Fuyao Glass Industry : 2021 FIRST QUARTERLY REPORT

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.

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

(Stock Code: 3606)

2021 FIRST QUARTERLY REPORT

This announcement is made pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules") and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Set out below is the 2021 first quarterly report (the "Report") of Fuyao Glass Industry Group Co., Ltd. (the "Company") and its subsidiaries for the three months ended March 31, 2021 (the "Reporting Period"). The Report contained herein is prepared in accordance with the PRC Accounting Standards for Business Enterprises and has not been audited. The Report is prepared in both Chinese and English languages. In the event of any inconsistency between these two versions, the Chinese version shall prevail.

By order of the Board

Fuyao Glass Industry Group Co., Ltd.

Cho Tak Wong

Chairman

Fuzhou, Fujian, the PRC, April 16, 2021

As at 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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1. IMPORTANT NOTICE
2. 1. The board of directors, board of supervisors, directors, supervisors and senior management members of the Company warrant the truthfulness, accuracy and completeness of the contents stated in the quarterly report and that there are no false presentations, misleading statements or material omissions thereof and shall assume joint and several legal liabilities.
   2. All the directors of the Company have attended the Board meeting held for the purpose of considering this quarterly report.
   3. Cho Tak Wong, person-in-charge of the Company, Chen Xiangming, the principal-in-charge of accounting, and Qiu Yongnian, head of the Accounting Department (person-in-charge of accounting), warrant the truthfulness, accuracy and completeness of the financial statements set out in this quarterly report.
   4. The 2021 first quarterly report of the Company has not been audited.

1. BASIC INFORMATION OF THE COMPANY 2.1 Major financial data

		Unit: Yuan	Currency: RMB
			Increase/decrease
			at the end of this
			Reporting Period
	As at the	As at	as compared with
	end of this	the end of	the end of
	Reporting Period	previous year	previous year
			(%)
Total assets	39,922,816,663	38,423,625,184	3.90
Net assets attributable to
shareholders of the listed
company	22,528,004,468	21,594,517,508	4.32

- 2 -

		From the	Increase/
	From the	beginning of	decrease as
	beginning of	previous year to	compared with
	2021 to the end	the end of the	the corresponding
	of the Reporting	reporting period	period of
	Period	of previous year	previous year
			(%)
Net cash flows from operating
activities	1,757,993,567	870,222,855	102.02
		From the	Increase/
	From the	beginning of	decrease as
	beginning of	previous year to	compared with
	2021 to the end	the end of the	the corresponding
	of the Reporting	reporting period	period of
	Period	of previous year	previous year
			(%)
Operating revenue	5,705,966,779	4,170,497,650	36.82
Net profit attributable to
shareholders of the listed
company	855,254,275	459,956,420	85.94
Net profit attributable to
shareholders of the listed
company, net of non-
recurring gains or losses	812,965,270	380,185,709	113.83
Return rate on weighted			Increased by 1.75
average net assets (%)	3.88	2.13	percentage points
Basic earnings per share
(Yuan/share)	0.34	0.18	88.89
Diluted earnings per share
(Yuan/share)	0.34	0.18	88.89

During the Reporting Period, the Company realized operating revenue of RMB5,705.9668 million, representing an increase of 36.82% as compared with the corresponding period last year; realized total profit of RMB1,035.2824 million, representing an increase of 67.82% as compared with the corresponding period last year. Eliminating the below non- comparable factors - gains or losses from foreign exchange, the total profit during the Reporting Period increased by 102.79% year on year:

1. During the Reporting Period, the Company realized foreign exchange losses of RMB70.3238 million in contrast to the foreign exchange gains of RMB71.6847 million in the corresponding period last year, representing a decrease of RMB142.0085 million in the total profit during the Reporting Period as compared with the corresponding period last year.

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Non-recurring profit and loss items and amounts

Unit: Yuan Currency: RMB
	Amount for
	the current
Items	period Explanation
Profit and loss from disposal of non-current assets	-5,662,922
Government subsidies recorded under current profit and
loss (except for those closely related to the normal
business operation of the Company, in compliance
with requirements of the national policies and granted
continuously in a fixed amount or fixed quantity under the
requirements of the State policies)	36,258,893
Capital occupancy fee from non-financial enterprises recorded
under current profit and loss	8,035,849
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, derivative
financial assets, held-for-trading financial liabilities and
derivative financial liabilities, and investment income from
disposal of held-for-trading financial assets, derivative
financial assets, held-for-trading financial liabilities,
derivative financial liabilities and other debt investments	-520,088
Other non-operating income and expenses other than the
above items	11,761,505
Effect of minority interests (after tax)	-99,919
Effect of income tax	-7,484,313
Total	42,289,005

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2.2 Total number of shareholders, the shareholdings of the top ten shareholders and top ten shareholders with tradable shares (or shareholders not subject to selling restrictions) as at the end of the Reporting Period

As at March 31, 2021, the total number of shareholders of the Company was 184,360, of which, 184,315 were holders of A shares and 45 were registered holders of H shares.

