RoboSense Technology Co., Ltd — Capital/Financing Update 2021

Nov 26, 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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VOLUNTARY ANNOUNCEMENT ANNOUNCEMENT ON THE INVESTMENT OF A CONTROLLED SUBSIDIARY IN THE CONSTRUCTION OF SOLAR PHOTOVOLTAIC CELL PACKAGING MATERIAL PROJECT

This announcement is made voluntarily by Luoyang Glass Company Limited* (the “ Company ”, together with its subsidiaries, the “ Group ”) to inform the shareholders of the Company and potential investors of the latest news of business development of the Group.

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 in this announcement, and accept joint responsibilities for any false information, misleading statements or material omissions in this announcement.

I. OVERVIEW OF THE INVESTMENT PROJECT

In order to seize the market opportunities in the new energy industry, further enhance the overall strength and market competitiveness of the Company in terms of the photovoltaic glass business and increase the profitability of the Company, Qinhuangdao North Glass Co., Ltd.* ( 秦皇島北方玻璃有限公司 ) (“ North Glass ”), a controlled subsidiary of the Company, intends to invest in the construction of the solar photovoltaic cell packaging material project.

On 26 November 2021, the Board considered and approved North Glass’s proposed investment in the construction of the solar photovoltaic cell packaging materials project (the “ Project ”).

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II. BASIC INFORMATION ON THE INVESTMENT PROJECT

Project name: Solar photovoltaic cell packaging material project of North Glass

• Construction entity:

  • North Glass

• Construction nature:

  • New construction

• Construction site:

  • Yaohua Hi-Tech Industrial Park in the East District of the Qinhuangdao Economic Development Zone

• Construction details:

• Construction of one production line for solar substrates and five supporting deep processing production lines with a capacity of 1200t/d (one furnace and five lines). Construction of supporting power supply and distribution system, compressed air stations, water supply and drainage system, waste heat power generation system, desulfurization, denitrification and dust removal system, water treatment and circulating water system and other public and auxiliary facilities.

Implementation Schedule

The total construction period of the Project is estimated to be 16 months.

Total Investment and Financing Method

T h e e s t i m a t e d t o t a l i n v e s t m e n t o f t h e P r o j e c t i s a p p r o x i m a t e l y RMB1,184,510,000. In particular, RMB1,141,180,000 will be construction investment, of which RMB350,000,000 will be resolved by the construction unit through self-raising, and the remaining RMB791,180,000 will be covered by bank loans to be applied for. The interest during the construction period will be RMB13,330,000.

After being put into production, the Project will need initial working capital of RMB30,000,000, which will be resolved by the construction unit through selfraising. The remaining working capital will be covered by bank loans to be applied for.

Expected Benefits

After the completion of the Project, it is expected that the average annual sales revenue will be approximately RMB1,211,235,800, and the average annual aftertax profit will be approximately RMB146,817,300. The investment payback period of the Project is 6.76 years (including construction period, after income tax).

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III. IMPACT ON THE COMPANY AFTER THE COMPLETION OF THE PROJECT

After the construction of the Project has been completed and put into production, the Project will further enhance the Company’s overall strength and market competitiveness in terms of the photovoltaic glass business, increase its profitability and improve its competitiveness and sustainable development capabilities in the industry.

IV. RISK ANALYSIS OF THE INVESTMENT PROJECT

1. The Project has a long construction period, the construction cost thereof is subject to the actual conditions and market fluctuations, and there is a risk that the actual construction cost might be higher than expected.

2. The total capital investment of the Project is large, and there are uncertainties in financing and whether funds will be available in a timely manner.

3. The expected benefits of the Project are based on current estimates. As the market competition intensifies, the expected benefits of the Project are subject to certain uncertainties.

4. The Project is subject to consideration and approval at the general meeting of the Company.

V. APPROVAL PROCEDURES FOR THE PROJECT

Since the investment amount of the Project exceeds 50% of the latest audited net assets of the Company, the Project shall be subject to consideration and approval at the general meeting of the Company according to the requirements of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. The Company will despatch a notice of the general meeting containing, among other things, the Project to the shareholders of the Company in due course.

VI. OPINION OF THE BOARD

The Directors (including independent non-executive Directors) are of the view that the terms of and the resolution relating to the Project are fair and reasonable, and in the interest of the Company and its Shareholders as a whole. Therefore, the Directors recommend the Shareholders to vote for the relevant ordinary resolution to be proposed at the general meeting of the Company.

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Depending on the subsequent development and progress, the Company will perform the corresponding approval procedures and information disclosure obligations in accordance with relevant laws and regulations.

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

Luoyang, the PRC 26 November 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

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