RoboSense Technology Co., Ltd — Interim / Quarterly Report 2021

Aug 17, 2021

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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2021 INTERIM RESULTS ANNOUNCEMENT

I. IMPORTANT NOTICE

This interim results announcement is extracted from the full text of the 2021 interim report of the Company. For details, investors are advised to read carefully the full text of the interim report of the Company which will be published simultaneously on the website of the Shanghai Stock Exchange and other websites designated by China Securities Regulatory Commission.

This interim results of the Company for the six months ended 30 June 2021 are unaudited but have been reviewed and approved by the audit committee under the board of directors (the “ Board ”) of the Company.

– 1 –

II. MAJOR FINANCIAL DATA AND INFORMATION OF SHAREHOLDERS

(I) Major financial data

Unit: Yuan Currency: RMB

			Increase/
	Reporting		decrease
	period		over the
	(January	Same period	same period
Major accounting data	to June)	last year	last year
			(%)
Operating income	1,594,837,061.97	957,734,358.65	66.52
Net profit attributable
to shareholders of the
Company	198,051,272.50	16,144,701.43	1,126.73
Net profit attributable
to shareholders of the
Company after deducting
non-recurring profit or loss	185,692,069.17	7,084,196.75	2,521.22
Net cash flow from operating
activities	68,122,711.78	-27,661,112.64	N/A
	At the end		Increase/
	of the	At the end	decrease from
	reporting	of the	the end of the
	period	previous year	previous year
			(%)
Net assets attributable
to shareholders of the
Company	1,824,629,494.31	1,626,578,221.81	12.18
Total assets	6,514,521,162.32	5,604,575,811.17	16.24

– 2 –

(II) Number and shareholdings of shareholders

1. Number of shareholders

Total number of holders of ordinary 36,757 shareholders (including 36,718 shares as at the end of the reporting holders of A shares and 39 holders of period (shareholder) H shares) Total number of preferential shareholders 0 with voting rights restored as at the end of the reporting period (shareholder)

2. Shareholdings of top ten shareholders

Unit: shares

		Shareholdings	of top ten shareholders	of top ten shareholders
	Increase/	Number of		Number of	Pledged	or frozen
	decrease	shares at		shares held
	during the	the end of		subject to
Name of shareholder	reporting	reporting		trading			Nature of
(Full name)	period	period	Proportion	moratorium	Status	Number	shareholder
			(%)
HKSCC NOMINEES	1,224,000	248,978,699	45.39	0	Unknown		Overseas
LIMITED							legal
							person
China Luoyang Float Glass	0	111,195,912	20.27	6,177,670	Pledged	55,597,956	State-owned
(Group) Co., Ltd.							legal
							person
CNBM Bengbu Design &	0	70,290,049	12.81	1,290,049	Nil		State-owned
Research Institute for Glass							legal
Industry Co., Ltd.							person
Triumph Technology Group	0	6,170,699	1.12	6,170,699	Nil		State-owned
Co., Ltd.							legal
							person
Anhui Huaguang	0	3,477,327	0.63	3,477,327	Nil		State-owned
Photoelectricity Materials							legal
Technology Group Co., Ltd.							person
Hong Kong Securities Clearing	583,705	2,457,261	0.45	0	Nil		Overseas
Co., Ltd.							legal
							person
Ping An Asset Management	1,674,200	1,674,200	0.31	0	Nil		Domestic
– Ping An Bank – Ping An							non-state
Asset Ruyi No. 41 Asset							owned
Management Product (平安							legal
資產如意41號資產管理							person
產品)
Yixing Environmental	0	1,542,674	0.28	0	Nil		State-owned
Technology Innovation							legal
Venture Investment Co.,							person
Ltd.*
Wang Aijun (王愛軍)	1,530,400	1,530,400	0.28	0	Nil		Domestic
							natural
							person
Wang Hejun (王賀軍)	0	1,513,400	0.28	0	Nil		Domestic
							natural
							person

– 3 –

Shareholdings of top	10 shareholders not	subject to trading moratorium	subject to trading moratorium
	Number of	Type and number	of shares
	circulating shares
	not subject
	to trading
Name of shareholder	moratorium	Type	Number
HKSCC NOMINEES	248,978,699	Overseas listed	248,978,699
LIMITED		foreign shares
China Luoyang Float Glass	105,018,242	Ordinary shares	105,018,242
(Group) Co., Ltd.		denominated in
		RMB
CNBM Bengbu Design &	69,000,000	Ordinary shares	69,000,000
Research Institute for		denominated in
Glass Industry Co., Ltd.		RMB
Hong Kong Securities	2,457,261	Ordinary shares	2,457,261
Clearing Co., Ltd.		denominated in
		RMB
Ping An Asset Management	1,674,200	Ordinary shares	1,674,200
– Ping An Bank – Ping An		denominated in
Asset Ruyi No. 41 Asset		RMB
Management Product
(平安資產如意41號
資產管理產品)
Yixing Environmental	1,542,674	Ordinary shares	1,542,674
Technology Innovation		denominated in
Venture Investment Co.,		RMB
Ltd.*
Wang Aijun (王愛軍)	1,530,400	Ordinary shares	1,530,400
		denominated in
		RMB
Wang Hejun (王賀軍)	1,513,400	Ordinary shares	1,513,400
		denominated in
		RMB
Qinhuangdao Hongxing Iron	1,356,400	Ordinary shares	1,356,400
& Steel Co., Ltd.(秦皇島		denominated in
宏興鋼鐵有限公司)		RMB
Shanghai Pudong	1,003,900	Ordinary shares	1,003,900
Development Bank Co.,		denominated in
Ltd. – Changxin Jinli		RMB
Trend Hybrid Securities
Investment Fund (長信
金利趨勢混合型證券
投資基)

Explanation on the repurchase accounts among the top ten shareholders

None

– 4 –

Shareholdings of top 10 shareholders not subject to trading moratorium Number of Type and number of shares circulating shares not subject to trading Name of shareholder moratorium Type Number

Explanation on the aforesaid shareholders entrusting voting rights, being entrusted with voting rights, and waiving voting rights of

None

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

Among the top 10 shareholders of the Company, China Luoyang Float Glass (Group) Co., Ltd. and CNBM Bengbu Design & Research Institute for Glass Industry Co., Ltd., Anhui Huaguang Photoelectricity Materials Technology Group Co., Ltd. and Triumph Technology Group 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.

Explanations on preferential shareholders with voting rights restored and the number of shares held

None

• 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 Co., Ltd. are held on behalf of overseas investors who held ordinary shares denominated in Renminbi of the Company via Northbound Trading in the Shanghai-Hong Kong Stock Connect.

– 5 –

Number of shares held by top 10 holders of shares subject to trading moratorium and trading moratorium

Unit: share

			Shares subject to trading	Shares subject to trading
			moratorium available for listing
			and trading
				Number of
		Number		additional
		of shares		shares
	Name of holders of	held subject	Time available	available for
	shares subject to	to trading	for listing	listing and	Trading
No.	trading moratorium	moratorium	and trading	trading	moratorium
1	China Luoyang Float Glass	6,177,670	17 October 2021	0	Non-transferable within 36
	(Group) Co., Ltd.				months from the completion
					date of the issuance
2	Triumph Technology	6,170,699	17 October 2021	0	Non-transferable within 36
	Group Co., Ltd.				months from the completion
					date of the issuance
3	Anhui Huaguang	3,477,327	17 October 2021	0	Non-transferable within 36
	Photoelectricity				months from the completion
	Materials Technology				date of the issuance
	Group Co., Ltd.
4	CNBM Bengbu Design &	1,290,049	17 October 2021	0	Non-transferable within 36
	Research Institute for				months from the completion
	Glass Industry Co., Ltd.				date of the issuance
5	China Triumph	386,370	17 October 2021	0	Non-transferable within 36
	International				months from the completion
	Engineering Co., Ltd.				date of the issuance
Explanation on related		China Luoyang Float Glass (Group) Co., Ltd. and CNBM Bengbu Design & Research
relationship or action		Institute for Glass Industry Co., Ltd., Anhui Huaguang Photoelectricity Materials
acting in concert among the		Technology Group Co., Ltd., Triumph Technology			Group Co., Ltd. and China
aforesaid shareholders		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》).

