Earnings release
Page 1
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. (Stock Code: 3606) (A joint stock limited company incorporated in the People’s Republic of China with limited liability) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 The board of directors (the “ Board ”) of Fuyao Glass Industry Group Co., Ltd. (the “Company”) is pleased to announce the unaudited interim results of the Company and its subsidiaries for the six months ended June 30, 2026. This announcement, containing the full text of the 2026 interim report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) in relation to information to accompany preliminary announcements of the interim results. The Company’s 2026 interim report will be published and available for viewing on the websites of the Hong Kong Stock Exchange at http://www.hkexnews.hk and of the Company at http://www.fuyaogroup.com before the end of September 2026. By order of the Board Fuyao Glass Industry Group Co., Ltd. Tso Fai Chairman Fuzhou, Fujian, the PRC, August 18, 2026 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, Mr. Chen Xiangming and Ms. Zhang Haiyan, as executive Directors; Mr. Wu Shinong and Ms. Zhu Dezhen, as non-executive Directors; Ms. Liu Xiaozhi, Ms. Cheng Yan, Mr. Xue Zuyun and Mr. Dat Dzeng Hao Daniel, as independent non-executive Directors.
Page 2
Fuyao Glass Industry Group Co., Ltd. IMPORTANT NOTICE I. The Board of Directors, the directors, and senior management members of the Company warrant that the content of this interim report is true, accurate and complete and does not contain any false representations, misleading statements or material omissions, and severally and jointly accept legal responsibility thereof. II. All the directors of the Company have attended the Board meeting. III. This interim report is unaudited. IV. Tso Fai, the person-in-charge of the Company, Chen Xiangming, the person-in-charge of accounting and Weng Jiao, the head of the accounting department (in charge of accounting), warrant the truthfulness, accuracy and completeness of the financial report in this interim report. V. Plan for profit distribution or conversion of capital reserves into share capital as approved by the Board by way of resolution during the Reporting Period The net profit attributable to shareholders of ordinary shares of the Company in the first half of 2026 as shown on the consolidated financial statements prepared in accordance with the China Accounting Standards for Business Enterprises amounted to RMB 3,970,299,706. The net profit attributable to shareholders of ordinary shares of the Company in the first half of 2026 as shown on the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) amounted to RMB3,970,084,425. The net profit in the first half of 2026 as shown on the Company’s financial statements prepared in accordance with the China Accounting Standards for Business Enterprises amounted to RMB 7,238,142,775; adding the undistributed profits of RMB 7,093,827,824 at the beginning of the year of 2026, and deducting the distributed profits of RMB 3,131,692,238 for the year of 2025 , the profits distributable to the shareholders of the Company as at June 30, 2026 amounted to RMB11,200,278,361. Taking into comprehensive consideration of reasonable returns for investors and the sustainable development of the Company, the Company intends to distribute 2026 interim profits. The interim profit distribution plan for the year of 2026 as proposed by the Company is as follows: Based on the total number of shares registered on the record date in respect of the interim equity distribution for the year of 2026, the Company proposes to distribute cash dividends to the holders of A shares and holders of H shares whose names appear on the register of members on the record date in respect of the interim equity distribution for the year of 2026, with a cash dividend of RMB 1.00 (tax inclusive) per share, and the remaining undistributed profits of the Company will be carried forward to the second half of 2026. As of June 30, 2026, the total number of shares of the Company was 2,609,743,532, based on which, the total cash dividend proposed to be distributed was RMB2,609,743,532.00 (tax inclusive). The aforesaid amount of cash dividend proposed to be distributed accounted for 65.73% of the net profit attributable to shareholders of ordinary shares of the Company as shown on the consolidated financial statements of the period prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. The Company will not carry out bonus issue and conversion of capital reserve into share capital for the interim period of 2026. The cash dividends distributed by the Company are denominated and declared in RMB and payable in RMB to holders of A shares, and in HKD to holders of H shares. If the total number of shares of the Company changes between the date of disclosure of such profit distribution plan and the record date for the implementation of equity distribution, the Company proposes to maintain the distribution ratio per share unchanged and make adjustment to the total distribution accordingly. The details of adjustments will be published separately. VI. Risks disclaimer of the forward-looking statements The forward-looking statements in this report such as future plans and development strategies do not constitute an actual commitment of the Company to investors. Investors and people concerned should maintain sufficient risk awareness in this regard and understand the difference between plans, predictions and commitments. Investors should be aware of the investment risks. VII. Any appropriation of fund by the controlling shareholder and its connected parties for non-operating purpose No VIII. Any provision of external guarantee in violation of the stipulated decision- making procedure No IX. Whether more than half of the directors are unable to provide assurance as to the truthfulness, accuracy and completeness of the interim report disclosed by the Company No X. Material risk alert The Company has described details of the possible risks and its countermeasures in this report. Investors are advised to refer to the relevant sections such as “ Section III Management Discussion and Analysis” in this report for descriptions in respect of the risks we may be exposed to.
Page 3
Section I Definitions 2 Section II Corporate Profile and Principal Financial Indicators 3 Section III Management Discussion and Analysis 8 Section IV Corporate Governance, Environment and Society 38 Section V Significant Events 42 Section VI Changes in Shares and Information of Shareholders 50 Section VII Relevant Information on Bonds 55 Section VIII Financial Report 58 Contents
Page 4
Fuyao Glass Industry Group Co., Ltd. 2 Section I Definitions In this report, unless the context otherwise requires, the following expressions shall have meanings as follows: DEFINITIONS OF COMMON TERMS PRC, China the People’s Republic of China CSRC China Securities Regulatory Commission SSE the Shanghai Stock Exchange Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited Hong Kong Listing Rules the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited SFO the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) Company Law the Company Law of the People’s Republic of China Company, the Company, Listed Company, Fuyao Glass, Fuyao Fuyao Glass Industry Group Co., Ltd. Group, the Group Fuyao Glass Industry Group Co., Ltd. and its subsidiaries Board of Directors the board of directors of the Company Articles of Association the current valid articles of association of the Company RMB, RMB1,000, RMB10,000 and RMB100 million Renminbi 1 Yuan, Renminbi 1,000 Yuan, Renminbi 10,000 Yuan, Renminbi 100 million Yuan, the lawful currency in circulation in the PRC. Unless otherwise specified, amounts stated in this report are denominated in RMB PVB polyvinyl butyral OEM, ancillary business automotive glass and services used in new vehicles of automobile factories ARG, spare parts and component business used in aftermarket repairing glass, a kind of automotive glass that is produced for replacement purposes for aftermarket suppliers laminated glass automotive safety glass made by two or more than two layers of automobile grade float glass bonded with a layer or various layers of PVB tempered glass automotive safety glass made by heating automotive grade float glass to a certain temperature, then promptly cooling it down evenly after being shaped float glass the glass produced by applying float technology Reporting Period the six months from January 1, 2026 to June 30, 2026
Page 5
Interim Report 2026 3 Section II Corporate Profile and Principal Financial Indicators I. COMPANY INFORMATION Name of the Company in Chineseʮ̡ Chinese abbreviation of the Companyᆨ Name of the Company in English Fuyao Glass Industry Group Co., Ltd. English abbreviation of the Company FYG, FUYAO GLASS Legal representative of the Company Tso Fai II. CONTACT PERSON AND CONTACT METHODS Secretary to the Board of Directors Representative of the Securities Affairs Name Li Xiaoxi Zhang Wei Contact Address District II of Fuyao Industrial Zone, Fuqing City, Fujian Province District II of Fuyao Industrial Zone, Fuqing City, Fujian Province Telephone 0591–85383777 0591–85383777 Fax 0591–85363983 0591–85363983 E-mail 600660@fuyaogroup.com 600660@fuyaogroup.com III. BASIC INFORMATION Registered address of the Company Fuyao Industrial Zone, Rongqiao Economic & Technological Development Zone, Fuqing City, Fujian Province Historical changes in the registered address of the Company Nil Office address of the Company District II of Fuyao Industrial Zone, Fuqing City, Fujian Province Postal code of the office address of the Company 350301 Website of the Company http://www.fuyaogroup.com E-mail 600660@fuyaogroup.com Query index of changes during the Reporting Period Nil Principal place of business in Hong Kong Room 1907, Shun Tak Centre, West Tower, 200 Connaught Road Central, Central, Hong Kong Custodian of A shares Shanghai Branch of China Securities Depository and Clearing Corporation Limited Business address No. 188 Yanggao South Road, Pudong New District, Shanghai H share registrar Computershare Hong Kong Investor Services Limited Business address Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong
Page 6
Fuyao Glass Industry Group Co., Ltd. 4 Section II Corporate Profile and Principal Financial Indicators IV. INFORMATION DISCLOSURE AND PLACE OF INSPECTION Newspaper selected by the Company for information disclosure Shanghai Securities News, China Securities Journal and Securities Times Websites for publishing the interim report of the Company SSE: http://www.sse.com.cn Hong Kong Stock Exchange: http://www.hkexnews.hk Place of inspection of the interim report of the Company Secretarial Office of the Board of Directors of the Company, District II of Fuyao Industrial Zone, Fuqing City V. INFORMATION ON THE COMPANY’S SHARES Class of shares Stock exchange on which shares are listed Stock abbreviation Stock code A share SSE FUYAO GLASS 600660 H share Hong Kong Stock Exchange FUYAO GLASS 3606 VI. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS OF THE COMPANY (I) Key accounting data Unit: ’000 Currency: RMB Key accounting data During the Reporting Period (January – June) (Unaudited) Corresponding period last year (Unaudited) Increase/ decrease of the Reporting Period as compared with the corresponding period last year (%) Revenue 21,971,105 21,447,392 2.44 Profit before tax 4,638,131 5,794,033 -19.95 Profit for the Reporting Period attributable to owners of the Company 3,970,084 4,804,424 -17.37 Profit for the Reporting Period attributable to owners of the Company, net of non-recurring profits or losses (Note) 3,879,167 4,706,683 -17.58 Net cash generated from operating activities 4,550,946 5,354,476 -15.01
Page 7
Interim Report 2026 5 Section II Corporate Profile and Principal Financial Indicators VI. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS OF THE COMPANY (CONTINUED) (I) Key accounting data (Continued) Unit: ’000 Currency: RMB At the end of the Reporting Period At the end of last year Increase/decrease at the end of the Reporting Period as compared with the end of last year (Unaudited) (Audited) (%) Equity attributable to owners of the Company 38,183,253 37,565,508 1.64 Total assets 73,959,909 70,071,397 5.55 Note: The “Profit for the Reporting Period attributable to owners of the Company, net of non-recurring profits or losses” was prepared in accordance with the China Accounting Standards for Business Enterprises. (II) Key financial indicators Key financial indicators During the Reporting Period (January – June) (Unaudited) Corresponding period last year (Unaudited) Increase/ decrease of the Reporting Period as compared with the corresponding period last year (%) Basic earnings per share (RMB/ share) 1.52 1.84 -17.39 Diluted earnings per share (RMB/ share) 1.52 1.84 -17.39 Return on equity (%) 10.40 13.47 -3.07 Explanation of Key Accounting Data and Financial Indicators of the Company Profit before tax for Reporting Period decreased by 19.95% year-on-year, mainly due to the impact of exchange gains and losses. An exchange loss of RMB802,632 thousand was recorded in Reporting Period, compared with an exchange gain of RMB601,551 thousand in the corresponding period of last year. Excluding the impact of the aforesaid factors, profit before tax for Reporting Period rose by 4.78% over the corresponding period of last year.
Page 8
Fuyao Glass Industry Group Co., Ltd. 6 Section II Corporate Profile and Principal Financial Indicators VII. DIFFERENCES IN ACCOUNTING DATA BETWEEN DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS (I) Differences between the profit for the Reporting Period and equity attributable to owners of the Company in the financial statements prepared under the International Financial Reporting Standards and under the China Accounting Standards for Business Enterprises Unit: ’000 Currency: RMB Profit for the Reporting Period attributable to owners of the Company Equity attributable to owners of the Company Amount for the Reporting Period (Unaudited) Amount for the corresponding period last year (Unaudited) Amount at the end of the Reporting Period (Unaudited) Amount at the beginning of the Reporting Period (Audited) Prepared in accordance with the China Accounting Standards for Business Enterprises 3,970,300 4,804,712 38,174,427 37,556,465 Adjustments to items and amounts in accordance with the International Financial Reporting Standards: Reversal of impairment for buildings and land use rights and the differences in corresponding depreciation and amortization -216 -288 8,826 9,043 Prepared in accordance with the International Financial Reporting Standards 3,970,084 4,804,424 38,183,253 37,565,508
Page 9
Interim Report 2026 7 Section II Corporate Profile and Principal Financial Indicators VII. DIFFERENCES IN ACCOUNTING DATA BETWEEN DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS (CONTINUED) (II) Explanation on the differences under domestic and overseas accounting standards: In addition to preparing the financial statements for H shares in accordance with IFRSs, the Company, with its A shares listed on the SSE, is also required to prepare financial statements in accordance with the China Accounting Standards for Business Enterprises. There are differences between the financial statements prepared by the Company in accordance with IFRSs and those prepared by the Company in accordance with the China Accounting Standards for Business Enterprises: Yung Tak Investment Limited, a subsidiary established by the Group in the Hong Kong Special Administrative Region, made provision for impairment with respect to the differences between recoverable amounts and carrying amounts of buildings and land use rights in previous years. The provision for long-term asset impairment was subject to the “ Accounting Standards for Business Enterprises No. 8 – Assets Impairment” issued by the Ministry of Finance on February 15, 2006. Upon recognition, the loss on asset impairment of the Group shall not be reversed in subsequent accounting periods. Under IFRSs, the loss on asset impairment, excluding goodwill, recognized in previous periods should be reversed as there have been changes in the estimates used by the Group for determining the recoverable amounts of assets since the last recognition of loss on impairment. The differences between IFRSs and the China Accounting Standards for Business Enterprises will have an impact on the provision for (and loss on) asset impairment of the Group, and operating results (depreciation/amortization) of the buildings and land use rights within their useful lives, thus resulting in the adjustments above. VIII. NON-RECURRING PROFIT OR LOSS ITEMS AND AMOUNTS (PREPARED IN ACCORDANCE WITH THE CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES) Unit: Yuan Currency: RMB Non-recurring profit and loss items Amount Profit or loss from disposal of non-current assets, including the portion offset from the provision for impairment of assets -13,594,068 Government subsidies recorded under current profit or loss, other than those closely related to the normal business operations of the Company, in compliance with national policy requirements, enjoyed in accordance with defined standards and having a sustained impact on the Company’s profit or loss 143,672,974 Profit or loss from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and profit or loss from disposal of financial assets and financial liabilities, other than effective hedging activities related to the normal business operations of the Company 36,851,971 Other profit or loss items falling within the meaning of non-recurring profit or loss -72,443,119 Less: Effects of income tax 3,714,298 Effects of minority interests (after tax) -359,147 Total 91,132,607
Page 10
Fuyao Glass Industry Group Co., Ltd. 8 Section III Management Discussion and Analysis I. INDUSTRY OVERVIEW AND PRINCIPAL BUSINESS DURING THE REPORTING PERIOD (I) Principal business and business model The Company is principally engaged in providing total solutions of safety glass and automotive accessories for various transportation vehicles, including design, manufacture and sale of automotive grade float glass, automotive glass, locomotive glass, luggage racks, vehicle window trims and provision of relevant services. The business model of the Company is globalized research and development, design, manufacture, distribution and after-sales services. Adhering to its brand development strategy of maintaining an industry-leading position in technology and quickly responding to market changes, the Company works with its customers on product design, manufacturing and rendering of services, focuses on improving its business ecological chain and responds to the ever-changing demand of customers systematically, professionally and rapidly, thus creating value for its customers. Set out below is a breakdown of revenue by products for the periods indicated: Unit: ’000 Currency: RMB Product Revenue Cost of sales Gross profit margin Change in revenue as compared with corresponding period last year Change in cost of sales as compared with corresponding period last year Change in gross profit margin as compared with corresponding period last year (%) (%) (%) (%) Automotive glass 20,270,178 13,779,600 32.02 3.75 1.52 1.49 Float glass 3,160,754 1,866,921 40.93 2.11 -1.64 2.24 Others 2,463,272 1,740,587 Less: In tragroup elimination (3,923,099) (3,836,886) Total 21,971,105 13,550,222 38.33 2.44 -0.37 1.74 (II) Industry overview According to the statistics released by the China Association of Automobile Manufacturers, automobile production volume and sales volume in China from January to June 2026 amounted to 14.993 million units and 15.017 million units, representing a year-on-year decrease of 4% and 4.1%, respectively. As of 2025, China has ranked first in the world for 17 consecutive years in terms of automobile production volume and sales volume.
Page 11
Interim Report 2026 9 Section III Management Discussion and Analysis I. INDUSTRY OVERVIEW AND PRINCIPAL BUSINESS DURING THE REPORTING PERIOD (CONTINUED) (II) Industry overview (Continued) For the automobile industry, in the short term, the automobile market continues to recover, but the domestic and international situation remains complex and severe, with ongoing challenges and uncertainties. Facing the complex and severe domestic and international environment, the Chinese government has continuously increased its macro-control efforts, focused on expanding domestic demand and optimizing its industrial structure, while also actively expanding its overseas markets and promoting automobile consumption through a series of precise and effective policies and measures, such as optimizing purchase restriction policies, conducting a new round of automobile subsidies for rural areas, encouraging trade-ins, and renewing and optimizing the reduction and exemption of the purchase tax on new energy vehicles to the end of December 2027, among other initiatives at stimulating automobile consumption. With the in-depth implementation and sustained efforts of these policies to promote consumption and stabilize growth, China’s automobile market is expected to continue to maintain a stable and good development trend and achieve structural optimization. In terms of the global automobile industrial structure, the proportion of developing countries in new automobile production and automobile ownership has been increasing, resulting in their greater influence; but there is still a tremendous gap between developing countries and developed countries in terms of automobile popularisation. In 2025, the automobile ownership per 100 population reached over 50 units in developed countries including the US, Japan and Germany, while in developing China, it was only approximately 26 units, much lower than that in major developed countries. In terms of China’s population, the percentage of middle-income groups and GDP per capita, there is still growth potential in China’s automobile consumption, and the comprehensive supply chain system within China provides robust support for the development of the automotive industry. Therefore, as a supporting industry of the automobile industry, there is still great room for development in the industry. The automobile is developing towards the trend of “ electrification, networking, intelligence and sharing” (new four modernizations) and the automobile industry has now entered a new stage of development characterized by diversified demands and an optimized structure. The penetration rate of new energy vehicles is increasing and smart vehicles have been made available in everyday use. Vehicles have transformed from simple transportation tools to “ intelligent mobile terminal” . Due to the development of new four modernizations, more and more new technologies are also being integrated into automobile glass. It puts forward new requirements for automobile glass and also provides new opportunities for the development of the automobile glass industry. Accordingly, automotive glass has developed towards “ safety and comfort, energy conservation and environmental friendliness, beautiful appearance, and intelligence and integration” with growing share of the high value-added products such as smart and panoramic skylight glass, dimmable glass, head-up display glass and coated heatable glass and flush tempered laminated glass. The industry-leading position of Fuyao in terms of technology has brought structural opportunities to the sale of automotive glass of the Company. Therefore, as a supporting industry of the automobile industry, there is still stable room for development for the industry in the medium and long run. Note: The sources of the above information include information from Organization Internationale des Constructeurs d’Automobiles (OICA), the China Association of Automobile Manufacturers and the International Organization of Motor Vehicle Manufacturers.
