Flat Glass : THIRD QUARTERLY REPORT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

Hong Kong Exchange 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.

福 萊 特 玻 璃 集 團 股 份 有 限 公 司

Flat Glass Group Co., Ltd.

(a joint stock company incorporated in the People's Republic of China with limited liability)

(stock code: 6865)

THIRD QUARTERLY REPORT

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

This announcement is made by the Company pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Pursuant to the regulations of the China Securities Regulatory Commission, the Company is required to publish a quarterly report for each of the first and third quarters. This quarterly report was prepared in accordance with the relevant requirements in relation to information disclosure of quarterly reports of listed companies issued by China Securities Regulatory Commission.

All financial information set out in this quarterly report is unaudited and prepared in accordance with the revised Chinese Accounting Standards for Business Enterprises.

The Audit Committee of the Company has reviewed the unaudited results of the Group for the third quarter ended 30 September 2019.

The contents of this quarterly report as set out below are consistent with the announcement published on the Shanghai Stock Exchange. The quarterly report is originally prepared in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

1. IMPORTANT NOTICE

1.1 The board of directors, the supervisory committee, directors, supervisors and senior management of Flat Glass Group Co., Ltd. (the "Company" together with its subsidiaries, collectively referred to as the "Group") warrant that the information contained in the quarterly report are true, accurate and complete, and there are no false statements, misleading representations or material omissions, and are jointly and severally responsible for the liabilities of the Company.

1

1. All directors of the Company have attended the board meeting to approve this quarterly report.
2. Ruan Hongliang (legal representative of the Company), Jiang Weijie (person-in-charge of accounting affairs) and Jin Huiping (person-in-charge of the accounting department) warrant that the truthfulness, accuracy and completeness of the content of this quarterly report.
3. The third quarterly report of the Company is unaudited.

2. GENERAL INFORMATION

1. Key financials

			Unit:RMB
			Increase/decrease
	As at 30	As at 31	compared to end of
	September 2019	December 2018	last year %
Total assets	8,540,494,658.97	6,953,549,102.12	22.82
Equity attributable to owner's
of the Company	4,361,344,897.82	3,668,653,664.03	18.88
			Increase/decrease
	For the nine	For the nine	compared to the
	months ended 30	months ended 30	same period of last
	September 2019	September 2018	year %
Net cash inflow/(outflow)
from operating activities	215,296,633.48	323,257,456.69	-33.40
			Increase/decrease
	For the nine	For the nine	compared to the
	months ended 30	months ended 30	same period of last
	September 2019	September 2018	year %
Revenue	3,380,557,421.4	2,258,017,033.23	49.71
Net profit attributable to
equity owner of the
Company	507,523,407.12	289,876,191.39	75.08
Net profit attributable to
equity owner of the
Company excluding non-
recurring items	477,219,919.89	273,726,498.75	74.34

2

			Increase/decrease
	As at 30	As at 31	compared to end of
	September 2019	December 2018	last year %
Weighted average return on
equity (%)	12.38	8.54	3.84
Basic earnings per share
(RMB)	0.26	0.16	62.5
Diluted earnings per share	Nil	Nil
Non-recurring item
√ Applicable  □ Not Applicable
			Unit:RMB
		For the three
		months from	For the nine
		1 July to 30	months ended
Items		September 2019	30 September 2019
Gains/(losses) on disposal of non-current assets	615,186.12	2,051,506.42
Government grants recorded as other income,

• expect for government grants that are closely
• related to the Company's business or given at
• a fixed quota or amount in accordance with

government policies	7,382,775.56	32,628,023.49
Apart from hedging instruments relating to the

• normal operations of the Company, profit or loss
• from change in fair value of held-for-trading
• financial assets and held-for-trading financial
• liabilities, and investment income from disposal
• of held-for-trading financial assets, held-for-
• trading financial liabilities and available for-sale

	financial assets	-3,412,213.55	373,337.40
Other non-operating income/(expenses) other
	than above	1,004,610.68	2,237,573.8
Effects of income tax	-818,648.55	-6,986,953.88
Total	4,771,710.26	30,303,487.23

3

2.2 Total number of shareholders, the shareholding of top ten shareholders and top ten tradable shareholders (or unrestricted shareholders) as at the end of the reporting period.

