RoboSense Technology Co., Ltd — Interim / Quarterly Report 2014

Apr 28, 2014

Hong Kong Exchanges 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.

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FIRST QUARTERLY REPORT 2014

1. IMPORTANT NOTICE

• 1.1 The board of directors (the “Board”), the supervisory committee, the directors (the “Directors”), supervisors and senior management members of the Company warrant that there is no false representation or misleading statement in or material omission from this report and jointly and severally accept responsibilities for the truthfulness, accuracy and completeness of the content contained herein.

• 1.2 All Directors attended the Board meeting.

• 1.3 The first quarterly financial statements of the Company are unaudited.

• 1.4 Mr. Ma Liyun, Chairman of the Company, Ms. Sun Lei, the Financial Controller, and Ms. Chen Jing, the Head of Finance Department, warrant that the financial statements in this quarterly report are true, accurate and complete.

* For identification purpose only

— 1 —

2. MAJOR FINANCIAL DATA AND CHANGES IN SHAREHOLDERS OF THE COMPANY

2.1 Major Financial Data

Unit: RMB

			Increase/ decrease
			at the end of the
			reporting period as
			compared with the
	At the end of the	At the end of the	end of the previous
	reporting period	previous year	year
			(%)
Total assets	1,202,813,553.52	1,226,528,319.88	-1.93
Net assets attributable to shareholders	103,831,313.86	33,306,058.69	211.75
of the Company
		From beginning of the
		previous year to the
	From beginning of	end of the reporting
	the year to the end of	period of the previous	Year-on-year
	the reporting period	year	increase/decrease
			(%)
Net cash flows from operating activities	-4,499,325.52	-6,734,546.74	N/A

— 2 —

		From beginning of the
		previous year to the
	From beginning of	end of the reporting
	the year to the end of	period of the previous	Year-on-year
	the reporting period	year	increase/decrease
			(%)
Operating income	126,378,728.92	64,450,159.03	96.09
Net profit attributable to shareholders
of the listed company	70,489,403.90	-25,438,985.47	N/A
Net profit attributable to shareholders of
the listed company after deducting
extraordinary profit or loss	69,183,524.58	-26,348,870.19	N/A
Weighted average return on net assets_(%)_	102.83	-21.30	Increased by 124.13
			percentage points
Basic earnings per share	0.1410	-0.0509	N/A
Diluted earnings per share	0.1410	-0.0509	N/A

— 3 —

Extraordinary Items and Amounts:

Unit: RMB

	Amount for
	the reporting
	period (January
Extraordinary Items	- March)
Profit/loss from disposal of non-current assets	418,189.09
Government grants credited to current profit or
loss (except for those which are closely
related to the Company’s ordinary business,
in accordance with national policies and
continuously received in certain standard
amounts and quantities)	387,263.04
Profit/loss from debt restructuring	187,500.00
Other net non-operating income and
expenses excluding the aforesaid items	706,575.72
Aggregate effect of
extraordinary items on total profit	1,699,527.85
Less: Amount of effect on income tax	9,358.88
Less: Amount of effect on minority interest	384,289.65
Extraordinary profit or loss
effect attributable to the Company	1,305,879.32

— 4 —

2.2 Total number of shareholders, top 10 shareholders and top 10 holders of shares not subject to trading moratorium at the end of the reporting period

Unit: Share

Total number of shareholders as at the end of the reporting period

16,071 including 16,017 holders of A Shares and 54 holders of H Shares.

