RoboSense Technology Co., Ltd — Interim / Quarterly Report 2018

Oct 30, 2018

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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THIRD QUARTERLY REPORT 2018

I. 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 the information contained in this quarterly report is true, accurate, and complete without any false and misleading statements or material omissions, and severally and jointly accept legal responsibility for the above.

• 1.2 All Directors attended the Board meeting to consider this quarterly report of the Company.

• 1.3 Zhang Chong, Person-in-charge of the Company, Ma Yan, Person-in-charge of accounting, and Chen Jing, Person-in-charge of accounting institution (head of accounting department), warrant that the financial statements in this quarterly report are true, accurate and complete.

• 1.4 This third quarterly report of the Company is unaudited.

• For identification purposes only

– 1 –

II. BASIC INFORMATION OF THE COMPANY

2.1 Major Financial Data

Unit: yuan Currency: RMB

				Increase/decrease
				at the end of the
		At the end of the previous year		reporting period
				as compared with
	At the end of the	After the	Before the	the end of the
	reporting period	adjustment	adjustment	previous year
				(%)
Total assets	4,042,279,073.91	3,998,223,959.03	1,373,132,245.83	1.10
Net assets attributable to
shareholders of the Company	1,243,172,199.57	1,131,687,647.58	559,139,146.36	9.85
	From beginning	From beginning of the previous
	of the year to	year to the end	of the reporting
	the end of the	period of the	previous year
	reporting period	(January to	September)	Year-on-year
	(January to	After the	Before the	increase/
	September)	adjustment	adjustment	decrease
				(%)
Net cash flows from operating activities	-129,421,564.68	-252,820,793.34	-28,226,880.48	N/A

– 2 –

	From beginning	From beginning	of the previous
	of the year to	year to the end of the reporting
	the end of the	period of the previous year
	reporting period	(January to	September)	Year-on-year
	(January to	After the	Before the	increase/
	September)	adjustment	adjustment	decrease
				(%)
Operating income	1,010,046,101.54	1,096,217,617.07	261,438,363.61	-7.86
Net profit attributable to	2,445,374.15	39,603,334.87	569,179.05	-93.83
shareholders of the Company
Net profit attributable to shareholders	-25,088,831.79	-19,578,380.26	-19,578,380.26	N/A
of the Company after deducting
extraordinary profit or loss
Weighted average	0.20	3.78	0.11	Decreased by
return on net assets (%)				3.58 percentage
				points
Basic earnings per share (RMB/share)	0.0044	0.0715	0.0011	-93.85
Diluted earnings per share (RMB/share)	0.0044	0.0715	0.0011	-93.85

The Company completed a significant asset restructuring during the reporting period, it incorporated Hefei New Energy, Tongcheng New Energy and Yixing New Energy into its consolidated statements as business combinations under common control and restated its comparative figures retrospectively. All the financial figures for the beginning of the reporting period and the same period of last year were represented by the adjusted ones.

– 3 –

Extraordinary Items and Amounts

✓ Applicable Not applicable

Unit: yuan Currency: RMB

Items Gain or loss from disposal of non- current assets 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) Profit or loss from debt restructuring Net profit or loss for the period of subsidiaries formed by business combination under common control from the beginning of the period to the date of combination Other non-operating income and expenses excluding the aforesaid items Effect of minority interests (after tax) Effect of income tax Total	Amount for the current period (July– September) 792,372.56 9,489,887.03 55,898.60 -11,303.73 -743,369.51 -998,977.63 8,584,507.32	Amount for the period from the beginning of the year to the end of the reporting period (January to September) Explanation 923,447.71 12,939,349.38 315,560.13 20,491,900.89 -63,158.40 -5,689,785.62 -1,383,108.15 27,534,205.94

– 4 –

• 2.2 Total number of shareholders, shareholdings of top 10 shareholders and top 10 holders of circulating shares (or holders of shares not subject to trading moratorium) as at the end of the reporting period

