Flat Glass Group Co., Ltd. — Interim / Quarterly Report 2021

Oct 20, 2021

Hong Kong Exchange and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

福萊特玻璃集團股份有限公司 Flat Glass Group Co., Ltd.

(a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock code: 6865)

THIRD QUARTERLY REPORT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021

This announcement is made by the Company pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Pursuant to the regulations of the China Securities Regulatory Commission (the “ CSRC ”), Flat Glass Group Co., Ltd (the “ Company ”, together with its subsidiaries, collectively referred to as the “ Group ”) is required to publish a quarterly report for each of the first and third quarters. This quarterly report was prepared in accordance with the relevant requirements in relation to information disclosure of quarterly reports of listed companies issued by the CSRC.

All financial information set out in this quarterly report is unaudited and prepared in accordance with the revised Chinese Accounting Standards for Business Enterprises.

The audit committee of the Company has reviewed the unaudited results of the Group for the third quarter ended 30 September 2021.

The contents of this quarterly report are consistent with the announcement published on the Shanghai Stock Exchange. The quarterly report is originally prepared in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

1

1. IMPORTANT NOTICE

• 1.1 The board of directors, the supervisory committee, directors, supervisors and senior management of the Company warrant that the information contained in the quarterly report are true, accurate and complete, and there are no false statements, misleading representations or material omissions, and are jointly and severally responsible for the liabilities of the Company.

• 1.2 Ruan Hongliang (legal representative of the Company), Jiang Weijie (person-in-charge of accounting affairs) and Jin Huiping (person-in-charge of the accounting department) warrant the truthfulness, accuracy and completeness of the content of this quarterly report.

• 1.3 The third quarterly report of the Company is unaudited.

2. KEY FINANCIALS

2.1 Major financial statements items and financial indicators

Unit: RMB

	For the
	three months		Increase/	For the	Increase/
	from 1 July		decrease	nine months	decrease
	2021 to	compared to		ended	compared to
	30 September		the end of	30 September	the end of
Items	2021	last year (%)		2021	last year (%)
Revenue	2,309,245,108.81		51.89	6,337,267,597.37	57.78
Net profit attributable to equity
owners of the Company	455,822,031.12		29.89	1,716,852,020.15	111.50
Net profit attributable to equity
owners of the Company excluding
non-recurring items	445,675,901.34		30.79	1,682,985,970.81	112.19
Net cash inflow/(outflow) from
operating activities	Nil		Nil	-900,428,944.93	-153.32
Basic earnings per share (RMB)	0.21		16.67	0.80	90.48
Diluted earnings per share (RMB)	0.21		16.67	0.80	90.48
		Decreased by			Decreased by
Weighted average return on equity		2.4 percentage			0.42 percentage
(%)	4.09		point	16.07	point

2

			Increase/decrease
	As at	As at	compared to
	30 September	31 December	the end of
	2021	2020	last year (%)
Total assets	18,000,510,159.02	12,265,800,375.02	46.75
Equity attributable to owners’ of
the Company	11,392,514,099.19	7,234,742,639.85	57.47

Note: The “reporting period” means the three months from 1 July 2021 to 30 September 2021. The same applies to the below.

2.2 Non-recurring item

		Unit: RMB
	For the
	three months	For the
	from 1 July	nine months
	2021 to	ended
	30 September	30 September
Items	2021	2021
Gains/(losses) on disposal of non-current assets (including the
part of provision for assets impairment being written off)	4,299,855.56	3,349,838.44
Government grants recorded as other income, except for
government grants that are closely related to the Company’s
business or given at a fixed quota or amount in accordance
with government policies	4,192,439.98	16,507,627.80
Apart from hedging instruments relating to the normal
operations of the Company, profit or loss from change in
fair value of held-for-trading financial assets and held-
for-trading financial liabilities, and investment income from
disposal of held-for-trading financial assets, held-for-trading
financial liabilities and available for-sale financial assets	3,633,564.38	20,820,489.17
Other non-operating income/ (expenses) other than above	-60,646.72	-446,697.10
Less: Effects of income tax	1,919,083.42	6,365,208.97
Total	10,146,129.78	33,866,049.34