Shareholdings of the top 10 shareholders

Number

			Number
			of shares
			subject to
	Total		trading
	number of	Shareholding	moratorium	Number of shares pledged
Name of shareholders (full name)	shares held	Percentage	held	or frozen		Nature of shareholder
				Status of
		(%)		shares	Number
HKSCC Nominees Limited	247,848,998	49.57	0	Unknown		Overseas legal person
China Luoyang Float Glass	159,018,242	31.80	0	Pledged	159,018,242	State-owned legal-person
(Group) Company Limited
Zhang Lixin	2,764,944	0.55	0	Unknown		Domestic natural person
Mao Jianghui	2,092,599	0.42	0	Unknown		Domestic natural person
Ji Haibin	1,666,233	0.33	0	Unknown		Domestic natural person
Dedicated securities account for	1,302,650	0.26	0	Unknown		Other
stock repo trading of
Guosen Securities Co., Ltd.
Beijing Daiwei Debang	1,021,853	0.20	0	Unknown		Domestic legal person
Investment Consultation Co., Ltd.
Liu Yujun	999,400	0.20	0	Unknown		Domestic natural person
Zhang Wenming	870,000	0.17	0	Unknown		Domestic natural person
Zhang Ruiying	670,000	0.13	0	Unknown		Domestic natural person

— 5 —

Particulars of the top 10 holders of shares not subject to trading moratorium

Type and number of shares

	Number of
	shares held not
	subject to trading
Name of shareholder	moratorium	Type	Number
HKSCC Nominees Limited	247,848,998	Overseas listed	247,848,998
		foreign shares
China Luoyang Float Glass (Group)	159,018,242	Ordinary shares	159,018,242
Company Limited		denominated
		in RMB
Zhang Lixin	2,764,944	Ordinary shares	2,764,944
		denominated
		in RMB
Mao Jianghui	2,092,599	Ordinary shares	2,092,599
		denominated
		in RMB
Ji Haibin	1,666,233	Ordinary shares	1,666,233
		denominated
		in RMB
Dedicated securities account for stock repo	1,302,650	Ordinary shares	1,302,650
trading of Guosen Securities Co., Ltd.		denominated
		in RMB
Beijing Daiwei Debang Investment	1,021,853	Ordinary shares	1,021,853
Consultation Co., Ltd.		denominated
		in RMB
Liu Yujun	999,400	Ordinary shares	999,400
		denominated
		in RMB
Zhang Wenming	870,000	Ordinary shares	870,000
		denominated
		in RMB
Zhang Ruiying	670,000	Ordinary shares	670,000
		denominated
		in RMB

Explanation on connected relationship or action acting in concert among the aforesaid shareholders:

There are no connected parties or persons acting in concert as defined by Regulations for Disclosure of Changes in Shareholding of Listed Companies（《上市公司股東持股變 動信息披露管理辦法》）issued by CSRC among the top ten shareholders of the Company, including China Luoyang Float Glass (Group) Company Limited and other shareholders of circulating shares. The Company is not aware of any parties acting in concert or any connected relationship among other shareholders of circulating shares. Shares were held by HKSCC Nominees Limited, representing its various customers.

— 6 —

3 SIGNIFICANT EVENTS

3.1 Substantial changes in major items of financial statements and financial indicators and the reasons thereof

• (1) Bills receivable decreased by 83.41% as compared with the beginning of the year, mainly due to the repayment of loans in the period;

• (2) Other receivables decreased by 48.00% as compared with the beginning of the year, mainly due to the collection of payments in respect of land acquisition for reserve in the period;

• (3) Long-term receivables increased by 100% as compared with the beginning of the year, mainly due to that the receivables due from the disposal of equity interest in Luoyang Glass Industrial Co., Ltd. have not been received in the period;

• (4) Short-term loans decreased by 60.64% as compared with the beginning of the year, mainly due to the repayment of loans in the period;

• (5) Payments received in advance increased by 38.93% as compared with the beginning of the year, mainly due to the increase in payments received in advance in the period;

• (6) Taxes payable increased by 48.62% as compared with the beginning of the year, mainly due to the decrease in the amount retained for added-value tax in the period;

• (7) Other payables decreased by 56.06% as compared with the beginning of the year, mainly due to the accounting adjustment for the funds temporarily received in the earlier stage from the disposal of equity interest in the Luoyang Glass Industrial Co., Ltd. in the period;

