Earnings release
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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. ʮ̡ Flat Glass Group Co., Ltd. (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock code: 6865) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “Board”) of directors (the “Directors”) of Flat Glass Group Co., Ltd. (the “Company”) is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (together, the “Group”) for the six months ended 30 June 2026. This announcement containing the full text of the interim report of the Company for the six months ended 30 June 2026 (the “Interim Report”), complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) in relation to information to accompany preliminary announcement of interim results. PUBLICATION OF 2026 INTERIM REPORT ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY This announcement is also published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.flatgroup.com.cn), and the 2026 Interim Report of the Company containing all the information required by the Listing Rules will be despatched to shareholders (if requested) and published on the respective websites of the Company and the Stock Exchange in due course. By order of the Board of Flat Glass Group Co., Ltd. Ruan Hongliang Chairman Jiaxing, Zhejiang Province, The People’s Republic of China, 25 August 2026 As at the date of this announcement, the executive Directors are Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun, Mr. Wei Yezhong and Mr. Shen Qifu, and the independent non-executive Directors are Ms. Xu Pan, Ms. Du Jian and Ms. Ng Yau Kuen Carmen, and the employee Director is Ms. Niu Liping.
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ʕಂజѓ 2026 INTERIM REPORT 2026 Interim Report 2026 ʕಂజѓ
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Page(s) CORPORATE INFORMATION ........................................ 2 FINANCIAL SUMMARY ............................................ 3 MANAGEMENT DISCUSSION AND ANALYSIS ......................... 4 CORPORATE GOVERNANCE AND OTHER INFORMATION ............... 18 CONSOLIDATED BALANCE SHEET .................................. 32 BALANCE SHEET OF THE PARENT COMPANY ........................ 35 CONSOLIDATED INCOME STATEMENTS ............................. 38 INCOME STATEMENTS OF THE PARENT COMPANY ................... 40 CONSOLIDATED STATEMENTS OF CASH FLOW ....................... 41 STATEMENTS OF CASH FLOW OF THE PARENT COMPANY ............. 43 CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS’ EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 STATEMENTS OF CHANGES IN OWNERS’ EQUITY OF THE PARENT COMPANY ......................................... 47 NOTES TO THE FINANCIAL STATEMENTS ............................ 49 SUPPLEMENTARY INFORMATION ................................... 217 Contents
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2 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Corporate Information DIRECTORS Executive directors Mr. Ruan Hongliang (Chairman of the Board of Directors) Ms. Jiang Jinhua Ms. Ruan Zeyun Mr. Wei Yezhong Mr. Shen Qifu Employee director Ms. Niu Liping Independent non-executive directors Ms. Xu Pan Ms. Du Jian Ms. Ng Yau Kuen Carmen AUDIT COMMITTEE Ms. Xu Pan (Chairman) Ms. Du Jian Ms. Ng Yau Kuen Carmen REMUNERATION COMMITTEE Ms. Xu Pan (Chairman) Mr. Ruan Hongliang Ms. Du Jian NOMINATION COMMITTEE Ms. Xu Pan (Chairman) Mr. Ruan Hongliang Ms. Du Jian STRATEGIC DEVELOPMENT COMMITTEE Mr. Ruan Hongliang (Chairman) Ms. Ruan Zeyun Ms. Xu Pan RISK MANAGEMENT COMMITTEE Mr. Ruan Hongliang (Chairman) Ms. Jiang Jinhua Ms. Du Jian COMPANY SECRETARY Ms. Ruan Zeyun AUTHORISED REPRESENTATIVES Mr. Ruan Hongliang Ms. Ruan Zeyun REGISTERED OFFICE, HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN THE PRC 1999 Yunhe Road Xiuzhou District Jiaxing Zhejiang Province People’s Republic of China (the “PRC”) PRINCIPAL PLACE OF BUSINESS IN HONG KONG Unit 7, 21/F. Yen Sheng Centre 64 Hoi Yuen Road Kwun Tong Kowloon Hong Kong CORPORATE WEBSITE www.flatgroup.com.cn LEGAL ADVISERS AS TO HONG KONG LAW Morgan, Lewis & Bockius AUDITORS Deloitte Touche Tohmatsu Certified Public Accountants LLP PRINCIPAL BANKERS Bank of China Limited China CITIC Bank Corporation Limited Industrial and Commercial Bank of China Limited DBS Bank Limited H SHARE REGISTRAR Tricor Investor Services Limited 17/F, Far East Finance Centre 16 Harcourt Road Hong Kong
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3 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Financial Summary Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Operating revenue 6,668,210.12 7,737,028.14 Operating costs 6,123,036.57 6,649,921.15 Gross profit 545,173.55 1,087,106.99 Total profit -427,726.88 275,338.34 Income tax expense -64,955.76 9,380.96 Net profit -362,771.12 265,957.38 As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Non-current assets 29,624,054.49 30,107,666.06 Current assets 11,910,357.28 12,276,748.19 Current liabilities 9,120,794.60 7,841,262.99 Net current (liabilities) assets 2,789,562.68 4,435,485.20 Total assets less current liabilities 32,413,617.17 34,543,151.26 Net assets 21,763,561.06 22,611,524.25 Share capital 585,720.13 585,720.06 Undistributed profit 10,082,430.95 10,794,884.37 Total equity 21,763,561.06 22,611,524.25
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4 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Management Discussion and Analysis Flat Glass Group Co., Ltd. (the “Company”) and its subsidiaries (together with the Company, the “Group”) are principally engaged in the manufacturing and sales of various glass products, including PV glass, float glass, architectural glass and household glass. The production facilities of the Group are strategically located in Jiaxing, Zhejiang Province, Fengyang County, Chuzhou, Anhui Province, Nantong, Jiangsu Province in the PRC and Haiphong, Vietnam. The Group mainly sells glass products to customers in areas including China, Korea, India, Turkey, the United States and Southeast Asia. SHARE SCHEMES OF THE COMPANY 2020 Restricted A Share Incentive Scheme On 29 June 2020, the shareholders of the Company approved a restricted A share incentive scheme (the “2020 Incentive Scheme”). The principal terms of the 2020 Incentive Scheme are as follows: a. The purpose of the 2020 Incentive Scheme For the purpose of further improving the corporate governance structure, establishing and improving the Company’s long-term incentive and restraint mechanism, attracting and retaining senior and middle management and key technical staff, fully mobilizing their enthusiasm, effectively enhancing the cohesion of core team and core competitiveness of the enterprise, bonding the interests of shareholders, the Company and core teams together effectively, enabling all parties to jointly pay attention to the long-term development of the Company and securing the successful achievement of the Company’s long-term development goals and business objectives, and under the premise of fully safeguarding the interests of the shareholders, the 2020 Incentive Scheme is prepared following the principle of reciprocity between revenue and contribution in accordance with the relevant laws, regulations and normative documents including the Company Law of the PRC, the Securities Law of the PRC and the Assessment Management Measures for the Implementation of the Restricted A Share Incentive Scheme for 2020 of the Company, the Rules Governing the Listing of Securities (the “Listing Rules”) on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), as well as the Articles of Association.
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5 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. b. The participants of the 2020 Incentive Scheme The participants of the 2020 Incentive Scheme include the senior and middle management and key technical staff of the Company (including its subsidiaries). c. The total number of Shares available for issue 6,000,000 restricted A Shares are proposed to be granted under the 2020 Incentive Scheme, representing 0.31% of the Company’s total share capital of 1,950,000,000 Shares as at 29 June 2020, including 5,000,000 A Shares under the first grant, representing 0.26% of the Company’s total share capital as at 29 June 2020 and 83.33% of the total restricted shares to be granted under the 2020 Incentive Scheme; and 1,000,000 reserved A Shares, representing 0.05% of the Company’s total share capital as at 29 June 2020 and 16.67% of the total restricted shares to be granted under the 2020 Incentive Scheme. There are no shares available for issue under the 2020 Incentive Scheme as at the date of the 2026 interim results announcement. d. The maximum entitlement of each participant The total number of A Shares to be granted to any participant under all the fully effective share incentive schemes of the Company shall not exceed 1.00% of the total share capital of the Company. e. The remaining life of the 2020 Incentive Scheme The validity period of the 2020 Incentive Scheme shall commence on the grant date and end on the date when all the restricted shares are unlocked or otherwise repurchased and cancelled, which shall not be longer than 72 months. As at 30 June 2026, the remaining life of the first granted shares of the 2020 Incentive Scheme and the reserved granted shares of the 2020 Incentive Scheme shall be 2 months and 11 months, respectively.
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6 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Details of the restricted shares granted under the 2020 Incentive Scheme during the six months ended 30 June 2026 are set out below: Number of Restricted Shares Category of participants Date of grant Lock-up period Grant price (RMB) As at 1 January 2026 Granted during the period Attributed during the period Cancelled during the period Lapsed during the period As at 30 June 2026 14 Employees 11 August 2020 Note 1 6.23 (Note 3) 0 Nil Nil Nil Nil 0 3 Employees 25 May 2021 Note 2 14.23 (Note 4) 140,000 Nil Nil Nil Nil 140,000 Total 140,000 Nil Nil Nil Nil 140,000 Notes: 1. The unlocking arrangement for the restricted shares under the first grant of the 2020 Incentive Scheme is shown in the table below: Unlocking arrangement Unlocking Period Unlocking proportion First Unlocking Period Commencing from the first trading day upon the expiry of 12 months from the grant date of the first grant of the restricted shares to the last trading day upon the expiry of 24 months from the grant date of the first grant of the restricted shares 20% Second Unlocking Period Commencing from the first trading day upon the expiry of 24 months from the grant date of the first grant of the restricted shares to the last trading day upon the expiry of 36 months from the grant date of the first grant of the restricted shares 20% Third Unlocking Period Commencing from the first trading day upon the expiry of 36 months from the grant date of the first grant of the restricted shares to the last trading day upon the expiry of 48 months from the grant date of the first grant of the restricted shares 20% Fourth Unlocking Period Commencing from the first trading day upon the expiry of 48 months from the grant date of the first grant of the restricted shares to the last trading day upon the expiry of 60 months from the grant date of the first grant of the restricted shares 20% Fifth Unlocking Period Commencing from the first trading day upon the expiry of 60 months from the grant date of the first grant of the restricted shares to the last trading day upon the expiry of 72 months from the grant date of the first grant of the restricted shares 20%
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7 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 2. The unlocking arrangement for the reserved restricted shares is shown in the table below: Unlocking arrangement Unlocking Period Unlocking proportion First Unlocking Period Commencing from the first trading day upon the expiry of 12 months from the grant date of the reserved restricted shares to the last trading day upon the expiry of 24 months from the grant date of the reserved restricted shares 20% Second Unlocking Period Commencing from the first trading day upon the expiry of 24 months from the grant date of the reserved restricted shares to the last trading day upon the expiry of 36 months from the grant date of the reserved restricted shares 20% Third Unlocking Period Commencing from the first trading day upon the expiry of 36 months from the grant date of the reserved restricted shares to the last trading day upon the expiry of 48 months from the grant date of the reserved restricted shares 20% Fourth Unlocking Period Commencing from the first trading day upon the expiry of 48 months from the grant date of the reserved restricted shares to the last trading day upon the expiry of 60 months from the grant date of the reserved restricted shares 20% Fifth Unlocking Period Commencing from the first trading day upon the expiry of 60 months from the grant date of the reserved restricted shares to the last trading day upon the expiry of 72 months from the grant date of the reserved restricted shares 20% 3. With reference to the relevant requirements under the Management Measures for Share Incentive Scheme Adopted by Listed Companies issued by the CSRC, the grant price of the restricted shares under the first grant shall not be lower than the par value of the Shares, and shall be the higher of the following: (1) 50% of the average trading price of the Shares of the Company for the last trading day immediately preceding the date of the 2020 Incentive Scheme draft, being RMB6.23 per share; (2) 50% of the average trading price of the Shares of the Company for the last 20 trading days immediately preceding the date of the 2020 Incentive Scheme draft, being RMB5.75 per share.
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8 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 4. Before each grant of the reserved restricted shares, the Company shall hold a meeting of the board of directors (the “Board”) to pass the relevant resolution, and shall disclose an announcement on such grant. With reference to the relevant requirements under the Management Measures for Share Incentive Scheme Adopted by Listed Companies (جissued by the CSRC, the grant price of the reserved restricted shares shall not be lower than the par value of the Shares, and shall be the higher of the following: (1) 50% of the average trading price of the Shares of the Company for the last trading day immediately preceding the date of Board meeting relating to the grant of the reserved restricted shares; (2) 50% of the average trading price of the Shares of the Company for the last 20 trading days immediately preceding the date of Board meeting relating to the grant of the reserved restricted shares. On 25 May 2021, the Company hold the second meeting of the sixth Board to consider and approve the proposal on the Reserved Grant of the Restricted A Shares to Participants, pursuant to which, the Company agreed to grant 700,000 restricted A shares to three participants, at the grant price of RMB14.23 per share on the grant date of 25 May 2021. The number of restricted shares available for grant under the 2020 Incentive Scheme at 1 January 2026 and 30 June 2026 is nil and nil, respectively. There is no service provider sublimit under the 2020 Incentive Scheme. The Remuneration Committee is responsible for drafting and revising the 2020 Incentive Scheme and submitting the same to the Board for consideration. As at 30 June 2026, the number of shares that may be issued in respect of awards granted under 2020 Incentive Scheme divided by the weighted average number of shares in issue (excluding treasury Shares) for the year is nil.
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9 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. BUSINESS OVERVIEW The Global PV Market Entered a Period of Demand Adjustment In the first half of 2026, the global PV market entered a completely different stage of development after several years of exceptionally rapid growth. Previously, the market had presented prosperity fueled by rapid technological innovation, significant cost reduction, and the continuous expansion of application areas in residential, commercial, and large projects. However, in the first half of 2026, the market experienced a demand adjustment driven by manufacturing oversupply, grid power rationing, and policy shifts. Hence, the global PV demand is projected to face its first negative growth in over a decade. In the first half of 2026, China's PV industry was undergoing a profound adjustment. From the application side, China's new PV installations in the first half of the year reached approximately 72.07 GW, representing a significant year-on-year decrease of approximately 66% compared with the 212 GW in the same period of 2025. However, this data must be reviewed against a high base effect as PV installations spiked abnormally in the same period of 2025. In fact, the installed capacity in the first half of 2026 remained above the average recorded in the first halves of 2021 to 2024. The monthly installed capacity was at the median level of the past five years, with relatively moderate fluctuations. The fact indicates that the industry is shifting from pulse growth to steady growth. However, at the same time, the 15th Five-Year Plan for Renewable Energy Development established a clear target that wind and solar installed capacity will reach more than 2,800 GW by 2030, representing an average annual addition of at least 192 GW from the current 1,840 GW. The Plan provides solid support for the industry's medium-and long-term development. Improving Supply and Demand Dynamics of PV Glass During the first half of 2026, the PV glass industry faced continuous price squeeze due to downstream demand adjustment and overcapacity. The PV glass prices also dropped near to their cash cost levels due to overcapacity and intensified competition in the industry, with limited room for further decline. Therefore, the industry faces general losses and heavy operating pressure at current market prices.
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10 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 In the face of persistently low market prices, the industry has seen a significant increase in the number of cold repair production lines with the accelerating capacity withdrawal. The supply side of the industry has contracted significantly as some high-cost and technologically backward kilns have successively entered a state of cold repair or permanent production halt. The current phase is at a critical window period for capacity clearance. The exit of inefficient capacity has laid the foundation for the improvement of the industry's supply and demand dynamics. The supply and demand dynamics of the PV glass industry are improving toward a positive direction, with the increase in cold repair production lines and the slowdown in the pace of new capacity release. The current supply and demand imbalance is expected to ease as the contraction on the supply side continues, coupled with the moderate recovery of demand in the second half of the year. Leveraging their scale advantages, technological accumulation, and cost control capabilities, leading enterprises have demonstrated strong operational resilience in this round of cyclical adjustment. Hence, the market share concentration is expected to be on the rise toward the leading companies. In the first half of 2026, the Group faced significant profit pressure due to persistently low PV glass prices. At present, most enterprises in the industry are still under pressure in their operations due to constant notably overcapacity and low product prices for a long time. The Group strives to alleviate the profit pressure brought about by the decline in prices through continuously promoting cost reduction and efficiency improvement, optimizing production processes, and strengthening refined management. Meanwhile, the Group strictly controls capital expenditure to ensure the safety of cash flow, aiming to cope with the challenges at the bottom of the industry cycle FUTURE PROSPECT Despite short-term cyclical adjustments and pains facing the industry, the general trend of global energy transition remains unchanged over the medium and long term. As PV is the most economically clean energy, its long-term growth logic remains stable. Given the industry is shifting from scale-driven to quality-driven, the strong will survive after eliminating the backward production capacity and those with speculative mentality. After the industry reshuffle, enterprises with genuine core technologies and sharp strategic focus will occupy a more favorable competitive position. As inefficient production capacity continues to be phased out, the supply and demand relationship will gradually improve, and prices will adjust accordingly. The overall profitability of the industry is expected to recover.
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11 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. As a leading enterprise in the global PV glass industry, the Group will insist on technological innovation as the core driving force. Meanwhile, the Group will continue to promote quality improvement and efficiency enhancement, optimize the production capacity structure, operate steadily, and strive to capture structural opportunities during an industry cycle bottom. The Group firmly believes that the PV glass industry will usher in a new round of healthy development cycle, with the continuous growth of global demand for new energy and the optimization of the industry landscape. Moreover, the Group will create long-term value for shareholders. FINANCIAL REVIEW For the six months ended 30 June 2026, the Company faced severe challenges in operations amid weak demand for PV terminals across the globe, an intensifying imbalance between supply and demand in the market, a continuous decrease in product prices, and increasing industry competition. For the six months ended 30 June 2026, the operating revenue of the Group amounted to approximately RMB6,668.2 million, representing a decrease of 13.81% compared with RMB7,737.0 million for the same period in 2025. The sluggish global demand for PV and the abundant capacity on the supply side have led to a significant year-on-year drop in the selling price of PV glass products. External geopolitical conflicts have also caused certain disturbances to energy costs and the business environment. To cope with the above challenges, the Group, on the one hand, has seized the window of opportunity when raw material prices dropped, and on the other hand, has deeply advanced internal quality improvement and efficiency enhancement. The relevant measures partially alleviated the adverse effects, but overall, the pressure brought by the drop in product prices has not yet been completely resolved. For the six months ended 30 June 2026, the net profit of the Group amounted to RMB-362.8 million, compared with RMB 266.0 million for the same period in 2025, with a change ratio of-236.39%.
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12 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Revenue The following table sets out the breakdown of revenue of the Group by product type and geographical region: Six months ended 30 June 2026 Six months ended 30 June 2025 Product type RMB’000 (%) RMB’000 (%) PV glass 5,861,594.65 87.90 6,944,929.38 89.76 Household glass 119,791.35 1.80 121,984.36 1.58 Architectural glass 217,900.54 3.27 242,761.23 3.14 Float glass 101,865.66 1.53 28,004.47 0.36 Power generation income 223,379.08 3.35 244,789.03 3.16 Mining products 111,913.30 1.68 1,158.78 0.01 Other businesses 31,765.56 0.47 153,400.89 1.99 Total 6,668,210.14 100.00 7,737,028.14 100.00 Six months ended 30 June 2026 Six months ended 30 June 2025 Geographical region RMB’000 RMB’000 Chinese mainland 4,295,950.29 5,410,758.55 Other Asian countries (excluding China) 1,590,641.70 1,245,867.06 Europe 64,442.81 106,707.86 North America 708,199.13 968,804.44 Other 8,976.21 4,890.23 Total 6,668,210.14 7,737,028.14
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13 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. For the six months ended 30 June 2026, the sales revenue of the Group amounted to approximately RMB6,668.2 million representing a decrease of 13.81% compared with RMB7,737.0 million for the same period in 2025. Among the total sales revenue, sales revenue from PV glass amounted to RMB5,861.6 million, representing a decrease of 15.60% as compared with RMB6,944.9 million for the same period in 2025. The decrease was mainly due to multiple factors, including internal competition within the industry and trade barriers, and the market supply and demand pattern continues to be under pressure. By sales region, the sales revenue in the Chinese mainland during the period amounted to RMB 4,296.0 million, representing a decrease of 20.60% as compared with RMB5,410.8 million during the same period in 2025. Overseas sales revenue amounted to RMB2,372.3 million, representing an increase of 1.98% as compared with RMB2,326.3 million during the same period in 2025. The overseas market recorded positive growth against the trend, with its revenue share increasing from approximately 30.1% during the same period in 2025 to approximately 35.6%, resulting in a more balanced regional structure. Operating costs For the six months ended 30 June 2026, the operating costs of the Group amounted to RMB6,123.0 million, representing a decrease of 7.92% as compared with RMB6,649.9 million for the same period last year. On the one hand, the Group actively optimized the customer structure and reasonably controlled the shipment rhythm, resulting in a year-on-year decrease in sales volume. On the other hand, the decrease in the cost of raw materials plus the gradual effectiveness of measures to improve quality and efficiency contributed to a decrease in the cost side. Gross profit and gross profit margin For the six months ended 30 June 2026, the gross profit of the Group amounted to RMB545.2 million, representing a decrease of 49.85% as compared with RMB1,087.1 million for the same period last year. For the six months ended 30 June 2026, the gross profit margin of the Group amounted to 8.18%, representing a decrease of 5.87 percentage points as compared with 14.05% for the same period last year. The decrease in gross profit margin was mainly due to the narrowing of the gross profit margin of the PV glass business. The core reasons are as follows: (1) the temporary imbalance in the industry’s supply and demand pattern, coupled with the escalation of trade barriers, has led to a significant year-on-year decrease in the average selling price of PV glass, putting pressure on the profit margin. (2) the Group has continuously consolidated its cost competitiveness and partially alleviated its profit pressure through quality improvement and efficiency enhancement measures, including process upgrading and production efficiency optimization.