Page 12
Fuyao Glass Industry Group Co., Ltd. 10 Section III Management Discussion and Analysis II. DISCUSSION AND ANALYSIS ON OPERATION RESULTS As a worldwide leading enterprise engaged in integrated solutions for the design, development, manufacturing, supply and service of automotive glass and automotive grade float glass, Fuyao adheres to its brand development strategy of pursuing ultimate quality, maintaining an industry-leading position in technology and quickly responding to market changes. During the Reporting Period, Fuyao continuously provided automobile manufacturers and maintenance market worldwide with products and services of automotive safety glass crafted with the wisdom and care of the Fuyao staff and provided global automobile users with intelligent, safe, comfortable, environment-friendly and trendy total solutions relating to automotive safety glass and automotive decoration, while making the in-vehicle experience of drivers and passengers more enjoyable. In the first half of 2026, the global economy was affected by multiple factors such as intensifying geopolitical conflicts, trade protectionism and tariffs, diverging domestic and external demand, and volatile energy supply chains, resulting in a complex and volatile overall environment characterized by heightened uncertainty. Driven by the three major trends of electrification, intelligentisation and globalisation, China’s automotive industry experienced continuous transformation and upgrading and a significant increase in overseas exports of new energy vehicles, though the domestic end-user demand remained relatively weak. According to the statistics released by the China Association of Automobile Manufacturers, automobile production volume and sales volume from January to June 2026 amounted to 14.993 million units and 15.017 million units, representing a year-on-year decrease of 4% and 4.1%, respectively. During the Reporting Period, the Company, on a consolidated basis, realized revenue of RMB21,971,105 thousand, representing an increase of 2.44% as compared with the corresponding period last year, which was above the level of the industry growth; realized profit before tax of RMB4,638,131 thousand, representing a decrease of 19.95% as compared with the corresponding period last year; realized profit for the Reporting Period attributable to owners of the Company of RMB3,970,084 thousand, representing a decrease of 17.37% as compared with the corresponding period last year; and realized earnings per share of RMB1.52, representing a decrease of 17.39% as compared with the corresponding period last year. Total profit before tax for the Reporting Period decreased by 19.95% year-on-year, mainly due to the impact of exchange gains and losses. The Company recorded an exchange loss of RMB802,632 thousand in the Reporting Period, compared with an exchange gain of RMB601,551 thousand in the same period of last year. Excluding the above-mentioned impact, total profit before tax for the Reporting Period rose by 4.78% from the same period of last year. During the Reporting Period, the Company carried out the following work according to the Group’s business strategy centered on “continuously creating values for customers” with the market-oriented approach, the support of technological innovation and the protection by standardised management, to ensure the improvement of the comprehensive competitiveness of the Company: 1. Optimize full-scale market layout and deepen customer value operation: During the Reporting Period, the Company adhered to a dual-driven development model covering domestic and overseas markets and implemented the strategy of retaining existing customers while developing new markets. It continuously deepened customer relationship management, iteratively optimized the customer service system, accurately matched customer demands, effectively boosted customer satisfaction and partnership stickiness, consolidated the fundamental market base, and enhanced independent risk resilience.
Page 13
Interim Report 2026 11 Section III Management Discussion and Analysis II. DISCUSSION AND ANALYSIS ON OPERATION RESULTS (CONTINUED) 2. Accelerate the construction and launch of new projects to expand production and supply capacity: The Company pushed forward key new projects in an orderly manner, including aluminum component projects in Shanghai and Chongqing, trim part and mold projects in Anhui. It scientifically coordinated project schedules and resource allocation, and rigorously controlled construction quality, improved and expanded the Company’s production capacity and strengthened its ability to guarantee order delivery. 3. Focus on core technological innovation to seize first-mover advantage in the industry: C losely tracking industrial development trends, the Company strengthened research and judgment on cutting-edge technologies and market trends. Centering on the core field of automotive glass, it pooled resources to tackle new product R&D and process upgrading, speed up product iteration cycles, and continuously consolidate its leading position in the industry. During the Reporting Period, the proportion of high value-added products maintained steady growth, including intelligent panoramic sunroof glass, dimmable glass, HUD display glass, super-insulated glass, lightweight ultra-thin glass, heatable coated glass and flush tempered laminated glass. Their proportion rose by 8.03 percentage points year-on-year, fully unlocking product value. 4. Optimize management model and establish rapid response mechanism: The Company gradually transformed towards a flat, project-based and rapid-response operating framework. Synchronized collaboration was realized among sales, R&D, procurement, production and quality functions to comprehensively improve organizational and production flexibility. Rapid response capabilities were built across the entire industrial chain to lift overall operational efficiency and management effectiveness, ensuring stable and efficient corporate operation. 5. Improve the quality management system and uphold the industry quality benchmark: Quality is the lifeline of an enterprise. Adhering to source control, the Company built an integrated quality barrier covering R&D, design, supply chain, product development and production. Change management and process self-completion requirements were enforced. The Company delegated quality management responsibilities down the supply chain, strengthened coordinated control between upstream and downstream partners, established a full-chain closed-loop quality management system, and rigorously contained quality risks. 6. Pursue digital and intelligent transformation to empower the development of the entire industrial chain: The Company steadily pushed forward digital and intelligent transformation, carried out continuous automation upgrading of production lines, and built a digital intelligent control platform. Integrated management and intelligent analysis of production, quality control and operational data have been realized to comprehensively boost full-process operational efficiency.
Page 14
Fuyao Glass Industry Group Co., Ltd. 12 Section III Management Discussion and Analysis II. DISCUSSION AND ANALYSIS ON OPERATION RESULTS (CONTINUED) 7. Consolidate talent foundation and unleash intrinsic organizational momentum: Talent constitutes the primary core resource of an enterprise. All departments took initiative to assume responsibilities for talent planning, development and appointment. The Company smoothed career progression paths, continuously improved the working environment, fostered a sound talent ecosystem, built a lean and high-performing workforce, and underpinned the high-quality transformation of the Group. Material changes in the operation of the Company during the Reporting Period and events that occurred during the Reporting Period that have had a significant impact on the operation of the Company and are expected to have a significant impact in the future Please refer to “ II. DISCUSSION AND ANALYSIS ON OPERATION RESULTS” above for details. III. ANALYSIS ON THE CORE COMPETITIVENESS DURING THE REPORTING PERIOD During the Reporting Period, the Company continued to strengthen its core competitiveness: 1. Fuyao, a company with strong sense of social responsibility and mission, has gained trust from global automobile manufacturers, users, suppliers and investors by fulfilling its supporting role in the world’s automobile industry and contributing transparent, exquisite glass to the world. Brand is the core competitiveness of Fuyao. 2. Fuyao has developed a team with devotion, passion, unity and ambition who has competitive advantages in the industry in terms of operation, management, technology, quality, technique, design and IT. 3. The standardized, transparent and international financial system and the ERP-based process optimization system of Fuyao lay a solid foundation for the digitalization and intelligentization of “Industry 4.0” . 4. Fuyao has built a relatively comprehensive industrial ecology, such as sand mineral resources, quality float technology, research and development of process and equipment, multi-function integrated glass, extension to aluminum trim industry, global R&D centers and supply chain network; unique staff training and development mechanism, all of which form the systematic business advantages of Fuyao and create a competitive moat. 5. Development strategy that highlights specialism, devotion and concentration enables the Company to respond promptly to market changes and provide Total Solution of automotive glass and automotive accessories to customers.
Page 15
Interim Report 2026 13 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (I) Analysis on principal business 1. Table of analysis of changes in relevant items in the financial statements Unit: ’000 Currency: RMB Items For the Reporting Period For the corresponding period last year Percentage of change (%) Revenue 21,971,105 21,447,392 2.44 Cost of sales 13,550,222 13,600,077 -0.37 Distribution costs 649,339 625,336 3.84 Administrative expenses 1,721,846 1,597,792 7.76 Finance costs – net -305,750 -279,239 -9.49 Research and development expenses 1,033,054 882,847 17.01 Net cash generated from operating activities 4,550,946 5,354,476 -15.01 Net cash used in investing activities -2,524,725 -2,788,956 -9.47 Net cash generated from/(used in) financing activities 1,470,709 -3,043,172 Not applicable Other (losses)/gains – net -856,195 614,716 Not applicable Income tax expenses 666,346 986,617 -32.46 Reasons for changes in revenue: The increase in revenue was mainly attributable to a higher proportion of the Company’s high value-added products. Reasons for changes in cost of sales: The decrease in cost of sales was mainly due to the Company’s continuous efforts in improving quality and efficiency, as well as enhancing cost control measures.. Reasons for changes in distribution costs: The increase in distribution costs was mainly attributable to higher revenue, which led to a corresponding rise in relevant expenses. Reasons for changes in administrative expenses: The increase in administrative expenses was mainly due to higher staff salaries.
Page 16
Fuyao Glass Industry Group Co., Ltd. 14 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (I) Analysis on principal business (Continued) 1. Table of analysis of changes in relevant items in the financial statements (Continued) Reasons for changes in finance costs-net: The decrease in net finance costs was mainly attributable to lower finance costs during the Reporting Period. Reasons for changes in research and development expenses: The increase in research and development expenses was mainly because the Company made greater efforts in the investment in R&D projects, sustained research and innovation, and promoted technological upgrading and higher value added of products. Reasons for changes in net cash generated from operating activities: The decrease in net cash generated from operating activities was mainly attributable to the settlement of bills payable outstanding at the end of last year during the Reporting Period, resulting in a year- on-year increase in cash outflows, as well as the reduced usage of commercial bills and increased cash settlement of purchases in the Reporting Period. Reasons for changes in net cash used in investing activities: The decrease in net cash used in investing activities was mainly due to a year-on-year reduction in purchases of property, plant and equipment during the Reporting Period. Reasons for changes in net cash generated from/(used in) financing activities: The increase in net cash generated from financing activities was primarily attributable to: (i) a year-on- year increase in net financing of RMB3,057 million during the Reporting Period; and (ii) a year-on-year decrease in dividends paid of RMB1,442 million, which was mainly due to the timing difference in dividend distribution, as the full-year dividend for 2024 was paid in the corresponding period of last year, whereas only the final dividend for 2025 was paid in the Reporting Period (the interim dividend having been distributed within 2025). Reasons for changes in other (losses)/gains-net: The movement in net other gains/(losses) was mainly attributable to exchange losses of RMB803 million arising from exchange rate fluctuations during the Reporting Period, compared with exchange gains of RMB602 million recorded in the same period last year. Reasons for changes in income tax expenses: The decrease in income tax expense was primarily attributable to the decrease in profit before tax during the Reporting Period, and the corresponding decrease in deferred tax liabilities recognised in respect of the remittance of profits from overseas subsidiaries.
Page 17
Interim Report 2026 15 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (II) Analysis on assets and liabilities 1. Assets and liabilities Unit: ’000 Currency: RMB Names of items Closing balance The percentage of closing balance to the total assets Closing balance of the previous period The percentage of closing balance of the previous period to the total assets Change in the closing balance as compared with the closing balance of the previous period Explanations (%) (%) (%) Financial assets-current assets at fair value through profit or loss 307,533 0.42 10,916 0.02 2,717.27 The increase in financial assets-current assets at fair value through profit or loss – current was primarily attributable to the purchase of structured deposits during the Reporting Period, of which RMB300 million remained outstanding and had not yet matured as at the end of the Reporting Period. Derivative financial instruments 20,629 0.03 – – 100.00 The increase in derivative financial instruments was primarily attributable to the currency swap and other contracts outstanding for settlement as at the end of the Reporting Period, which were valued as financial assets as a result of exchange rate fluctuations. Contract assets 26,078 0.04 – – 100.00 The increase in contract assets was mainly due to policy adjustments to export tax rebates in the first half of 2026. Export of relevant goods no longer qualifies for export tax rebates and value-added tax is required to be paid. Accordingly, the value-added tax receivable arising from ongoing performance obligations is recognised under contract assets until the Company obtains an unconditional right to receive payment. Borrowing-non-current liabilities 7,764,243 10.50 3,669,045 5.24 111.61 The increase in borrowings-non-current liabilities was mainly attributable to business expansion and optimisation of the financing structure. Current tax liabilities 388,799 0.53 709,115 1.01 -45.17 The decrease in current tax liabilities was primarily attributable to: (i) the completion of the final tax settlement for last year’s corporate income tax during the Reporting Period, which resulted in a corresponding decrease in taxes payable; and (ii) the decrease in profit before tax during the Reporting Period, which led to a corresponding decrease in the current income tax expense provided.
Page 18
Fuyao Glass Industry Group Co., Ltd. 16 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (II) Analysis on assets and liabilities (Continued) 2. Overseas assets (1) Size of assets Including: overseas assets of RMB25,305 million, accounting for 34.21% of the total assets. (2) Details of the higher percentage of overseas assets The overseas assets are the assets in the account of the overseas subsidiaries which are established by the Company and the deposits of the parent company which are deposited in foreign currencies in Hong Kong. In particular, the total assets of Fuyao Glass America Inc., an overseas subsidiary (including 100%-controlled Fuyao Glass Illinois Inc. and Fuyao Asset Management C, LLC), amounted to RMB 8,513 million as at June 30, 2026, with the revenue amounting to RMB 3,975 million and net profit amounting to RMB467 million in the first half of 2026. 3. Major restricted assets as at the end of the Reporting Period As at the end of the Reporting Period, the major restricted assets consisted of restricted cash deposits of RMB31,146 thousand and certain pledged assets (see “4. Details of charge on assets” of this section). 4. Details of charge on assets As at 30 June 2026, the pledged assets of the Group mainly comprised: (1) Land and buildings with a carrying amount of RMB13,777 thousand (original cost: RMB34,571 thousand) pledged as collateral for a credit facility of HK$30,000 thousand; and (2) Notes receivable of RMB85,355 thousand (including notes receivable measured at fair value through other comprehensive income) pledged as security for notes payable issued by the Group.
Page 19
Interim Report 2026 17 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (II) Analysis on assets and liabilities (Continued) 5. Details of number of employees, remuneration policy and training plans (1) Number of employees: as at the end of the Reporting Period, the number of employees of the Company was 42,222, representing a decrease of 319 employees as compared with that at the end of 2025. (2) Remuneration policy: based on the principles of fairness, competitiveness, incentives and legality, the Company formulated its remuneration policy. Remuneration of employees is mainly composed of various items including basic salaries, performance salaries, bonuses, subsidies and allowance; salaries are adjusted in accordance with the Company’s performance, and employees’ performance and capability in a timely manner. In addition, the Company participated in the programme of the “ five social insurances and one housing fund” as stipulated and made contributions to social insurance contributions and housing provident fund as scheduled. (3) Training plans: according to the Group’s strategic plan and annual operating policy and plan, the Company made training plans. The Group provides orientation training and on-the-job education for the growth of the employees, of which the orientation training covers subjects such as corporate culture and policies, work ethic and quality, major products and businesses, production process, quality management and occupational safety. The on-the-job education covers mandatory training required by the applicable laws and regulations such as environment, health and safety management systems, and special training which covers all types of personnel at all levels. In order to meet the needs of its strategic plan, the Group held various training projects for management cadres at all levels, key business and technical staff and high potential talents, including training camp on management in the age of digitalization, in-service cadres cultivation project, reserve cadres cultivation project, key technical talents cultivation project and lean leading expert training projects, and simultaneously developed micro class, micro course, live class and other forms of learning resources by way of online channels to further improve the training and talents development system, to secure talents for the steady and healthy operation and transformation and upgrading of the Group, thereby promoting the high-quality development of the Group.
Page 20
Fuyao Glass Industry Group Co., Ltd. 18 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (III) Liquidity and source of capital 1. Cash flows Unit: ’000 Currency: RMB Items For the Reporting Period For the same period last year Net cash g enerated from operating activities 4,550,946 5,354,476 Net cash used in investing activities –2,524,725 –2,788,956 Net cash generated from/(used in) financing activities 1,470,709 –3,043,172 Amount increased /(decreased) in cash and cash equivalents 3,496,930 –477,652 (1) During the Reporting Period, net cash generated from operating activities amounted to RMB4,551 million. In particular, cash received from sale of goods and provision of labor services amounted to RMB21,638 million; cash paid for purchase of goods and acceptance of labor services amounted to RMB11,361 million, cash paid to and paid for employees amounted to RMB4,511 million, and payment of various taxes amounted to RMB1,850 million. Daily capital needs of the Group can be financed by internal cash flows. The Group also had adequate credit facilities provided by banks. (2) During the Reporting Period, net cash used in investing activities amounted to RMB2,525 million. In particular, cash paid for purchase and construction of property, plant and equipment, and other long-term assets amounted to RMB2,298 million. (3) During the Reporting Period, net cash generated from financing activities amounted to RMB1,471 million. In particular, cash received from bank borrowings amounted to RMB11,234 million, issuance of super short-term commercial paper amounted to RMB850 million, issuance of medium-term note amounted to RMB800 million, cash used for repayment of debts amounted to RMB7,980 million; cash payment of dividend distribution and interest amounted to RMB3,294 million. The Company will further strengthen and promote the management model characterized by capital intensification and budget, strictly control the exchange rate risks and optimize the capital structure to enhance the security and effectiveness of capital management and ensure the maximization of capital efficiency.
Page 21
Interim Report 2026 19 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (III) Liquidity and source of capital (Continued) 2. Capital expenditure Capital expenditure of the Company was mainly used for continuous contribution to new projects and the subsidiaries’ transformation and upgrading expenditures. During the Reporting Period, RMB2,298 million in cash was paid for purchase and construction of property, plant and equipment, and other long-term assets. In particular, capital expenditure of Fuyao America’s automotive glass projects amounted to approximately RMB271 million, capital expenditure of the Anhui Ancillary Automotive Glass, Anhui Accessory Automotive Glass and Anhui Float projects amounted to approximately RMB643 million, and capital expenditure of the Fujian Ancillary Glass project amounted to approximately RMB309 million. 3. Borrowings During the Reporting Period, new borrowings amounted to RMB12,884 million, including bank borrowings of RMB11,234 million, super short-term commercial paper of RMB850 million and medium-term note of RMB800 million; repayment of borrowings amounted to RMB7,980 million, consisting of bank borrowings of RMB7,480 million and super short-term commercial paper of RMB500 million. The Company did not utilize any financial instrument for hedging. As of June 30, 2026, interest-bearing debts are set out as follows: Unit: 100 million Currency: RMB Type Amount Short-term borrowings with fixed interest rates 90.30 Short-term borrowings with floating interest rates 6.32 Long-term borrowings with fixed interest rates due within one year 17.72 Long-term borrowings with floating interest rates due within one year 17.09 Long-term borrowings with fixed interest rates 5.44 Long-term borrowings with floating interest rates 64.20 Super short-term commercial paper 8.50 Medium-term note 8.00 Total 217.57 Note: The information in the above table excludes accrued interest.
Page 22
Fuyao Glass Industry Group Co., Ltd. 20 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (III) Liquidity and source of capital (Continued) 4. Foreign exchange risks and foreign exchange gains or losses The principal business of the Group is situated within the PRC and is denominated in Renminbi. However, foreign exchange risks still exist for the assets and liabilities in foreign currencies and future foreign currency transactions as recognized by the Group (assets and liabilities in foreign currencies and foreign currency transactions are mainly denominated in US dollar and EUR). The finance department of the headquarters of the Group is responsible for monitoring the scale of foreign currency transactions and assets and liabilities in foreign currencies of the Group to reduce the foreign exchange risks to the largest extent. As such, the Group may avoid foreign exchange risks by ways of intensifying international development; reasonably matching the size of foreign currency assets and liabilities with the expansion of overseas operations; optimizing the currencies in settlement of operations; matching the income with expenses in the same currency; and adopting appropriate exchange instruments such as entering into forward foreign exchange contracts, currency swap, forward foreign exchange call options and other contracts. During the Reporting Period, foreign exchange losses of the Group amounted to RMB803 million, as compared with foreign exchange gains of RMB602 million for the corresponding period last year. (IV) Capital efficiency Inventory turnover period during the Reporting Period was 95 days as compared with 84 days of the corresponding period last year. In particular, inventory turnover period for automotive glass was 70 days as compared with 61 days of the corresponding period last year; inventory turnover period for float glass was 96 days as compared with 96 days of the corresponding period last year. The turnover period of the trade receivables (including notes receivable measured at fair value through other comprehensive income) during the Reporting Period was 97 days as compared with 96 days of the corresponding period last year. The Group established stringent policies for the management of notes receivable and accepts applications only from reputable banks and customers with financial strengths, while the credit risks related to bank-accepted notes are assumed by the customers’ banks. The return on equity during the Reporting Period was 10.40% as compared with 13.47% of the corresponding period last year. The decrease was mainly due to the impact of exchange gains and losses foreign exchange losses of the Group during the Reporting Period was RMB803 million, as compared with foreign exchange gains of RMB602 million for the corresponding period last year).