Unit: Share

• Total number of 53,726 shareholders (including 53,681 holders of shareholders A shares and 45 holders of H shares)

Shareholdings of the top 10 shareholders

	Number of		Number
	shares held as		of shares
	at the end of		held subject	Pledged or frozen
Name of shareholders	the reporting	Shareholding	to trading	Status of		Nature of
(full name)	period	percentage	moratorium	shares	Number	shareholder
		(%)
HKSCC NOMINEES LIMITED	248,730,699	44.43	0	Nil	0	Overseas legal
						person
China Luoyang Float Glass	115,115,830	20.56	25,097,588	Pledged	41,000,000	State-owned legal
(Group) Company Limited						person
(CNBM) Bengbu Design &	71,365,976	12.75	2,365,976	Nil	0	State-owned legal
Research Institute for Glass						person
Industry Co., Ltd.
Triumph Science & Technology	7,508,991	1.34	7,508,991	Nil	0	State-owned legal
Co., Ltd.						person
Anhui Huaguang Photoelectricity	6,377,490	1.14	6,377,490	Nil	0	State-owned legal
Materials Technology Group						person
Co., Ltd.
Hefei Gaoxin Development and	3,029,276	0.54	3,029,276	Nil	0	State-owned legal
Investment Group Company*						person
Yixing Environmental	1,877,247	0.34	1,877,247	Nil	0	State-owned legal
Technology Innovation						person
Venture Investment Company
Limited* (宜興環保科技創
新創業投資有限公司)
GCL System Integration	1,065,338	0.19	1,065,338	Nil	0	Domestic non-
Technology Co., Ltd. (協鑫						state-owned
集成科技股份有限公司)						legal person
Wang Jinnan (王進南)	808,690	0.14	0	Nil	0	Domestic natural
						person
China Triumph International	708,610	0.13	708,610	Nil	0	Domestic non-
Engineering Co., Ltd. (中國						state-owned
建材國際工程集團有限						legal person
公司)

– 5 –

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

	Number of
	circulating
	shares held not	Class and number of shares
	subject to trading
Name of shareholders	moratorium	Class	Number
HKSCC NOMINEES LIMITED	248,730,699	Overseas listed foreign	248,730,699
		shares
China Luoyang Float Glass (Group)	90,018,242	Ordinary shares	90,018,242
Company Limited		denominated in RMB
(CNBM) Bengbu Design & Research	69,000,000	Ordinary shares	69,000,000
Institute for Glass Industry Co., Ltd.		denominated in RMB
Wang Jinnan(王進南)	808,690	Ordinary shares	808,690
		denominated in RMB
Hong Kong Securities Clearing	399,403	Domestic listed foreign	399,403
Company Limited		shares
Zhao Fenfei(趙奮飛)	368,300	Ordinary shares	368,300
		denominated in RMB
Yin Tierong	286,000	Ordinary shares	286,000
		denominated in RMB
Zhao Shengqi	284,100	Ordinary shares	284,100
		denominated in RMB
Jin Ruiming	280,294	Ordinary shares	280,294
		denominated in RMB
Zhao Yueling	278,800	Ordinary shares	278,800
		denominated in RMB

Explanation on connected Among the top 10 shareholders of the Company, China Luoyang relationship or parties acting Float Glass (Group) Company Limited, Bengbu Design & in concert among the aforesaid Research Institute for Glass Industry Co., Ltd., Anhui Huaguang shareholders Photoelectricity Materials Technology Group Co., Ltd., Triumph Science & Technology Co., Ltd. and China Triumph International Engineering Co., Ltd. are related parties or persons acting in concert as defined under the 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」）. The Company is not aware of any parties acting in concert or any related relationship among other holders of circulating shares.