						Unit: Share
Total number of shareholders(shareholder)					36,738
		Shareholding of top ten shareholders
	Shareholding
Name of shareholders	at the end	Percentage	Restricted
(in full)	of period	(%)	shareholding	Pledge or locked-up	Nature of shareholders
				Status	Number

HKSCC Nominees Limited

• 香港中央結算（代理人）

有限公司	452,028,128	23.18	0	Unknown	Unknown
Ruan Hongliang	439,358,400	22.53	439,358,400	Nil	Domestic natural person
Ruan Zeyun	350,532,000	17.98	350,532,000	Nil	Domestic natural person
Jiang Jinhua	324,081,600	16.62	324,081,600	Nil	Domestic natural person
Zheng Wenrong	57,780,000	2.96	57,780,000	Nil	Domestic natural person
Zhu Quanming	38,520,000	1.98	38,520,000	Nil	Domestic natural person
Shen Fuquan	38,520,000	1.98	38,520,000	Nil	Domestic natural person
Wei Yezhong	19,260,000	0.99	19,260,000	Nil	Domestic natural person
Tao Hongqiang	15,408,000	0.79	15,408,000	Nil	Domestic natural person
Wei Zhiming	12,840,000	0.66	12,840,000	Nil	Domestic natural person
Shen Qifu	12,840,000	0.66	12,840,000	Nil	Domestic natural person
Tao Hongzhu	12,840,000	0.66	12,840,000	Nil	Domestic natural person

4

Shareholding of top ten unrestricted shareholders
	Number of
	unrestricted
	tradable shares
Name of shareholders	held	Class and number of shares
		Class	Number
HKSCC Nominees Limited		Overseas listed
香港中央結算（代理人）有限公司	449,832,800	foreign shares	449,832,800
HKSCC Nominees Limited		RMB ordinary
香港中央結算（代理人）有限公司	2,195,328	shares	2,195,328

China Merchants Bank Co., Ltd. -

• Fuguo Science and Technology
• Innovation Theme Closed Operation
• for 3 Years Flexible Allocation of
• Hybrid Securities Investment Fund
• ( 招商銀行股份有限公司－富國科創

	主題3 年封閉運作靈活配置混合型		RMB ordinary
	證券投資基金)	3,101,100	shares	3,101,100
Bank of China Limited - Dacheng
Small and Medium-sized
	Mixed Securities Investment
	Fund (LOF) ( 中國銀行股份有限
	公司－大成中小盤混合型證券		RMB ordinary
	投資基金（LOF）)	2,260,400	shares	2,260,400

China Construction Bank Corporation

• Limited - Fuguo Science and
• Technology Innovation Flexible
• Allocation of Hybrid Securities
• Investment Fund ( 中國建設銀行

	股份有限公司－富國科技創新靈活		RMB ordinary
	配置混合型證券投資基金)	2,247,500	shares	2,247,500
Bank of China - Merchants Vanguard
	Securities Investment Fund
	( 中國銀行－招商先鋒證券		RMB ordinary
	投資基金)	1,580,818	shares	1,580,818

Industrial and Commercial Bank

• of China Limited - Fuguo High-tech
• Industry Hybrid Securities
• Investment Fund ( 中國工商銀行

股份有限公司－富國高新技術產業		RMB ordinary
混合型證券投資基金)	1,411,400	shares	1,411,400

5

Shareholding of top ten unrestricted shareholders

	Number of
	unrestricted
	tradable shares
Name of shareholders	held	Class and number of shares
		Class	Number

Shanghai PingAn HeDing

• Investment&Management Co.,Ltd -
• PingAn HeDing* Congrong Macro
• Hedge No.2 Private Equity
• Investment Fund ( 上海平安闔鼎 投資管理有限責任公司－平安

闔鼎* 從容宏觀對沖2 號私募證券		RMB ordinary
投資基金)	1,396,000	shares	1,396,000
		RMB ordinary
Ji Wenxing	1,377,700	shares	1,377,700
Shanghai Congrong Investment
Management Co., Ltd. - Congrong
Macro Hedge No.3 Private Equity
Investment Fund ( 上海從容投資
管理有限公司－從容宏觀對沖3 號		RMB ordinary
私募證券投資基金)	1,180,481	shares	1,180,481
Shanghai Congrong Investment
Management Co., Ltd. - Congrong
All-Weather Phase I Private Equity
Investment Fund ( 上海從容投資
管理有限公司－從容全天候1 期		RMB ordinary
私募證券投資基金)	894,900	shares	894,900
relationship of the above shareholders Ruan Hongliang,	Jiang Jinhua, Ruan Zeyun and Zhao
or the parties acting in concert	Xiaofei are parties acting in concert and Zhao Xiaofei
	held 4,800,000 shares.
Explanatory statement regarding
the restored voting rights and
shareholdings of holders of
preference shares	Nil

6

2.3 Total number of and top ten holders of preference shares and their unrestricted shareholdings as at the end of the reporting period.