						Unit: Shares
Total number of shareholders					184,360
	Shareholding of top ten shareholders
			Number of
Name of	Shareholding		shares held	Pledge or moratorium
shareholders	at the end of		with selling	Status of		Nature of
(Full name)	period	Percentage	restrictions	shares	Number	shareholder
		(%)
HKSCC NOMINEES LIMITED (Note)	491,747,159	19.60		Unknown		Unknown
Sanyi Development Limited	390,578,816	15.57		Nil		Overseas legal
						entity
Heren Charitable Foundation	215,089,084	8.57		Nil		Domestic non-
						state-owned legal
						entity
Hong Kong Securities Clearing	180,056,918	7.18		Unknown		Unknown
Company Limited
Bai Yongli	34,653,315	1.38		Unknown		Unknown
Fujian Yaohua Industrial Village	34,277,742	1.37		Pledged	24,000,000	Domestic non-
Development Co., Ltd.						state-owned legal
						entity
Agricultural Bank of China Limited	33,259,677	1.33		Unknown		Unknown
- E Fund Consumer Industry
Equity Securities Investment
Fund (易方達消費行業股票
型證券投資基金)
China Securities Finance	28,095,485	1.12		Unknown		Unknown
Corporation Limited
Central Huijin Asset Management	24,598,300	0.98		Unknown		Unknown
Limited (中央匯金資產管理
有限責任公司)
Li Haiqing	21,922,159	0.87		Unknown		Unknown

- 5 -

Shareholdings of the top ten shareholders not subject to selling restrictions
	Number of	Types and number of shares
	tradable shares
	not subject to
	selling
Name of shareholders	restrictions	Types	Number
HKSCC NOMINEES LIMITED (Note)	491,747,159	Overseas listed foreign	491,747,159
		shares
Sanyi Development Limited	390,578,816	Ordinary shares	390,578,816
		denominated in RMB
Heren Charitable Foundation	215,089,084	Ordinary shares	215,089,084
		denominated in RMB
Hong Kong Securities Clearing Company	180,056,918	Ordinary shares	180,056,918
Limited		denominated in RMB
Bai Yongli	34,653,315	Ordinary shares	34,653,315
		denominated in RMB
Fujian Yaohua Industrial Village Development	34,277,742	Ordinary shares	34,277,742
Co., Ltd.		denominated in RMB
Agricultural Bank of China Limited - E	33,259,677	Ordinary shares	33,259,677
Fund Consumer Industry Equity Securities		denominated in RMB
Investment Fund ( 易方達消費行業股票型
證券投資基金)
China Securities Finance Corporation Limited	28,095,485	Ordinary shares	28,095,485
Central Huijin Asset Management Limited		denominated in RMB
24,598,300	Ordinary shares	24,598,300
( 中央匯金資產管理有限責任公司)		denominated in RMB
Li Haiqing	21,922,159	Ordinary shares	21,922,159
		denominated in RMB

Explanations on the connected relationship or parties acting in concert among the above shareholders

The de facto controllers of Sanyi Development Limited and Fujian Yaohua Industrial Village Development Co., Ltd. are members of the same family. Among the remaining eight shareholders not subject to selling restrictions, it is uncertain whether there is any connected relationship among them and whether such shareholders are parties acting in concert which fall within the meaning under the "Measures for the Administration of Information Disclosure of Change of Shareholdings Held by Shareholders of Listed Companies".

Note: HKSCC NOMINEES LIMITED ( 香 港 中 央 結 算( 代 理 人) 有 限 公 司). Investors deposit the H shares held by themselves into the Central Clearing and Settlement System under the Hong Kong Stock Exchange and count them by the aggregate number of the shares registered under the name of HKSCC NOMINEES LIMITED ( 香 港 中 央 結 算( 代 理 人) 有 限 公 司), a wholly-owned subsidiary member body of the Hong Kong Stock Exchange.

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1. SIGNIFICANT EVENTS
   3.1 Particulars and reasons of material changes in major accounting items and financial indicators of the Company
   3.1.1 Particulars and reasons of material changes in major balance sheet items of the Company as at the end of the Reporting Period

		Unit: Yuan	Currency: RMB
	Balance as	Balance as			Percentage of
	at the end	at the beginning		Increase/	increase/
Items	of the period	of the year		decrease	decrease
Other current assets	138,319,556	252,804,600	-114,485,044	-45.29
Derivative financial liabilities	10,536,398	795,244	9,741,154	1,224.93
Staff salaries and welfare
payables	338,030,488	489,357,281	-151,326,793	-30.92
Other current liabilities	0	303,131,507	-303,131,507	-100.00

1. Decrease in other current assets was mainly due to a decrease in value-added tax retained as at the end of the period.
2. Increase in derivative financial liabilities was mainly due to an increase in sale of new foreign exchange call options and certain unsettled currency swap contracts estimated as unrealized loss as a result of foreign exchange rate fluctuations during the Reporting Period.
3. Decrease in staff salaries and welfare payables was mainly due to the payment of the annual bonus provided for in the previous year during the Reporting Period.
4. Decrease in other current liabilities was due to the repayment of the principal and interest of ultra-short-term financing bills due during the Reporting Period.