3

2.3 Changes in major financial statements item and financial indicators and reason thereof

✔Applicable □Not Applicable

Increase/

Items

• Operating revenue[–] for the reporting period

Operating revenue[–] from beginning of the year to the end of the reporting period

Net profit attributable to owners of the parent[–] from beginning of the year to the end of the reporting period

• Net profit attributable to owners of the parent after deducting one-off non-operating items[–] from beginning of the year to the end of the reporting period

Net cash flow from operating

• activities[–] from beginning of the year to the end of the reporting period

Basic earnings per share[–] from

• beginning of the year to the end of the reporting period

• Diluted earnings per share[–] from

• beginning of the year to the end of the reporting period

• Total assets[–] as at the end of the

• reporting period

Equity attributable to owners of the

• parent[–] as at the end of the

• reporting period

decrease (%) Main reasons for the changes

• 51.89 Mainly due to the year-on-year increase in sales volume of PV glass

• 57.78 Mainly due to the year-on-year increase in average selling price and volume of PV glass

• 111.50 Mainly due to the year-on-year increase in gross profit margin of the Company and slight decrease in the expenses for the period

• 112.19 Mainly due to the year-on-year increase in gross profit margin of the Company and slight decrease in the expenses for the period

• -153.32 Mainly due to the year-on-year decrease in cash inflows from operating activities and the increase in cash outflows from operating activities

• 90.48 Mainly due to the increase in net profit attributable to equity owner of the Company

• 90.48 Mainly due to the increase in net profit attributable to equity owner of the Company

• 46.75 Mainly due to non-public issuance of A shares and the increase in the number of new projects, resulting in the increase in current assets and non-current assets

• 57.47 Mainly due to the conversion of A share convertible bonds, nonpublic issuance of A shares and the increase in undistributed profit

4

3. SHAREHOLDERS’ INFORMATION

• 3.1 Total number of ordinary shareholders and preferred shareholders with voting rights resumed and shareholding of the top ten shareholders

Unit: share

		Total number of preferred shareholders	Total number of preferred shareholders	Total number of preferred shareholders	Total number of preferred shareholders
Total number of ordinary shareholders at		with voting rights		resumed at end of
end of the reporting period	(shareholder)	78,079 the reporting period (if any)					0
	Shareholding of top ten shareholders
		Shareholding			Pledge,		mark
		as at the	Percentage	Restricted		or locked-up
Name of shareholders	Nature of shareholders	period end	(%)	shareholding	Status		Number
HKSCC Nominees Limited
香港中央結算（代理人）
有限公司	Other	449,955,880	20.96	0	Unknown
Ruan Hongliang	Domestic natural person	439,358,400	20.46	439,358,400		Nil	0
Ruan Zeyun	Domestic natural person	350,532,000	16.33	350,532,000		Nil	0
Jiang Jinhua	Domestic natural person	324,081,600	15.10	324,081,600		Nil	0
Zheng Wenrong	Domestic natural person	46,801,800	2.18	0		Nil	0
Zhu Quanming	Domestic natural person	31,201,200	1.45	0	Pledge		13,500,000
Shen Fuquan	Domestic natural person	31,201,200	1.45	0		Nil	0
Shanghai Pudong Development
Bank Co., Ltd.–GF High-end
Manufacturing Stock-type
Initiating Securities
Investment Fund	Other	21,407,991	1.00	0		Nil	0
HKSCC Nominees Limited	Other	18,714,844	0.87	0		Nil	0
Industrial and Commercial
Bank of China Limited
–GF Innovation Upgrade
Flexible Allocation Hybrid
Securities Investment Fund	Other	16,031,883	0.75	0		Nil	0

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Shareholdings of top ten unrestricted shareholders