• Applicable  √ Not Applicable

3 IMPORTANT NOTICE

3.1 Significant changes in major financial statements item and financial indicators and the reason thereof.

• Applicable □Not Applicable

1. Significant changes in balance sheet items and the reasons thereof as at the end of reporting period.

						Unit: RMB
		As at 30	As at	Increase/
Items	September 2019	31 December 2018	decrease %	Main reasons for the changes
Derivative financial	1,530,469.22	6,172,390.30	-75.20	Mainly due to changes in fair value of
	asset				derivative financial assets at the end of
						the period
Bills receivables	1,663,588,563.44	911,294,531.23	82.55	Mainly due to the increase in the amount
					of endorsed bills receivables at the end
						of the period
Trade receivables	1,088,108,246.69	821,195,179.32	32.50	Mainly due to the expansion of sales
						scale
Other receivables	2,093,178.48	1,296,794.21	61.41	Mainly due to the increase in margin
						receivable
Fixed asset	3,080,490,177.69	2,166,275,875.65	42.20	Mainly due to the transfer of construction
					projects under construction to fixed
					assets during the period
Construction in progress	659,634,022.48	962,570,065.48	-31.47	Mainly due to the transfer of construction
					in progress to fixed assets during the
						period
Deferred tax assets	451,071.19	19,005,748.81	-97.63	Mainly due to the reduction of temporary
						differences
Short-term borrowing	975,047,568.27	450,399,136.69	116.49	Mainly due to the increase in short-term
					borrowings at the end of the period
Derivative financial	4,062,014.99	738,000.00	450.41	Mainly due to changes in the fair value
	liabilities				of derivative financial liabilities at
					the end of the period

7

		As at 30	As at	Increase/
Items	September 2019	31 December 2018	decrease %	Main reasons for the changes
Payables	1,637,603,909.78	1,216,541,204.11	34.61	Mainly due to the increase in the balance
					payables to suppliers at the end of
						the current period
Contract liabilities	22,497,610.01	14,042,379.21	60.21	Mainly due to the increase of receipts in
					advance from customers at the end of
						the period
Tax payables	113,011,886.17	81,681,336.98	38.36	Mainly due to the increase of enterprise
					income tax payable at the end of the
						period
Other payables	53,443,437.77	38,681,381.51	38.16	Mainly due to the increase in margin
					payable at the end of the period
Including: interest	3,656,537.18	1,562,660.53	133.99	Mainly due to an increase in interest
	payables				payables at the end of the period
Non-current liabilities	795,793,660.70	188,738,000.00	321.64	Mainly due to the long-term borrowings
	within one year				will be due within one year
Long-term borrowings	281,612,410.30	989,439,412.61	-71.54	Mainly due to the long-term borrowings
					will be due within one year
Capital surplus	839,115,113.41	622,230,162.41	34.86	Mainly due to the premium of A-share
						issuance
Other comprehensive	11,983,450.07	-4,685,190.57	355.77	Mainly due to foreign currency
	income				translation differences caused by
						exchange rate changes

2. Significant changes in income statement items and the reasons thereof during the reporting current period

				Unit: RMB
	As at	As at
	30 September	30 September	Increase/
Items	2019	2018	decrease %	Main reasons for the changes
Operating revenue	3,380,557,421.40	2,258,017,033.23	49.71	Mainly due to the expansion of sales
				of PV glass
Operating cost	2,360,515,329.24	1,658,795,444.96	42.3	Mainly due to the growth of total
				operating income and operating costs
				in the same direction
Selling expense	169,769,281.84	86,195,726.39	96.96	Mainly due to the increase in sales
				volume of principle products, resulting
				in an increase in sales freight
Research and	142,059,127.55	80,864,649.05	75.68	Mainly due to new research and
development expense				development projects

