Expected net profit of 340 million! Foshan Lighting makes a move.

On October 7, Foshan Lighting (000541.SZ) issued an announcement regarding the progress of the company’s asset disposal and the public listing for the transfer of land.

The announcement stated that, in accordance with the overall arrangements set out in the “State-owned Land Use Rights Reserve Agreement,” the company recently handed over the Zhong District plot on Fenjiang North Road to the Chancheng District Land Reserve Center of Foshan City. On September 30, the Chancheng Branch of the Foshan Municipal Bureau of Natural Resources publicly listed the Zhong District plot for sale at the Chancheng Sub-center of the Foshan Public Resources Trading Center.

At the time of listing, the Zhong District plot was divided into two separate parcels, with areas of 26,674.04 square meters and 39,246.42 square meters, respectively. The starting price for this round of public bidding was set at RMB 6,700 per square meter based on the floor-area land price. The planned use of the Zhong District plot is primarily Class II residential land, with a floor area ratio ≤ 2.8, a building density ≤ 28%, and a green space ratio ≥ 25%.

In compliance with relevant regulations, prior to handing over the plot to the Chancheng District Land Reserve Center for storage and subsequent public listing, government authorities selected an appraisal agency to assess the land and determine the reserve price before the public auction. According to the appraisal report issued by the designated agency, as of the valuation base date of September 30, 2026, the assessed value of the Zhong District plot up for sale was RMB 123,668 million.

This transaction had already been approved by both the Board of Directors and the Shareholders’ Meeting on February 1, 2024. At that time, Foshan Lighting formally signed the “State-owned Land Use Rights Reserve Agreement” with the Chancheng District Land Reserve Center and the Zumo Street Office of Chancheng District. Following completion of preliminary land preparation work—including demolition of existing structures—in accordance with applicable laws, regulations, and policies, the company proceeded to hand over the Fenjiang North Road plots in batches for storage and public listing.

On September 28, 2024, the company transferred the Nan District plot on Fenjiang North Road to the Chancheng District Land Reserve Center for public listing and successfully completed the transfer on November 4, 2024. As of June 30, 2026, the company had fully received compensation totaling RMB 393.7791 million for the entire Nan District plot.

Foshan Lighting stated that the current batch of storage and public listing for the Zhong District plot on Fenjiang North Road is primarily aimed at revitalizing the company’s assets, enhancing asset returns, and providing financial support for the future development of its core business. If the entire plot is sold at the price of RMB 6,700 per square meter, the company expects to generate approximately RMB 550 million in compensation revenue from this transaction. After deducting pre‑storage costs and taxes, the estimated net profit would be around RMB 340 million. The company will recognize revenue in accordance with accounting standards, based on the progress of land handover and actual receipt of payments, ultimately reflecting the final figures confirmed by the audited data—namely, the actual area sold, the final transaction price, and other verified metrics.

According to available information, Foshan Electrical Lighting Co., Ltd. focuses on the research, development, production, and sales of high‑quality energy‑saving lighting products, offering customers comprehensive lighting solutions. The company’s main product lines include various LED light sources, LED luminaires, and integrated lighting solutions.

In the first half of this year, the company reported revenue of RMB 4.095 billion, down 6.63% year-on-year; net profit attributable to shareholders was RMB 41.7056 million, a decrease of 63.73% compared to the same period last year; and non‑recurring net profit stood at RMB 23.2543 million, down 78.08% YoY.

Sources: Company announcements, The Paper