Page 23
Interim Report 2026 21 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (IV) Capital efficiency (Continued) Gearing ratio during the Reporting Period is set out as follows: Unit: ’000 Currency: RMB As at June 30, 2026 As at December 31, 2025 Total borrowings 22,007,053 16,964,111 Lease liabilities 432,067 524,290 Long-term payables 47,051 53,855 Less: Cash and cash equivalents –22,127,160 –19,240,786 Net debts 359,011 –1,698,530 Total equity 38,180,649 37,561,203 Total capital 38,539,660 35,862,673 Gearing ratio 0.93% –4.74% Note: Gearing ratio = net debts at the end of the period divided by total capital. Net debts were the sum of current and non-current borrowings, lease liabilities and long-term payables less cash and cash equivalents. Total capital was the sum of net debts and total equity. (V) Commitments For details, please refer to " 26. Commitments " in the Section VIII Financial Report. (VI) Contingent liabilities During the Reporting Period, the Company had no material contingent liabilities.
Page 24
Fuyao Glass Industry Group Co., Ltd. 22 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VII) Outlook of the Company for the second half of 2026 In the second half of 2026, the global economy still faces numerous uncertainties. In this regard, Fuyao will uphold the spirit of staying modest and cautious while gathering momentum to pursue new growth and be prudent in every step of its operations: 1 to coordinate multi-regional market layout and implement the dual-drive strategy covering domestic and overseas markets. The Company will continue to deepen customer value management, optimize the full-process supporting service system, and steadily improve customer satisfaction and loyalty. 2 to keep pace with the accelerating industry trend toward intelligent, integrated and functional automotive glass. The Company will break inertial thinking, strengthen research and judgment on market dynamics and cutting-edge technologies, focus on independent innovation of core technologies, and cultivate new business growth drivers enabled by new technologies. Based on core dimensions including acoustics, optics, electronics and wave technology, the Company will develop differentiated and packaged intelligent solutions, achieve comprehensive upgrading from a single component supplier to a smart cockpit system solution provider, expand product scope and enhance product value. 3 to coordinate and integrate the supply chain, systematically sort out costs across procurement, transportation, control and other links, and tap cost-reduction potential item by item in terms of raw material utilization, inventory turnover, energy consumption, logistics expenses and bulk raw material procurement. Meanwhile, the Company will carry out lean improvement on a regular basis, continuously optimize processes, raise yield rates, cut energy consumption and strictly control material wastage. Joint efforts will be made on manufacturing and cost management fronts. Centered on value-oriented transformation, the Company will comprehensively bolster cost competitiveness. 4 to continuously improve the full-coverage quality control system, integrating quality standards into the whole industrial chain including raw material procurement, production processing, finished product inspection and after-sales support. Strict control and pursuit of excellence are implemented in every working procedure to maintain the Company’s leading product quality in the industry. 5 to break down internal data silos, build an integrated digital platform and establish a full-link digital system. The Company will accelerate the intelligent upgrading of production lines, continuously expand application scenarios for AI-powered intelligent inspection and digital gauges, and continuously enhance the flexible smart manufacturing capability of production lines. 6 to establish a dual-track talent system consisting of business specialists and AI application specialists, and promote the in-depth embedding of artificial intelligence technologies into core business scenarios such as R&D design, production control, market research and customer service. Supported by intelligent empowerment, professional analysis and technological innovation, the Company will drive high-quality growth.
Page 25
Interim Report 2026 23 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VII) Outlook of the Company for the second half of 2026 (Continued) 7. to improve the full-process compliance management system and strictly uphold the bottom line of sound and compliant operation. The Company will continuously refine the internal control and supervision mechanism, keep close watch over key links of core businesses, guide all staff to abide by integrity requirements, and jointly foster an open, transparent and clean business ecosystem. (VIII) Dividend and reduction and exemption of dividend tax The interim profit distribution plan for the year of 2026 as proposed by the Company is as follows: Based on the total number of shares registered on the record date in respect of the interim equity distribution for the year of 2026, the Company proposes to distribute cash dividends to the holders of A shares and holders of H shares whose names appear on the register of members on the record date in respect of the interim equity distribution for the year of 2026, with a cash dividend of RMB1.00 (tax inclusive) per share, and the remaining undistributed profits of the Company will be carried forward to the second half of 2026. As of June 30, 2026, the total number of shares of the Company was 2,609,743,532, base d on which, the total cash dividend proposed to be distributed was RMB 2,609,743,532.00 (tax inclusive). The aforesaid amount of cash dividend proposed to be distributed accounted for 65.73% of the net profit attributable to shareholders of ordinary shares of the Company as shown on the consolidated financial statements of the period prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. The Company will not carry out bonus issue and conversion of capital reserve into share capital for the interim period of 2026. Cash dividends distributed by the Company are denominated and declared in RMB and payable in RMB to holders of A shares, and in HKD to holders of H shares. If the total number of shares of the Company changes between the date of disclosure of such profit distribution plan and the record date for the implementation of equity distribution, the Company proposes to maintain the distribution ratio per share unchanged and make adjustment to the total distribution accordingly. The details of adjustments will be published separately. The cash dividends will be paid within two months upon approval by the Board of Directors. Based on the existing working schedule of the Company, the dividends are expected to be paid on or before November 6, 2026. In the case of any change in the payment date mentioned above, the Company will make an announcement in a timely manner. The Company will announce the details regarding other specific matters on dividend distribution in due course.
Page 26
Fuyao Glass Industry Group Co., Ltd. 24 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VIII) Dividend and reduction and exemption of dividend tax (Continued) Holders of A shares In accordance with the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on Issues Concerning Differentiated Individual Income Tax Policies for Dividends and Bonus of Listed Companies (Cai Shui [2015] No. 101) (ɪ̹ʮ̡ (ৌ[2015]101 )), for shares of listed companies acquired by individuals from public offerings or transfer of shares in the market, where the holding period exceeds one year, the dividends shall be temporarily exempted from individual income tax; where the holding period is less than one month (inclusive), the full amount of dividends shall be counted as taxable income and where the holding period is more than one month and less than one year (inclusive), 50% of the dividends shall be counted as taxable income on a provisional basis. The individual income tax rate of 20% shall be applicable for all incomes mentioned above. For dividends distributed by listed companies, where the period of individual shareholding is within one year (inclusive), the listed companies shall not withhold the individual income tax temporarily. The tax payable, subject to individual transfer of shares, shall be calculated by China Securities Depository and Clearing Corporation Limited in accordance with the duration of its holding period. Custodian of shares including securities companies will withhold the amount from individual accounts and transfer the tax to China Securities Depository and Clearing Corporation Limited. China Securities Depository and Clearing Corporation Limited shall transfer the tax to the listed companies within 5 working days of the next month, and the listed companies shall declare the tax to the competent tax authorities upon receiving the tax amount within the statutory r eporting period of that month. Resident enterprise shareholders of A shares shall report and pay for the enterprise income tax of dividends by themselves. For the shareholders who are Qualified Foreign Institutional Investor (QFII), the listed companies shall withhold and pay enterprise income tax at a rate of 10% pursuant to the requirements of the Notice of the State Administration of Taxation Concerning the Relevant Questions on the Withholding and Payment of Enterprise Income Tax Relating to the Payment of Dividends, Bonus and Interest by PRC Resident Enterprises to QFII (Guo Shui Han [2009] No. 47) (͏ ΆุΣ QFII (Ռ 2009[47] )). QFII shareholders entitled to preferential tax treatment under tax treaties (arrangements) shall apply to the competent taxation authority for tax rebates according to the relevant rules and regulations after they receive the dividends, and tax rebates will be executed under tax treaties upon verification carried out by competent tax authorities.
Page 27
Interim Report 2026 25 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VIII) Dividend and reduction and exemption of dividend tax (Continued) Holders of A shares (Continued) For non-resident enterprise shareholders of A shares except the above-mentioned QFII, listed companies shall withhold and pay enterprise income tax at a rate of 10% pursuant to the requirements of the Tentative Measures for Administration of Withholding at the Source of Income Tax of Non-resident Enterprises (Guo Shui Fa [2009] No. 3) (ϔᖮ၍ଣᅲ (೯ [2009]3 )) and the Response of the State Administration of Taxation Concerning Questions on Enterprise Income Tax over Dividend of B-Shares and Other Shares Received by Non- resident Enterprises (Guo Shui Han [2009] No. 394) (͏Άุ՟ Bٰ ҭᔧ (Ռ [2009]394 )). Non-resident enterprise shareholders entitled to preferential tax treatment under tax treaties shall make registration in accordance with the relevant provisions of the tax treaties. Pursuant to the requirements of the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on the Tax Policies Related to the Pilot Program of the Shanghai-Hong Kong Stock Connect (Cai Shui [2014] No. 81) (ୃ̹ఙ (ৌ[2014]81 )), listed companies shall withhold an income tax at the rate of 10% on dividends from the A shares of the company invested by Hong Kong investors (including enterprises and individuals) through the SSE, and apply for withholding via the competent tax authorities (before the Hong Kong Securities Clearing Company Limited is able to provide details such as investor identities and holding periods to China Securities Depository and Clearing Corporation Limited, the policy of differentiated rates of taxation based on holding periods will temporarily not be implemented). For investors who are tax residents of other countries and whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of lower than 10%, those enterprises and individuals may, or may entrust a withholding agent to, apply to the competent tax authority of the listed company for the entitlement of the rate under such tax treaty. Upon approval by the competent tax authority, the paid amount in excess of the tax payable based on the tax rate according to such tax treaty will be refunded. Pursuant to the requirements of the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on the Tax Policies Related to the Pilot Program of the Shenzhen-Hong Kong Stock Connect (Cai Shui [2016] No. 127) (ୃ̹ఙ (ৌ [2016]127 )), listed companies shall withhold an income tax at the rate of 10% on dividends from the A shares of the company invested by Hong Kong investors (including enterprises and individuals) through the Shenzhen Stock Exchange, and apply for withholding via the competent tax authorities (before the Hong Kong Securities Clearing Company Limited is able to provide details such as investor identities and holding periods to China Securities Depository and Clearing Corporation Limited, the policy of differentiated rates of taxation based on holding periods will temporarily not be implemented). For investors who are tax residents of other countries and whose country of domicile is a country which has entered into a tax treaty with the PRC stipulating a dividend tax rate of lower than 10%, those enterprises and individuals may, or may entrust a withholding agent to, apply to the competent tax authority of the listed company for the entitlement of the rate under such tax treaty. Upon approval by the competent tax authority, the paid amount in excess of the tax payable based on the tax rate according to such tax treaty will be refunded.
Page 28
Fuyao Glass Industry Group Co., Ltd. 26 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VIII) Dividend and reduction and exemption of dividend tax (Continued) Holders of H shares In accordance with the requirements of the Circular on Certain Issues Concerning the Policies of Individual Income Tax (Cai Shui Zi [1994] No. 020) ( (ৌο [1994]020 )) promulgated by the Ministry of Finance and the State Administration of Taxation on May 13, 1994, overseas individuals are, as an interim measure, exempted from the PRC individual income tax for dividends or bonuses received from foreign-invested enterprises. As the Company is a foreign-invested enterprise, the Company will not withhold and pay the individual income tax on behalf of individual shareholders when the Company distributes the interim dividends for the six months ended June 30, 2026 to overseas individual shareholders whose names appear on the register of members of H shares of the Company. Pursuant to the requirements of the Notice of the State Administration of Taxation on Matters Concerning Withholding Enterprise Income Tax When China Resident Enterprises Distribute Dividends to Foreign Non-resident Enterprise Shareholders of H Shares (Guo Shui Han [2008] No. 897) (͏ΆุΣྤ̮ H (Ռ [2008]897 )), distributing dividends to foreign non-resident enterprise shareholders of H shares for 2008 and for the years onwards shall be subject to the enterprise income tax withheld at a uniform rate of 10%. Upon receipt of such dividends, an overseas non- resident enterprise shareholder may apply to the competent tax authorities for relevant treatment under the tax treaties (arrangements) in person or through a proxy or a withholding agent and provide evidence in support of its status as a beneficial owner as defined in the tax treaties (arrangements). Upon verification by the competent tax authorities, the difference between the tax levied and the amount of tax payable as calculated at the tax rate under the tax treaties (arrangements) will be refunded.
Page 29
Interim Report 2026 27 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (VIII) Dividend and reduction and exemption of dividend tax (Continued) Holders of H shares (Continued) According to the requirements of the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on the Tax Policies Concerning the Pilot Program of the Shanghai- Hong Kong Stock Connect (Cai Shui [2014] No. 81) (ୃ̹ (ৌ[2014]81 )), H-share companies shall withhold an individual income tax at the rate of 20% on dividends from the H shares of the company invested by mainland individual investors on the Hong Kong Stock Exchange through the Shanghai-Hong Kong Stock Connect. For dividends of the shares listed on the Hong Kong Stock Exchange received by mainland securities investment funds from investment through the Shanghai-Hong Kong Stock Connect, individual income tax shall be calculated in accordance with the above requirements. For dividends of the shares listed on the Hong Kong Stock Exchange received by mainland enterprise investors from investment through the Shanghai-Hong Kong Stock Connect, H-share companies shall not withhold income tax of dividends, and mainland enterprise investors shall report and pay the tax amount by themselves. In particular, the dividends received by resident enterprises in mainland which hold H shares for at least 12 consecutive months shall be exempted from enterprise income tax according to law. According to the requirements of the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on the Tax Policies Concerning the Pilot Program of the Shenzhen - Hong Kong Stock Connect (Cai Shui [2016] No. 127) (ଉ ( ৌ [2016]127 )), H-share companies shall withhold an individual income tax at the rate of 20% on dividends from the H shares of the company invested by mainland individual investors on the Hong Kong Stock Exchange through the Shenzhen-Hong Kong Stock Connect. For dividends of the shares listed on the Hong Kong Stock Exchange received by mainland securities investment funds from investment through the Shenzhen- Hong Kong Stock Connect, individual income tax shall be calculated in accordance with the above requirements. For dividends of the shares listed on the Hong Kong Stock Exchange received by mainland enterprise investors from investment through the Shenzhen-Hong Kong Stock Connect, H-share companies shall not withhold income tax of dividends, and mainland enterprise investors shall report and pay the tax amount by themselves. In particular, the dividends received by resident enterprises in mainland which hold H shares for at least 12 consecutive months shall be exempted from enterprise income tax according to law. The shareholders of the Company shall pay the relevant tax and/or are entitled to tax reliefs in accordance with the above requirements.
Page 30
Fuyao Glass Industry Group Co., Ltd. 28 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (IX) Analysis on investment 1. Overall analysis on external equity investment (1) The Company incorporated Fuyao Trim (Anhui) Intelligent Technology Co., Ltd. ( ၅ᘴུ ʮ̡ ) on January, 15 2026 with a registered capital of RMB300 million. The Company holds 100% equity interest in Fuyao Trim (Anhui) Intelligent Technology Co., Ltd., which is principally engaged in the production, sales and R&D of automotive trim parts. (2) The Company incorporated Anhui Fuyao Mould Technology Co., Ltd. ( τᏏ၅ᘴᅼ ʮ̡ ) on April 10, 2026 with a registered capital of RMB100 million. The Company holds 100% equity interest in Anhui Fuyao Mould Technology Co., Ltd., which is principally engaged in the manufacturing, sales and R&D of automotive moulds. External investment during the same period last year: On March 6, 2025, Fuyao Glass (Suzhou) Co., Ltd. (ʮ̡), a wholly-owned subsidiary of the Company, completed a capital increase of RMB28.5 million in Fuyao Technology Development (Suzhou) Co., Ltd. (ʮ̡), a wholly-owned subsidiary of the Company. Upon completion of the capital increase, the registered capital of Fuyao Technology Development (Suzhou) Co., Ltd. was RMB50 million. On April 8, 2025, Fuyao Group Automotive Decoration (Shanghai) Co., Ltd. (ʮ̡ ), a wholly-owned subsidiary of the Company, absorbed and merged Shanghai Fuyao Bus Glass Co., Ltd. (ᆨ ʮ̡ ). Upon completion of the absorption and merger, the registered capital of Fuyao Group Automotive Decoration (Shanghai) Co., Ltd. was RMB406,281,545. At the same time, Shanghai Fuyao Bus Glass Co., Ltd. was deregistered.
Page 31
Interim Report 2026 29 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (IX) Analysis on investment (Continued) 1. Overall analysis on external equity investment (Continued) (1) Material equity investments Please refer to the disclosures regarding the incorporation of Fuyao Trim (Anhui) Intelligent Technology Co., Ltd. and Anhui Fuyao Mould Technology Co., Ltd. in the above “Overall analysis on external equity investment”. (2) Financial assets at fair value Unit: Yuan Currency: RMB Classification of assets As at the beginning of the Reporting Period Gain/(loss) arising from fair value change for the period Cumulative fair value change accounted for in equity Impairment provided for during the period Purchase amount during the period Selling/ redemption amount during the period Other changes As at the end of the Reporting Period Equity instrument investment-held for trading 10,916,122 –3,389,041 –1,002,900 – – – – 7,527,081 Structured deposits – 8,195,464 8,195,464 – 1,800,000,000 1,508,189,711 – 300,005,753 Derivative financial instruments – 32,045,548 32,045,548 – – 11,416,420 – 20,629,128 Equity of unlisted companies measured at fair value through other comprehensive income 88,338,256 – – – – – – 88,338,256 Notes receivable measured at fair value through other comprehensive income 2,922,909,334 –4,478,239 – – 7,999,054,714 7,968,656,262 – 2,948,829,547 Total 3,022,163,712 32,373,732 39,238,112 – 9,799,054,714 9,488,262,393 – 3,365,329,765
Page 32
Fuyao Glass Industry Group Co., Ltd. 30 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (IX) Analysis on investment (Continued) 1. Overall analysis on external equity investment (Continued) (2) Financial assets at fair value (Continued) Securities investment Unit: Yuan Currency: RMB Type of securities Stock code Stock name Initial investment Capital source Book value at the beginning of the period Gain/(loss) arising from fair value change for the period Cumulative fair value change accounted for in equity Amount purchased during the period Amount disposed of during the period Gain/ (loss) on investments during the period Book value at the end of the period Accounting classification Share 601777 Qianli Technology 3,304,999 Debt restructuring 6,847,899 -1,591,186 1,951,714 – – – 5,256,713 Financial assets at fair value through profit or loss Share 000980 Zotye Automobile 5,224,982 Debt restructuring 4,068,223 -1,797,855 -2,954,614 – – – 2,270,368 Financial assets at fair value through profit or loss Total / / 8,529,981 / 10,916,122 -3,389,041 -1,002,900 – – – 7,527,081 – Note: "Qianli Technology" was formerly known as " Lifan Technology" .
