity in Other Entities -1. Equity in Subsidiaries for details. 3. Information on the Joint Ventures and Associated Enterprises of the Company Refer to Note X Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of significant joint ventures or associated enterprises of the Company. 4. Information on Other Related Parties Name Relationship with the Company Prosperity Lamps & Components Limited Shareholder owning over 5% shares Guangdong Zhongren Group Construction Co. Ltd Under same actual controller Guangdong Fenghua Advanced Technology (Holding) Under same actual controller Co. Ltd.Primatronix Nanho Technology Ltd. Under same actual controller Foshan Fulong Environmental Technology Co. Ltd. Under same actual controller Dongguan Hengjian Environmental Protection Under same actual controller Technology Co. Ltd.Shenzhen Longgang Dongjiang Industrial Waste Under same actual controller Treatment Co. Ltd.Zhuhai Dongjiang Environmental Protection Under same actual controller Technology Co. Ltd.Guangzhou Haixinsha Industrial Co. Ltd. Under same actual controller Shenzhen Yuepeng Construction Co. Ltd. Under same actual controller Guangdong Yixin Changcheng Construction Group Under same actual controller Guangdong Zhongnan Construction Co. Ltd. Under same actual controller Guangdong Fenghua New Energy Co. Ltd. Under same actual controller Guangdong Electronics Information Industry Group Under same actual controller Ltd.Guangdong Rising Cultural Industry Development Co.Ltd. (formerly known as Guangdong Great Wall Hotel Under same actual controller Co. Ltd.) Guangzhou Shengfeng Catering Management Service Under same actual controller Co. Ltd.Guangdong Huajian Enterprise Group Co. Ltd. Under same actual controller Guangdong Rising Finance Co. Ltd. Under same actual controller Guangdong Xintao Microelectronics Co. Ltd. Under same actual controller Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Under same actual controller Guangdong Zhongjin Lingnan Engineering Under same actual controller Technology Co. Ltd.Guangdong Huajian Engineering Construction Co.Under same actual controller Ltd.Guangdong Rising Research and Development Under same actual controller Institute Co. Ltd.Shandong Zhongjin Lingnan Copper Co. Ltd. Under same actual controller Shantou Rising Infrastructure Construction Investment Under same actual controller Co. Ltd.Guangdong Semiconductor Device Factory Under same actual controller Guangdong Rising Mining Group Co. Ltd. (formerly known as Guangdong Rising Nonferrous Metals Group Under same actual controller Co. Ltd.) Guangzhou Wanshun Investment Management Co.Under same actual controller Ltd.Jiangmen Dongjiang Environmental Company Limited Under same actual controller Zhuhai Doumen District Yongxingsheng Under same actual controller 271Foshan Electrical Name Relationship with the Company Environmental Industry Waste Recovery and Comprehensive Treatment Co. Ltd.Ramada Pearl Hotel Guangzhou Under same actual controller Guangdong Dabaoshan Mining Co. Ltd. Under same actual controller Guangzhou Huajian Business Development Co. Ltd. Under same actual controller Guangdong Rising South Construction Co. Ltd. Under same actual controller Guangdong Rising Urban Services Co. Ltd. (formerly known as Guangdong Heshun Property Management Under same actual controller Co. Ltd.) Guangdong Rising Hydrogen Energy Co. Ltd. Under same actual controller Guangdong Zhuyuan Construction Engineering Co.Under same actual controller Ltd.Guangdong Rising Commercial Development Co. Ltd.(renamed Guangzhou Tianxin Property Management Under same actual controller Company) Traxon Technologies Limited Enterprise controlled by related natural person Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person Hangzhou Times Lighting Electric Appliances Co.Enterprise controlled by related natural person Ltd.Enterprise significantly affected by related natural Nanning Ruixiang Industrial Investment Co. Ltd.person Under same actual controller (cancelled in August Guangdong The Great Wall Building Co. Ltd. 2023) Enterprises controlled by the same actual controller Guangdong Electronic Technology Research Institute (removed from the balance sheet in October 2023) 5. List of Related-party Transactions (1) Information on Acquisition of Goods and Reception of Labor Service Information on acquisition of goods and reception of labor service Unit: RMB Amount The accounted Whether approval Same period Related party Content for in the exceed trade trade of last year current credit or not credit period Guangdong Fenghua Advanced Purchase of 6884215. 2986035.20 Technology (Holding) Co. Ltd. materials 25 1600000 Not 0.00 Guangdong Fenghua Advanced Receiving labor 3584.91 Technology (Holding) Co. Ltd. service Guangzhou Shengfeng Catering Receiving labor 4135911.Management Service Co. Ltd. service 57 1200000 Not 0.00 Guangdong Rising Cultural Industry Development Co. Ltd. Receiving labor 296727.8 23365.00 (formerly known as Guangdong service 5 Great Wall Hotel Co. Ltd.) 272Foshan Electrical Amount The accounted Whether approval Same period Related party Content for in the exceed trade trade of last year current credit or not credit period Guangdong Rising Commercial Development Co. Ltd. (renamed Receiving labor 90119.9956106.76 Guangzhou Tianxin Property service Management Company) Guangdong Rising Cultural Industry Development Co. Ltd. Purchase of 4911.86 (formerly known as Guangdong materials Great Wall Hotel Co. Ltd.) Receiving labor Ramada Pearl Hotel Guangzhou 107037.44 service Guangdong The Great Wall Receiving labor 22053.55 Building Co. Ltd. service Guangdong Xintao Purchase of 3484936.Microelectronics Co. Ltd. materials 83 Shenzhen Yuepeng Construction Receiving labor 2340079. 1681659.50 Co. Ltd. service 65 Guangdong Rising South Receiving labor 652798.1 Construction Co. Ltd. service 7 Guangdong Electronics Purchase of 638973.4 Information Industry Group Ltd. materials 4 Shenzhen Yuepeng Receiving labor 2340079. 3000000. 1681659.50 Construction Co. Ltd. service 65 Yes 00 Guangdong Rising South Receiving labor 652798.1 Construction Co. Ltd. service 7 Zhuhai Dongjiang Receiving labor 434246.5 Environmental Protection 214012.32 service 4 Technology Co. Ltd.Primatronix Nanho Technology Receiving labor 433225.6 5249.00 Ltd. service 6 Guangdong Rising Hydrogen Receiving labor 316592.9 Energy Co. Ltd. service 3 Guangdong Rising Urban Receiving labor 154938.0 Services Co. Ltd. (formerly 273Foshan Electrical Amount The accounted Whether approval Same period Related party Content for in the exceed trade trade of last year current credit or not credit period known as Guangdong Heshun service 2 Property Management Co. Ltd.) Foshan Fulong Environmental Receiving labor 85601.30346191.32 Technology Co. Ltd. service Primatronix Nanho Technology Purchase of 62017.70 Ltd. materials Guangdong Fenghua New Receiving labor 59566.39 Energy Co. Ltd. service Shenzhen Longgang Dongjiang Receiving labor Industrial Waste Treatment Co. 51756.22 156034.70 service Ltd.Zhuhai Doumen District Yongxingsheng Environmental Receiving labor Industry Waste Recovery and 45166.12 43504.72 service Comprehensive Treatment Co.Ltd.Jiangmen Dongjiang Receiving labor Environmental Company 2169.81 82209.44 service Limited Guangdong Rising Holdings Receiving labor 1428.57 Group Co. Ltd. service Dongguan Hengjian Receiving labor Environmental Protection 76930.19 service Technology Co. Ltd.Guangdong Dabaoshan Mining Receiving labor 25471.68 Co. Ltd. service Guangzhou Haixinsha Industrial Receiving labor 3724279. 1982823.87 Co. Ltd. service 84 Guangzhou Huajian Business Receiving labor 240408.7 9000000.Not Development Co. Ltd. service 4 00 Guangdong Huajian Enterprise Receiving labor 49237.92 Group Co. Ltd. service Hangzhou Times Lighting Purchase of 1300.88 3000000. Not 274Foshan Electrical Amount The accounted Whether approval Same period Related party Content for in the exceed trade trade of last year current credit or not credit period Electric Appliances Co. Ltd. materials 00 PROSPERITY LAMPS & Purchase of 55967.88 COMPONENTS LIMITED materials Guangdong Zhongren Group Receiving labor 1531731 46260034.4 Not Construction Co. Ltd service 3.48 2 Guangdong Zhongnan Receiving labor 1243930 126639979.Not Construction Co. Ltd. service 5.64 72 Guangdong Yixin Changcheng Receiving labor 3923726. 