Notes:

1. Shares held by HKSCC NOMINEES LIMITED are held on behalf of various customers.

2. The ordinary shares dominated in Renminbi held by Hong Kong Securities Clearing Company Limited are held on behalf of overseas investors who held these shares via Northbound Trading in the Shanghai-Hong Kong Stock Connect.

– 6 –

• 2.3 Total number of holders of preferential shares, shareholdings of top 10 holders of preferential shares and top 10 holders of preferential shares not subject to trading moratorium as at the end of the reporting period

Applicable ✓ Not applicable

III. SIGNIFICANT EVENTS

• 3.1 Details of and reasons for material changes in the major financial statement items and financial indicators of the Company

	✓	Applicable		Not	applicable
					Amount at the
			Amount at	the	beginning of the
Item			end of the period		period	Changes	Explanation
						(%)
Prepayments			45,104,555.66		20,321,794.16	121.95	Mainly due to increase in
							prepayments for raw material and
							fuel
Other		receivables	56,216,032.14		90,685,860.01	-38.01	Mainly due to recovery of deposit
							for the land during the reporting
							period
Inventories			270,152,048.58		180,924,918.81	49.32	Mainly due to increase in inventories
							of products
Construction in			487,136,614.00		282,018,299.91	72.73	Mainly due to increase in investment
	progress						in new projects
Long-term deferred			3,823,794.58		5,539,138.34	-30.97	Mainly due to amortisation of
	expenses						handling charges for finance
							leasing
Deferred income tax			4,410,246.35		2,504,761.54	76.07	Mainly due to the effect of change
	assets						arising from the adjustment to
							expected credit loss following the
							change in accounting policies
Taxes		payable	18,204,745.11		31,525,000.52	-42.25	Mainly due to decrease in income
							tax payable

– 7 –

	Amount from the
	beginning of the
	year to the end	Amount for the
	of the reporting	same period last
Item	period	year	Changes	Explanation
			(%)
Credit impairment losses	-4,173,671.55		-100.00	Mainly due to the recovery of
				receivables
Other income	12,735,449.53	28,360,135.73	-55.09	Mainly due to the year-on-year
				decrease in government subsidies
				related to daily activities
Non-operating income	7,539,476.33	2,669,768.90	182.40	Mainly due to the year-on-year
				increase in government subsidies
Income tax expenses	8,923,374.38	17,430,694.27	-48.81	Mainly due to the year-on-year
				decrease in total profit
Net cash flows from	-129,421,564.68	-252,820,793.34	N/A	Mainly due to increase in cash
operating activities				received for sale of goods and
				rendering of services
Net cash flow from	-104,391,351.20	-9,052,488.03	N/A	Mainly due to increase in
investment activities				investment in projects

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

✓ Applicable Not applicable

The procedures for the transfer and delivery of the target assets, and the registration and listing of the new shares in respect of the assets acquisition by issuance of shares under the significant asset restructuring were completed. As for the issuance of shares for supporting fundraising that may subsequently be implemented according to the stock market and actual situation of the Company, disclosure on the progress will be made in due time pursuant to relevant requirements.

3.3 Overdue undertakings not fully performed during the reporting period

Applicable ✓ Not applicable

• 3.4 The warning of projection on cumulative net profit for the period from the beginning of the year to the end of the next reporting period to be at a loss or expected to have material changes as compared to the corresponding period of prior year and its explanation

Applicable ✓ Not applicable

– 8 –

IV. APPENDIX

4.1 Financial Statements

Consolidated Balance Sheet

30 September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

Item Current assets: Bank balance and cash Bills and accounts receivable Including: Bills receivables Accounts receivable Prepayments Other receivables Inventories Other current assets Total current assets	Balance as at the end of the period 237,682,759.34 782,784,767.78 288,871,758.92 493,913,008.86 45,104,555.66 56,216,032.14 270,152,048.58 32,980,498.17 1,424,920,661.67	Balance as at the beginning of the year 204,245,757.54 1,022,562,666.40 490,712,129.45 531,850,536.95 20,321,794.16 90,685,860.01 180,924,918.81 41,988,762.45 1,560,729,759.37