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14 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The following table sets out the gross profit for the Group’s main products: Six months ended 30 June 2026 Six months ended 30 June 2025 Gross profit Gross profit margin Gross profit Gross profit margin Product type RMB’000 (%) RMB’000 (%) PV glass 394,432.53 6.73 854,843.90 12.31 Household glass 15,991.36 13.35 20,885.95 17.12 Architectural glass 35,312.79 16.21 83,725.56 34.49 Float glass -12,233.59 -12.01 -1,948.36 -6.96 Power generation income 78,172.28 35.00 75,298.68 30.76 Mining products 18,390.45 16.43 -798.02 -68.87 Other businesses 15,107.73 47.56 55,099.28 35.92 Total 545,173.55 8.18 1,087,106.99 14.05 Sales expenses For the six months ended 30 June 2026, the sales expenses of the Group amounted to RMB29.3 million, representing a decrease of 7.28% as compared with RMB31.6 million for the six months ended 30 June 2025. The decrease was mainly attributable to continuous improvements in the utilization efficiency of iron pallets and prudent control over marketing campaign investments. Administrative expenses For the six months ended 30 June 2026, the administrative expenses of the Group amounted to RMB201.8 million, representing an increase of 39.36% as compared with RMB144.8 million for the six months ended 30 June 2025. The increase was mainly due to the increased expenses related to the optimization of production capacity layout, with both of the overall cost control and the administrative expense ratio remaining at a reasonable level.
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15 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Research and development costs For the six months ended 30 June 2026, the research and development costs of the Group amounted to RMB256.0 million, representing an increase of 19.24% from RMB214.7 million for the six months ended 30 June 2025. The increase was mainly due to the Group’s increased investment in research and development, driven by its commitment to exploring new approaches for production process optimization and cost control amid increasingly fierce industry competition. Finance costs For the six months ended 30 June 2026, the finance costs of the Group amounted to RMB255.4 million, representing an increase of 24.22% from RMB205.6 million for the six months ended 30 June 2025. The increase was mainly due to exchange rate fluctuations during the reporting period. Income tax For the six months ended 30 June 2026, the income tax of the Group amounted to RMB-65.0 million, representing a year-on-year change ratio of -791.49% from RMB9.4 million for the six months ended 30 June 2025. This change is mainly due to a decrease in total profit. EBITDA and net profit For the six months ended 30 June 2026, the EBITDA (earnings before interest, taxes, depreciation, and amortization) of the Group amounted to RMB918.2 million, representing a decrease of RMB533.4 million as compared with RMB1,451.6 million for the six months ended 30 June 2025. For the six months ended 30 June 2026, the EBITDA margin of the Group was 13.77%, and the EBITDA margin was 18.76% for the same period in 2025. For the six months ended 30 June 2026, the net profit amounted to RMB-362.8 million, representing a decrease of RMB628.8 million from RMB266.0 million for the same period in 2025.
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16 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Assets and equity Total assets as at 30 June 2026 amounted to RMB41,534.4 million, representing a decrease of RMB850.0 million or 2.01% compared with RMB42,384.4 million as at 31 December 2025. Total stockholder equity as at 30 June 2026 amounted to RMB21,763.6 million, representing a decrease of RMB847.9 million or 3.75% compared with RMB22,611.5 million as at 31 December 2025. FINANCIAL RESOURCES AND LIQUIDITY As at 30 June 2026, the current ratio of the Group was 1.31, compared with 1.57 as at 31 December 2025. For the six months ended 30 June 2026, the Group’s main sources of funding included cash from operating activities and credit financing provided by banks. GEARING RATIO As at 30 June 2026, the gearing ratio (gearing ratio equals total debt divided by total assets as of the end of the year or period multiplied by 100%) of the Group was 47.60%, representing an increase of 0.95 percentage point compared with 46.65% as at 31 December 2025. CAPITAL EXPENDITURES As at 30 June 2026, the total capital expenditures of the Group amounted to approximately RMB682.7 million (as at 30 June 2025: RMB1,739.9 million), involving the purchase of fixed assets for newly constructed projects, construction in progress, and intangible assets.
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17 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. EMPLOYEE AND REMUNERATION POLICY As at 30 June 2026, the Group employed a total of 7,431 employees, and most of them were based in the PRC. For the six months ended 30 June 2026, the total employee remuneration amounted to RMB429.3 million, representing 6.44% of the Group’s total revenue. The Group maintains a good relationship with its employees and provides training to its employees. New employees must attend mandatory in-house training. Furthermore, the Group may arrange for employees to attend external training, such as training for manufacturing management, quality control management, and human resources management. Remuneration of employees is reviewed by the Group periodically with reference to the market rate. After considering the performance of the Group and the job performance of specific employees, the Group may pay them a discretionary bonus. The Group makes contributions for its employees in relation to the mandatory social security funds, including pension, work-related injury insurance, maternity insurance, medical insurance and unemployment insurance, and housing provident fund contributions in the PRC. CREDIT RISK AND FOREIGN EXCHANGE RISK The Group’s transactions are settled mainly in RMB, USD, HKD, VND, and JPY. However, the Group’s operating activities are mainly located in China. For the six months ended 30 June 2026, the Group’s bank facilities were settled in RMB and USD with annual interest rates from 2.11% to 5.19%. As the Group adopts foreign currencies rather than RMB for the transaction of certain sales, procurement, and financing across the globe, the Group is exposed to foreign exchange risk. For the six months ended 30 June 2026, such risks did not have any material impact on the financial performance of the Group. CAPITAL STRUCTURE As at 30 June 2026, the total share capital of the Group was 2,342,880,519 shares, including 1,901,165,519 A shares (13,308,421 A shares were held as treasury shares) and 441,715,000 H shares (12,122,000 H shares were held as treasury shares). SIGNIFICANT INVESTMENT AND MATERIAL ACQUISITION OR DISPOSAL OF SUBSIDIARIES, ASSOCIATES, AND JOINT VENTURES There were no significant investments, no material acquisitions or disposals of subsidiaries, associates, and joint ventures during the six months ended 30 June 2026, nor was there any plan authorized by the Board for other material investments or additions of capital assets at the date of the 2026 interim results announcement.
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18 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Corporate Governance and Other Information COMPLIANCE WITH CORPORATE GOVERNANCE CODE In the opinion of the Board, the Company had complied with the code provisions in the Corporate Governance Code as set forth in Appendix C1 to the Listing Rules on the Hong Kong Stock Exchange during the period from 1 January 2026 to 30 June 2026. MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transaction by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules as the code of conduct regarding securities transactions by the directors (the “Directors”) of the Company. Directors of the Company are reminded of their obligations under the Model Code on a regular basis. Following specific enquiries by the Group, Ms. Ruan Zeyun purchased 3,000 A-shares on the secondary market on 9 February 2026, which was an inadvertent oversight resulting from an operational error by Ms. Ruan Zeyun when she mistakenly clicked the wrong button on the online securities account webpage while browsing her online securities account. The transaction fell within the black-out period and constituted a non-compliance incident of paragraphs A.3 and B.8 of Appendix C3 to the Listing Rules. Following such incident, the Company suspended Ms. Ruan Zeyun’s securities account from all trading activities to ensure Ms. Ruan Zeyun’s compliance with paragraph A.3 of the Model Code. In addition, Ms. Ruan Zeyun attended a training course relating to the Model Code in early May 2026 to ensure she will not contravene Appendix C3 of the Listing Rules again in future. Save as disclosed above, other Directors of the Company have confirmed that they had complied with the required standard set out in the Model Code throughout the period from 1 January 2026 to 30 June 2026.
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19 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. INTERESTS AND SHORT POSITIONS OF DIRECTORS AND CHIEF EXECUTIVES As at 30 June 2026, the interests and short positions of Directors and chief executives of the Company in the shares, underlying shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the “SFO”)), as recorded in the register required to be kept by the Company pursuant to section 352 of the SFO; or as otherwise notified to the Company and the Hong Kong Stock Exchange pursuant to the Divisions 7 and 8 of Part XV of the SFO (including interest or short position which the Directors or the chief executive were taken or deemed to have under such provisions) and the Model Code contained in the Listing Rules, were as follows: Shareholder Number of Shares held Class Nature of Interest Approximate percentage of shareholding in the relevant class of shares (1) Approximate percentage of shareholding in the total share capital of the Company (2) Directors Mr. Ruan Hongliang (3) 1,104,775,000 (L) A Shares Beneficial owner and parties acting in concert 58.11% 47.15% 14,921,000 (L) H Shares Beneficial owner, parties acting in concert and interest of controlled corporation 3.38% 0.64% Ms. Jiang Jinhua (3) 1,104,775,000 (L) A Shares Beneficial owner and parties acting in concert 58.11% 47.15% 14,921,000 (L) H Shares Beneficial owner, parties acting in concert and interest of controlled corporation 3.38% 0.64% Ms. Ruan Zeyun (3) 1,104,775,000 (L) A Shares Beneficial owner and parties acting in concert 58.11% 47.15% 14,921,000 (L) H Shares Beneficial owner, parties acting in concert and interest of controlled corporation 3.38% 0.64% Mr. Wei Yezhong 14,040,600 (L) A Shares Beneficial owner 0.74% 0.60% Mr. Shen Qifu 9,360,400 (L) A Shares Beneficial owner 0.49% 0.40%
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20 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Notes: (1) The calculation is based on the total number of 1,901,165,519 A Shares or 441,715,000 H Shares of the Company in issue as at 30 June 2026. (2) The calculation is based on the total number of 1,901,165,519 A Shares and the total number of 441,715,000 H Shares (i.e. a total of 2,342,880,519 Shares) in issue as at 30 June 2026. (3) Mr. Ruan Hongliang is the spouse of Ms. Jiang Jinhua. As at 30 June 2026, Mr. Ruan Hongliang owns 439,358,400 A Shares and 485,000 H Shares. Ms. Jiang Jinhua owns 310,081,600 A Shares and 111,000 H Shares. Ms. Ruan Zeyun is the spouse of Mr. Zhao Xiaofei, and the daughter of Mr. Ruan Hongliang and Ms. Jiang Jinhua. Ms. Ruan Zeyun owns 350,535,000 A Shares and 2,203,000 H Shares. Mr. Zhao Xiaofei owns 4,800,000 A Shares. As at 30 June 2026, the Company had repurchased 12,122,000 H Shares for holding as treasury shares. Since Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun and Mr. Zhao Xiaofei, as parties to a concert party agreement dated 19 September 2016 entered into among them, together control more than one-third voting power at the Company’s general meetings, they are taken to have an interest in such treasury shares of the Company under the SFO. Pursuant to the aforesaid concert party agreement, each of Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun and Mr. Zhao Xiaofei is considered to be interested in 1,104,775,000 A Shares and 14,921,000 H Shares under the SFO. Save as disclosed above, as at 30 June 2026, to the knowledge of the Company, none of the Directors and the chief executive of the Company had or was deemed under the SFO to have any interests or short positions in any of the Shares or the underlying Shares and debentures of the Company and any of its associated corporations (within the meaning of Part XV of the SFO) which was required to be recorded in the register required to be kept by the Company pursuant to section 352 of the SFO, or as otherwise required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Divisions 7 and 8 of Part XV of the SFO or to be notified to the Company and the Stock Exchange pursuant to the Model Code.
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21 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS As at 30 June 2026, the persons or corporations, other than the directors and the chief executive of the Company, who had an interest or short position in the Shares, underlying Shares or debentures of the Company which were required to be disclosed to the Company under the provisions of Division 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO were as follows: Shareholder Number of Shares held Class Nature of interest Approximate percentage of shareholding in the relevant class of Shares (1) Approximate percentage of shareholding in the total share capital of the Company (2) Mr. Zhao Xiaofei (3) 1,104,775,000 (L) A Shares Beneficial owner and parties acting in concert 58.11% 47.15% 14,921,000 (L) H Shares Parties acting in concert and interest of controlled corporation 3.38% 0.64% JPMorgan Chase & Co. (4) 74,936,767 (L) 10,951,941 (S) 9,150,361 (P) H Shares Beneficial owner, investment manager, security interest in shares and approved lending agent 16.96% 2.48% 2.07% 3.20% 0.47% 0.39% Pacific Asset Management Co., Ltd. 31,525,000 (L) H Shares Investment manager 7.14% 1.35% Shanghai Ningquan Asset Management Co., Ltd. 31,174,000 (L) H Shares Investment manager 7.06% 1.33% The Bank of New York Mellon Corporation (5) 30,274,389 (L) 27,026,034 (P) H Shares Interest of controlled corporation 6.85% 6.12% 1.29% 1.15% Shanghai Greenwoods Asset Management Company Limited (6) 27,042,000 (L) H Shares Investment manager 6.12% 1.15%
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22 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Shareholder Number of Shares held Class Nature of interest Approximate percentage of shareholding in the relevant class of Shares (1) Approximate percentage of shareholding in the total share capital of the Company (2) Xizang Jingning Corporate Management Company Limited (6) 27,042,000 (L) H Shares Interest of controlled corporation 6.12% 1.15% Invesco Capital Management LLC 27,007,554 (L) H Shares Investment manager 6.11% 1.15% CICC Pucheng Investment Co., Ltd. 23,870,000 (L) H Shares Beneficial owner 5.40% 1.02% China International Capital Corporation Limited (7) 22,573,000 (L) H Shares Interest of controlled corporation 5.11% 0.96% HSBC Holdings plc (8) 22,250,846 (L) 5,597,083 (S) H Shares Interest of controlled corporation, custodian and investment manager 5.04% 1.27% 0.95% 0.24% Notesj (1) The calculation is based on the total number of 1,901,165,519 A Shares or 441,715,000 H Shares of the Company in issue as at 30 June 2026. (2) The calculation is based on the total number of 1,901,165,519 A Shares and the total number of 441,715,000 H Shares (i.e. a total of 2,342,880,519 Shares) in issue as at 30 June 2026. (3) Mr. Ruan Hongliang is the spouse of Ms. Jiang Jinhua. As at 30 June 2026, Mr. Ruan Hongliang owns 439,358,400 A Shares and 485,000 H Shares. Ms. Jiang Jinhua owns 310,081,600 A Shares and 111,000 H Shares. Ms. Ruan Zeyun is the spouse of Mr. Zhao Xiaofei, and the daughter of Mr. Ruan Hongliang and Ms. Jiang Jinhua. Ms. Ruan Zeyun owns 350,535,000 A Shares and 2,203,000 H Shares. Mr. Zhao Xiaofei owns 4,800,000 A Shares. As at 30 June 2026, the Company had repurchased 12,122,000 H Shares for holding as treasury shares. Since Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun and Mr. Zhao Xiaofei, as parties to a concert party agreement dated 19 September 2016 entered into among them, together control more than one-third voting power at the Company’s general meetings, they are taken to have an interest in such treasury shares of the Company under the SFO. Pursuant to the aforesaid concert party agreement, each of Mr. Ruan Hongliang, Ms. Jiang Jinhua, Ms. Ruan Zeyun and Mr. Zhao Xiaofei is considered to be interested in 1,104,775,000 A Shares and 14,921,000 H Shares under the SFO.
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23 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (4) JPMorgan Chase & Co. indirectly held relevant interests and short positions through a series of its controlled corporations, including holding of certain unlisted derivatives (physical settlement: 164,931 shares (long positions) and 329,863 shares (short positions); and cash settlement: 5,471,761 shares (long positions) and 3,324,000 shares (short positions)). (5) The Bank of New York Mellon Corporation indirectly held relevant interests through its controlled corporation, namely The Bank of New York Mellon. (6) Xizang Jingning Corporate Management Company Limited held 100% equity interest in Shanghai Greenwoods Asset Management Company Limited, through which certain unlisted derivatives (cash settlement: 27,042,000 shares (long positions)) are held. (7) China International Capital Corporation Limited indirectly held relevant interests through a series of its controlled corporations. (8) HSBC Holdings plc held relevant interests and short positions through a series of its controlled corporations, including holding of certain unlisted derivatives (physical settlement: 102,314 (long positions) and 2,196,134 shares (short positions); and cash settlement: 3,256,000 shares (short positions)). Save as disclosed above, as at 30 June 2026, so far as is known to the Directors, there is no other person (other than the Directors, supervisors or the chief executive of the Company) who had interests or short positions in the Shares or underlying Shares of the Company which would fall to be disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Division 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept under section 336 of the SFO. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Purchases of H Shares Reference is made to the announcement of the Company dated 8 April 2026 in relation to proposed general mandate (the “ H Share Repurchase Mandate”) to repurchase H shares and the circular dated 17 April 2026, with firm confidence in the Company’s future development prospects and high recognition of the Company’s value, and with a view to further safeguarding shareholders’ interests and enhancing investor confidence, the Company, after taking into consideration its business development outlook, operating conditions, financial position, future profitability and the recent performance of its H Shares on the secondary market, proposes to repurchase its H Shares. The H Shares repurchased were held as treasury shares. The Company believes that the repurchase of H Shares is in the interests of the Company and shareholders as a whole.
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24 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The Company bought back a total of 12,122,000 H Shares on the Hong Kong Stock Exchange during the six months ended 30 June 2026. Details of share purchases are as follows: Date Number of Shares repurchased Repurchased price per Share (HKD) Total consideration Highest Lowest (HKD) 21 May 2026 3,750,000 8.02 7.91 29,931,730 22 May 2026 439,000 7.99 7.90 3,499,870 28 May 2026 1,290,000 7.77 7.60 9,943,600 04 June 2026 1,256,000 8.00 7.87 9,999,240 08 June 2026 1,196,000 7.53 7.41 8,947,490 10 June 2026 882,000 7.49 7.16 6,454,080 22 June 2026 1,470,000 6.91 6.65 9,998,780 25 June 2026 909,000 5.99 5.86 5,418,100 30 June 2026 930,000 6.50 6.29 5,962,900 Total 12,122,000 90,155,790
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25 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. ISSUANCE OF EQUITY SECURITIES AND USE OF PROCEEDS 1. Issuance of A Share Convertible Bonds To further expand the capacity and maintain the leading technology and scale advantage of the Company’s core product PV glass, while enhancing the financial strength and meet the working capital requirements of the Company, the Company proposed to issue A share convertible corporate bonds in the PRC, with total proceeds of no more than RMB4 billion. The relevant resolution was approved at the Board meeting held on 16 June 2021, and was approved at the 2021 second extraordinary general meeting, the 2021 second A share class meeting and the 2021 second H shareholders class meeting of the Company on 20 August 2021. On 16 June 2021, the announcement in relation to the issuance of A shares convertible bonds was published on the website of the Hong Kong Stock Exchange and the closing price of A share on that day was RMB29.53 per share. The target investors of the A share convertible bonds are natural persons, legal persons, securities investment funds and other investors who meet the requirements under the laws, and who have maintained securities accounts with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited (except those prohibited by the state laws and regulations in the PRC). It was reported to the CSRC on 8 November 2021 and it was approved by CSRC in March 2022. The issuance of A share convertible bonds was completed in May 2022. The A share convertible bonds under this issuance were with a nominal value of RMB100 and were issued at par. The Company completed the issue of 40 million convertible bonds. The subscription funds for the A share convertible bonds under this issuance totaled RMB4,000,000,000.00. After deducting the issuance fee of RMB23,078,799.67, the net funds raised were RMB3,976,921,200.33. As of 30 June 2026, a total of RMB128,000 convertible bonds has been converted into 2,964 A Shares of the Company.