142484829.Not Construction Group service 90 61 55870954300000323253081. Total Not 7.270.0023 Information of sales of goods and provision of labor service Unit: RMB Reporting Same period of Related party Content Period last year Guangdong Fenghua Advanced Technology (Holding) Sale of products 10819750.06 12695399.38 Co. Ltd.PROSPERITY LAMPS & COMPONENTS LIMITED Sale of products 9616900.56 26429431.11 Guangdong Xintao Microelectronics Co. Ltd. Sale of products 1791682.84 Shantou Rising Infrastructure Construction Investment Sale of products 1426923.55 Co. Ltd.Traxon Technologies Limited Sale of products 952271.46 Guangdong Rising Mining Group Co. Ltd. (formerly known as Guangdong Rising Nonferrous Metals Group Sale of products 99577.88 349463.13 Co. Ltd.) Guangdong Zhongnan Construction Co. Ltd. Sale of products 96507.96 2836654.66 Guangzhou Wanshun Investment Management Co.Sale of products 59565.75 0.00 Ltd.Shandong Zhongjin Lingnan Copper Co. Ltd. Sale of products 9102.65 635444.25 Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Sale of products 985342.48 Guangdong Zhuyuan Construction Engineering Co.Sale of products 463890.89 Ltd.Providing labor Guangdong Zhongnan Construction Co. Ltd. 452550.02 services Providing labor Guangdong Yixin Changcheng Construction Group 121035.60 563380.10 services Providing labor Guangdong Zhongren Group Construction Co. Ltd 5504.59 256834.10 services Providing labor Guangdong Rising Holdings Group Co. Ltd. 52.83 258120.00 services Guangdong Rising Urban Services Co. Ltd. (formerly Providing labor 603820.91 275Foshan Electrical Reporting Same period of Related party Content Period last year known as Guangdong Heshun Property Management services Co. Ltd.) Total 25451425.75 46077781.01 Notes: 1. The Company’s related party transaction pricing policies are as follows: The pricing of related party transactions follows market principles based on market prices at the time of transaction and relevant funds are also paid on schedule according to actual transactions. 2. The related-party transactions between the Company and its subsidiaries and between subsidiaries have been offset during report consolidation. (2) Information on Related-party Trusteeship/Contract Lists of trusteeship/contract: None.Lists of entrust/contractee Unit: RMB Charge Name of the Name of the Pricing recognized in entrustee/ Type Start date Due date entruster/contractee basis this Reporting contractor Period Guangdong Foshan NationStar 30 31 Zhongren Group Optoelectronics Co. December December Construction Co.Ltd. 2020 2022 Ltd Guangdong Foshan Electrical Yixin 29 28 May and Lighting Co. Changcheng December 2021 Ltd. Construction 2022 Group Guangdong Foshan Electrical Yixin 11 1 March and Lighting Co. Changcheng December 2022 Ltd. Construction 2022 Group Guangdong Foshan Kelian New 23 Zhongnan 23 June Energy Technology December Construction Co. 2021 Co. Ltd. 2022 Ltd.Guangdong Foshan Kelian New 31 Huajian 1 January Energy Technology December Enterprise Group 2025 Co. Ltd. 2034 Co. Ltd.Notes to entrust/contractee: 1. The Company’s subsidiary Foshan NationStar Optoelectronics Co. Ltd. entered into the General Contracting Contract of NationStar Optoelectronics for the Survey Design and Construction of the Geely Industrial Park with Guangdong Zhongren Group Construction Co. Ltd. Guangdong Architectural Design & Research Institute Co. Ltd. and CSIC International Engineering Co. Ltd. 276Foshan Electrical on 30 December 2020. The above parties take charge of the survey design and construction of the Geely Industrial Park. The total price of the contract is RMB509292500. As of the date of this Report the project has not been completed and accepted. 2. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co. Ltd. for the Design and Construction of the Office Buildings of Gaoming Headquarters Production Base Phase II with Guangdong Yixin Changcheng Construction Group Co. Ltd. and Guangdong Architectural Design & Research Institute Co. Ltd. on 28 May 2021. The above parties take charge of the design and construction of Gaoming office buildings. The total price of the contract is RMB175025600 and the planned total construction period is 560 calendar days (560 days for construction including 90 days for design). As of the date of this Report the project has passed the completion acceptance check. 3. On 1 March 2022 the Company signed a General Contract for Design and Construction of the Smart LED Lighting Production Factory Buildings 1-3 at the Gaoming Production Base of Foshan Electrical and Lighting Co. Ltd. with Guangdong Yixin Great Wall Construction Group Co. Ltd.and Guangdong Architectural Design & Research Institute Co. Ltd. The aforementioned companies were responsible for the design and construction of the three buildings in Gaoming. The tentative total contract value was RMB 129991400 with a planned total construction period of 285 calendar days (30 days for design and 255 days for construction). The project has now been completed and accepted. 4. On 23 June 2021 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd. signed a General Contract for Design and Construction of the Decoration Engineering of Kelian Building with Guangdong Zhongnan Construction Co. Ltd. and Guangdong Architectural Design & Research Institute Co. Ltd. The aforementioned companies were responsible for the interior design and construction of the building. The tentative total contract value was RMB189070200 with a planned total construction period of 240 calendar days (60 days for design and 210 days for Building 2 and 240 days for Building 1). The construction period for the self-use floors starts from the actual commencement of construction. The project has now been completed with the self-use floors of Building 2 having passed acceptance and the property management company is currently conducting the handover inspection for Building 1. 5. On 21 April 2023 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd. signed the Kelian Building Operation and Leasing Service Contract and the Kelian Building Property Management Service Contract with Huajian Group. The industrial (R&D center) area (located in Building 1) commercial (service apartments) commercial (shops) and part of the underground parking lot totaling 70340.04 square meters were entrusted to Huajian Group for operation and leasing. The operation and leasing service period is 10 years from 1 January 2025. (3) Information on Related-party Lease The Company was lessor: Unit: RMB The lease income The lease income Name of lessee Category of leased assets confirmed in the confirmed in the same Reporting Period period of last year Guangdong Rising Research and Development Institute Plant 1353643.59 1371318.77 Co. Ltd. and its majority- owned subsidiaries 277Foshan Electrical The Company served as the lessee: Unit: RMB Rental expenses Variable lease of short-term payments not Income lease simplified included in the expense of Increased right- Paid rent treated and low- measurement of lease liabilities of-use assets Category value asset lease lease liabilities undertaken Name of lessor of leased (if applicable) (if applicable) assets Same Same Same Same Same Reporti perio perio Reportin period Reportin period period Reportin Reportin ng d of d of g Period of last g Period of last of last g Period g Period Period last last year year year year year Guangdong Rising Houses 68911606812379 Holdings Group and 45.186.36546.50 Co. Ltd. buildings Guangdong Rising Commercial Development Co.Houses 219 26 65 Ltd. (renamed 3476 5495.6 35678 and 647. 88. 598 Guangzhou 97.25 3 2.85 buildings 41 29 .04 Tianxin Property Management Company) Guangdong The Houses 649 18 Great Wall and 54.2 01.Building Co. Ltd. buildings 9 29 (4) Information on Related-party Guarantee None. (5) Information on Inter-bank Lending of Capital of Related Parties None. (6) Information on Assets Transfer and Debt Restructuring by Related Party None. (7) Information on Remuneration for Key Management Personnel Unit: RMB Item Reporting Period Same period of last year Chairman of the Board 2884609.72 1705572.73 General Manager 2641336.55 1470932.32 Chairman of the Supervisory 2608793.591316856.34 Committee Secretary of the Board of Directors 768328.52 535162.42 Chief Financial Officer 2535084.65 1419623.28 Other 11553385.20 10108242.96 Total 22991538.23 16556390.05 278Foshan Electrical (8) Other Related-party Transactions In accordance with the Financial Service Agreement signed by the Company in 2024 the total maximum daily deposit balance of the Company and its majority-owned subsidiaries deposited in Guangdong Rising Finance Co. Ltd. shall not exceed RMB1.5 billion and the general credit limit provided by Guangdong Rising Finance Co. Ltd. for the Company and its majority-owned subsidiaries shall not exceed RMB2 billion. As of 31 December 2024 the deposit balance of the Company and its subsidiaries deposited in Guangdong Rising Finance Co. Ltd. is RMB1482165300. The undue interest receivable is RMB 5258600. 