– 6 –

III. FINANCIAL STATEMENTS AND NOTES

(I) Financial Statements

Consolidated Balance Sheet

30 June 2021

Prepared by: Luoyang Glass Company Limited Unit: Yuan Item 30 June 2021 Current assets: Monetary funds 705,374,623.91 Notes receivable 236,759,247.32 Accounts receivable 483,082,982.70 Accounts receivable financing 335,132,054.95 Prepayments 137,090,734.15 Reinsurance contract reserves receivable Other receivables 26,238,412.56 Inventories 350,755,838.04 Other current assets 75,201,575.98 Total current assets 2,349,635,469.61 Non-current assets: Long-term receivables 55,000,000.00 Fixed assets 2,999,829,947.82 Construction in progress 463,904,284.16 Right-of-use assets 10,979,958.19 Intangible assets 393,531,697.62 Development expenditure 18,795,663.40 Long-term deferred expenses 1,569,222.15 Deferred tax assets 10,748,095.88 Other non-current assets 210,526,823.49 Total non-current assets 4,164,885,692.71 Total assets 6,514,521,162.32*

Currency: RMB 31 December 2020 300,948,343.56 102,441,393.68 637,911,162.29 448,697,313.21 142,259,523.11 17,023,855.78 257,598,620.68 55,139,885.94 1,962,020,098.25 55,000,000.00 3,068,216,734.33 54,472,785.67 12,259,657.09 392,925,010.51 14,096,615.36 1,595,431.43 10,466,272.12 33,523,206.41 3,642,555,712.92 5,604,575,811.17

– 7 –

Item Current liabilities: Short-term borrowings Notes payable Accounts payable Contract liabilities Employee compensation payable Taxes payable Other payables Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Lease liabilities Deferred income Total non-current liabilities Total liabilities Owner’s equity (or shareholder’s equity): Paid-in capital (or share capital) Capital reserve Surplus reserve Undistributed profit Total equity attributable to owners (or shareholders) of the parent company Minority interests Total owner’s equity (or shareholder’s equity): Total liabilities and owner’s equity (or shareholder’s equity)	30 June 2021 1,741,805,390.40 528,992,637.92 355,727,339.86 51,270,849.77 21,123,689.83 44,041,196.23 712,632,278.85 100,832,456.46 74,534,920.98 3,630,960,760.30 798,730,229.00 8,015,371.23 102,673,811.46 909,419,411.69 4,540,380,171.99 548,540,432.00 1,982,394,841.30 51,365,509.04 -757,671,288.03 1,824,629,494.31 149,511,496.02 1,974,140,990.33 6,514,521,162.32	31 December 2020 1,177,314,071.56 465,733,722.37 428,756,037.46 38,214,732.27 38,978,819.73 116,355,071.70 764,011,526.81 137,330,815.42 4,888,222.00 3,171,583,019.32 524,063,924.00 9,238,598.97 104,408,642.44 637,711,165.41 3,809,294,184.73 548,540,432.00 1,982,394,841.30 51,365,509.04 -955,722,560.53 1,626,578,221.81 168,703,404.63 1,795,281,626.44 5,604,575,811.17

– 8 –

Balance Sheet of the Parent Company 30 June 2021

Prepared by: Luoyang Glass Company Limited Unit: Yuan Item 30 June 2021 Current assets: Monetary funds 444,521,329.12 Notes receivable 25,000,000.00 Accounts receivable 193,104,993.68 Accounts receivable financing 7,328,519.63 Prepayments 25,630.47 Other receivables 412,993,541.29 Inventories 533,282.20 Other current assets 547,169.81 Total current assets 1,084,054,466.20 Non-current assets: Long-term receivables 55,000,000.00 Long-term equity investments 1,886,146,638.35 Fixed assets 2,041,690.00 Intangible assets 5,399,119.66 Other non-current assets 42,880,000.00 Total non-current assets 1,991,467,448.01 Total assets 3,075,521,914.21*

Currency: RMB 31 December 2020 125,309,146.98 25,000,000.00 172,104,965.11 11,328,409.13 23,779.73 489,264,423.62 3,100,908.52 826,131,633.09 55,000,000.00 1,886,146,638.35 2,174,833.48 5,511,212.08 1,948,832,683.91 2,774,964,317.00

– 9 –

	30 June	31 December
Item	2021	2020
Current liabilities:
Short-term borrowings	579,644,753.21	394,007,666.58
Notes payable	44,034,061.94	45,877,926.40
Accounts payable	65,122,138.40	49,075,335.55
Contract liabilities	20,962,872.23	12,260,748.25
Employee compensation payable	4,631,340.31	8,074,804.47
Taxes payable	1,492,373.35	2,253,865.09
Other payable	832,136,223.89	791,861,472.98
Non-current liabilities due within one year	38,949,248.10	42,422,967.95
Other current liabilities	2,725,173.38	1,593,897.27
Total current liabilities	1,589,698,184.81	1,347,428,684.54
Non-current liabilities:
Long-term borrowings	215,400,000.00	228,000,000.00
Total non-current liabilities	215,400,000.00	228,000,000.00
Total liabilities	1,805,098,184.81	1,575,428,684.54
Owner’s equity (or shareholder’s equity):
Paid-in capital (or share capital)	548,540,432.00	548,540,432.00
Capital reserve	1,961,847,553.30	1,961,847,553.30
Surplus reserve	51,365,509.04	51,365,509.04
Undistributed profit	-1,291,329,764.94	-1,362,217,861.88
Total owner’s equity (or shareholder’s
equity):	1,270,423,729.40	1,199,535,632.46
Total liabilities and owner’s equity (or
shareholder’s equity)	3,075,521,914.21	2,774,964,317.00

– 10 –

Consolidated Income Statement January to June 2021

Prepared by: Luoyang Glass Company Limited*	Prepared by: Luoyang Glass Company Limited*	Unit: Yuan	Currency: RMB
Item		Half year of 2021	Half year of 2020
I.	Total operating revenue	1,594,837,061.97	957,734,358.65
	Including: Operating income	1,594,837,061.97	957,734,358.65
II.	Total operating costs	1,342,268,834.27	913,762,085.96
	Including: Operating costs	1,102,461,333.55	721,314,815.18
	Taxes and surcharges	17,689,195.62	11,696,908.91
	Selling expenses	7,758,712.45	36,041,777.19
	Administration expenses	66,446,645.04	51,347,652.93
	Research and development
	expenses	90,233,922.60	37,333,411.11
	Finance expenses	57,679,025.01	56,027,520.64
	Including: Interest expenses	58,710,565.90	53,903,142.34
	Interest income	2,367,905.41	2,251,089.94
	Add: Other income	19,266,446.09	9,182,107.85
	Investment income
	(loss is represented by “-”)	-9,070,520.43	-5,356,989.75
	Credit impairment loss
	(loss is represented by “-”)	575,614.51	-5,146,333.82
	Impairment loss of assets
	(loss is represented by “-”)		-2,600,000.00
	Gains from disposal of assets
	(loss is represented by “-”)	-147,827.66	111,175.19
III.	Operating profit (loss is represented by “-”)	263,191,940.21	40,162,232.16
	Add: Non-operating income	5,419.91	2,510,354.63
	Less: Non-operating expense	500,000.00	5,120.00
IV.	Total profit (total loss is represented by “-”)	262,697,360.12	42,667,466.79
	Less: Income tax expenses	43,648,482.22	9,917,339.40

