RoboSense Technology Co., Ltd — Environmental & Social Information 2017

May 4, 2017

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(a joint stock limited company incorporated in the People's Republic of China with limited liability)

H Share Stock Code: 1108 A Share Stock Code: 600876

ENVIRONMENTAL, SOCIAL AND 2016GOVERNANCE REPORT

Environmental, Social and Governance Report

Luoyang Glass Company Limited (“Luoyang Glass” or the “Company”) (Stock Code: 01108 (H shares), 600876 (A shares)) is a company whose A shares and H shares are listed in Shanghai and Hong Kong, respectively.

Luoyang Glass Company Limited is currently one of the manufacturers capable of mass production of 0.15mm–2.0mm series of electronic information display glass in China. As the first company realizing commercial production of ultra-thin float glass products in China, the Company has accumulated leading knowledge system and processing experiences during operation and production of ultra-thin glass for over 10 years. The Company possesses a number of proprietary intellectual property rights and core technologies and maintains the leading position in the key production techniques of ultra-thin and ultra-white-ultra-thin float glass in China. Its products are widely applied in the ITO industry, electronic industry, sophisticated instruments and glass deep processing industry. The Company has successively won various accolades including ““National Quality Award for Float Glass – Silver Award (國家浮法玻璃質量獎–銀質獎)”, “Gold Invention Award (金質發明獎)”, “National Consumer Trustworthy Product ( 全國消費者信得過產品 )”,“Well-known Trademark ( 馳名商標 )”and”National Science & Technology Progress Award (first class) (國家科學技術進步一等獎).

Aiming to build itself into an innovation-performance-based, resource-conserving, environment friendly and socially responsible enterprise, and adhering to the core conception of “smart use of resources to serve the industrial construction”, the Company fosters the core value of “Innovation, Performance, Harmony and Responsibility”, striving for and making contribution to the harmonious, healthy and sustainable development among the Company and environment, the Company and its employees, the Company and the society.

Steadily Promoting Environmental Protection and Resources Conservation

The Company is mainly engaged in production and sales of ultra-thin electronic glass with its product mainly distributed across 18 provinces (or municipalities directly under the central government) including Anhui, Guangdong, Jiangsu, Shanghai, Zhejiang and Hebei.

At present, the Company has three ultra-thin electronic glass production lines with daily melting capacity of 650 tonnes/day and average monthly production capacity of nearly 3 million square meters. Among them, CLFG Longhai Electronic Glass Co., Ltd. (Longhai Company) and CLFG Longmen Glass Company Limited (Longbo Company) are located in Luoyang, Henan province, and Bengbu CNBM Information Display Material Co., Ltd. (Bengbu Company) is located in Bengbu, Anhui province.

• The main process for manufacture of ultra-thin glass with float glass manufacturing methods: all mineral raw materials and chemical raw materials which meet the manufacture requirement of ultra-thin glass are shipped into plant and stored in materials storage → having materials mixed in blender in compliance with material requirement, the well-prepared batches are transferred to furnace head storage of glass furnace through belt conveyor → a feeder at furnace head continuously feeding materials into furnace → (taking natural gas as fuel of furnace) after the batches are conveyed into furnace, the qualified glass liquid is formed after the batches are melt at high temperature, settled, homogenize and chilled, and flows into fluid channel (flow of glass liquid is controlled by control tweel (sheet/plate) of fluid channel) → glass liquid moves forward into annealing furnace through tin bath from fluid channel → finally after chilling and cutting at cool end section, products are packaged in finished products automatic packaging system and transferred into finished products storage.

