Luoyang Glass : ANNOUNCEMENT IN RELATION TO CANCELLATION OF SHARES AND REDUCTION OF REGISTERED CAPITAL

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.

＊

ANNOUNCEMENT IN RELATION TO CANCELLATION OF SHARES AND REDUCTION OF REGISTERED CAPITAL

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

References are made to (i) the overseas regulatory announcement of the Company dated 29 April 2019 in relation to its Board resolutions; (ii) the overseas regulatory announcement of the Company dated 30 April 2019 in relation to the compensation scheme for unfulfilled performance commitment in 2018 in respect of the target assets under the significant assets restructuring; (iii) the circular of the Company dated 30 May 2019 in relation to, among others, its Share Buy-backs (the "Circular"); (iv) the announcement of the Company dated 21 June 2019 in relation to its resolutions on the Annual General Meeting 2018, the 2019 first H Share Class Meeting and the 2019 first A Share Class Meeting, at which the resolutions on the compensation scheme for unfulfilled performance guarantee of Hefei New Energy, Tongcheng New Energy and Yixing New Energy in 2018 and the grant of authorisation to the Board to handle the share repurchase, cancellation, registered capital reduction and other relevant matters, amendments to relevant articles of Articles of Association of the Company in respect of total share capital and equity structure, and the implementation of relevant registration and filing procedures inside or outside the PRC (the "Authorisation") were considered and approved respectively; (v) the overseas regulatory announcement of the Company dated 21 June 2019 in relation to the creditor notification of the repurchase and cancellation of performance compensation shares and capital reduction; and (vi) the announcement of the Company dated 10 December 2019 in relation to Share Buy-backs. Unless otherwise indicated, capitalised terms used herein shall have the same meanings as those defined in the Circular.

- 1 -

1. CANCELLATION OF REPURCHASED SHARES AND REDUCTION OF REGISTERED CAPITAL
   Following the application of the Company, on 12 December 2019, the Company has cancelled the Shares repurchased on 10 December 2019 in the Shanghai Branch of the China Securities Depository and Clearing Corporation Limited, and will timely handle the registration procedures for industrial and commercial changes and other related matters.
   Upon completion of the cancellation of the repurchased Shares, the total number of Shares of the Company will be changed from 559,797,391 Shares to 552,396,509 Shares, and the registered capital of the Company will also be changed from RMB559,797,391 to RMB552,396,509.

1. CHANGES IN THE SHAREHOLDING
   As a result of the aforementioned Share Buy-backs and cancellation, the changes to the shareholding of the Company are as follows:

			Before the Share Buy-backs	Total	After the Share cancellation
Type of Shares				number of
	Number of	Proportion	Number of	Proportion
	repurchased
			Shares	(%)	Shares	(%)
			Shares
Shares subject to trading		A Shares	30,001,240	5.36	6,650,608	23,350,632	4.23
moratorium		H Shares	0	0	0	0	0
Shares not subject to trading		A Shares	279,796,151	49.98	750,274	279,045,877	50.51
moratorium		H Shares	250,000,000	44.66	0	250,000,000	45.26
Total number of Shares		559,797,391	100.00	7,400,882	552,396,509	100.00

By order of the Board

Luoyang Glass Company Limited*

Zhang Chong

Chairman

Luoyang, the PRC

12 December 2019

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

- 2 -