– 11 –

Item	Item			Half year of 2021	Half year of 2020
V.	Net profit (net loss is represented by “-”)			219,048,877.90	32,750,127.39
	(I) Classified on going concern basis
		1.	Ne t profit from continued operation
			(net loss is represented by “-”)	219,048,877.90	32,750,127.39
		2.	Ne t profit from discontinued
			operation (net loss is represented
			by “-”)
	(II) Classified by ownership
		1.	Ne t profit attributable to the owners
			of the Company (Net loss is
			represented by “-”)	198,051,272.50	16,144,701.43
		2.	Pr ofit or loss attributable to minority
			interests (Net loss is represented
			by “-”)	20,997,605.40	16,605,425.96
VI.	Other		comprehensive income net of tax
	(I) Ot her comprehensive income attributable
			to the owners of the Company, net of
			tax
	(II) Ot her comprehensive income attributable
			to minority interests, net of tax
VII.		Total comprehensive income		219,048,877.90	32,750,127.39
		(I)	To tal comprehensive income
			attributable to owners of the
			Company	198,051,272.50	16,144,701.43
		(II)	To tal comprehensive income
			attributable to minority interests	20,997,605.40	16,605,425.96
VIII.		Earnings per share:
		(I)	Basic earnings per share (RMB/share)	0.3611	0.0292
		(II)	Di luted earnings per share (RMB/share)	0.3611	0.0292

– 12 –

Income Statement of the Company January to June 2021

Prepared by: Luoyang Glass Company Limited*	Prepared by: Luoyang Glass Company Limited*	Unit: Yuan	Currency: RMB
Item		Half year of 2021	Half year of 2020
I.	Operating revenue	277,567,425.29	148,723,247.33
	Less: Operating costs	275,690,521.08	147,828,673.42
	Taxes and surcharges	369,783.59	103,897.70
	Selling expenses	380,431.47	317,607.19
	Administration expenses	8,193,704.16	7,037,071.37
	Finance expenses	19,693,121.41	20,894,368.25
	Including: Interest expenses	32,700,551.01	27,350,538.18
	Interest income	13,139,421.55	8,382,129.21
	Add: Other income	6,229.23	52,286.00
	Investment income (loss is represented
	by “-”)	97,827,242.98	50,905,540.46
	Credit impairment loss (loss is
	represented by “-”)	-185,238.85	4,198,408.92
	Gains from disposal of assets (loss is
	represented by “-”)		71,721.97
II.	Operating profit (loss is represented by “-”)	70,888,096.94	27,769,586.75
	Add: Non-operating income		2,506,578.66
	Less: Non-operating expense
III.	Total profit (total loss is represented by
	“-”)	70,888,096.94	30,276,165.41
	Less: Income tax expenses
IV.	Net profit (net loss is represented by “-”)	70,888,096.94	30,276,165.41
	1. Ne t profit from continued operation
	(net loss is represented by “-”)	70,888,096.94	30,276,165.41
	2. Ne t profit from discontinued operation
	(net loss is represented by “-”)
V.	Other comprehensive income net of tax
	(I) Ot her comprehensive income that will
	not be reclassified to profit or loss
	(II) Ot her comprehensive income that will be
	reclassified to profit and loss
VI.	Total comprehensive income	70,888,096.94	30,276,165.41
VII.	Earnings per share:
	(I) Basic earnings per share (RMB/share)
	(II) Diluted earnings per share (RMB/share)

– 13 –

Consolidated Cash Flow Statement January to June 2021

Prepared by: Luoyang Glass Company Limited Unit: Yuan Item Half of 2021 I. Cash flows from operating activities: Cash received from sale of goods or rendering of services 1,081,585,143.07 Refund of taxes and levies 443,544.19 Other cash receipts relating to operating activities 20,774,072.86 Sub-total of cash inflows from operating activities 1,102,802,760.12 Cash paid for purchase of goods and services rendered 646,001,705.97 Cash paid to and on behalf of employees 159,601,791.01 Tax payments 168,668,624.94 Other cash paid for activities related to operation 60,407,926.42 Sub-total of cash outflow from operating activities 1,034,680,048.34 Net cash flow from operating activities 68,122,711.78 II. Ca sh flow from investment activities: Cash received from investments Sub-total of cash inflows from investing activities Cash paid for the acquisition and construction of fixed assets, intangible assets, and other long- term assets 342,741,867.07 Sub-total of cash outflows from investing activities 342,741,867.07 Net cash flows from investing activities -342,741,867.07*

Currency: RMB Half of 2020 672,835,898.33 4,219,794.84 33,907,796.09 710,963,489.26 520,439,681.27 115,505,627.12 55,820,445.15 46,858,848.36 738,624,601.90 -27,661,112.64 67,452,391.33 67,452,391.33 -67,452,391.33

– 14 –

Half of 2021

Half of 2020

Item III. Cash flows from financing activities: Cash received from borrowings Other cash received related to financing activities Subtotal of cash inflows from financing activities Cash paid for repayments of borrowings Cash payment for distribution of dividends and profits or repayment of interest Including: Dividends and profits paid to minority shareholders by subsidiaries Other cash payments related to financing activities Subtotal of cash outflows from financing activities Net cash flow from financing activities IV. Ef fect of exchange rate changes on cash and cash equivalents V. Ne t increase in cash and cash equivalents Add: Op ening balance of cash and cash equivalents VI. Cl osing balance of cash and cash equivalents	Half of 2021 1,659,990,000.00 92,500,848.10 1,752,490,848.10 857,491,338.15 85,007,966.37 40,189,514.01 99,270,485.48 1,041,769,790.00 710,721,058.10 -177,902.76 435,924,000.05 139,231,301.82 575,155,301.87	Half of 2020 1,005,690,000.00 408,688,371.60 1,414,378,371.60
		978,538,827.53 62,055,488.14 9,685,787.11 186,605,382.06 1,227,199,697.73
		187,178,673.87
		-42,553.79 92,022,616.11 148,188,549.43 240,211,165.54

– 15 –

Cash Flow Statement of the Parent Company January to June 2021

Prepared by: Luoyang Glass Company Limited Unit: Yuan Item Half year of 2020 I. Cash flows from operating activities: Cash received from sale of goods or rendering of services 116,630,282.18 Refund of taxes and levies Other cash receipts relating to operating activities 2,478,423.43 Sub-total of cash inflows from operating activities 119,108,705.61 Cash paid for purchase of goods and services rendered 102,290,685.54 Cash paid to and on behalf of employees 8,270,537.63 Tax payments 2,888,214.10 Other cash paid for activities related to operating activities 7,150,268.15 Sub-total of cash outflows from operating activities 120,599,705.42 Net cash flows from operating activities -1,490,999.81 II. Cash flows from investment activities: Cash received from returns on investments 68,347,245.76 Sub-total of cash inflows from investing activities 68,347,245.76 Cash paid for the acquisition and construction of fixed assets, intangible assets, and other long-term assets 42,888,290.00 Sub-total of cash outflows from investing activities 42,888,290.00 Net cash flows from investing activities 25,458,955.76*

Currency: RMB Half year of 2020 70,254,093.90 8,674.31 4,478,459.91 74,741,228.12 51,370,215.25 6,494,217.06 623,240.85 6,210,343.52 64,698,016.68 10,043,211.44 23,701,965.76 23,701,965.76 463,811.50 463,811.50 23,238,154.26

– 16 –

Half year of 2020

Half year of 2020

Item

III. Cash flows from financing activities: Cash received from borrowings Other cash received related to financing activities Subtotal of cash inflows from financing activities Cash paid for repayments of borrowings Cash payment for distribution of dividends and profits or repayment of interest Other cash payments related to financing activities Subtotal of cash outflows from financing activities Net cash flows from financing activities IV. Effect of exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Op ening balance of cash and cash equivalents VI. Cl osing balance of cash and cash equivalents	528,990,000.00 1,798,109,141.06 2,327,099,141.06 359,506,235.15 15,660,412.95 1,623,976,422.88 1,999,143,070.98 327,956,070.08 -68.38 351,923,957.65 81,846,146.98 433,770,104.63	383,490,000.00 1,133,528,371.60 1,517,018,371.60
		346,626,060.36 17,918,809.76 1,209,482,137.06 1,574,027,007.18
		-57,008,635.58
		128.99 -23,727,140.89 46,467,911.64 22,740,770.75