• Greenhouse gas emitted from the manufacture facility and in the manufacture process of the Company mainly includes burning of fuel, oxidation of carbon powder of raw material, decomposition of carbonate raw material, emissions from purchased net electricity and other manufacture process.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

Environmental, Social and Governance Report

Data on Greenhouse Gas Emission from Production Lines of the Company for 2016

			Emission from	Emission from	Emission
	Total annual	Total emission	oxidation	decomposition	from use of
	CO2 emission	from burning	of carbon powder	of carbonate	purchased
	for the year	of fossil fuel	of raw materials	raw material	net electricity
	(tCO2)	(tCO2)	(tCO2)	(tCO2)	(tCO2)
Total	183,104.19	10,9731.83	106.99	13,256.99	60,022.61
Longhai Company	62,843.97	40,079.95	36.10	5,656.99	17,070.93
Longbo Company	66,328.06	44,930.43	53.67	5,717.19	15,626.77
Bengbu Company	53,932.16	24,721.45	17.22	1,882.81	27,324.91

• (Note: Data in the table are calculated in accordance with the Calculation Method and Report Guide on Greenhouse Gas Emission for the PRC Manufacturers of Sheet Glass (Trial) ( 《中國平板玻璃生產企業溫室氣體排放核算方法與報告指南（試行）》 issued by the National Development and Reform Commission)

• Major pollutants generated from the production process: dust-laden gases, and smoke, noise, waste water and solid waste emitted from furnaces.

Data on Major Pollutants Emitted from Production Lines of the Company for 2016

	Waste gas	SO2	NOx	Granule	Waste water	COD
	(0’000 standard
	cubic meters)	(Ton)	(Ton)	(Ton)	(Ton)	(Ton)
Total	84,270	49.9	429.5	14.3	288,518	7.2
Longhai Company	22,939	5.7	150.6	4.9	106,179	2.9
Longbo Company	39,699	10.1	207.5	7.2	137,142	4.1
Bengbu Company	21,632	34.1	71.4	2.2	45,197	0.2

Legal Compliance

The Company earnestly follows out environmental protection-related laws and regulations and strictly abides by the specialized standards in relation to environmental protection, energy conservation and comprehensive utilization of resources issued by the state and local governments. The relevant laws and regulations include:

Environmental Protection Law of the People’s Republic of China (《中華人民共和國環境保護法》, taking effect on 1 January 2015);

Law of the People’s Republic of China on Environmental Effects Assessment (《中華人民共和國環境影響評價法》, taking effect on 1 September 2003);

Law of the People’s Republic of China on Prevention and Control of Atmospheric Pollution (《中華人民共和國大氣污染防治法》, taking effect on 1 September 2000);

Law of the People’s Republic of China on Prevention and Control of Water Pollution (《中華人民共和國水污染防治法》, taking effect on 1 June 2008);

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

Environmental, Social and Governance Report

Law of the People’s Republic of China on Prevention and Control of Pollution from Environmental Noise (《中華人民共和國環境 噪聲污染防治法》, taking effect on 1 March 1997);

Law of the People’s Republic of China on Prevention and Control of Environmental Pollution Caused by Solid Waste (《中華人民 共和國固體廢物污染環境防治法》, taking effect on 1 April 2005);

Law of the People’s Republic of China on Promoting Clean Production (《中華人民共和國清潔生產促進法》, taking effect on 1 January 2003);

The Company rigorously implements standards on pollutant discharges and improves its monitoring and discharge reduction system to ensure standard discharge and clean production. The following standards are implemented:

Wastewater: to follow the Integrated Wastewater Discharge Standard (《污水綜合排放標準》)(GB 8978–1996) Class I in respect of pH, COD, SS, BOD5, NH3-N, petroleum and other relevant pollutants;

Exhaust: to follow the Emission Standard of Air Pollutants for Electronic Glass Industry (《電子玻璃工業大氣污染物排放標準》) (GB29495–2013) in respect of NOx, SO2 and atmospheric particulates;

Noise: to follow the Emission Standard for Industrial Enterprises Noise at Boundary (《工業企業廠界環境噪聲排放標準》)(GB 12348–2008).

Systematic Management

The Company has established a panel and assigned professionals to lead the work on energy conservation and emission reduction according to relevant laws and regulations. All key managers concerned have obtained professional credentials.