• (8) Operating income increased by 96.09% as compared with the corresponding period of last year, mainly due to the increase in both production capacity and sales volume in the period;

— 7 —

• (9) Operating cost increased by 110.46% as compared with the corresponding period of last year, mainly due to the increase in both production capacity and sales volume in the period;

• (10) Business taxes and surcharges increased by 30.31% as compared with the corresponding period of last year, mainly due to the increase in relevant taxes as a result of increase in income in the period;

• (11) Investment income increased by 3,781.64% as compared with the corresponding period of last year, mainly due to the income from disposal of equity interest in Luoyang Glass Industrial Co., Ltd., a subsidiary of the Company, in the period;

• (12) Non-operating income increased by 34.85% as compared with the corresponding period of last year, mainly due to the increase in income from disposal of assets in the period;

• (13) Non-operating expenses decreased by 88.53% as compared with the corresponding period of last year, mainly because the non-operating expenses for the last period contained the loss from disposal of assets;

• (14) Net cash outflow from operating activities decreased by RMB2,235,200 as compared with the corresponding period of last year, mainly due to the receipt of government grant by a subsidiary;

• (15) Net cash inflow from investment activities increased by RMB36,458,400, as compared with the corresponding period of last year, mainly due to the collection of payments in respect of land acquisition for reserve in the period;

• (16) Net cash outflow from financing activities decreased by RMB29,579,500 as compared with the corresponding period of last year, mainly because the net cash outflow from financing activities for the corresponding period of last year contained the net outflow for repayment of advance payment by China Building Materials Glass Company.

— 8 —

3.2 Analysis and explanation of progress and impact of significant events and their solutions

Applicable 3 Not Applicable

3.3 Performance of undertakings of the Company and shareholders holding 5% or more of the Company’s shares

1. During transfer of relevant equity interests, China National Building Materials Group Corporation (“CNBMG”), the de facto controller of the Company, undertook on 11 September 2007 that: CNBMG (including its controlled enterprises by now) would not directly or indirectly involve in any businesses which constitute competition with the Company. In the event that the business opportunities obtained would compete with the operations of the Company, it would notify the Company of such business opportunities. Save as a financial investor, CNBMG would not invest in any businesses which may constitute competition with the operations of the Company, and would take measures to prevent the possibility of substantial competition when continuing to acquire other businesses which have horizontal competition with the Company directly or indirectly under appropriate conditions. In case of violation of the above undertakings, CNBMG would fully indemnify the Company for any loss so caused.

As at the end of the reporting period, CNBMG honored its undertaking.

1. The de facto controller of the Company, CNBMG, undertook on 11 September 2007 when conducting allocation of relevant equity that: “the Company (including the controlled enterprises at present) will avoid and reduce the connected transactions with Luoyang Glass. For the connected transactions inevitable or due to reasonable reasons, the Company undertakes to comply with principles of market impartiality, fairness and openness, and enter into agreements according to laws, perform legal procedures, perform information disclosure obligation and conduct relevant reporting and approving procedures in accordance with relevant requirements, and warrants not to prejudice the legal interests of Luoyang Glass and other shareholders through connected transactions.”

As at the end of the reporting period, CNBMG honored its undertaking.

— 9 —

1. During transfer of relevant equity interests, CBM Glass, the controller of the Company, undertook on 9 December 2010 that: CBM Glass and its controlled enterprises will not directly or indirectly involve in any businesses or activities in competition with the principal operations of the Company, by any means (including but not limited to the independent business, joint venture or having shares or interest in another company or enterprise). In the event that the business opportunities obtained by CBM Glass or its controlled enterprises will compete with the principal operations of the Company, it will notify the Company of those matters as soon as possible and pass such business opportunities to the Company to ensure that there is no prejudice to the interests of the shareholders of the Company as a whole.

As at the end of the reporting period, CBM Glass honored its undertaking.