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26 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The total net proceeds from the public issuance of A share convertible bonds by the Company amounted to approximately RMB3,976.92 million. As at 30 June 2026, the use of such proceeds were as follows: Percentage of net proceeds Amount of net proceeds Amount utilized Amount unutilized Use for (RMB’0,000) (RMB’0,000) (RMB’0,000) Annual production of 750,000 tons of solar equipment ultra-thin and ultra- high-transparent panel manufacturing project 48.91% 194,500.00 144,192.38 50,307.62 Distributed PV power generation construction project 15.97% 63,492.12 41,449.06 22,043.06 Annual production of 15 million square meters of solar PV ultra-white glass technical transformation project 4.95% 19,700.00 19,042.04 657.96 Working capital 30.17% 120,000.00 120,000.00 – Total 100% 397,692.12 324,683.48 73,008.64 The amount unutilized is excepted to be fully utilized by the Company according to its use of proceeds plan for such proceeds by 31 December 2026. As at the date of the 2026 interim results announcement, the Directors confirm that the proceeds were used and are proposed to be used according to the intentions previously disclosed.
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27 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. TAXATION Holders of A shares In accordance with the Notice of the Ministry of Finance, the State Administration of Taxation and the CSRC on Implementing Differentiated Individual Income Tax Policy for Stock Dividends of Listed Companies (Cai Shui [2015] No. 101) ( ( ৌ[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 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 reporting period in that month. Resident enterprise shareholders of A shares shall report and pay for the enterprise income tax of dividends by themselves.
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28 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 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) (ਕ ͏ΆุΣQFII (Ռ2009[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. 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) (๕ ( 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) (ਕᐼ ͏Άุ՟Bҭᔧ( Ռ[2009]394 )). Non-resident enterprise shareholders entitled to preferential tax treatment 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) (လ ( ৌ[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.
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29 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 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) (ਕᐼ҅eʕᗇ္ ( ৌ[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. 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) (ஷ (ৌ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. 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) (͏ΆุΣྤ̮H˾ϔ˾ᖮΆ ( Ռ[2008]897 )), distributing dividends to foreign nonresident 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.
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30 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 According to the requirements of the Notice on the Tax Policies Concerning the Pilot Program of the Shanghai-Hong Kong Stock Connect published by the Ministry of Finance, the State Administration of Taxation and the CSRC (Cai Shui [2014] No. 81) (ਕᐼ҅e ( ৌ[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 on the Tax Policies Concerning the Pilot Program of the Shenzhen Hong Kong Stock Connect published by the Ministry of Finance, the State Administration of Taxation and the CSRC (Cai Shui[2016] No. 127) (ਕᐼ҅e ( ৌ[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 could 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.
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31 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. DIVIDENDS The Board did not recommend the declaration of any interim dividends for the six months ended 30 June 2026. REVIEW OF THE INTERIM REPORT BY THE AUDIT COMMITTEE OF THE COMPANY The Company’s interim report for the six months ended 30 June 2026 is unaudited, but has been reviewed by the Company’s audit committee, comprising its three independent non-executive Directors.
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32 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Consolidated Balance Sheet RMB Items Note (VII) 30 June 2026 31 December 2025 Current assets: Cash at bank and on hand 1 3,786,706,023.89 4,014,459,672.62 Trading financial assets 2 540,065,480.45 480,018,805.88 Derivative financial assets 3 2,083,180.44 1,656,645.00 Bills receivables 4 632,208,068.91 1,016,212,275.03 Trade receivables 5 2,968,757,968.53 2,428,708,501.94 Financing receivables 7 625,860,210.87 1,124,553,338.33 Advance payment 8 142,940,010.17 166,206,730.04 Other receivables 9 62,220,053.60 97,757,698.58 Including: Dividends receivable 1,562,500.00 – Inventories 10 1,779,747,481.63 1,735,135,213.69 Non-current assets due within one year 232,089,813.56 140,576,000.00 Other current assets 13 1,137,678,986.11 1,071,463,305.25 Total current assets 11,910,357,278.16 12,276,748,186.36 Non-current assets: Debt investment 14 2,526,000.00 126,000.00 Other debt investment 15 61,630,356.18 290,377,868.35 Long-term equity investments 17 286,205,919.18 187,979,762.05 Investment properties 20 448,365,799.35 461,152,874.31 Fixed assets 21 16,880,587,831.70 17,571,474,371.61 Construction in progress 22 3,781,330,271.16 3,413,645,753.55 Right-of-use asset 25 975,709,779.21 996,430,940.45 Intangible assets 26 6,215,777,213.17 6,252,537,787.15 Long-term prepaid expenses 28 204,982,730.89 207,028,579.70 Deferred tax assets 29 378,938,021.90 334,258,007.22 Other non-current assets 30 388,000,565.65 392,654,117.66 Total non-current assets 29,624,054,488.39 30,107,666,062.05 Total assets 41,534,411,766.55 42,384,414,248.41
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33 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Items Note (VII) 30 June 2026 31 December 2025 Current liabilities: Short-term borrowings 32 1,560,208,580.00 832,480,837.67 Derivative financial liabilities 34 8,876,883.00 6,305,020.68 Bills payables 35 321,917,263.38 127,989,845.88 Trade payables 36 3,873,193,578.72 3,987,254,610.05 Contract liabilities 38 43,900,934.48 44,465,850.49 Payroll payable 39 86,114,841.74 103,319,575.09 Tax payable 40 242,170,441.39 150,676,965.96 Other payables 41 133,594,470.85 192,579,096.56 Including: Interests payable 23,026,619.40 45,223,547.09 Dividends payable 157,920.00 136,920.00 Non-current liabilities due within one year 43 2,847,484,399.95 2,393,385,639.52 Other current liabilities 44 3,333,204.46 2,805,550.04 Total current liabilities 9,120,794,597.97 7,841,262,991.94 Non-current liabilities: Long-term borrowings 45 5,101,906,843.82 6,442,996,957.67 Bonds payables 46 4,137,000,172.66 4,065,908,075.91 Lease liabilities 47 756,296,073.58 766,355,039.78 Long-term payables 48 118,980,504.24 – Estimated liabilities 50 3,551,671.12 3,897,359.93 Deferred income 51 305,674,964.81 321,321,835.41 Deferred tax liabilities 29 226,645,881.63 331,147,734.17 Total non-current liabilities 10,650,056,111.86 11,931,627,002.87 Total liabilities 19,770,850,709.83 19,772,889,994.81 RMB
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34 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Items Note (VII) 30 June 2026 31 December 2025 Shareholders’ equity: Share capital 53 585,720,129.75 585,720,058.25 Other equity instruments 54 491,719,779.00 491,721,254.21 Capital reserve 55 10,705,843,819.82 10,705,664,290.01 Less: Treasury stock 56 375,317,318.30 301,856,607.47 Other comprehensive income 57 -215,428,760.86 -140,237,601.82 Special reserve 58 99,258,215.08 85,214,090.18 Surplus reserve 59 293,915,529.38 293,915,529.38 Undistributed profit 60 10,082,430,953.52 10,794,884,367.54 Total equity attributable to shareholders of the parent company 21,668,142,347.39 22,515,025,380.28 Minority interests 95,418,709.33 96,498,873.32 Total shareholders’ equity 21,763,561,056.72 22,611,524,253.60 Total liabilities and shareholders’ equity 41,534,411,766.55 42,384,414,248.41 RMB
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35 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Balance Sheet of the Parent Company RMB Items Note (XIX) 30 June 2026 31 December 2025 Current assets: Cash at bank and on hand 1,268,049,422.13 1,153,658,467.86 Trading financial assets 440,065,480.45 300,018,805.88 Derivative financial assets 2,083,180.44 – Bills receivable 282,242,443.84 358,878,953.73 Trade receivables 1 1,054,362,950.22 690,936,235.14 Financing receivables 266,711,026.84 125,572,253.06 Advance payment 32,491,451.73 55,806,828.74 Other receivables 2 4,542,899,869.61 3,858,268,970.51 Inventories 362,892,674.68 334,024,436.19 Non-current assets due within one year – 140,576,000.00 Other current assets 481,628,855.36 211,485,916.87 Total current assets 8,733,427,355.30 7,229,226,867.98 Non-current assets: Debt investment 126,000.00 126,000.00 Other debt investment 61,630,356.18 61,065,041.10 Long-term equity investments 3 3,725,355,380.66 3,685,723,206.03 Investment properties 436,005,185.12 448,076,524.88 Fixed assets 2,651,610,005.21 2,845,160,929.01 Construction in progress 104,563,181.59 98,626,643.08 Intangible assets 359,624,888.42 363,558,430.18 Long-term prepaid expenses 62,491,770.39 70,162,993.30 Deferred tax assets 20,203,494.08 – Other non-current assets 7,166,852,780.59 8,229,686,110.22 Total non-current assets 14,588,463,042.24 15,802,185,877.80 Total assets 23,321,890,397.54 23,031,412,745.78
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36 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Items Note (XIX) 30 June 2026 31 December 2025 Current liabilities: Short-term borrowings 934,936,080.00 204,633,600.00 Derivative financial liabilities 5,804,034.00 2,418,470.15 Bills payables 397,884,703.69 143,758,325.05 Trade payables 777,123,360.12 794,403,016.92 Contract liabilities 37,857,515.71 9,573,420.23 Payroll payable 33,642,848.42 40,601,371.13 Tax payable 37,696,579.25 27,643,660.73 Other payables 505,445,932.84 501,891,230.09 Including: Interest payable 17,963,422.22 39,853,197.86 Dividends payable 157,920.00 136,920.00 Non-current liabilities due within one year 1,335,771,669.88 587,033,486.14 Other current liabilities 1,522,108.32 942,707.59 Total current liabilities 4,067,684,832.23 2,312,899,288.03 Non-current liabilities: Long-term borrowings 2,189,119,496.82 2,936,624,566.26 Bonds payables 4,137,000,172.66 4,065,908,075.91 Deferred income 105,612,430.16 113,945,040.14 Deferred tax liabilities – 41,764,122.54 Total non-current liabilities 6,431,732,099.64 7,158,241,804.85 Total liabilities 10,499,416,931.87 9,471,141,092.88 RMB
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37 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Items Note (XIX) 30 June 2026 31 December 2025 Shareholders’ equity: Share capital 585,720,129.75 585,720,058.25 Other equity instruments 491,719,779.00 491,721,254.21 Capital reserve 10,706,357,361.73 10,706,177,831.92 Less: Treasury stock 375,317,318.30 301,856,607.47 Surplus reserve 293,915,529.38 293,915,529.38 Undistributed profit 1,120,077,984.11 1,784,593,586.61 Total shareholders’ equity 12,822,473,465.67 13,560,271,652.90 Total liabilities and shareholders’ equity 23,321,890,397.54 23,031,412,745.78 RMB
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38 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Consolidated Income Statements RMB Items Note (VII) For the six months ended 30 June 2026 For the six months ended 30 June 2025 I. Operating revenue 61 6,668,210,124.99 7,737,028,136.06 Including: Operating revenue 6,668,210,124.99 7,737,028,136.06 II. Operating costs 61 6,956,895,159.00 7,317,145,793.20 Including: Operating costs 6,123,036,574.97 6,649,921,146.42 Taxes and surcharges 62 91,329,521.27 70,524,451.47 Selling expenses 63 29,254,057.74 31,583,324.40 General and administrative expenses 64 201,829,445.51 144,771,118.55 Research and development expenses 65 256,017,863.37 214,736,035.17 Financial expenses 66 255,427,696.14 205,609,717.19 Including: Interest expenses 247,733,829.68 266,176,196.06 Interest income 50,256,744.53 40,217,174.01 Add: Other income 67 42,308,877.75 45,592,149.55 Investment income 68 17,148,003.22 19,862,455.26 Including: Ga ins on investment in associates and joint ventures 13,004,132.13 17,203,819.27 Profit arising from changes in fair value (losses are indicated by “-”) 70 -2,148,652.31 -382,209.81 Credit impairment loss (losses are indicated by “-”) 71 1,041,853.58 13,270,599.75 Asset impairment loss (losses are indicated by “-”) 72 -201,271,348.33 -253,917,860.30 Gains on disposal of assets (losses are indicated by “-”) 73 3,360,349.05 29,670,956.68 III. Operating profit (losses are indicated by “-”) -428,245,951.05 273,978,433.99 Add: Non-operating income 74 4,654,246.96 1,735,381.30 Less: Non-operating expenses 75 4,135,180.73 375,472.64
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39 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Items Note (VII) For the six months ended 30 June 2026 For the six months ended 30 June 2025 IV. Total profit (losses are indicated by “-”) -427,726,884.82 275,338,342.65 Less: Income tax expense 76 -64,955,769.50 9,380,962.86 V. Net profit (losses are indicated by “-”) -362,771,115.32 265,957,379.79 (I) Classified on a going concern basis 1. Net profit from continuing operation (losses are indicated by “-”) -362,771,115.32 265,957,379.79 2. Net profit from discontinued operation (losses are indicated by “-”) – – (II) Classified by attribution of the ownership 1. Net profit attributable to shareholders of the parent company (losses are indicated by “-”) -363,017,628.12 261,094,606.72 2. Profit or loss attributable to minority interests (losses are indicated by “-”) 246,512.79 4,862,773.07 VI. Other comprehensive income, net of tax -76,517,835.82 -33,853,238.27 (I) Other comprehensive income, net of tax attributable to the owner of parent company -75,191,159.04 -33,853,238.27 1. Other comprehensive income that will not be reclassified to profit or loss – – 2. Other comprehensive income that will be reclassified to profit or loss -75,191,159.04 -33,853,238.27 (1) Exchange differences on foreign currency financial statements translation -75,191,159.04 -33,853,238.27 (II) Other comprehensive income, net of tax attributable to minority interests -1,326,676.78 – VII. Total comprehensive income -439,288,951.15 232,104,141.52 (I) Attributable to the shareholders of the parent company -438,208,787.16 227,241,368.45 (II) Attributable to the minority interests -1,080,163.99 4,862,773.07 VIII. Earnings per share (I) Basic earnings per share (RMB per share) -0.16 0.11 (II) Diluted earnings per share (RMB per share) -0.16 0.11 RMB
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40 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Income Statements of the Parent Company RMB Items Note (XIX) For the six months ended 30 June 2026 For the six months ended 30 June 2025 I. Operating revenue 4 2,034,793,724.56 1,760,018,148.33 Less: Operating costs 4 1,988,185,667.89 1,531,976,906.67 Taxes and surcharges 19,008,532.86 14,046,400.75 Selling expenses 16,439,393.16 15,406,613.72 General and administrative expenses 79,891,232.55 73,258,108.65 Research and development expenses 83,352,356.83 58,873,828.25 Financial expenses 165,867,320.93 135,866,063.39 Including: Interest expenses 153,274,005.79 146,568,948.63 Interest income 32,054,600.99 12,019,507.54 Add: Other income 18,985,357.07 16,496,381.08 Investment income (losses are indicated by “-”) 5 12,336,299.34 15,154,367.20 Including: Ga ins on investment in associates and joint ventures 10,002,191.73 13,942,219.27 Gains from changes in fair value (losses are indicated by “-”) -1,305,708.84 -1,068,730.88 Credit impairment loss (losses are indicated by “-”) 1,250,133.03 2,003,900.55 Asset impairment loss (losses are indicated by “-”) -93,301,924.61 -11,988,537.35 Gains on disposal of assets (losses are indicated by “-”) -675,203.13 29,433,556.32 II. Operating profit -380,661,826.80 -19,378,836.18 Add: Non-operating income 1,251,656.11 261,134.89 Less: Non-operating expenses 367,390.25 52,273.22 III. Total profit -379,777,560.94 -19,169,974.51 Less: Income tax expense -64,697,744.34 1,541,973.27 IV. Net profit -315,079,816.60 -20,711,947.78
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41 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Consolidated Statements of Cash Flow RMB Items Note (VII) For the six months ended 30 June 2026 For the six months ended 30 June 2025 I. Cash flow from operating activities: Cash received from sale of goods or rendering of services 5,140,689,989.51 5,545,855,245.53 Cash received from refunds of taxes 106,751,520.70 103,676,917.69 Cash received relating to other operating activities 78(1) 70,583,564.07 144,810,097.33 Subtotal of cash inflows 5,318,025,074.28 5,794,342,260.55 Cash paid for goods and services 3,056,823,161.33 3,499,458,967.81 Cash paid to and on behalf of employee 447,488,773.21 458,899,688.82 Cash paid for payments of taxes and surcharges 182,044,039.46 237,645,812.64 Cash paid relating to other operating activities 78(1) 290,749,950.70 197,634,516.03 Subtotal of cash outflows 3,977,105,924.70 4,393,638,985.30 Net cash flow from operating activities 1,340,919,149.58 1,400,703,275.25 II. Cash flow from investing activities: Cash received from disposal of investments 78(2) 2,269,132,397.22 2,750,000,000.00 Cash received from returns on investments 20,143,871.09 2,530,655.98 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 19,937,811.03 52,689,297.56 Cash received relating to other investing activities 78(2) 1,170,973,995.46 743,542,437.03 Subtotal of cash inflows 3,480,188,074.80 3,548,762,390.57 Cash paid to purchase fixed assets, intangible assets and other long-term assets 682,723,402.49 1,739,867,227.55 Cash paid relating to investment 78(2) 2,522,897,463.58 2,420,126,000.00 Net cash paid for acquisition of subsidiaries and other business units – 74,742,262.05 Cash paid relating to other investing activities 1,113,375,495.40 736,710,824.99 Subtotal of cash outflows 78(2) 4,318,996,361.47 4,971,446,314.59 Net cash flow from investing activities -838,808,286.67 -1,422,683,924.02
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42 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Items Note (VII) For the six months ended 30 June 2026 For the six months ended 30 June 2025 III. Cash flow from financing activities: Cash received from borrowings 2,162,902,275.94 2,197,576,175.10 Cash received relating to other financing activities 78(3) 404,289,470.37 809,259,396.77 Subtotal of cash inflows 2,567,191,746.31 3,006,835,571.87 Cash paid for payment of borrowings 2,307,650,595.30 2,701,058,689.39 Cash paid for distribution of dividends, and profits or payment of interest 534,660,905.52 195,453,230.21 Cash paid relating to other financing activities 78(3) 399,866,604.33 401,065,637.68 Subtotal of cash outflows 3,242,178,105.15 3,297,577,557.28 Net cash flow from financing activities -674,986,358.84 -290,741,985.41 IV. Effect of foreign exchange rate changes on cash and cash equivalents -43,273,314.48 2,507,840.26 V. Net increase in cash and cash equivalents -216,148,810.42 -310,214,793.92 Add: Cash and cash equivalents at the beginning of the current period 79(4) 3,719,428,902.79 4,511,627,060.96 VI. Cash and cash equivalents at the end of the current period 79(4) 3,503,280,092.37 4,201,412,267.04 RMB
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43 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Statements of Cash Flow of the Parent Company RMB Items Note For the six months ended 30 June 2026 For the six months ended 30 June 2025 I. Cash flow from operating activities: Cash received from sale of goods or rendering of services 1,030,411,778.26 1,133,538,636.47 Cash received from refunds of taxes 18,449,485.71 21,592,313.80 Cash received relating to other operating activities 44,861,526.73 89,732,994.15 Subtotal of cash inflows 1,093,722,790.70 1,244,863,944.42 Cash paid for goods and services 971,018,044.49 686,470,749.43 Cash paid to and on behalf of employee 162,000,842.27 158,394,845.62 Cash paid for payments of taxes and surcharges 29,742,091.29 13,300,390.94 Cash paid relating to other operating activities 89,385,882.93 52,713,690.29 Subtotal of cash outflows 1,252,146,860.98 910,879,676.28 Net cash flow from operating activities -158,424,070.28 333,984,268.14 II. Cash flow from investing activities: Cash received from disposal of investments 1,430,000,000.00 1,520,000,000.00 Cash received from returns on investments 18,334,107.61 542,147.93 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 8,769,259.06 43,815,236.72 Cash received relating to other investing activities 2,691,436,774.75 2,263,087,501.00 Subtotal of cash inflows 4,148,540,141.42 3,827,444,885.65 Cash paid to purchase fixed assets, intangible assets and other long-term assets 83,696,318.48 86,026,610.17 Cash paid relating to investment 1,823,939,147.76 1,400,126,000.00 Cash paid relating to other investing activities 2,263,096,920.23 2,368,309,984.55 Subtotal of cash outflows 4,170,732,386.47 3,854,462,594.72 Net cash flow from investing activities -22,192,245.05 -27,017,709.07
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44 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Items Note For the six months ended 30 June 2026 For the six months ended 30 June 2025 III. Cash flow from financing activities: Cash received from borrowings 988,503,120.00 1,506,000,000.00 Cash received relating to other financing activities 337,263,941.21 368,701,805.85 Subtotal of cash inflows 1,325,767,061.21 1,874,701,805.85 Cash paid for payment of borrowings 248,766,885.70 1,483,315,695.86 Cash paid for distribution of dividends, and profits or payment of interest 453,466,555.23 88,721,436.60 Cash paid relating to other financing activities 398,080,329.71 468,986,661.36 Subtotal of cash outflows 1,100,313,770.64 2,041,023,793.82 Net cash flow from financing activities 225,453,290.57 -166,321,987.97 IV. Effect of foreign exchange rate changes on cash and cash equivalents -6,466,543.14 2,494,068.97 V. Net increase in cash and cash equivalents 38,370,432.10 143,138,640.07 Add: Ca sh and cash equivalents at the beginning of the current period 1,123,058,199.79 1,177,258,202.64 VI. Cash and cash equivalents at the end of the current period 1,161,428,631.89 1,320,396,842.71 RMB
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45 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Consolidated Statements of Changes in Owners’ Equity RMB For the six months ended 30 June 2026 Equity attributable to owners of the parent company Items Share capital Other equity instruments Capital reserve Less: Treasury stock Other comprehensive income Special reserve Surplus reserve Undistributed profit Minority interests Total equity I. Balance at the beginning of the period 585,720,058.25 491,721,254.21 10,705,664,290.01 301,856,607.47 -140,237,601.82 85,214,090.18 293,915,529.38 10,794,884,367.54 96,498,873.32 22,611,524,253.60 II. Total changes during the period 71.50 -1,475.21 179,529.81 73,460,710.83 -75,191,159.04 14,044,124.90 – -712,453,414.02 -1,080,163.99 -847,963,196.88 (I) Total comprehensive income – – – – -75,191,159.04 – – -363,017,628.12 -1,080,163.99 -439,288,951.15 (II) Contributions from shareholders 71.50 -1,475.21 179,529.81 73,460,710.83 – – – – – -73,282,584.73 1. Capital contributed by holders of other equity instruments 71.50 -1,475.21 21,319.08 – – – – – – 19,915.37 2. Amounts included in owners’ equity from share-based payments – – 158,210.73 – – – – – – 158,210.73 3. Share repurchases – – – 73,460,710.83 – – – – – -73,460,710.83 4. Acquisition of equity interests from minority shareholders – – – – – – – – – – (III) Profit distribution – – – – – – – -349,435,785.90 – -349,435,785.90 1. Distributions to shareholders – – – – – – – -349,435,785.90 – -349,435,785.90 (IV) Special reserve – – – – – 14,044,124.90 – – – 14,044,124.90 1. Appropriation to special reserve – – – – – 14,968,142.43 – – – 14,968,142.43 2. Utilisation of special reserve – – – – – -924,017.53 – – – -924,017.53 III. Balance at the end of the period 585,720,129.75 491,719,779.00 10,705,843,819.82 375,317,318.30 -215,428,760.86 99,258,215.08 293,915,529.38 10,082,430,953.52 95,418,709.33 21,763,561,056.72