Based on the environmental protection policies of the state and taking into account problems identified in the course of practical implementation, the Company has formulated and improved the management system of environmental protection, which covers the management of aquatic environment and atmospheric environment, prevention and control of the noise, environmental monitoring, environmental protection in construction projects and pollution treatment as well as the inspection and assessment systems. The Company also disseminated the importance of environmental protection throughout the Company to consistently improve the environmental awareness and resource saving consciousness of the staff. In 2016, the Company made further amendments to Rules on Energy Management (《能源管理制度》), Rules on Environmental Protection Management (《環境保護管理制度》), and Rules on Clean Production Management(《清潔生產管理制度》).

The Company reduces energy consumption and pollutant discharges, improves energy utilization efficiency and achieves clean production in virtue of incessant improvement in processing technology.

• All production lines are fueled by natural gas and further reduction of energy consumption and pollutant discharge are achieved by improving combustion methods, thus implementing clean production.

• The Company strengthens operation and management of environmental protection facilities for desulfurization, denitration and dedusting to ensure sound operation conditions of the environmental protection facilities, guarantee high efficiency of desulfurization, denitration and dedusting and reduce emission of SO2, NOx and smoke dust. In 2016, the Company maintained all facilities for the fume dedusting and denitration in normal conditions in the production lines. In the site acceptance conducted by Luoyang Environmental Protection Bureau, the emission concentration of fumes, SO2 and NOx in the production lines was proved to satisfy the national requirements of Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495–2013).

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

Environmental, Social and Governance Report

• The Company takes a range of measures to reduce utilization of natural gas, cut the cost of fuel and decrease emission of SO2 and NOx. Relevant measures included the adoption of oxygen-enriched combustion technology, improvement in the air vent of the combustion fan, hot repair for the regenerator, heat preservation for the furnace wall and reasonable adjustments of certain parameters in the manufacturing processing. In 2016, the Company saved approximately 1,224,300 m[3] natural gas in all production lines in aggregate.

• The Company attaches importance to the reuse of water resources. It collects wastewater from the waste heat boiler, stores such in the circulating reservoir consisting of sedimentation pond, regeneration pool, absorbent device as well as other facilities and then reuses them in the fume dedusting and desulfurization system of the melting furnace. Besides, the Company applies a full guard coolant water system to the melting furnace, which only takes a small amount of water feed.

Comprehensive Treatment

Major treatment measures and recycled utilization approaches include:

• Furnace fumes are disposed through the combination of the electronic precipitator, the denitrification reactor, the semi-dry process for desulfurization and the bag filter.

• For the dust generated from glass breaker system and the compounding system, a bag filter is used for collection and further treatment of such dust.

• For noise treatment, the Company selects and uses facilities with low noise design and made rational distribution of noise sources (for example, to position all intense noise sources such as the freezing units, emergency generator, air compressor and vacuum pump in airtight workshops and to emplace cooling towers with encircling sound arresters on the rooftop of the power house) to scale down effects of noises from the production facilities on the surroundings as far as possible.

• Wastewater is treated through the process of equalization, sediment neutralization treatment and cycling. The reclaimed wastewater is reused for water supply in the ambient temperature cooling system. In addition, cooling water used in the freezing units and air compressors is all recycled to reduce waste of water resources.

• The solid wastes mainly consists of the dust collected by the bag filter, faulty glass substrate (semi-finished products and finished products), culled refractories and obsolete packaging materials, for which the recycled utilization measures include: to reuse the dust of compound and dust of ladle addition feeder collected by bag filters in production; to reuse all faulty glass substrates in production; to send used packing materials of chemicals back to the suppliers for recycling and common packaging materials to reclamation depot.

Proactively Fulfilling Corporate Social Responsibility

In the light of the core value of “innovation, performance, harmony and responsibility”, the Company proactively undertakes the corporate social responsibility based on the demands of stakeholders including the staff, customers, business partners, the community, the media and so forth.