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3.1.2 Analysis on the reasons for significant changes in major items of the income statement of the Company during the Reporting Period

		Unit: Yuan Currency: RMB
		Amount
	Amount for	for the
	corresponding		Percentage
	the current	period	Increase/	of increase/
Items	period	last year	decrease	decrease
Operating revenue	5,705,966,779	4,170,497,650	1,535,469,129	36.82
Selling and distribution	416,077,341
expenses	313,487,604	102,589,737	32.73
Research and development	235,831,188
expenses	150,859,577	84,971,611	56.32
Financial expenses	116,401,754	-58,939,457	175,341,211	297.49
Other income	36,258,893	78,529,255	-42,270,362	-53.83
Investment income	-556,542	17,219,138	-17,775,680	-103.23
Gains arising from changes	-520,088
in fair value	-11,301,098	10,781,010	95.40
Non-operating income	51,748,109	4,272,905	47,475,204	1,111.08
Non-operating expenses	46,421,300	1,831,485	44,589,815	2,434.63

Note: For above items of "investment income" and "gains arising from changes in fair value", losses are represented by "-".

1. Increase in operating revenue was mainly due to the recovery of the automobile market and the increase of effort in marketing by the Company.
2. Increase in selling and distribution expenses was mainly due to increases in the corresponding freight fee and packaging expenses, etc. as a result of an increase in operating revenue.
3. Increase in research and development expenses was mainly due to the technological upgrade and an increase in the added value of products of the Company as a result of further improvement of research and development project management and continuous innovation in research and development of the Company.
4. Increase in financial expenses was mainly due to foreign exchange losses of RMB70 million as a result of foreign exchange rate fluctuations during the Reporting Period as compared with foreign exchange gains of RMB72 million for the corresponding period last year.
5. Decrease in other income was mainly due to a decrease in government subsidies received during the Reporting Period.
6. Decrease in investment income was mainly due to the gains from the interest of principal-guaranteed structured deposits received for the corresponding period last year.

- 8 -

1. Decrease in losses arising from changes in fair value was mainly due to the unsettled forward foreign exchange settlement contracts estimated as unrealized loss as a result of foreign exchange rate fluctuations for the corresponding period last year.
2. Increase in non-operating income was mainly due to the receipt of insurance indemnity by Guangzhou Fuyao Glass Co., Ltd., a subsidiary of the Company, in connection with the flooding last year.
3. Increase in non-operating expenses was mainly due to the losses arising from the clean-up activities conducted by Guangzhou Fuyao Glass Co., Ltd., a subsidiary of the Company, after the flooding last year.

3.1.3 Analysis on the reasons for substantial changes in major cash flow items of the Company

		Unit: Yuan Currency: RMB
		Amount for the
	Amount for the	corresponding		Percentage
	period	Increase/	of increase/
Items	current period	last year	decrease	decrease
Refund of taxes and surcharges	75,505,324	44,720,076	30,785,248	68.84
Cash received relating to other	99,642,174
operating activities	173,451,200	-73,809,026	-42.55
Payments of taxes and	450,180,924
surcharges	312,403,384	137,777,540	44.10
Cash received relating to other	0
investment activities	878,634,241	-878,634,241	-100.00
Cash paid for acquisition of
fixed assets, intangible
assets and other long-term	511,060,208
assets	286,512,908	224,547,300	78.37
Cash paid for investment	11,320,755	0	11,320,755	100
Cash paid relating to other	0
investing activities	1,450,000,000	-1,450,000,000	-100.00
Cash received from borrowing	3,032,268,502
receipt	4,575,627,244	-1,543,358,742	-33.73
Cash received relating to other	0
financing activities	2,100,000,000	-2,100,000,000	-100.00
Cash paid for debt repayment	2,362,234,524	3,552,340,143	-1,190,105,619	-33.50

1. Increase in refund of taxes and surcharges was mainly due to an increase in value-added tax rebate on exports received during the Reporting Period.
2. Decrease in cash received relating to other operating activities was mainly due to a decrease in government subsidies received during the Reporting Period.

- 9 -

1. Increase in payments of taxes and surcharges was mainly due to increases in income tax and value-added tax paid during the Reporting Period.
2. Decrease in cash received relating to other investing activities was mainly due to the recovery of due principal and interest of the principal-guaranteed structured deposits in the corresponding period last year.
3. Increase in cash paid for acquisition of fixed assets, intangible assets and other long-term assets was mainly due to an increase in capital expenditures during the Reporting Period.
4. Cash paid for investment represented the relevant expenses for the
   purchase of equity in China Intelligent and Connected Vehicles (Beijing) Research Institute Co., Ltd. ( 國 汽( 北 京) 智 能 網 聯 汽 車 研 究 院 有 限 公 司).
5. Decrease in cash paid relating to other investing activities was mainly due to an increase in the principal-guaranteed structured deposits in the corresponding last year.
6. Decrease in cash received from borrowing receipt was mainly due to a decrease in external borrowings as a result of a year-on-year increase in net operating cash flow during the Reporting Period.
7. Decrease in cash received relating to other financing activities was due to the issuance of four tranches of ultra-short-term financing bills in an aggregated amount of RMB1.5 billion and the issuance of one tranche of medium-term bills in an amount of RMB600 million in the corresponding period last year.
8. Decrease in cash paid for debt repayment was mainly due to a decrease in the borrowings due for repayment during the Reporting Period.

