RoboSense Technology Co., Ltd — Audit Report / Information 2019

Mar 31, 2020

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ANNOUNCEMENT IN RELATION TO THE ACCRUAL OF ASSETS IMPAIRMENT PROVISION

Luoyang Glass Company Limited* (the “ Company ”) and all members of the board (the “ Board ”) of directors (the “ Directors ”) of the Company warrant the truthfulness, accuracy and completeness of the contents of this announcement, and accept several and joint responsibilities for any false information, misleading statements or material omissions in this announcement.

On 31 March 2020, the Company convened the fourteenth meeting of the ninth session of the Board, at which the “Resolution in relation to the Accrual of Assets Impairment Provision” was considered and passed, the contents of which are as follows:

I. SUMMARY OF THE ACCRUAL OF PROVISION FOR ASSETS IMPAIRMENT

In order to accurately reflect the Company’s financial and operational situation as at the end of 2019, the Company would conduct a review on every asset, and conduct impairment test on assets which show any indication of impairment at the end of each year, according to the “Accounting Standards for Business Enterprises” of the People’s Republic of China (the “ PRC ”) and the accounting policy of the Company. When the net realizable value of any asset is expected to be lower than its book value, assets impairment provision will be made upon confirmation or calculation.

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II. PARTICULARS OF THE ACCRUAL OF PROVISION FOR ASSETS IMPAIRMENT

(I) Credit impairment losses

The Company recognized the loss provision for receivables based on the expected credit losses. The probability-weighted amount of the difference in present value between the cash flow of receivable from contracts and the cash flow expected to be received, weighted with the risk of default, will be measured by taking into account of reasonable and valid information on, among other things, past events, current status and the forecast of future economic conditions to recognize the expected credit losses.

As at the end of the reporting period, the Company made provision for credit impairment losses of RMB27,640,000 on the receivables. Among which, the Company made provision for credit impairment losses of RMB32,620,000 on the account receivables, wrote off credit impairment losses of RMB3,840,000 on the bill receivables due to the maturity of commercial drafts, and wrote off credit impairment losses of RMB1,140,000 due to other receivables were partially received during the current period.

(II) Provision for inventories impairment

Inventories were measured at the lower of cost and net realizable value during the reporting period. The inventories impairment provision, i.e. the difference between the book value and the net realizable value of the inventories, in the amount of RMB3,400,000 was made by the subsidiaries, including RMB2,060,000 from CLFG Longmen Glass Co. Ltd.* ( 洛陽集 團龍門玻璃有限責任公司 ) (“ Longmen Glass ”), RMB350,000 from CNBM (Tongcheng) New Energy Materials Co., Ltd.* ( 中國建材桐城 新能源材料有限公司 ), RMB860,000 from Bengbu China National Building Materials Information Display Material Company Limited* ( 蚌埠 中建材信息顯示材料有限公司 ) and RMB130,000 from CNBM (Hefei) New Energy Co., Ltd.* ( 中建材（合肥）新能源材料有限公司 ).

(III) Provision for Fixed Assets Impairment

In accordance with the “Accounting Standards for Business Enterprises” of the PRC, the Company conducted impairment tests on its fixed assets which show any indication of impairment at the end of 2019, and engaged an asset evaluation institution to conduct an assessment on the relevant assets. Based on the impairment test and with reference to the assessment result issued by the professional institution, the provision in an amount of RMB4,690,000 was accrued as the provision for fixed assets impairment by Longmen Glass, a subsidiary of the Company.

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III. THE IMPACT OF THE ACCRUAL OF ASSETS IMPAIRMENT PROVISION ON THE COMPANY

The accrual of assets impairment provision amounted to RMB35,730,000 in total, the amount of effect on net profit attributable to shareholders of the listed company amounted to RMB30,560,000 after deducting the factors of income tax and minority interests.

IV. THE BOARD’S EXPLANATION ON THE REASONABLENESS FOR THE ACCRUAL OF ASSETS IMPAIRMENT PROVISION

The Board is of the opinion that, in accordance with the “Accounting Standards for Business Enterprises” of the PRC, the accrual of assets impairment provision was made on a prudent principle with sufficient foundations and fairly reflected the asset conditions of the Company upon the accrual of assets impairment provision, and therefore the Board approved the accrual of assets impairment provision according to the “Accounting Standards for Business Enterprises” of the PRC and the accounting policy of the Company.

V. THE OPINIONS OF THE SUPERVISORY COMMITTEE OF THE COMPANY ON THE ACCRUAL OF ASSETS IMPAIRMENT PROVISION

The supervisory committee of the Company is of the view that, the decisionmaking procedure of the accrual of assets impairment provision of the Company is legal with sufficient foundations. The accrual was in compliance with the “Accounting Standards for Business Enterprises” of the PRC and other relevant regulations and fairly reflected the asset conditions of the Company upon the accrual, and therefore the Board approved the accrual of assets impairment provision.

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VI. THE OPINIONS OF THE AUDIT COMMITTEE OF THE COMPANY ON THE ACCRUAL OF ASSETS IMPAIRMENT PROVISION

The audit committee of the Company is of the view that, the accrual of assets impairment provision was in compliance with the “Accounting Standards for Business Enterprises” of the PRC and the relevant accounting policy of the Company, and was made on a prudent principle with sufficient foundations upon the assets impairment test. Upon the accrual of assets impairment provision, the Company’s financial statements for 2019 can fairly reflect the financial situation, asset value and operating results of the Company for the year ended 31 December 2019, which makes the Company’s accounting information more reasonable, and therefore the Board approved the accrual of assets impairment provision.

By order of the Board Luoyang Glass Company Limited Zhang Chong* Chairman

Luoyang, the PRC 31 March 2020

As at the date of this announcement, the Board comprises five executive Directors: Mr. Zhang Chong, Mr. Xie Jun, Mr. Ma Yan, Mr. Wang Guoqiang and Mr. Zhang Rong; two non-executive Directors: Mr. Ren Hongcan and Mr. Chen Yong; and four independent non-executive Directors: Mr. Jin Zhanping, Mr. Ye Shuhua, Mr. He Baofeng and Ms. Zhang Yajuan.

• For identification purposes only

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