Safeguarding Rights and Interests of the Staff

The Company respects and preserves the internationally accepted human rights conventions and labor standards, resolutely eliminates forced labor, protests against discrimination of any kind and sternly prohibits and resists the use of child labor. It recruits new staff in an open, fair and just manner, enforces equal pay for equal work and respects the privacy of the staff.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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• The Company protects the staff’s legal entitlements to the labor rights and performance of labor obligations in strict compliance with Labor Contract Law of the People’s Republic of China (《中華人民共和國勞動合同法》) and relevant laws and regulations.

• The Company has entered into labor contracts with the staff and performed duties thereunder according to the laws. The signature rate of contracts of the Company is 100%. The Company pays in full the social insurances concerning pension, medicare, unemployment, work-related injuries and maternity to ensure the staff’s treatment of social insurances in line with relevant national, provincial and local provisions.

• The Company has adopted the paid annual leave system for the staff and provides overtime pay for the work beyond legal working hours according to relevant provisions including Regulations of Paid Annual Leave of Employees(《職工 帶薪年休假條例》).

• The Company unremittingly consummates the corporate democratic management system with the congress of employee representatives as the fundamental form, and reports to and receives reviews from the employee representatives on the annual production and operation as well as material matters of the Company through the congress of employee representatives. The Company has established labor unions at all levels to cope with issues of the staff in relation to expression of demands, conflict settlement and other aspects, thus guaranteeing the staff’s rights for participation, knowledge and supervision.

• The Company lays emphasis on quality improvement and skill trainings for workers at the production line. It has formed the “Chief Employee” appraisal system to select “chief employees” among employees subordinate to shift forepersons in charge of key work and key posts in production for each year. In 2016, the Company gave the title of “chief employees” to three outstanding employees. The labor union of the Company energetically carried out a series of activities including the “model worker workshop” and “Striving to be a Star Employee” to demonstrate the elegant demeanor of the staff and reinforce their passion in and devotion to the work. In 2016, the Company proactively sponsored and participated in the Luoyang Employees Vocational Skill Completion, in which two employees of the Company won the first prize for individuals in melting category and molding category, respectively and were rewarded with the Luoyang “May Day” Labor Medals.

• The Company carries on the “heart-warming” and “aiding students in golden autumn” themed activities. In 2016, the Company provided aid and relief for employees in difficulties for 183 times and college fund for 14 students from poverty stricken families.

• The Company has preserved the staff’s rights of occupational safety and health and arranged physical examination for 865 employees of the Company for free in 2016. Besides, the Company has exercised the special labor protection for female employees and recorded a full coverage of physical examination according to relevant stipulations including the Law on Protection of Rights and Interests of Women (《婦女權益保護法》).

• The Company proactively organizes cultural and recreational activities to enrich the cultural life of employees after work. In 2016, the Company hosted a series of grand activities such as the “New Year celebration”, the “mountaineering competition on Women’s Day” and the “flower viewing activities for model workers”.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

Environmental, Social and Governance Report

Production Safety

In light of the safety principle of “Safety First, Prevention Foremost and Comprehensive Treatment”, in addition to ever-increasing efforts to the day-to-day safety monitoring and management, the Company attends to the work relating to “targeted management of safety”, “identification of material latent hazards”, “establishment and rehearsal of the responsive system for material incidents” and “hierarchical control over danger sources (sites)”aiming for the achievement of safety in essence and the comprehensive improvement of production safety.

• The Company has established rigorous management systems, operation standards and responsive plans for production safety to strengthen the production safety accountability system and implement targeted management of production safety. Meanwhile, the Company has executed the Contract on Production Safety Obligations (《安全承包責 任書》) in light of the overall control target of the safety work.

• The Company has strengthened the prevention and control of incidents and the hierarchical monitoring and control over danger sources (sites) by implementing progressive control and management in view of the nature and perniciousness of the danger sources (sites). The Company also arranges regular inspection on danger sources (sites) at different levels for each month, assigns full-time safety officer for daily in-process inspection from district to district, collects feedback receipts for latent hazard rectifications, designates separate principals for different projects to push forward relevant rectifications with the prescribed time limit and carries out on-site post inspections. Thanks to the foregoing, the Company has made the danger sources (sites) manageable, within reach and under control, thus effectively preventing the occurrence of material incidents.