3.2 Note and analysis on the progress of significant events and their impact and solution

In order to broaden the investor base of H shares and optimize the capital structure of the Company, on January 8, 2021, the Board of Directors resolved that according to the provisions of the Articles of Association, the Company proposed to issue and place not more than 101,126,240 additional H shares to qualified investors, and the issuance will be made under the specific mandate. The Company convened the 2021 second extraordinary general meeting, the 2021 first A share class meeting and the 2021 first H share class meeting on February 26, 2021. The resolution relating to the issuance has been approved at the extraordinary general meeting and the class meetings.

- 10 -

On March 9, 2021, the Company received the CSRC Acceptance Notice of the Application for Administrative Permission 《( 中 國 證 監 會 行 政 許 可 申 請 受 理 通 知 單 》) (Acceptance No.: 210503) issued by the China Securities Regulatory Commission (the "CSRC"). The CSRC has reviewed the application materials for the issuance and listing of additional overseas listed foreign shares (H shares) on the Main Board of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (the "Issuance of H Shares") submitted by the Company and considered that the application materials were complete and decided to accept the application for administrative permission.

The Issuance of H Shares of the Company is still subject to the review and/ or approval(s) from the CSRC, the Hong Kong Stock Exchange and other relevant government authorities and regulatory authorities, and there are uncertainties for such matter. The Company will continue to press ahead with the issuance.

3.3 Undertakings that have fallen due but not yet completed during the Reporting Period

						Fulfill in
						a timely
					Has	and strict
Background of	Type of	Undertaking		Time and term of	performance	manner or
undertakings	undertakings	party	Content of undertakings	undertakings	period or not	not
Other undertakings	Dividend	Fuyao Glass	For details, please refer to the Dividend	Publishing date	Yes	Yes
	distribution	Industry	Distribution Plan of Fuyao Glass	of undertakings:
		Group Co.,	Industry Group Co., Ltd. for the	May 12, 2018
		Ltd.	Shareholders for the Upcoming Three	Performance
			Years (2018-2020) dated May 12, 2018	period of
			as published on the Shanghai Securities	undertakings:
			News, the China Securities Journal	between January
			and the Securities Time, the website of	1, 2018 and
			the SSE (http://www.sse.com.cn) and	December 31,
			the website of the Hong Kong Stock	2020
			Exchange (http://www.hkexnews.hk).

3.4 Warning and explanation on reasons for the accumulated net loss expected to be recorded from the beginning of the year to the end of the next reporting period or the material change as compared to the corresponding period last year

Not Applicable

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IV. APPENDIX

4.1 Financial statements

Consolidated Balance Sheet

March 31, 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

Unit: Yuan Currency: RMB Audit Type: Unaudited

	March 31,		December 31,
Items	2021	2020
Current assets:
Cash at bank and on hand	10,645,629,487	8,809,985,853
Settlement provisions
Placements with financial institutions
Held-for-trading financial assets	302,876,712	300,287,671
Derivative financial assets
Notes receivable	16,972,473	19,430,381
Accounts receivable	3,778,573,220	3,734,495,117
Accounts receivable financing	1,124,419,108	1,301,612,117
Advances to suppliers	188,030,916	173,525,313
Premiums receivable
Reinsurance receivable
Deposits receivable from reinsurance
treaty
Other receivables	517,996,672	526,506,578
Including: Interest receivable
Dividends receivable
Financial assets purchased for resale
Inventories	3,260,401,002	3,280,989,599
Contract assets
Held-for-sale assets
Non-current assets due within one year	160,000,000	160,000,000
Other current assets	138,319,556		252,804,600
Total current assets	20,133,219,146	18,559,637,229

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	March 31,			December 31,
Items	2021	2020
Non-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables	209,663,579	206,748,905
Long-term equity investments	69,320,755	58,000,000
Other investments in equity instruments
Other non-current financial assets
Investment properties
Fixed assets	14,044,700,381	14,260,438,910
Construction in progress	2,564,305,851	2,354,298,463
Bearer biological assets
Oil and gas assets
Right-of-use assets	559,868,900	607,068,550
Intangible assets	1,255,545,336	1,270,843,245
Development costs
Goodwill	154,940,513	154,940,513
Long-term prepaid expenses	422,192,801	431,039,005
Deferred income tax assets	509,059,401	520,610,364
Other non-current assets
Total non-current assets	19,789,597,517	19,863,987,955
Total assets	39,922,816,663	38,423,625,184

- 13 -

	March 31,		December 31,
Items	2021	2020
Current liabilities:
Short-term borrowings	6,782,968,074	6,165,804,499
Borrowings from the central bank
Borrowings from interbank
Held-for-trading financial liabilities
Derivative financial liabilities	10,536,398	795,244
Notes payable	1,404,258,231	1,166,210,433
Accounts payable	1,248,101,490	1,299,794,957
Advances from customers
Contract liabilities	753,765,381	756,282,114
Amount from sale of repurchased
financial assets
Customer and interbank deposits
Customer deposits for trading in
securities
Amounts due to issuer for securities
underwriting
Staff salaries and welfare payables	338,030,488	489,357,281
Taxes payable	269,214,562	302,321,505
Other payables	1,363,483,534	1,376,997,551
Including: Interest payable
Dividends payable
Handling fees and commissions
payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one
year	242,446,900	270,557,753
Other current liabilities		303,131,507
Total current liabilities	12,412,805,058	12,131,252,844