6. Accounts Receivable and Payable of Related Party (1) Accounts Receivable Unit: RMB Ending balance Beginning balance Project name Related party Carrying Bad debt Carrying Bad debt amount provision amount provision Monetary Guangdong Rising capital- accrued 5153062.03 5226458.64 Finance Co. Ltd.interest Other current Guangdong Rising assets- accrued 105555.56 Finance Co. Ltd.interest Guangdong Fenghua Accounts Advanced 5584276.94111685.542992978.9559859.58 receivable Technology (Holding) Co. Ltd.PROSPERITY Accounts LAMPS & 3453458.25422680.164612923.23188722.11 receivable COMPONENTS LIMITED Guangdong Yixin Accounts Changcheng 2558600.74 76758.02 7510483.08 225314.49 receivable Construction Group Guangdong Rising Urban Services Co.Ltd. (formerly known Accounts as Guangdong 2332537.86 623014.72 2332537.86 206392.47 receivable Heshun Property Management Co.Ltd.) Shenzhen Zhongjin Accounts Lingnan Nonfemet 1555346.68 46660.40 receivable Co. Ltd.Guangdong Accounts Zhongnan 510276.71 51027.67 510276.71 15308.30 receivable Construction Co. Ltd.Guangdong Zhongjin Accounts Lingnan Engineering 504147.00 50414.70 566449.00 16993.47 receivable Technology Co. Ltd.Guangdong Huajian Accounts Engineering 355473.15 7109.46 266736.05 5334.72 receivable Construction Co. Ltd. 279Foshan Electrical Ending balance Beginning balance Project name Related party Carrying Bad debt Carrying Bad debt amount provision amount provision Guangdong Rising Accounts Research and 239918.2223991.82289918.228697.55 receivable Development Institute Co. Ltd.Guangdong Xintao Accounts Microelectronics Co. 138827.00 13882.70 138827.00 4164.81 receivable Ltd.Shandong Zhongjin Accounts Lingnan Copper Co. 44297.00 35437.60 44297.00 22148.50 receivable Ltd.Guangdong Zhuyuan Accounts Construction 15206.96 1520.70 146462.96 2929.26 receivable Engineering Co. Ltd.Guangdong Zhongren Accounts Group Construction 10286.00 308.58 receivable Co. Ltd Shantou Rising Accounts Infrastructure 242112.687263.38 receivable Construction Investment Co. Ltd.Guangdong Rising Accounts Holdings Group Co. 3850.00 77.00 receivable Ltd.Guangdong Rising Urban Services Co.Ltd. (formerly known Prepayments as Guangdong 60317.70 Heshun Property Management Co.Ltd.) Guangdong Rising Prepayments Holdings Group Co. 39428.00 39428.00 Ltd.Prosperity (China) Prepayments Electrical Company 13959.24 Limited Guangdong Fenghua Advanced Prepayments 148.68 148.68 Technology (Holding) Co. Ltd.Hangzhou Times Prepayments Lighting Electric 1300.88 Appliances Co. Ltd.Nanning Ruixiang Other Industrial Investment 2587607.38 203049.97 1791739.20 53752.18 receivables Co. Ltd.Guangdong Rising Commercial Development Co.Other Ltd. (renamed 816441.49 816441.49 receivables Guangzhou Tianxin Property Management Company) 280Foshan Electrical Ending balance Beginning balance Project name Related party Carrying Bad debt Carrying Bad debt amount provision amount provision Guangdong Zhongren Other Group Construction 586288.04 17588.64 receivables Co. Ltd Guangdong Rising Other Holdings Group Co. 74761.92 6868.51 67165.92 1343.32 receivables Ltd.Guangdong Other Semiconductor 5000.00 500.00 5000.00 150.00 receivables Device Factory Guangdong Huajian Other Enterprise Group Co. 304.31 30.43 304.31 9.13 receivables Ltd.Total 26745526.86 2508971.11 26789398.37 818460.27 (2) Accounts Payable Unit: RMB Ending carrying Beginning carrying Project name Related party amount amount Guangdong Zhongren Group Notes payable 119158.00 373870.86 Construction Co. Ltd Guangdong Fenghua Advanced Notes payable 74812.50 Technology (Holding) Co. Ltd.Notes payable Primatronix Nanho Technology Ltd. 15052221.04 Guangdong Zhongren Group Accounts payable 99422072.40 117665437.46 Construction Co. Ltd Guangdong Fenghua Advanced Accounts payable 3976905.41 1385589.20 Technology (Holding) Co. Ltd.Guangdong Electronic Technology Accounts payable 2560606.36 0.00 Research Institute Shenzhen Longgang Dongjiang Accounts payable 1381887.30 1174680.84 Industrial Waste Treatment Co. Ltd.Zhuhai Dongjiang Environmental Accounts payable 1003260.00 506936.01 Protection Technology Co. Ltd.Guangzhou Haixinsha Industrial Co.Accounts payable 638973.44 Ltd.Shenzhen Yuepeng Construction Co.Accounts payable 99516.27 Ltd.Guangdong Yixin Changcheng Accounts payable 95998.00 14457.85 Construction Group Guangdong Zhongnan Construction Accounts payable 53946.92 Co. Ltd.PROSPERITY LAMPS & Accounts payable 14567.75 COMPONENTS LIMITED Guangdong Fenghua New Energy Co.Accounts payable 7352.40 9478.00 Ltd. 281Foshan Electrical Ending carrying Beginning carrying Project name Related party amount amount Guangdong Electronics Information Accounts payable 65992673.05 Industry Group Ltd.Guangdong Rising Cultural Industry Development Co. Ltd. (formerly Accounts payable 43398748.24 known as Guangdong Great Wall Hotel Co. Ltd.) Guangdong Xintao Microelectronics Accounts payable 58230.70 Co. Ltd.Guangzhou Shengfeng Catering Accounts payable 46500.00 Management Service Co. Ltd.Accounts payable Primatronix Nanho Technology Ltd. 1325.10 Nanning Ruixiang Industrial Other payables 91046577.48 103639661.12 Investment Co. Ltd.Guangdong Huajian Enterprise Group Other payables 52340650.63 Co. Ltd.Shenzhen Yuepeng Construction Co.Other payables 38499432.70 423469.05 Ltd.Guangdong Fenghua Advanced Other payables 5215652.63 3593345.15 Technology (Holding) Co. Ltd.Guangdong Zhongnan Construction Other payables 5035015.07 5030015.07 Co. Ltd.Other payables Primatronix Nanho Technology Ltd. 499150.37 474900.64 Guangzhou Haixinsha Industrial Co.Other payables 347000.00 Ltd.Zhuhai Dongjiang Environmental Other payables 13624.00 Protection Technology Co. Ltd.Shenzhen Longgang Dongjiang Other payables 8429.40 8028.00 Industrial Waste Treatment Co. Ltd.Guangzhou Shengfeng Catering Other payables 154568.76 Management Service Co. Ltd.Guangdong Xintao Microelectronics Other payables 20000.00 Co. Ltd.Guangdong Yixin Changcheng Other payables 20000.00 Construction Group Contract liabilities Prosperity Lamps & Components other current 218729.24 Limited liabilities Contract liabilities other current Primatronix Nanho Technology Ltd. 59428.00 59428.00 liabilities Other current Guangdong Fenghua Advanced 693580.58339669.91 liabilities Technology (Holding) Co. Ltd.Other current Guangdong Yixin Changcheng 464919.17339220.26 liabilities Construction Group Other current Guangdong Zhongnan Construction 150000.00 liabilities Co. Ltd. 282Foshan Electrical Ending carrying Beginning carrying Project name Related party amount amount Other current Guangzhou Haixinsha Industrial Co. 6700000.00 liabilities Ltd.Other current Guangdong Zhongren Group 69483.06 liabilities Construction Co. Ltd Total 304041246.02 366551937.37 7. Commitments of Related Party Time of XIII. Commitment and commitment Term of Performance of No. Promisor Contingency making and commitment undertaking term Electronics Group December 04 and Hong Kong Long-term Ongoing 2015 Rising Investment Rising Holdings November 04 Long-term Ongoing About avoidance of Group 2021 1 horizontal competition Rising Holdings Group Rising 27 October Capital and Long-term Ongoing 2021 Hongkong Wah Shing Electronics Group December 04 and Hong Kong Long-term Ongoing 2015 Rising Investment Rising Holdings November 04 About reduction and Long-term Ongoing Group 2021 2 regulation of related-party transactions Rising Holdings Group Rising 27 October Capital and Long-term Ongoing 2021 Hongkong Wah Shing Electronics Group December 04 and Hong Kong Long-term Ongoing 2015 Rising Investment 3 About independence Rising Holdings November 04 Long-term Ongoing Group 2021 283Foshan Electrical Rising Holdings Group Rising Capital Electronics About effective Group Hongkong 27 October 4 performance of measures Wah Shing Hong Long-term Ongoing 2021 to fill up returns Kong Rising Investment and Shenzhen Rising Investment About compensation for Rising Holdings possible violations of laws Group Electronics 27 October 5 and regulations by Long-term Ongoing Group and Rising 2021 NATIONSTAR Capital OPTOELECTRONICS Rising Holdings About the truthfulness Group Electronics 27 October Long-term Ongoing accuracy and Group and Rising 2021 completeness of the Capital 6 information provided during this major asset Director and senior restructuring 27 October management office Long-term Ongoing 2021 of FSL 27 October Electronics Group Long-term Ongoing 2021 About the clarity of the 7 underlying assets of this major asset restructuring Rising Holdings 27 October Group and Rising Long-term Ongoing 2021 Capital About measures to fill up returns for risks arising Director and senior 27 October 8 from diluting immediate management office Long-term Ongoing 2021 return in major asset of FSL restructuring About the measures to fill up immediate returns Director and senior 14 March 9 diluted by the issuance of management office Long-term Ongoing 2023 A-shares to specific of FSL objects in 2023 Directors and senior management of FSL Rising About matters on special Holdings Group 14 March 10 self-inspection of the real Long-term Ongoing Electronics Group 2023 estate business Hongkong Wah Shing Hong Kong Rising Investment 284Foshan Electrical About the effective Rising Holdings fulfilment of measures Group Electronics taken by controlling Group Hongkong 14 March 11 Long-term Ongoing shareholders and de facto Wah Shing Hong 2023 controller to fill up Kong Rising immediate returns Investment Commitment Letter Within six Regarding the Increase in Electronics Group months 12 Foshan Lighting Shares Hongkong Wah 26 June 2024 Completed starting from 3 and Subsequent Increase Shing June 2024.Plans Within six Notification Letter months 18 November 13 Regarding the Increase in Electronics Group starting from Ongoing 2024 Foshan Lighting Shares 20 November 2024. 