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46 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 RMB For the six months ended 30 June 2025 Equity attributable to owners of the parent company Items Share capital Other equity instruments Capital reserve Less: Treasury stock Other comprehensive income Special reserve Surplus reserve Undistributed profit Minority interests Total equity I. Balance at the end of last year 585,729,891.25 491,724,696.36 10,700,692,654.16 229,499,392.17 -26,317,651.97 68,241,880.14 293,915,529.38 9,814,310,237.19 85,363,031.69 21,784,160,876.03 II. Balance at the beginning of the current period 585,729,891.25 491,724,696.36 10,700,692,654.16 229,499,392.17 -26,317,651.97 68,241,880.14 293,915,529.38 9,814,310,237.19 85,363,031.69 21,784,160,876.03 III. Total changes during the current period 143.50 -2,950.41 4,114,136.99 76,689,035.30 -33,853,238.27 5,466,955.04 – 261,094,606.72 4,376,314.98 164,506,933.25 (I) Total comprehensive income – – – – -33,853,238.27 – – 261,094,606.72 4,862,773.07 232,104,141.52 (II) Contributions from shareholders 143.50 -2,950.41 4,114,136.99 76,689,035.30 – – – – -486,458.09 -73,064,163.31 1. Capital contributed by holders of other equity instruments 143.50 -2,950.41 32,054.80 – – – – – – 29,247.89 2. Amounts included in owners’ equity from share-based payments – – 4,595,624.10 -1,855,280.00 – – – – – 6,450,904.10 3. Share repurchases – – – 78,544,315.30 – – – – – -78,544,315.30 4. Acquisition of equity interests from minority shareholders – – -513,541.91 – – – – – -486,458.09 -1,000,000.00 (III) Profit distribution – – – – – – – – – – (IV) Special reserve – – – – – 5,466,955.04 – – – 5,466,955.04 1. Appropriation to special reserve – – – – – 5,498,996.69 – – – 5,498,996.69 2. Utilisation of special reserve – – – – – -32,041.65 – – – -32,041.65 IV. Balance at the end of the current period 585,730,034.75 491,721,745.95 10,704,806,791.15 306,188,427.47 -60,170,890.24 73,708,835.18 293,915,529.38 10,075,404,843.91 89,739,346.67 21,948,667,809.28
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47 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Statements of Changes in Owners’ Equity of the Parent Company RMB For the six months ended 30 June 2026 Items Share capital Other equity instruments Capital reserve Less: Treasury stock Surplus reserve Undistributed profit Total equity I. Balance at the beginning of the year 585,720,058.25 491,721,254.21 10,706,177,831.92 301,856,607.47 293,915,529.38 1,784,593,586.61 13,560,271,652.90 II. Total changes during the year 71.50 -1,475.21 179,529.81 73,460,710.83 – -664,515,602.50 -737,798,187.23 (I) Total comprehensive income – – – – – -315,079,816.60 -315,079,816.60 (II) Contributions from and reduction of capital by shareholders 71.50 -1,475.21 179,529.81 73,460,710.83 – – -73,282,584.73 1. Capital contributed by holders of other equity instruments 71.50 -1,475.21 21,319.08 – – – 19,915.37 2. Amounts included in owners’ equity from share-based payments – – 158,210.73 – – – 158,210.73 3. Share repurchases – – – 73,460,710.83 – – -73,460,710.83 (III) Profit distribution – – – – – -349,435,785.90 -349,435,785.90 1. Distributions to shareholders – – – – – -349,435,785.90 -349,435,785.90 III. Balance at the end of the year 585,720,129.75 491,719,779.00 10,706,357,361.73 375,317,318.30 293,915,529.38 1,120,077,984.11 12,822,473,465.67
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48 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 RMB For the six months ended 30 June 2025 Items Share capital Other equity instruments Capital reserve Less: Treasury stock Surplus reserve Undistributed profit Total equity I. Balance at the end of last year 585,729,891.25 491,724,696.36 10,700,692,654.16 229,499,392.17 293,915,529.38 1,702,290,170.31 13,544,853,549.29 II. Balance at the beginning of the current period 585,729,891.25 491,724,696.36 10,700,692,654.16 229,499,392.17 293,915,529.38 1,702,290,170.31 13,544,853,549.29 III. Total changes during the current period 143.50 -2,950.41 4,627,678.90 76,689,035.30 – -20,711,947.78 -92,776,111.09 (I) Total comprehensive income – – – – – -20,711,947.78 -20,711,947.78 (II) Contributions from and reduction of capital by shareholders 143.50 -2,950.41 4,627,678.90 76,689,035.30 – – -72,064,163.31 1. Capital contributed by holders of other equity instruments 143.50 -2,950.41 32,054.80 – – – 29,247.89 2. Amounts included in owners’ equity from share-based payments – – 4,595,624.10 -1,855,280.00 – – 6,450,904.10 3. Share repurchases – – – 78,544,315.30 – – -78,544,315.30 (III) Profit distribution – – – – – – – IV. Balance at the end of the current period 585,730,034.75 491,721,745.95 10,705,320,333.06 306,188,427.47 293,915,529.38 1,681,578,222.53 13,452,077,438.20
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49 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Notes to the Financial Statements (I) CORPORATE INFORMATION 1. Company Overview Flat Glass Group Co., Ltd. (the “Company”) was established on 24 June 1998 with its registered address at 1999 Yunhe Road, Xiuzhou District, Jiaxing, Zhejiang Province. On 29 December 2005, the Company was converted into a joint stock limited liability company and changed its name to Zhejiang Flat Glass & Mirror Co., Ltd.* (ʮ̡). On 23 March 2011, the Company was renamed as Flat Solar Glass Group Co., Ltd.* (ࠢ ʮ̡) and subsequently renamed as Flat Glass Group Co., Ltd.* (ᆨණྠ ʮ̡) on 10 October 2014. The principal activities of the Company and its subsidiaries (the “Group”) are the manufacturing and sales of glass products, the mining and sale of quartz ore for glass production, and the construction of solar photovoltaic power stations as well as the sale of electricity. (II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS Basis of preparation The Group has implemented the Accounting Standards for Business Enterprises and other relevant regulations issued by the Ministry of Finance (hereinafter referred to as the “CASBE”) and has also disclosed relevant financial information in accordance with the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 – General Provisions on Financial Reporting (revised in 2023). In addition, the financial statements also include disclosures required by the Companies Ordinance and the Listing Rules of the Stock Exchange of Hong Kong. Going concern The Group has assessed the ability to continue as a going concern for a 12-month period since 30 June 2026 and is not aware of any events or conditions that may cast significant doubt upon the ability to continue as a going concern. So the financial statements have been prepared on a going concern basis. * for identification purpose only
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50 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Basis of accounting and principle of measurement The Group has adopted accrual basis for accounting measurement. Except some financial instruments are measured at fair value, the financial statements are based on historical cost. If the assets are impaired, corresponding provisions for impairment shall be made according to relevant regulations. Under the historical cost convention, assets are measured at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition. Liabilities are measured according to the amount of payment or assets actually received due to the assumption of current obligations, or the contract amount of the current obligation, or in accordance with the amount of cash or cash equivalents expected to be paid in daily activities to meet liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using valuation technique. Fair value measured and disclosed in the financial statements are determined according to the above basis. For financial assets that are initially recognized at fair value based on transaction price and subsequently measured at fair value using valuation techniques involving unobservable inputs, the valuation technique is calibrated in the valuation process to ensure that the initial recognition result determined by the valuation technique is equal to the transaction price. The fair value measurement is divided into three levels based on the observability of the inputs of the fair value and the importance of the inputs to the fair value measurement as a whole: • Level 1 inputs are the unadjusted quoted prices of the same assets or liabilities in the active market that can be obtained on the measurement date. • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for the relevant asset or liability.
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51 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES The Group has established specific accounting policies and estimates based on the actual characteristics of its production and operation, focusing on the methods and criteria for determining materiality standards, revenue recognition, depreciation of fixed assets, and amortization of intangible assets, among other matters. The detailed disclosures are as follows. The significant judgments and accounting estimates, along with their key assumptions, applied by the Group in confirming its important accounting policies. 1. Statement of Compliance with CASBE The financial statements of the Company have been prepared in accordance with the CASBE, and present truly and completely the consolidated and the Company’s financial position as at 30 June 2026 and the consolidated and the Company’s results of operations, the consolidated and the Company’s changes in shareholders’ equity and the consolidated and the Company’s cash flows in the first half of 2026. 2. Accounting Period The accounting year of the Group is the calendar year, i.e. from 1 January to 31 December of each year. 3. Operating Cycle Operating cycle refers to the period from the purchase of assets used for processing to the realisation of cash or cash equivalents. The Group’s operating cycle usually takes approximately 12 months. 4. Functional Currency Renminbi (“RMB”) is the currency in the primary economic environment in which the Company and its subsidiaries other than the Vietnam and Indonesia operate, The Company and its subsidiaries other than the Vietnam and Indonesia subsidiary use RMB as their functional currency. The Company’s Vietnam subsidiary determines VND as its functional currency based on the currency in the primary economic environment in which it operates. The Company’s Indonesia subsidiary determines IDR as its functional currency based on the currency in the primary economic environment in which it operates. The currency used by the Company in preparing the financial statements is RMB.
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52 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 5. Significant Criteria Determination Method and Selection Basis Items Standards on materiality Major construction in progress The budget for an individual project is more than RMB100 million Significant trade payables with ageing over 1 year The amount for trade payables ageing over 1 year and more than RMB100 million Major debt investment The amount for an individual debt investment is more than RMB100 million Major other debt investment The amount for an individual other equity investment is more than RMB100 million 6. Accounting Treatment Methods of Business Combinations Involving Enterprises under Common Control and Business Combinations not Involving Enterprises under Common Control Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. For transactions not under common control, the acquirer will consider whether to adopt the simplified judgment method of “concentration test” when judging whether the acquired combination constitute a business. If the combination passes the concentration test, it does not constitute a business. If the combination fails the concentration test, the judgment shall be made according to business conditions. 6.1 Business combinations involving enterprises under common control A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. Assets and liabilities acquired in a business combination are measured at their carrying amount of the combined party at the combination date. The difference between the carrying amount of the net assets acquired by the combining party and the carrying amount of the consideration paid for the combination (or the aggregate face value of the shares issued) is adjusted to share premium under capital reserve, if the share capital premium is insufficient to offset the difference, the retained earnings will be adjusted. The costs that are directly attributable to the business combination are charged to profit or loss in the period in which they are incurred.
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53 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 6.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties both before and after the combination. The cost of combination is measured at the aggregate of the fair values, at the acquisition date, of assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer in exchange for control of the acquiree. The intermediary fees incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other related administrative expenses attributable to the business combination are charged to profit or loss in the period in which they are incurred. The identifiable assets, liabilities and contingent liabilities of the acquiree that meet the recognition conditions acquired by the acquirer in a business combination, are measured at their fair values at the acquisition date. Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as an asset as goodwill and is initially measured at cost. Where the cost of combination is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets acquired in the combination, the difference is recognised in profit or loss. Goodwill occurred as a result of combination shall be recognised separately in the consolidated financial statements and measured at cost less accumulated impairment provision.
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54 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 7. Criterion of Control and Preparation of Consolidated Financial Statements 7.1 Criterion of control Control refers to the power that the investor has over the investee; it means that the investor enjoys variable returns by taking part in the relevant activities of the investee and is capable of using its power over the investee to influence the amount of return. In case of changes in the relevant elements involved in the aforesaid definition of control as a result of the changes in facts and circumstance, the Group will conduct re-assessment. 7.2 Preparation of Consolidated Financial Statements The scope of consolidation for the consolidated financial statements is determined based on control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. For a subsidiary disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
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55 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control or the party being absorbed under merger by absorption are included in the Group’s scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest reporting period or from the date when they first came under the common control of the ultimate controlling party are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. The significant accounting policies and accounting periods adopted by the subsidiaries are determined in accordance with the Company’s unified accounting policies and accounting periods. The impact of internal transactions between the Company and its subsidiaries and among the subsidiaries on the consolidated financial statements is eliminated on consolidation. The portion of a subsidiary’s equity that is not attributable to the Company is treated as minority interests and presented as “minority interests” under shareholders’ equity in the consolidated balance sheet. The portion of a subsidiary’s net profit or loss for the period attributable to minority interests is presented as “profit or loss attributable to minority interests” under net profit in the consolidated income statement. When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’ portion in the opening balance of owners’ equity of the subsidiary, the balance is still allocated against minority interests. For transactions involving the acquisition of a non-controlling interest in a subsidiary, they shall be accounted for as equity transactions. The carrying amounts of the equity attributable to owners of the parent and non-controlling interests shall be adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount of the adjustment to non-controlling interests and the fair value of the consideration paid shall be adjusted against capital reserve (capital surplus); if the capital reserve is insufficient to absorb the difference, the remaining amount shall be adjusted against retained earnings.
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56 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 8. Classification of Joint Arrangements and Accounting Treatment Methods for Joint Operations Joint arrangements are classified into either joint operations or joint ventures. Such classification is determined based on the rights and obligations of the parties to the joint arrangement by considering the structure, legal form and contractual terms of the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets relating to the arrangement and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Group recognizes its share of jointly held assets pursuant to the joint operation arrangement, as well as assets that are held solely by the Group; recognizes its share of jointly assumed liabilities pursuant to the joint operation arrangement, as well as liabilities that are borne solely by the Group; recognizes revenue from the sale of its share of the output arising from the joint operation; recognizes its share of revenue from the sale of the output by the joint operation; recognizes expenses that are incurred solely by the Group, as well as its share of expenses incurred by the joint operation. The Group accounts for and recognizes assets, liabilities, revenues and expenses relating to the joint operation in accordance with the provisions applicable to the specific assets, liabilities, revenues and expenses. 9. Recognition Criteria of Cash and Cash Equivalents Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term (generally means due within three months from the date of purchase), highly liquid investments held by the Group that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 10. Translation of Foreign Currency Business and Financial Statements Denominated in Foreign Currency 10.1 Foreign currency business Foreign currency transactions are translated at the spot exchange rate on the date of transaction at initial recognition.
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57 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. The exchange difference between the spot exchange rate on that date and the spot exchange rate on the initial recognition date or the previous balance sheet date shall be included in the current profit and loss. Foreign non-monetary items measured at historical cost are still measured in the functional currency at the exchange rate on the transaction date. Foreign non- monetary items measured at fair value are translated at the exchange rate on the date when the fair value is determined. The difference between the translated functional currency amount and the original functional currency amount is treated as a fair value change (including exchange rate fluctuations) and is recognized in profit or loss for the period or as other comprehensive income. 10.2 Translation of foreign currency financial statements For the purpose of preparing the consolidated financial statements, the foreign currency financial statements of overseas operations are translated into RMB financial statements using the following method: all assets and liabilities in the balance sheet are translated at the spot exchange rate at the balance sheet date; equity items converted at the spot exchange rate at the time of occurrence; all items in the income statement and items reflecting the amount of profit distribution are translated at the exchange rates approximating the foreign exchange rates ruling at the dates of the transactions; the difference between assets and the sum of liabilities and shareholders’ equity after translation is recognised in other comprehensive income and included in shareholders’ equity. Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated at an exchange rate which approximates the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash and cash equivalents is regarded as a reconciliation item and presented separately in the statement of cash flows as “effect of exchange rate changes on cash and cash equivalents”. The opening balances and the actual figures of prior year are presented at the translated amounts in the prior year’s financial statements.
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58 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11. Financial Instruments The Group recognises a financial asset or a financial liability when it becomes a party to a financial instrument contract. Where financial assets are purchased or sold in a regular way, assets to be received and liabilities to be borne are recognised on the date of transaction, or assets sold are derecognised on the date of transaction. Financial assets and financial liabilities are initially measured at fair value (for the determination method of the fair value of financial assets and financial liabilities, see the relevant disclosures of the accounting basis and cost principles in Note II). For financial assets and financial liabilities at fair value through profit or loss, the related transaction costs are directly recognised in profit or loss in the period in which they are incurred. For other categories of financial assets and financial liabilities, the related transaction costs are included in the initially recognised amount. When the Group initially recognises receivables that do not contain a significant financing component or do not consider the financing component in a contract not exceeding one year in accordance with the Accounting Standards for Business Enterprises No. 14 – Revenue (the “Revenue Standard”), the Group initially measures the receivables at the transaction price as defined in the Revenue Standard. Effective interest rate method is the method that is used in the calculation of the amortised cost of a financial asset or a financial liability and in the allocation and recognition of the interest revenue or interest expense in profit or loss over the relevant period. The effective interest rate is the rate that discounts estimated future cash flows through the expected duration of a financial asset or a financial liability to the carrying amount of the financial asset or to the amortised cost of the financial liability. In determining the effective interest rate, the expected cash flow is estimated on the basis of all contractual terms of the financial asset or financial liability (such as early repayment, extension, call options or other similar options, etc.) without taking into account the expected credit loss.