- 14 -

	March 31,			December 31,
Items	2021	2020
Non-current liabilities:
Provisions for insurance contracts
Long-term borrowings	2,323,000,000	1,985,000,000
Debentures payables	1,198,614,110	1,198,784,928
Including: Preference shares
Perpetual bonds
Lease liabilities	474,498,356	510,511,192
Long-term payables	76,531,800	75,694,702
Long-term staff salaries and welfare
payables
Accrued liabilities
Deferred income	718,075,392	735,789,390
Deferred income tax liabilities	195,982,664	195,684,830
Other non-current liabilities
Total non-current liabilities	4,986,702,322	4,701,465,042
Total liabilities	17,399,507,380	16,832,717,886

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			March 31,			December 31,
Items				2021	2020
Owners' equity
(or shareholders' equity):
Paid-in capital (or share capital)	2,508,617,532	2,508,617,532
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital surplus			6,222,912,435	6,222,912,435
Less: Inventory shares
Other comprehensive income	-295,747,647	-373,980,332
Special reserve
Surplus reserve			2,931,419,311	2,931,419,311
General risk reserve
Undistributed profits	11,160,802,837	10,305,548,562
Total equity attributable to equity
holders (or shareholders) of
the Company	22,528,004,468	21,594,517,508
Minority interests			-4,695,185	-3,610,210
Total owners' equity (or shareholders'
equity)	22,523,309,283	21,590,907,298
Total liabilities and owners' equity (or
shareholders' equity)	39,922,816,663	38,423,625,184
Person-in-charge of the	Principal-in-charge of	Head of the Accounting
Company:	accounting:		Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 16 -

Balance Sheet of the Company

March 31, 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

Unit: Yuan Currency: RMB Audit Type: Unaudited

	March 31,		December 31,
Items	2021	2020
Current assets:
Cash at bank and on hand	8,096,259,809	7,338,352,816
Held-for-trading financial assets	302,876,712	300,287,671
Derivative financial assets
Notes receivable
Accounts receivable	969,990,591	860,806,887
Accounts receivable financing	1,008,133,397	1,161,324,269
Advances to suppliers	58,910,385	46,785,143
Other receivables	16,447,005,657	12,866,009,059
Including: Interest receivable
Dividends receivable	2,383,696,630	58,209,899
Inventories	332,393,683	340,644,631
Contract assets
Held-for-sale assets
Non-current assets due within one year	160,000,000	160,000,000
Other current assets	17,392,780	32,444,191
Total current assets	27,392,963,014	23,106,654,667

- 17 -

	March 31,			December 31,
Items	2021	2020
Non-current assets:
Debt investments
Other debt investments
Long-term receivables	4,094,577,030	4,130,914,190
Long-term equity investments	8,008,646,446	7,907,883,208
Other investments in equity instruments	69,320,755	58,000,000
Other non-current financial assets
Investment properties
Fixed assets	574,369,896	585,760,917
Construction in progress	154,946,333	109,689,788
Bearer biological assets
Oil and gas assets
Right-of-use assets	22,699,813	29,895,883
Intangible assets	71,460,804	76,862,605
Development costs
Goodwill	48,490,007	48,490,007
Long-term prepaid expenses	31,669,289	31,212,442
Deferred income tax assets	34,829,896	34,063,674
Other non-current assets
Total non-current assets	13,111,010,269	13,012,772,714
Total assets	40,503,973,283	36,119,427,381

- 18 -

	March 31,			December 31,
Items	2021	2020
Current liabilities:
Short-term borrowings	3,148,910,673	2,152,671,389
Held-for-trading financial liabilities
Derivative financial liabilities	10,536,398	795,244
Notes payable	1,426,761,546	1,360,505,067
Accounts payable	192,016,082	167,418,163
Advances from customers
Contract liabilities	39,282,823	38,139,980
Staff salaries and welfare payables	43,112,851	90,230,941
Taxes payable	-15,380,902	3,194,937
Other payables	11,238,098,736	10,261,274,757
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
year	176,434,381	207,071,517
Other current liabilities		303,131,507
Total current liabilities	16,259,772,588	14,584,433,502
Non-current liabilities:
Long-term borrowings	2,323,000,000	1,985,000,000
Debentures payables	1,198,614,110	1,198,784,928
Including: Preference shares
Perpetual bonds
Lease liabilities	967,141	2,181,451
Long-term payables
Long-term staff salaries and welfare
payables
Accrued liabilities
Deferred income	11,913,872	12,478,009
Deferred income tax liabilities	134,245,458	133,939,237
Other non-current liabilities
Total non-current liabilities	3,668,740,581	3,332,383,625
Total liabilities	19,928,513,169	17,916,817,127