8

		As at	As at
		30 September	30 September	Increase/
Items	2019	2018	decrease %	Main reasons for the changes
Financial expense	38,487,074.84	-6,619,683.30	681.4	Mainly due to an increase in interest
					expenses due to an increase in short-
					term borrowing and exchange losses
					due to changes in foreign exchange
						rates
Other income	25,307,656.37	18,248,627.43	38.68	Mainly as a result of the increase in
					income-related government subsidies
					received in the current period
Investment income	8,339,273.47	-16,523,599.78	150.47	Mainly due to the disposal of derivative
					financial instruments during the
						current period
Profit arising from	-7,965,936.07	10,274,474.91	-177.53	Mainly due to changes in the fair value
changes in fair value				of derivative financial instruments
					during the current period
Credit impairment loss	5,823,978.31	-8,997,798.52	164.73	Mainly due to recovery of credit
						impairment losses
Impairment of financial	786,062.67	-1,720,676.40	145.68	Mainly due to recovery of impairment of
	asset					inventory depreciation provision
Gains on disposal of	2,051,506.42	-102,037.99	2110.53	Mainly due to gains on disposal of fixed
	assets					assets
Non-operating income	12,526,741.97	5,949,743.39	110.54	Mainly as a result of the increase in
						government subsidies
Non-operating expense	183,367.62	79,714.46	130.03	Mainly due to increased expenditure on
						public donations
Income tax expense	107,278,095.90	50,371,665.51	112.97	Mainly attributable to the increase in total
					profit during the current period

3. Significant changes in cash flow items and the reasons thereof during the reporting current period

				Unit: RMB
	As at	As at	Increase/
Items	30 September 2019	30 September 2018	decrease %	Main reasons for the changes
Net Cash flow from	215,296,633.48	323,257,456.69	-33.40	Mainly due to the increase in cash
operating activities				payments for goods purchased and
				services received, as well as other cash
				payments related to operating activities

9

3.2 Analysis of significant events and their impact and solution

• Applicable □ Not Applicable

The resolution of Report on the Company's Compliance of the Conditions for the Proposed Issuance of A Share Convertible Bonds, A Share Convertible Bonds Issuance Plan and other resolutions relating to the issuance of A share convertible bonds were approved at the 2018 Annual Meeting, 2019 First A Shareholders' Class Meeting and 2019 First H Shareholders' Class Meeting held on 24 June 2019.

On 6 September 2019, the Company received the Acceptance Notice of the Application for Administration Permission (No. 192383) issued by the China Securities Regulatory Commission (hereinafter referred to as "CSRC").The CSRC has examined the application materials for administrative permission submitted by the Company and decided to accept the application for administrative permission because the application materials are complete and conform to the legal form.

On 24 October 2019, the Company received the Notice of Feedback from the CSRC on First Examination Report of the Application for Administration Permission Project (No. 192383) issued by the CSRC. The Company and relevant intermediaries will follow the requirements of the above notice to make a written reply in time and submit the relevant materials to the administration permission acceptance department of the CSRC.

1. Uncompleted Performance of Overdue Undertaking for the Reporting Period
2. • Applicable √ Not Applicable
3. Warnings on the Forecast of Possible Losses or Substantial Year-on-Year Changes to be Recorded in Cumulative Net Profit from Beginning of the Year to the End of the Next Reporting Period and the Underlying Reasons.
4. • Applicable √ Not Applicable

Name of the Company	Flat Glass Group Co., Ltd.
Legal representative	Ruan Hongliang
Date

10

4. APPENDIX

4.1 Financial Statements

Consolidated Balance Sheet As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.

	Unit:RMB   Type of audit:unaudited
	As at 30	As at 31
Items	September 2019	December 2018
Current assets:
Cash at bank and on hand	532,255,940.96	683,018,973.73
Derivative financial asset	1,530,469.22	6,172,390.3
Bills receivables	1,663,588,563.44	911,294,531.23
Accounts receivables	1,088,108,246.69	821,195,179.32
Advance payment	66,251,360.79	65,474,835.88
Other receivable	2,093,178.48	1,296,794.21
Inventories	480,330,278.66	377,123,199.96
Other current assets	144,405,936.73	181,666,205.48
Total current assets	3,978,563,974.97	3,047,242,110.11
Non-current assets:
Investment properties	22,023,039.43	23,096,642.23
Fixed assets	3,080,490,177.69	2,166,275,875.65
Construction in progress	659,634,022.48	962,570,065.48
Intangible assets	600,254,336.23	536,809,851.25
Long-term prepaid expense	2,264,385.63	2,777,526.55
Deferred income tax assets	451,071.19	19,005,748.81
Other non-current assets	196,813,651.35	195,771,282.04
Total non-current assets	4,561,930,684	3,906,306,992.01
Total assets	8,540,494,658.97	6,953,549,102.12