1. In transferring relevant equity interests, CNBMG, the de facto controllers of the Company, and CBM Glass, undertook on 9 December 2010 that: they would come up with a comprehensive solution to the problem of horizontal competition between the Company and Longxin Company, Fangxing Science & Technology and Zhonglian Glass by way of consolidation in the form of a series of business and asset restructuring with the Company as a platform in the coming three years.

With respect to aforesaid undertakings, CNBM and CNBM Glass also respectively have taken targeting measures to solve relevant horizontal competition problems over the last years. However, relevant undertakings have not been fulfilled according to schedule due to the effect of some factors like macro-economic situation and industry policies, and so on. The company has released the Announcement of Luoyang Glass Company Limited on the Implementation of the Undertakings of Avoiding Horizontal Competition by the Actual Controller and Interested Party on 6 December 2013, disclosing the measures that CNBM and CNBM Glass had taken to implement the undertakings, the reasons for failure to complete the undertakings on time and the commitment of deferring solving horizontal competition and other relevant information in detail. Subsequently, in accordance with the relevant requirements of CSRC, the Company made special disclosure as for the performance and progress of undertakings on 14 February 2014 and 28 March 2014, respectively.

— 10 —

In accordance with related requirements of No. 4 Regulatory Guideline on Listed Companies-Actual Controller, Shareholders, Affiliated Parties, Buyer of Listed Companies and Undertakings and Performance of Undertakings of Listed Companies issued by CSRC, CNBM expressed that it will standardize and update the methods of, deadline for and capacity of performing the undertakings, risks and countermeasures by 27 June 2014.

• 3.4 Warning and explanation in the forecast of any possible loss in accumulated net profit from the beginning of the year to the end of the next reporting period or any material changes compared to the corresponding period of last year

Applicable

3 Not Applicable

Luoyang Glass Company Limited Chairman: Ma Liyun

28 April 2014

— 11 —

Consolidated Balance Sheet

Unit: RMB

Prepared by: Luoyang Glass Company Limited Item Current assets: Bank balance and cash Balances with clearing companies Placements with banks and other financial institutions Held-for-trading financial assets Notes receivable Accounts receivable Prepayments Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Interest receivable Dividends receivable Other receivables Financial assets purchased under resale agreements Inventory Non-current assets due within one year Other current assets Total current assets	31 March 2014 Balance as at the end of the period 151,201,833.63 6,604,275.93 36,822,112.23 17,569,151.13 42,596,459.77 207,564,069.56 462,357,902.25	Unit: RMB Balance as at the beginning of the year 128,509,961.33 39,799,612.49 29,651,547.60 13,806,820.85 81,916,322.40 200,349,541.58 494,033,806.25

— 12 —

Non-current assets: Entrusted loans and advances granted Available-for-sale financial assets Held-to-maturity investments Long-term receivables Long-term equity investments Investment properties Fixed assets Construction in progress Construction materials Disposal of fixed assets Biological assets for production Fuel assets Intangible assets Development expenses Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets Total assets	46,462,247.12 7,000,000.00 625,097,084.75 3,185,993.05 506,186.30 53,654,187.65 2,437,064.61 2,112,887.79 740,455,651.27 1,202,813,553.52	0.00 7,000,000.00 644,340,372.61 2,139,957.20 506,186.30 73,958,045.12 2,437,064.61 2,112,887.79
		732,494,513.63
		1,226,528,319.88