- 19 -

		March 31,		December 31,
Items			2021	2020
Total owners' equity
(or shareholders' equity):
Paid-in capital (or share capital)	2,508,617,532	2,508,617,532
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital surplus		6,202,552,740	6,202,552,740
Less: inventory shares
Other comprehensive income
Special reserve
Surplus reserve		2,931,419,311	2,931,419,311
Undistributed profits		8,932,870,531	6,560,020,671
Total owners' equity (or shareholders'
equity)		20,575,460,114	18,202,610,254
Total liabilities and owners' equity (or
shareholders' equity)		40,503,973,283	36,119,427,381
Person-in-charge of the	Principal-in-charge of	Head of the Accounting
Company:	accounting:	Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 20 -

Consolidated Income Statement

January to March 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

	Unit: Yuan Currency: RMB Audit Type: Unaudited
		First quarter	First quarter
Items	of 2021	of 2020
I.	Total operating revenue	5,705,966,779	4,170,497,650
	Including: Operating revenue	5,705,966,779	4,170,497,650
	Interest income
	Premiums earned
	Income from handling fees and
	commissions
II. Total cost of operation	4,712,350,834	3,636,862,455
	Including: Cost of operation	3,389,517,637	2,733,899,288
	Interest expenses
	Handling fees and commissions
	expenses
	Surrender payment
	Net expenditure for
	compensation payment
	Net provisions for insurance
	contracts
	Expenditure for insurance
	policy dividend
	Reinsurance cost
	Taxes and surcharges	48,089,581	40,036,037
	Selling and distribution
	expenses	416,077,341	313,487,604
	General and administrative
	expenses	506,433,333	457,519,406
	Research and development
	expenses	235,831,188	150,859,577
	Financial expenses	116,401,754	-58,939,457
	Including: Interest expenses	67,819,146	77,958,823
	Interest income	22,760,736	68,016,541

- 21 -

	First quarter	First quarter
Items	of 2021	of 2020
Add: Other income	36,258,893	78,529,255
Investment income (losses are
represented by"-")	-556,542	17,219,138
Including: Share in profit of
associates and
joint ventures	2,914,674	897,595
Gain on
derecognition of
financial assets
measured at
amortised cost
Gains from foreign
exchange (losses
are represented by
"-")
Gains from net
exposure to
hedging (losses
are represented
by"-")
Gains arising from
changes in fair
value (losses are
represented by
"-")	-520,088	-11,301,098
Impairment loss
of credit (loss
represented by
"-")	187,389	-24,202
Asset impairment
losses (loss
represented by
"-")	198,185	-2,962,754
Gains from disposal
of assets (losses
are represented by
"-")	771,774	-643,231
III. Operating profit (losses are represented
by "-")	1,029,955,556	614,452,303
Add: Non-operating income	51,748,109	4,272,905
Less: Non-operating expenses	46,421,300	1,831,485

- 22 -

	First quarter	First quarter
Items	of 2021	of 2020
IV. Total Profit (total losses are represented
by "-")	1,035,282,365	616,893,723
Less: Income tax expenses	181,113,065	157,602,184

1. Net Profit (net losses are represented by

"-")		854,169,300	459,291,539
(I) Classified on a going concern basis
1.	Net profit from continuing
	operations (net losses are
	represented by "-")	854,169,300	459,291,539

1. 1. Net profit from discontinued operations (net losses are represented by "-")
2. Classified according to ownership
3. 1. Net profit attributable to shareholders of the Company (net

losses are represented by "-")	855,254,275	459,956,420
2. Minority interests (net losses are
represented by "-")	-1,084,975	-664,881
VI. Net amount of other comprehensive
income after tax	78,232,685	39,662,419

1. Net amount of other comprehensive income after tax attributable to the

equity holders of the Company

78,232,685

39,662,419

1. Other comprehensive income which will not be reclassified to gain or loss

1. Changes in re-measurement of defined benefit plans
2. Other comprehensive income which will not be reclassified into profit and loss under the equity method
3. Changes in fair value of

other equity instruments investment

1. Changes in fair value of the company's own credit risk

- 23 -

		First quarter	First quarter
Items		of 2021	of 2020
2. Other comprehensive income which
will be reclassified to gain or loss	78,232,685	39,662,419
(1)	Other comprehensive income
	which will be reclassified
	into profit and loss under
	equity method
(2)	Changes in fair value of other
	debt investments
(3)	The amount of financial
	assets reclassified into other
	comprehensive income
(4)	Credit impairment provisions
	for other debt investment
(5)	Reserves for cash flows hedges
(6)	Difference arising from
	translation of foreign
	financial statements	78,232,685	39,662,419

1. 1. Others
2. Net amount of other comprehensive income after tax attributable to minority interest

VII. Total comprehensive income

932,401,985

498,953,958

1. Total comprehensive income attributable to the equity holders of

	the Company	933,486,960	499,618,839
(II)	Total comprehensive income
	attributable to minority shareholders	-1,084,975	-664,881
VIII. Earnings per share:
(I)	Basic earnings per share (RMB/share)	0.34	0.18
(II)	Diluted earnings per share (RMB/share)	0.34	0.18

For the business merger under common control during the period, the net profit recorded by the merged party before the merger is RMB0, and the net profit recorded by the merged party in the previous period is RMB0.

