Fuyao Glass Industry : COMPLETION OF PLACING OF NEW H SHARES UNDER SPECIFIC MANDATE

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.

Neither this announcement nor any copy thereof may be released into or distributed directly or indirectly in the United States or any other jurisdiction where such release or distribution might be unlawful.

This announcement is for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities of the Company.

This announcement is not, and does not form any part of, an offer or invitation for the sale of securities in the United States (as defined in Regulation S under the United States Securities Act of 1933 (the "Securities Act")). Neither this announcement nor anything herein nor any copy thereof may be taken into or distributed, directly or indirectly, in or into the United States or any other jurisdiction where such release or distribution might be unlawful. The securities referred to herein have not been and will not be registered under the Securities Act, and may not be offered, sold or otherwise transferred within the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. The Company does not intend to register any securities described herein in the United States or to make any public offering of the securities in the United States.

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

(Stock Code: 3606)

COMPLETION OF PLACING OF NEW H SHARES UNDER

SPECIFIC MANDATE

Sole Placing Agent

Co-manager

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The Board is pleased to announce that all conditions precedent to the Placing as set out in the Placing Agreement have been satisfied and completion of the Placing took place on May 10, 2021 in accordance with the terms and conditions of the Placing Agreement. The Company placed, through the Placing Agent, 101,126,000 new H Shares at a price of HK$42.90 per Placing Share.

Reference is made to the announcement of the Company dated May 2, 2021 (the

• Announcement") in relation to the placing of 101,126,000 new H Shares (the "Placing"). Unless otherwise defined, all capitalized terms used herein shall have the same meaning as defined in the Announcement.

COMPLETION OF THE PLACING

The Board is pleased to announce that all conditions precedent to the Placing as set out in the Placing Agreement have been satisfied (including the granting by the Listing Committee of the listing of and, permission to deal in, the Placing Shares), and Completion of the Placing took place on May 10, 2021.

An aggregate of 101,126,000 new H Shares, representing approximately 16.67% and 3.87%, respectively, of the total issued H Shares and the total issued Shares as enlarged by the allotment and issue of the Placing Shares, have been successfully allotted and issued by the Company on May 10, 2021 at the Placing Price of HK$42.90 per Placing Share to no less than six independent Placees who are professional, institutional and other investors and are, together with their respective ultimate beneficial owners, third parties independent of, and not connected with, the Company and the connected persons of the Company.

The aggregate gross proceeds from the Placing are approximately HK$4,338.31 million and the aggregate net proceeds from the Placing are approximately HK$4,312.46 million after deducting the relevant costs and expenses. The Company intends to use the net proceeds from the Placing for the following purposes: (a) approximately 60% will be used to replenish the working capital and optimize the Group's capital structure; (b) approximately 15% will be used to repay interest-bearing debts; (c) approximately 15% will be used to invest in the research and development projects; and (d) approximately 10% will be used to expand the photovoltaic glass market and general corporate uses.

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SHAREHOLDING STRUCTURE OF THE COMPANY IMMEDIATELY BEFORE AND AFTER COMPLETION OF THE PLACING

Set out below is the shareholding structure of the Company immediately before and after Completion of the Placing on the Closing Date:

	Immediately before	Immediately after
	completion of the Placing	completion of the Placing
			Approximate			Approximate
			percentage of			percentage of
			issued share			issued share
	Number of		capital of the	Number of	capital of the
	Shares		Company(1)	Shares	Company(1)
A Shares	2,002,986,332	79.84%		2,002,986,332		76.75%
including:
Mr. Cho Tak Wong(2)	314,828	0.01%	314,828	0.01%
Sanyi Development Limited(2)	390,578,816	15.57%	390,578,816	14.97%
Fujian Yaohua Industrial Village
Development Co., Ltd(2)	33,277,742	1.33%	33,277,742	1.28%
Homekiu Overseas Holdings
Limited(3)	12,086,605	0.48%	12,086,605	0.46%
A Shares (held by the public
Shareholders)	1,566,728,341	62.45%	1,566,728,341	60.03%
H Shares	505,631,200	20.16%	606,757,200	23.25%
including:
The Placees	-		-	101,126,000	3.87%
H Shares (held by the public
Shareholders	505,631,200	20.16%	505,631,200	19.38%
Total	2,508,617,532	100.00%		2,609,743,532		100.00%

Notes:

1. Certain amounts and percentage figures in the table above have been rounded to the nearest whole figures. The discrepancies between the total amounts and the amounts shown in the table are due to rounding.
2. Mr. Cho Tak Wong directly holds 314,828 A Shares (long position) and indirectly holds 390,578,816 A Shares (long position) through Sanyi Development Limited. In addition, Mr. Cho Tak Wong is deemed to be interested in the 33,277,742 A Shares (long position) indirectly held by his spouse, Ms. Chan Fung Ying.
3. Mr. Tso Fai indirectly holds 12,086,605 A Shares (long position) through Homekiu Overseas Holdings Limited.

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By order of the Board

Fuyao Glass Industry Group Co., Ltd.

Cho Tak Wong

Chairman

Fuzhou, Fujian, the PRC

May 10, 2021

As of the date of this Announcement, the Board of Directors of the Company comprises Mr. Cho Tak Wong, Mr. Tso Fai, Mr. Ye Shu and Mr. Chen Xiangming, as executive Directors; Mr. Wu Shinong and Ms. Zhu Dezhen, as non-executive Directors; Ms. Cheung Kit Man Alison, Mr. Liu Jing and Mr. Qu Wenzhou, as independent non- executive Directors.

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