— 13 —

Current liabilities: Short-term loans Loans from central bank Deposit taking and deposit in inter-bank market Placements from banks and other financial institutions Held-for-trading financial liabilities Notes payable Accounts payable Payments received in advance Disposal of repurchased financial assets Handling charges and commissions payable Staff remuneration payables Taxes payable Interest payable Dividends payable Other payables Reinsurance accounts payable Reserve for insurance contracts Customer deposits for trading in securities Customer deposits for underwriting Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term loans Debentures payable Long-term payables Specific payables Accrued liabilities Deferred income tax liabilities Other non-current liabilities Total non-current liabilities	19,951,833.32 150,000,000.00 284,493,630.44 57,937,937.61 59,175,778.59 –4,103,681.80 55,379,269.52 47,612,486.96 670,447,254.64 494,501,095.05 9,791,782.71 504,292,877.76	50,696,833.33 150,000,000.00 282,538,381.85 41,704,096.40 59,538,138.48 –7,987,198.97 126,044,622.62 47,612,486.96
		750,147,360.67
		506,104,010.11 10,179,045.75
		516,283,055.86

— 14 —

Total liabilities

1,174,740,132.40 1,266,430,416.53

Owners’ equity:
Share capital		500,018,242.00			500,018,242.00
Capital reserve		857,450,406.90			857,450,406.90
Less: Treasury stock
Special reserve			403,745.79		367,894.52
Surplus reserve			51,365,509.04		51,365,509.04
General risk provision
Retained earnings	–1,305,406,589.87			–1,375,895,993.77
Currency translation differences
Total equity attributable to the equity holders
of the Company		103,831,313.86			33,306,058.69
Minority interests		–75,757,892.74			–73,208,155.34
Total owners’ equity			28,073,421.12		–39,902,096.65
Total liabilities and shareholders’ equities		1,202,813,553.52			1,226,528,319.88
			Person in charge of
Legal representative:	Chief accountant:		accounting department:
Ma Liyun	Sun Lei			Chen Jing

— 15 —

Balance Sheet of the Company

Prepared by: Luoyang Glass Company Limited Item Current assets: Bank balance and cash Held-for-trading financial assets Notes receivable Accounts receivable Prepayments Interest receivable Dividends receivable Other receivables Inventory Non-current assets due within one year Other current assets Total current assets	31 March 2014 Balance as at the end of the period 100,910,522.62 4,275,377.50 549,975,025.81 3,209,984.45 302,675,624.79 5,787,785.18 966,834,320.35	Unit: RMB Balance as at the beginning of the year 100,484,846.41 37,380,000.00 536,576,422.25 1,099,223.51 291,258,468.88 5,787,785.18 972,586,746.23

— 16 —

Non-current assets: Available-for-sale financial assets Held-to-maturity investments Long-term receivables Long-term equity investments Investment properties Fixed assets Construction in progress Construction materials Disposal of fixed assets Biological assets for production Fuel assets Intangible assets Development expenses Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets Total assets	139,969,000.00 46,462,247.12 52,597,961.54 4,882,545.37 540,000.00 443,778.51 7,024,459.75 251,919,992.29 1,218,754,312.64	139,969,000.00 0.00 92,519,028.76 5,035,983.24 0.00 443,778.51 7,080,505.96
		245,048,296.47
		1,217,635,042.70

— 17 —

Current liabilities: Short-term loans Held-for-trading financial liabilities Notes payable Accounts payable Payments received in advance Staff remuneration payables Taxes payable Interest payable Dividends payable Other payables Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term loans Debentures payable Long-term payables Specific payables Accrued liabilities Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	19,951,833.32 150,000,000.00 82,371,153.58 55,430,123.37 35,780,515.07 1,742,655.93 178,742,449.27 43,463,566.40 567,482,296.94 463,621,095.05 463,621,095.05 1,031,103,391.99	50,696,833.33 150,000,000.00 105,199,176.11 39,196,282.16 35,821,245.04 678,566.99 205,350,299.14 43,463,566.40
		630,405,969.17
		474,504,010.11
		474,504,010.11
		1,104,909,979.28