11

				As at 30	As at 31
Items			September 2019	December 2018
Current liabilities:
Short-term borrowings	975,047,568.27	450,399,136.69
Derivative financial liabilities	4,062,014.99	738,000
Bills payables	228,029,739.82	219,832,038.07
Accounts payables	1,637,603,909.78	1,216,541,204.11
Contract liabilities	22,497,610.01	14,042,379.21
Payroll payables	19,546,588.65	26,225,994.20
Tax payables	113,011,886.17	81,681,336.98
Other payables	53,443,437.77	38,681,381.51
Including: Interest payables	3,656,537.18	1,562,660.53
			Non-current liabilities due within
			one year	795,793,660.70	188,738,000.00
Total current liabilities	3,849,036,416.16	2,236,879,470.77
Non-current liabilities:
Long-term borrowings	281,612,410.30	989,439,412.61
Deferred income	48,500,934.69	58,576,554.71
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities	330,113,344.99	1,048,015,967.32
Total liabilities	4,179,149,761.15	3,284,895,438.09
Owner's Equity
Share capital	487,500,000.00	450,000,000.00
Capital surplus	839,115,113.41	622,230,162.41
Other comprehensive income	11,983,450.07	-4,685,190.57
Special reserve	11,289,862.43	9,425,627.41
Surplus reserve	168,158,907.37	168,158,907.37
Undistributed profit	2,843,297,564.54	2,423,524,157.41
Equity attributable to owners of the
	parent company	4,361,344,897.82	3,668,653,664.03
Total owner's equity	4,361,344,897.82	3,668,653,664.03
Total liabilities and owner's equity	8,540,494,658.97	6,953,549,102.12

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

12

Parent Company Balance Sheet

As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.
	Unit: RMB   Type of audit: unaudited
	As at 30	As at 31
Items	September 2019	December 2018
Current assets:
Cash at bank and on hand	215,302,593.64	248,453,770.98
Derivative financial asset	1,530,469.22	4,970,224.71
Bills receivables	1,308,718,062.71	774,398,067.88
Accounts receivables	643,513,637.77	502,280,814.30
Advance payment	32,418,942.28	39,136,580.02
Other receivable	272,009,039.29	115,299,644.49
Inventories	221,776,505.30	162,383,851.02
Other current assets	5,558,925.90	24,941,889.24
Total current assets	2,700,828,176.11	1,871,864,842.64
Non-current assets:
Long-term equity investment	1,043,137,343.00	786,137,343.00
Fixed assets	1,090,353,378.87	927,127,844.80
Construction in progress	98,997,681.09	243,785,148.44
Intangible assets	165,847,063.78	131,628,507.77
Long-term prepaid expense	210,657.38	265,068.34
Deferred income tax assets	1,408,530.87	10,881,999.81
Other non-current assets	314,701,307.67	788,994,654.72
Total non-current assets	2,714,655,962.66	2,888,820,566.88
Total assets	5,415,484,138.77	4,760,685,409.52
Current liabilities:
Short-term borrowings	668,626,338.3	328,446,377.87
Derivative financial liabilities	738,000
Bills payables	90,140,099.23	88,051,988.88
Accounts payables	840,287,499.26	745,246,372.34
Contract liabilities	9,428,609.37	4,662,060.73
Payroll payables	9,404,273.93	14,964,926.68
Tax payables	25,740,547.54	3,721,807.65
Other payables	497,500,464.58	632,131,765.44
Including: interest payables	9,998,892.28	9,851,014.20
Total current liabilities	2,141,127,832.21	1,817,963,299.59

13

	As at 30	As at 31
Items	September 2019	December 2018
Non-current liabilities:
Deferred income	37,307,411.97	45,599,630.00
Total non-current liabilities	37,307,411.97	45,599,630.00
Total liabilities	2,178,435,244.18	1,863,562,929.59
Owner's equity
Share capital	487,500,000.00	450,000,000.00
Capital surplus	839,115,113.41	622,230,162.41
Surplus reserve	168,158,907.37	168,158,907.37
Undistributed profit	1,742,274,873.81	1,656,733,410.15
Total owner's equity	3,237,048,894.59	2,897,122,479.93
Total liabilities and owner's equity	5,415,484,138.77	4,760,685,409.52

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

14

Consolidated Income Statement

As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.

