YANKON Lighting recently released Announcement No. Lin 2026‑023, updating the latest progress of its production base project in Thailand. The Company plans to inject a total of RMB 324 million as capital increase into its wholly-owned subsidiary YANKON Lighting (Thailand) Co., Ltd. to build overseas manufacturing capacity and further advance its global strategy.
Tracing back to the origin of the project, the investment proposal was approved at the 16th meeting of the 10th Board of Directors of YANKON Lighting on March 6, 2026. The listed company was authorized to implement the capital increase for YANKON Thailand using internal funds, which will be exclusively allocated to the construction of the Thai production base. After months of advancement, substantial progress has been achieved in key procedures including overseas filing, land contracting and fund disbursement.
On the domestic approval front, the project has completed all formalities for overseas investment filing. It has obtained the Overseas Investment Project Filing Notice (Zhejiang Development and Reform Overseas Filing〔2026〕No.375) issued by the Zhejiang Provincial Development and Reform Commission and the Enterprise Overseas Investment Certificate granted by the Department of Commerce of Zhejiang Province, and finished foreign exchange registration with banks, marking the full completion of domestic approval procedures.
The production base will be located in HERMES Industrial Estate, Chonburi Province, Thailand. Adjacent to Laem Chabang Port and Pattaya, the site boasts prominent logistics advantages and covers a total land area of approximately 107.3 mu. YANKON Thailand has formally signed a land sale agreement with the park developer Hermes Cooperation Co., Ltd. Under the agreement, a deposit equivalent to 20% of the total land price was paid upon signing. The remaining 80% will be settled upon completion of land ownership transfer registration, which is expected to be finalized by September 15, 2026.
The counterparty Hermes Cooperation Co., Ltd. is a local Thai industrial park developer and has no affiliated relationship with YANKON Lighting, its controlling shareholder, actual controller, directors, supervisors and senior management. The land to be acquired has clear property rights free of mortgages, pledges or other encumbrances restricting rights transfer. As of the announcement release date, YANKON Lighting has disbursed RMB 100 million of the capital increase to YANKON Thailand, mainly for land acquisition and preliminary construction preparation. The remaining capital contribution will be remitted in phases in line with the project schedule.
YANKON Lighting stated that the construction of this overseas base constitutes a vital milestone in its global layout. Establishing localized overseas production facilities will further optimize its worldwide capacity distribution, mitigate operational pressures arising from international trade barriers, consolidate supply capacity for overseas markets and strengthen the Company’s overall competitiveness globally. The entire investment will be funded by internal resources and will not exert material adverse impacts on the Company’s current financial position and operating results.
Meanwhile, the Company objectively disclosed potential project risks: the transfer of land ownership still requires approval from the Industrial Estate Authority of Thailand (IEAT), creating uncertainty over the approval timeline. Thailand differs markedly from China in laws, policies, business environment and culture. Project construction and subsequent operation will face multiple variables including macroeconomic shifts, industrial policy adjustments, market volatility and challenges in localized management. In addition, exchange rate fluctuations may cause variations in the overall project investment cost.
Building factories overseas has become a key strategy for Chinese lighting enterprises to expand internationally. Amid a complex global trade landscape, localized production and nearby supply can better cater to overseas clients’ demands. The industry will continue to closely monitor the progress of land handover, plant construction and capacity ramp-up of YANKON Lighting’s Thailand base.