8. Other None.XV. Share-based Payment 1. The Overall Situation of Share-based Payments □Applicable □Not applicable 2. Equity-settled Share-based Payments □Applicable □Not applicable 3. Cash-settled Share-based Payments □Applicable □Not applicable 4. Share-Based Payment Expenses for the Period □Applicable □Not applicable 5. Modification and Termination of Share-based Payment None. 6. Other None.XVI. Commitments and Contingency 1. Significant Commitments Significant commitments on the balance sheet date (1) Commitment to cash dividends Commitment maker: the Company 285Foshan Electrical Contents of Commitment: The Company’s profit distributed in cash shall not be less than 30% of the distributable profit realized in the year.Commitment Date: 27 May 2009 Commitment Term: Long-standing Fulfillment: In execution 2. Commitment to the development of Haikou plot 286Foshan Electrical In November 2021 Hainan Technology a wholly-owned subsidiary of the Company acquired an industrial land located in Mei’an Science and Technology New City Haikou with a land area of 34931.13 square meters and a land price of RMB26596784.43. In the same month Hainan Technology signed the Agreement on Industrial Project Development and Land Access with Haikou National High-tech Industrial Development Zone Management Committee (hereinafter referred to as the “Haikou Development Zone Management Committee”). The agreement stipulates that the above- mentioned plot is used for the development of marine lighting R&D and manufacturing base projects and the investment of fixed assets is approximately RMB314 million (including plants equipment and land equivalent to RMB6 million per mu (1 mu equals to 666.67 square meters). Hainan Technology promises to complete the planning scheme design within two months from the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land; complete the construction drawing design within three months after completing the planning scheme design and obtain the Building Construction Permits and start construction at the same time (subject to the foundation concrete pouring of the main buildings). The project will be put into production within 18 months from the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land. From the date of signing the contract to the first year after the project is put into production the accumulated tax payment is not less than RMB10 million; the accumulated tax payment in the first two years is not less than RMB27.4 million; the accumulated tax payment in the first three years is not less than RMB67.1 million; the accumulated tax payment in the first four years is not less than RMB117 million; the accumulated tax payment in the five years is not less than RMB203 million. The total industrial output value (or revenue) in the first year after the project is put into production is not less than RMB218 million; the accumulated value in the first two years is not less than RMB433 million; the accumulated value in the first three years is not less than RMB929 million; the accumulated value in the first four years is not less than RMB1578 million; the accumulated value in the five years is not less than RMB2.62 billion. If the project fails to start construction within 12 months from the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land due to Hainan Technology reasons the Haikou Development Zone Management Committee has the right to unilaterally terminate the contract and the municipal government will recover the land use rights according to law; if the total amount of tax paid in the year after the project is put into production does not reach the total annual tax payment as agreed Hainan Technology shall pay liquidated damages to the Haikou Development Zone Management Committee according to the difference; if Hainan Technology has idle land not due to government reasons and force majeure the municipal government shall collect idle land fees or recover the right to use state-owned construction land.As of the date of this report the first phase of the Hainan Industrial Park has been completed and put into production. 2. Contingency 287Foshan Electrical (1) Significant Contingency on Balance Sheet Date a) Litigation between the Company and Yinghe (Shenzhen) Robotics and Automation Technology Co. Ltd.Yinghe (Shenzhen) Robotics and Automation Technology Co. Ltd. (hereinafter referred to as “Yinghe Company”) and the Company signed the Construction Contract for the LED Bulb Intelligent Manufacturing Workshop Project in 2021 the project has not been able to meet the final acceptance standards. After repeated negotiations both parties failed to reach an agreement Yinghe Company thus filed a lawsuit with the People’s Court of Chancheng District Foshan City in December 2023 involving a disputed amount of RMB104403700. In January 2024 the Company filed a counterclaim on the grounds that the project undertaken by Yinghe Company had not reached the final acceptance standards for two years overdue constituting a fundamental breach of contract demanding that Yinghe Company refund the contract amount of RMB26904000 and pay a penalty of RMB26904000 totaling RMB53808000. In September 2024 the Company received the first- instance judgment from the People’s Court of Chancheng District Foshan City Guangdong Province: 1. The court dismissed all the claims made by Yinghe Company; 2. Yinghe Company is required to return RMB 26904000 to the Company; 3. Yinghe Company is responsible for the costs of removing the equipment and systems located in the Foshan Lighting production workshop. Both parties appealed and in January 2025 the case was heard in the second-instance court. In February 2025 the Company received the second-instance judgment from the Foshan Intermediate People’s Court Guangdong Province which upheld the original first-instance judgment.b) Litigation matter with Dianbai County Construction Engineering Co. Ltd.Dianbai County Construction Engineering Co. Ltd. as a customer of the Company is involved in a sales contract dispute with the Company. The Company has filed for arbitration with the Guangzhou Arbitration Commission with the arbitration amount being RMB24804400. In October 2024 both parties signed the Settlement Agreement and received an On-Demand Performance Guarantee issued by China Construction Bank Corporation for Dianbai County Construction Engineering Co. Ltd. In November of the same year the Company received the Mediation Statement issued by the Guangzhou Arbitration Commission. As at the reporting date the remaining receivables are still within the agreement period.c) Litigation Between the Company and China Construction Fourth Engineering Division Installation Engineering Co. Ltd.China Construction Fourth Engineering Division Installation Engineering Co. Ltd. as a customer of the Company is involved in a sales contract dispute with the Company. The Company has filed for arbitration with the Guangzhou Arbitration Commission with the total amount in dispute reaching RMB18420100. In December 2024 both parties signed a Settlement Agreement. As at the date of this Report the Arbitration Commission has filed a case which is awaiting scheduling a court hearing.The Company has made a bad debt provision of RMB5855300 based on expected credit losses.d) Litigation Between Sub-subsidiary Chongqing Guinuo and Hasco VISION Technology (Chongqing) Co. Ltd. & Hasco VISION Technology (Shanghai) Co. Ltd. Hasco VISION Technology (Chongqing) Co. Ltd. and Hasco VISION Technology (Shanghai) Co.Ltd. as customers of the Company’s sub-subsidiary Chongqing Guinuo are involved in a sales contract dispute with the subsidiary. Chongqing Guinuo filed a lawsuit with the Yubei District People’s Court of Chongqing with the total amount in dispute reaching RMB173817000. The first hearing of the case was held in August 2024 followed by a second hearing in October and a third in December 2024. During the three hearings the court requested that the legal representatives of both 288Foshan Electrical parties sign the Application for Settlement Agreement with a mediation period of three months. In February 2025 Chongqing Guinuo received the first-instance judgment from the Yubei District People’s Court of Chongqing: all claims filed by Chongqing Guinuo were dismissed. Chongqing Guinuo filed an appeal based on the first-instance judgment and the court received the appeal materials from Chongqing Guinuo in March 2025.e) Litigation Between the Company & Its Subsidiary Hainan Technology and China Construction First Group Corporation Limited China Construction First Group Corporation Limited (hereinafter referred to as “CCFG”) as a customer of the Company and its subsidiary Hainan Technology is involved in a sales contract dispute with both entities. The Company filed for arbitration with the Shanghai Arbitration Commission with the total amount in dispute reaching RMB14191000. In October 2024 the Company and its subsidiary Hainan Technology received a Mediation Statement from the Shanghai Arbitration Commission. The Company and Hainan Technology reached a Settlement Agreement with China Construction First Group. As at the date of this Report the remaining receivables are still within the agreement period. The Company has made a bad debt provision of RMB4486500 based on expected credit losses.f) Litigation Between the Company & Its Subsidiary Kelian and Foshan Centurynet Industrial Park Investment and Development Co. Ltd.Foshan Centurynet Industrial Park Investment and Development Co. Ltd. (hereinafter referred to as “Centurynet”) entered into a State-Owned Construction Land Use Right Transfer Contract and a supplementary agreement with the Foshan Bureau of Land and Resources under which Centurynet was permitted to divide the acquired land parcel into eight separate plots. In April 2016 Centurynet signed a State-Owned Construction Land Use Right Transfer Contract with Foshan Kelian