– 9 –

Item Non-current assets: Long-term receivables Long-term equity investment Fixed assets Construction in progress Intangible assets Development expenditures Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Bills and accounts payable Receipts in advance Contract liabilities Employee compensation payable Taxes payable Other payables Including: Interest payable Dividend payable Non-current liabilities due within one year Other current liabilities Total current liabilities	Balance as at the end of the period 55,000,000.00 1,696,691,669.12 487,136,614.00 358,923,683.80 9,697,904.39 3,823,794.58 4,410,246.35 1,674,500.00 2,617,358,412.24 4,042,279,073.91 871,834,000.00 810,321,286.44 24,203,227.97 16,490,159.35 18,204,745.11 333,858,172.81 3,910,626.66 160,278,709.83 2,235,190,301.51	Balance as at the beginning of the year 55,000,000.00 1,766,535,573.58 282,018,299.91 317,529,993.66 5,539,138.34 2,504,761.54 8,366,432.63 2,437,494,199.66 3,998,223,959.03 812,509,000.00 711,594,663.17 21,475,187.43 21,985,112.19 31,525,000.52 377,009,364.49 3,418,456.33 196,946,248.22 2,173,044,576.02

– 10 –

	Balance as at		Balance as at
	the end of the		the beginning
Item	period		of the year
Non-current liabilities:
Long-term borrowings	355,621,063.68		370,796,745.65
Deferred income	109,796,414.67		108,193,683.26
Total non-current liabilities 465,417,478.35			478,990,428.91
Total Liabilities	2,700,607,779.86		2,652,035,004.93
Owners’ equity (or shareholders’ equity)
Paid-in capital (or share capital) 559,797,391.00			526,766,875.00
Capital reserve	1,979,561,502.32		1,891,845,868.90
Surplus reserve	51,365,509.04		51,365,509.04
Undistributed profit	-1,347,552,202.79	-1,338,290,605.36
Total owners’ equity attributable to
owners of the Company	1,243,172,199.57		1,131,687,647.58
Minority interests	98,499,094.48		214,501,306.52
Total owners’ equity
(or shareholders’ equity) 1,341,671,294.05			1,346,188,954.10
Total liabilities and owners’ equity
(or shareholders’ equity)	4,042,279,073.91		3,998,223,959.03
	Person in charge of Person in charge of
Legal representative:	accounting: accounting department:
Zhang Chong	Ma Yan Chen Jing

– 11 –

Balance Sheet of the Company 30 September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

Item Current assets: Bank balance and cash Bills and accounts receivable Including: Bills receivables Accounts receivable Prepayments Other receivables Other current assets Total current assets Non-current assets: Long-term receivables Long-term equity investment Fixed assets Intangible assets Long-term deferred expenses Total non-current assets Total assets	Balance as at the end of the period 90,698,729.92 208,691,465.53 7,301,763.29 201,389,702.24 79,938.00 80,651,819.61 380,121,953.06 55,000,000.00 1,690,841,658.35 2,255,764.03 34,567,235.44 81,000.00 1,782,745,657.82 2,162,867,610.88	Balance as at the beginning of the year 52,744,789.07 211,797,338.88 7,469,611.05 204,327,727.83 30,238.87 31,131,296.66 489,663.39 296,193,326.87 55,000,000.00 868,986,593.99 2,508,762.95 63,612,709.86 162,000.00 990,270,066.80 1,286,463,393.67