• The Company has established the responsive rescue systems and mechanisms for material incidents and highlights investment in production safety to ensure full implementation of various safety measures. Professionals are arranged to make amendments to the responsive rescue plan in a timely manner and corresponding rehearsals are organized for each year in production units subordinate to the Company where there are concentrated danger sources.

• The Company strictly follows the safety training system and requires qualification certificates for personnel of special positions. In 2016, the Company organized trainings on certificate renewal and review for operators of special work for 138 person-times. Besides, the Company arranged 61 safety officers to attend safety trainings of Luoyang Department of State Administration of Work Safety and all were accredited with safety management qualification certificates.

Safeguarding the Rights and Interests of Suppliers, Customers and Consumers

The Company has long been devoted to establishing the strategic partnership with suppliers and distributors featuring smooth communication, sincere cooperation and mutual benefit and providing support for the development of suppliers and distributors with good faith, high-quality products and superior services so as to safeguard the rights and interests of suppliers, customers and consumers.

• The Company standardizes the management of suppliers, chooses excellent suppliers as cooperative partners in the supply chain and establishes long-term strategic cooperation relationship with them. It implements the concentrated purchasing through tender, and improves the fairness and justice of the supplier assessment systems so as to create a healthy competition environment for suppliers. In addition, the Company also designates professional technicians in production to provide technical instructions and services for suppliers for free so as to ensure qualified incoming raw materials as needed.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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• In adherence to survival in virtue of quality and development through innovations, the Company energetically pushes ahead for stronger quality consciousness and increasingly improving quality management systems so as to provide high-quality products and services for customers and consumers. The Company became the first among peers in the glass industry of China to obtain ISO9001 Quality System certification in 1997. Bengbu China National Building Materials Information Display Materials Company Limited ( 蚌埠中建材信息顯示材料有限公司 ), a wholly-owned subsidiary of the Company, passed the “Integration of Three Standards (quality, environment and occupational health and safety) Management System” certification in 2014. The Company has been improving the quality management systems covering each process from incoming raw materials to factory-gate products to make sure the in-process quality control. Paying consistent attention to the concerns of customers, the Company has made full use of various effective approaches to launch activities for collecting and analyzing information on customer satisfaction, and has formulated corrective measures based on helpful opinions and recommendations of customers and implemented such into specific departments for timely rectifications. As a result, customer satisfaction has been increasing year by year.

• The Company devotes ever greater efforts to the troubleshooting as well as the marketing and application of the ultra-thin float glass technology. The Company recorded an increase of approximately 49.6% in the investment in product research and development in 2016 as compared to the same period last year. In April 2016, the Company managed to produce the 0.15mm electronic glass product, which broke the production record anew in the ultra-thin electronic display glass products in China, and achieved the leap forward from “ultra-thin” to “super-thin” in float glass production. Bengbu Company, a wholly-owned subsidiary of the Company, was accredited as one of the first batch of “High-tech Enterprises” (高新技術企業) of 2016 in Anhui Province and was granted the High-tech Enterprise Certificate 《高新技術企業證書》( ).

Public Relations

The Company and its subsidiaries proactively fulfill their corporate social responsibility for the communities in which they operate and have established good relationship with the communities. A safe and healthy environment has been created for such communities in terms of traffic safety, personal safety and public health. The Company upholds harmonious neighborhood, fair exchange and mutual respect.

The Company resolutely opposes to commercial bribery and industrial monopoly and proactively participates in protection of fair market competition in the principle of building a fair, just and open market competition environment to improve economic operation efficiency, safeguard consumers’ interests and social public interests, and promote the healthy development of the industry.

Regarding payment of taxes according to laws as the most basic requirement for fulfilment of social responsibility and repaying the society, the Company has always faithfully declared tax and made timely payment of taxes.