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59 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. The amortised cost of a financial asset or a financial liability is the amount initially recognised for a financial asset or a financial liability net of principal repaid, plus or less the cumulative amortised amount arising from amortisation of the difference between the amount initially recognised and the amount at the maturity date using the effective interest method, net of cumulative loss allowance (only applicable to financial assets). 11.1 Classification, recognition and measurement of financial assets Subsequent to initial recognition, the Group’s financial assets of various categories are subsequently measured at amortised cost, fair value through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”). If the contractual terms of the financial asset stipulate that the cash flows generated on a specific date are solely payments of the principal and the interest on the principal amount outstanding and the financial asset is managed by the Group in a business model aimed at collecting contractual cash flows, the Group shall classify the financial asset into the financial asset measured at amortised cost. Such financial assets mainly include cash and bank balances, bills receivable and receivables, other receivables, bank certificates of deposit in other current assets and debt investment, etc. If the contractual terms of the financial asset stipulate that the cash flows generated on a specific date are solely payments of the principal and the interest on the principal amount outstanding and the financial asset is managed by the Group in a business model aimed at both collecting contractual cash flows and selling such financial assets, the Group shall classify the financial asset into the financial asset at FVTOCI. Such financial assets with a term exceeding one year from the date of acquisition are classified as other debt investments. These financial assets were classified as bills receivable at fair value through other comprehensive income when obtaining, and presented under receivables financing.
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60 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The Group’s purpose of holding the financial assets is for trading if one of the following conditions is satisfied: • The purpose of acquiring the financial assets is to sell the assets in the near future. • The relevant financial assets are part of a portfolio of identified financial instruments that are centrally managed on initial recognition, and there is objective evidence of actually a recent short-term profit-taking model. • The relevant financial assets are derivatives, except for derivatives defined under financial guarantee contracts and derivatives designated as effective hedging instruments. Financial assets at FVTPL include financial assets classified as at FVTPL and financial assets designated as at FVTPL. • Financial assets that do not meet the classification criteria for financial assets at amortised cost or financial assets at FVTOCI are classified as financial assets at FVTPL. • On initial recognition, the Group may irrevocably designate a financial asset as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. Except for derivative financial assets, financial assets at FVTPL are presented as held-for-trading financial assets.
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61 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 11.1.1 Financial assets measured at amortised cost Financial asset at amortised cost is subsequently measured at amortised cost using the effective interest method. Gains or losses arising from derecognition or impairment are recognised in profit or loss. The Group recognises interest income on financial assets measured at amortised cost using the effective interest method. For purchased or originated financial assets without credit impairment but with credit impairment incurred in subsequent periods, the Group calculates and determines its interest income based on amortised cost of the financial asset and the effective interest rate in subsequent periods. If the credit risk of the financial instrument improves in subsequent periods and the financial instrument is no longer credit impaired and the improvement can be linked to an event occurring after the application of the above requirements, the Group will determine the interest income based on the effective interest rate multiplied by the carrying amount of the financial assets. 11.1.2 Financial assets classified as at FVTOCI Except for impairment losses or gains related to financial assets at FVTOCI, interest income calculated using the effective interest method and exchange gains and losses are recognised in profit or loss, changes in fair value of the financial assets are recognised in other comprehensive income. The amount of the financial assets included in profit or loss for each period shall be equal to the amount deemed as measured at amortised cost and included in profit or loss for each period. Upon derecognition of the financial assets, cumulative gains or losses previously recognised in other comprehensive income are transferred and reclassified into profit or loss for the period. 11.1.3 Financial assets at FVTPL Financial assets at FVTPL shall be subsequently measured at fair value. Gains or losses from change in fair value and dividends and interest income related to such financial assets shall be recognised in profit or loss.
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62 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11.2 Impairment of financial instruments The Group performs impairment accounting for financial assets measured at amortised cost and financial assets at FVTOCI based on expected credit losses (“ECL”) and recognises loss allowance. The Group measures the loss reserves of all commercial acceptance, bills receivable and trade receivable formed due to the income standard in accordance with the amount equivalent to lifetime ECL. For other financial instruments, at each balance sheet date, the Group assesses changes in credit risk of relevant financial instruments since initial recognition. If the credit risk on the financial instrument has increased significantly since initial recognition, the Group measures its loss allowance at an amount equal to lifetime ECL of the financial instrument. If the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance at an amount equal to next 12-month ECL of the financial instrument. Except for financial assets measured at FVTOCI, the increased or reversed amount of credit loss provision shall be included in profit and loss for the period as impairment loss or gain. The Group recognises credit loss provision for financial assets at FVTOCI in other comprehensive income and recognises loss/gain on impairment in profit or loss for the period, without reducing the carrying amount of the financial assets presented in the balance sheet. The Group measured loss allowance at an amount equal to the lifetime ECL of the financial instruments in the previous accounting period. However, as at the balance sheet date for the current period, for the above financial instruments, due to failure to qualify as significant increase in credit risk since initial recognition, the Group measures loss allowance for the financial instrument at an amount equal to next 12-month ECL at the balance sheet date for the current period, and the relevant reversal amount of loss allowance is included in profit or loss for the current period as an impairment gain.
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63 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 11.2.1 Significant increase in credit risk The Group uses reasonable and supportable forward-looking information that is available to determine whether the credit risk of a financial instrument has increased significantly since initial recognition by comparing the risk of a default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date of initial recognition. The Group will take the following factors into consideration when assessing whether the credit risk has significantly increased: (1) Whether the external market indicators of credit risk for the same financial instrument or similar financial instruments with same expected life have changed significantly. These indicators include: the duration and extent to which the fair value of financial assets is less than their amortized cost, and other market information related to the borrower (such as changes in the prices of the borrower’s debt or equity instruments). (2) Whether the debtor’s internal credit rating is actually lowered or is expected to be lowered. (3) Adverse changes in business, financial or economic conditions that are expected to cause a significant change to the debtor’s ability to meet its debt obligations. (4) Whether the actual or expected operating results of the debtor has changed significantly. (5) Whether the regulatory, economic or technological environment in which the debtor is located has undergone significant adverse changes.
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64 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 As at the balance sheet date, if the Group judges that the financial instrument solely has lower credit risk, the Group will assume that the credit risk of the financial instrument has not significantly increased since initial recognition. If the default risk of a financial instrument is low, and the borrower is highly capable of meeting its contract cash flow obligations in short term, the financial instrument is considered to have a lower credit risk even if there is a negative change in the economic situation and operating environment over a longer period of time, but it may not necessarily reduce the borrower’s performance of its contract cash obligations. 11.2.2 Credit impaired financial assets A financial asset is credit impaired when one or more events that have an adverse impact on the estimated future cash flows of the financial asset occurred. Evidence that a financial asset is credit impaired includes the following observable information: (1) Significant financial difficulty of the issuer or the debtor; (2) The debtor breaches the contract, such as default or overdue on interest or principal payment; (3) The creditor, for economic or contractual reasons relating to the financial difficulties of the debtor, granted to the debtor a concession that the creditor would not otherwise consider; (4) The debtor is likely to enter bankruptcy or other financial reorganisation; (5) The active market for the financial asset disappeared due to the financial difficulties of the issuer or the debtor. Based on the Group’s internal credit risk management, the Group considers an event of default occurs when information proposed internally or obtained externally indicates that the debtor of the financial instrument is unable to pay its creditors (including the Group) in full (without taking into account any guarantees obtained by the Group).
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65 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 11.2.3 Determination of ECL The Group determines ECL of relevant financial instruments according to the following methods: • For financial assets, the credit loss shall be the present value of the difference between the contractual cash flow to be received by the Group and the expected cash flow to be received. • As for the financial assets with credit impairment occurred on the balance sheet date but not purchased or generated, the credit loss is the difference between the book balance of the financial assets and the present value of the estimated future cash flow discounted at the original effective interest rate. The factors reflected in the Group’s methods of measuring ECL of financial instruments include: the unbiased probability weighted average amount determined by evaluating a series of possible results; the time value of money; the reasonable and supportable information about past events, current situation and future economic situation forecast that is available without undue costs or efforts on the balance sheet date. 11.2.4 Write-down of financial assets When the Group no longer reasonably expects that the contractual cash flow of the financial assets can be recovered in whole or in part, the book balance of the financial assets shall be written down directly. Such write down constitutes derecognition of related financial assets.
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66 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11.3 Transfer of financial assets A financial asset is derecognised when one of the following conditions is met: (1) the contractual rights to receive the cash flows from the financial asset expire; (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset has been transferred to the transferee; or (3) the financial asset has been transferred, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, it does not retain control over the financial asset. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it retains control of the financial asset, it recognises the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises the related liability accordingly. The Group measures the related liabilities in the following ways: • If the transferred financial asset is measured at amortised cost, the carrying amount of the related liability is the carrying amount of the continuing involvement in the transferred financial asset less the amortised cost of the rights retained by the Group (if the Group retains the rights due to the transfer of the financial asset) plus the amortised cost of the obligations assumed by the Group (if the Group assumes the obligations due to the transfer of the financial asset), and the related liability is not designated as financial liability at FVTPL. • If the transferred financial asset is measured at fair value, the carrying amount of the related liability is the carrying amount of the continuing involvement in the transferred financial asset less the fair value of the rights retained by the Group (if the Group retains the rights due to the transfer of the financial asset) plus the fair value of the obligations assumed by the Group (if the Group assumes the obligations due to the transfer of the financial asset), the fair value of the rights and the obligations shall be the fair value at the time of measurement on an independent basis.
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67 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between the carrying amount of the financial asset transferred on the date of derecognition and the sum of the consideration received from the transfer and any cumulative gain or loss that has been previously recognised in other comprehensive income is recognised in profit or loss for the period. While regarding non-trading equity instrument investment designated as at FVTOCI by the Group, cumulative gains or losses previously recognised in other comprehensive income are transferred and included in retained earnings. If part of the transferred financial asset satisfies the derecognition criteria, the carrying amount of the financial asset as a whole is allocated between the part that is derecognised and the part that continues to be recognised, based on the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part derecognised and the sum of the consideration received for the part derecognised and any cumulative gain or loss allocated to the part derecognised that has been previously recognised in other comprehensive income is recognised in profit or loss. If the transferred financial asset is the non-trading equity instrument investment designated as at FVTOCI, cumulative gain or loss that has been recognised in other comprehensive income should be removed from other comprehensive income but be recognised in retained earnings. For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria, the Group will continuously recognise the transferred financial asset in its entirety. Considerations received should be recognised as a financial liability.
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68 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11.4 Classification and measurement of financial liabilities and equity instruments Financial instruments or their constituent parts issued by the Group are classified into financial liabilities or equity instruments on initial recognition on the basis of the substance of the contractual terms and the economic nature but not only its legal form, together with the definition of financial liabilities and equity instruments. 11.4.1 Classification, recognition and measurement of financial liabilities Upon initial recognition, financial liabilities are classified into financial liabilities at FVTPL and other financial liabilities. 11.4.1.1 Financial liabilities at FVTPL Financial liabilities at fair value through profit and loss include held-for-trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as at FVTPL. In addition to the derivative financial liabilities listed separately, financial liabilities at FVTPL are listed as transactional financial liabilities. The Group’s purpose of undertaking the financial liabilities is for trading if one of the following conditions is satisfied: • The purpose of undertaking relevant financial liabilities is mainly for the recent repurchase. • The relevant financial liabilities are part of a portfolio of identified financial instruments that are centrally managed on initial recognition, and there is objective evidence of actually a recent short-term profit-taking model. • The relevant financial liabilities are derivatives, except for derivatives defined under financial guarantee contracts and derivatives designated as effective hedging instruments.
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69 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. The Group may designate, on initial recognition, a financial liability as at FVTPL if one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces an accounting mismatch; (2) manage and evaluate the financial liability portfolio or the portfolio of financial assets and financial liabilities at fair value based on the risk management or investment strategy as stated in the official written documents of the Group, and report to key management of the Group internally; or (3) a qualified hybrid contract containing embedded derivatives. Held-for-trading financial liabilities are subsequently measured at fair value, and any gains or losses arising from changes in fair value and dividends or interest expenses paid on the financial liabilities are recognised in profit or loss for the period. For financial liabilities designated at fair value through profit or loss, changes in the fair value of such financial liabilities arising from changes in the Group’s own credit risk are recognised in other comprehensive income and changes in other fair values are recognised in profit or loss in the current period. On de-recognition of the financial liability, the cumulative change in fair value attributable to changes in own credit risk previously recognised in other comprehensive income is transferred to retained earnings. Dividends or interest expenses related to these financial liabilities are recognised in profit or loss for the period. If the treatment of the effects of changes in the own credit risk of such financial liabilities as described above would cause or enlarge an accounting mismatch in profit or loss, the Group recognises the entire gain or loss on such financial liabilities (including the amount of the effect of changes in own credit risk) in profit or loss for the period.
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70 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11.4.1.2 Other financial liabilities Other financial liabilities other than financial liabilities arising from the transfer of financial assets that do not qualify for derecognition or continuing involvement in the transferred financial assets and financial guarantee contracts are classified as financial liabilities at amortised cost and subsequently measured at amortised cost, with gains or losses arising from derecognition or amortisation recognised in profit or loss for the period. When the Group and a counterparty modify or renegotiate a contract that does not result in derecognition of a financial liability subsequently measured at amortised cost but result in changes in contractual cash flows, the Group recalculates the carrying amount of the financial liability and recognises any related gains or losses in profit or loss for the period. In recalculating the financial liability, the Group determines the carrying amount of the renegotiated or modified contractual cash flows at the present value discounted at the original effective interest rate of the financial liability. For all costs or expenses incurred in connection with the modification or renegotiation of a contract, the Group adjusts the modified carrying amount of the financial liability and amortises it over the remaining period of the modified financial liability. 11.4.2 Derecognition of financial liabilities The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. Where an agreement between the Group as borrower and lender is signed to replace the original financial liability and the contractual terms of the new financial liability and the original financial liability are substantially different, the Group derecognised the original financial liability and recognised the new financial liability. On derecognition of a financial liability in its entirety or partially, the difference between the carrying amount of the part derecognised and the consideration paid (including any non-cash asset transferred or new financial liability assumed) is recognised in profit or loss for the period.
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71 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 11.4.3 Equity instruments Equity instruments are any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued (including refinancing), repurchased, sold or cancelled by the Group are treated as changes in equity. Changes in fair value of equity instruments is not recognised by the Group. Transaction costs related to equity transactions are deducted from equity. The Group recognises the distribution to holders of the equity instruments as profit distribution, dividends paid do not affect total amount of shareholders’ equity. 11.5 Derivative instruments and embedded derivatives Derivative instruments including forward foreign exchange contracts, foreign exchange swap contract, interest rate swap contracts and foreign exchange option contract, etc. Derivatives are initially measured at fair value on the signing dates of the relevant contracts and subsequently measured at fair value. For a hybrid contract containing embedded derivatives and a host contract, if the host contract belongs to a financial asset, the Group will not separate the embedded derivatives from the hybrid contract, but will apply the requirements of accounting standards on the classification of financial assets to the hybrid contract as a whole. 11.6 Offsetting financial assets and financial liabilities Financial assets and financial liabilities are offset and the net amount is presented in balance sheet when the Group has a legally enforceable right to set off the recognised financial assets and financial liabilities, and the Group intends to settle with net amount, or realise the financial asset and settle the financial liability simultaneously. Otherwise, the financial assets and financial liabilities will be presented separately in balance sheet and will not be mutually set off.
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72 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 11.7 Convertible bonds The convertible bonds issued by the Group which contain liabilities and conversion options, shall be split upon initial recognition and recognised separately. Of which, conversion options for settlement of fixed amount of cash or other financial assets in exchange for fixed amount of self-equity instruments is accounted for as equity instruments. On initial recognition, the fair value of the liability portion is determined at current market prices similar to those of bonds without conversion options. The difference between the overall issue price of convertible bonds and the fair value of the liability portion shall be taken as the value of the conversion options of the bondholders to convert the bonds into equity instruments and recorded in other equity instruments. In the subsequent measurement, the liability portion of convertible bonds are measured at amortised cost using the effective interest rate method. The value of the conversion option divided into equity instruments continues to be retained in the equity instruments. No loss or gain is incurred when a convertible bond expires or is converted. The transaction costs incurred in issuing convertible bonds shall be apportioned between the liability component and the equity component according to their respective fair value. Transaction costs related to the equity component are directly recorded in the equity instruments; transaction costs related to the liability component are recorded in the carrying amount of the liability and amortised over the term of the convertible bonds using the effective interest rate method.
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73 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 12. Bills receivable 12.1 Portfolio category and determination method of provisions for bad debt assessed collectively by credit risk characteristics The Group classifies bills receivable into different groups based on common credit risk characteristics: Category Determination basis Low risk Bank acceptance bills portfolio commercial acceptance bills portfolio issued by a related party Normal Other bills receivable portfolio except low-risk category The common credit risk characteristics adopted by the Group include the credit ratings of the accepting banks, the credit risk ratings of the debtors, and the delinquency status, etc. 13. Trade receivables 13.1 Portfolio category and determination method of provisions for bad debt assessed collectively by credit risk characteristics The Group divides the trade receivables into low risk, normal and concerned based on common risk characteristics. The common credit risk characteristics adopted by the Group include: historical bad debt records, instances of default or delayed payments, the credit history of relevant customers; etc. The Group uses an impairment matrix to determine the credit losses for each portfolio. The aging of accounts receivable is calculated from the date of revenue recognition. 13.2 Judgment standard of provisions for bad debt assessed individually The Group classifies those accounts receivable for which there is objective evidence indicating that the amounts will not be collected in accordance with the original terms as impaired and assesses the credit risk individually to determine the credit losses.
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74 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 14. Financing receivables 14.1 Portfolio category and determination method of provisions for bad debt assessed collectively by credit risk characteristics The Group divides the trade receivables based on common risk characteristics. The common credit risk characteristics adopted by the Group include credit rating of accepting bank, overdue status, etc. 15. Other receivables 15.1 Judgment standard of provisions for bad debt assessed individually The expected credit losses of other receivables are determined based on individual assets. 16. Inventories 16.1 Classification of inventories, pricing delivered, inventory system, amortization method for low-value consumables 16.1.1 Classification of inventories The Group’s inventories mainly include raw materials, low-value consumables, works in progress and finished goods, etc. Inventories are initially measured at cost, which comprises purchase costs, processing costs and other expenses incurred in bringing the inventories to their current location and condition. 16.1.2 Pricing of inventories delivered The actual cost of inventories upon delivery is calculated using the weighted average method. 16.1.3 Inventory system The inventory system is a perpetual inventory system.
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75 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 16.1.4 Amortisation of low-value consumables Low-value consumables are amortised using one-off write-off method. 16.2 Determination and provision for impairment of inventories At the balance sheet date, inventories are measured at the lower of cost and net realisable value. If the net realisable value is below the cost of inventories, a provision for impairment of inventories is made. Net realisable value is the estimated selling price of inventories in the ordinary course of business less the estimated costs to completion, estimated selling expenses and related taxes. Net realisable value of inventories is determined on the basis of clear evidence obtained, taking into account the purpose of holding inventories and the effect of events after the balance sheet date. Provision for impairment of inventories is made based on the excess of cost over net realisable value of individual inventory item. After the provision for impairment of inventories is made, if the circumstances that previously caused inventories to be written-off no longer exist so that the net realisable value of inventories is higher than their carrying amount, the original provision for impairment of inventories is reversed and the reversed amount is recognised in profit or loss for the period.
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76 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 17. Long-term Equity Investments 17.1 Basis of determination of joint control and significant influence Joint control is the agreed sharing of control over an arrangement, such that decisions about the relevant activities of that arrangement require the unanimous consent of the parties sharing control. Significant influence refers to the power to participate in the decision-making of the financial and operational policies of the investee, but cannot control or jointly control the formulation of these policies with other parties. In determining whether it is possible to exercise control over or exert significant influence over the invested entities, it has taken into account the potential voting right factors such as the current convertible bonds and the current executable warrants of the invested entities held by the investor and other parties. 17.2 Determination of initial investment cost For a long-term equity investment acquired through a business combination involving enterprises under common control, the initial investment cost is the attributable share of the carrying amount of the owners’ equity of the acquiree in the consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the initial investment cost of a long-term equity investment and the carrying amount of cash paid, non-cash assets transferred and liabilities assumed is adjusted to capital reserve. If the capital reserve is insufficient to offset the difference, the retained earnings shall be adjusted. For a long-term equity investment acquired through a business combination not involving enterprises under common control, the initial investment cost is the combination cost at the date of acquisition. The intermediary expenses incurred by the acquirer or purchaser in respect of auditing, legal services, valuation and consultancy services, etc. and other related administrative expenses attributable to the business combination are recognised in profit or loss in the period in which they are incurred. The long-term equity investment acquired other than through a business combination is initially measured at its cost.