		Unit: RMB   Type of audit: unaudited
	For the three	For the three	For the nine	For the nine
	months ended	months ended	months ended	months ended
	30 September	30 September	30 September	30 September
Items	2019	2018	2019	2018
I. Total Operating income	1,345,921,851.92	795,605,301.13	3,380,557,421.40	2,258,017,033.23
Including: Operating income	1,345,921,851.92	795,605,301.13	3,380,557,421.40	2,258,017,033.23
II. Total operating costs	1,060,694,159.17	705,156,192.18	2,812,441,833.90	1,924,818,194.91
Including: Operating cost	898,716,670.65	614,657,164.66	2,360,515,329.24	1,658,795,444.96
Tax and surcharges	7,672,930.28	4,868,137.10	20,273,492.31	19,510,936.66
Selling expenses	73,782,139.74	38,503,081.40	169,769,281.84	86,195,726.39
Administrative expense	29,020,632.92	32,495,968.52	81,337,528.12	86,071,121.15
Research and development expense	37,668,122.94	31,046,247.58	142,059,127.55	80,864,649.05
Financial expense	13,833,662.64	-16,414,407.08	38,487,074.84	-6,619,683.30
Including: Interest expense	16,632,107.09	9,273,171.09	48,022,209.18	16,514,246.99
Interest income	4,311,743.89	6,228,875.51	14,857,788.01	14,441,637.58
Add: Other income	5,237,197.17	7,058,681.74	25,307,656.37	18,248,627.43
Investment income (loss stated with "-")	1,399,677.22	-2,179,367.72	8,339,273.47	-16,523,599.78
Profit arising from fair value
(loss stated with "-")	-4,811,890.77	-460,314.50	-7,965,936.07	10,274,474.91
Credit impairment loss
(loss stated with "-")	11,346,226.85	-1,934,197.19	5,823,978.31	-8,997,798.52
Asset impairment loss
(loss stated with"-")	1,067,909.32	-612,376.14	786,062.67	-1,720,676.40
Asset disposal income
(loss stated with "-")	615,186.12	41,894.46	2,051,506.42	-102,037.99
III.Operaing profit (loss stated with "-")	300,081,998.66	92,363,429.60	602,458,128.67	334,377,827.97
Add: non-operating income	4,450,839.64	317,999.83	12,526,741.97	5,949,743.39
Less: non-operating expenses	138,131.39	38,739.34	183,367.62	79,714.46
IV.Total profit (total loss stated with "-")	304,394,706.91	92,642,690.09	614,801,503.02	340,247,856.90
Less: Income tax expense	58,290,786.69	15,651,629.80	107,278,095.90	50,371,665.51
V. Net profit (net loss stated with "-")	246,103,920.22	76,991,060.29	507,523,407.12	289,876,191.39
1. Classified on a going concern basis
Net profit from continuing operation
(net loss stated with "-")	246,103,920.22	76,991,060.29	507,523,407.12	289,876,191.39
2. Classified according to ownership
Attributable to equity owners of the parent
company (net loss stated with "-")	246,103,920.22	76,991,060.29	507,523,407.12	289,876,191.39

15

	For the three	For the three	For the nine	For the nine
	months ended	months ended	months ended	months ended
	30 September	30 September	30 September	30 September
Items	2019	2018	2019	2018
VI.Other comprehensive income, net of tax	18,885,005.60	16,328,923.36	16,668,640.64	17,440,125.71
Other comprehensive income, net of tax
attributed to owner's of parent company	18,885,005.60	16,328,923.36	16,668,640.64	17,440,125.71
Other comprehensive income which will
be reclassified to gain or loss	18,885,005.60	16,328,923.36	16,668,640.64	17,440,125.71
Exchange differences on foreign currency
financial statements translation	18,885,005.60	16,328,923.36	16,668,640.64	17,440,125.71
VII.Total comprehensive income	264,988,925.82	93,319,983.65	524,192,047.76	307,316,317.10
Attributable to owners' of the Company	264,988,925.82	93,319,983.65	524,192,047.76	307,316,317.10
VIII.Earnings per share
Basic earnings per share	0.12	0.04	0.26	0.16
Diluted earnings per share	Nil	Nil	Nil	Nil

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB 0, and the net profit recognized by the merged party in the previous period was RMB 0.

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

16

Parent Company Income Statement

As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.