– 17 –

		Unit: Yuan Currency: RMB			Total	Undistributed Minority owners’	profit Others Subtotal interests equity	-955,722,560.53 1,626,578,221.81 168,703,404.63 1,795,281,626.44	-955,722,560.53 1,626,578,221.81 168,703,404.63 1,795,281,626.44	198,051,272.50 198,051,272.50 -19,191,908.61 178,859,363.89	198,051,272.50 198,051,272.50 20,997,605.40 219,048,877.90		-40,189,514.01 -40,189,514.01			-40,189,514.01 -40,189,514.01							-757,671,288.03 1,824,629,494.31 149,511,496.02 1,974,140,990.33
						General risk	provisions
						Surplus	reserve	51,365,509.04	51,365,509.04														51,365,509.04
Consolidated Statement of Changes in Owners’ Equity	January to June 2021	Prepared by: Luoyang Glass Company Limited*	Half year of 2021	Equity attributable to owners of the Parent Company	Other equity instruments Less: Other	Paid-in capital Capital Treasury comprehensive Special Preferential Perpetual	(or share capital) reserve stock income reserve shares bonds Others	Balance at the end of last year 548,540,432.00 1,982,394,841.30	Balance at the beginning of the year 548,540,432.00 1,982,394,841.30	Change for the period (decrease is indicated by “-”)	(I) Total comprehensive income	(II) Owners’ contribution and decrease in capital	(III) Profit distribution	1. Appropriation to surplus reserve	2. Appropriation to general risk provisions	3. Distribution to owners (or shareholders)	4. Others	(IV) Internal carry-forward of owners’ equity	(V) Special reserve	1. Amount withdrawn during the period	2. Amount utilized during the period	(VI) Others	Balance at the end of the period 548,540,432.00 1,982,394,841.30
							Item	I.	II.	III.													IV.

– 18 –

		Total	owners’	equity	1,413,942,516.79	1,413,942,516.79	23,064,340.28	32,750,127.39		-9,685,787.11			-9,685,787.11									1,437,006,857.07
			Minority	interests	114,726,151.47	114,726,151.47	6,919,638.85	16,605,425.96		-9,685,787.11			-9,685,787.11									121,645,790.32
				Subtotal	1,299,216,365.32	1,299,216,365.32	16,144,701.43	16,144,701.43														1,315,361,066.75
				Others
			Undistributed	profit	-1,283,084,419.02	-1,283,084,419.02	16,144,701.43	16,144,701.43														-1,266,939,717.59
			General risk	provisions
			Surplus	reserve	51,365,509.04	51,365,509.04																51,365,509.04
Half year of 2020	Equity attributable to owners of the Parent Company	Less: Other	Treasury comprehensive Special	stock income reserve
			Capital	reserve	1,978,538,766.30	1,978,538,766.30																1,978,538,766.30
				Others
		Other equity instruments	Preferential Perpetual	shares bonds
			Paid-in capital	(or share capital)	552,396,509.00	552,396,509.00																552,396,509.00
					Balance at the end of last year	Balance at the beginning of the year	Change for the period (decrease is indicated by “-”)	(I) Total comprehensive income	(II) Owners’ contribution and decrease in capital	(III) Profit distribution	1. Appropriation to surplus reserve	2. Appropriation to general risk provisions	3. Distribution to owners (or shareholders)		4. Others	(IV) Internal carry-forward of owners’ equity	(V) Special reserve	1. Amount withdrawn during the period		2. Amount utilized during the period	(VI) Others	Balance at the end of the period
				Item	I.	II.	III.															IV.

– 19 –

		Unit: Yuan Currency: RMB		Total	Special Surplus Undistributed owners’	reserve reserve profit equity	51,365,509.04 -1,362,217,861.88 1,199,535,632.46	51,365,509.04 -1,362,217,861.88 1,199,535,632.46	70,888,096.94 70,888,096.94	70,888,096.94 70,888,096.94									51,365,509.04 -1,291,329,764.94 1,270,423,729.40
				Other	comprehensive	income
Statement of Changes in Owners’ Equity of the Parent Company	January to June 2021	Prepared by: Luoyang Glass Company Limited*	Half year of 2021	Other equity instruments Less:	Paid-in capital Capital Treasury Preferential Perpetual	(or share capital) reserve stock shares bonds Others	Balance at the end of last year 548,540,432.00 1,961,847,553.30	Balance at the beginning of the year 548,540,432.00 1,961,847,553.30	Change for the period (decrease is indicated by “-”)	(I) Total comprehensive income	(II) Owners’ contribution and decrease in capital	(III) Profit distribution	(IV) Internal carry-forward of owners’ equity	(V) Special reserve	1. Amount withdrawn during the period		2. Amount utilized during the period	(VI) Others	Balance at the end of the period 548,540,432.00 1,961,847,553.30
						Item	I.	II.	III.										IV.

– 20 –

	Total	owners’	equity	1,198,745,110.73	1,198,745,110.73	30,276,165.41	30,276,165.41									1,229,021,276.14
		Surplus Undistributed	reserve profit	51,365,509.04 -1,363,008,385.61	51,365,509.04 -1,363,008,385.61	30,276,165.41	30,276,165.41									51,365,509.04 -1,332,732,220.20
		Special	reserve
	Other	comprehensive	income
Half year of 2020	Less:	Treasury	stock
		Capital	reserve	1,957,991,478.30	1,957,991,478.30											1,957,991,478.30
			Others
	Other equity instruments	Preferential Perpetual	shares bonds
		Paid-in capital	(or share capital)	552,396,509.00	552,396,509.00											552,396,509.00
				Balance at the end of last year	Balance at the beginning of the year	Change for the period (decrease is indicated by “-”)	(I) Total comprehensive income	(II) Owners’ contribution and decrease in capital	(III) Profit distribution	(IV) Internal carry-forward of owners’ equity	(V) Special reserve	1. Amount withdrawn during the period		2. Amount utilized during the period	(VI) Others	Balance at the end of the period
			Item	I.	II.	III.										IV.

– 21 –

• (II) NOTES TO THE FINANCIAL STATEMENTS (Expressed in Renminbi)

Background of the Company

Luoyang Glass Company Limited (the “ Company ”) was incorporated in the People’s Republic of China (the “ PRC ”) as a joint stock limited company. The Company and its subsidiaries (collectively the “ Group* ”) are engaged in manufacture and sales of information display glass and new energy glass.

Significant Accounting Policies

1. Basis of preparation of the financial statements

The financial statements of the Company have been prepared on a going concern basis in respect of the actual transactions and events in accordance with the requirements of the Accounting Standards for Business Enterprises, the Application Guidelines for Accounting Standards for Business Enterprises, the Interpretations of the Accounting Standards for Business Enterprises and other regulations issued by the Ministry of Finance, and based on the following significant accounting policies and accounting estimates.

1. Accounting period

Accounting year of the Company is the calendar year from 1 January to 31 December.

1. Functional Currency

The Company’s functional currency is the Renminbi.

1. Preparation method of consolidated financial statements

Subsidiaries and special purpose entities under the de facto control of the Company are incorporated into the consolidated financial statements.

The consolidated financial statements of the Company are prepared in accordance with the “Accounting Standards for Business Enterprises No. 33 – Consolidated Financial Statements” and relevant provisions, and all significant intra-group transactions and balances included in the consolidated scope shall be offset. Interests in subsidiaries that are not attributable to owners of parent company are presented separately as minority interest in the consolidated financial statements.

– 22 –

Adjustments to subsidiaries’ financial statements in accordance with the accounting policies or accounting period of the Company are needed when preparing consolidated financial statements if the subsidiaries’ accounting policies or accounting period are different from those of the Company.

For subsidiaries acquired not under common control combinations, when preparing consolidated financial statements, such subsidiaries’ financial statements should be adjusted on the basis of the fair value of identifiable net assets on the date of acquisition. For subsidiaries acquired under common control combinations, the assets, liabilities, operating results and cash flows of acquired subsidiaries should be included in consolidated financial statements from the beginning of the year of acquisition as if the combination had taken place at the beginning of the year.

Segment Reporting

For management purposes, the Company has two operating segments. The management of the Company regularly reviews the financial information of each segment to make decisions about resources to be allocated to the segment and to assess its performance.

The operating segments of the Company include the information display glass segment and the new energy glass segment.

Segment assets exclude deferred income tax assets, and segment liabilities exclude deferred income tax liabilities.

The price of inter-segment transfers are measured by reference to the price of sales to third parties.

