同方友友-DR (911868)

Dear Shareholders,On behalf of the board of directors and the management, I am pleased to present the business review, operating results and future development direction of Neo-Neon Holdings Limited (the “Company”) and its subsidiaries (hereinafter the “Group”) for the year ended 31 December 2025BUSINESS REVIEWThe year 2025 marks the concluding year of the “14th Five-Year Plan” and is a critical transition point for the “15th Five-Year Plan.” Facing a challenging environment during the year in the global lighting industry and operational tests brought by the U.S. tariffs imposed globally, the Group steadfastly maintained its operational baseline and actively sought to capture market shares, ensuring the stability in our operational scale and maintaining a steady growth trajectory.In terms of business performance, the Group achieved steady revenue growth compared to the previous year. However, under the pressure of global supply chain challenges and intensified market competition, particularly the direct impact of U.S. tariffs on global suppliers, the Group’s overall profitability was somewhat compressed, resulting in certain decline in gross profit margin compared to last year. Impacted by multiple factors such as external policies, tariff costs, and industry conditions, the total profit recorded this year showed a decrease compared to the same period last year.To meet the challenges of profit pressure, the Group actively promotes internal management optimization and business structure transformation. In the U.S. lighting sector, we received positive market feedback by promoting engineering projects and retail product lines. Meanwhile, we deepened our supply chain layout by building a local supply chain in Southeast Asia and Vietnam, effectively responding to tariff risks and achieving cost reduction and risk control. It is noteworthy that the Group has been actively exploring emerging industries, with developments in the supportive and nurturing stages. We expect that the robust growth of emerging industries will effectively alleviate the external pressures faced by traditional businesses, thereby optimizing our overall business structure and laying a solid foundation for the long-term stability and sustainable development of the Group’s performance. Additionally, we continue our efforts in the recovery of financial receivables and the revitalization of property assets, further enhancing overall operational efficiency through the implementation of reforms and optimization of organizational structure.FUTURE PROSPECTSThe Group will anchor itself to our core direction of “deepening integration, enhancing efficiency, and leading development”. We will promote the transformation and upgrade of the electric lighting business, focusing on innovations in intelligence and energy efficiency, increasing the proportion of high-margin products, and continuously optimizing the global supply chain layout to address trade barriers. At the same time, the Group will actively position itself in emerging industries, striving to achieve a second growth driver in sectors of emerging industries with entry barrier of high technology. We will also deepen legal compliance management, strengthen the overseas regulatory framework and improve talent incentive mechanisms, laying a solid foundation for the Group’s high-quality development.The global economy and international trade environment still face considerable uncertainties. The Group will continue to follow a prudent and practical business policy, promoting the high-quality development of its core lighting business while actively exploring emerging businesses and investment opportunities.ACKNOWLEDGEMENTOn behalf of the Group, I would like to express my sincere gratitude to all shareholders, customers, partners and suppliers! In this ever-changing market environment. Your trust and support are the driving force behind our progress. The Group will continue to create value and drive the company to achieve further success in the future.Zhang YuanyuanChairperson