Page 33
Interim Report 2026 31 Section III Management Discussion and Analysis IV. PRINCIPAL OPERATION RESULTS DURING THE REPORTING PERIOD (CONTINUED) (X) Analysis of major subsidiaries and investee companies Major subsidiaries and investee companies affecting 10% or more of the Company’s net profit Unit: ’0,000 Currency: RMB Name of company Company type Major business Registered capital Total assets Net assets Operating revenue Operating profit Net profit Fujian Wanda Automobile Glass Industry Co., Ltd. (ຬ༺ ʮ̡ ) Subsidiary Production and sale of automotive glass products 74,514.95 484,965.30 223,908.36 173,341.67 77,362.23 73,864.33 Fuyao Group (Shanghai) Automobile Glass Co., Ltd. (၅ ʮ ̡) Manufacturing enterprise Production and sale of automotive glass products USD 68.0488 million 748,410.82 121,985.94 333,467.78 27,978.18 24,679.17 Tianjin Hongde Auto Glass Co., Ltd. (ʮ ̡) Manufacturing enterprise Production and sale of automotive glass products 40,000 392,823.46 98,568.16 254,393.88 31,747.80 28,729.59 Suzhou Fuyao Glass Co., Ltd. (၅ ʮ̡) Manufacturing enterprise Production and sale of automotive glass products 40,000 456,993.88 104,528.86 254,041.10 43,603.48 38,513.91 Fuyao Glass America Inc. (ޚ ʮ̡ ) Subsidiary Production and sale of automotive glass products USD1,500 851,267.95 470,209.15 397,541.73 73,415.27 46,729.91 Note: Fuyao Glass America Inc. holds 100% equity interests in each of Fuyao Glass Illinois Inc. (ᆨͺл ʮ̡ ) and Fuyao Asset Management C, LLC ( C༟ପʮ̡ ). The financial figures of Fuyao Glass America Inc. as disclosed in the above table are the figures of its consolidated financial statements. Acquisition and disposal of subsidiaries during the Reporting Period Name of company Methods to acquire and dispose of subsidiaries during the Reporting Period Impact on the overall production and operation, and operating results Fuyao Trim (Anhui) Intelligent Technology Co., Ltd. (ʮ̡) Invest in incorporation Nil Anhui Fuyao Mould Technology Co., Ltd. (ʮ̡ ) Invest in incorporation Nil
Page 34
Fuyao Glass Industry Group Co., Ltd. 32 Section III Management Discussion and Analysis V. OTHER DISCLOSURES (I) Potential risks 1. Risks associated with economic, political and social conditions, government policies and wars About 50% of the Company’s revenue is derived from the operations in the PRC and another 50% from overseas operations. Therefore, the operating results, financial status and prospects of the Company are susceptible to changes in, among others, the economy, politics, policies, laws and wars. As the Chinese economy is in the stage of transformation and upgrading, the operations of the Company in the PRC might be affected. In addition, geopolitical conflicts, wars will deepen the impact on the economy and industry. In response, the Company will put more efforts in technological innovation, enhance the organization management, build a new culture of Fuyao, strengthen its position in aftersales service market, consolidate and ensure stable and healthy development in the PRC market and exploit the advantages of its global presence. 2. Risks associated with industry development The global automobile industry is in the process of transformation and upgrading. Competition in the automobile industry is stretching from the manufacturing field to the service field, and automobile consumers increasingly focus on quality rather than functionality. Intelligent, networking and digital elements will play key roles in the development of the automobile industry. If the Company fails to promptly respond to technological changes, it may fail to cater for customers’ demands. If the demand for automobiles fluctuates, the demand for products of the Company would also fluctuate, which might result in an adverse impact on the financial position and operating results of the Company. In light of the above, the Company will enrich product lines, optimize product structure and increase the added value of products, including intelligent panoramic skylight glass, dimmable glass, head-up display glass and ultra-insulating glass, as well as providing more comprehensive product solutions and services to customers worldwide. 3. Risks associated with market competition Intensified market competition may result in a decrease in the selling prices or demand for part of the Company’s products. If the competitors of the Company successfully reduce their costs of products or launch new glass products or materials which could substitute glass, the sales and profit margin of the Company may be adversely affected. In this regard, the Company adopts the strategy of differentiation to strengthen strategic and cooperative relationship with customers, further satisfy market needs at home and abroad, and boost the value and competitiveness of “ Fuyao” brand.
Page 35
Interim Report 2026 33 Section III Management Discussion and Analysis V. OTHER DISCLOSURES (CONTINUED) (I) Potential risks (Continued) 4. Risks associated with cost fluctuations The costs of automotive glass of the Company mainly comprise of raw materials of float glass, PVB raw materials, labor, electricity and manufacturing costs, while the costs of float glass mainly include quartz sand raw materials, sodium carbonate, natural gas fuel, labor, electricity and manufacturing costs. The Company is exposed to the risk of cost fluctuations due to fluctuations in international commodity prices, changes in supply and demand in the natural gas market, changes in production capacity in the soda ash industry and changes in demand for soda ash from the boom in the glass and alumina industries, and rising labor costs. Given the above, the Company will: (1) sort out key material suppliers and develop cooperative partnership with them; set up a sound mechanism for rating and incentives of suppliers, and give recognition to outstanding suppliers; set up an iron-triangle management mechanism for suppliers of key materials and import of materials, focusing on areas such as procurement, technique and quality. (2) enhance the research on the price trend of raw materials and make purchases in a timely manner; expand supply channel to ensure a stable and effective supply. (3) improve the utilization rate of materials, increase automation, optimize staff allocation, enhance efficiency, conserve energy and reduce consumption, strictly control costs throughout the process, integrate logistics, optimize packaging plans, increase transportation capacity of lorries and containers, reduce costs of packaging and logistics, enhance innovation in research and development and application of research accomplishments, increase productivity, improve management level and achieve overall efficiency. (4) strengthen customer loyalty and inspire their confidence in placing orders through setting up plants in Europe and the US for production and sale in those regions, and leverage certain of its strengths in the prices of certain materials, natural gas and electricity to avoid risks arising from cost fluctuations. (5) improve intellectual productivity and create value for the Company by devoting efforts to energy conservation in manufacturing and management, as well as product intelligence.
Page 36
Fuyao Glass Industry Group Co., Ltd. 34 Section III Management Discussion and Analysis V. OTHER DISCLOSURES (CONTINUED) (I) Potential risks (Continued) 5. Risks associated with exchange rate fluctuations China’s reform of the RMB exchange rate mechanism adheres to the principles of proactiveness, gradualism and controllability, implementing a managed floating exchange rate regime based on market supply and demand and adjusted with reference to a basket of currencies. Although the underlying cause of imbalances in international trade lies in the economic structures of individual countries, fluctuations in the global economy, instability in certain countries, growing tensions in certain key areas, and the monetary tightening or loosening measures of various countries will lead to exchange rate fluctuations. The Company’s overseas sales account for around 50% of its total sales, and this proportion is growing every year. Significant exchange rate fluctuations would affect the results of the Company. In this regard, (1) the finance department of the headquarters of the Group will strengthen the supervision on the scale of foreign currency transactions as well as foreign currency assets and liabilities of the Group, and manage the potential fluctuations in exchange rates possibly by optimizing the settlement currency of export trades and utilizing exchange rate financial instruments and other proactive preventive measures; (2) the Company will strengthen customer loyalty and inspire their confidence in placing orders through building plants in Europe and the US for production and sale in those regions while avoiding risks arising from the fluctuations in exchange rates, so as to keep the risks at a controllable level. 6. The Company might not be able to respond quickly enough to rapid technological change and evolving standards in the automotive glass industry or in industries where its customers operate The Company focuses on developing proprietary technologies and new automotive glass products. A long time may be required for the new product development process, potentially leading to mounting expenses. Substantial investment of capital and resources may be necessary before new products contribute to revenue. Investment in the development of new products by the Company may not generate sufficient earnings in the event that competitors release new products to the market more rapidly than the Company does or if alternative technologies and products are preferred by the market. If the Company is unable to predict or respond in a timely manner to changes in technologies or does not succeed in developing new products suited to customer needs, the Company’s business activities, business performance and financial condition may be adversely affected. In order to maintain the competitive edge, the Company will increase its investment in research and development, improve its independent innovation capabilities, strengthen the management of research and development projects and establish the market-oriented research and development mechanism. The Company will also directly respond to the demands of the main manufacturers through the product center to establish a strategic cooperative relationship with the customers.
Page 37
Interim Report 2026 35 Section III Management Discussion and Analysis V. OTHER DISCLOSURES (CONTINUED) (I) Potential risks (Continued) 7. Cyber security risk With the growing smart manufacturing capacity of the Company, the operation and management of core business are all backed by and realized through information systems. In case of external attack or ransomware virus against the core information network of the Company, corruption of important files and failures in manufacturing execution system and other systems may occur, or production and delivery may be affected. Therefore, the Company will, in accordance with the guidance of the overall information security scheme: (1) establish a crisis awareness, strengthen the promotion of information security awareness among all staff, and constantly guard against cyber fraud and other security risks; (2) continuously optimize the construction of the information security management system, standardize key operational procedures, and reduce the possibility of security risks; (3) continuously improve the Company’s information security strategy, and establish control measures for cyber security, host security, terminal security, data security, etc.; (4) regularly carry out information security risk assessment, perform risk identification, risk assessment, risk monitoring and risk response, and establish risk management system and processes for the Company; (5) establish and improve security operation capabilities, build multi-layered and three-dimensional defense system, and proactively detect anomalies and take intelligent measures to enhance the ability to resist and prevent cyber security risks. 8. Data security risk With the advancement of information-based construction of the Company, information and data have gradually become important bases for the Company’s business development. If the Company’s information or data is stolen or leaked, it will have an adverse impact on the Company’s core competitiveness. To safeguard the data security, the Company has implemented a series of control measures from both management and technical aspects: (1) the Company complies with laws and regulations and compliance requirements related to data security; (2) in terms of management, the Company strengthens the promotion of confidentiality awareness among all staff, standardizes data classification and grading, and strictly controls the scope of data distribution; (3) in terms of technology, the Company controls the whole life cycle of data in storage, processing, circulation and destruction through encryption and other control measures to protect the confidentiality and integrity of data; (4) the Company will continue to invest in upgrading data protection and control measures to prevent data security risks.
Page 38
Fuyao Glass Industry Group Co., Ltd. 36 Section III Management Discussion and Analysis V. OTHER DISCLOSURES (CONTINUED) (I) Potential risks (Continued) 9. Environmental and social risks As China’s policies, plans and standards in respect of environmental governance and management are becoming increasingly detailed and stringent in terms of both depth and breadth, there may be risks that indicators in some aspects or a certain aspect of the Company deviate from new policies and new standards promulgated by the government. Therefore, the Company first upholds the “ resource conserving and eco-friendly” concept and has been implementing this concept through innovations in technology, process and equipment, application of new materials and investment in environmental facilities. As a result, the industries of the Company have satisfied the top-notch standards in the world in respect of materials, process, technology, equipment, energy saving, environmental protection and functional performance; second, it carries out propagation and training courses on environmental protection, energy saving and recycling economy with a view to improving the environmental consciousness of the entire staff on a continuous basis; third, the Company exerts strict internal monitoring and assessment of the comprehensive implementation of various measures and objectives for environmental protection work. (II) Other disclosures To implement the “ Initiative on Conducting the ‘Quality Improvement, Efficiency Enhancement, and Focus on Shareholder Returns’ Special Action of Companies Listed on the Shanghai Stock Exchange (လ̹ʮ̡ “Ϋజ ”ᙄ )” of the SSE, promote continuous optimization of operations, standardized governance, and active returns to investors, and drive high-quality development through new quality productive forces, the Company, in line with its own development strategy, operational status, and financial condition, and based on confidence in its future prospects and recognition of its value, has taken measures to safeguard the interests of all shareholders, enhance investor confidence, and promote the Company’s long-term, healthy, and sustainable development. On April 26, 2024, the Company issued the Action Plan for “Quality Improvement, Efficiency Enhancement, and Focus on Shareholder Returns for 2024” (2024ܓ“ Ϋజ ”) and on April 8, 2025, the Company disclosed the Announcement on the Continuous Implementation of the “ Quality Improvement, Efficiency Enhancement, and Focus on Shareholder Returns” Action (࢝“ Ϋజ ”ʮѓ ). Since the release of the action plan, the Company has actively carried out related work, remained steadfast in industry, refined its core business, developed new quality productive forces, created high-quality products, maintained standardized operations, emphasized the quality of information disclosure, strengthened investor communication, prioritized investor returns, and enhanced corporate value. The specific assessment report on the action plan is as follows: 1. Adhering to the industry, staying rooted in the real economy, refining core businesses, and leveraging the strengths of scale and agglomeration effects: In the first half of 2026, the global economy was affected by intertwined headwinds including escalating geopolitical conflicts, trade protectionism and tariff protection, divergent domestic and overseas demand, and volatile energy supply chains, resulting in a complex, volatile operating environment marked by heightened uncertainties. The Company has consistently upheld a development strategy centered on professionalism, focus, and dedication, swiftly responding to market changes and providing customers with comprehensive solutions for automotive glass and automotive trim products. During the Reporting Period, the Company achieved revenue of RMB21,971,105 thousand on a consolidated basis, representing a year-on-year increase of 2.44%, outperforming the average industry growth rate. Total profit before tax amounted to
Page 39
Interim Report 2026 37 Section III Management Discussion and Analysis RMB4,638,131 thousand, a year-on-year decrease of 19.95%. This was mainly attributable to exchange gains and losses. The Company recorded an exchange loss of RMB802,632 thousand during the Reporting Period, compared with an exchange gain of RMB601,551 thousand in the same period last year. Excluding the impact of the aforesaid factors, total profit before tax for the Reporting Period rose by 4.78% year-on-year. 2. Developing new quality productive forces, creating high-quality products and meeting high-end market demands: During the Reporting Period, the Company closely followed industry trends and strengthened research and judgment on cutting-edge technologies and market movements. Focusing on the core automotive glass business, it allocated concentrated resources to breakthrough new product R&D and process upgrading, accelerated product iteration cycles, and steadily consolidated its leading position in the industry. During the Reporting Period, the proportion of high-value-added products, including smart and panoramic skylight glass, dimmable glass, head-up display glass and ultra- insulation glass, lightweight ultra-thin glass, coated heatable glass, and flush tempered laminated glass, continued to rise, increasing by 8.03 percentage points compared to the same period last year, demonstrating their enhanced value. 3. Prioritizing investor returns and increasing corporate value: The Company implements an active, consistent, and stable profit distribution policy, placing significant emphasis on providing reasonable investment returns to shareholders while balancing the Company’s actual operating conditions and sustainable development. The Company proposes to distribute interim profits for 2026. The Company intends to distribute cash dividends to holders of A shares and holders of H shares whose names appear on the register of members on the record date for the 2026 interim equity distribution, based on the total number of shares registered on the record date for the implementation of the 2026 interim equity distribution. The cash dividend per share will be RMB1.00 (tax inclusive). As of June 30, 2026, the total number of shares of the Company was 2,609,743,532, based on which, the total cash dividend proposed to be distributed was RMB2,609,743,532.00 (tax inclusive). The aforesaid amount of cash dividend proposed to be distributed accounted for 65.73% of the net profit attributable to shareholders of ordinary shares of the parent company in the consolidated financial statements of the period prepared by the Company in accordance with the China Accounting Standards for Business Enterprises. 4. Prioritizing the quality of information disclosure and enhancing communication with investors: Information disclosure not only impacts investor interests but also influences the Company’s reputation and integrity. To enhance the quality and management of information disclosure and protect investors’ legitimate rights, the Company continuously improves its regulatory framework. In compliance with relevant laws and regulations, the Company ensures truthful, accurate, complete, and timely information disclosure, guaranteeing equal access to corporate information for all investors and elevating transparency levels. Regarding investor communication, in the first half of 2026, the Company engaged in diversified and multi-channel investor interactions, including convening general meetings, organizing result presentation meetings, accepting on-site investor research, conducting one-on-one or one-to-many telephone conferences, participating in brokerage strategy conferences, and promptly responding to investor inquiries via hotlines/emails/the SSE e-Interaction platform. These efforts have strengthened effective communication with existing and potential investors, fostering deeper understanding and recognition of the Company while establishing a long-term engagement mechanism between the Company and its investors. V. OTHER DISCLOSURES (CONTINUED) (II) Other disclosures (Continued)
Page 40
Fuyao Glass Industry Group Co., Ltd. 38 Section IV Corporate Governance, Environment and Society I. PROPOSED PLAN FOR PROFIT DISTRIBUTION OR CONVERSION OF CAPITAL RESERVES INTO SHARE CAPITAL Proposed Half-year Plan for Profit Distribution or Conversion of Capital Reserves into Share Capital Whether making profit distribution or converting surplus reserves into share capital Yes Number of bonus shares to be distributed for every ten shares (shares) 0 Amount of dividends to be distributed for every ten shares (Yuan) (including tax) 10.00 Number of shares to be transferred into share capital for every ten shares (shares) 0 Relevant Information on the Proposed Plan for Profit Distribution or Conversion of Capital Reserves into Share Capital For details, please refer to” VIII Dividend and reduction and exemption of dividend tax” of ”Section III Management Discussion and Analysis” . II. CORPORATE GOVERNANCE (I) Corporate governance overview 1. Corporate Governance Code The Company is committed to maintaining a high level of corporate governance in order to increase the shareholders’ value and safeguard the interests of the shareholders. The Company has formulated a modernized corporate governance structure and established general meetings, the Board of Directors, special committees of the Board of Directors and senior management with reference to the Company Law, t he Guidelines on the Articles of Association of Listed Companies and the Code of Corporate Governance for Listed Companies promulgated by the CSRC, the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange issued by the SSE, the Corporate Governance Code set out in Appendix C1 to the Hong Kong Listing Rules and other provisions. During the Reporting Period, the legal entity governance structure was sound and in compliance with the requirements under the Company Law and relevant regulations of the CSRC. The Company has adopted the principles and code provisions set out in the Corporate Governance Code. During the Reporting Period, the Company has complied with all code provisions set out in the Corporate Governance Code. The Board of Directors will examine the corporate governance and operations of the Company from time to time in order to comply with the relevant requirements under the Hong Kong Listing Rules and safeguard the interests of the shareholders.
Page 41
Interim Report 2026 39 Section IV Corporate Governance, Environment and Society II. CORPORATE GOVERNANCE (CONTINUED) (I) Corporate governance overview (Continued) 2. Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code”) The Company has adopted the Model Code set out in Appendix C3 to the Hong Kong Listing Rules as the model code on trading the securities of the Company for all directors and relevant employees (as defined in the Corporate Governance Code). According to the specific enquiries made to the directors of the Company, all directors have confirmed that they had strictly complied with the standards stipulated under the Model Code during the Reporting Period. Meanwhile, to the best of the knowledge of the Company, there was no incident of non-compliance of the Model Code by the relevant employees during the Reporting Period. 3. Independent non-executive directors As at the end of the Reporting Period, the Board of Directors comprised eleven directors, four of whom are independent non-executive directors. Mr. Xue Zuyun, an independent non- executive director, possesses accounting and financial management qualifications. The composition of the Board of Directors is in line with the requirements that “ every board of directors of a listed issuer must include at least three independent non-executive directors” , “an issuer must appoint independent non-executive directors representing at least one third of the board” and “ at least one of the independent non-executive directors must have appropriate professional qualifications or accounting or related financial management expertise” as stipulated in Rules 3.10(1), 3.10A and 3.10(2) of the Hong Kong Listing Rules, respectively. (II) Special committees of the Board of Directors 1. Audit committee The Company has established an audit committee in accordance with Rules 3.21 and 3.22 of the Hong Kong Listing Rules, as well as the requirements of the CSRC and the SSE. The audit committee is responsible for conducting internal audit and supervision on the financial income and expenses and economic activities and shall report its work and be accountable to the Board of Directors. The audit committee comprises three members, all of whom are non-executive directors of the Company (including two independent non-executive directors). The chairman of the audit committee is Mr. Xue Zuyun, an independent non-executive director who possesses the professional qualifications as required under Rule 3.10(2) of the Hong Kong Listing Rules. The other members of the audit committee are Mr. Dat Dzeng Hao Daniel, an independent non-executive director, and Ms. Zhu Dezhen, a non-executive director. The terms of reference of the audit committee are available on the websites of the Company, the SSE and the Hong Kong Stock Exchange.