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77 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 17.3 Subsequent measurement and recognition of profit or loss 17.3.1 Long-term equity investments accounted for using the cost method Long-term equity investments in subsidiaries are accounted for using the cost method in the financial statements of the Company. A subsidiary is an investee that is controlled by the Group. Long-term equity investments accounted for using the cost method are measured at initial investment cost. When additional investment is made or the investment is recouped, the cost of the long-term equity investment is adjusted accordingly. The current investment income is recognised in accordance with the cash dividends or profit distributions declared by the investee. 17.3.2 Long-term equity investment accounted for by equity method The Group’s investments in associates and joint ventures are accounted for using the equity method. An associate is an investee over which the Group has significant influence. A joint venture is a joint arrangement whereby the Group has rights to the net assets of the arrangement. When adopting equity method accounting, the initial investment cost of the long-term equity investment shall not be adjusted for the initial investment cost of a long-term equity investment is greater than the share of the fair value of the investee’s identifiable net assets that shall be enjoyed according to investment; the difference shall be included in the current period’s profit and loss, and the cost of the long-term equity investment shall be adjusted at the same time for the initial investment cost is less than the share of the fair value of the investee’s identifiable net assets that shall be enjoyed with the investment.
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78 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 When adopting equity method accounting, the investment income and other comprehensive income shall be recognised separately according to the share of net profit or loss and other comprehensive income realised by the invested entity, and the carrying amount of long-term equity investment shall be adjusted at the same time; the carrying amount of long-term equity investment shall be reduced accordingly by calculating the portion to be enjoyed according to the profit or cash dividend declared by the invested entity; the carrying amount of long-term equity investment shall be adjusted and included in the capital reserve for other changes in the owner’s rights and interests of the invested entity except net profit or loss, other comprehensive income and profit distribution. When recognising the share of the net profit or loss of the invested entity, the net profit of the invested entity shall be adjusted and recognised on the basis of the fair value of the identifiable assets of the invested entity at the acquisition date. For transactions between the Group and associates, joint ventures, the assets invested or sold do not constitute business, and the unrealised gains and losses of internal transactions are offset by the shareholding attributable to the Group. On this basis, the investment gains and losses are recognised. However, the unrealised internal transaction losses between the Group and the invested entity shall not be offset if they belong to the impairment losses of the transferred assets. The Group discontinues recognising its share of net losses of the invested entity after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the invested entity is reduced to zero. In addition, if the Group has incurred obligations to assume additional losses of the invested entity, estimated liability is recognised according to the expected obligation, and recorded as investment loss for the period. Where net profits are subsequently made by the invested entity, the Group resumes recognising its share of those profits only after its share of the profits exceeds the share of losses previously not recognised.
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79 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 17.4 Disposal of long-term equity investments On disposal of a long-term equity investment, the difference between the carrying amount and the actual purchase price is recognised in profit or loss for the period. 18. Investment Properties Investment properties are properties held for the purpose of earning rentals or capital appreciation, or both. Investment properties include leased land use rights, land use rights held and prepared for transfer after appreciation, buildings leased out, etc. Investment properties are initially measured at cost. Subsequent expenditures related to an investment property shall be included in cost of investment property only when the economic benefits associated with the asset will likely flow to the Group and its cost can be measured reliably. All other subsequent expenditures on an investment property shall be included in profit or loss for the current year when incurred. The Group adopts the cost model for subsequent measurement of investment properties, and is depreciated using the straight-line method over their estimated useful lives. The depreciation methods, depreciation period, residual value rate and annual depreciation rate of each investment properties is as follows: Class Depreciation Method Depreciation Period (Years) Residual Value Rate (%) Annual Depreciation Rate (%) Houses and buildings Straight-line depreciation 20 5 4.75 Land use rights Straight-line depreciation 50 0 2.00 An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposals. When an investment property is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the property net of the carrying amount and related taxes is recognised in profit or loss for the period.
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80 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 19. Fixed Assets 19.1 Conditions of recognition Fixed assets are tangible assets that are held for use in the production of goods or supply of services, for rental to others, or for administrative purposes and have a useful life of more than one accounting year. A fixed asset is recognised only when the economic benefits associated with the asset are probable to flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset if it is probable that the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably, and the carrying amount of the replaced part is derecognised. Other subsequent expenditures other than the above are charged to profit or loss for the current period when incurred. 19.2 Depreciation methods Fixed assets are depreciated using the straight-line method over their estimated useful lives from the next month when they are available for intended use. The depreciation method, depreciation period, estimated residual value rates and annual depreciation rates of each class of fixed assets are as follows: Class Depreciation Method Depreciation Period (Years) Residual Value rate (%) Annual Depreciation Rate (%) Houses and buildings Straight-line depreciation 20–25 0–5 3.80–5.00 Machinery and equipment Straight-line depreciation 4–20 0–5 4.75–25.00 Transportation equipment Straight-line depreciation 4–15 0–5 6.33–25.00 Other equipment Straight-line depreciation 3–10 0–5 9.50–33.33
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81 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. 19.3 Other description If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognised. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognised in profit or loss for the period. The Group reviews the useful life, estimated net residual value of a fixed asset and the depreciation method applied at least at each financial year-end, and any change is accounted for as a change in accounting estimate. 20. Construction in Progress Construction in progress is measured at actual cost, which includes various construction expenditures incurred during the construction period, capitalised borrowing costs before the construction is ready for its intended use and other relevant costs. Construction in progress is not depreciated. Construction in progress is transferred to fixed asset while it is ready for its intended use. The standards and time points for various construction in progress carried forward to fixed assets are as follows: Class The standard and time point of carried forward to fixed assets Houses and buildings Time point of meeting the relevant construction acceptance standards Machinery and equipment, transportation equipment and other equipment Time point of meeting the design requirements or standards under the contract after installation and commissioning
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82 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 21. Borrowing Costs The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised when expenditures for the asset are being incurred, borrowing costs are being incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. The capitalisation of qualifying assets under construction or production ceases when the assets are ready for their intended use or sale. The remaining borrowing costs are recognised as expenses in the period in which they are incurred. Where funds are borrowed under a special borrowing, the amount to be capitalised is the actual interest expense incurred on that borrowing for the period less any interest income earned from depositing the unused borrowing funds into bank or any investment income on the temporary investment of those funds. Where funds are borrowed under a general borrowing, the amount capitalised is determined by applying the weighted average of the excess amounts of cumulative expenditures on the asset over the special borrowings multiplied by the capitalisation rate of the general borrowings used. The capitalisation rate is determined based on the weighted average interest rate of the general borrowings. During the capitalisation period, the exchange differences on special foreign currency borrowings are all capitalised; the exchange differences on general-purpose foreign currency borrowings are recognised in profit or loss for the period.
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83 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 22. Intangible Assets 22.1 Useful life and determination basis, estimate, amortization method or review procedure Intangible assets include software, pollutant discharge rights, mining rights, land use rights, energy consumption rights and maritime right of use, etc. The intangible assets shall be initially measured at cost. When an intangible asset with a finite useful life is available for use, its original cost less net residual value and any accumulated impairment losses is amortised over its estimated useful life using the straight-line method and production method. Intangible assets are not amortised while their useful lives are assessed to be indefinite. The amortisation method, useful life and estimated net residual value rate of each class of intangible assets are as follows: Class Amortisation method Useful life and determination basis (Years) Residual value rate (%) Land use rights Straight line method 40-50 years, legal right to use 0 Pollutant discharge rights Straight line method 3-20 years, estimated useful life 0 Mining rights Output method – 0 Software Straight line method 4-10 years, estimated useful life 0 Maritime right of use Straight line method 50 years, Legal right to use 0 Energy consumption rights Intangible assets with an indefinite useful life are not amortised At the end of the year, the useful life and amortisation method of intangible assets with finite useful lives are reviewed and adjusted if necessary.
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84 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 22.2 Collection scope and relevant accounting treatment of R & D expenses Expenditures incurred in the research stage are recognised in profit or loss for the period. Expenditures incurred in the development stage are recognised as intangible assets only when all of the following conditions are satisfied, and the expenditures in the development stage that does not meet all of the following conditions are recognised in profit or loss for the period: (1) The technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) The intention to complete the intangible asset and use or sell it; (3) The way in which the intangible asset generates economic benefits, including the ability to prove that there is a market for the product produced using the intangible asset or the intangible asset itself has a market, and prove its usefulness if the intangible asset will be used internally; (4) Adequate technical, financial and other resources to complete the development of the intangible asset and to use or sell the intangible asset; (5) The ability to measure reliably the expenditures attributable to the intangible asset during its development. If the expenditures cannot be distinguished between the research stage and development stage, the Group recognises all of them in profit or loss for the period. The cost of the intangible asset formed by internal development activities only includes the total expenditure incurred from the time when the capitalisation conditions are met to the time when the intangible asset reaches the intended purpose. The expenditures that have been expensed into profit and loss before the capitalisation conditions are met for the same intangible asset in the development process will not be adjusted. The scope of aggregation for R&D expenses includes the salaries, wages, and welfare expenses of personnel engaged in R&D activities, the consumption of materials in R&D activities, depreciation expenses of R&D equipment, and other related expenses.
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85 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 23. Impairment of Long-term Assets The Group assesses at each balance sheet date whether there is any indication that long-term equity investments, investment properties, fixed assets, construction in progress measured, right-of-use assets and intangible assets with finite useful lives may be impaired. If an impairment indication exists, the recoverable amount is estimated. Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired. The recoverable amount of an asset is estimated on an individual asset basis. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. The recoverable amount is the higher of an asset’s or asset group’s fair value less costs of disposal and the present value of the estimated future cash flows. If the recoverable amount of an asset is less than its carrying amount, a provision for impairment of the asset is made based on the difference and recognised in profit or loss for the period. An impairment loss once recognised shall not be reversed in a subsequent accounting period. 24. Long-term Deferred Expenses Long-term deferred expenses are expenses which have incurred but shall be amortised over the current period and subsequent periods of more than one year. Long-term deferred expenses are amortised evenly over the estimated benefit period. 25. Contract Liabilities A contract liability represents the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration from the customer. Contract assets and contract liabilities under common contract are presented on a net basis.
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86 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 26. Employee Compensation 26.1 Accounting for short-term employee compensation In the accounting period in which an employee has rendered services, the Group recognises the short-term employee compensation actually incurred as liabilities, and includes in profit or loss for the period or related asset costs. The employee benefits expenses incurred by the Group are recognised in profit or loss for the period or related asset costs based on the actual amount when actually incurred. The nonmonetary employee benefits expenses are measured at fair value. In determining the corresponding amount of employee compensation, social security contributions such as medical insurance, work injury insurance and maternity insurance and housing funds, as well as labour union running expenses and employee education expenses provided by the Group are calculated according to the prescribed provision bases and percentages during the accounting period in which the employees provide services to the Group, and the corresponding liabilities are recognised, and included in profit or loss for the period or related asset costs. 26.2 Accounting for post-employment benefits Post-employment benefits are all defined contribution plans. In the accounting period in which an employee has rendered service, the Group recognises the amount payable under the defined contribution plan as a liability, and includes in profit or loss for the period or related asset costs. 26.3 Accounting for termination benefits When the Group provides termination benefits to employees, employee compensation liabilities arising from termination benefits are recognised in profit or loss at the earlier of the following dates: when the Group cannot unilaterally withdraw the termination benefits provided because of an employee termination plan or a layoff proposal, or when the Group confirms the costs or expenses related to the restructuring involving the payment of dismiss benefits.
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87 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 27. Provisions Provisions are recognized when the Group has a present obligation relating to product quality assurance, mine geological environment protection and land reclamation, or other contingencies, and it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably. On the balance sheet date, provision shall be measured at the best estimate of the expenditure for settling the current obligation, taking into account the risk and uncertainty and time value of money and other factors related to the contingencies. Where the effect of the time value of money is material, the best estimate of the expenditure is determined by discounting the expected future cash outflows. 28. Share-based Payments The Group’s share-based payments are transactions in which equity instruments are granted to employees in exchange for services rendered by employees or for the assumption of liabilities based on equity instruments. The Group’s share-based payments are equity-settled share-based payments. 28.1 Equity settled share-based payments Equity-settled share-based payments to employees Equity-settled share-based payments to employees in exchange for services rendered by employees are measured at the fair value of the equity instruments granted to employees at the grant date. Such amount is recognised as related costs or expenses on a straight-line basis over the vesting period, based on the best estimate of the number of equity instruments expected to vest, with a corresponding increase in capital reserve. At each balance sheet date during the pending period, the Group, based on the latest subsequent information such as the latest update on the change in the number of entitled employees, makes best estimates to adjust the expected number of equity instruments that can be vested. The effect of the above estimate is included in relevant costs or expenses for the period and the capital reserve is adjusted accordingly.
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88 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 28.2 Accounting Treatment for Termination of Share-based Payment Plans During the vesting period, if the granted equity instruments are cancelled, the Group shall treat the cancellation of the granted equity instruments as an accelerated vesting. The amount that would have been recognized over the remaining vesting period shall be recognized immediately in profit or loss for the current period, with a corresponding credit to capital reserve. If employees or other parties could choose to satisfy non-vesting conditions but fail to satisfy them during the vesting period, the Group shall treat such failure as a cancellation of the granted equity instruments. 29. Revenue 29.1 Accounting policies used for revenue recognition and measurement by type of business The Group’s revenue is mainly derived from the sales of glass products, which mainly include photovoltaic glass, household glass, architectural glass, float glass, mining products and electricity, etc. The Group recognises revenue based on the transaction price allocated to such performance obligation when a performance obligation is satisfied, i.e. when “control” of the goods or services underlying the particular performance obligation is transferred to the customer. A performance obligation represents the commitment that a good and service that is distinct shall be transferred by the Group to the customer.
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89 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. For domestic sales, the Group recognizes revenue when the goods are delivered to the agreed delivery location or when the buyer collects the goods by themselves, and the customer signs for receipt. For export sales, the Group recognizes sales revenue based on the timing of the transfer of control of the goods under different trade terms. Specifically: under the EXW (Ex Works) term, control of the product is transferred to the customer when the buyer’s designated carrier picks up the goods, and the Group recognizes sales revenue at this point; under the FOB (Free on Board), CIF (Cost, Insurance, and Freight), and FCA (Free Carrier) terms, control of the product is transferred to the customer when the goods are cleared for export and pass over the ship’s rail. The Group recognizes sales revenue at this point; under the DAP (Delivered at Place) terms, control of the product is transferred to the customer when the goods are delivered to the buyer’s designated delivery location. The Group recognizes sales revenue at this point. The transaction price refers to the amount of consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. This does not include amounts collected on behalf of third parties or amounts that the Group expects to refund to customers. In determining the transaction price, the Group considers factors such as variable consideration and amounts payable to customers. If the quality assurance provided in a sales contract offers a separate service beyond ensuring that the goods or services meet established standards, it constitutes a distinct performance obligation. Otherwise, the Group accounts for the quality assurance liability in accordance with Accounting Standard for Business Enterprises No. 13 – Contingencies. When the Group receives advance payments from customers for goods or services, it initially recognizes these amounts as liabilities. The amounts are subsequently recognized as revenue when the relevant performance obligations are fulfilled.
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90 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 30. Government Grants Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no consideration. A government grant is recognised only when the Group can comply with the conditions attaching to the grant and the Group will receive the grant. If a government grant is in the form of monetary asset, it shall be measured at the amount received or receivable. 30.1 Judgement basis and accounting treatment of government grants related to assets Such grants are government grants as they related to fixed assets that were built or acquired. A government grant related to assets is recognised as deferred income and included in current profit or loss over the useful life of the related asset using the straight-line method. 30.2 Judgement basis and accounting treatment of government grants related to revenue As they are directly related to the expenses incurred during the period, such government grants are government grants related to revenue. A government grant related to revenue used to compensate for relevant costs, expenses and losses in subsequent periods is recognised as deferred income, and is included in profit or loss for the period directly over the periods in which the relevant costs, expenses or losses are recognised. The government grants related to revenue used to compensate for relevant costs, expenses or losses already incurred is included in profit or loss for the period directly. The government grants related to the Group’s daily activities are included in other income/offset the relevant costs and expenses according to the nature of economic business. Otherwise, government grants are included in non- operating income.
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91 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 31. Safety Production Expenses Pursuant to the requirements of the Administrative Measures for the Withdrawal and Use of Safety Production Expenses of Enterprises issued by the Ministry of Finance and the State Administration of Work Safety, the Group has made provision for safety production expenses of RMB3 per ton based on the output of raw ore of open-pit non-metallic mines. The safety production expenses are specifically used for the improvement, transformation and maintenance of the Group’s safety production conditions. The provision for safety production expenses is directly included in the cost of the relevant products or the expenses for the period, and is presented separately in the “special reserve” item under the owners’ equity. When safety production expenses is being used according to the prescribed scope, the expense expenditure is used to directly offset against “special reserve”; as for the capital expenditure, the expenditure incurred is firstly collected through “construction in progress” item and recognised as fixed assets when the safety project is completed and ready for its intended use; at the same time, the “special reserve” will be written down based on the cost of the fixed asset formed and the accumulated depreciation of the same amount will be recognised, no depreciation will be provided for the fixed assets in subsequent periods. 32. Deferred Income Tax Assets/Deferred Income Tax Liabilities Income tax expenses comprise current income tax expense and deferred income tax expense. 32.1 Current income tax At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
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92 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 32.2 Deferred income tax assets and deferred income tax liabilities For temporary differences between the carrying amount of certain assets or liabilities and their tax base, or between the carrying amount of those items that are not recognised as assets or liabilities but the tax base can be determined according to tax laws and their tax base, deferred income tax assets and deferred income tax liabilities are recognised using the balance sheet liability method. Deferred income tax is generally recognised for all temporary differences. However, as for deductible temporary differences, deferred income tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised. In addition, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profit (or deductible loss) at the time of transaction and would not result in equal taxable temporary differences and deductible temporary differences, no deferred income tax asset or liability is recognised. For deductible losses and tax credits in subsequent years that can be carried forward, deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilised. Deferred income tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences associated with the investments in subsidiaries are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
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93 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. At the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled according to the requirements of tax laws. Current and deferred income tax expenses or income are recognised in profit or loss for the period, except when they arise from transactions or events that are directly recognised in other comprehensive income or in shareholders’ equity, in which case they are recognised in other comprehensive income or in shareholders’ equity; and when they arise from business combinations, in which case they are adjusted to the carrying amount of goodwill. The carrying amount of a deferred income tax asset is reviewed at each balance sheet date and is reduced to the extent that it is probable that sufficient taxable profits will not be available to offset the benefits of deferred income tax assets. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. 32.3 Offsetting of income tax When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis. When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred income tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax assets or liabilities are expected to be reversed, deferred income tax assets and deferred tax liabilities are offset and presented on a net basis.
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94 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 33. Lease Lease is defined as a contract that the lessor transfers the right-of-use of assets to the lessee within a certain period of time in exchange for consideration. For a contract entered into or changed after the date of initial adoption, the Group assesses whether the contract is or contains lease on the commencement or changing date of the contract. The Group does not reassess unless the terms and conditions of the contract are changed. 33.1 The Group as lessee 33.1.1 Right-of-use assets Except for short-term leases and leases of low value assets, the Group recognises right-of-use assets at the commencement date of the lease. The lease commencement date refers to the starting date for the lessor to provide leased assets for use by the Group. Right-of-use assets are initially measured at cost. Such cost includes: • the amount of the initial measurement of the lease liability; • any lease payments made at or before the commencement date; • any initial direct costs incurred by the Group; • an estimate of costs to be incurred by the Group in dismantling and removing the underlying assets, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms of the lease.