— 18 —

Owners’ equity:
Share capital		500,018,242.00			500,018,242.00
Capital reserve		891,129,782.23			891,129,782.23
Less: Treasury stock
Special reserve
Surplus reserve			51,365,509.04		51,365,509.04
General risk provision
Retained earnings		–1,254,862,612.62			–1,329,788,469.85
Total owners’ equity		187,650,920.65			112,725,063.42
Total liabilities and shareholders’ equities		1,218,754,312.64			1,217,635,042.70
			Person in charge of
Legal representative:	Chief accountant:		accounting department:
Ma Liyun	Sun Lei			Chen Jing

— 19 —

Consolidated Income Statement

Prepared by: Luoyang Glass Company Limited January to March 2014 Unit: RMB

			January to	January to
Item			March 2014	March 2013
I. Total operating revenue			126,378,728.92	64,450,159.03
	Including: Operating revenue		126,378,728.92	64,450,159.03
		Interest income
		Premiums earned
		Handling charges and
		commission income
II.	Total operating costs		151,888,664.01	93,695,959.53
	Including: Operating costs		116,129,275.50	55,177,864.81
		Interest expenses
		Handling charges and
		commission expenses
		Surrender payment
		Net expenditure for
		compensation payments
		Net provision for insurance
		contracts
		Policyholder dividend expenses
		Reinsurance costs
		Business taxes and surcharges	1,403,782.31	1,077,249.46
		Selling expenses	5,846,805.87	6,561,556.45
		Administration expenses	25,557,007.18	27,880,902.47
		Finance expenses	2,951,793.15	2,998,386.34
		Impairment loss on assets
		Others
	Add:	Gains from changes in fair value
		(losses are represented by“–”)
		Investment income (losses are
		represented by“–”)	93,569,700.70	2,410,572.50
		Including: Gains from investment
		in associates and
		joint ventures
		Gains from currency
		exchange (losses are
		represented by“–”)

— 20 —

III.	Operating profit (loss is represented
	by “–”)	68,059,765.61	–26,835,228.00
	Add: Non-operating income	1,732,234.13	1,284,605.08
	Less: Non-operating expenses	32,706.28	285,184.71
	Including: Net loss from disposal
	of non-current assets
IV.	Total profit (total loss is represented
	by “–”)	69,759,293.46	–25,835,807.63
	Less: Income tax expenses	1,852,720.44	1,684,989.45
V.	Net profit (net loss is represented by “–”)	67,906,573.02	–27,520,797.08
	Including: Net profit attributable to
	the owners of the Company	70,489,403.90	–25,438,985.47
	Minority interests	–2,582,830.88	–2,081,811.61
VI.	Earnings per share:
	(I) Basic earnings per share_(RMB/share)_	0.1410	–0.0509
	(II) Diluted earnings per share
	(RMB/share)	0.1410	–0.0509
VII. Other comprehensive income
VIII. Total comprehensive income		67,906,573.02	–27,520,797.08
	Including: Total comprehensive income
	attributable to owners of the
	Company	70,489,403.90	–25,438,985.47
	Total comprehensive income attributable to
	minority interests	–2,582,830.88	–2,081,811.61
		Person in charge of
	Legal representative: Chief accountant:	accounting department:
	Ma Liyun Sun Lei		Chen Jing

— 21 —

Income Statement of the Company

Prepared by: Luoyang Glass Company Limited January to March 2014 Unit: RMB

			January to	January to
Item			March 2014	March 2013
I.	Operating revenue		124,895,139.38	54,425,689.99
	Less:	Operating costs	122,793,938.29	53,561,295.78
		Business taxes and surcharges	231,048.65	348,783.26
		Selling expenses	852,115.09	380,406.80
		Administration expenses	5,067,250.16	7,645,220.85
		Finance expenses	–1,168,375.92	283,428.35
		Impairment loss on assets
		Others
	Add:	Gains from changes in fair value
		Investment income	77,554,019.11	5,719,809.39
		Including: Gains from investment
		in associates and joint
		ventures
		Gains from currency
		exchange (losses are
		represented by“–”)
II.	Operating Profit		74,673,182.22	–2,073,635.66
	Add:	Non-operating income	268,903.85	215,340.18
	Less:	Non-operating expenses	16,228.84	197,425.21
		Including: Net loss from disposal
		of non-current assets
III.	Total	profit	74,925,857.23	–2,055,720.69
	Less:	Income tax expenses
IV.	Net profit		74,925,857.23	–2,055,720.69