In operating activities, the Company follows the principle of voluntariness, fairness, honesty and credibility, complies with social morality and business ethics, takes the initiative to accept the supervision and inspection by government departments and regulators, and attaches importance to the supervision and comments of the public and news media for the Company.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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Giving Top Priority to Enhancement of Corporate Governance

The Company is proactively committed to achieving and maintaining high standard of corporate governance and constantly improving corporate governance. A decision and operation system has been established based on the Articles of Association and mainly structured with the general meeting, the Board, the Supervisory Committee and the management to improve various internal management systems. An internal control and prevention system has been built, with risk management as the start, clear division of responsibility as the core, improved institutional construction as the guarantee and process streamlining and standardizing as the basis. The standardization and implementation of corporate internal control system reasonably guarantee the legality and compliance of the Company’s operation and management, assets safety, authenticity and completeness of financial report and relevant information, improvement of operating efficiency and effects, and promotion of the realisation of the Company’s development strategy.

Compliance with Corporate Governance Code

The Company has adopted the principles under the Corporate Governance Code as set out in Appendix 14 to the Listing Rules.

Securities Transactions by Directors and Supervisors

The Company has adopted the Model Code for Securities Transactions set out in Appendix 10 to the Listing Rules.

Having made specific enquiry by the Company, all Directors and supervisors have confirmed that they had fully complied with relevant requirements of the Model Code for Securities Transactions during the reporting period.

As at 31 December 2016, none of the Directors, supervisors or senior management of the Company and their connected persons to the knowledge of the Directors had any interest nor short position in the shares, underlying shares or debentures of the Company or its associated corporations which was required to be entered in the register of interest kept by the Company pursuant to section 352 of the Securities and Futures Ordinance

The changes in shareholdings and remuneration of the existing and resigned Directors, supervisors and senior management during the reporting period are set out in the section headed “Directors, Supervisors, Senior Management and Employees” in the annual report.

Board

During the reporting period, the eighth session of the Board of the Company consisted of 11 members including 4 executive Directors, 3 non-executive Directors and 4 independent non-executive Directors. The personal information of relevant Directors are set out in the section headed “Directors, Supervisors, Senior Management and Employees” in the annual report.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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Members of the eighth session of the Board of the Company and composition of special committees

Committees Members of the Board	Strategic Committee	Nomination Committee	Remuneration and Review Committee	Compliance Committee	Audit Committee
Executive Directors
Mr. Zhang Chong_(Chairman)_	Chairman	Member	Member
Mr. Ni Zhisen_(General Manager)_	Member
Mr. Ma Yan_(Chief Financial Officer)_
Mr. Wang Guoqiang (Deputy General Manager)
Non-executive Directors
Mr. Xie Jun_(Deputy Chairman)_				Member
Mr. Zhang Chengong	Member
Mr. Tang Liwei	Member
Independent Non-executive Directors
Mr. Jin Zhanping	Member	Chairman
Mr. Liu Tianni			Member	Chairman	Member
Mr. Ye Shuhua			Chairman		Member
Mr. He Baofeng		Member			Chairman

The Board convenes meetings on a regular basis and also calls upon irregular meetings depending on actual conditions. During the reporting period, the Board convened 18 meetings and all Directors proactively attended the meetings in person or by way of communication. The attendance of Board meetings and the meetings of special committees in 2016 is set out in the section headed “Corporate Governance” in the annual report.

Special Committees of the Board

Under the Board of the Company are established five special committees, i.e. the Audit Committee, the Strategic Committee, the Nomination Committee, the Remuneration and Review Committee and the Compliance Committee. Each of them fulfilled their duties according to the working rules of such committees, concretely and effectively helped the Board to perform the duties as set out in Appendix 14 D3.1 to the Listing Rules.

The work and meetings of the special committees in 2016 are set out in the section headed “Corporate Governance” in the annual report.

Risk Management and Internal Control

The Board is responsible for the risk management and internal control system and the review of the effectiveness thereof. The Supervisory Committee supervises the establishment and implementation of internal control by the Board.