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95 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. The Group accrues depreciation for the right-of-use assets according to the relevant depreciation regulations of Accounting Standards for Business Enterprises No. 4 – Fixed Assets. Right-of-use assets are depreciated within the remaining useful lives when the Group is reasonably certain to obtain the ownership of leased assets at the end of the lease term. The depreciation is provided during the period between the lease term and the remaining useful lives of the leased assets if it is not. The Group determines whether the right-of-use assets are impaired and performs accounting treatment for recognised impairment loss according to the relevant regulations of Accounting Standard for Business Enterprise No. 8 – Impairment of Assets. 33.1.2 Lease liabilities Except for short-term leases, the Group initially measures the lease liability at the present value of lease payments that are unpaid at the lease commencement date. In calculating the present value of lease payments, the Group uses the interest rate implicit in the lease as discount rate, and adopts the incremental borrowing rate if the interest rate implicit in the lease is not readily determinable. The lease payments refer to the amount paid by the Group to the lessor in relation to the right to use the leased asset during the lease term, including fixed payments and in-substance fixed payments. The Group calculates the interest expense of lease liabilities for each period of the lease term at a fixed periodic interest rate and includes it in profit and loss for the period or related asset costs after the lease commencement date.
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96 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 33.1.3 The criteria and accounting methods for simplified treatment of short- term leases by the lessee For short-term leases of buildings and ports, the Group chooses the right- of-use assets and lease liabilities that are not certain to use. Short-term lease is defined as a lease has a lease term of no more than 12 months and excludes a purchase option from the lease commencement date. The Group will include the lease payments for short-term leases and leases of low value assets in profit or loss for the period or related asset costs using the straight-line method. 33.1.4 Lease Modification If a lease is modified and the following conditions are met at the same time, the Group shall account for the lease modification as a separate lease: • The modification increases the scope of the lease by adding the right to use one or more underlying assets; and • The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. If a lease modification is not accounted for as a separate lease, on the effective date of the modification, the Group shall reallocate the consideration in the modified contract, redetermine the lease term, and remeasure the lease liability at the present value of the modified lease payments using a revised discount rate. Where a lease modification results in a decrease in the scope of the lease or a shortening of the lease term, the Group shall reduce the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize any resulting gain or loss in profit or loss for the current period. For all other lease modifications that result in the remeasurement of lease liabilities, the Group shall make a corresponding adjustment to the carrying amount of the right-of-use asset.
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97 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 33.2 The Group as lessor 33.2.1 The classification criteria and accounting methods for leases as a lessor Leases are classified as finance leases whenever the terms of the lease transfer substantially almost all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 33.3 The Group as lessor under operating leases The Group recognises lease payments for operating leases as rental income by using the straight-line method in each period of the lease term. Initial direct costs related to the Group’s operating leases are capitalised when incurred, are allocated on the same basis as rental income over the lease term and are charged to profit or loss for the period in stages. 34. Other Significant Accounting Policies and Accounting Estimates 34.1 Accounting treatment in relation to the repurchase of shares of the Company The consideration and transaction costs paid in a share repurchase reduce shareholders’ equity and no gain or loss is recognised when the shares of the Company are repurchased, transferred or cancelled.
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98 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 35. Critical Judgements in Applying Accounting Policies and Key Assumptions and Uncertainties in Accounting Estimates When using the accounting policies stated above, due to uncertainty of operating activities, the Group needs to make judgment, estimation and assumption on the book value of reporting items could not be calculated accurately. These judgments, estimation and assumptions are based on past experience of the Group’s management while considering other related factors. The actual result may differ from the Group’s estimation. The Group regularly reviews the aforesaid judgment, estimation and assumption on the basis of continuous operation. Where the changes in accounting estimation only impact the current period, the impact shall be recognized during the current period; where such changes impact both the current and future period, the impact shall be confirmed during the current or future period when such changes occur. At the balance sheet date, key assumptions and uncertainties in accounting estimates that are probable to cause a material adjustment to the carrying amount of assets and liabilities are mainly: The provision for expected credit losses on accounts receivable The Group’s accounts receivable do not contain significant financing components. When assessing the provision for expected credit losses on accounts receivable, management needs to consider historical credit losses and incorporates forward- looking information, such as changes in the current external market environment and customer conditions, to review the provision amount of expected credit losses of account receivables. The Group regularly monitors and reviews the assumptions related to the calculation of expected credit losses.
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99 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Impairment of fixed assets The management of the Group regularly reviews whether there are any indications of impairment for an individual fixed asset and recognises an asset impairment loss if the carrying amount of an asset is lower than its recoverable amount. The Group conducts impairment test on fixed assets whenever there is an indication that the fixed assets may be impaired. The recoverable amount is the higher of an asset’s fair value less costs of disposal and the present value of its future cash flows. In determining the recoverable amount of fixed assets, the management of the Group has taken into account the estimated residual value to be recovered upon disposal. If the re-estimated recoverable amount is lower than the current estimate, the difference will affect the carrying amount of the asset. Recognition of deferred income tax assets The recognition of deferred income tax assets is mainly based on the actual future profits and deductible temporary differences available and the actual tax rates utilised in the upcoming years. In cases where the actual future profits generated and the deductible temporary differences are less than expected, or actual tax rates are less than expected, a reversal of deferred income tax assets recognised may arise, which would be recognised in the income statement for the period in which such a reversal takes place.
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100 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (IV) TAXATION 1. Major Types of Tax and Tax Rates Tax type Tax basis Tax rate Value-added tax (VAT) Taxable value-added amount (the tax payable is calculated on the taxable sales amount multiplied by the applicable tax rate (output-VAT) less deductible input-VAT for the current period) 13% Urban maintenance and construction tax Turnover tax payment 7% Education surcharge Turnover tax payment 3% Local educational surcharges Turnover tax payment 2% Property tax The portion subject to tax based on rental income is levied at 12% of the rental income; the portion subject to tax based on property value is levied at 1.2% of the residual value of the property as approved by the tax authorities 12%; 1.2% Resources tax Amount of mining products sold 7% Enterprise income tax (EIT) Taxable income 25% Environmental protection tax Pollutant emissions RMB1.2 or RMB1.4 per pollutant equivalent
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101 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Note on entities with different enterprise income tax rates: Taxpayer Name Income tax rate The Company 15% ʮ̡Zhejiang Jiafu Glass Co., Ltd.* 15% ʮ̡Anhui Flat Solar Glass Co., Ltd.* 15% ၅ഺत(ಥ)ʮ̡Flat (Hong Kong) Limited* Note ʮ̡Jiaxing Flat New Energy Technology Co., Ltd.* 25% or 0% ၅ഺत(ی)ʮ̡Flat (Vietnam) Company Limited* 15% ၅ഺत(ಥ)ʮ̡Flat (Hong Kong) Investment Limited* Note ʮ̡Fengyang Flat New Energy Technology Co., Ltd.* 0% ၅ഺत(ی)ʮ̡Flat (Vietnam) Import and Export Trade Limited* 15% ʮ̡ʿՉɿʮ̡ Zhejiang Fulaitai New Energy Co., Ltd.* and its subsidiaries 25% or 0% PT FLATSOLAR ENERGY INDONESIA 22% FLAT SOLAR TECHNOLOGY PTE. LTD. 17% PT FLATGLOBAL INVESTMENT INDONESIA 22% FLAT INTERNATIONAL SOLAR TRADE PTE..LTD 17% Note: Profit before tax not exceeding HK$2,000,000 (inclusive) is subject to a tax rate of 8.25%, while the portion of profit before tax exceeding HK$2,000,000 is subject to a tax rate of 16.5%. * for identification purpose only
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102 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 2. Tax Preferences The Company On 19 December 2025, the Company obtained the “High Technology Enterprise Certificate” (No. GR202533009677) jointly approved by Department of Economy and Information Technology of Zhejiang Province, Zhejiang Provincial Department of Finance, Zhejiang Provincial Tax Service, State Taxation Administration for a valid period of three years, pursuant to which, the EIT rate of 15% is applied from 2025 to 2027. Zhejiang Jiafu Glass Co., Ltd. On 19 December 2025, Zhejiang Jiafu Glass Co., Ltd. obtained the “High Technology Enterprise Certificate” (No. GR202533004926) jointly approved by Department of Economy and Information Technology of Zhejiang Province, Zhejiang Provincial Department of Finance, Zhejiang Provincial Tax Service, State Taxation Administration for a valid period of three years, pursuant to which, the EIT rate of 15% is applied from 2025 to 2027. Anhui Flat Solar Glass Co., Ltd. On 16 October 2023, Anhui Flat Solar Glass Co., Ltd. obtained the “High Technology Enterprise Certificate” (No. GR202334000506) jointly approved by the Science and Technology Department of Anhui Province, Anhui Provincial Department of Finance, the State Taxation Bureau of Anhui Province and the Local Taxation Bureau of Anhui Province, for a valid period of three years, pursuant to which, the EIT rate of 15% is applied from 2023 to 2025.
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103 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Flat (Vietnam) Company Limited/ Flat (Vietnam) Import and Export Trade Limited Pursuant to the Project Investment License approved by the Vietnam Haiphong Economic Zone Authority on 30 June 2016, Flat (Vietnam) Company Limited is exempted from EIT for four years commencing from the first profit-making year, followed by a 50% reduction in EIT for the next nine years. Flat (Vietnam) Company Limited has started to make profits since 2021. On 8 October 2021, the Organisation for Economic Co-operation and Development (OECD) issued the “Pillar Two” implementation plan of new international tax rules. On 29 November 2023, the National Assembly of Vietnam passed the resolution in respect of the Pillar Two global minimum tax rules, which were effective from 1 January 2024. The global minimum tax rules will be implemented in 2024. Fengyang Flat New Energy Technology Co., Ltd./Zhejiang Fulaitai New Energy Co., Ltd.* and its subsidiaries/Jiaxing Flat New Energy Technology Co., Ltd. Pursuant to the Catalogue of Enterprise Income Tax Preferences for Public Infrastructure Projects, enterprises engaged in the investment and operation of national key-supported public infrastructure projects specified in the catalogue are exempt from enterprise income tax for the first three years and subject to a 50% reduction in enterprise income tax for the fourth to sixth years, starting from the tax year in which the first production and operation income is obtained. Fengyang Flat New Energy Technology Co., Ltd. is engaged in distributed photovoltaic power generation projects and obtained its first income eligible for the preferential treatment in 2024. Therefore, it is exempt from enterprise income tax from 2024 to 2026 and subject to a 50% reduction in enterprise income tax from 2027 to 2029. Subsidiaries of Zhejiang Fulaitai New Energy Co., Ltd. are engaged in distributed photovoltaic power generation projects and obtained its first income eligible for the preferential treatment in 2023. Therefore, it is exempt from enterprise income tax from 2023 to 2025 and subject to a 50% reduction in enterprise income tax from 2026 to 2028. Jiaxing Flat New Energy Technology Co., Ltd. is engaged in distributed photovoltaic power generation projects and obtained its first income eligible for the preferential treatment in 2024. Therefore, it is exempt from enterprise income tax from 2024 to 2026 and subject to a 50% reduction in enterprise income tax from 2027 to 2029.
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104 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (V) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. CASH AT BANK AND ON HAND RMB Items Closing balance Opening balance Cash on hand 517,025.43 2,173,089.90 Cash at bank 3,502,763,066.94 3,717,255,812.89 Other cash at bank and on hand 283,425,931.52 295,030,769.83 Total 3,786,706,023.89 4,014,459,672.62 Including: Total deposits held overseas 463,299,545.85 585,402,316.30 As at the end of the period, the restricted cash of the Group included in other cash at bank and on hand amounted to RMB283,425,931.52 (as at the end of last year: RMB295,030,769.83), mainly comprising bill deposits, pledged bank deposits, futures and option margins and letter of credit deposits. 2. TRADING FINANCIAL ASSETS RMB Items Closing balance Opening balance Financial assets at fair value through profit or loss 540,065,480.45 480,018,805.88 Including: Wealth management products of banks 540,050,000.00 480,000,000.00 Equity instrument investments 15,480.45 15,480.45 Total 540,065,480.45 480,018,805.88
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105 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 3. DERIVATIVE FINANCIAL ASSETS RMB Items Closing balance Opening balance Derivative financial assets not designated as hedging instruments – foreign exchange option contracts – 730,006.04 Derivative financial assets not designated as hedging instruments – foreign exchange swap contracts 2,083,180.44 926,638.96 Total 2,083,180.44 1,656,645.00 4. BILLS RECEIVABLES (1) Classification of bills receivables RMB Items Closing balance Opening balance Bank acceptance bills 631,669,651.69 914,940,755.15 Commercial acceptance bills 548,063.13 103,085,830.50 Less: Bad debt provision 9,645.91 1,814,310.62 Total 632,208,068.91 1,016,212,275.03
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106 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) As at the end of the period, the Group had no pledged bills receivables (3) Bills receivables endorsed or discounted but not yet due at the balance sheet date as at the end of the period RMB Items Amounts not derecognised at the end of the period Amounts not derecognised at the beginning of the period Endorsed bank acceptance bills 532,711,823.92 521,361,034.99 Discounted bank acceptance bills – 1,040,837.67 Total 532,711,823.92 522,401,872.66 The above bills receivables endorsed or discounted but not yet due at the balance sheet date have not been derecognised. (4) Disclosure by category of bad debt provision method RMB Closing balance Category Carrying amount Bad debt provision Carrying value Amount Proportion (%) Amount Provision ratio (%) Bad debt provision on a portfolio basis Including: Low risk category 631,669,651.69 99.91 – – 631,669,651.69 Normal category 548,063.13 0.09 9,645.91 1.76 538,417.22 Total 632,217,714.82 Ŋ 9,645.91 Ŋ 632,208,068.91
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107 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Opening balance Category Carrying amount Bad debt provision Carrying value Amount Proportion (%) Amount Provision ratio (%) Bad debt provision on a portfolio basis Including: Low risk category 914,940,755.15 89.87 – – 914,940,755.15 Normal category 103,085,830.50 10.13 1,814,310.62 1.76 101,271,519.88 Total 1,018,026,585.65 Ŋ 1,814,310.62 Ŋ 1,016,212,275.03 Bills receivables for which credit loss provision is made on a portfolio basis RMB Closing balance Name Carrying amount Bad debt provision Provision ratio (%) Low risk category 631,669,651.69 – – Normal category 548,063.13 9,645.91 1.76 Total 632,217,714.82 9,645.91 0.00 The Group considers that the credit risk arising from default by banks in respect of the bank acceptance bills held by the Group is low, and therefore the expected credit losses are not significant.
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108 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (5) Bad debt provision RMB Changes during the period Category Opening balance Provision (reversal) Write-off Closing balance Normal category 1,814,310.62 -1,804,664.71 – 9,645.91 Total 1,814,310.62 -1,804,664.71 – 9,645.91 5. TRADE RECEIVABLES (1) Ageing analysis RMB Ageing Carrying amount at the end of the period Carrying amount at the beginning of the period Within 1 year (including 1 year) 3,023,207,336.15 2,493,619,163.17 1 to 2 years 12,783,002.30 6,865,976.30 2 to 3 years 5,362,688.11 601,238.04 Over 3 years 19,022,097.16 18,476,468.50 Total 3,060,375,123.72 2,519,562,846.01
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109 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Disclosure by bad debt provision method RMB Closing balance Category Carrying amount Bad debt provision Carrying value Amount Proportion (%) Amount Provision ratio (%) Bad debt provision on an individual basis 33,646,388.81 1.10 33,646,388.81 100.00 – Bad debt provision on a portfolio basis 3,026,728,734.91 98.90 57,970,766.38 1.92 2,968,757,968.53 Total 3,060,375,123.72 Ŋ 91,617,155.19 Ŋ 2,968,757,968.53 Opening balance Category Carrying amount Bad debt provision Carrying value Amount Proportion (%) Amount Provision ratio (%) Bad debt provision on an individual basis 38,937,119.46 1.55 38,937,119.46 100.00 – Bad debt provision on a portfolio basis 2,480,625,726.55 98.45 51,917,224.61 2.09 2,428,708,501.94 Total 2,519,562,846.01 Ŋ 90,854,344.07 Ŋ 2,428,708,501.94
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110 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Credit loss provision made on a portfolio basis RMB Closing balance Name Carrying amount Bad debt provision Provision ratio (%) Normal category 3,019,411,279.69 53,141,638.50 1.76 Watchlist category 7,317,455.22 4,829,127.88 65.99 Total 3,026,728,734.91 57,970,766.38 1.92 (3) Changes in bad debt provision RMB Bad debt provision Stage 1 Stage 2 Stage 3 12-month expected credit losses Lifetime expected credit losses (no credit impairment occurred) Lifetime expected credit losses (credit impairment occurred) Total Balance as at 1 January 2026 51,917,224.61 – 38,937,119.46 90,854,344.07 Transferred to bad debt provision for lifetime credit impairment -125,858.93 125,858.93 – Provision (reversal) during the period 6,179,400.70 – -5,416,589.58 762,811.12 Write-off during the period – – – – Balance as at 30 June 2026 57,970,766.38 – 33,646,388.81 91,617,155.19
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111 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (4) Trade receivables actually written off during the period The Group had no trade receivables written off during the period. (5) Trade receivables from the top five debtors as at the end of the period As at the end of the period, the balance of trade receivables from the Group’s top five debtors was RMB1,468,060,956.04 (as at the end of last year: RMB1,094,929,242.07), representing 47.97% (as at the end of last year: 43.46%) of the total balance of trade receivables, and the credit loss provisions for the top five debtors amounted to RMB25,837,872.83 (as at the end of last year: RMB19,270,754.66). 6. FINANCING RECEIVABLES (1) Classification of financing receivables RMB Items Closing balance Opening balance Bank acceptance bills 625,860,210.87 1,124,553,338.33 Total 625,860,210.87 1,124,553,338.33 The Group manages bank acceptance bills on a classified basis and manages separately the bank acceptance bills issued by banks with higher credit ratings for endorsement or discounting when needed. Since the business model for holding these specific bank acceptance bills is both to collect contractual cash flows and to sell the financial assets, they are classified as financial assets at fair value through other comprehensive income and presented under financing receivables.
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112 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The Group considers that the credit risk arising from default by banks in respect of the bank acceptance bills held by the Group is low, and therefore the expected credit losses are not significant. (2) As at the end of the period, the Group had no pledged bank acceptance bills (3) Bank acceptance bills endorsed or discounted by the Group but not yet due at the balance sheet date as at the end of the period RMB Items Amounts derecognised at the end of the period Amounts derecognised at the beginning of the period Endorsed bank acceptance bills 1,368,030,326.36 1,491,887,018.28 Discounted bank acceptance bills 606,623,375.35 709,810,096.37 Total 1,974,653,701.71 2,201,697,114.65 (4) Changes in financing receivables and their fair value during the period RMB Items Closing balance Opening balance Cost 625,860,210.87 1,124,553,338.33 Fair value 625,860,210.87 1,124,553,338.33 Accumulated changes in fair value recognised in other comprehensive income – –
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113 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 7. ADVANCE PAYMENT (1) Ageing analysis RMB Closing balance Opening balance Aging Amount Percentage (%) Amount Percentage (%) Within 1 year 138,772,829.13 97.08 162,207,138.87 97.59 1 to 2 years 2,440,081.94 1.71 2,772,286.02 1.67 2 to 3 years 488,884.40 0.34 495,439.57 0.30 Over 3 years 1,238,214.70 0.87 731,865.58 0.44 Total 142,940,010.17 100.00 166,206,730.04 100.00 As at the end of the period, the Group had no prepayments aged over one year with significant amounts. (2) Prepayments to the top five suppliers as at the end of the period As at the end of the current period and the end of last year, the balances of prepayments to the top five suppliers were RMB98,273,912.39 and RMB138,361,339.55 respectively, representing 68.75% and 83.25% of the total balance of prepayments respectively.