— 22 —

V. Earnings per share

(I) Basic earnings per share (RMB/share)

(II) Diluted earnings per share (RMB/share)

VI. Other comprehensive income VII. Total comprehensive income 74,925,857.23 –2,055,720.69 Person in charge of Legal representative: Chief accountant: accounting department: Ma Liyun Sun Lei Chen Jing

74,925,857.23 –2,055,720.69

— 23 —

Consolidated Cash Flow Statement

Prepared by: Luoyang Glass Company Limited	Prepared by: Luoyang Glass Company Limited	January to March 2014	Unit: RMB
		January to	January to
Item		March 2014	March 2013
I.	Cash flows from operating activities:
	Cash received from sale of goods or
	rendering of services	59,670,356.73	37,860,851.87
	Net increase in customer and interbank
	deposits
	Net increase in loans from central bank
	Net increase in loans from other financial
	institutions
	Cash received from premiums under original
	insurance contract
	Net cash received from reinsurance business
	Net increase in deposits of policy holders and
	investment
	Net increase in disposal of held-for-trading
	financial assets
	Cash received from interest, handling charges
	and commissions
	Net increase in loans
	Net increase in income from repurchase
	business
	Tax rebates
	Other cash received from activities related to
	operation	6,180,242.17	3,441,589.59
	Sub-total of cash inflow from operating
	activities	65,850,598.90	41,302,441.46

— 24 —

Cash paid for goods purchased and services rendered Net increase in loans and advances from customers Net increase in deposits with central bank and interbank deposits Cash paid for compensation payments under original insurance contracts Cash paid for interest, handling charges and commissions Cash paid for insurance policy dividend Cash paid to and on behalf of employees Tax payments Other cash paid for activities related to operation Sub-total of cash outflow from operating activities Net cash flow from operating activities II. Cash flow from investment activities: Cash received from disposal of investment Cash received from return of investments Net cash received from disposal of fixed assets, intangible assets and other long term assets Net cash received from disposal of subsidiaries and other operating entities Other cash received from activities related to investment Sub-total of cash inflow from investment activities	38,207,364.53 17,362,760.95 10,005,765.41 4,774,033.53 70,349,924.42 –4,499,325.52 4,000,000.00 38,043,000.00 42,043,000.00	16,126,433.31 16,543,737.01 9,165,600.88 6,201,217.00
		48,036,988.20
		–6,734,546.74
		2,410,572.50 570,000.00 3,458.00
		2,984,030.50

— 25 —

Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net increase in pledged loans Net cash paid for acquisition of subsidiaries and other operating entities Other cash paid for activities related to investment Sub-total of cash outflow from investment activities Net cash flow from investment activities III. Cash flow from financing activities: Cash received from investments Including: Proceeds received by subsidiaries from minority shareholders’investment Proceeds from loans Cash received from issuing bonds Other cash received from financing-related activities Sub-total of cash inflow from financing activities Cash paid for repayment of loans Cash paid for dividends, profit, or interest payments Including: Dividend and profit paid by subsidiaries to minority shareholders Other cash paid for financing-related activities Sub-total of cash outflow from financing activities Net cash flow from financing activities	171,970.00 5,000,000.00 5,171,970.00 36,871,030.00 0.00 161,764,007.12 161,764,007.12 11,694,118.18 159,750,800.00 171,444,918.18 –9,680,911.06	2,571,417.46 0.00
		2,571,417.46
		412,613.04
		20,000,000.00 166,635,209.60
		186,635,209.60
		26,683,817.65 211,827.63 199,000,000.00
		225,895,645.28
		–39,260,435.68