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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The Audit Committee of the Board is responsible for reviewing the Company’s financial position, implementation and effects of internal control system, and risk management and control as well as the communication, supervision and inspection in respect of internal and external audit of the Company.

The management is in charge of organizing and leading the daily operation of risk management and internal control and the Audit Department of the Company is responsible for the specific implementation, supervision and inspection of the risk management and internal control system. The Company has engaged WUYIGE Certified Public Accountants LLP. to audit effectiveness of internal control of annual financial statements of the Company, who presented the audit report and disclosure.

In 2016, the Board, through the Audit Committee, reviewed the adequacy and effectiveness of the Company’s risk management and internal control. It prepared the Report on Comprehensive Risk Management of Luoyang Glass Company Limited for 2017, conducted comprehensive monitoring and evaluation for the internal control management system of 7 functional departments and 3 important subsidiaries falling the scope of the Company’s internal control system in accordance with the Measures for Management of Internal Control Evaluation and the Plan on Implementation of Self Evaluation for 2016, and issued the Report on Evaluation of Internal Control for 2016 of Luoyang Glass Company Limited.

Relationship with Shareholders

The Board considers that it is very important to engage in effective communication with shareholders, strengthen management of investor relations and facilitate them to have an understanding of the Company’s business and development prospects. The Company strengthened communications among its investors via investors exchange meetings, performance presentations, interactive internet platforms, etc. and highly valued the creation of harmonious relations among investors. Questions brought up by investors were timely replied to. Secretariat of Board of Directors of the Company appointed a special person to answer consulting phone calls from investors and receive their emails as well as reply to their questions and inquiries. The specially appointed person also received visiting investors and assisted them in conducting researches. The Company’s files, annual reports, half-year reports, quarterly reports, temporary announcements, circulars, etc. were publicized on the website so that shareholders and other investors could obtain updated information about the Company.

The Company respects and protects legal rights of medium and small investors. The Articles of Association sets out that, While convening the general meeting, the Shareholders alone or in aggregate holding more than 3% (including 3%) of the shares of the Company can submit a new proposal in writing to the Company; the Shareholders individually or jointly holding more than 10% shares of the Company, have right to request the Board to convene the extraordinary general meeting. As clearly specified in Articles of Associations, shareholders shall participate in major decision-making of the Company by exercising the voting rights during the General Meetings. The Company operates independently, has sole decision-making right for operations and does not depend on any controlling shareholders and their connected enterprises.

During the reporting period, the Company convened the 2015 annual general meeting and 2 extraordinary general meetings.

		Inquiry index on the website
		on which the resolutions are
Session	Date	publicized	Date of disclosure
2016 First Extraordinary General Meeting	15 April 2016	http://www.hkexnews.hk	15 April 2016
		http://www.sse.com.cn
2015 Annual General Meeting	24 May 2016	http://www.hkexnews.hk	24 May 2016
		http://www.sse.com.cn
2016 Second Extraordinary General Meeting	6 December 2016	http://www.hkexnews.hk	6 December 2016
		http://www.sse.com.cn

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report

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Auditors’ Remuneration

The Audit Committee of the Board is responsible for check of the independence of external auditors and the non-audit work undertaken by them. WUYIGE Certified Public Accountants LLP. was appointed as the external auditors for the year upon approval by Shareholders at the previous session of the annual general meeting. The auditors’ remuneration is set out in the section headed “Significant Events” in the annual report.

Company Secretary

During the reporting period, the Company Secretary was Mr. Ip Pui Sum from Sum, Arthur & Co. in Hong Kong. The Company Secretary reported corporate governance to the Chairman, ensured smooth information exchange among Directors and between Directors and Shareholders, and complied with the policies and procedures of the Board. In 2016, Mr. Ip accepted no less than 15 hours of professional training to update his skills and knowledge.

Mr. Wu Zhixin, Secretary to the Board, serves as the principal liaison of the Company with the Company Secretary. For her detailed contact information, please refer to the section headed “Company Profile” in the annual report.

May 2017

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Luoyang Glass Company Limited I 2016 Environmental, Social and Governance Report