Page 42
Fuyao Glass Industry Group Co., Ltd. 40 Section IV Corporate Governance, Environment and Society II. CORPORATE GOVERNANCE (CONTINUED) (II) Special committees of the Board of Directors (Continued) 2. Remuneration and assessment committee The Company has established a remuneration and assessment committee in accordance with Rules 3.25 and 3.26 of the Hong Kong Listing Rules, as well as the requirements of the CSRC and the SSE. The remuneration and assessment committee is mainly responsible for the formulation, management and assessment of the remuneration system of the directors and the senior management of the Company and making recommendations to the Board of Directors on the remuneration packages of individual executive directors and senior management. The remuneration and assessment committee shall report its work and be accountable to the Board of Directors. The remuneration and assessment committee comprises three members including one executive director and two independent non- executive directors. The c hairman of the remuneration and assessment committee is Ms. Liu Xiaozhi, an independent non-executive director, and the other members of the committee are Mr. Cho Tak Wong, an executive director and the honorary chairman for life of the Board of Directors of the Company, and Mr. Xue Zuyun, an independent non-executive director. The terms of reference of the remuneration and assessment committee are available on the websites of the Company, the SSE and the Hong Kong Stock Exchange. 3. Nomination committee The Company has established a nomination committee in accordance with Rule 3.27A and Rule 3.27B of the Hong Kong Listing Rules, as well as the requirements of the CSRC and the SSE. The nomination committee is mainly responsible for providing opinions or suggestions on the changes of and recommendation of candidates for directors and senior management to the Board of Directors. The nomination committee comprises three members with independent non-executive directors being the majority. The chairman of the nomination committee is Mr. Dat Dzeng Hao Daniel, an independent non -executive director, and the other members are Ms. Liu Xiaozhi, an independent non-executive director, and Mr. Tso Fai, the chairman of the Board of Directors of the Company. The terms of reference of the nomination committee are available on the websites of the Company, the SSE and the Hong Kong Stock Exchange. 4. Strategy and development committee The Company has established a strategy and development committee in accordance with the requirements of the Code of Corporate Governance for Listed Companies. The strategy and development committee is mainly responsible for feasibility research on the Company’s long- term development and strategy plans as well as major strategic investments, and shall report its work to and be accountable to the Board of Directors. The strategy and development committee consists of three members. The chairman of the committee is Mr. Tso Fai, the chairman of the Board of Directors of the Company, and the other members are Mr. Cho Tak Wong, an executive director and the honorary chairman for life of the Board of Directors of the Company, and Mr. Dat Dzeng Hao Daniel, an independent non- executive director. The terms of reference of the strategy and development committee are available on the websites of the Company and the SSE.
Page 43
Interim Report 2026 41 Section IV Corporate Governance, Environment and Society II. CORPORATE GOVERNANCE (CONTINUED) (III) Purchase, disposal or redemption of the listed securities of the Company During the Reporting Period, neither the Company nor any of its subsidiaries purchased, disposed of or redeemed any listed securities (including any sale of treasury shares) of the Company. As at the end of the Reporting Period, the Company had no treasury shares. (IV) Review by the audit committee of the Board of Directors The audit committee under the Board of Directors has reviewed the unaudited condensed consolidated interim financial statements, the interim results announcement and the interim report of the Company for the six months ended June 30, 2026 and has discussed with the senior management of the Company on such matters as the accounting policies and practices adopted by the Company. III. ENVIRONMENTAL INFORMATION ON LISTED COMPANIES AND THEIR MAJOR SUBSIDIARIES INCLUDED IN THE LIST OF ENTERPRISES WHOSE ENVIRONMENTAL INFORMATION IS DISCLOSED IN ACCORDANCE WITH THE LAW Number of enterprises included in the list of enterprises whose environmental information has been disclosed in accordance with the law 4 No. Name of enterprises Inquiry index of reports on legal disclosure of environmental information 1 Fuyao Glass Industry Group Co., Ltd. Enterprise Environmental Information Disclosure System in accordance with the Law (Fujian Beta version): http://220.160.52.213:10053/idp-province/#/home 2 Fujian Wanda Automobile Glass Industry Co., Ltd. Enterprise Environmental Information Disclosure System in accordance with the Law (Fujian Beta version): http://220.160.52.213:10053/idp-province/#/home 3 Fuyao Glass (Suzhou) Co., Ltd. http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/ web/viewRunner.html?viewId=./sps/views/yfpl/views/ yfplHomeNew/index.js 4 Tianjin Hongde Auto Glass Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/ndpl/ index?search=%E6%B3%93%E5%BE%B7
Page 44
Fuyao Glass Industry Group Co., Ltd. 42 Section V Significant Events I. PERFORMANCE OF UNDERTAKINGS (I) Undertakings of the de facto controller of the Company, shareholders, related parties, acquirer and the Company during or subsisting to the Reporting Period Nature of the undertaking Type of the undertaking Undertaking party Details of the undertaking Time of the undertaking Whether there is a term for the undertaking Term of the undertaking Whether performed timely and strictly Other undertakings Dividend Fuyao Glass Industry Group Co., Ltd. For details, please refer to the “Dividend Distribution Plan of Fuyao Glass Industry Group Co., Ltd. for the Shareholders for the Upcoming Three Years (2024–2026)” dated March 16, 2024 published on the Shanghai Securities News, the China Securities Journal and the Securities Times, as well as the websites of the SSE (http://www.sse.com.cn) and the Hong Kong Stock Exchange (http://www.hkexnews.hk). Date of announcement of the undertaking: March 16, 2024 Yes January 1, 2024 to December 31, 2026 Yes II. MATERIAL LITIGATION AND ARBITRATION The Company was not involved in any material litigation or arbitration during the Reporting Period. III. THE CREDIT STATUS OF THE COMPANY, ITS CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLER DURING THE REPORTING PERIOD During the Reporting Period, there has been no refusal to implement effective judgments of a court or failure to meet debt repayments in a relatively large amount by the Company, its controlling shareholders and its de facto controller.
Page 45
Interim Report 2026 43 Section V Significant Events IV. SUBSTANTIAL CONNECTED TRANSACTIONS (I) Connected transactions in relation to ordinary business operations 1. Matters that have been disclosed in interim announcements and have no subsequent developments or changes in implementation Description of the matter Inquiry index The Resolution in Relation to the Lease of Properties by Fuyao Europe GmbH, a Wholly- owned Subsidiary of the Company, from Global Cosmos German Limited was considered and approved at the sixteenth meeting of the eighth session of the Board of Directors convened on October 25, 2017. Fuyao Europe GmbH, a wholly- owned subsidiary of the Company, has leased all the standard manufacturing plants with a total area of 57,809.95 square meters (including a road area of 29,518.30 square meters) from Global Cosmos German Limited for a term from January 1, 2018 to December 31, 2029. The annual rent for the first year is €2.9 million (tax inclusive) and from the second year onwards, the annual rent shall increase progressively at 2.5% for each year. For details, please refer to the Announcement of Fuyao Glass Industry Group Co., Ltd. on Connected Transaction in Relation to Leasing of Property by Its Wholly-Owned Subsidiary dated October 26, 2017 as published on the Shanghai Securities News, the China Securities Journal, the Securities Times and on the website of the SSE (http://www.sse.com.cn), and the Announcement on Continuing Connected Transaction in Relation to Leasing of Production Plant by Fuyao Europe dated October 26, 2017 as published on the website of the Hong Kong Stock Exchange (http://www.hkexnews.hk). The Resolution in Relation to the Lease of Properties from Fujian Yaohua Industrial Village Development Co., Ltd. by the Company was considered and approved at the sixth meeting of the eleventh session of the Board of Directors of the Company convened on October 17, 2024. The Company has leased the back office facilities including staff dormitory and cafeteria, training center of Districts I and II and the standard manufacturing plant of District I of Fuyao Industrial Zone located at Honglu Town, Fuqing, Fujian Province with a total area of 158,322.97 square meters from Fujian Yaohua Industrial Village Development Co., Ltd. at a monthly rent of RMB2,984,387.98, amounting to an annual rent of RMB35,812,655.81. The term of the lease is four years from January 1, 2025 to December 31, 2028. For details, please refer to the Announcement of Fuyao Glass Industry Group Co., Ltd. on Connected Transaction in Relation to Leasing of Property by the Company dated October 18, 2024 as published on the Shanghai Securities News, the China Securities Journal, the Securities Times and on the website of the SSE (http://www.sse.com.cn), and the Announcement on the Connected Transaction under the 2024 Lease Contract dated October 17, 2024 as published on the website of the Hong Kong Stock Exchange (http://www.hkexnews.hk).
Page 46
Fuyao Glass Industry Group Co., Ltd. 44 Section V Significant Events Description of the matter Inquiry index The Resolution in Relation to the Projected Daily Connected Transactions between the Company and Tri-Wall Packaging (Fuzhou) Co., Ltd. for the Year 2026 was considered and approved at the tenth meeting of the eleventh session of the Board of Directors of the Company convened on October 16, 2025. For details, please refer to the Announcement on the Daily Connected Transactions of Fuyao Glass Industry Group Co., Ltd . dated October 17, 2025 as published on the Shanghai Securities News, the China Securities Journal, the Securities Times and the website of the SSE (http://www.sse.com. cn). 2. Matters disclosed in interim announcements with subsequent developments or changes during implementation On April 27, 2023, the thirteenth meeting of the tenth session of the Board of Directors of the Company was convened to consider and approve the Resolution in Relation to the Lease of Properties from Fujian Yaohua Industrial Village Development Co., Ltd. by the Company. The Company has leased the newly-built talent apartments of 83,370.29 square meters and the parking space of 25,252.92 square meters of District II of Fuyao Industrial Zone located at Honglu Town, Fuqing, Fujian Province, with a total leased property area of 108,623.21 square meters from Fujian Yaohua Industrial Village Development Co., Ltd. The monthly unit rent is RMB20.00 per square meter (tax inclusive), the monthly rent is RMB2,172,464.20 (tax inclusive), and the annual rent is RMB26,069,570.40 (tax inclusive). The term of the lease is from October 1, 2023 to December 31, 2028. For details, please refer to the Announcement of Fuyao Glass Industry Group Co., Ltd. on Connected Transaction in Relation to Leasing of Property dated April 28, 2023 as published on the Shanghai Securities News, the China Securities Journal, the Securities Times, the Securities Daily and on the website of the SSE (http://www.sse.com.cn), and the Announcement on the Connected Transaction under the New Lease Contract dated April 28, 2023 as published on the website of the Hong Kong Stock Exchange (http://www.hkexnews.hk). IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 1. Matters that have been disclosed in interim announcements and have no subsequent developments or changes in implementation (Continued)
Page 47
Interim Report 2026 45 Section V Significant Events IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 2. Matters disclosed in interim announcements with subsequent developments or changes during implementation (Continued) On September 28, 2023, the Company entered into a supplemental lease contract with Fujian Yaohua Industrial Village Development Co., Ltd. to increase the lease of the 2/F and 3/F of the talent apartments S1# in District II of Fuyao Industrial Zone, with a lease area of 4,990.44 square meters, at a monthly unit rent of RMB20.00 per square meter (tax inclusive), and a monthly rent of RMB99,808.80 (tax inclusive). The annual rent is RMB1,197,705.60 (inclusive of tax), and the term of the lease is from October 1, 2023 to December 31, 2028. As the transaction amount of the supplemental lease contract is relatively small, the transaction is not required to be submitted to the Board of Directors of the Company for consideration according to the relevant provisions of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and the Articles of Association. On October 25, 2024, the Company entered into a supplemental lease contract (II) with Fujian Yaohua Industrial Village Development Co., Ltd. to adjust the leased area under the lease contracts entered into on April 27, 2023 and September 28, 2023, with a total reduction of 14,088.09 square meters and a total addition of 7,402.29 square meters, resulting in an adjusted leased area of 106,927.85 square meters. The transaction is not required to be submitted to the Board of Directors of the Company for consideration according to the relevant provisions of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and the Articles of Association.
Page 48
Fuyao Glass Industry Group Co., Ltd. 46 Section V Significant Events IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 2. Matters disclosed in interim announcements with subsequent developments or changes during implementation (Continued) Connected transactions in relation to ordinary business operations in the first half of 2026 are as below (disclosed in interim announcements): Unit:’0,000 Currency: RMB Connected party Connected relationship Nature of the connected transaction Content of the connected transaction Pricing principle of the connected transaction Estimated amounts in 2026 Actual amounts in the first half of 2026 Percentage of amount of the same type of transactions Settlement method of the connected transaction (%) Tri-Wall Packaging (Fuzhou) Co., Ltd. Joint venture Purchase of goods Procurement of raw and auxiliary materials Market price 17,000.00 7,673.87 100 30 days from the invoice date Tri-Wall Packaging (Fuzhou) Co., Ltd. Joint venture Sales of goods Sales of raw and auxiliary materials Market price 20.00 0 0 Tri-Wall Packaging (Fuzhou) Co., Ltd. Joint venture Water, electricity, gas and other utility expenses (sale) Sales of water and electricity Agreed price 170.00 71.29 100 30 days from the invoice date Tri-Wall Packaging (Fuzhou) Co., Ltd. Joint venture Provision of labor services to connected persons Provision of labor services Agreed price 400.00 177.79 100 30 days from the invoice date
Page 49
Interim Report 2026 47 Section V Significant Events Connected party Connected relationship Nature of the connected transaction Content of the connected transaction Pricing principle of the connected transaction Estimated amounts in 2026 Actual amounts in the first half of 2026 Percentage of amount of the same type of transactions Settlement method of the connected transaction (%) Fujian Yaohua Industrial Village Development Co., Ltd. (Note 1) Other Other outflows Leasehold property Market price 3,094.11 3,008.16 63.14 See Note 1 Global Cosmos German Limited Other Other outflows Leasehold property Market price 1,417.89 1,189.28 24.96 Payment before June 30 Total 22,102.00 12,120.39 Note: 1. The Company and Fujian Yaohua Industrial Village Development Co., Ltd. entered into the Property Lease Contract on October 17, 2024, with a leased area of 158,322.97 square meters at an annual rent of RMB35,812,655.81 (inclusive of tax), for a term of four years from January 1, 2025 to December 31, 2028, with the total rent for the next lease year payable from December of each year to January of the following year. The Company and Fujian Yaohua Industrial Village Development Co., Ltd. entered into the Property Lease Contract on April 27, 2023, with a leased area of 108,623.21 square meters and an annual rent of RMB26,069,600, for a term commencing from October 1, 2023 to December 31, 2028, and the total rent for the lease period is payable within 60 days from the date of signing the contract. On October 25, 2024, the Company entered into the Property Lease Contract – Supplementary Contract (II) with Fujian Yaohua Industrial Village Development Co., Ltd. to adjust the leased area under the lease contracts entered into on April 27, 2023 and September 28, 2023, with a total reduction of 14,088.09 square meters and a total addition of 7,402.29 square meters, and the adjusted leased area was 106,927.85 square meters, and the lease charges were also adjusted. IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 2. Matters disclosed in interim announcements with subsequent developments or changes during implementation (Continued)
Page 50
Fuyao Glass Industry Group Co., Ltd. 48 Section V Significant Events IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 3. Matters not disclosed in interim announcements Unit: ‘0,000 Currency: RMB Connected party Connected relationship Nature of the connected transaction Content of the connected transaction Pricing principle of the connected transaction Amounts of the connected transaction Percentage of amount of the same type of transactions Settlement method of the connected transaction (%) Fujian Triplex Auto Parts Development Co., Ltd. Other Other outflow Leasehold property Market price 486.11 10.20 See Note 1 Fujian Triplex Auto Parts Development Co., Ltd. Other Water, electricity, gas and other utility expenses (purchase) Purchase of water and electricity Market price 16.43 13.56 30 days from the invoice date Fujian Triplex Auto Parts Development Co., Ltd. Other Acceptance of labor services Acceptance of labor services Agreed price 5.73 4.94 30 days from the invoice date Fuyao Group Beijing Futong Safety Glass Co., Ltd. Joint venture Acceptance of labor services Product accessories installation service Costs plus reasonable profits 110.29 95.06 30 days from the invoice date Fujian Yaohua Industrial Village Development Co., Ltd. Other Other outflow Leasehold property Market price 59.89 1.26 Payment of the full rents for the lease period within 60 days from the date of signing the contract Fujian Yaohua Industrial Village Development Co., Ltd Other Water, electricity, gas and other utility expenses (purchase) Purchase of water and electricity Market price 104.41 86.19 30 days from the invoice date Fujian Fuyao University of Science and Technology Other Other outflow Commissioned development and technical services Agreed price 13.21 100 Installment payment according to progress Fujian Fuyao University of Science and Technology Other Water, electricity, gas and other utility expenses (purchase) Purchase of water and electricity Market price 0.30 0.25 Payment due 10 days prior to quarter start Fujian Fuyao University of Science and Technology Other Other outflow Leasehold property Market price 21.00 0.44 Payment due 10 days prior to expiry of current Total / 817.37 / Explanation on the connected transaction As the amounts of the transactions conducted between the Company, Fuyao Group Beijing Futong Safety Glass Co., Ltd., Fujian Triplex Auto Parts Development Co., Ltd., Fujian Yaohua Industrial Village Development Co., Ltd. and Fujian Fuyao University of Science and Technology are relatively small, such transactions are not required to be submitted to the Board of Directors of the Company for consideration according to the relevant provisions of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and the Articles of Association; these transactions constitute de minimis transactions under Rule 14A.76 of the Hong Kong Listing Rules and are fully exempted from the reporting, annual review, announcement and independent shareholders’ approval requirements under the Hong Kong Listing Rules.
Page 51
Interim Report 2026 49 Section V Significant Events IV. SUBSTANTIAL CONNECTED TRANSACTIONS (CONTINUED) (I) Connected transactions in relation to ordinary business operations (Continued) 3. Matters not disclosed in interim announcements (Continued) Notes: 1. The Group leased part of its factory buildings, the office building and dormitory located in Yinxi Street, Fuqing City, Fujian Province from Fujian Triplex Auto Parts Development Co., Ltd. controlled by Mr. Tso Fai, the chairman of the Company. The total leased area of the factory building 1 is 20,000 square meters with five-year lease term from July 1, 2021 to June 30, 2026, with a two-month rent-free period. The monthly rent excluding VAT in the first three years is RMB500,000, and the monthly rent increases by 4% from the fourth year. The property management fee (including sanitation management fee) is RMB1.50/month per square meter, and the rent of the current month shall be paid in full on the 1st day of each month; the leased area of factory building 2 is 8,000 square meters with a lease term from May 1, 2024 to June 30, 2026. The monthly rent (including tax) and the property management fee amount to RMB200,000, which shall be paid in full on the 1st day of each month; leased area revised to 2,109.10 sq.m. effective 1 February 2026; workshop 3 leased area: 541.30 square meters and lease term from 1 February 2026 to 30 June 2026. The monthly tax-inclusive rent (including the property management fee) amount to RMB13,500, which shall be paid in full on the 5th day of each month; the leased area of the office building is 638.44 square meters with the lease term from August 7, 2024 to August 6, 2027. The quarterly rent (including tax) is RMB86,200, which shall be paid within 15 working days upon receipt of the invoice; the leased area of the dormitory is approximately 20,256.60 square meters. Multiple contracts involved; earliest lease commences on 1 April 2025, latest lease expires on 14 October 2026 The monthly rent (including tax) is RMB273,700, and the rent for the next quarter shall be paid on or before the 15th day of each quarter upon receipt of the invoice. 2. The Company and Fujian Yaohua Industrial Village Development Co., Ltd. entered into the Supplemental Contract to the Property Lease Contract on September 28, 2023, with a leased area of 4,990.44 square meters and an annual rent of RMB1,197,700, for a term commencing from October 1, 2023 to December 31, 2028, and the total rent for the lease period is payable within 60 days from the date of signing the contract. On October 25, 2024, the Company entered into the Supplemental Contract (II) to the Property Lease Contract with Fujian Yaohua Industrial Village Development Co., Ltd. to adjust the leased area under the lease contracts entered into on April 27, 2023 and September 28, 2023, with a total reduction of 14,088.09 square meters and a total addition of 7,402.29 square meters, resulting in an adjusted leased area of 106,927.85 square meters, and the lease expenses were also adjusted. 3. A wholly-owned subsidiary of the Company entered into a Housing Lease Contract with Fujian Fuyao University of Science and Technology. The wholly-owned subsidiary leases the 15th and 17th floors of the apartment building therefrom, with the term from 1 January 2026 to 31 December 2026, and 1 March 2026 to 28 February 2027, respectively. The monthly rent is RMB21,000, with rent for the subsequent quarter payable 10 days prior to the expiry of the current lease period.