– 12 –

Item Current liabilities: Short-term borrowings Bills and accounts payable Receipts in advance Contract liabilities Employee compensation payable Taxes payable Other payables Non-current liabilities due within one year Total current liabilities Non-current liabilities: Long-term borrowings Total non-current liabilities Total Liabilities	Balance as at the end of the period 236,634,000.00 144,034,557.48 10,384,482.48 4,887,049.47 597,000.76 549,406,034.88 658,460.51 946,601,585.58 946,601,585.58	Balance as at the beginning of the year 347,509,000.00 5,062,801.26 7,813,062.37 8,089,982.67 566,122.59 465,853,312.43 404,406.94 835,298,688.26 606,605.65 606,605.65 835,905,293.91

– 13 –

			Balance as at	Balance as at
			the end of the	the beginning of
Item			period	the year
Owners’ equity (or shareholders’ equity)
Paid-in capital (or share capital)		559,797,391.00		526,766,875.00
Capital reserve		1,958,137,769.14		1,268,692,769.04
Surplus reserve			51,365,509.04	51,365,509.04
Undistributed profit	-1,353,034,643.88			-1,396,267,053.32
Total owners’ equity
(or shareholders’ equity)		1,216,266,025.30		450,558,099.76
Total liabilities and owners’ equity
(or shareholders’ equity)		2,162,867,610.88		1,286,463,393.67
	Person in charge of		Person in charge of
Legal representative:	accounting:		accounting department:
Zhang Chong	Ma Yan		Chen Jing

– 14 –

Consolidated Income Statement January to September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

						Amount from the
						beginning of the
					Amount from	previous year to
					the beginning	the end of the
					of the year to	reporting period
			Amount for the	Amount for the	the end of the	of the
			current period	corresponding	reporting period	previous year
			(July–	period last year	(January–	(January–
Item			September)	(July–September)	September)	September)
I.	Total operating revenue		307,683,710.80	391,757,734.37	1,010,046,101.54	1,096,217,617.07
	Including:	Operating revenue	307,683,710.80	391,757,734.37	1,010,046,101.54	1,096,217,617.07
II.	Total operating costs		341,938,833.53	363,487,997.50	1,013,737,360.14	1,059,369,219.69
	Including:	Operating costs	272,708,609.06	289,576,607.36	791,332,516.43	838,502,531.77
		Taxes and surcharges	5,253,120.83	4,391,113.93	15,965,606.75	13,570,746.13
		Selling expenses	11,722,341.72	13,002,350.55	33,646,307.55	41,056,029.18
		Administrative expenses	19,157,618.17	21,850,180.09	65,678,911.55	67,121,434.50
		Research and development
		expenses	11,921,571.38	14,692,371.00	50,364,853.05	43,375,932.88
		Financial expenses	21,175,572.37	19,975,374.57	60,915,987.17	54,934,910.75
		Including: Interest expenses	15,868,991.42	20,064,496.62	48,611,676.26	51,955,265.46
		Interest income	422,562.19	208,110.71	721,863.65	931,180.38
		Impairment losses of assets			6,849.19	807,634.48
		Impairment losses of credit			-4,173,671.55
	Add:	Other income	5,614,467.06	5,434,602.26	12,735,449.53	28,360,135.73
		Investment income (loss is
		represented by “-”)
		Gain on disposal of assets (loss is
		represented by “-”)	792,372.56		923,447.71	83,418.35
		Exchange gain (loss is
		represented by “-”)