			Unit: RMB   Type of audit: unaudited
		For the three	For the three	For the nine
		months ended	months ended	months ended	For the nine
		30 September	30 September	30 September	months ended 30
Items		2019	2018	2019	September 2018
I. Operating income	977,087,431.41	576,526,141.27	2,464,476,954.09	1,551,976,385.29
Less: Operating costs	816,871,510.97	501,612,096.85	2,094,804,188.56	1,213,194,990.57
Tax and surcharges	3,289,576.52	1,623,441.66	7,781,212.78	8,333,931.94
Selling expenses	15,094,491.76	17,887,822.01	42,883,862.82	43,040,877.88
Administrative expenses	16,205,652.97	18,906,064.27	51,819,461.41	53,186,073.62
Research and development
	expense	13,925,559.13	25,163,474.98	63,773,986.25	58,898,296.69
Financial expense	14,700,329.74	12,067,160.55	24,570,835.90	25,740,953.81
Including: Interest expense	8,932,686.85	1,098,449.71	23,119,496.27	11,670,677.66
	Interest income	2,228,168.35	4,884,029.83	9,894,872.14	10,063,462.02
Add: Other income	2,764,072.68	2,559,167.04	13,597,877.28	7,677,500.40
Investment income
(loss stated with "-")	-1,875,871.48	1,759,200.00	44,294,846.65
Profit arising from fair value
(loss stated with "-")	-852,830.11	-181,638.86	-2,701,755.49	4,834,850.55
Credit impairment loss
(loss stated with "-")	3,612,489.81	1,510,900.92	-691,532.11	-3,443,298.56
Asset impairment loss
(loss stated with "-")	1,021,374.41	-356,538.49	528,917.42	-1,453,479.93
Asset disposal income
(loss stated with "-")	-5,411.79	23,239.71	88,107.57	23,037.81
II.Operaing profit (loss stated with "-")	103,540,005.32	945,339.79	191,424,221.04	201,514,717.70
Add: non-operating income	3,157,422.62	275,679.81	4,775,449.23	4,994,565.84
Less: non-operating expenses	55,000.00	30,000.00	100,000.00	30,000.00
III.Total profit (total loss stated with "-")	106,642,427.94	1,191,019.60	196,099,670.27	206,479,283.54
Less: Income tax expense	15,311,258.32	-3,668,320.94	22,808,206.61	14,927,023.96
IV.Net profit (net loss stated with "-")	91,331,169.62	4,859,340.54	173,291,463.66	191,552,259.58
V. Total comprehensive income	91,331,169.62	4,859,340.54	173,291,463.66	191,552,259.58

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

17

Consolidated Statement of Cash Flow

As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.
	Unit: RMB   Type of audit: unaudited
	For the nine months	For the nine months
Items	ended 30 September 2019	ended 30 September 2018
I. Cash flow from operating activities:
Cash received from sale of goods or rendering of services	2,930,594,614.90	2,355,251,659.67
Cash received from refunds of taxes	100,864,899.39	43,679,110.08
Cash received relating to other operating activities	95,646,906.90	33,718,908.31
Subtotal of cash inflows	3,127,106,421.19	2,432,649,678.06
Cash paid for goods and services	2,314,290,096.85	1,625,293,279.37
Cash paid to and on behalf of employee	205,456,921.18	190,489,430.64
Cash paid for payments of taxes	104,296,075.77	129,716,334.16
Cash paid relating to other operating activities	287,766,693.91	163,893,177.20
Subtotal of cash outflows	2,911,809,787.71	2,109,392,221.37
Net cash flow from operating activities	215,296,633.48	323,257,456.69
II. Cash flow from investing activities:
Cash received from disposal of investments	4,200,000.00
Cash received from income of investment	8,404,473.47	2,275,088.92
Net cash received from disposal of fixed assets, intangible assets
and other long-term equity investment	4,592,156.72	233,602.21
Cash received relating to other investing activities	72,404,253.35	67,612,495.44
Subtotal of cash inflows	85,400,883.54	74,321,186.57
Cash paid to purchase fixed assets, intangible assets and other
long-term equity investments	825,687,601.91	855,007,627.97
Cash paid relating to other investing activities	166,402,121.82	125,406,059.59
Subtotal of cash outflows	992,089,723.73	980,413,687.56
Net cash flow from investing activities	-906,688,840.19	-906,092,500.99
III.Cash flow from financing activities:
Cash received from capital contribution	267,000,000.00
Cash received from borrowings	1,176,729,568.74	881,455,041.28
Cash received relating to other
financing activities	144,451,653.98	258,147,229.04
Subtotal of cash inflows	1,588,181,222.72	1,139,602,270.32
Cash paid for payment of borrowings	784,479,528.65	464,693,017.89
Cash paid for distribution of dividends, and profits
or payment of interest	158,015,911.08	51,694,536.02
Cash paid relating to other financing activities	179,305,746.60	226,940,071.50
Subtotal of cash outflows	1,121,801,186.33	743,327,625.41
Net cash flow from financing activities	466,380,036.39	396,274,644.91

