Foshan Electrical and Lighting: Portfolio streamlined, capital managed, land payment received

Foshan Electrical and Lighting's controlled subsidiary, NVC Lighting, is transferring a 49% subscribed equity interest in its wholly-owned subsidiary, Gaocheng NVC Lighting Technology Co., Ltd. for 3.59 million yuan. This connected transaction, occurring on December 18, 2025, involves a recipient linked to FEL’s actual controller, aiming to optimize capital structure and enhance operational efficiency.

Concurrently, FEL will utilize up to 700 million yuan of temporarily idle raised funds for cash management, specifically through low-risk deposit or wealth management products with a maximum term of 12 months. This initiative, approved on December 18, 2025, seeks to improve capital utilization and generate additional returns for shareholders without disrupting ongoing investment projects.

In a separate development, FEL's wholly-owned subsidiary, Nanjing NVC Lighting Manufacturing Co., Ltd., received its second payment of 110,695,895 yuan on December 17, 2025, as part of a land expropriation. This follows an initial payment of 55,160,000 yuan in 2021. After pre-deducting 18 million yuan for environmental remediation and relocation expenses, this expropriation is expected to increase FEL’s 2025 net income by 92.2209 million yuan.