– 15 –

					Amount from the
					beginning of the
				Amount from	previous year to
				the beginning	the end of the
				of the year to	reporting period
		Amount for the	Amount for the	the end of the	of the
		current period	corresponding	reporting period	previous year
		(July–	period last year	(January–	(January–
Item		September)	(July–September)	September)	September)
III.	Operating profit (loss is represented
	by “-”)	-27,848,283.11	33,704,339.13	9,967,638.64	65,291,951.46
	Add: Non-operating income	5,764,195.60	391,993.31	7,539,476.33	2,669,768.90
	Less: Non-operating expense	11,583.73		222,958.45	236,378.61
IV.	Total profit (total loss is
	represented by “-”)	-22,095,671.24	34,096,332.44	17,284,156.52	67,725,341.75
	Less: Income tax expenses	-2,216,504.85	8,079,447.29	8,923,374.38	17,430,694.27
V.	Net profit (net loss is represented by “-”)	-19,879,166.39	26,016,885.15	8,360,782.14	50,294,647.48
	(I) Classified on a going concern basis
	1. N et profit from continuing
	operation (Net loss is represented
	by “-”)	-19,879,166.39	26,016,885.15	8,360,782.14	50,294,647.48
	2. N et profit from discontinued
	operation (Net loss is represented
	by “-”)
	(II) Classified by ownership
	1. N et profit attributable to the owners
	of the Company	-19,532,296.88	19,869,396.64	2,445,374.15	39,603,334.87
	2. P rofit or loss attributable to
	minority interests	-346,869.51	6,147,488.51	5,915,407.99	10,691,312.61

VI. Other comprehensive income, net of tax

– 16 –

					Amount from the
					beginning of the
				Amount from	previous year to
				the beginning	the end of the
				of the year to	reporting period
		Amount for the	Amount for the	the end of the	of the
		current period	corresponding	reporting period	previous year
		(July–	period last year	(January–	(January–
Item		September)	(July–September)	September)	September)
VII.	Total comprehensive income	-19,879,166.39	26,016,885.15	8,360,782.14	50,294,647.48
	Total comprehensive income
	attributable to owners of the Company	-19,532,296.88	19,869,396.64	2,445,374.15	39,603,334.87
	Total comprehensive income
	attributable to minority interests	-346,869.51	6,147,488.51	5,915,407.99	10,691,312.61
VIII.	Earnings per share:
	(I) Basic earnings per share (RMB/share)	-0.0351	0.0359	0.0044	0.0715
	(II) Diluted earnings per share
	(RMB/share)	-0.0351	0.0359	0.0044	0.0715

For the business combination under common control in the reporting period, the net profit realized by the combined party(ies) before the combination was RMB20,491,900.89, and the net profit realized by the combined party(ies) in the corresponding period last year was RMB49,725,468.43.

Person in charge of Person in charge of Legal representative: accounting: accounting department: Zhang Chong Ma Yan Chen Jing

– 17 –

Income Statement of the Company

January – September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

					Amount from the
					beginning of the
				Amount from	previous year to
				the beginning	the end of the
				of the year to	reporting period
		Amount for the	Amount for the	the end of the	of the
		current period	corresponding	reporting period	previous year
		(July–	period last year	(January–	(January–
Item		September)	(July–September)	September)	September)
I.	Operating revenue	35,754,939.80	66,316,501.31	130,975,415.58	138,755,254.26
	Less: Operating costs	35,178,624.59	63,624,990.72	128,446,844.20	135,877,816.05
	Taxes and surcharges	385,306.67	360,070.17	2,193,380.72	761,346.47
	Selling expenses	99,521.74	127,346.34	389,344.50	346,004.31
	Administrative expenses	3,235,935.08	5,224,171.99	11,067,796.45	4,085,002.41
	Research and development expenses
	Financial expenses	6,748,842.91	7,192,775.59	22,010,853.08	18,263,562.04
	Including: Interest expenses	7,493,204.10	7,524,022.93	23,369,591.54	19,148,051.16
	Interest income	1,170,130.26	357,081.18	1,860,405.06	1,067,745.68
	Impairment losses of assets				600,521.20
	Impairment losses of credit			-614,549.07
	Add: Other income
	Investment income (loss is
	represented by “-”)	5,433,173.99	2,800,159.39	69,990,946.90	8,315,524.31
	Among which: G ains from investment
	in associates and
	joint ventures
	Income from net exposure hedges
	(loss is represented by “-”)
	Gain from changes in fair value (loss is
	represented by “-”)
	Gain on disposal of assets (loss is
	represented by “-”)			1,181,645.71