– 23 –

1. Segment information for the half year ended 30 June 2021 is set out as follows:

		Information	New energy	Unallocated
Item		display glass	glass	items	Offset	Total
1.	Operating income	195,138,347.06	1,395,801,565.95	3,897,148.96		1,594,837,061.97
	Including: Re venue from external
	principal operations	194,771,250.32	1,383,877,648.60	3,073,249.53		1,581,722,148.45
	Revenue from other
	external operations	367,096.74	11,923,917.35	823,899.43		13,114,913.52
2.	Impairment losses of assets
3.	Credit impairment losses	1,052,506.44	-291,653.08	-185,238.85		575,614.51
4.	De preciation expenses and
	amortization expenses	34,363,001.39	88,513,279.25	253,443.83	476,206.29	122,653,518.18
5.	Total profit	25,981,842.90	265,001,366.42	70,888,096.94	99,173,946.14	262,697,360.12
6.	Income tax expenses	414,815.06	43,233,667.16			43,648,482.22
7.	Net profit	25,567,027.84	221,767,699.26	70,888,096.94	99,173,946.14	219,048,877.90
8.	Total assets	1,341,232,126.03	5,026,732,664.05	1,189,375,275.86	1,042,818,903.62	6,514,521,162.32
9.	Total liabilities	906,000,441.13	3,278,646,381.25	1,805,098,184.81	1,449,364,835.20	4,540,380,171.99

1. Segment information for the half year ended 30 June 2020 is set out as follows:

		Information
Item		display glass	New energy glass	Unallocated items	Offset	Total
1.	Operating income	135,307,465.81	821,826,263.90	600,628.94		957,734,358.65
	Including: Re venue from external
	principal operations	135,069,735.52	810,100,151.42			945,169,886.94
	Revenue from other
	external operations	237,730.29	11,726,112.48	600,628.94		12,564,471.71
2.	Impairment losses of assets	-2,600,000.00				-2,600,000.00
3.	Credit impairment losses	1,157,403.47	-6,306,493.15	2,755.86		-5,146,333.82
4.	Depreciation expenses and
	amortization expenses	35,023,516.58	61,409,903.08	244,105.29		96,677,524.95
5.	Total profit	-7,459,134.99	78,748,055.19	30,276,165.41	58,897,618.82	42,667,466.79
6.	Income tax expenses	40,198.03	9,877,141.37			9,917,339.40
7.	Net profit	-7,499,333.02	68,870,913.82	30,276,165.41	58,897,618.82	32,750,127.39
8.	Total assets	1,428,120,545.83	4,129,211,394.66	1,049,867,230.50	1,100,611,434.54	5,506,587,736.45
9.	Total liabilities	1,035,757,073.20	2,837,177,936.55	1,706,992,592.71	1,510,346,723.08	4,069,580,879.38

– 24 –

3. Geographic information

The following table sets out information about the geographical location of the Company’s revenue from external customers and the Company’s non-current assets (excluding deferred income tax assets). The geographical location of customers is stated as the location at which goods were delivered to customers. The geographical location of fixed assets, construction in progress and lease prepayments under non-current assets is determined as the physical location of the assets; the geographical location of intangible assets and exploration and evaluation assets is determined as the location of relevant operations; and the geographical location of interests in associates and other investments is determined as the location of their respective operations.

Item Mainland China Ho ng Kong, Macau and Taiwan and Overseas Total	Revenue from external customers January – June 2021 January – June 2020 1,558,723,226.28 947,456,319.80 36,113,835.69 10,278,038.85 1,594,837,061.97 957,734,358.65	Non-current assets Balance at the end of the period Opening balance 4,099,137,596.83 3,577,089,440.80 4,099,137,596.83 3,577,089,440.80	Non-current assets Balance at the end of the period Opening balance 4,099,137,596.83 3,577,089,440.80 4,099,137,596.83 3,577,089,440.80
			3,577,089,440.80

Note: Non-current assets are attributable to the areas where the assets are located, excluding financial assets, separate account assets and deferred income tax assets.

4. Major customers

From January to June 2021, the transaction amount of four customers (customers who are controlled by the same controller are deemed to be the same customer) of the Company exceeds 10% of the Company’s revenue. The transaction amounts are RMB388,725,585.75, RMB228,251,120.51, RMB162,489,461.27 and RMB160,038,805.12, respectively.

– 25 –

Turnover

Turnover represents revenue from the invoiced value of goods sold to customers, after deduction of any trade discounts and net of value added tax and surcharges, an analysis of which is as follows:

• (1) Details of operating revenue

Item Amount for current period Revenue from principal operations 1,581,722,148.45 Revenue from other operations 13,114,913.52 Total 1,594,837,061.97 (2) Details of income from principal operations by product Products or services Amount for current period Information display glass 197,844,499.85 New energy glass 1,380,281,060.03 Other functional glass 3,596,588.57 Total 1,581,722,148.45 Other Income Item Amount for current period Government subsidies 19,265,121.35 Gain from debt restructuring 1,324.74 Total 19,266,446.09

Amount for previous period 945,169,886.94 12,564,471.71 957,734,358.65 Amount for previous period 135,069,735.52 810,100,151.42 945,169,886.94 Amount for previous period 9,182,107.85 9,182,107.85

– 26 –

Gain on Disposal of Assets

Item Gain on disposal of fixed assets Total Non-Operating Income Item Fine income Other gains Total Profit Before Income Tax Profit before income tax is arrived at after (1) Financial expenses Item Interest expense Less: Interest income Exchange loss (less: exchange gain) Handling charges and other expenses Total

Amount for current period Amount for previous period -147,827.66 111,175.19 -147,827.66 111,175.19 Amount for current period Amount for previous period 1,220.00 4,199.91 2,510,354.63 5,419.91 2,510,354.63 (charging)/crediting: Amount for current period Amount for previous period 58,710,565.90 53,903,142.34 2,367,905.41 2,251,089.94 141,701.36 69,496.96 1,194,663.16 4,305,971.28 57,679,025.01 56,027,520.64

– 27 –

(2) Operating costs

Item Costs of principal operations Costs of other operations Total (3) Taxes and surcharges Item Urban construction and maintenance Education surcharges Property tax Land-use tax Stamp duty Others Total (4) Selling expenses Item Staff remuneration Transportation costs Depreciation expenses Travel expenses Other selling expenses Total	Amount for current period 1,090,107,007.73 12,354,325.82 1,102,461,333.55 Amount for current period 2,886,566.64 2,384,924.48 5,324,899.35 4,720,128.40 969,594.19 1,403,082.56 17,689,195.62 Amount for current period 6,076,871.44 378,192.27 151,820.59 1,151,828.15 7,758,712.45	Amount for previous period 709,649,288.56 11,665,526.62 721,314,815.18 Amount for previous period 1,143,457.37 989,560.15 3,835,871.28 4,713,581.93 325,712.58 688,725.60 11,696,908.91 Amount for previous period 9,347,358.70 24,258,674.56 243,541.49 158,712.20 2,033,490.24 36,041,777.19

– 28 –

(5) Administrative expenses

Item Staff remuneration Depreciation of fixed assets Business entertainment expense Business travel expenses Transportation expenses Office expenses Intermediary engagement and consulting fees Property management fee Amortization of intangible assets Other expenses Total (6) Research and development expenses Item Staff remuneration Material expenses Depreciation expenses Other expenses Total (7) Impairment losses of assets Item Impairment losses of inventories Total	Amount for current period 31,979,562.54 7,317,413.85 523,260.67 553,312.35 894,072.73 2,699,162.95 4,298,577.96 795,731.61 4,928,982.85 12,456,567.53 66,446,645.04 Amount for current period 18,402,953.10 63,746,547.30 7,361,767.31 722,654.89 90,233,922.60 Amount for current period	Amount for previous period 24,480,256.87 9,538,268.51 590,726.22 416,619.31 578,446.33 2,567,320.93 4,189,651.88 423,815.11 4,724,878.74 3,837,669.03 51,347,652.93 Amount for previous period 12,295,025.03 20,828,168.92 4,038,469.91 171,747.25 37,333,411.11 Amount for previous period -2,600,000.00 -2,600,000.00

– 29 –

(8) Impairment losses of credit

Item Bad debt losses of notes receivable Bad debt losses of accounts receivable Bad debt losses of other receivables Total (9) Non-operating expenses Item Donations Penalties and overdue fine Others Total Income Tax Expenses Item Current income tax expenses calculated according to tax laws and relevant requirements Deferred income tax expenses Total	Amount for current period -2,741,180.67 3,694,540.23 -377,745.05 575,614.51 Amount for current period 500,000.00 500,000.00 Amount for current period 43,930,305.98 -281,823.76 43,648,482.22	Amount for previous period 421,576.64 -7,572,734.90 2,004,824.44 -5,146,333.82 Amount for previous period 5,000.00 120.00 5,120.00 Amount for previous period 10,785,418.12 -868,078.72 9,917,339.40

Note: Longhai Glass, Bengbu CNBM Information Display, Hefei New Energy, Tongcheng New Energy, Yixing New Energy (the controlling subsidiaries), all being whollyowned subsidiaries of the Company, were approved as high-tech enterprises and paid the enterprise income tax at a tax rate of 15% in 2021.