Page 52
Fuyao Glass Industry Group Co., Ltd. 50 Section VI Changes in Shares and Information of Shareholders I. CHANGES IN SHARE CAPITAL (I) Table of changes in shares 1. Table of changes in shares During the Reporting Period, there were no changes in the total number of shares and share capital structure of the Company. II. PARTICULARS OF SHAREHOLDERS (I) Total number of shareholders: As of June 30, 2026, the total number of shareholders of the Company was 139,665, of which, 139,621 were holders of A shares and 44 were holders of H shares. Total number of shareholders of ordinary shares as at the end of the Reporting Period 139,665 Total number of shareholders of preference shares with voting rights restored as at the end of the Reporting Period 0 (II) Particulars of shareholdings of the top ten shareholders and the top ten shareholders with tradable shares (or shareholders not subject to selling restrictions) as at the end of the Reporting Period Unit: Share Particulars of top 10 shareholders (excluding lending of shares through securities financing) Increase/ decrease during the Reporting Period Shareholding at the end of the Reporting Period Percentage Number of shares held with selling restrictions Pledged, tagged or moratorium Nature of shareholdersName of shareholder (Full name) Status of shares Number (%) HKSCC NOMINEES LIMITED (Note) 0 595,825,494 22.83 Unknown Unknown Sanyi Development Limited 0 390,578,816 14.97 Nil Overseas legal person Hong Kong Securities Clearing Company Limited 7,047,837 389,578,089 14.93 Unknown Unknown Heren Charitable Foundation 0 169,512,888 6.50 Nil Domestic non-state- owned legal person Bai Yongli 0 39,499,815 1.51 Unknown Unknown Li Haiqing 0 25,785,862 0.99 Unknown Unknown Li Fuqing 0 24,291,709 0.93 Unknown Unknown Fujian Yaohua Industrial Village Development Co., Ltd. 0 24,077,800 0.92 Nil Domestic non-state- owned legal person Agricultural Bank of China Co., Ltd. – Dacheng Gaoxin Equity Securities Investment Fund 10,171,813 23,907,790 0.92 Unknown Unknown China Life Insurance Company Limited – Traditional – General Insurance Products – 005L – CT001 (Shanghai) 4,353,633 20,942,486 0.80 Unknown Unknown
Page 53
Interim Report 2026 51 Section VI Changes in Shares and Information of Shareholders II. PARTICULARS OF SHAREHOLDERS (CONTINUED) (II) Particulars of shareholdings of the top ten shareholders and the top ten shareholders with tradable shares (or shareholders not subject to selling restrictions) as at the end of the Reporting Period (Continued) Shareholding of the top ten shareholders not subject to selling restrictions (excluding lending of shares through securities financing) Name of shareholder Number of tradable shares held without Type and number of shares selling restrictions Type Number HKSCC NOMINEES LIMITED (Note) 595,825,494 Overseas listed foreign shares 595,825,494 Sanyi Development Limited 390,578,816 Ordinary shares denominated in RMB 390,578,816 Hong Kong Securities Clearing Company Limited 389,578,089 Ordinary shares denominated in RMB 389,578,089 Heren Charitable Foundation 169,512,888 Ordinary shares denominated in RMB 169,512,888 Bai Yongli 39,499,815 Ordinary shares denominated in RMB 39,499,815 Li Haiqing 25,785,862 Ordinary shares denominated in RMB 25,785,862 Li Fuqing 24,291,709 Ordinary shares denominated in RMB 24,291,709 Fujian Yaohua Industrial Village Development Co., Ltd. 24,077,800 Ordinary shares denominated in RMB 24,077,800 Agricultural Bank of China Co., Ltd. – Dacheng Gaoxin Equity Securities Investment Fund 23,907,790 Ordinary shares denominated in RMB 23,907,790 China Life Insurance Company Limited – Traditional – General Insurance Products – 005L – CT001 (Shanghai) 20,942,486 Ordinary shares denominated in RMB 20,942,486 Explanations on the repurchase special account among top 10 shareholders Nil Explanations on proxy votes casted by or on behalf of, or abstention from voting by the above shareholders Nil Explanations on the connected relationship or parties acting in concert among the above shareholders Sanyi Development Limited and Fujian Yaohua Industrial Village Development Co., Limited are under common control. Excluding the Heren Charitable Foundation, among the other seven unrestricted shareholders, it is uncertain whether there is any connected relationship among the shareholders, and whether such shareholders are parties acting in concert which fall within the meaning under the Measures Governing Acquisitions by Listed Companies. Note: HKSCC NOMINEES LIMITED (ʮ̡). 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 H shares registered under the name of HKSCC NOMINEES LIMITED (ʮ̡), a wholly-owned subsidiary member body of the Hong Kong Stock Exchange.
Page 54
Fuyao Glass Industry Group Co., Ltd. 52 Section VI Changes in Shares and Information of Shareholders II. PARTICULARS OF SHAREHOLDERS (CONTINUED) (III) Interests and short positions of directors and chief executives in shares, underlying shares and debentures As at June 30, 2026, the interests and short positions of directors and chief executives of the Company in the shares, underlying shares or debentures of the Company or any of its associated corporations, within the meaning of Part XV of the SFO, (a) which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or (b) which were required, pursuant to Section 352 of the SFO, to be recorded in the register referred to therein; or (c) which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code set out in Appendix C3 of the Hong Kong Listing Rules, were as follows: Name Capacity/nature of interest Number of shares interested Percentage of total issued share capital of the relevant class of shares (3) Percentage of total issued share capital of the Company (3) Class of shares (%) (%) Cho Tak Wong (an executive director and the lifetime honorary chairman) (1) Beneficial owner/interest of controlled corporation 414,971,444(L) 20.72(L) 15.90(L) A share Tso Fai (an executive director and the chairman) (2) Interest of controlled corporation 12,086,605(L) 0.60(L) 0.46(L) A share Notes: (1) Mr. Cho Tak Wong directly holds 314,828 A shares (L) and indirectly holds 414,656,616 A shares (L) through Sanyi Development Limited. (2) Mr. Tso Fai indirectly holds 12,086,605 A shares (L) through Homekiu Overseas Holdings Limited. (3) The percentage is calculated based on the number of the relevant class of issued shares or the total issued shares of the Company as at June 30, 2026 . (4) (L) – long position. Save as disclosed above, as at June 30, 2026, none of directors and chief executives of the Company had interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or which were required, pursuant to Section 352 of the SFO, to be recorded in the register referred to therein; or which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code.
Page 55
Interim Report 2026 53 Section VI Changes in Shares and Information of Shareholders II. PARTICULARS OF SHAREHOLDERS (CONTINUED) (IV) Interests and short positions of substantial shareholders in shares and underlying shares As at June 30, 2026, the Company was notified of the following persons, other than directors or chief executive of the Company, who had 5% or more interests or short positions in the issued shares and underlying shares of the Company which were recorded in the register required to be kept by the Company under Section 336 of Part XV of the SFO: Name Capacity/nature of interest Number of shares interested Percentage of total issued share capital of the relevant class of shares (6) Percentage of total issued share capital of the Company (6) Class of shares (%) (%) Chan Fung Ying (1) Spouse interest/interest of controlled corporation 414,971,444(L) 20.72(L) 15.90(L) A share Sanyi Development Limited Beneficial owner/interest of controlled corporation 390,578,816(L) 19.50(L) 14.97(L) A share Heren Charitable Foundation Beneficial owner 169,512,888(L) 8.46(L) 6.50(L) A share BlackRock, Inc. (2) Interest of controlled corporation 43,527,383(L) 1,804,800(S) 7.17(L) 0.30(S) 1.67(L) 0.07(S) H share JPMorgan Chase & Co. (3) Beneficial owner/investment manager/ secured equity holders/approved lending agent 86,357,753(L) 3,130,138(S) 18,343,445(P) 14.23(L) 0.51(S) 3.02(P) 3.31(L) 0.12(S) 0.70(P) H share Citigroup Inc. (4) Interest of controlled corporation/approved lending agent 38,389,374(L) 3,147,345(S) 34,868,640(P) 6.32(L) 0.51(S) 5.74(P) 1.47(L) 0.12(S) 1.34(P) H share Mitsubishi UFJ Financial Group, Inc. (5) Interest of controlled corporation 35,259,600(L) 96,400(P) 5.81(L) 0.01(P) 1.35(L) 0.00(P) H share Notes: (1) Ms. Chan Fung Ying is Mr. Cho Tak Wong’s spouse and was therefore deemed to be interested in 414,971,444 A shares (L) held by Mr. Cho Tak Wong. (2) BlackRock, Inc. holds 43,527,383 H shares (L) and 1,804,800 H shares (S) of the Company through several controlled entities, of which 4,749,200 H shares (L) and 1,804,800 H shares (S) were related to the unlisted derivatives – cash settled. (3) JPMorgan Chase & Co. holds 86,357,753 H shares (L), 3,130,138 H shares (S) and 18,343,445 H shares (P) of the Company through several controlled entities, of which, 165,869 H shares (L) and 331,738 H shares (S) were related to the unlisted derivatives – settled in kind, and 1,170,000 H shares (L) and 1,947,200 H shares (S) were related to the unlisted derivatives – cash settled. (4) Citigroup Inc. held 38,389,374 H shares (L), 3,147,345 H shares (S) and 34,868,640 H shares (P) of the Company through several controlled entities, of which, 1,076,000 H shares (L) and 398,000 H shares (S) were related to the unlisted derivatives – cash settled. (5) Mitsubishi UFJ Financial Group, Inc. holds 35,259,600 H shares (L) and 96,400 H Shares (P) of the Company through several controlled entities. (6) The percentage is calculated based on the number of the relevant class of issued shares or the total issued shares of the Company as at June 30, 2026. (7) (L) – long position, (S) – short position, (P) – lending pool. Save as disclosed above, as at June 30, 2026, there was no person having interest or short position in the shares or underlying shares of the Company which were recorded in the register required to be kept by the Company under Section 336 of the SFO.
Page 56
Fuyao Glass Industry Group Co., Ltd. 54 Section VI Changes in Shares and Information of Shareholders III. DIRECTORS AND SENIOR MANAGEMENT (I) Changes in shareholding of current directors and senior management and those resigned during the Reporting Period Unit: Share Name Position Number of shares held at the beginning of the period Number of shares held at the end of the period Changes in shares held for the Reporting Period Reason for changes Cho Tak Wong Executive Director, Lifetime Honorary Chairman 314,828 314,828 0 Tso Fai Executive Director, Chairman of the Board of Directors – – – Ye Shu Executive Director, President – – – Chen Xiangming Executive Director, Joint Company Secretary, Chief Financial Officer – – – Zhang Haiyan Employee Director, Director of HR Management Center – – – Wu Shinong Non-executive Director – – – Zhu Dezhen Non-executive Director – – – Liu Xiaozhi Independent Non-executive Director – – – Cheng Yan Independent Non-executive Director – – – Xue Zuyun Independent Non-executive Director – – – Dat Dzeng Hao Independent Non-executive Director – – – He Shimeng Vice President 33,633 33,633 0 Chen Juli Vice President – – – Huang Xianqian Vice President – – – Lin Yong Vice President – – – Wu Lide Vice President – – – Li Xiaoxi Secretary to the Board of Directors 365,600 365,600 0 Note: Ms. Li Xiaoxi holds H shares of the Company while the others hold A shares of the Company. IV. CHANGES IN INFORMATION OF DIRECTORS Pursuant to Rule 13.51B(1) of the Listing Rules of Hong Kong, the changes to the particulars of the Directors of the Company are set out below: Mr. Wu Shinong, a non-executive Director, was appointed as an independent non-executive director of China Resources New Energy Holdings Limited (which was listed on the Shenzhen Stock Exchange on 2 July 2026, stock code: 001248) with effect from 30 June 2023. Save for the disclosures set out above, the Company is not aware of any changes in information of directors which need to be disclosed pursuant to Rule 13.51B(1) of the Hong Kong Listing Rules during the Reporting Period.
Page 57
Interim Report 2026 55 Section VII Relevant Information on Bonds I. CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND DEBT FINANCING INSTRUMENTS OF NON-FINANCIAL ENTERPRISES (I) Debt financing instruments of non-financial enterprises in the interbank bond market 1. Basic information on debt financing instruments of non-financial enterprises Unit: 100 million Currency: RMB Name of bond Abbreviation Code Date of issuance Value date Maturity date Balance of bonds Interest rate Method of repayment of principal and interest Trading venue Trading mechanism Whether there is risk of termination of trading on market (%) Fuyao Glass Industry Group Co., Ltd. First Tranche of 2026 Super Short-term Commercial Paper 26 Fuyao Glass SCP001 012680838 March 31, 2026 April 1, 2026 December 25, 2026 5.5 1.49 One-time repayment of principal and interest upon maturity Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. Second Tranche of 2026 Super Short-term Commercial Paper 26 Fuyao Glass SCP002 012680967 April 14, 2026 April 15, 2026 December 22, 2026 3 1.48 One-time repayment of principal and interest upon maturity Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. First Tranche of 2026 Medium-Term Notes 26 Fuyao Glass MTN001 102681580 April 22, 2026 April 23, 2026 April 23, 2029 3 1.77 Interest shall be paid annually, and the last installment of interest shall be paid together with the principal Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. Second Tranche of 2026 Medium-Term Notes 26 Fuyao Glass MTN002 102682019 June 3, 2026 June 5, 2026 June 5, 2029 5 1.70 Interest shall be paid annually, and the last installment of interest shall be paid together with the principal Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. Third Tranche of 2026 Science and Technology Innovation Notes 26 Fuyao Glass MTN003 Science and Technology Innovation Notes 102682436 July 3, 2026 July 6, 2026 July 6, 2029 4 1.69 Interest shall be paid annually, and the last installment of interest shall be paid together with the principal Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. Fourth Tranche of 2026 Medium-Term Notes 26 Fuyao Glass MTN004 102682683 July 21, 2026 July 22, 2026 July 22, 2029 3 1.68 Interest shall be paid annually, and the last installment of interest shall be paid together with the principal Interbank bond market Trading on market No Fuyao Glass Industry Group Co., Ltd. Third Tranche of 2026 Super Short-term Commercial Paper 26 Fuyao Glass SCP003 012682027 August 12, 2026 August 13, 2026 May 7, 2027 5 1.45 One-time repayment of principal and interest upon maturity Interbank bond market Trading on market No
Page 58
Fuyao Glass Industry Group Co., Ltd. 56 Section VII Relevant Information on Bonds I. CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND DEBT FINANCING INSTRUMENTS OF NON-FINANCIAL ENTERPRISES (CONTINUED) (II) Key accounting data and financial indicators (prepared in accordance with the China Accounting Standards for Business Enterprises) Unit: Yuan Currency: RMB Main indicators At the end of the Reporting Period At the end of last year Increase/decrease at the end of the Reporting Period as compared with the end of last year Reason for changes (%) Current ratio (1) 1.72 1.54 11.69 Quick ratio (2) 1.44 1.27 13.39 Gearing ratio (%) (3) 48.38 46.40 1.98 During the Reporting Period (January – June) Corresponding period last year Increase/ decrease of the Reporting Period as compared with the corresponding period last year Reason for changes (%) Net profit after non-recurring profit or loss 3,879,167,099 4,706,682,555 -17.58 Total debt to EBITDA ratio (4) 0.25 0.36 -30.56 Due to a decrease in profits before interest and tax during the Reporting Period. Interest coverage ratio (5) 28.89 29.74 -2.86 Cash interest coverage ratio (6) 36.36 32.48 11.95 EBITDA interest coverage ratio (7) 38.96 37.13 4.93 Loan repayment ratio (%) (8) 100.00 100.00 0 Interest repayment ratio (%) (9) 100.00 100.00 0
Page 59
Interim Report 2026 57 Section VII Relevant Information on Bonds I. CORPORATE BONDS (INCLUDING ENTERPRISE BONDS) AND DEBT FINANCING INSTRUMENTS OF NON-FINANCIAL ENTERPRISES (CONTINUED) (II) Key accounting data and financial indicators (prepared in accordance with the China Accounting Standards for Business Enterprises) (Continued) (1) Current ratio = current assets/current liabilities (2) Quick ratio = (current assets – inventories)/current liabilities (3) Gearing ratio=(total liabilities/total assets)Ò 100% (4) Total debt to EBITDA ratio = EBITDA/total debts, in particular, total debts = long-term borrowings + bonds payable + short-term borrowings + financial liabilities at fair value through profit or loss + notes payable + short-term bonds payable (other current liabilities) + non-current liabilities due within one year + lease liabilities + long-term payables (5) Interest coverage ratio = profit before interest and tax/(interest expenses recognized in finance costs + capitalized interest expenses) (6) Cash interest coverage ratio = (net cash flows from operating activities + cash interest expenses + income tax paid in cash)/cash interest expenses (7) EBITDA interest coverage ratio = EBITDA/(interest expenses recognized in finance costs + capitalized interest expenses) (8) Loan repayment ratio = actual amount of loan repayment/loan amount repayableÒ 100% (9) Interest repayment ratio = interests actually paid/interests payableÒ 100%
Page 60
58 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Balance Sheet Note As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 (Unaudited) (Audited) Non-current assets Property, plant and equipment 6 28,110,112 27,237,905 Right-of-use assets 7 499,960 575,777 Land use rights 8 1,378,364 1,396,553 Intangible assets 9 558,223 494,927 Investments in joint ventures 10 374,973 393,048 Investments in an associate 10 22,180 19,880 Financial assets at fair value through other comprehensive income 13 88,338 88,338 Deferred income tax assets 11 531,265 488,197 Long-term receivables 12 31,975 31,352 Total Non-Current Assets 31,595,390 30,725,977 Current assets Inventories 7,039,888 6,799,041 Contract assets 12 9,863,255 10,338,814 Receivables, prepayments and other current assets 26,078 Financial assets at fair value through profit or loss 13 307,533 10,916 Financial assets at fair value through other comprehensive income 13 2,948,830 2,922,909 Derivative financial instruments 13 20,629 Restricted cash 31,146 32,954 Cash and cash equivalents 22,127,160 19,240,786 Total Current Assets 42,364,519 39,345,420 Total assets 73,959,909 70,071,397 Current liabilities Account payables and other payables 19 9,108,503 10,692,397 Contract liabilities 712,703 718,192 Current tax liabilities 388,799 709,115 Borrowings 16 14,242,810 13,295,066 Lease liabilities 7 131,210 145,729 Other non-current liabilities due within one year 5,823 5,690 Total current liabilities 24,589,848 25,566,189
Page 61
59 Interim Report 2026 Section VIII Financial Report Note As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 (Unaudited) (Audited) NET CURRENT ASSETS 17,774,671 13,779,231 TOTAL ASSETS LESS CURRENT LIABILITIES 49,370,061 44,505,208 TOTAL ASSETS LESS CURRENT LIABILITIES 49,370,061 44,505,208 Non-current liabilities Borrowings 16 7,764,243 3,669,045 Lease liabilities 7 300,857 378,561 Other non-current liabilities 17 967,260 836,894 Deferred tax liabilities 11 1,188,153 1,094,688 Deferred income 18 968,899 964,817 Total non-current liabilities 11,189,412 6,944,005 Net assets 38,180,649 37,561,203 EQUITY Equity attributable to owners of the Company Share capital 14 2,609,744 2,609,744 Share premium 15 9,683,007 9,680,392 Other reserves 15 4,753,538 4,976,800 Retained earnings 21,136,964 20,298,572 38,183,253 37,565,508 Non-controlling interests (2,604) (4,305) Total equity 38,180,649 37,561,203 I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Balance Sheet (Continued)
Page 62
60 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Income Statement Accumulated in June 2026 Accumulated in June 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue 20 21,971,105 21,447,392 Cost of sales 20 (13,550,222) (13,600,077) Gross profit 8,420,883 7,847,315 Distribution costs and selling expenses (649,339) (625,336) Administrative expenses (1,721,846) (1,597,792) Research and development expenses (1,033,054) (882,847) Other income 188,167 172,499 Other (losses)/gains – net 21 (856,195) 614,716 Net impairment losses on financial assets (5,195) (641) Operating profit 22 4,343,421 5,527,914 Finance income 434,300 456,420 Finance costs (128,550) (177,181) Finance costs – net 305,750 279,239 Share of net profit of joint venture/associate (11,040) (13,120) Profit before tax 4,638,131 5,794,033 Income tax expense 23 (666,346) (986,617) Profit for the period 3,971,785 4,807,416 Profit attributable to: Owners of the Company 3,970,084 4,804,424 Non-controlling interests 1,701 2,992 Profit for the period 3,971,785 4,807,416 Earnings per share attributable to the ordinary equity holders of the Company during the period ÑB asic and diluted earnings per share (expressed in RMB per share) 24 1.52 1.84
Page 63
61 Interim Report 2026 Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Statement of Comprehensive Income Accumulated in June 2026 Accumulated in June 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) Profit for the period 3,971,785 4,807,416 Other comprehensive income: Items that may be subsequently reclassified to profit or loss Currency translation differences 15 (223,262) (150,824) Other comprehensive income for the period, net of tax (223,262) (150,824) Total comprehensive income for the period 3,748,523 4,656,592 Total comprehensive income attributable to: Owners of the Company 3,746,822 4,653,600 Non-controlling interests 1,701 2,992 Total comprehensive income for the period 3,748,523 4,656,592
Page 64
62 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Statement of Changes in Equity Attributable to owners of the Company Non- controlling interests Share capital Share premium Other reserves Retained earnings Total Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2026 2,609,744 9,680,392 4,976,800 20,298,572 37,565,508 (4,305) 37,561,203 Comprehensive income: Profit for the period – – – 3,970,084 3,970,084 1,701 3,971,785 Other comprehensive income: Currency translation differences – – (223,262) – (223,262) – (223,262) Total comprehensive income – – (223,262) 3,970,084 3,746,822 1,701 3,748,523 Total transaction with equity holders: Dividends declared for 2025 – – – (3,131,692) (3,131,692) – (3,131,692) Total transaction with equity holders, recognized directly in equity – – – (3,131,692) (3,131,692) – (3,131,692) Appropriation to statutory reserve – – – – – – – Other changes in equity 2,615 2,615 2,615 As at June 30, 2026 2,609,744 9,683,007 4,753,538 21,136,964 38,183,253 (2,604) 38,180,649