Number of

	Number of
	unrestricted
	tradable	Class of shares	and number
Name of shareholders	shares held	Class	Number
HKSCC Nominees Limited	449,955,880	Overseas listed	449,955,880
香港中央結算（代理人）有限公司		foreign shares
Zheng Wenrong	46,801,800	RMB	46,801,800
		ordinary shares
Zhu Quanming	31,201,200	RMB	31,201,200
		ordinary shares
Shen Fuquan	31,201,200	RMB	31,201,200
		ordinary shares
Shanghai Pudong Development Bank Co., Ltd.	21,407,991	RMB	21,407,991
–GF High-end Manufacturing Stock-type		ordinary shares
Initiating Securities Investment Fund
HKSCC Nominees Limited	18,714,844	RMB	18,714,844
香港中央結算有限公司		ordinary shares
Industrial and Commercial Bank of China Limited	16,031,883	RMB	16,031,883
–GF Innovation Upgrade Flexible Allocation		ordinary shares
Hybrid Securities Investment Fund
Wei Yezhong	15,600,600	RMB	15,600,600
		ordinary shares
Industrial Bank Co., Ltd.–GF Xingchen Hybrid	10,759,018	RMB	10,759,018
Securities Investment Fund		ordinary shares
Shen Qifu	10,400,400	RMB	10,400,400
		ordinary shares
Wei Zhiming	10,400,400	RMB	10,400,400

ordinary shares

Details relating to the related relationship of the Above shareholders or the parties acting

in concert

Explanations on top ten shareholders and top ten shareholders not subject to restrictions on sale participating in margin financing and securities lending and refinancing businesses (if any)

Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun and Mr. Zhao Xiaofei are parties acting in concert. Mr. Zhao Xiaofei held 4,800,000 A shares. 485,000 H Shares held by Mr. Ruan Hongliang, 111,000 H Shares held by Jiang Jinhua and 360,000 H Shares held by Ms. Ruan Zeyun have been calculated within HKSCC Nominees Limited.

Nil

6

Note 1: HKSCC Nominees Limited is the nominee holder on behalf of the non-registered shareholders of the H shares of the Company.

Note 2: The shares under Hong Kong Securities Clearing Company Limited are held by the non-registered shareholders of the Shanghai Stock Connect.

• Note 3: The shareholding listed here was extracted from the register of members of the Company as at 30 September 2021.

• Note 4: As the Shares could be used as underlying securities for margin financing and securities lending, the shareholdings of the Shareholders are the aggregate of all the Shares and interests held in ordinary securities accounts and credit securities accounts.

4. OTHER REMINDERS

Other significant information need to remind investors about business condition during reporting period

✔Applicable □Not Applicable

4.1 Update on issuance of new H shares

On 5 February 2021, the Company announced to propose to issue up to 76,000,000 new H shares, which has been approved by the board. The cap of the new H shares proposed to be issued shall represent: (i) approximately 3.5% of the total issued share capital of the Company as at the date of the board meeting; (ii) approximately 3.4% of the total issued share capital of the Company enlarged by this issuance; (iii) approximately 16.9% of the total issued H shares of the Company as at the date of the board meeting; and (iv) approximately 14.4% of the total issued H shares of the Company enlarged by this issuance. This issuance has been considered and approved at the 2021 first extraordinary general meeting, the 2021 first A share class meeting and the 2021 first H share class meeting of the Company held on 25 March 2021. It has been reported to the CSRC on 25 March 2021 and it has been approved by CSRC in June 2021.As of the date of this quarterly report, the issuance of new H shares has not been completed.

4.2 Update on issuance of A share convertible bonds

On 16 June 2021, the Company announced the plan to issue A share convertible bonds in the PRC for a total amount of not more than RMB4,000 million (the “ A Share Convertible Bonds ”) which are convertible into new A shares of the Company. This issuance has been considered and approved at the 2021 second extraordinary general meeting, the 2021 second A share class meeting and the 2021 second H share class meeting of the Company held on 20 August 2021. This issuance is to be implemented upon review and approval by the CSRC.