– 30 –

Dividend

The board of directors of the Company does not recommend declaring dividends for the half year ended 30 June 2021.

Basic Earnings Per Share

Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the Company by the weighted average number of the outstanding ordinary shares of the Company:

Item Net profit attributable to ordinary shareholders of the Company Weighted average number of the outstanding ordinary shares of the Company Basic earnings per share	Amount for current period 198,051,272.50 548,540,432 0.3611	Amount for previous period 16,144,701.43 552,396,509.00
		0.0292

There were no diluted earnings per share as the Company had no potential dilutive shares for the year ended 30 June 2021.

Accounts Receivables and Notes Receivables

• (1) Accounts receivables

Item Accounts receivables Less: provision for bad debts Accounts receivable, net	Closing balance 592,097,896.87 109,014,914.17 483,082,982.70	Opening balance 750,620,616.69 112,709,454.40
		637,911,162.29

The Company generally provides credit period of 1–6 month(s) for major customers, and generally sells by receiving advances for new customers and customers with less business volume.

– 31 –

Aged analysis of accounts receivables by date of entry:

Aging Within 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years Subtotal Less: provision for bad debts Total	Closing balance 475,392,064.40 20,791,985.73 24,396,105.08 14,684,631.26 2,213,121.98 54,619,988.42 592,097,896.87 109,014,914.17 483,082,982.70	Opening balance 636,063,884.47 26,583,995.37 20,191,820.30 10,955,320.15 2,205,607.98 54,619,988.42 750,620,616.69 112,709,454.40
		637,911,162.29

(2) Notes receivables Category Closing balance Opening balance Commercial acceptances 241,591,068.68 104,532,034.37 Less: provision for bad debts 4,831,821.36 2,090,640.69 Total 236,759,247.32 102,441,393.68 (3) Receivables financing Item Closing balance Opening balance Bank acceptances 335,132,054.95 448,697,313.21 Total 335,132,054.95 448,697,313.21

– 32 –

Accounts Payables and Notes Payables

• (1) Aged analysis of accounts payable by date of entry:

Item Within 1 year (including 1 year) Above 1 year Total (2) Notes payables Item Bank acceptances Total Reserves (1) Capital reserve Item Opening Balance I. Capital premium 1,907,278,896.29 II. Other capital reserve 75,115,945.01 Total 1,982,394,841.30 (2) Surplus reserve Item Opening Balance Statutory surplus reserve 51,365,509.04 Total 51,365,509.04		Closing balance Opening balance 320,755,325.31 350,179,059.89 34,972,014.55 78,576,977.57 355,727,339.86 428,756,037.46 Closing balance Opening balance 528,992,637.92 465,733,722.37 528,992,637.92 465,733,722.37 Increase for the period Decrease for the period Closing Balance 1,907,278,896.29 75,115,945.01 1,982,394,841.30 Increase for the period Decrease for the period Closing Balance 51,365,509.04 51,365,509.04

– 33 –

(3) Undistributed profit

Closing Balance Appropriation or distribution Item Amount proportion Undistributed profit at the end of the previous period before adjustment -955,722,560.53 Total effects of adjustments of undistributed profits at the beginning of the period (increase expressed with +, and decrease expressed with -) Undistributed profit at the beginning of the period after adjustment -955,722,560.53 Add: net profit attributable to owners of the Company for the period 198,051,272.50 Less: Appropriation to statutory surplus reserve Appropriation to discretionary surplus reserve Undistributed profit at the end of the period -757,671,288.03

Subsequent Matters

Nil

– 34 –

IV. MANAGEMENT DISCUSSION AND ANALYSIS

Review of the overall performance and achievements during the reporting period

In the opening year of the “14th Five-Year Plan”, China started a new journey to build a modern socialist country in all respects. The above-the-scale industrial added value recorded a year-on-year increase of 15.9% in the first half of 2021, with steady growth in both supply and demand. The cyclical rebound of the economy continues to strengthen, and the market is expected to improve steadily.

Insisted on leading with high-quality development, the Company actively adapted to the changes of industry situation; adhered to focus on structural adjustment, it accelerated merger and acquisition integration and project construction; insisted on taking management improvement as an important channel, it focused on improving its weak areas, stabilizing prices and reducing costs, and strengthened benchmarking management, which ensured the overall stability and steady progress in production and operation.

Promoting the non-public issuance of A shares (the “Non-public Issuance”)

in an orderly manner. During the reporting period, the Company cooperated with intermediaries in promoting various work on the Non-public Issuance in an orderly manner. The Non-public Issuance was considered and approved at the 2021 second extraordinary general meeting and the 2021 first A share and H share class meetings of the Company on 12 March 2021, passed the review by the Issuance Examination Commission of the CSRC on 15 June 2021, and was approved by the CSRC on 21 June 2021. Upon completion of the Nonpublic Issuance, the capital scale of the Company will be further expanded, the working capital will be correspondingly enriched, the asset and liability structure will become more reasonable, and the overall strength of the Company will be enhanced.

Speeding up the construction of new projects and corporate mergers and acquisitions to enhance development potential. During the reporting period, the Company took good advantage of the strategic opportunity period for the development of new energy glass and implemented the construction of new projects in a steady manner. The construction work of the fund-raising projects, i.e. Hefei New Energy Project of Photovoltaic Cell Encapsulating Material for Solar Equipment and Tongcheng New Energy Phase I Project of Photovoltaic Cell Encapsulating Material for Solar Equipment, are progressing smoothly, and the two projects are expected to be put into operation upon ignition in September 2021 and November 2021, respectively. Yixing New Energy Project of Photovoltaic Cell Encapsulating Material for Solar Equipment has been filed, and the pre-review of project land, the environmental impact assessment report and other relevant matters are in progress.

– 35 –

Meanwhile, according to the Company’s strategic plan, we committed to further optimize, enhance and expand our new energy glass business, anchor our development goals and accelerate the integration of mergers and acquisitions. During the reporting period, the Company has launched and implemented the Northern Glass Equity Interests Acquisition Project ( 北方玻璃股權收購項 目 ) and the Zigong New Energy Capital Increase Project ( 自貢新能源增資 項目 ). The acquisition of equity interests in Northern Glass was successively considered and approved at the Company’s Board meeting and the extraordinary general meeting, and the industrial and commercial registration of changes was completed on 4 August 2021. Upon completion of this acquisition, the Company will actively promote the Northern Glass Project of Photovoltaic Cell Encapsulating Material for Solar Equipment. Upon completion of construction of the project and reaching the designated production capacity, a strategic layout for the new energy glass business of the Company will be formed in Hebei Province and North China. The Zigong New Energy Capital Increase Project has made positive progress, according to the Cooperation Framework Agreement and Entrusted Operation and Management Agreement reached between the Company and the partner in advance, the Company has sent key management personnel and production technical backbones to the construction of the Phase I of Zigong New Energy Solar Material Project, and the Zigong New Energy ultra-white rolled glass product was released from the production line on 1 July 2021. The smooth operation of the production line filled the blank of no photovoltaic glass manufacturer in southwest China and played a leading demonstration role in promoting the development of the local solar energy industry. At present, both parties are in the process of negotiation and communication on specific matters related to the capital increase and implementing the relevant examination and approval procedures for state-owned assets.