Page 65
63 Interim Report 2026 Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Statement of Changes in Equity (Continued) Attributable to owners of the Company Non- controlling interests Share capital Share premium Other reserves Retained earnings Total Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2025 2,609,744 9,680,392 4,778,234 18,635,469 35,703,839 (8,797) 35,695,042 Comprehensive income: Profit for the period – – – 4,804,424 4,804,424 2,992 4,807,416 Other comprehensive income: Currency translation differences – – (150,824) – (150,824) – (150,824) Total comprehensive income – – (150,824) 4,804,424 4,653,600 2,992 4,656,592 Total transaction with equity holders: Dividends declared for 2024 – – – (4,697,538) (4,697,538) – (4,697,538) Total transaction with equity holders, recognized directly in equity – – – (4,697,538) (4,697,538) – (4,697,538) Appropriation to statutory reserve – – – – – – – As at June 30, 2025 2,609,744 9,680,392 4,627,410 18,742,355 35,659,901 (5,805) 35,654,096
Page 66
64 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report I. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED) Condensed Consolidated Interim Cash Flow Statement Accumulated in June 2026 Accumulated in June 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) Cash flow from operating activities Cash generated from operations 5,423,987 6,056,265 Income taxes paid (873,041) (701,789) Net cash generated from operating activities 4,550,946 5,354,476 Cash flow from investing activities Proceeds from disposal of property, plant and equipment 44,096 45,757 Proceeds from disposal of intangible assets and land use rights – 338 Purchases of property, plant and equipment (2,195,841) (2,821,896) Purchase of intangible assets (101,744) (39,363) Proceeds from disposal of derivative financial instruments 11,416 – Dividends received 7,350 7,350 Decrease in restricted cash 1,808 18,858 Redemption of structured principal deposits and related interest 1,508,190 – Payments for purchase of structured deposits (1,800,000) – Net cash used in investing activities (2,524,725) (2,788,956) Cash flow from financing activities Proceeds from borrowings 12,884,382 7,291,458 Repayments of borrowings (7,980,488) (5,444,392) Dividends paid to the Company’s shareholders Interest paid (3,140,752) (4,583,140) Interest paid (153,388) (192,386) Payment of lease liabilities and long-term payables (139,045) (114,712) Net cash generated from/(used in) financing activities 1,470,709 (3,043,172) Net decrease in cash and cash equivalents 3,496,930 (477,652) Cash and cash equivalents at the beginning of the period 19,240,786 18,733,774 Exchange differences on cash and cash equivalents (610,556) 20,325 Cash and cash equivalents at the end of the period 22,127,160 18,276,447
Page 67
65 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 1. General Information Fuyao Glass Industry Group Co., Ltd. (the “ Company”) was restructured in 1991 and incorporated in Fuzhou City, Fujian Province, People’s Republic of China (the “ PRC”) in June 1992. Its headquarters is located in Fuqing City, Fujian Province. The Company’s shares have been listed on both the Shanghai Stock Exchange (“ A shares”) and the Main Board of the Hong Kong Stock Exchange (“ H shares”). As at June 30, 2026, the Company had 2,002,986,332 A shares and 606,757,200 H shares in total, among which, Mr. Cho Tak Wong ( ,) the largest shareholder, together with his spouse held 15.90% equity interests in the Company. The address of the Company’s registered office is Fuyao Industrial Zone, Rongqiao Economic & Technological Development Zone, Fuqing City, Fujian Province, the PRC. The Company and its subsidiaries (together, the “ Group”) are principally engaged in the manufacturing and sale of glass products for automobile and float glass. Unless otherwise stated, the condensed consolidated interim financial statements are presented in thousands of Renminbi. The condensed consolidated interim financial statements are unaudited, and were approved to be issued by the Board of Directors on August 18, 2026. 2. Accounting Policies 2.1 Basis of presentation The condensed consolidated interim financial statements of the Group have been prepared in accordance with IFRS Accounting Standards, which include International Accounting Standards ( “IASs”) and Interpretations as issued by the International Accounting Standards Board (“ IASB”) and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for financial assets at fair value through profit or loss and fair value through other comprehensive income, which have been measured at fair value. During the Reporting Period, save as described in 2.2 Changes in accounting policies, the accounting policies adopted by the Group are consistent with those used for and described in the annual consolidated financial statements of the Group for the year ended December 31, 2025. The Group has not early adopted any new accounting and financial reporting standards, amendments and improvements to existing standards which have been issued but are not yet effective for the financial year ended December 31, 2026.
Page 68
66 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 2. Accounting Policies (Continued) 2.2 Changes in accounting policies During the Reporting Period, the Group has adopted the following amendments to the standards: • Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments The above amendments to the standards are effective for annual periods beginning on or after January 1, 2026. The adoption of such amendments will not have a material impact on the Group. 2.3 Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings. 3. Financial Risk Management 3.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and cash flow and fair value interest rate risk), credit risk and liquidity risk. The Group’s overall risk management policy is administrated by the management and focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. The Condensed Consolidated Interim Financial Statements do not include all the information on financial risk management and disclosure required to be disclosed in the annual financial statements. There have been no changes in the risk management department or in any risk management policies since year end 2025.
Page 69
67 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 3. Financial Risk Management (Continued) 3.2 Liquidity risk The Group finance monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs. At the same time, the Group maintains sufficient cash and capital resources through the committed facilities, and maintains sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. The Group expected to fund the future cash flow needs through internally generated cash flows from operations, borrowings from financial institutions and issuing debt instruments, as necessary. The table below analyses the Group’s financial liabilities that will be settled on a net basis into relevant maturity date grouping based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Less than 1 year Between 1 and 2 years Between 2 and 5 years More than 5 years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at June 30, 2026 Borrowings, including interest payables 14,469,261 3,398,232 4,559,212 – 22,426,705 Long-term payables 8,026 8,026 24,078 16,053 56,183 Lease liabilities 132,259 132,016 155,480 54,106 473,861 Financial liabilities included in trade payables and other payables 8,163,168 – – – 8,163,168 22,772,714 3,538,274 4,738,770 70,159 31,119,917 Less than 1 year Between 1 and 2 years Between 2 and 5 years More than 5 years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at December 31, 2025 Borrowings, including interest payables 13,439,794 2,940,593 799,807 – 17,180,194 Long-term payables 8,026 8,026 24,078 24,078 64,208 Lease liabilities 149,645 131,751 208,404 81,315 571,115 Financial liabilities included in account payables and other payables 9,337,092 – – – 9,337,092 22,934,557 3,080,370 1,032,289 105,393 27,152,609
Page 70
68 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 3. Financial Risk Management (Continued) 3.3 Fair value estimation (a) The table below analyses the Group’s financial instruments carried at fair value as at June 30, 2026 and December 31, 2025 by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorised into three levels within a fair value hierarchy as follows: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); • Inputs other than quoted prices (Level 1) that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2); and • Inputs for the asset or liability that are not based on observable market data, and such asset or liability is the third level. Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 As at June 30, 2026 Assets Financial assets at fair value through profit or loss – Held-for-trading equity instrument investment (note 13) 7,527 – – 7,527 – Structured deposits (note 13) – 300,006 – 300,006 Derivative financial instruments – Forward foreign exchange contracts (note 13) – 242 – 242 – Currency swap contracts (note 13) – 20,387 – 20,387 Financial assets at fair value through other comprehensive income – Notes receivable (note 13) – – 2,948,830 2,948,830 – Unlisted equity securities (note 13) – – 88,338 88,338 7,527 320,635 3,037,168 3,365,330
Page 71
69 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 3. Financial Risk Management (Continued) 3.3 Fair value estimation (Continued) (a) The table below analyses the Group’s financial instruments carried at fair value as at June 30, 2026 and December 31, 2025 by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorised into three levels within a fair value hierarchy as follows: (Continued) Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 As at December 31, 2025 Financial assets Financial assets at fair value through profit or loss –Held-for-trading equity instrument investment (note 13) 10,916 – – 10,916 Financial assets at fair value through other comprehensive income –Notes receivable (note 13) – – 2,922,909 2,922,909 –Unlisted equity securities (note 13) – – 88,338 88,338 10,916 – 3,011,247 3,022,163
Page 72
70 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 3. Financial Risk Management (Continued) 3.3 Fair value estimation (Continued) (b) Financial instruments in level 3 Note receivable at fair value through other comprehensive income Unlisted equity securities at fair value through other comprehensive income Total RMB’000 RMB’000 RMB’000 Opening balance 2,922,909 88,338 3,011,247 Acquisitions 7,999,055 – 7,999,055 Disposals (7,968,656) – (7,968,656) Recognised in other losses – net (4,478) – (4,478) Recognised in other comprehensive income – – – Closing balance 2,948,830 88,338 3,037,168 (c) Fair value of financial assets and liabilities measured at amortised cost The fair value of the following financial assets and liabilities approximate their carrying amount: • Short-term borrowings; • Accounts and other receivables (excluding prepayments and prepaid current tax or value-added tax recoverable); • Cash and cash equivalents (including restricted cash); • Accounts and other payables (excluding staff salaries payables and other tax payables); and • Long-term accounts receivable and payables
Page 73
71 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 4. Critical Accounting Estimates and Judgements The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. (a) Estimated useful lives and residual values of property, plant and equipment The Group’s management determines the estimated useful lives and residual values of property, plant and equipment, mainly based on the historical experience of the actual useful lives of property, plant and equipment with similar nature and functions. Management will revise the depreciation charges where useful lives are different to that of previously estimated, or it will write-off or write-down technically obsolete or non-strategic assets that have been abandoned or sold. Actual economic lives may differ from estimated useful lives and actual residual values may differ from estimated residual values. Periodic review could result in a change in depreciable lives and residual values and therefore depreciation expense in future periods. (b) Net realisable value of inventories Net realisable value of inventory is the estimated selling price in the ordinary course of business, less estimated costs of completion and selling expense. These estimates are based on the current market condition and the historical experience of manufacturing and selling products of similar nature. It could change significantly as a result of technical innovations, and competitor actions in response to severe industry cycle. Management reassesses these estimates at each balance sheet date. (c) Current and deferred income tax The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the provision for income taxes in each of these jurisdictions. There are transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made. Deferred income tax assets relating to certain temporary differences and tax losses are recognised when management considers it is probable that future taxable profits will be available against which the temporary differences or tax losses can be utilised. When the expectation is different from the original estimate, such differences will impact the recognition of deferred income tax assets and current income tax charges.
Page 74
72 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 4. Critical Accounting Estimates and Judgements (Continued) (d) Impairment of financial assets The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. (e) Impairment of non-financial assets The Group’s management judgement is required on the balance sheet date in the area of asset impairment particularly in assessing long-term assets which include property, plant and equipment, right-of-use assets and intangible assets, etc. The recoverable amount is the higher of fair value less costs to sell and net present value of future cash flows which are estimated based upon the continued use of the asset in the business. The recoverable amount is estimated based on best available information in order to reflect the payment (or the disposal cost to be deducted) of fair trade between informed voluntary parties at the balance sheet date or continuous cash generated by the use of the assets. The revalued recoverable amount may be adjusted on each impairment test. The Group conducts an impairment test on goodwill every year. The recoverable amount of the asset group or combination of asset groups containing goodwill is the higher of the net amount of the fair value of the asset group or combination of asset groups minus the disposal expenses and the present value of the estimated future cash flow, and its calculation needs to adopt accounting estimates. (f) Leases – Estimating the incremental borrowing rate The Group cannot readily determine the interest rate implicit in a lease, and therefore, it uses an incremental borrowing rate (“ IBR”) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group “would have to pay” , which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when it needs to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating). 5. Segment Information The Group operates as a single operating segment. The operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segment, has been identified as the executive directors that make strategic decisions. None of the revenue derived from any single external customer amounted for more than 10% of the Group’s revenue during the Reporting Period.
Page 75
73 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 6. Plant, Equipment and Property Buildings and freehold land Machinery and equipment Electronic and office equipment Tools, moulds, vehicles and others Construction in progress Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 For the six-month period ended June 30, 2026 Opening net book amount as at January 1, 2026 5,444,950 9,502,375 3,115,340 878,463 8,296,777 27,237,905 Transfer 235,267 1,120,162 336,230 13,570 (1,705,229) – Other additions 10,105 63,245 280,303 316,138 2,051,507 2,721,298 Disposals (3,317) (11,440) (17,246) (29,751) – (61,754) Transfer to construction in progress (589) (22,276) – – 22,865 – Depreciation (199,124) (691,438) (415,294) (209,536) – (1,515,392) Currency translation difference (71,017) (95,240) (17,851) (10,901) (76,936) (271,945) Closing net book amount as at June 30, 2026 5,416,275 9,865,388 3,281,482 957,983 8,588,984 28,110,112 Buildings and freehold land Machinery and equipment Electronic and office equipment Tools, moulds, vehicles and others Construction in progress Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 For the six-month period ended June 30, 2025 Opening net book amount as at January 1, 2025 5,094,078 8,784,805 2,526,635 788,391 6,509,671 23,703,580 Transfer 477,216 1,227,196 365,048 1,766 (2,071,226) – Other additions 29,239 43,653 152,578 202,157 2,573,941 3,001,568 Disposals (5,256) (12,660) (10,296) (3,844) – (32,056) Depreciation (198,713) (627,266) (311,283) (205,305) – (1,342,567) Currency translation difference 43,267 54,616 12,053 1,209 15,025 126,170 Closing net book amount as at June 30, 2025 5,439,831 9,470,344 2,734,735 784,374 7,027,411 25,456,695
Page 76
74 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 7. Leases (1) The right-of-use assets relating to leases recognised by the Group: For the period ended June 30 2026 2025 RMB’000 RMB’000 Opening net book amount 575,777 532,127 Additions 31,547 225,729 Depreciation (91,466) (93,122) Disposal (595) (16,429) Currency translation difference (15,303) 25,525 Closing net book value 499,960 673,830 (2) The lease liabilities relating to leases recognised by the Group: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Current portion 131,210 145,729 Non-current portion 300,857 378,561 432,067 524,290 8. Land Use Rights The Group obtain relevant land use rights mainly through land use arrangement with mainland China government. For the period ended June 30 2026 2025 RMB’000 RMB’000 Opening net book amount 1,396,553 1,200,145 Currency translation difference (468) (230) Amortisation charges (17,721) (15,504) Closing net book value 1,378,364 1,184,411
Page 77
75 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 9. Intangible Assets Goodwill Patents License fee Computer software Mining rights Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 For the six-month period ended June 30, 2026 Opening net book amount as at January 1, 2026 153,708 6,469 6,615 93,087 83,866 151,182 494,927 Currency translation difference – (186) (200) (231) – – (617) Additions – – 622 16,576 2,080 82,466 101,744 Amortisation charges – (534) (1,745) (19,237) (4,567) (11,748) (37,831) Closing net book amount as at June 30, 2026 153,708 5,749 5,292 90,195 81,379 221,900 558,223 Goodwill Patents License fee Computer software Mining rights Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 For the six-month period ended June 30, 2025 Opening net book amount as at January 1, 2025 153,708 7,713 10,374 65,686 91,336 166,553 495,370 Currency translation difference – (29) (38) 264 – – 197 Additions – – – 38,523 – 840 39,363 Amortisation charges – (551) (1,803) (18,769) (4,548) (8,163) (33,834) Closing net book amount as at June 30, 2025 153,708 7,133 8,533 85,704 86,788 159,230 501,096
Page 78
76 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 10. Investments Under the Equity Method For the period ended June 30, 2026 Joint Venture Associate RMB’000 RMB’000 Opening balance 393,048 19,880 Share of results (10,725) (315) Dividends received (7,350) – Other changes in equity – 2,615 Closing balance 374,973 22,180 For the period ended June 30, 2025 Joint Venture Associate RMB’000 RMB’000 Opening balance 421,356 20,139 Share of results (12,951) (169) Dividends received (7,350) – Closing balance 401,055 19,970
Page 79
77 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 11. Deferred Income Tax Assets and Liabilities Movement in deferred income tax assets and liabilities during the Relevant Periods is as follows: Deferred income tax assets Deferred income tax liabilities RMB’000 RMB’000 As at January 1, 2026 1,166,469 1,772,960 Recognised in the consolidated income statement 974 62,168 Effect of movements in exchange rates (9,278) (20,075) As at June 30, 2026 1,158,165 1,815,053 Offsetting deferred income tax liabilities/deferred income tax assets (626,900) (626,900) Net balance after offsetting as at June 30, 2026 531,265 1,188,153 Deferred income tax assets Deferred income tax liabilities RMB’000 RMB’000 As at January 1, 2025 1,126,633 1,456,338 Recognised in the consolidated income statement 33,074 229,395 Effect of movements in exchange rates 4,007 (1,717) As at June 30, 2025 1,163,714 1,684,016 Offsetting deferred income tax liabilities/deferred income tax assets (710,179) (710,179) Net balance after offsetting as at June 30, 2025 453,535 973,837
Page 80
78 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 12. Receivables, prepayments and other current assets As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Trade receivables due from third parties (Note(a)) : Notes receivables 705,764 433,990 Trade receivables 7,763,935 8,509,309 Less: Provision for impairment (34,399) (31,923) Trade receivables – net 8,435,300 8,911,376 Other receivables due from third parties: Other receivables 220,195 194,367 Amount due from related parties (Note 27(c)) : Other receivables (Note 27(c) (i)) 1,995 1,905 Prepayments (Note 27(c) (ii)) 63 184 2,058 2,089 Others: Prepayments 433,869 343,870 Prepaid current income tax and value-added tax recoverable and refundable 803,808 918,464 1,237,677 1,262,334 Receivables, prepayments and other current assets 9,895,230 10,370,166 Less: Non-current portion of amount of other receivables (i) (31,975) (31,352) Receivables, prepayments and other current assets – net 9,863,255 10,338,814 (i) Fuyao (Hong Kong) Limited, a wholly-owned subsidiary of the Company, ceased to hold the equity of Jinken Glass Industry Shuangliao Co., Ltd. after the disposal of 25% equity interests in such associate in 2023. According to the equity transfer agreement, the first instalment of the equity transfer payment was collected in 2023 with the remaining consideration of RMB35,000,000 (present value of RMB31,975,000 as at the end of the period) will be recovered within three years.