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4.3 Listing of non-public of issuance of A shares

Upon receipt of the reply on approval of the non-public issuance of shares of the Company (Zheng Jian Xu Ke [2020] No. 2648)* (證監許可[2020]2648號文《關於核准福萊特玻璃集團股份有限 公司非公開發行股票的批覆》) from the CSRC, the Company completed the non-public issuance of RMB-denominated shares, pursuant to which a total of 84,545,147 A shares were issued to a total of 18 qualified investors. The lock-up period of the new shares under the issuance is six months. With the expiry of the lock-up period, a total of 84,545,147 restricted shares became tradable upon listing on 19 July 2021. Please refer to the announcement on eligibility for trading for restricted A shares under the non-public issuance published on the website of the Shanghai Stock Exchange on 13 July 2021 (announcement No. 2021[–] 076) for details.

4.4 Reserved grant of restricted A shares to participants under the restricted A share incentive scheme

On 25 May 2021, the Company announced the reserved grant of 700,000 restricted A shares to three participants at a grant price of RMB14.23 per share. As at 25 June 2021, the Company received a total of RMB9,961,000 in cash from three participants for subscription of 700,000 shares of RMB-denominated ordinary shares. The procedures for registration and custody at China Securities Depository and Clearing Corporation Limited Shanghai Branch of the additional restricted A shares of the Company issued under the reserved grant of the restricted A share incentive scheme were completed on 20 July 2021. The total number of issued shares increased from 2,146,193,254 to 2,146,893,254.

4.5 Major PV glass sales contract

The Company and JA solar Energy Technology Co., Ltd (晶澳太陽能科技股份有限公司) entered into a sales contract on 30 July 2021 for the supply and sale of an aggregate of approximately 230,000,000 square meters of photovoltaic rolled glass (for using in solar modules) from 1 August 2021 to 31 July 2024. Taking into consideration the market penetration rate of the doubleglass modules, and based on the average price of 3.2mm PV glass as RMB22 per square meter (including tax) and the average price of 2.0mm PV glass as RMB18 per square meter (including tax) as published by Sublime China Information Co., Ltd. (卓創週報) dated 29 July 2021 in its weekly report, the board estimated that the total contract amount will be approximately RMB4.618 billion (including tax).

8

4.6 Unlocking of the part of shares first granted under the restricted A share incentive scheme for 2020

On 9 August 2021, the board considered and approved, among others, the resolution on satisfying of conditions on unlocking the part of restricted A shares first granted during the first unlocking period under the restricted A share incentive scheme for 2020. A total of 15 participants satisfied the conditions on unlocking the part of restricted A shares first granted during the first unlocking period, with a total number of 920,000 restricted A shares unlocked, representing 0.0429% of the total share capital of the Company as at the date of the board meeting.

4.7 A share option incentive scheme

On 9 August 2021, the Company announced the plan to implement an A share option incentive scheme (the “ Scheme ”). Participants of the Scheme are the middle and senior management and technical personnel of the Company as at the date of the announcement of the draft Scheme. The source of the underlying shares of the Scheme shall be A shares of the Company to be directly issued to the participants. The number of share options proposed to be granted under the Scheme is 5,947,858, representing approximately 0.28% of the total issued share capital of 2,146,893,254 Shares of the Company as at the date of announcement of the draft Scheme, among which, the first grant of share options consists of 5,353,072 shares, representing approximately 0.25% of the total issued share capital of 2,146,893,254 shares of the Company as at the date of announcement of the draft Scheme and 90% of the total number of share options under the grant; the reserved share options consist of 594,786 shares, representing approximately 0.03% of the total issued share capital of 2,146,893,254 shares of the Company as at the date of announcement of the draft Scheme and 10% of the total number of share options under the grant.

In order to ensure that the pricing principles of the Scheme will be in compliance with Rule 19A.39C of the Listing Rules regarding the conditions for waiver in respect of the exercise price of the share options under the Scheme set out in Rule 17.03(9) of the Listing Rules, the board made certain adjustments to the relevant provisions relating to the exercise price of the share options under the Scheme and other related documents on 12 October 2021.