— 26 —

IV.	Effects of changes in exchange rate on
	cash and cash equivalents	1,078.88	–332.64
V.	Net increase in cash and cash equivalents	22,691,872.30	–45,582,702.02
	Add: Opening balance of cash and cash
	equivalents	28,316,110.10	55,805,556.06
VI.	Closing balance of cash and cash equivalents	51,007,982.40	10,222,854.04
		Person in charge of
	Legal representative: Chief accountant:	accounting department:
	Ma Liyun Sun Lei		Chen Jing

— 27 —

Cash Flow Statement of the Company

Prepared by: Luoyang Glass Company Limited Item I. Cash flow from operating activities: Cash received from sale of goods and provision of services Tax rebates Other cash received from activities related to operation Sub-total of cash inflow from operating activities Cash paid for goods purchased and service rendered Cash paid to and on behalf of employees Tax payments Other cash paid for activities related to operation Sub-total of cash outflow from operating activities Net cash flow from operating activities

January to March 2014 Unit: RMB January to March 2014 January to March 2013 54,912,370.26 20,254,221.68 127,103,815.90 151,546,375.05 182,016,186.16 171,800,596.73 1,476,980.85 15,869,084.35 5,073,602.30 4,566,348.42 1,153,712.43 691,540.56 109,956,175.07 69,556,760.22 117,660,470.65 90,683,733.55 64,355,715.51 81,116,863.18

— 28 —

II. Cash flow from investment activities: Cash received from disposal of investments Cash received from return of investments Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating entities Other cash received from activities related to investment Sub-total of cash inflow from investment activities Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net cash paid for acquisition of subsidiaries and other operating entities Other cash paid for activities related to investment Sub-total of cash outflow from investment activities Net cash flow from investment activities	4,000,000.00 38,043,000.00 42,043,000.00 5,000,000.00 5,000,000.00 37,043,000.00	0.00 570,000.00
		570,000.00
		0.00
		0.00
		570,000.00

— 29 —

III.	Cash flow from financing activities:	Cash flow from financing activities:	Cash flow from financing activities:
	Cash received from investments
	Proceeds from loans				20,000,000.00
	Cash received from issuing bonds
	Other cash received from activities		related to
	financing				10,000,000.00 58,307,222.09
	Sub-total of cash inflow from	financing
	activities				10,000,000.00 78,307,222.09
	Cash paid for repayment of loans				10,974,118.18 25,963,817.65
	Cash paid for dividends, profit,
	or interest payment				0.00 211,827.63
	Other cash paid for financing-related
	activities			100,000,000.00 134,000,000.00
	Sub-total of cash outflow from financing
	activities			110,974,118.18 160,175,645.28
	Net cash flow from financing	activities		–100,974,118.18 –81,868,423.19
IV.	Effects of changes in exchange rate on
	cash and cash equivalents				1,078.88 –332.64
V.	Net increase in cash and cash	equivalents			425,676.21 –181,892.65
	Add: Opening balance of cash and
	cash equivalents				398,991.55 205,919.60
VI.	Closing balance of cash and
	cash equivalents				824,667.76 24,026.95
					Person in charge of
	Legal representative:	Chief accountant:			accounting department:
	Ma Liyun		Sun Lei		Chen Jing

— 30 —

By order of the Board of Luoyang Glass Company Limited* Ma Liyun

Chairman

Luoyang, the PRC 28 April 2014

As at the date of this announcement, the Board comprises four executive Directors: Mr. Ma Liyun, Mr. Ni Zhisen, Ms. Sun Lei and Mr. Xie Jun; three non-executive Directors: Mr. Zhang Chengong, Mr. Guo Yimin and Mr. Zhang Chong; and three independent nonexecutive Directors: Mr. Huang Ping, Mr. Dong Jiachun and Mr. Liu Tianni.

• For identification purposes only

— 31 —