18

	For the nine months	For the nine months
Items	ended 30 September 2019	ended 30 September 2018
IV.Effect of foreign exchange rate changes on cash
and cash equivalents	5,247,563.18	19,356,664.31
V. Net increase in cash and cash equivalents	-219,764,607.14	-167,203,735.08
Add: cash and cash equivalents at beginning of period	528,750,004.08	949,647,190.42
VI.Cash and cash equivalents at end of period	308,985,396.94	782,443,455.34

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

Parent Statement of Cash Flow

As at 30 September 2019

Prepared by Flat Glass Group Co., Ltd.
	Unit: RMB   Type of audit: unaudited
	For the nine months	For the nine months
Items	ended 30 September 2019	ended 30 September 2018
I. Cash flow from operating activities:
Cash received from sale of goods or rendering of services	2,078,687,372.52	1,931,306,812.87
Cash received from refunds of taxes	32,708,390.80	10,224,768.74
Cash received relating to other operating activities	20,092,359.86	12,502,482.01
Subtotal of cash inflows	2,131,488,123.18	1,954,034,063.62
Cash paid for goods and services	2,176,807,681.21	1,243,783,993.47
Cash paid to and on behalf of employee	109,026,480.85	123,452,108.45
Cash paid for payments of taxes	21,338,895.99	94,639,517.78
Cash paid relating to other operating activities	103,814,742.98	73,014,294.96
Subtotal of cash outflows	2,410,987,801.03	1,534,889,914.66
Net cash flow from operating activities	-279,499,677.85	419,144,148.96
II. Cash flow from investing activities:
Cash received from disposal of investments	1,759,200.00	52,285,550.00
Net cash received from disposal of fixed assets, intangible assets
and other long-term equity investment	112,430.12	2,823,839.21
Cash received relating to other investing activities	409,610,893.71	126,388,873.36
Subtotal of cash inflows	411,482,523.83	181,498,262.57
Cash paid to purchase fixed assets, intangible assets and
other long-term equity investments	99,983,294.87	197,727,816.99
Cash paid to investment	257,000,000.00	238,982,321.00
Cash paid relating to other investing activities	267,098,523.17	339,554,406.25
Subtotal of cash outflows	624,081,818.04	776,264,544.24
Net cash flow from investing activities	-212,599,294.21	-594,766,281.67

19

	For the nine months	For the nine months
Items	ended 30 September 2019	ended 30 September 2018
III.Cash flow from financing activities:
Cash received from capital contribution	267,000,000
Cash received from borrowings	591,545,343.28	244,723,707.22
Cash received relating to other financing activities	167,875,049.24	646,953,480.81
Subtotal of cash inflows	1,026,420,392.52	891,677,188.03
Cash paid for payment of borrowings	251,365,382.85	298,519,650.00
Cash paid for distribution of dividends, and profits
or payment of interest	110,721,618.19	16,911,672.53
Cash paid relating to other financing activities	258,145,225.23	263,700,922.29
Subtotal of cash outflows	620,232,226.27	579,132,244.82
Net cash flow from financing activities	406,188,166.25	312,544,943.21
IV.Effect of foreign exchange rate changes on cash
and cash equivalents	451,910.48	5,033,256.53
V. Net increase in cash and cash equivalents	-85,458,895.33	141,956,067.03
Add: cash and cash equivalents at beginning of period	171,799,091.46	176,663,254.34
VI.Cash and cash equivalents at end of period	86,340,196.13	318,619,321.37

Legal representative: Ruan Hongliang   Person in charge of accounting function: Jiang Weijie

Person in charge of accounting department: Jin Huiping

4.2 Audit Report

• Applicable  √ Not Applicable

Jiaxing, Zhejiang Province, People's Republic of China, 24 October 2019

As at the date of this announcement, the executive directors of the Company are Mr. Ruan Hongliang, Ms. Jiang Jinhua, Mr. Wei Yezhong and Mr. Shen Qifu, and the independent non-executive directors of the Company are Mr. Cui Xiaozhong,Ms. Hua Fulan and Mr. Ng Ki Hung.

20