9

5. QUARTERLY FINANCIAL STATEMENTS

5.1 Financial Statements

Consolidated Balance Sheet As at 30 September 2021

Prepared by Flat Glass Group Co., Ltd.

Unit: RMB Type of audit: unaudited

	As at	As at
	30 September	31 December
Items	2021	2020
Current assets:
Cash at bank and on hand	1,976,302,875.34	1,589,967,013.69
Trading financial assets	400,000,000.00	400,000,000.00
Derivative financial assets	14,471.85	1,445,666.57
Notes receivables	856,599,853.70	546,772,640.17
Receivables	1,171,098,807.55	1,388,373,649.20
Financing receivables	589,635,590.11	684,530,748.37
Advance payment	1,201,187,296.81	363,154,384.40
Other receivables	57,350,495.91	24,267,677.88
Inventories	1,285,404,344.39	479,395,186.67
Other current assets	193,574,347.31	91,369,716.90
Total current assets	7,731,168,082.97	5,569,276,683.85
Non-current assets:
Long-term equity investment	20,124,822.26	13,914,841.66
Investment in other equity instrument	53,003,442.50	53,970,165.00
Investment properties	19,160,098.63	20,233,701.43
Fixed asset	5,412,360,912.12	3,333,698,217.15
Construction in progress	2,433,006,429.51	1,937,151,385.42
Right-of-use asset	173,800,227.39	173,805,026.26
Intangible assets	532,558,879.76	529,570,040.37
Long-term prepaid expenses	5,496,339.77	5,175,651.56
Deferred tax assets	26,162,663.45	25,990,515.11
Other non-current assets	1,593,668,260.66	603,014,147.21
Total non-current assets	10,269,342,076.05	6,696,523,691.17
Total assets	18,000,510,159.02	12,265,800,375.02

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	As at	As at
	30 September	31 December
Items	2021	2020
Current liabilities:
Short-term borrowings	1,405,908,924.92	617,402,035.00
Derivative financial liabilities	313,435.17
Notes payables	1,105,045,673.62	713,571,260.89
Payables	1,808,253,704.78	1,294,643,492.26
Contract liabilities	219,687,567.58	91,178,042.21
Payroll payables	46,231,756.87	48,938,953.78
Tax payables	135,539,646.58	303,432,110.05
Other payables	124,849,773.00	100,815,515.00
Including: Interest payables	2,647,991.81	2,856,171.00
Dividend payables	791,200.00	299,000.00
Non-current liabilities due within one year	291,843,000.00	160,819,952.95
Total current liabilities	5,137,673,482.52	3,330,801,362.14
Non-current liabilities:
Long-term borrowings	1,381,979,930.21	1,375,011,882.07
Bonds payables		236,681,991.63
Lease liability	11,457,856.59	11,508,090.39
Deferred income	24,687,614.79	33,039,484.74
Deferred income tax liability	52,197,175.72	44,014,924.20
Total non-current liabilities	1,470,322,577.31	1,700,256,373.03
Total liabilities	6,607,996,059.83	5,031,057,735.17
Owner’s equity:
Share capital	536,723,313.50	510,312,197.00
Other equity instrument		49,401,670.49
Capital surplus	4,822,146,544.86	2,045,095,156.05
Less: Treasury stock	32,096,200.00	28,359,000.00
Other comprehensive income	-14,781,201.12	-26,338,876.15
Special reserve	15,337,048.80	14,369,931.38
Surplus reserve	220,705,199.31	220,705,199.31
Undistributed profit	5,844,479,393.84	4,449,556,361.77
Total equity attributable to owners of the parent
company	11,392,514,099.19	7,234,742,639.85
Total owner’s equity	11,392,514,099.19	7,234,742,639.85
Total liabilities and owners’ equity	18,000,510,159.02	12,265,800,375.02

Legal representative: Ruan Hongliang Person in charge of accounting function: Jiang Weijie Person in charge of accounting department: Jin Huiping

11

Consolidated Income Statement For the nine months ended 30 September 2021

Prepared by Flat Glass Group Co., Ltd.