– 18 –

					Amount from the
					beginning of the
				Amount from	previous year to
				the beginning	the end of the
				of the year to	reporting period
		Amount for the	Amount for the	the end of the	of the
		current period	corresponding	reporting period	previous year
		(July–	period last year	(January–	(January–
Item		September)	(July–September)	September)	September)
II.	Operating profit (loss is represented
	by “-”)	-4,460,117.20	-7,412,694.11	38,654,338.31	-12,863,473.91
	Add: Non-operating income	4,886,631.05		5,097,666.19	1,036,395.35
	Less: Non-operating expense			52,054.86	200,506.12
III.	Total profit (total loss is represented
	by “-”)	426,513.85	-7,412,694.11	43,699,949.64	-12,027,584.68
	Less: Income tax expenses
IV.	Net profit (net loss is represented by “-”)	426,513.85	-7,412,694.11	43,699,949.64	-12,027,584.68
	(I) Net profit from continuing operation
	(Net loss is represented by “-”)	426,513.85	-7,412,694.11	43,699,949.64	-12,027,584.68
	(II) Net profit from discontinued operation
	(Net loss is represented by “-”)
V.	Other comprehensive income, net of tax
VI.	Total comprehensive income	426,513.85	-7,412,694.11	43,699,949.64	-12,027,584.68

VI. Total comprehensive income

VII. Earnings per share:

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

• (II) Diluted earnings per share

(RMB/share)

Person in charge of Person in charge of Legal representative: accounting: accounting department: Zhang Chong Ma Yan Chen Jing

– 19 –

Consolidated Cash Flow Statement

January – September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

Item I. Cash flow from operating activities: Cash received from sale of goods or rendering of services Other cash received from activities related to operation Sub-total of cash inflow from operating activities Cash paid for goods purchased and services received 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	Amount from the beginning of the year to the end of the reporting period (January– September) 695,028,592.64 37,654,351.67 732,682,944.31 639,412,901.03 137,442,887.50 58,483,431.25 26,765,289.21 862,104,508.99 -129,421,564.68	Amount from the beginning of the previous year to the end of the reporting period of the previous year (January– September) 346,203,005.95 29,199,139.97 375,402,145.92 403,976,068.51 146,889,293.50 43,725,578.25 33,631,999.00 628,222,939.26 -252,820,793.34

– 20 –

Item II. Cash flow from investment activities: 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 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: C ash received by subsidiaries from minority shareholders’ investment Proceeds from loans Cash received from issuance of bonds Other cash received from financing- related activities Sub-total of cash inflow from financing activities	Amount from the beginning of the year to the end of the reporting period (January– September) 18,117,140.63 18,117,140.63 122,508,491.83 122,508,491.83 -104,391,351.20 742,200,000.00 457,335,336.43 1,199,535,336.43	Amount from the beginning of the previous year to the end of the reporting period of the previous year (January– September) 2,348,600.00 23,798,268.89 26,146,868.89 35,199,356.92 35,199,356.92 -9,052,488.03 821,654,000.00 419,512,700.40 1,241,166,700.40

– 21 –

					Amount from
					the beginning of
				Amount from	the previous year
			the beginning of		to the end of
				the year to	the reporting
				the end of the	period of the
			reporting period		previous year
				(January–	(January–
Item				September)	September)
Cash paid for repayment of loans			722,448,495.67		637,622,895.57
Cash paid for dividends, profit, or interest
payments				48,448,283.90	36,741,095.85
Including: Dividend and profit paid by
subsidiaries to minority
shareholders
Other cash paid for financing-related
activities			272,592,292.16		405,469,454.26
Sub-total of cash outflow from
financing activities			1,043,489,071.73		1,079,833,445.68
Net cash flow from financing activities			156,046,264.70		161,333,254.72
IV. Effects of changes in	exchange rate
on cash and cash equivalents				106,587.22	7,912.24
V. Net increase in cash and cash
equivalents			-77,660,063.96		-100,532,114.41
Add: O pening balance	of cash and cash
equivalents			198,797,788.08		191,575,911.27
VI. Closing balance of cash and cash
equivalents			121,137,724.12		91,043,796.86
	Person in charge		of	Person in charge of
Legal representative:	accounting:			accounting department:
Zhang Chong	Ma Yan			Chen Jing