Page 81
79 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 12. Receivables, prepayments and other current assets (Continued) (a) Receivables, including notes receivables and receivables, are arising from sales of products. The credit period granted to customers is ranging from 1 month to 4 months. No interest is charged on the overdue trade receivables. The ageing analysis of receivables based on invoice date before provision for impairment as at June 30, 2026 and December 31, 2025 was as follows: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Trade receivables – gross Within 3 months 7,846,748 8,532,125 3 to 6 months 574,594 317,096 6 to 12 months 20,409 69,368 Over 1 year 27,948 24,710 Total 8,469,699 8,943,299 13. Financial Assets at Fair Value through Profit or Loss, Financial Assets at Fair Value through Other Comprehensive Income and Derivative Financial Instruments As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Financial assets at fair value through profit or loss Current assets – Equity instrument investment – held for trading (a) 7,527 10,916 – Structured deposits (b) 300,006 – 307,533 10,916 Derivative financial instruments – Forward foreign exchange contracts (c) 242 – – Currency swap contracts (d) 20,387 – 20,629 – Financial assets at fair value through other comprehensive income Non-current assets – Unlisted equity securities (e) 88,338 88,338 Current assets – Note receivable (f) 2,948,830 2,922,909
Page 82
80 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 13. Financial Assets at Fair Value through Profit or Loss, Financial Assets at Fair Value through Other Comprehensive Income and Derivative Financial Instruments (Continued) (a) The held-for-trading equity instrument investment shares are the distribution of customer debt restructuring obtained, and the fair value of the held-for-trading equity instrument investment were determined based on the closing price of the shares on the last trading day of the year on the Shanghai Stock Exchange or Shenzhen Stock Exchange. (b) As at the end of the current period, the Group held principal-protected structured deposits with a principal amount of RMB300,000,000 linked to interest rates and the exchange rate of Euro against US Dollar. Such structured deposits will mature on September 30, 2026. (c) As at the end of the reporting period, in respect of the forward foreign exchange contracts signed between the Group and banks which have not yet matured:(1) The aggregate notional amount for HKD versus USD contracts amounted to USD3,248,000. The contracted maturity exchange rates range from 7.7816 to 7.8165, and the contracts will mature between September 21, 2026 and October 14, 2026; (2) The aggregate notional amount for JPY versus USD contracts amounted to USD1,039,000. The contracted maturity exchange rates range from 156.4050 to 157.2950, and the contracts will mature between October 16, 2026 and October 29, 2026. (d) As at the end of the reporting period, in respect of the currency swap contracts signed between the Group and banks which have not yet matured:( 1) The aggregate notional amount for HKD versus USD contracts amounted to USD201,449,000. The contracted maturity exchange rates range from 7.7797 to 7.7816, and the contracts will mature between 21 September 2026 and 14 October 2026;( 2) The aggregate notional amount for JPY versus USD contracts amounted to USD132,003,000. The contracted maturity exchange rates range from 156.4050 to 157.2950, and the contracts will mature between 16 October 2026 and 29 October 2026. (e) The unlisted equity securities is the Group’s subscription of 4.55% of the equity interests of China National Automobile (Beijing) Intelligent Connected Vehicle Research Institute Co., Ltd. The Group has no significant influence on such investee. Such equity interests are non-trading equity instruments held for strategic purposes, and are designated and accounted as “ financial assets at fair value through other comprehensive income” . (f) The Group discounted and endorsed part of bank acceptance notes and terminated their recognition according to its daily fund management needs. Therefore, for the current year, the Group classified and presented bank acceptance notes as financial assets at fair value through other comprehensive income as they are held within a business model with the objective of both collecting contractual cashflows and selling.
Page 83
81 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 14. Share Capital Ordinary shares, issued and fully paid: Number of A shares Number of H shares A shares of RMB1 each H shares of RMB1 each Total share capital Thousands Thousands RMB’000 RMB’000 RMB’000 As at January 1, 2026 and June 30, 2026 2,002,986 606,758 2,002,986 606,758 2,609,744 As at January 1, 2025 and June 30, 2025 2,002,986 606,758 2,002,986 606,758 2,609,744 15. Share Premium and Other Reserves Other reserves Share premium Statutory reserves Currency translation difference Financial assets measured at fair value through other comprehensive income Capital reserve Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2026 9,680,392 5,020,531 (78,353) 14,263 20,359 4,976,800 Currency translation difference – – (223,262) – – (223,262) Other changes in equity 2,615 – – – – – As at June 30, 2026 9,683,007 5,020,531 (301,615) 14,263 20,359 4,753,538 As at January 1, 2025 9,680,392 4,418,068 329,786 10,021 20,359 4,778,234 Currency translation difference – – (150,824) – – (150,824) As at June 30, 2025 9,680,392 4,418,068 178,962 10,021 20,359 4,627,410
Page 84
82 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 16. Borrowings (1) The balance of the borrowings is as follows: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Non-current 7,764,243 3,669,045 Current 14,242,810 13,295,066 Total borrowings 22,007,053 16,964,111 (2) Movement in borrowings is analysed as follows: For the period ended June 30 2026 2025 RMB’000 RMB’000 Opening net book amount 16,964,111 14,687,439 Additions 13,176,818 7,492,509 Deduction (8,133,876) (5,636,778) Closing net book amount 22,007,053 16,543,170
Page 85
83 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 17. Other non-current liabilities As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Contract liabilities (a) 922,557 783,696 Long-term payables (b) 41,229 48,165 Reserves (c) 3,474 5,033 Total 967,260 836,894 (a) Contract liabilities represent payments received in advance with obligations that are expected to be fulfilled after one year. (b) Details of long-term payables are as follows: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Payables for proceeds from transfer of mining rights 47,052 53,855 Less: long-term payables maturing within one year (5,823) (5,690) 41,229 48,165 According to the Interim Measures for the Administration of the Collection of Mining Right Transfer Profits, the Group’s quartz sand mine mining rights in Wenchang City, Hainan Province are required to levy transfer proceeds on annual instalments until 2034. During the Reporting Period, the Group received the payment notice and paid RMB8,026,000 in 2025 (the same period in 2025: RMB8,026,000). (c) Our subsidiary FYSAM Auto Decorative evaluated the expected sales of related products based on the contract terms agreed upon with customers, and recognized estimated liabilities for contracts that may result in economic losses due to fulfilling obligations.
Page 86
84 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 18. Deferred Income on Government Grants For the period ended June 30 2026 2025 RMB’000 RMB’000 Opening balance 964,817 819,352 Government grants received during the period (a) 69,274 51,500 Credited to the consolidated income statement (65,192) (57,030) Foreign currency statement translation – (10) Closing balance 968,899 813,812 (a) These mainly represented government grants received from certain municipal governments of the PRC as an incentive to the Group for the purchase of property, plant and equipment and land use rights. 19. Trade and Other Payables As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Notes payable to third parties 2,884,098 4,145,608 Payables to third parties 2,790,483 3,046,241 Staff salaries and welfare payables 795,009 1,183,629 Payables for purchasing of property, plant and equipment 341,141 323,814 Freight payable 372,162 347,473 Rebate payable 816,989 529,422 Amount due to related parties (Note 27(c)) 87,775 102,501 Accrued tax (excluding income tax) 150,326 171,676 Other payables and accruals 870,520 842,033 9,108,503 10,692,397
Page 87
85 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 19. Trade and Other Payables (Continued) (1) Ageing analysis of the notes payable and payables to third parties based on invoice date at the respective balances sheet dates are as follows: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Within 3 months 4,093,175 5,107,627 3 to 6 months 1,506,059 2,032,244 6 to 12 months 63,418 40,645 Over 1 year 11,929 11,333 5,674,581 7,191,849 20. Revenue and Cost of Sales For the period ended June 30 2026 2025 Income Cost Income Cost RMB’000 RMB’000 RMB’000 RMB’000 Automobile glasses 20,270,178 13,779,600 19,538,352 13,573,123 Float glasses 3,160,754 1,866,921 3,095,515 1,897,962 Other 2,463,272 1,740,587 2,583,658 1,821,238 Sub-total 25,894,204 17,387,108 25,217,525 17,292,323 Less: Intra-group sales (3,923,099) (3,836,886) (3,770,133) (3,692,246) 21,971,105 13,550,222 21,447,392 13,600,077
Page 88
86 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 21. Other (Losses)/Gains – Net For the period ended June 30 2026 2025 RMB’000 RMB’000 Foreign exchange (losses)/gains (802,632) 601,551 Gains arising from disposal of financial assets at fair value through profit or loss and derivative financial instruments 13,968 – Changes in fair value of financial assets at fair value through profit or loss and derivative financial instruments 22,884 207 Loss on disposal of note receivable at fair value through other comprehensive income (4,478) (9,157) Loss on disposal of property, plant and equipment (13,594) 3,473 Loss on disposal of intangible assets – 338 Donation (2,362) (136) Net gain on claim 59,479 17,959 Extraordinary losses (135,357) – Other 5,897 481 (856,195) 614,716 22. Operating Profit For the period ended June 30 The following items have been charged to the operating profit during the period: 2026 2025 RMB’000 RMB’000 Employee benefit expenses 4,122,229 3,886,308 Depreciation of property, plant and equipment (Note 6) 1,515,392 1,342,567 Packing expenses 340,963 315,294 Storage and distribution expenses 217,521 171,622 Depreciation of right of use assets (Note 7) 91,466 93,122 Amortisation of intangible assets (Note 9) 37,831 33,834 Amortisation of land use rights (Note 8) 17,721 15,504 Write-down inventories to net realisable value 2,481 (2,981)
Page 89
87 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 23. Income tax expenses The amounts of income tax expense charged to the consolidated income statement represent: For the period ended June 30 2026 2025 RMB’000 RMB’000 Current income tax 605,152 790,296 Deferred income tax (Note 11) 61,194 196,321 Income tax expenses 666,346 986,617 (a) PRC corporate income tax The corporate income tax (“CIT”) is calculated based on the statutory profit of subsidiaries established in the PRC and the applicable tax rate in accordance with the PRC tax laws and regulations, after adjustments on certain income and expense items, which are not assessable or deductible for income tax purposes. In accordance with the PRC tax laws, standard corporate income tax rate is 25%. Certain subsidiaries are qualified for new/high-tech technology enterprises status or Chinese western development enterprises status and enjoyed preferential income tax rate of 15% during the Reporting Period. (b) Hong Kong profits tax Applicable profit tax rates of the Group’s subsidiaries in Hong Kong are 16.5% and 25% for different subsidiaries respectively. (1) Applicable profit tax rate of Fuyao Group (Hong Kong) Limited and Yung Tak Investment Limited is 16.5% (the same period in 2025: 16.5%). (2) Fuyao (Hong Kong) Limited and Meadland Limited are resident enterprises with actual management body in Mainland China for tax purpose, and are subject to the applicable profit tax rate of 25% (the same period in 2025: 25%).
Page 90
88 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 23. Income tax expenses (Continued) (c) American profits tax Applicable profit tax rates of the Group’s subsidiaries in the United States of America range from 24.25% to 26.81% with details as follows: (1) Fuyao North America Glass Industry Co., Ltd. calculates profits tax at a rate of 26.81% on the estimated assessable profits during the Reporting Period (the same period in 2025: 26.81%); (2) Fuyao Glass America Co., Ltd., Fuyao Glass Illinois Co., Ltd., Fuyao America C Assets Co., Ltd. and Fuyao Glass South Carolina, Inc. jointly filed the federal income tax and state tax in accordance with the relevant United States tax laws, at a federal tax rate of 21%, a consolidated state tax rate of 4.36%, and the total rate of 25.36%. Income tax was paid at the applicable tax rate during the Reporting Period (the same period in 2025: 25.20%). (3) Fuyao Automotive North America, Inc. and Fuyao Asset Management A, LLC jointly filed the federal income tax and state tax in accordance with the relevant United States tax laws, at a federal tax rate of 21%, a consolidated state tax rate of 3.25%, and the total rate of 24.25%. Income tax was paid at the applicable tax rate during the Reporting Period (the same period in 2025: Income tax was paid at a rate of 24.57% based on the taxable profits after making up the losses). (d) Russia profits tax According to the Russian income tax law, the federal tax rate is 8%, with the local tax rate of 17% and the total rate of 20%. In the current period, 50% of the estimated assessable profits for the current period is used to make up the accumulated losses, and the remaining 50% is subject to profit tax at the applicable profit tax rate (2025: 50% of the taxable income was used to offset deductible losses, and income tax was paid at the applicable tax rate (the same period in 2025: same as the Reporting Period)).
Page 91
89 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 23. Income tax expenses (Continued) (e) German profits tax The profits tax rates applicable to the Group’s two subsidiaries in German are 28.43% and 28.78% respectively. Among them, Fuyao Europe GmbH, apart from the other subsidiaries, has achieved a profit, and paid profit tax at the applicable tax rate after deducting part of the deductible losses of previous years from the taxable income. No profit tax has been provided by FYSAM Auto Decorative GmbH (FYSAMʮ̡ ) due to accumulated losses during the period. The tax on the Group’s profit before tax differs from the theoretical amount that could arise from using the statutory tax rates of 9% to 39.50% applicable as follows: For the period ended June 30 2026 2025 RMB’000 RMB’000 Profit before tax 4,638,131 5,794,033 Tax calculated at the applicable income tax rate 1,229,121 1,396,124 Tax impact: Preferential income tax rate (397,966) (473,219) Expenses not deductible for tax purpose 4,667 5,224 Income not subject to income tax (1,049) (1,273) Unrecognised deductible temporary differences 11,379 – Unrecognised tax losses carried forward 52,181 84,291 Utilisation of previously unrecognised tax losses (55,926) (28,967) Utilisation of previously unrecognised deductible temporary differences (115) (4,063) Withholding taxation on unremitted earnings of certain subsidiaries (19,547) 170,103 Adjustments for current income tax of prior periods after tax annual filing 15,918 14,979 Additional tax deduction on research and development expenses (172,317) (176,582) Income tax expense 666,346 986,617
Page 92
90 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 24. Earnings per share a) Basic earnings per share is calculated by dividing the profit for the Reporting Period attributable to owners of the Company by the weighted average number of ordinary shares in issue during the relevant period. For the period ended June 30 2026 2025 RMB’000 RMB’000 Profit for the Reporting Period attributable to owners of the Company (RMB’000) 3,970,084 4,804,424 Weighted average number of ordinary shares in issue (thousand) 2,609,744 2,609,744 Basic earnings per share (RMB) 1.52 1.84 b) The diluted earnings per share are same as the basic earnings per share as there was no dilutive right shares existed during the Relevant Periods. 25. Dividends On August 18, 2026, the Board of Directors of the Company proposed the following interim profit distribution plan for 2026 Based on the total number of shares registered as of the record date for the 2026 interim equity distribution, cash dividends will be distributed to the Company’s A-share shareholders and H-share shareholders registered as of the record date for the 2026 interim equity distribution, with a cash dividend of RMB1.00 per share (tax inclusive). The remaining undistributed profits of the Company will be carried forward to the second half of 2026. If there are changes in the total number of shares outstanding prior to the record date for the rights distribution, the Company intends to maintain the same distribution ratio per share and adjust the total distribution amount accordingly. The above matters have not been recognised as liabilities in these financial statements. 26. Commitments As at June 30, 2026 and December 31, 2025, capital expenditure contracted for but not recognised in the balance sheet are set out below: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Property, plant and equipment 4,677,945 5,122,420
Page 93
91 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions The following is a summary of the significant transactions carried out between the Group and its related parties in the ordinary course of business and balances arising from related party transactions during the period ended June 30, 2026 and 2025: (a) Name of and relationship with related parties Name of related parties Relationship Mr. Cho Tak Wong (Single largest shareholder Fujian Yaohua Industrial Village Development Co., Ltd. (ʮ̡ ) Controlled by the single largest shareholder Tri-Wall Packaging (Fuzhou) Co., Ltd. (ʮ̡) An associate of the Group Global Cosmos German Co., Ltd. (ʮ̡ ) Controlled by the single largest shareholder Fuyao Group Beijing Futong Safety Glass Co., Ltd. (ʮ̡ ) An associate of the Group Fujian Triplex Auto Parts Development Co., Ltd. (ʮ̡ ) Controlled by the directors of the Company Fuyao University of Science and Technology (Ҧɽኪ ) A director of the Company serves as a trustee of the university
Page 94
92 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions (Continued) (b) The following transactions were carried out with related parties: I. Sales of goods, provision of services For the period ended June 30 2026 2025 RMB’000 RMB’000 Tri-Wall Packaging (Fuzhou) Co., Ltd. 2,491 2,721 Fujian Yaohua Industrial Village Development Co., Ltd.* – 583 2,491 3,304 II. Purchase of goods, services For the period ended June 30 2026 2025 RMB’000 RMB’000 Tri-Wall Packaging (Fuzhou) Co., Ltd. 76,739 82,907 Fuyao Group Beijing Futong Safety Glass Co., Ltd. 1,103 1,620 Fujian Yaohua Industrial Village Development Co., Ltd.* 1,044 1,303 Fujian Triplex Auto Parts Development Co., Ltd.* 222 238 Fuyao University of Science and Technology* 135 142 79,243 86,210
Page 95
93 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions (Continued) (b) The following transactions were carried out with related parties (Continued): III. Increased right-of-use assets as a lessee For the period ended June 30 2026 2025 RMB’000 RMB’000 Fujian Yaohua Industrial Village Development Co., Ltd. * – 135,070 – 135,070 IV. Interest expense on lease liabilities borne by the Group as a lessee in the current period For the period ended June 30 2026 2025 RMB’000 RMB’000 Fujian Yaohua Industrial Village Development Co., Ltd. * 1,046 1,546 Global Cosmos German Co., Ltd.* 546 707 Fujian Triplex Auto Parts Development Co., Ltd.* 52 245 1,644 2,498 V. Key management compensation For the period ended June 30 2026 2025 RMB’000 RMB’000 Salaries, wages and short-term employee benefits 36,653 28,415 Post-employment benefits 336 246 36,989 28,661 Note: (*) Also a connected person under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Hong Kong Listing Rules” ), and all related party transactions comply with the disclosure requirements set out in Chapter 14A of the Hong Kong Listing Rules.
Page 96
94 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions (Continued) (C) Balances with related parties Amount due from related parties: Balance of transactions As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Other receivables (i) 1,995 1,905 Prepayments (ii) 63 184 Total 2,058 2,089 (i) Other receivables As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Fujian Triplex Auto Parts Development Co., Ltd. 1,500 1,500 Tri-Wall Packaging (Fuzhou) Co., Ltd. 453 405 Fuyao University of Science and Technology 42 – 1,995 1,905 (ii) Prepayments: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Fuyao University of Science and Technology 63 184
Page 97
95 Interim Report 2026 Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions (Continued) (C) Balances with related parties (Continued) Amount due to related parties: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Trade payables (i) 18,861 12,460 Notes payable (ii) 34,745 54,324 Other payables (iii) 34,169 35,717 Lease liabilities (iv) 140,631 207,164 228,406 309,665 (i) Accounts payable: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Tri-Wall Packaging (Fuzhou) Co., Ltd. 18,861 12,460 Ageing analysis of trade payables due to related parties is as follows: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Within 3 months 18,861 12,460
Page 98
96 Fuyao Glass Industry Group Co., Ltd. Section VIII Financial Report II. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED) 27. Related Party Transactions (Continued) (C) Balances with related parties (Continued): Amount due to related parties (continued): (ii) Notes payable: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Tri-Wall Packaging (Fuzhou) Co., Ltd. 34,745 54,324 (iii) Other payables to related parties: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Fuyao Group Beijing Futong Safety Glass Co., Ltd. 34,156 35,714 Fujian Triplex Auto Parts Development Co., Ltd. 13 3 34,169 35,717 (iv) Lease liabilities: As at June 30, 2026 As at December 31, 2025 RMB’000 RMB’000 Global Cosmos German Co., Ltd. 71,088 99,267 Fujian Yaohua Industrial Village Development Co., Ltd. 68,550 102,833 Fujian Triplex Auto Parts Development Co., Ltd. 993 5,064 140,631 207,164