Person-in-charge of the	Principal-in-charge of	Head of the Accounting
Company:	accounting:	Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 24 -

Income Statement of the Company

January to March 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

Unit: Yuan Currency: RMB Audit Type: Unaudited

	First quarter	First quarter
Items	of 2021	of 2020
I. Operating revenue	1,211,229,339	926,759,527
Less: Cost of operation	1,028,909,909	787,768,712
Taxes and surcharges	3,528,482	3,794,784
Selling and distribution
expenses	84,200,641	62,984,888
General and administrative
expenses	90,345,379	75,457,706
Research and development
expenses	19,053,462	9,439,656
Financial expenses	-60,930,145	-175,218,861
Including: Interest expenses	43,397,384	47,798,853
Interest incomes	38,661,240	75,184,606
Add: Other income	2,760,054	16,919,423
Investment income (losses are
represented by"-")	2,324,075,435	11,555,424
Including: Share in profit of
associates and joint
ventures	1,508,238	643,325
Gain on
derecognition of
financial assets
measured at
amortised cost
Gains from net
exposure to
hedging (losses are
represented by"-")
Gains arising from
changes in fair
value (losses are
represented by
"-")	-520,088	-12,932,912
Credit impairment
loss (loss
represented by "-")

- 25 -

		First quarter	First quarter
Items		of 2021	of 2020
	Asset impairment
	losses (loss
	represented by "-")		-2,090,831
	Gains from disposal
	of assets (losses
	are represented by
	"-")
II. Operating profit (losses are
represented by "-")	2,372,437,012	175,983,746
Add: Non-operating income	739,618	2,185,409
Less: Non-operating expenses	786,771	230,118
III. Total Profit (total losses are
represented by "-")	2,372,389,859	177,939,037
Less: Income tax expenses	-460,001	48,529,612
IV. Net Profit (net losses are
represented by "-")	2,372,849,860	129,409,425
(I)	Net profit from continuing
	operations (net losses are
	represented by "-")	2,372,849,860	129,409,425

1. 1. Net profit from discontinued operations (net losses are represented by "-")
2. Net amount of other comprehensive income after tax
3. 1. Other comprehensive income which will not be reclassified to gain or loss
   2. 1. Changes in re-measurement of defined benefit plans
      2. Other comprehensive income which will not be reclassified into profit and loss under the equity method
      3. Changes in fair value of

other equity instruments investment

4. Changes in fair value of the company's own credit risk

- 26 -

	First quarter	First quarter
Items	of 2021	of 2020

1. Other comprehensive income which will be reclassified to gain or loss
2. 1. Other comprehensive income
      which will be reclassified into profit and loss under equity method
   2. Changes in fair value of other debt investments
   3. The amount of financial assets reclassified into other comprehensive income
   4. Credit impairment provisions for other debt investment
   5. Reserves for cash flows hedges
   6. Difference arising from translation of foreign financial statements
   7. Others

VI. Total comprehensive income	2,372,849,860	129,409,425
VII. Earnings per share:
(1)	Basic earnings per share
	(RMB/share)		Not applicable	Not applicable
(2)	Diluted earnings per share (RMB/
	share)		Not applicable	Not applicable
Person-in-charge of the	Principal-in-charge of	Head of the Accounting
	Company:	accounting:	Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 27 -

Consolidated Cash Flow Statement

January to March 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

Unit: Yuan Currency: RMB Audit Type: Unaudited

	First quarter	First quarter of
Items	of 2021	2020
I. Cash flows from operating activities:
Cash received from sale of goods or
rendering of labor services	6,195,699,596	5,170,575,736
Net increase in customer and interbank
deposits
Net increase in borrowing from the
central bank
Net increase in intra-bank borrowing
from other financial institutions
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy holders
and investment
Cash received from interest, handling
fees and commissions
Net increase in borrowings from
interbank
Net increase in cash received from
repurchase business
Net cash received from agency securities
trading
Refund of taxes and surcharges	75,505,324	44,720,076
Cash received relating to other operating
activities	99,642,174	173,451,200
Sub-total of cash inflows from
operating activities	6,370,847,094	5,388,747,012

- 28 -

	First quarter	First quarter of
Items	of 2021	2020
Cash paid for goods and labor services	2,867,971,713	3,008,018,194
Net increase in customer loans and
advance
Net increase in deposits in the central
bank and interbank deposits
Cash paid for compensation payments
under original insurance contract
Net increase in placements with financial
institutions
Cash paid for interest, handling fees and
commissions
Cash paid for insurance policy dividend
Cash paid to and on behalf of employees	1,240,549,762	1,142,227,905
Payments of taxes and surcharges	450,180,924	312,403,384
Cash paid relating to other operating
activities	54,151,128	55,874,674
Sub-total of cash outflows from
operating activities	4,612,853,527	4,518,524,157
Net cash flows from operating
activities	1,757,993,567	870,222,855
II. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets	28,049,280	22,850,299
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other investing
activities		878,634,241
Sub-total of cash inflows from
investing activities	28,049,280	901,484,540

