Foshan Electrical and Lighting Co., Ltd. Annual Report 2023 1 FOSHAN ELECTRICAL AND LIGHTING CO., LTD. ANNUAL REPORT 2023 April 2024 Foshan Electrical and Lighting Co., Ltd. Annual Report 2023 2 ANNUAL REPORT 2023 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Wan Shan, the Company’s legal representative, Tang Qionglan, the Company’s Chief Financial Officer (CFO), and Liang Yuefei, the person-in-charge of the Company’s accounting organ (equivalent to accounting manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete. All the Company’s directors have attended the Board meeting for the review of this Report and its summary. The future plans and other forward-looking statements, as well as the cautionary statements mentioned in this Report shall NOT be considered as virtual promises of the Company to investors. And investors are kindly reminded to be well aware of possible risks. The Company has described in detail in this Report the risk of macro-economic fluctuations and intensified market competition, the risk of rising raw material prices, the risk of exchange rate fluctuations, the risk of the recoverability of accounts receivable. Please refer to the section headed “Potential Risks” in Item XI of Part III of this Report. The Board has approved a final dividend plan as follows: based on the share capital of 1,535,778,230 shares (the total share capital of 1,548,778,230 shares minus the remaining 13,000,000 A-shares repurchased in the share repurchase account at the disclosure date of the 2023 Annual Report, a cash dividend of RMB1.2 (tax inclusive) per 10 shares is to be distributed to the shareholders, with no bonus issue from either profit or capital reserves. Where any change occurs to the total shares entitled to the final dividend due to any new issue, grant of equity incentives, 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 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. Foshan Electrical and Lighting Co., Ltd. Annual Report 2023 3 Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 2 Part II Corporate Information and Key Financial Information ................................................... 6 Part III Management Discussion and Analysis ............................................................................. 13 Part IV Corporate Governance ...................................................................................................... 60 Part V Environmental and Social Responsibility ......................................................................... 91 Part VI Significant Events ............................................................................................................. 104 Part VII Share Changes and Shareholder Information ............................................................. 149 Part VIII Preferred Shares ........................................................................................................... 165 Part IX Corporate Bonds .............................................................................................................. 166 Part X Financial Statements ......................................................................................................... 167 Foshan Electrical and Lighting Co., Ltd.