RoboSense Technology Co., Ltd — Regulatory Filings 2016

Mar 18, 2016

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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ANNOUNCEMENT IN RELATION TO THE ACCRUAL AND WRITE-OFF OF IMPAIRMENT PROVISION OF THE COMPANY’S ASSETS IN THE YEAR 2015

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

On 17 March 2016, the Company convened the 5th meetings of the 8th Board which passed the resolutions in relation to the accrual and write-off of impairment provision of the Company’s assets in the year 2015. In order to accurately reflect the Company’s financial and operational situation in the year 2015, the Company would conduct a review on every asset, and conduct asset impairment test on assets which show any indication of impairment at the end of each year, according to the Accounting Standards for Business Enterprises of the Peoples’ Republic of China and the accounting policy of the Company. When the net realizable value of any asset is expected to be lower than its book value, asset impairment provision will be made upon recognition or measurement. At the same time, the recovered or irrecoverable assets will be reversed or written-off respectively. The accrued, reversed and written-off impairment provisions of each asset in the year 2015 were as follows after testing:

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A. PROVISION FOR BAD DEBT

• a) Provision for bad debts amounted to RMB93,458,100 in the year 2015.

  1. As the asset restructuring of the Company was completed, the Company has disposed its subsidiaries, CLFG Longfei Glass Co. Ltd.* (洛玻 集團龍飛玻璃有限公司) (“ Longfei Glass ”) and CLFG Longxiang Glass Co. Ltd* (洛玻集團龍翔玻璃有限公司) (“ Longxiang Glass ”). The difference between the debt recoverable (excluding entrusted loans) of RMB270,787,100, and the actual amount recovered of RMB187,606,300, was recognized as bad debt loss. An increase of asset impairment loss of RMB83,180,800 was shown in the consolidated financial statements.

  2. In accordance with the Company’s normal bad debt policy analysis for the accrual of the provision for bad debt, there was an increase of asset impairment loss of RMB10,277,300 reflected in the consolidated financial statements, in which the bad debt provision for accounts receivable amounted to RMB3,607,400 and the bad debt provision for other receivables amounted to RMB6,669,900.

• b) Reversal of provision for bad debt amounted to RMB4,900.

• c) Provision for bad debt in the amount of RMB83,191,600 was written off, which was mainly attributed to the write-off of the provision for bad debt of RMB83,180,800 due to the disposal of the subsidiaries, Longfei Glass and Longxiang Glass.

• d) The scope of consolidation was reduced upon the completion of asset restructuring. Therefore, the provision for bad debt was reduced by the amount of RMB9,153,000.

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B. PROVISION FOR INVENTORIES IMPAIRMENT

• a) Inventories are measured at the lower of cost and net realizable value during the reporting period. The inventories impairment provision, i.e. the difference between the book value and the net realizable value of the inventories, in the amount of RMB37,669,700 was recorded.

• b) Reversal of provision for inventories impairment amounted to RMB657,700.

• c) The inventories, for which the impairment provision was accrued, were sold during the reporting period. The corresponding written-off inventories impairment provision amounted to RMB44,257,200.

• d) The scope of consolidation was reduced and thus the impairment provision decreased by RMB10,383,700.

C. PROVISION FOR HELD-TO-MATURITY INVESTMENT IMPAIRMENT

An increase of asset impairment provision in the amount of RMB191,038,900 was recorded in the consolidated financial statements upon completion of asset restructuring, i.e. the provision for held-in-maturity investment impairment which was due to the difference between the held-to-maturity investment of Longfei Glass and CLFG Luoyang Longhao Glass Company Limited* (洛玻集 團洛陽龍昊玻璃有限公司) (subsidiaries being disposed) (i.e. entrusted loans) of RMB207,089,000 and the actual amount recovered of RMB16,050,100. At the same time, the provision in an amount of RMB191,038,900 was written-off due to the disposal.

D. PROVISION FOR FIXED ASSETS IMPAIRMENT

• a) In accordance with the accounting standards, the Company conducted a review on its fixed assets at the end of 2015, and engaged an asset evaluation institution to conduct an appraisal on the relevant assets. According to the appraisal result, the provision in an amount of RMB1,513,500 was accrued as the provision for fixed assets impairment.

• b) The scope of consolidation was reduced and thus the provision for impairment of fixed assets decreased by RMB16,719,500.

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E. PROVISION FOR INTANGIBLE ASSETS IMPAIRMENT

The scope of consolidation was reduced and thus the provision for intangible assets impairment decreased by RMB1,149,700.

F. PROVISION FOR CONSTRUCTION IN PROGRESS IMPAIRMENT

The scope of consolidation was reduced and thus the provision for construction in progress impairment decreased by RMB957,500.

The Board considers that the accrual and write-off of asset impairment provision was made in accordance with the accounting policy, accounting evaluation, policy and practical situation of the assets of the Company. These accrual and write-off of asset impairment provision sufficiently and fairly reflects the financial and operational situation of the Company.

By order of the Board LUOYANG GLASS COMPANY LIMITED Zhang Chong* Chairman

Luoyang, the PRC 18 March 2016

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; three non-executive Directors: Mr. Zhang Chengong, Mr. Xie Jun and Mr. Tang Liwei; and four independent non-executive Directors: Mr. Jin Zhanping, Mr. Liu Tianni, Mr. Ye Shuhua and Mr. He Baofeng.

• For identification purpose only

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