Unit: RMB Type of audit: unaudited

			For the nine	For the nine
			months ended	months ended
Items			30 September 2021	30 September 2020
I.	Total operating income		6,337,267,597.37	4,016,570,656.49
	Including: Operating revenue		6,337,267,597.37	4,016,570,656.49
II.	Total operating costs		4,467,865,886.88	2,993,488,137.65
	Including: Operating costs		3,669,934,838.78	2,415,647,590.73
		Taxes and surcharges	30,340,609.54	27,425,216.43
		Selling expense	304,386,539.12	212,773,321.26
		General and administrative
		expenses	155,345,617.83	103,865,529.56
		Research and development
		expenses	303,236,157.80	176,033,280.28
		Financial expenses	4,622,123.81	57,743,199.39
		Including: Interest expenses	57,728,223.46	71,332,549.53
		Interest income	36,210,850.21	11,107,420.04
	Add:	Other income	40,213,585.39	20,057,263.33
		Investment income (loss stated with “-”)	25,236,719.77	7,784,124.02
		Including: investment income from
		associates and joint ventures	3,009,980.60	4,196,788.57
		Profit arising from changes in fair value
		(loss stated with “-”)	-1,744,629.89	1,020,811.77
		Loss on credit impairment
		(loss stated with “-”)	20,451,405.33	-15,111,767.28
		Loss on assets impairment
		(loss stated with “-”)	-12,371,307.56	-42,895,976.60
		Gains on disposal of assets
		(loss stated with “-”)	3,349,838.44	-2,944,195.09
III.	Operating profit (loss expressed with “-”)		1,944,537,321.97	990,992,778.99
	Add:	Non-operating income	4,816,984.44	9,977,166.93
	Less:	Non-operating expenses	1,140,211.48	3,650,465.84
IV.	Total profit (total loss expressed with “-”)		1,948,214,094.93	997,319,480.08
	Less:	Income tax expense	231,362,074.78	185,586,171.93

12

For the nine For the nine months ended months ended Items 30 September 2021 30 September 2020

V.	Net profit (net loss expressed with “-”)	Net profit (net loss expressed with “-”)	1,716,852,020.15	811,733,308.15
	(I)	Classified on a going concern basis
		1. Net profit from continuing
		operation (net loss stated with
		“-”)	1,716,852,020.15	811,733,308.15
	(II)	Classified by attribution of the
		ownership
		1. Net profit attributed to
		shareholders of parent company
		(net loss expressed with “-”)	1,716,852,020.15	811,733,308.15
VI.	Other comprehensive income, net of tax		11,557,675.03	-9,356,951.37
	(I)	Net amount of other comprehensive
		income after tax attributable to the
		shareholders of parent company	11,557,675.03	-9,356,951.37
		1. Other comprehensive income to
		be not reclassified to profit or loss	-966,722.50
		(1) Changes in fair value of
		other equity instruments	-966,722.50
		2. Other comprehensive income to
		be reclassified to profit or loss	12,524,397.53	-9,356,951.37
		(1) Conversion difference of
		foreign currency statement	11,684,218.40	-9,356,951.37
		(2) Other	840,179.13
VII.	Total comprehensive income		1,728,409,695.18	802,376,356.78
	(I)	Total comprehensive income attribute
		to parent company	1,728,409,695.18	802,376,356.78
VIII.	Earnings per share
	Basic earnings per share		0.80	0.42
	Diluted earnings per share		0.80	0.42

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB0, and the net profit recognized by the merged party in the previous period was RMB0.

Legal representative: Ruan Hongliang Person in charge of accounting function: Jiang Weijie Person in charge of accounting department: Jin Huiping

13

Consolidated Statement of Cash Flow For the nine months ended 30 September 2021

Prepared by Flat Glass Group Co., Ltd.