– 22 –

Cash Flow Statement of the Company January – September 2018

Prepared by: Luoyang Glass Company Limited*

Unit: yuan Currency: RMB Type of audit: unaudited

Item I. Cash flow from operating activities: Cash received from sale of goods or rendering of services Other cash received from activities related to operation Sub-total of cash inflow from operating activities Cash paid for goods purchased and services received 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	Amount from the beginning of the year to the end of the reporting period (January– September) 67,311,676.51 40,346,016.54 107,657,693.05 10,916,348.99 5,141,155.42 46,439,305.48 62,496,809.89 45,160,883.16	Amount from the beginning of the previous year to the end of the reporting period of the previous year (January– September) 62,006,009.32 37,570,255.20 99,576,264.52 1,086,900.00 9,387,306.23 1,051,391.90 105,188,358.49 116,713,956.62 -17,137,692.10

– 23 –

Item II. Cash flow from investment activities: Cash from recovery of investment Cash received from investment income Net cash received from disposal of fixed assets, intangible assets and other long- term assets 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 III. Cash flow from financing activities: Cash received from investments Proceeds from loans Other cash received from financing- related activities Sub-total of cash inflow from financing activities	Amount from the beginning of the year to the end of the reporting period (January– September) 3,129,244.82 18,117,140.63 21,246,385.45 70,000,000.00 70,000,000.00 -48,753,614.55 235,084,000.00 736,675,989.97 971,759,989.97	Amount from the beginning of the previous year to the end of the reporting period of the previous year (January– September) 400,000.00 43,164,222.88 43,564,222.88 3,360,750.60 80,000,000.00 83,360,750.60 -39,796,527.72 262,654,000.00 759,853,947.99 1,022,507,947.99

– 24 –

					Amount from the
					beginning of the
				Amount from	previous year to
				the beginning	the end of
				of the year to	the reporting
				the end of the	period of the
			reporting period		previous year
				(January–	(January–
Item				September)	September)
Cash paid for repayment of loans			346,334,603.35		295,494,384.61
Cash paid for dividends, profit, or
interest payments				8,798,014.65	9,652,811.34
Other cash paid for financing-related
activities			635,081,023.64		712,662,411.76
Sub-total of cash outflow from
financing activities			990,213,641.64		1,017,809,607.71
Net cash flow from financing activities			-18,453,651.67		4,698,340.28
IV. Effects of changes in	exchange rate
on cash and cash equivalents				323.91	-329.97
V. Net increase in cash and cash
equivalents			-22,046,059.15		-52,236,209.51
Add: O pening balance	of cash and cash
equivalents				51,344,789.07	64,837,249.29
VI. Closing balance of cash and cash
equivalents				29,298,729.92	12,601,039.78
	Person in charge		of	Person in charge of
Legal representative:	accounting:			accounting department:
Zhang Chong	Ma Yan			Chen Jing

– 25 –

4.2 Audit Report

Applicable ✓ Not applicable

Company name LUOYANG GLASS COMPANY LIMITED Legal representative Zhang Chong* Date 30 October 2018

As at the date of this announcement, the Board comprises four executive Directors: Mr. Zhang Chong, Mr. Ni Zhisen, Mr. Wang Guoqiang and Mr. Ma Yan; one nonexecutive Director: Mr. Xie Jun; and four independent non-executive Directors: Mr. Jin Zhanping, Mr. Liu Tianni, Mr. Ye Shuhua and Mr. He Baofeng.

– 26 –