New Energy Technology Co. Ltd. (hereinafter referred to as “Foshan Kelian”) transferring Plot Seven to Foshan Kelian. In June 2023 the Foshan Bureau of Natural Resources issued a Notice on the Payment of Liquidated Damages for Delayed Completion to Centurynet regarding Plot FC (G) 2010-017 (Century Binjiang Project) stating that the required completion date for the eight subdivided plots was 6 August 2017 while the actual completion date was 19 August 2021. As a result Centurynet was required to pay liquidated damages for delayed completion amounting to RMB55221600. Based on the notice Centurynet paid the liquidated damages and subsequently filed a lawsuit against the Company and its subsidiary Foshan Kelian demanding that they bear a proportional share of the penalty—RMB11449200—as well as RMB100000 in legal fees totaling RMB11549200. When acquiring Foshan Kelian the Company signed an Equity Transfer Agreement in which the transferor committed that: if the target company or the transferee incurs any loss claim or legal liability arising from any matter that occurred prior to the closing date (excluding debts already disclosed in the audit report) the transferor shall bear joint and several liability and provide compensation to the target company or the transferee in cash. In December 2024 the Company received litigation documents served by the court. The first-instance hearing of the case was held in January 2025. As of the date of this Report the case is still in the first instance procedure.g) Litigation matters between the sub-subsidiary company Chongqing Guinuo and Huayu Visual Technology (Chongqing) Co. Ltd.There is a lease contract dispute between the sub-subsidiary Chongqing Guinuo and Huayu Vision Technology (Chongqing) Co. Ltd. (hereinafter referred to as "Huayu Vision"). In December 2023 Hasco VISION filed a lawsuit with the Yubei District People’s Court of Chongqing involving a disputed amount of RMB10433900. The first instance trial of this case was held in August 2024 followed by a second trial in September of the same year. In November 2024 the People’s Court of 289Foshan Electrical Yubei District Chongqing issued a civil ruling to suspend the litigation. As of the date of this report the case is still in a state of first instance suspension.* Land Acquisition Penalty Matter Involving Nanjing Fozhao Lighting Components Manufacturing Co. Ltd.On 10 July 2020 the People’s Government of Lishui District Nanjing issued the Decision on the Expropriation of Houses on State-Owned Land for the Lishui District Honglan Subdistrict Affordable Housing Construction Project (Document No. [2020] 18 of the Nanjing Lishui Government) deciding to expropriate the land and above-ground structures located at No. 688 Jinniu North Road Honglan Subdistrict Lishui District Nanjing owned by Nanjing Fozhao Lighting. The expropriation was to be implemented by Nanjing Lishui District Demolition and Resettlement Co. Ltd. (hereinafter referred to as the “Demolition Company”). On 15 December 2021 the Demolition Company and Nanjing Fozhao Lighting entered into the House Expropriation and Compensation Agreement for State-Owned Land in Lishui District Nanjing stipulating a total compensation amount of RMB183855900. The agreement required the Demolition Company to make a one-time full payment within fifteen days after Nanjing Fozhao Lighting vacated the premises. It also was agreed that the breaching party would be liable to pay liquidated damages calculated at a daily rate of 0.05% of the compensation amount. On 16 December 2021 Nanjing Fozhao promised to complete the lease clearance and house handover before 31 May 2022. However the last housing rental enterprise was actually relocated on 9 September 2024 and the demolition company completed the land and house reception of the last housing rental enterprise on 7 January 2025. Regarding the land expropriation matter of Nanjing Fozhao both parties have a dispute over the payment of the remaining amount.The specific details are as follows: The demolition company proposed that the remaining demolition compensation should be paid after deducting the penalty and other relevant fees for the delayed delivery of the demolition target by Nanjing Fozhao. Nanjing Fozhao believes that the delay in the delivery of the demolition target is due to disputes among some tenants over the assessment report results. Therefore Nanjing Fozhao should not bear all the liability for breach of contract. Moreover the demolition company should also bear the liability for breach of contract regarding the delay in paying the remaining compensation to Nanjing Fozhao. As of the date of this announcement the two parties have not yet reached an agreement on the payment of the remaining compensation the basis for calculating liquidated damages or the commencement date for such calculations.* Litigation matters between subsidiary NationStar Lighting and Lighthouse Technologies (Huizhou) Limited and Lighthouse Technologies Limited NationStar Lighting sued Lighthouse Technologies (Huizhou) Limited and Lighthouse Technologies Limited (hereinafter referred to as "Lighthouse") for a sales contract dispute involving an amount of RMB25882900. Among them the book amount of accounts receivable at the end of the period is RMB25352200 and the interest is RMB530700. The specific basic situation and progress of the case are as follows: Lighthouse has been overdue in paying the company’s goods since April 2024 with a total overdue amount of RMB25352200. In view of this NationStar Lighting filed a lawsuit with the People’s Court of Chancheng District Foshan City Guangdong Province in November 2024. As of the disclosure date of this report the case has been filed and the court session was held on 13 March 2025.As of the disclosure date of this report there is no result yet. 290Foshan Electrical (2) In Despite of no Significant Contingency to Disclose the Company Shall Also Make Relevant Statements There was no significant contingency in the Company. 3. Other As of 31 December 2024 mutual guarantees among Liaowang Auto Lamp and its subsidiaries were as follows (RMB’0000): Principal Type of Guarantee Guarantee No. Principal debtor debtee Guarantor guarantee amount balance (Lender) Nanning Liaowang Auto Lamp Co. Ltd. Liuzhou Guige Fuxuan Nanning Nanning Liaowang Auto 1 Technology Co. Ltd. Branch of Mortgaged 6350.00 3545.95 Lamp Co. Ltd.Liuzhou Guige Lighting Industrial Bank Technology Co. Ltd.(Note 1) Nanning Chongqing Guinuo Chongqing Guinuo Branch of 2 Lighting Technology Co. Lighting Technology Co. Mortgaged 7000.00 3964.62 Industrial Bank Ltd. (Note 2) Ltd.Co. Ltd.Nanning Liaowang Auto Lamp Co. Ltd. Liuzhou Guige Fuxuan Nanning Liuzhou Guige Lighting 3 Technology Co. Ltd. Branch of Mortgaged 14300.00 4547.00 Technology Co. Ltd.Liuzhou Guige Lighting Industrial Bank Technology Co. Ltd.(Note 3) Total —— —— —— 27650.00 12057.57 Note 1: Liaowang Auto Lamp and Nanning Branch of Industrial Bank signed the Master Agreement for Domestic Letter of Credit Financing with the number M0120240409000444 borrowing RMB20 million from Nanning Branch of Industrial Bank (term from 15 April 2024 to 9 April 2025). Liaowang Auto Lamp and Nanning Branch of Industrial Bank entered into the Maximum Financing Agreement (XYGCBRZZ [2022] No. (01)) to conduct a bill transaction of RMB15459500. Liaowang Auto Lamp provides mortgage guarantee with the immovable property owned as collateral and the balance of its creditor’s rights does not exceed the maximum mortgage principal of RMB69139100. The mortgage amount is valid from 25 April 2022 to 31 December 2025 and the guarantee amount is RMB63.5 million. The mortgaged real estate is a) YG (2017) N.N.S.B.D.CH. Q.ZH. No. 0065501; b) E.G. (2017) N.N.S.B.D.CH. Q.ZH. No. 0065499; c) S.G. (2017) N.N.S.B.D.CH. Q.ZH. No. 0065498; d) S.G. (2017) N.N.S.B.D.CH. Q.ZH. No. 0065497. Note 2: Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset Loan Contract numbered CQ2023-477 with the contract amount being RMB50 million (term from 21 June 2023 to 20 June 2026). As at 31 December 2023 RMB39646200 had been used. Chongqing Guinuo entered into two Maximum Amount Mortgage Contracts with Chongqing Branch of Industrial Bank identified as Contract No. XYYLJGND 2023001 and Contract No. XYYKGGND 2024001.Under these agreements Chongqing Guinuo pledged its real estate assets as collateral to secure debt obligations with the maximum secured principal amount not exceeding RMB240 million. The guaranteed amount under the mortgage is RMB70 million. The mortgage contracts are valid from 21 May 2024 to 20 May 2025. The mortgaged real estate is a) Y.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 291Foshan Electrical 000436821 b) E.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 000437330 c) S.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 000437429 and d) S.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 000437448.Note 3: Liuzhou Guige Photoelectric entered into the Maximum Financing Agreement numbered XYGCBRZZ (2022) No. (02) with Nanning Branch of Industrial Bank incurring a note business of RMB45470000. In the guarantee contract Liuzhou Guige provides mortgage guarantee with the immovable property owned as collateral and the balance of its creditor’s rights does not exceed the maximum mortgage principal of RMB139943700. The guarantee amount is RMB143 million and valid from 24 April 2022 to 31 December 2025. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH. Q. No. 0191988 located at No. 1 Factory Building No. 12 Hengsi Road Cheyuan; b) E.G. (2019) L.ZH.SH. B.D.CH. Q. No. 0191991 located in the mould Centre of No. 12 Hengsi Road Cheyuan; c) S.G. (2019) L.ZH.SH. B.D.CH. Q. No. 0191994 located in the logistics gate guard room at No. 12 Hengsi Road Cheyuan; d) S.G. (2019) L.ZH.SH. B.D.CH. Q. No. 0191995 located in the guard room of Gate 12 Hengsi Road Cheyuan. (2) As at 31 December 2024 the guarantee arrangements of Hule Electric Company were as follows (RMB’0000): No Principal Principal Type of Guarante Guarante Guarantor. debtor debtee (Lender) guarantee e amount e balance Zhejiang Agricultural Hule Electric Bank of China Zhejiang Hule Electrical Equipment 1 Limited Equipment Manufacturing Co. Mortgaged 2000.00 1721.96 Manufacture Jiaxing Nanhu Ltd.Co. Ltd.Sub-branch (Note 1) Total —— —— —— 2000.00 1721.96 Note 1: Hule Electric entered into Maximum Amount Mortgage Contract (No. 33100620230099053) with Jiaxing Nanhu Sub-branch of the Agricultural Bank of China. Under the contract Hule Electric pledged its real estate assets as collateral to secure debts with the maximum secured principal not exceeding RMB31.18 million. The guaranteed amount is RMB20 million. The mortgage contract is valid from 21 August 2023 to 20 August 2028. The mortgaged properties are: a) Property Ownership Certificate No. 00479600 Nanhu District Jiaxing; b) Property Ownership Certificate No. 00479599 Nanhu District Jiaxing.XVII. Events after Balance Sheet Date 1. Significant Non-adjusted Events None. 2. Distribution of Profit Dividend shares to be distributed for every ten shares 1.2 (share) Based on the share capital of 1535778230 shares per ten shares is to be distributed to the shareholders with no bonus issue from either profit or capital reserves.Where any change occurs to the total shares entitled to Profit distribution plan the final dividend due to grant of share repurchases equity incentive grants etc. when the final dividend plan is implemented the dividend per share shall remain the same while the total payout amount shall be adjusted accordingly. This profit distribution plan is 292Foshan Electrical subject to the approval of the Company’s 2024 general meeting of shareholders before it can be implemented. 3. Sales Return None. 4. Notes to Other Events after Balance Sheet Date The Company held the 3rd meeting of the 10th Board of Directors the 3rd meeting of the 10th Board of Supervisors and the 3rd extraordinary general meeting of shareholders on 29 November 2024 and 16 December 2024 respectively. The meeting approved the Proposal on Cancelling Repurchase Shares and Reducing Registered Capital agreeing to cancel 13 million A-shares stored in the repurchase special securities account and correspondingly reduce the Company’s registered capital.After verification and confirmation by China Securities Depository and Clearing Corporation Limited Shenzhen Branch the cancellation of the Company’s share repurchase has been completed on 10 January 2025 and the total share capital of the Company has been changed from 1548778230 shares to 1535778230 shares.XVIII Other Significant Events 1. The Accounting Errors Correction in Previous Period None. 2. Debt Restructuring No such cases in the Reporting Period. 3. Assets Replacement None. 4. Pension Plans In accordance with provisions of Measures for Enterprise Annuity (RSBL No. 36) Measures for Managing Enterprise Annuity Fund (RSBL No. 11) and other policies the Company has formulated the Enterprise Annuity Plan of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as the “Plan”).The Plan adopts the corporate trusteeship mode. The collected enterprise annuity fund will be managed by the trustee entrusted by Foshan Electrical and Lighting Co. Ltd. with the Enterprise Annuity Fund Trusteeship Contract. And the trustee of the enterprise annuity fund will entrust eligible custodians account managers and investment managers to provide unified related services. The expenses required shall be jointly borne by the Company and the employees. The payment channels of the Company shall be implemented according to relevant regulations of the state and the part that shall be paid by employees themselves will be withheld and paid by the Company from their salaries.The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of Foshan City and implemented since 1 June 2022. The management of the enterprise annuity fund is subject to the supervision and inspection of relevant state departments. 5. Discontinued Operations None. 293Foshan Electrical 6. Segment Information (1) Determination Basis and Accounting Policies of Reportable Segment With the deployment of the Company’s strategic management and the expansion of business segments operating segments shall be determined based on the requirements of regulatory laws and regulations company management etc. which are as follows: * General lighting automotive lamps products segment: General lighting automotive lamps products segment research and development manufacturing and sales; * LED packaging and components other products segment: Research and development manufacturing and sales of LED packaging and components and other products.Inter-segment transfer prices are determined with reference to the prices used for sales to third parties while assets liabilities and expenses are determined based on the financial data of each segment. (2) The Financial Information of Reportable Segment Unit: RMB General lighting LED packaging and Offset among Item and vehicle lamp component products Total segments products and other products 1. Operating 5647542159.953472860317.19-72164830.009048237647.14 revenue II. Cost of sales 4364577494.97 3075005242.32 -72031835.80 7367550901.49 III. Income from investments to joint 1112039.741580479.75-1580479.751112039.74 ventures and associates IV. Credit -25455021.52-4572189.38342614.49-29684596.41 impairment loss V. Asset -33512347.51-32024162.49-142393052.68-207929562.68 impairment loss VI. Depreciation and amortization 298403033.61 358689668.58 -762259.87 656330442.32 cost VII. Total profits 702637040.55 49197986.06 -150886014.73 600949011.88 VIII. Income tax 82646366.35-5177546.31-4919.9177463900.13 expense IX. Net profits 619990674.20 54375532.37 -150881094.82 523485111.75 X. Total assets 11943999653.72 6249279269.11 -1033515466.19 17159763456.64 XI. Total liabilities 4627223035.73 2425117619.56 -59077292.49 6993263362.80 (3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each Reportable Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated None. (4) Other Notes None. 7. Other Significant Transactions and Events with Influence on Investors’ Decision-making None. 294Foshan Electrical 8. Other (1) Demolition matters of Nanjing Fozhao The Company held the 24th Meeting of the Ninth Board of Directors on 15 December 2021 where the Proposal on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd. was deliberated and adopted. The Board of Directors agreed that Nanjing Lishui District People’s Government expropriates the land use rights and above-land housing of Nanjing Fozhao Lighting a wholly-owned subsidiary of the Company at a compensation amount of RMB183855900.00 and Nanjing Fozhao signed an expropriation and compensation agreement with Lishui County House Dismantling Moving & Resettling Development Co. Ltd. the implementing unit of the housing expropriation. As of 31 December 2023 Nanjing Fozhao has received 30% of the compensation that is RMB55160000.00 and the land use right certificate and house ownership certificate of the assets involved have been cancelled. As of the date of this Report the site handover is still in progress. After the demolition work is completed Nanjing Fozhao plans to carry out liquidation and cancellation.As of 7 January 2025 Lishui District Demolition and Resettlement Co. Ltd. of Nanjing had taken possession of all land and above-ground buildings of Nanjing Fozhao. As of the disclosure date of this report both parties are still in negotiation regarding the performance of the contract and the payment of the remaining compensation. After the demolition work is completed Nanjing Fozhao plans to carry out liquidation and cancellation. (2) Land acquisition and storage matters The Company held the 49th meeting of the 9th Board of Directors and the second extraordinary shareholders' meeting in 2023 on 6 December 2023 and 22 December 2023 respectively and reviewed and approved the "Proposal on the Disposal of the Company's Assets and the Signing of the Land Acquisition and Storage Agreement" agreeing that the Company will sign the "Land Reserve Letter of Intent" with the Zumiao Street Office of Chancheng District Foshan City and the "State- owned Land Use Right Reserve Agreement" with the Land Reserve Center of Chancheng District Foshan City and the Zumiao Street Office of Chancheng District Foshan City. After completing the preliminary land preparation work such as the demolition of the above-ground buildings in accordance with relevant