Unit: RMB Type of audit: unaudited

		For the nine	For the nine
		months ended	months ended
Items		30 September 2021	30 September 2020
I.	Cash flow from operating activities:
	Cash received from sale of goods or
	rendering of services	3,591,585,177.90	4,794,393,648.61
	Cash received from refunds of taxes	197,912,768.86	127,605,189.83
	Cash received relating to other operating
	activities	75,748,711.99	32,875,780.33
	Subtotal of cash inflows from operating
	activities	3,865,246,658.75	4,954,874,618.77
	Cash paid for goods and services	3,333,427,352.56	2,521,536,564.37
	Cash paid to and on behalf of employee	314,813,682.34	215,925,151.28
	Cash paid for payments of taxes and
	surcharges	480,501,670.95	176,955,654.16
	Cash paid relating to other operating
	activities	636,932,897.83	351,872,047.17
	Subtotal of cash outflows from operating
	activities	4,765,675,603.68	3,266,289,416.98
	Net cash flow from operating activities	-900,428,944.93	1,688,585,201.79
II.	Cash flow from investing activities
	Cash receipts from disposal of investments	2,050,000,000.00
	Cash received from disposal of investments	23,273,837.86	1,399,400.00
	Net cash received from disposal of fixed
	assets, intangible assets and other long-
	term equity investment	13,467,268.65	5,262,989.68
	Cash received relating to investing activities	67,161,439.65	1,955,951,081.74
	Subtotal of cash inflows from investing
	activities	2,153,902,546.16	1,962,613,471.42
	Cash paid to purchase fixed assets, intangible
	assets and other long-term assets payment	2,980,745,217.52	1,527,002,166.63
	Cash paid to investment	2,050,000,000.00	67,917,500.00
	Cash paid relating to other investing
	activities	25,679,856.10	2,965,665,488.59
	Subtotal of cash outflows from investing
	activities	5,056,425,073.62	4,560,585,155.22
	Net cash flow from investing activities	-2,902,522,527.46	-2,597,971,683.80

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For the nine For the nine months ended months ended Items 30 September 2021 30 September 2020

III.	Cash flow from financing activities:
	Cash received from capital contribution	2,509,960,996.79	28,658,000.00
	Cash received from borrowings	3,102,378,042.43	2,730,069,871.17
	Cash received from issued bonds		1,444,025,000.00
	Cash received relating to other financing
	activities	784,405,415.17	440,358,476.87
	Subtotal of cash inflows from financing
	activities	6,396,744,454.39	4,643,111,348.04
	Cash paid for payment of borrowings	997,501,414.78	2,488,431,846.44
	Cash paid for distribution of dividends, and
	profits or payment of interest	384,806,224.98	65,736,370.94
	Cash paid relating to other financing
	activities	1,164,450,702.67	475,599,542.68
	Subtotal of cash outflows from financing
	activities	2,546,758,342.43	3,029,767,760.06
	Net cash flow from financing activities	3,849,986,111.96	1,613,343,587.98
IV.	Effect of foreign exchange rate changes on
	cash and cash equivalents	-4,099,811.18	-11,715,160.97
V.	Net increase in cash and cash equivalents	42,934,828.39	692,241,945.00
	Add: cash and cash equivalents at beginning
	of period	1,146,171,930.13	479,068,091.59
VI.	Cash and cash equivalents at end of period	1,189,106,758.52	1,171,310,036.59

Legal representative: Ruan Hongliang Person in charge of accounting function: Jiang Weijie Person in charge of accounting department: Jin Huiping

Jiaxing, Zhejiang Province, People’s Republic of China 20 October 2021

As at the date of this announcement, the executive directors of the Company are Mr. Ruan Hongliang, Ms. Jiang Jinhua, Mr. Wei Yezhong and Mr. Shen Qifu, and the independent non-executive directors of the Company are Ms. Xu Pan, Ms. Hua Fulan and Ms. Ng Yau Kuen Carmen.

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