- 29 -

	First quarter	First quarter of
Items	of 2021	2020
Cash paid for acquisition of fixed assets,
intangible assets and other long-term
assets	511,060,208	286,512,908
Cash paid for investment	11,320,755
Net increase in secured loans
Net cash paid to acquire subsidiaries and
other business units
Cash paid relating to other investing
activities		1,450,000,000
Sub-total of cash outflows from
investing activities	522,380,963	1,736,512,908
Net cash flows from investing
activities	-494,331,683	-835,028,368
III. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from capital
contributions by minority
shareholders of
subsidiaries
Cash received from borrowings	3,032,268,502	4,575,627,244
Cash received relating to other financing
activities		2,100,000,000
Sub-total of cash inflows from
financing activities	3,032,268,502	6,675,627,244
Cash repayments of borrowings	2,362,234,524	3,552,340,143
Cash payments for interest expenses and
distribution of dividends or profits	85,120,461	92,443,947
Including: Cash payments for dividends
or profit to minority
shareholders of subsidiaries
Cash payment relating to other financing
activities	43,261,673	37,512,629
Sub-total of cash outflows from
financing activities	2,490,616,658	3,682,296,719
Net cash flows from financing
activities	541,651,844	2,993,330,525

- 30 -

			First quarter	First quarter of
Items				of 2021	2020
IV. Effect of fluctuations in exchange rates
on cash and cash equivalents			30,184,761	107,323,600
V. Net increase in cash and cash
equivalents		1,835,498,489	3,135,848,612
Add: Cash and cash equivalents balance
at the beginning of the period	8,807,952,233	8,352,668,535
VI. Cash and cash equivalents balance at
the end of the period	10,643,450,72211,488,517,147
Person-in-charge of the	Principal-in-charge of	Head of the Accounting
Company:	accounting:			Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 31 -

Cash Flow Statement of the Company

January to March 2021

Prepared by: Fuyao Glass Industry Group Co., Ltd.

Unit: Yuan Currency: RMB Audit Type: Unaudited

	First quarter		First quarter
Items	of 2021		of 2020
I. Cash flows from operating
activities:
Cash received from sale of goods or
rendering of labor services	1,380,987,130	762,017,405
Refund of taxes and surcharges	49,624,603	35,582,919
Cash received relating to other
operating activities	1,018,420,754	1,756,797,285
Sub-total of cash inflows from
operating activities	2,449,032,487	2,554,397,609
Cash paid for goods and labor
services	1,126,429,378	897,886,892
Cash paid to and on behalf of
employees	142,412,646	135,785,018
Payments of taxes and surcharges	2,561,981	6,073,057
Cash paid relating to other operating
activities	1,231,118,782	196,613,416
Sub-total of cash outflows from
operating activities	2,502,522,787	1,236,358,383
Net cash flows from operating
activities	-53,490,300	1,318,039,226

- 32 -

	First quarter		First quarter
Items	of 2021		of 2020
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from returns on
investments
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets	970,336	24,303
Net cash received from disposal of
subsidiaries and other business
units
Cash received relating to other
investing activities		878,648,208
Sub-total of cash inflows from
investing activities	970,336	878,672,511
Cash paid for acquisition of fixed
assets, intangible assets and other	60,303,078
long-term assets	21,737,649
Cash paid for investment	110,575,755	520,430,400
Net cash paid to acquire subsidiaries
and other business units
Cash paid relating to other investing
activities		1,450,000,000
Sub-total of cash outflows from
investing activities	170,878,833	1,992,168,049
Net cash flows from investing
activities	-169,908,497	-1,113,495,538

- 33 -

			First quarter			First quarter
Items				of 2021			of 2020
III. Cash flows from financing
activities:
Cash received from capital
contributions			2,314,998,200
Cash received from borrowings	2,996,543,904
Cash received relating to other
financing activities					2,100,000,000
Sub-total of cash inflows from
financing activities			2,314,998,200	5,096,543,904
Cash repayments of borrowings	1,269,544,729	2,182,209,521
Cash payments for interest expenses
and distribution of dividends or	59,994,111
profits			45,691,835
Cash payment relating to other	29,818,179
financing activities			29,000,560
Sub-total of cash outflows from
financing activities			1,359,357,019	2,256,901,916
Net cash flows from financing
activities			955,641,181	2,839,641,988
IV. Effect of fluctuations in exchange
rates on cash and cash equivalents	25,664,609	57,731,407
V. Net increase in cash and cash
equivalents			757,906,993	3,101,917,083
Add: Cash and cash equivalents
balance at the beginning of
the period			7,338,352,816	6,258,632,627
VI. Cash and cash equivalents balance
at the end of the period	8,096,259,809	9,360,549,710
Person-in-charge of the	Principal-in-charge of	Head of the Accounting
Company:	accounting:		Department:
Cho Tak Wong	Chen Xiangming	Qiu Yongnian

- 34 -

1. Adjustments made to relevant items in the financial statements as at the beginning of the year upon initial adoption of the new lease standards since 2021
   Not applicable
2. Retroactive adjustments to comparative data of previous period by first adoption of new lease standards since 2021
   Not applicable
3. Auditor's reports

Not applicable

- 35 -