laws regulations and policies the land at No. 64 Fenjiang North Road Chancheng District Foshan City will be delivered in batches over three years for account acquisition and storage. On February 2024 the Company formally signed the "State-owned Land Use Right Reserve Agreement" with the Land Reserve Center of Chancheng District Foshan City and the Zumiao Street Office of Chancheng District Foshan City and the Company delivered the land at No. 64 Fenjiang North Road in accordance with the relevant contents of the agreement. On December 2024 the Company received a land acquisition payment of RMB381779100.00 from the Land Reserve Center of Chancheng District Foshan City and recognized a land acquisition net income fater tax of RMB 298681100.00. (3) Application for registration and issuance of SCP by NationStar Optoelectronics NationStar Optoelectronics reviewed and approved the Proposal on Application for Registration and Issuance of SCP at the 22nd Meeting of the 5th Board of Directors and the 19th Meeting of the 5th 295Foshan Electrical Supervisory Committee held on 29 August 2022 and submitted it to the 3rd Extraordinary General Meeting of 2022 of NationStar Optoelectronics for consideration. On 11 November 2022 the Company convened the 3rd Extraordinary General Meeting of 2022 to vote on above-mentioned proposal and agreed the application for registration and issuance of SCP by the Company with the scale not exceeding RMB1 billion (inclusive). The final registration amount will be subject to the amount stated in the registration notice of China Interbank Market Dealers Association. The registration is valid for two years and may be issued multiple times within the registration period with each issuance period not exceeding 270 days (inclusive). In August 2023 the Company received the Registration Acceptance Notice (ZSXZ[2023] No. SCP363) of the National Association of Financial Market Institutional Investors where the Association agreed to the Company’s ultra-short-term financing bond registration with a registered amount of RMB1 billion. The registration quota is effective within two years from the date of the notice’s signature allowing the Company to issue ultra-short-term financing bonds in stages during the effective registration period. The Company has not yet issued ultra-short-term financing bonds.XIX. Notes of Main Items in the Financial Statements of the Company as the Parent 1. Accounts Receivable (1) Disclosure by Aging Unit: RMB Aging Ending carrying amount Beginning carrying amount Within one year (including 1 year) 611829771.52 683345802.12 One to two years 87098817.76 125068556.37 Two to three years 61831224.89 92436464.67 Over three years 89329641.58 28150275.79 Three to four years 68133250.97 6324306.99 Four to five years 5227888.30 4557233.31 Over five years 15968502.31 17268735.49 Total 850089455.75 929001098.95 (2) Disclosure by Withdrawal Methods for Bad Debts Unit: RMB Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Accounts receivable withdrawn 97598 55270 423276 162062 13266 293944 11.48%56.63%1.74%81.86% bad debt 472.58 828.47 44.11 26.20 776.46 9.74 provision separately Accounts receivable 75249 withdrawn 49561 702929 912794 75730 837063 0983.188.52%6.59%98.26%8.30% bad debt 358.97 624.20 872.75 895.08 977.67 provision by 7 group Including: (1) Business portfolio of 67472 4956162515984375475730768023 general 0665.6 79.37% 7.35% 90.83% 8.98% lighting and 358.97 306.65 827.55 895.08 932.47 2 auto lamps 296Foshan Electrical Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion (2) Internal 77770777703690400690400 business 9.15% 7.43% portfolio 317.55 17.55 45.20 45.20 8500810483 74525792900188997840003 Total 9455.7 100.00% 2187.4 12.33% 100.00% 9.58% 268.31098.95671.54427.41 54 Provision for bad debts on an individual basis: RMB55270828.47 Unit: RMB Beginning balance Ending balance Name Carrying Bad debt Carrying Bad debt Withdrawal Reason for amount provision amount provision proportion withdraw 11187337.2 11187337.2 Litigation Customer A 9129369.60 9129369.60 100.00% 0 0 involved Dishonest and high-risk 12462884.4 12462884.4 entities; Customer B 100.00% 1 1 recovery is deemed unlikely. 23650221.623650221.6 Total 9129369.60 9129369.60 11 Provision for bad debts on a portfolio basis: RMB49561358.97 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion (1) Business portfolio of general 674720665.6249561358.977.35% lighting and auto lamps (2) Internal business portfolio 77770317.55 0.00% Total 752490983.17 49561358.97 A description of the basis for determining the portfolio: See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable: □Applicable □Not applicable (3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period Withdrawal of bad debt provision: Unit: RMB Changes in the current period Beginning Ending Category Reversed or balance Withdrawal Verification Other balance recovered Accounts 1326677 25018991. 14781351.0 31766411.3 55270828.4 receivable 6.46 73 4 2 7 297Foshan Electrical Changes in the current period Beginning Ending Category Reversed or balance Withdrawal Verification Other balance recovered withdrawn bad debt provision separately Accounts receivable - 75730898129876.849561358.9 withdrawn bad 33.28 34299379.7 5.0897 debt provision by 2 group 889976733148868.14781351.0-104832187. Total 33.28 1.546242532968.4044 Of which bad debt provision collected or reversed with significant amount: None. (4) Accounts Receivable Written-off in Current Period Unit: RMB Item Written-off amount Accounts receivable actually written off 33.28 Of which verification of significant accounts receivable: None.Notes to verification of accounts receivable: The amount of accounts receivable written off in this period is RMB33.28 and the provision for bad debts is RMB33.28 which has been approved in accordance with the Company’s bad debt management system. (5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected according to Arrears Party Unit: RMB Ending balance Proportion to of bad debt Ending balance total ending provision of Ending balance Ending balance Name of the of accounts balance of accounts of accounts of contract entity receivable and accounts receivable and receivable assets contract assets receivable and impairment contract assets provision for contract assets No. 1 150246356.36 150246356.36 17.60% 4507390.69 No. 2 94272141.84 94272141.84 11.05% 2828164.26 No. 3 51861952.51 51861952.51 6.08% 13525874.66 No. 4 45132663.24 45132663.24 5.29% No. 5 20804411.54 20804411.54 2.44% Total 362317525.49 362317525.49 42.46% 20861429.61 2. Other Receivables Unit: RMB Item Ending balance Beginning balance Other receivables 944184445.88 558342534.44 Total 944184445.88 558342534.44 298Foshan Electrical (1) Interest Receivable None. (2) Dividend Receivable None. (3) Other Receivables 1) Category of Other Receivables by Account Nature Unit: RMB Nature Ending carrying amount Beginning carrying amount Other current accounts 936571845.70 550330445.91 Export VAT rebates 5974168.41 4708061.84 Performance bonds 5349914.65 5017218.52 Rents and utilities 1283664.90 808434.42 Staff loans and petty cash 482910.18 1267076.22 Total 949662503.84 562131236.91 2) Disclosure by Aging Unit: RMB Aging Ending carrying amount Beginning carrying amount Within one year (including 1 year) 410148181.90 125675552.49 One to two years 109304181.17 40089841.13 Two to three years 37014033.22 393099727.65 Over three years 393196107.55 3266115.64 Three to four years 390960824.47 1588177.54 Four to five years 975961.08 981563.00 Over five years 1259322.00 696375.10 Total 949662503.84 562131236.91 3) Disclosure by Withdrawal Methods for Bad Debts Unit: RMB Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion Accounts receivable withdrawn bad debt provision separately Bad debt provision 9496 5478 100.0094418456213137887558342 withdrawn 6250 057.9 0.58% 100.00% 0.67% according to % 445.88 236.91 02.47 534.44 3.84 6 groups Including: Other receivables 9496 5478 with bad debt 100.00 944184 562131 37887 558342 6250057.90.58%100.00%0.67% provision % 445.88 236.91 02.47 534.44 based on a 3.84 6 combination 299Foshan Electrical Ending balance Beginning balance Carrying amount Bad debt provision Carrying amount Bad debt provision Category Carrying Carrying Withdrawal Withdrawal Amount Proportion Amount value Amount Proportion Amount value proportion proportion of credit risk characteristics 94965478 100.0094418456213137887558342 Total 6250 057.9 0.58% 100.00% 0.67% %445.88236.9102.47534.44 3.846 Provision for bad debts on a portfolio basis: RMB5478057.96 Unit: RMB Ending balance Name Carrying amount Bad debt provision Withdrawal proportion Other receivables with bad debt provision based 949662503.845478057.960.58% on a combination of credit risk characteristics Total 949662503.84 5478057.96 A description of the basis for determining the portfolio: See Note V-13. Accounts Receivable.Withdrawal of bad debt provision by adopting the general mode of expected credit loss: Unit: RMB First stage Second stage Third stage Expected loss in the Expected loss in the Expected credit loss Bad debt provision duration (credit duration (credit Total in the next 12 impairment not impairment months occurred) occurred) Balance of 1 841350.402947352.073788702.47 