Focusing on scientific and technological innovation and improving product

quality. While insisting on scientific and technological innovation, the Company consistently optimizes, improves and enhances the level of the production process and equipment of each production line and improves the quality of products in kind, so as to meet market demand to the greatest extent. Longhai Glass has steadily improved the stability of product quality and the processing pass rate of downstream products by holding regular quality improvement seminars, conducting technical discussion and investigating and rectifying various problems.

Increasing investment in research and development and promoting scientific

and technological innovation. During the reporting period, the Company has invested RMB100,608,000 in the research and development, accounting for 6.31% of the operating revenue. In the first half of the year, a total of 10 patents (including 2 invention patents and 8 utility models) were applied; 12 patents (including 2 invention patents; 10 utility models) were authorized.

– 36 –

Adjusting the product structure to resist market risks. The Company seizes market share and secures orders through product innovation and structural adjustment. In response to the unfavorable continuous decline in market prices in the second quarter, our three new energy companies actively adjusted their product structures based on the actual situation. Yixing New Energy continued to maintain its advantage in the production of 2.0 double-glass while increasing the production ratio of large plate glass; Tongcheng New Energy increased the production ratio of its 2mm products; and Hefei New Energy increased the ratio of high value-added products such as double-layer coated products. Bengbu CNBM Information Display increased the ratio of ITO and TP and cover plate products and increased the ratio of end customers to stabilize prices.

Consistently consolidating benchmarking management. The Company carried out the activity themed “quality improvement for setting off again with the firstclass enterprises as benchmarks” and the benchmarking management of six rates, namely “capacity utilization rate, total yield, production and sales rate, collection rate, comprehensive gross profit margin, and overall labor productivity”, in order to enhance its weak points and narrow the gap and actively cope with the risk of market price decline.

Deepening the reform. The Company resolutely implements the requirements of the three-year action plan for the reform of state-owned enterprises, fully implements the tenure system and contractual management for members of the management team, and gradually establishes and improves the medium and longterm incentive mechanism of the Company. During the reporting period, solid and vigorous steps were taken when promoted all works, and the development trend of steady progress and quality improvement was consolidated and maintained.

Industry development status and business outlook

During the period of the “14th Five-Year Plan”, the Company will implement the new national energy security strategy, and under the guidance of the ambitious goal of “peak carbon dioxide emissions and carbon neutrality”, promote the development of low-carbon economy and green industry, and advance a new round of industrial technological revolution. The renewable energy industry in China will enter a new stage of large-scale, high-proportion and market-oriented development.

– 37 –

According to the photovoltaic industry data recently released by the Ministry of Industry and Information Technology, the national output of polysilicon, silicon wafers, cells and modules in the first half of 2021 reached 238,000 tonnes, 105GW, 92.4GW and 80.2GW, respectively, representing a year-on-year increase of 16.1%, 40%, 56.6% and 50.5%, respectively. In particular, the national output of polysilicon and modules in June reached 42,000 tonnes and 14GW, respectively. The scale of the photovoltaic industry continues to expand.

According to the forecast of China’s photovoltaic industry, the global additional installed capacity of photovoltaic power generation is expected to reach 150– 170GW in 2021, and China’s additional installed capacity is expected to reach 55–65GW. The photovoltaic industry continues to maintain rapid growth.

Facing new opportunities and greater challenges in the development of the industry, in the second half of 2021, the Company will continue to strengthen strategic leadership and accelerate the pace of project construction and mergers and acquisitions integration; focus on improving management efficiency, conduct benchmarking with the first-class enterprises in the industry, reduce costs, improve quality and enhance efficiency, and actively resolve market risks; improve incentive mechanisms and identify responsibilities at all levels, so as to ensure high-quality and comprehensive completion of the business objectives and tasks for the year and achieve a good start of the “14th Five-Year Plan”.

Analysis of the principal operations during the reporting period

During the reporting period, the Group’s operating revenue amounted to RMB1,594,837,061.97, representing a year-on-year increase of 66.52%; operating profit amounted to RMB263,191,940.21, representing a year-on-year increase of 555.32%; net profit attributable to the shareholders of the Company amounted to RMB198,051,272.50, representing a year-on-year increase of 1,126.73%; and basic earnings per share attributable to shareholders of the Company amounted to RMB0.3611.

– 38 –

(I) Analysis of principal operating activities

1. Analytical statement of changes in relevant items in the financial statements

Unit: Yuan Currency: RMB

		Amount for
	Amount for	corresponding
Item	the period	period last year	Change
			(%)
Operating revenue	1,594,837,061.97	957,734,358.65	66.52
Operating costs	1,102,461,333.55	721,314,815.18	52.84
Taxes and surcharges	17,689,195.62	11,696,908.91	51.23
Selling expenses	7,758,712.45	36,041,777.19	-78.47
Administrative expenses	66,446,645.04	51,347,652.93	29.41
Financial expenses	57,679,025.01	56,027,520.64	2.95
Research and development
expenses	90,233,922.60	37,333,411.11	141.70
Other income	19,266,446.09	9,182,107.85	109.83
Income tax expenses	43,648,482.22	9,917,339.40	340.12
Net cash flow from
operating activities	68,122,711.78	-27,661,112.64	N/A
Net cash flow from
investment activities	-342,741,867.07	-67,452,391.33	408.12
Net cash flow from
financing activities	710,721,058.10	187,178,673.87	279.70

Reasons for change in operating revenue: an increase in revenue as a result of the increase in sales and prices of products in the reporting period;

Reasons for change in operating costs: an increase in operating costs as a result of the increase in sales in the reporting period;

Reasons for change in taxes and surcharges: an increase in value-added taxes and relevant additional taxes as a result of the increase of revenue in the reporting period;

Reasons for change in cost of sales: a decrease in selling expenses as a result of the charging of selling transportation expenses to operating costs in the reporting period;

– 39 –

Reasons for change in administrative expenses: an increase in employee remuneration and technical service fees in the reporting period;

Reasons for change in financial expenses: an increase in financing in the reporting period;

Reasons for change in R&D expenses: an increase in investment in research and development in the reporting period;

Reasons for change in other income: an increase in government subsidies in the reporting period;

Reasons for change in income tax expenses: an increase in taxable profits in the reporting period;

Reasons for change in net cash flow from operating activities: an increase in cash received from sales of goods in the reporting period;

Reasons for change in net cash flow from investment activities: an increase in cash investment cost in fixed assets during the reporting period;

Reasons for change in net cash flow from financing activities: net amount of financing increased during the reporting period;

1. Principal operations by industry and by product

Unit: Yuan Currency: RMB

Principal operations by industry

				Increase/decrease	Increase/decrease
				of operating	of operating costs	Increase/decrease of
				revenue as	as compared with	gross profit margin
				compared with the	the corresponding	as compared with the
	Operating	Operating	Gross profit	corresponding	period of	corresponding
By industry	revenue	costs	margin	period last year	last year	period of last year
			(%)	(%)	(%)	(%)
New materials	1,581,722,148.45	1,090,107,007.73	31.08	67.35	53.61	Increased by
						6.16 percentage points

– 40 –

Principal operations by product

				Increase/decrease
				of operating	Increase/decrease
				revenue as	of operating costs	Increase/decrease of
				compared with	as compared with	gross profit margin
				the corresponding	the corresponding	as compared with the
			Gross profit	period of	period of	corresponding period
By product	Operating revenue	Operating costs	margin	last year	last year	of last year
			(%)	(%)	(%)	(%)
Information display	197,844,499.85	119,545,737.63	39.58	46.48	10.24	Increased by
glass						19.86 percentage points
New energy glass	1,380,281,060.03	967,437,555.48	29.91	70.38	60.91	Increased by
						4.12 percentage points
Other functional glass	3,596,588.57	3,123,714.62	13.15