January 2024 Balance of 1 January 2024 in the current period Withdrawal of the 78350.141677072.561755422.70 current period Verification of the 66067.2166067.21 current period Balance of 31 919700.544558357.425478057.96 December 2024 The basis for the division of each stage and the withdrawal proportion of bad debt provision See Note V-13. Accounts Receivable.Changes of carrying amount with significant amount changed of loss provision in the current period □Applicable □Not applicable 4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period Withdrawal of bad debt provision: Unit: RMB 300Foshan Electrical Changes in the current period Beginning Ending Category Reversed or Charged- balance Withdrawal Other balance recovered off/Written-off Other 3788702.471755422.7066067.215478057.96 receivables Total 3788702.47 1755422.70 66067.21 5478057.96 Of which the bad debt provision recovered or transferred-back with significant amount during the current period: None. 5) Particulars of the Actual Verification of Other Receivables during the Current Period Unit: RMB Item Written-off amount Accounts receivable actually written off 66067.21 Of which the verification of significant other receivables: None.Notes to the write-off of other receivables: The amount of accounts receivable written off in this period is RMB66067.21 and the provision for bad debts is RMB66067.21 which has been approved in accordance with the company’s bad debt management system. 6) Top Five of the Ending Balance of Other Receivables Collected according to the Arrears Party Unit: RMB Proportion to Ending balance Name of the Ending total ending Nature Aging of bad debt entity balance balance of other provision receivables % 4731326 No. 1 Internal portfolio Within four years 49.82% 84.41 3268900 No. 2 Internal portfolio Within three years 34.42% 79.21 9147797 No. 3 Internal portfolio Within two years 9.63% 2.61 1588337 No. 4 Other exchanges Within one year 1.67% 1588337.50 5.00 1484084 No. 5 Other exchanges Within one year 1.56% 445225.49 9.57 9222249 Total 97.10% 2033562.99 60.80 7) Presentation in Other Receivables due to the Centralized Management of Funds None. 3. Long-term Equity Investment Unit: RMB Ending balance Beginning balance Item Carrying Impairment Carrying Carrying Impairment Carrying amount provision value amount provision value Investment to 23813554 127478834 22538765 232343542 232343542 subsidiaries 25.91 .25 91.66 5.91 5.91 301Foshan Electrical Investment to joint ventures and 180300594 18030059 179188555. 179188555.associated .89 4.89 15 15 enterprises 2561656012747883424341771250262398250262398 Total 20.80.2586.551.061.06 (1) Investment to Subsidiaries Unit: RMB Increase/decrease for the current period Beginning Beginning Ending Ending Withdrawal balance balance of balance balance of Investee Additional Reduced of (carrying depreciation Other (Carrying depreciation investment investment impairment value) reserve value) reserve provision Foshan NationStar 121209 1274788 108461 1274788 Optoelectronics 0245.94 34.25 1411.69 34.25 Co. Ltd.Nanning 493880493880 Liaowang Auto 163.76163.76 Lamp Co. Ltd.Fozhao (Hainan) 200000 200000 Technology 000.00 000.00 Co. Ltd.Foshan Kelian New Energy 170000 170000 Technology 000.00 000.00 Co. Ltd.FSL Chanchang 825073 825073 Lighting Co. 50.00 50.00 Ltd.Nanjing Fozhao Lighting 720000720000 Components 00.0000.00 Manufacturing Co. Ltd.Foshan Electrical & 354184354184 Lighting 39.7639.76 (Xinxiang) Co.Ltd.FSL Zhida Electric 255000255000 Technology 00.0000.00 Co. Ltd. (FSL Zhida) Foshan Haolaite 166850 166850 Lighting Co. 00.00 00.00 Ltd.Foshan Fozhao 1500003500000500000 Zhicheng 00.000.0000.00 Technology 302Foshan Electrical Increase/decrease for the current period Beginning Beginning Ending Ending Withdrawal balance balance of balance balance of Investee Additional Reduced of (carrying depreciation Other (Carrying depreciation investment investment impairment value) reserve value) reserve provision Co. Ltd.Foshan Taimei 350000.350000. Times Lamp 0000 Co. Ltd.Fozhao Huaguang 2292000229200 (Maoming) 0.0000.00 Technology Co. Ltd.Foshan Sigma Venture Capital 4226.45 4226.45 Co. Ltd. 232343579200012747882253871274788 Total 5425.910.0034.256591.6634.25 (2) Investment to Joint Ventures and Associated Enterprises Unit: RMB Increase/decrease for the current period Gains and Beginning Beginning Ending Ending losses Adjustment of Cash bonus Withdrawal balance balance of Changes balance balance of Investee Additional Reduced recognized other or profits of (carrying depreciation of other Other (Carrying depreciation investment investment under the comprehensive announced impairment value) reserve equity value) reserve equity income to issue provision method I. Joint ventures II. Associated enterprises Shenzhen Primatronix 18030 179188111203 (Nanho) 0594.8 Electronics 555.15 9.74 9 Ltd. 18030 179188111203 Subtotal 0594.8 555.159.74 9 18030 179188111203 Total 0594.8 555.159.74 9 The recoverable amount is determined based on the net amount of the fair value minus disposal costs □Applicable □Not applicable The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable The reason for the discrepancy between the foregoing information and the information used in the impairment tests in prior years or external information None.The reason for the discrepancy between the information used in the Company’s impairment tests in prior years and the actual situation of those years None. 303Foshan Electrical (3) Other Notes None. 4. Operating Revenue and Cost of Sales Unit: RMB Reporting Period Same period of last year Item Operating revenue Cost Operating revenue Cost Main operations 3096917731.64 2377613698.44 3256292066.96 2590772641.09 Other operations 148786564.36 132741166.11 114208143.77 79302538.77 Total 3245704296.00 2510354864.55 3370500210.73 2670075179.86 5. Investment Income Unit: RMB Item Reporting Period Same period of last year Long-term equity investment 37817762.6512959503.50 income accounted by cost method Long-term equity investment 1112039.741833621.59 income accounted by equity method Investment income from disposal of -686145.59 long-term equity investment Investment income from disposal of -447400.00-13774175.00 trading financial assets Dividend income from holding of 28098296.0016633969.35 other equity instrument investment Interest income from holding of other investments in debt 28286522.80 5611238.58 obligations Earnings of debt restructuring -368531.60 Income received from financial 1767053.51 products and structural deposits Total 94498689.59 24345065.94 6. Other None.XX. Supplementary Materials 1. Items and Amounts of Non-recurring Gains and Losses □Applicable □ Not applicable Unit: RMB Item Amount Note Gain or loss on disposal of non- 374276636.74 current assets Government grants recognised in profit or loss (exclusive of those that are closely related to the Company’s normal business 51867148.37 operations and given in accordance with defined criteria and in compliance with government policies and have a continuing 304Foshan Electrical Item Amount Note 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 3881370.83 assets and liabilities (exclusive of the effective portion of hedges that is related to the Company’s normal business operations) Capital occupation charges on non- financial enterprises that are 665872.11 recorded into current profit or loss Reverse of provision for impairment of accounts receivable 16742832.57 individually conducting impairment test Profits arising from business combination when the combined cost is less than the recognised fair 2131597.43 value of net assets of the merged company Gain or loss on debt restructuring -368531.60 Other non-operating income and 11943647.79 expenses other than the above Less: Income tax effects 65001245.07 Non-controlling interests effects 47708614.43 (after-tax) Total 348430714.74 -- Others that meets the definition of non-recurring gains and losses: □Applicable □Not applicable There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.Explain the reasons if the Company classifies any non-recurring gains and losses mentioned in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Exceptional Gain/Loss Items: □Applicable □Not applicable 2. Return on Equity and Earnings Per Share EPS (Yuan/share) Profit as of Reporting Weighted average return Basic earnings per share Period on equity (ROE) (%) EPS-diluted (EPS)-basic Net profit attributable to ordinary shareholders of 6.94% 0.2905 0.2881 the Company Net profit attributable to ordinary shareholders of the Company after 1.52% 0.0637 0.0631 deduction of non- recurring gains and losses 305Foshan Electrical 3. Differences between Accounting Data under Domestic and Overseas Accounting Standards (1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS) □Applicable □Not applicable (2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with Foreign Accounting Standards and Chinese Accounting Standards (CAS) □Applicable □Not applicable (3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the Foreign Auditing Agent Such Foreign Auditing Agent’s Name Shall be Clearly Stated □Applicable □Not applicable 4. Other None.Wan Shan legal representative Foshan Electrical and Lighting Co. Ltd. 23 April 2025 306