(II) Explanation on significant change of profit caused by non-core business

Nil

(III) Analysis of assets and liabilities

• (1) Assets and liabilities

Unit: Yuan Currency: RMB

					Percentage
					of changes
				Percentage	in closing
		Percentage of		of closing	balance of
	Closing	closing balance		balance of	current period
	balance of	of current	Closing	last year	over the closing
	current	period over	balance of	over the total	balance of
Item	period	the total assets	last year	assets	last year	Explanation
		(%)		(%)	(%)
Monetary funds	705,374,623.91	10.83	300,948,343.56	5.37	134.38	the increase in bank
						deposits during the
						reporting period
Notes receivable	236,759,247.32	3.63	102,441,393.68	1.83	131.12	the increase in
						the repayment
						of commercial
						acceptances during
						the reporting period
Other receivables	26,238,412.56	0.40	17,023,855.78	0.30	54.13	the increase in deposits
						receivable during the
						reporting period

– 41 –

					Percentage
					of changes
				Percentage	in closing
		Percentage of		of closing	balance of
	Closing	closing balance		balance of	current period
	balance of	of current	Closing	last year	over the closing
	current	period over	balance of	over the total	balance of
Item	period	the total assets	last year	assets	last year	Explanation
		(%)		(%)	(%)
Inventories	350,755,838.04	5.38	257,598,620.68	4.60	36.16	the increase in
						inventories during
						the reporting period
Other current assets	75,201,575.98	1.15	55,139,885.94	0.98	36.38	the increase in tax to be
						deducted during the
						reporting period
Construction in progress	463,904,284.16	7.12	54,472,785.67	0.97	751.63	the increase in the
						engineering projects
						during the reporting
						period
Research and development	18,795,663.40	0.29	14,096,615.36	0.25	33.33	the increase in R&D
expenses						capitalization during
						the reporting period
Other non-current assets	210,526,823.49	3.23	33,523,206.41	0.60	528.00	the increase in
						the amount of
						prepayments
						for projects and
						equipment during the
						reporting period
Short-term borrowings	1,741,805,390.40	26.74	1,177,314,071.56	21.01	47.95	the increase in bank
						borrowings during
						the reporting period
Contract liabilities	51,270,849.77	0.79	38,214,732.27	0.68	34.17	the increase in trade
						accounts collected in
						advance during the
						reporting period
Employee compensation	21,123,689.83	0.32	38,978,819.73	0.70	-45.81	the payment of year-end
payable						bonus accrued at the
						end of the previous
						year during the
						reporting period

– 42 –

					Percentage
					of changes
				Percentage	in closing
		Percentage of		of closing	balance of
	Closing	closing balance		balance of	current period
	balance of	of current	Closing	last year	over the closing
	current	period over	balance of	over the total	balance of
Item	period	the total assets	last year	assets	last year	Explanation
		(%)		(%)	(%)
Taxes payable	44,041,196.23	0.68	116,355,071.70	2.08	-62.15	the payment of taxes
						accrued at the end
						of the previous year
						during the reporting
						period
Other current liabilities	74,534,920.98	1.14	4,888,222.00	0.09	1,424.79	the increase in the
						undue notes which
						had been endorsed
						at the end of the
						reporting period
Long-term borrowings	798,730,229.00	12.26	524,063,924.00	9.35	52.41	the increase in bank
						borrowings during
						the reporting period

(2) Major restricted assets as at the end of the reporting period

Item Monetary funds Accounts receivables financing Fixed assets Intangible assets Total	Book value at the end of the period 130,219,322.04 139,169,370.69 353,595,751.21 77,915,508.61 700,899,952.55	Reasons for restriction Deposits Pledge Mortgage Mortgage
		–

– 43 –

(3) Other explanations

1. Bank borrowings and other loans

Short-term borrowings: as at the end of the reporting period, the balance of short-term borrowings was RMB1,741,805,390.40, including mortgage borrowings of RMB150,000,000.00, guaranteed borrowings of RMB1,589,990,000.00 and interest payable of RMB1,815,390.40.

Long-term borrowings: the balance of long-term borrowings was RMB897,129,825.92 (including the balance of long-term loans due within one year amounting to RMB98,399,596.92), of which: the balance of bank borrowings of RMB875,454,113.09 and the balance of secured borrowings of non-bank financial institutions of RMB21,675,712.83.

1. Liquidity and capital resources

As at 30 June 2021, the Group had cash and cash equivalents of RMB575,155,301.87, including US dollar deposits of RMB26,410,415.39 (31 December 2020: RMB20,362,485.89) and HK dollar deposits of RMB5,964.00 (31 December 2020: RMB6,031.79), representing an increase of RMB435,924,000.05 compared with the total cash and cash equivalents of RMB139,231,301.82 as at 31 December 2020.

1. Gearing ratio

Gearing ratio is calculated based on the total liabilities at the end of the period less the balance of cash and cash equivalents and divided by net assets attributable to the parent. The gearing ratio of the Group calculated under this formula was 217.32% as at 30 June 2021, compared to 225.63% as at 31 December 2020.

1. Contingent liabilities

As at 30 June 2021, the Group had no material contingent liabilities.

1. Risk of exchange rate fluctuations

The Group’s assets, liabilities and transactions are mainly denominated in Renminbi. Therefore, fluctuations in foreign exchange rates do not have any material impact on the Group.

– 44 –

1. Save as disclosed herein, pursuant to paragraph 40 of Appendix 16 to the Hong Kong Listing Rules, the Company confirms that there were no material differences between the existing information of the Company relating to the matters as set out in paragraph 32 of Appendix 16 and the relevant information disclosed in the Company’s 2020 annual report.

(IV) Analysis of investment

As considered and approved at the 31st meeting of the ninth session of the Board of the Company and the 2021 third extraordinary general meeting of the Company, the Company has purchased 60% equity interest in North Glass in cash. The change in industrial and commercial registration was completed on 4 August 2021. Upon the completion of this transaction, North Glass will be incorporated into the scope of consolidated financial statements of the Company.

(V) Analysis of major controlled and investee companies

Unit: Yuan Currency: RMB

		Major products	Registered
Company name	Industry	or services	capital	Total assets	Net assets	Net profit
CLFG Longmen Glass Co. Ltd.	New materials	Information display	70,000,000.00	83,161,022.77	-511,614,934.94	-9,785,733.45
		glass
CLFG Longhai Electronic	New materials	Information display	100,000,000.00	464,898,891.04	169,968,523.92	31,395,486.91
Glass Limited		glass
Bengbu China National	New materials	Information display	632,764,300.00	813,526,149.23	776,878,095.92	3,957,274.38
Building Materials		glass
Information Display
Materials Co., Ltd.
CNBMG (Puyang)	New materials	New energy glass	240,000,000.00	785,298,457.04	275,713,636.80	28,510,053.83
Photoelectric Material Co.,
Ltd.
CNBM (Hefei) New Energy	New materials	New energy glass	268,000,000.00	1,622,010,374.69	577,127,961.07	78,674,362.16
Co., Ltd.
CNBM (Tongcheng) New	New materials	New energy glass	133,388,980.00	1,257,142,667.22	379,865,519.07	42,202,706.22
Energy Materials Co., Ltd.
CNBM (Yixing) New Energy	New materials	New energy glass	313,700,000.00	1,390,743,427.77	515,379,165.86	72,380,577.05
Resources Co., Ltd

– 45 –

V. CORPORATE GOVERNANCE

1. Repurchase, Sale and Redemption of Shares

During the reporting period, the Company and any of its subsidiaries did not carry out other repurchase, sale or redemption of any securities of the Company.

2. Audit Committee

The audit committee of the Board of the Company has reviewed this interim report.

3. Compliance with the Corporate Governance Code

During the reporting period, the Company has complied with all the code provisions of the Code on Corporate Governance Practices set out in Appendix 14 to the Listing Rule of the Stock Exchange.

4. Compliance with the Model Code

Having made specific enquiries to all directors and supervisors of the Company, all directors and supervisors have confirmed that they have complied with the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules of the Stock Exchange during the reporting period.

– 46 –

5. Employees and Remuneration Policy

As at 30 June 2021, the number of employees listed on the payroll register of the Group was 2,965. An annual remuneration system is adopted for the management of the Company and its subsidiaries while a position plus skill-based salary system is adopted for the employees of the Company. In addition, according to relevant national, provincial and municipal policies, employees of the Company are also entitled to the “five insurance payments and housing provident fund”, paid leave, paid training and other treatments.

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

Luoyang, the PRC 17 August 2021

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

• For identification purposes only

– 47 –