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114 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 8. OTHER RECEIVABLES RMB Items Closing balance Opening balance Dividends receivable 1,562,500.00 – Other receivables 60,657,553.60 97,757,698.58 Total 62,220,053.60 97,757,698.58 Dividends receivable (1) Dividends receivable RMB Items (or investees) Closing balance Opening balance Jiaxing Gas 1,562,500.00 – Total 1,562,500.00 –
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115 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Other receivables (1) Ageing analysis RMB Ageing Carrying amount at the end of the period Carrying amount at the beginning of the period Within 1 year (including 1 year) 37,793,477.70 28,043,602.91 1 to 2 years 7,808,806.33 52,352,217.85 2 to 3 years 5,503,720.00 11,158,387.78 Over 3 years 9,551,549.57 6,203,490.04 Total 60,657,553.60 97,757,698.58 (2) Classification of other receivables by nature RMB Nature of the balance Carrying amount at the end of the period Carrying amount at the beginning of the period Deposits and margins 15,697,915.64 67,845,425.95 Imprest 264,263.99 605,297.17 Proceeds receivable from disposal of fixed assets 20,384,717.00 12,920,203.54 Others 24,310,656.97 16,386,771.92 Total 60,657,553.60 97,757,698.58
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116 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (3) Impairment of other receivables After evaluating the nature of other receivables, the Group considers that there is no significant expected credit loss risk in respect of other receivables, and therefore no credit loss provision has been made. (4) Other receivables actually written off during the period The Group had no other receivables written off during the period. (5) Other receivables from the top five debtors as at the end of the period RMB Name of entity Closing balance Proportion in the total closing balance of other receivables (%) Nature of the balance Ageing Bad debt provision at the end of the period Fengyang County Housing Expropriation Center 20,384,717.00 33.61 Proceeds receivable from disposal of fixed assets Within 1 year – Wuxuan Baoxin Mining Co., Ltd. 5,000,000.00 8.24 Deposit 2–3 years – DEEP C GREEN ENERGY VIÊT NAM COMPANY LIMITED 4,853,509.22 8.00 Deposit Over 3 years – Anhui Fengkuang Silica Sand Group Co., Ltd. 4,800,000.00 7.91 Others 2–3 years – Jiaxing Gas Group Co., Ltd. 1,560,000.00 2.57 Deposit Within 1 year and over 3 years – Total 36,598,226.22 60.33 / / –
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117 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 9. INVENTORIES (1) Classification of inventories RMB Closing balance Items Carrying amount Provision for diminution in value of inventories Carrying value Raw materials 633,262,393.93 8,239,756.18 625,022,637.75 Low-value consumables 237,868,388.26 60,646,470.64 177,221,917.62 Work in progress 85,391,731.33 – 85,391,731.33 Finished goods 994,779,640.18 102,668,445.25 892,111,194.93 Total 1,951,302,153.70 171,554,672.07 1,779,747,481.63 Opening balance Items Carrying amount Provision for diminution in value of inventories Carrying value Raw materials 540,827,777.30 7,895,761.36 532,932,015.94 Low-value consumables 228,450,224.59 41,042,466.79 187,407,757.80 Work in progress 89,938,533.71 – 89,938,533.71 Finished goods 1,000,395,255.52 75,538,349.28 924,856,906.24 Total 1,859,611,791.12 124,476,577.43 1,735,135,213.69
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118 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Provision for diminution in value of inventories RMB Items Opening balance Provision (reversal) during the period Write-down transferred during the period Closing balance Raw materials 7,895,761.36 8,239,756.18 7,895,761.36 8,239,756.18 Low-value consumables 41,042,466.79 26,380,937.68 6,776,933.83 60,646,470.64 Finished goods 75,538,349.28 63,841,549.78 36,711,453.81 102,668,445.25 Total 124,476,577.43 98,462,243.64 51,384,149.00 171,554,672.07 10. OTHER NON-CURRENT ASSETS DUE WITHIN ONE YEAR RMB Items Closing balance Opening balance Debt investment due within one year – 140,576,000.00 Other debt investment due within one year 232,089,813.56 – Total 232,089,813.56 140,576,000.00
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119 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Debt investment due within one year (1) Debt investment due within one year RMB Closing balance Opening balance Items Carrying amount Impairment provision Carrying value Carrying amount Impairment provision Carrying value Long-term bank time deposits – – – 140,576,000.00 – 140,576,000.00 Total – – – 140,576,000.00 – 140,576,000.00 Other debt investment due within one year (1) Other debt investment due within one year RMB Items Opening balance Accrued interest Interest adjustment Changes in fair value during the period Closing balance Cost Accumulated changes in fair value Accumulated loss provision recognised in other comprehensive income Remarks Negotiable large- denomination time deposits (Note) 229,312,827.25 2,776,986.31 – – 232,089,813.56 223,393,073.83 – – Total 229,312,827.25 2,776,986.31 – – 232,089,813.56 223,393,073.83 – – Ŋ Note: The above negotiable large-denomination time deposits held by the Group during the period will mature between March 2027 and May 2027, and are therefore presented under non-current assets due within one year as at the end of the period.
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120 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Significant other debt investments due within one year at the end of the period RMB Closing balance Opening balance Items Face value Coupon rate Effective interest rate Maturity date Face value Coupon rate Effective interest rate Maturity date Negotiable large- denomination time deposits 20,000,000.00 2.50% 2.50% March 2027 20,000,000.00 2.50% 2.50% March 2027 Negotiable large- denomination time deposits 20,000,000.00 2.55% 2.55% April 2027 20,000,000.00 2.55% 2.55% April 2027 Negotiable large- denomination time deposits 180,000,000.00 2.55% 2.55% May 2027 180,000,000.00 2.55% 2.55% May 2027 Total 220,000,000.00 Ŋ Ŋ Ŋ 220,000,000.00 Ŋ Ŋ Ŋ 11. OTHER CURRENT ASSETS RMB Items Closing balance Opening balance Prepaid income tax 27,631,418.76 29,392,144.05 Input VAT to be offset 635,630,414.12 662,062,007.73 Bank time deposits 470,527,513.35 377,653,709.50 Export tax rebates 1,325,142.08 1,661,428.61 Prepaid lease payments 2,564,497.80 688,073.38 Others – 5,941.98 Total 1,137,678,986.11 1,071,463,305.25 Note: As at the end of the period, bank time deposits of RMB267,000,000.00 were pledged to obtain bank credit facilities (as at the end of last year: RMB202,000,000.00).
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121 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 12. DEBT INVESTMENT (1) Debt investment RMB Closing balance Opening balance Items Carrying amount Impairment provision Carrying value Carrying amount Impairment provision Carrying value Long-term bank time deposits 2,526,000.00 – 2,526,000.00 126,000.00 – 126,000.00 Total 2,526,000.00 – 2,526,000.00 126,000.00 – 126,000.00 The Group considers that the credit risk arising from default by banks in respect of the long-term bank time deposits held by the Group is low, and therefore no credit loss provision has been made. 13. OTHER DEBT INVESTMENT (1) Other debt investment RMB Items Opening balance Accrued interest Interest adjustment Changes in fair value during the period Closing balance Cost Accumulated changes in fair value Accumulated impairment provision recognised in other comprehensive income Remarks Negotiable large- denomination time deposits (Notes 1 and 2) 61,065,041.10 565,315.08 – – 61,630,356.18 60,000,000.00 – – Total 61,065,041.10 565,315.08 – – 61,630,356.18 60,000,000.00 – – Ŋ Note 1: Since the business model for holding the negotiable large-denomination time deposits is both to collect contractual cash flows and to sell the financial assets, they are classified as financial assets at fair value through other comprehensive income and presented under other debt investment. Note 2: The portion of the negotiable large-denomination time deposits held by the Group which will mature between March 2027 and May 2027 is presented under non-current assets due within one year as at the end of the period (see Note (VI) 10).
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122 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) The Group considers that the credit risk arising from default by banks in respect of the negotiable large-denomination time deposits held by the Group is low, and therefore no credit loss provision has been made. 14. LONG-TERM EQUITY INVESTMENTS RMB Investees Opening balance Opening balance of impairment provision Changes during the period Closing amount Closing balance of impairment provision Capital contribution/ additional investment Investment income recognised under the equity method Cash dividends or profits declared Associates Kaihong Flat 45,437,007.93 – – 10,002,191.73 -16,000,000.00 39,439,199.66 – Kunlun Gas 10,500,000.00 – – – – 10,500,000.00 – Jiaxing Gas 73,176,554.12 – – 3,001,940.40 -1,562,500.00 74,615,994.52 – Jiaxing Energy 4,500,000.00 4,500,000.00 – – – 4,500,000.00 4,500,000.00 Sky Brightness Metal 58,866,200.00 – 62,784,525.00 – – 121,650,725.00 – Fulairuicheng – – 40,000,000.00 – – 40,000,000.00 – Total 192,479,762.05 4,500,000.00 102,784,525.00 13,004,132.13 -17,562,500.00 290,705,919.18 4,500,000.00
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123 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 15. INVESTMENT PROPERTIES Investment properties measured under the cost model RMB Items Buildings Land use rights Total I. Gross carrying amount 1. Opening balance 539,310,452.96 7,525,892.36 546,836,345.32 2. Closing balance 539,310,452.96 7,525,892.36 546,836,345.32 II. Accumulated amortisation – – – 1. Opening balance 83,229,376.21 2,454,094.80 85,683,471.01 2. Additions during the period 12,705,271.80 81,803.16 12,787,074.96 (1) Amortisation charge 12,705,271.80 81,803.16 12,787,074.96 3. Closing balance 95,934,648.01 2,535,897.96 98,470,545.97 III. Carrying value – – – 1. Closing carrying value 443,375,804.95 4,989,994.40 448,365,799.35 2. Opening carrying value 456,081,076.75 5,071,797.56 461,152,874.31 As at the end of the period, buildings and land use rights with a net value of RMB440,324,022.04 (as at the end of last year: RMB472,375,461.96) were pledged as security for borrowings. 16. FIXED ASSETS RMB Items Closing balance Opening balance Fixed assets 16,880,587,831.70 17,571,474,371.61 Total 16,880,587,831.70 17,571,474,371.61
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124 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (1) Fixed assets RMB Items Buildings Machinery and equipment Vehicles Other equipment Total I. Gross carrying amount: 1. Opening balance 8,402,453,532.65 15,724,957,669.53 187,868,711.98 249,376,245.10 24,564,656,159.26 2. Additions during the period 178,440,986.99 136,763,792.55 9,664,570.25 11,363,601.07 336,232,950.86 (1) Purchases 5,900,464.24 32,136,198.42 9,664,570.25 3,489,398.28 51,190,631.19 (2) Transferred from construction in progress 172,540,522.75 104,627,594.13 – 7,874,202.79 285,042,319.67 3. Decreases during the period 30,144,598.00 271,390,944.84 16,481,410.96 3,108,671.41 321,125,625.21 (1) Disposals or write-offs 30,144,598.00 4,495,875.05 1,292,057.25 72,550.64 36,005,080.94 (2) Transferred to construction in progress – 266,895,069.79 15,189,353.71 3,036,120.77 285,120,544.27 4. Exchange differences on translation of foreign currency financial statements -19,287,835.35 -31,407,047.54 -550,248.04 -142,760.40 -51,387,891.33 5. Closing balance 8,531,462,086.29 15,558,923,469.70 180,501,623.23 257,488,414.36 24,528,375,593.58 II. Accumulated depreciation – 1. Opening balance 1,373,289,278.72 4,927,898,206.38 130,464,289.01 125,500,980.80 6,557,152,754.91 2. Additions during the period 200,977,846.66 586,972,281.59 12,468,953.52 20,680,904.14 821,099,985.91 (1) Depreciation charge 200,977,846.66 586,972,281.59 12,468,953.52 20,680,904.14 821,099,985.91 3. Decreases during the period 1,800,117.74 225,060,692.60 15,415,072.86 3,057,116.02 245,332,999.22 (1) Disposals or write-offs 1,800,117.74 4,035,023.36 1,245,020.93 68,923.11 7,149,085.14 (2) Transferred to construction in progress – 221,025,669.24 14,170,051.93 2,988,192.91 238,183,914.08 4. Exchange differences on translation of foreign currency financial statements -3,766,981.65 -11,180,285.32 -256,208.46 -103,345.50 -15,306,820.93 5. Closing balance 1,568,700,025.99 5,278,629,510.05 127,261,961.21 143,021,423.42 7,117,612,920.67 III. Impairment provision – 1. Opening balance – 435,612,523.66 274,439.20 142,069.88 436,029,032.74 2. Additions during the period – 102,809,104.69 – – 102,809,104.69 (1) Provision – 102,809,104.69 – – 102,809,104.69 2. Decreases during the period – 8,659,046.22 4,250.00 – 8,663,296.22 (1) Disposals or write-offs – 9,770.35 4,250.00 – 14,020.35 (2) Transferred to construction in progress – 8,649,275.87 – – 8,649,275.87 3. Closing balance – 529,762,582.13 270,189.20 142,069.88 530,174,841.21 IV. Carrying value – 1. Closing carrying value 6,962,762,060.30 9,750,531,377.52 52,969,472.82 114,324,921.06 16,880,587,831.70 2. Opening carrying value 7,029,164,253.93 10,361,446,939.49 57,129,983.77 123,733,194.42 17,571,474,371.61
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125 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Temporarily idle fixed assets of the Group as at the end of the period RMB Items Gross carrying amount Accumulated depreciation Impairment provision Net carrying value Machinery and equipment 2,748,991,689.59 1,503,038,830.85 529,730,714.76 716,222,143.98 Vehicles 18,698,244.44 16,929,719.29 280,037.49 1,488,487.66 Other equipment 20,901,277.52 15,618,807.31 164,088.96 5,118,381.25 Total 2,788,591,211.55 1,535,587,357.45 530,174,841.21 722,829,012.89 As at the end of the period, the idle fixed assets of the Group are expected to be scrapped due to plans such as renovation and upgrading, and the Group has made impairment provisions based on the estimated residual value recoverable upon disposal. (3) As at the end of the period and the beginning of the period, the Group had no fixed assets leased out under operating leases (4) Fixed assets for which the property ownership certificates have not been obtained as at the end of the period RMB Items Carrying value Reasons for not obtaining property ownership certificates Buildings 1,594,876,410.69 Property ownership certificates are still being processed
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126 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (5) Impairment testing of fixed assets Items Carrying value Recoverable amount Impairment amount Method for determining fair value less costs of disposal Key parameters Basis for determining the key parameters Machinery and electrical equipment 571,161,642.26 95,357,947.79 475,803,694.47 Residual value recoverable upon disposal Estimated residual value recoverable upon disposal Based on recent quotations from independent counterparties Total 571,161,642.26 95,357,947.79 475,803,694.47 / / / 17. CONSTRUCTION IN PROGRESS Items RMB Items Closing balance Opening balance Construction in progress 3,234,099,377.09 2,822,722,972.80 Engineering materials 547,230,894.07 590,922,780.75 Total 3,781,330,271.16 3,413,645,753.55
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127 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Construction in progress (1) Construction in progress RMB Closing balance Items Carrying amount Impairment provision Carrying value Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels and backsheets for solar energy equipment 1,605,094,886.80 – 1,605,094,886.80 Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels for new energy equipment 1,130,574,070.99 – 1,130,574,070.99 Supporting project of Nantong Flat Glass for photovoltaic glass 194,651,261.17 – 194,651,261.17 Project for annual production capacity of 8 million square metres of low-radiation coated glass 95,148,789.80 – 95,148,789.80 Direct gas supply project of the parent company 79,133,086.43 – 79,133,086.43 Supporting manufacturing project of Flat Glass Guangneng for high-efficiency thin-film solar modules 51,040,489.50 – 51,040,489.50 Machinery and equipment pending installation and others 78,456,792.40 – 78,456,792.40 Total 3,234,099,377.09 – 3,234,099,377.09
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128 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Opening balance Items Carrying amount Impairment provision Carrying value Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels and backsheets for solar energy equipment 1,332,811,725.10 – 1,332,811,725.10 Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels for new energy equipment 1,023,868,509.98 – 1,023,868,509.98 Supporting project of Nantong Flat Glass for photovoltaic glass 188,653,684.75 – 188,653,684.75 Direct gas supply project of the parent company 68,382,202.89 – 68,382,202.89 Nantong natural gas transmission project 52,221,982.56 – 52,221,982.56 Supporting manufacturing project of Flat Glass Guangneng for high-efficiency thin-film solar modules 21,244,027.33 – 21,244,027.33 Machinery and equipment pending installation and others 135,540,840.19 – 135,540,840.19 Total 2,822,722,972.80 – 2,822,722,972.80
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129 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Changes in major construction in progress projects during the period RMB Project name Budget Opening balance Additions during the period Transferred to fixed assets during the period Closing balance Proportion of accumulated investment to budget (%) Project progress Accumulated interest capitalised Including: Interest capitalised during the period Interest capitalisation rate during the period (%) Sources of funds Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels and backsheets for solar energy equipment 3,885,000,000.00 1,332,811,725.10 311,847,051.61 39,563,889.91 1,605,094,886.80 60.91 60.91% 26,953,700.98 6,243,539.71 2.45–2.50 Own funds and special borrowings Project for annual production capacity of 1.5 million tonnes of ultra-thin ultra-high-transmittance panels for new energy equipment 3,752,960,000.00 1,023,868,509.98 111,212,027.09 4,506,466.08 1,130,574,070.99 87.49 87.49% – – – Private placement proceeds and own funds Supporting project of Nantong Flat Glass for photovoltaic glass 300,000,000.00 188,653,684.75 5,997,576.42 – 194,651,261.17 64.88 64.88% – – – Own funds Supporting manufacturing project of Flat Glass Guangneng for high- efficiency thin-film solar modules 700,000,000.00 21,244,027.33 64,760,158.82 34,963,696.65 51,040,489.50 67.66 67.66% – – – Own funds Total 8,637,960,000.00 2,566,577,947.16 493,816,813.94 79,034,052.64 2,981,360,708.46 Ŋ Ŋ 26,953,700.98 6,243,539.71 Ŋ Ŋ (3) As at the end of the period, there were no indications of impairment of the construction in progress of the Group, and therefore no impairment provision was made
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130 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Engineering materials RMB Closing balance Items Carrying amount Impairment provision Carrying value Specialised equipment 368,020,044.40 – 368,020,044.40 Refractory materials 11,102,211.19 – 11,102,211.19 Wires and cables 39,963,654.48 – 39,963,654.48 Steel and wire rods 18,294,934.54 – 18,294,934.54 Others 109,850,049.46 – 109,850,049.46 Total 547,230,894.07 – 547,230,894.07 Opening balance Items Carrying amount Impairment provision Carrying value Specialised equipment 335,685,000.08 – 335,685,000.08 Refractory materials 66,253,307.88 – 66,253,307.88 Wires and cables 59,498,608.02 – 59,498,608.02 Steel and wire rods 22,368,611.27 – 22,368,611.27 Others 107,117,253.50 – 107,117,253.50 Total 590,922,780.75 – 590,922,780.75
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131 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 18. RIGHT-OF-USE ASSETS RMB Items Land Roof Total I. Gross carrying amount 1. Opening balance 284,855,748.43 820,997,318.41 1,105,853,066.84 2. Additions during the period 5,550,761.38 925,691.01 6,476,452.39 (1) New additions 5,550,761.38 925,691.01 6,476,452.39 3. Ex change differences on translation of foreign currency financial statements -8,632,474.93 – -8,632,474.93 4. Closing balance 281,774,034.88 821,923,009.42 1,103,697,044.30 II. Accumulated depreciation 1. Opening balance 41,992,009.33 67,430,117.06 109,422,126.39 2. Additions during the period 4,113,259.57 16,095,831.58 20,209,091.15 (1) Depreciation charge 4,113,259.57 16,095,831.58 20,209,091.15 3. Ex change differences on translation of foreign currency financial statements -1,643,952.45 – -1,643,952.45 4. Closing balance 44,461,316.45 83,525,948.64 127,987,265.09 III. Carrying value 1. Closing carrying value 237,312,718.43 738,397,060.78 975,709,779.21 2. Opening carrying value 242,863,739.10 753,567,201.35 996,430,940.45
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132 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 19. INTANGIBLE ASSETS RMB Items Land use rights Pollution discharge rights Mining rights Energy use rights Sea use rights Software Total I. Gross carrying amount 1. Opening balance 932,176,779.71 64,320,678.73 7,242,938,640.22 144,731,091.46 81,067,980.40 9,436,632.34 8,474,671,802.86 2. Additions during the period 24,029,900.00 2,245,788.00 211,594,274.94 – – 1,227,023.24 239,096,986.18 (1) Purchases 24,029,900.00 2,245,788.00 211,594,274.94 – – 1,227,023.24 239,096,986.18 3. Ex change differences on translation of foreign currency financial statements -12,656,515.46 – – – – – -12,656,515.46 4. Closing balance 943,550,164.25 66,566,466.73 7,454,532,915.16 144,731,091.46 81,067,980.40 10,663,655.58 8,701,112,273.58 II. Accumulated amortisation 1. Opening balance 119,977,866.69 59,335,281.74 2,032,357,641.33 – 3,633,808.51 6,829,417.44 2,222,134,015.71 2. Additions during the period 8,084,884.14 2,318,434.60 251,503,003.13 – 810,679.81 484,043.02 263,201,044.70 (1) Amortisation charge 8,084,884.14 2,318,434.60 251,503,003.13 – 810,679.81 484,043.02 263,201,044.70 4. Closing balance 128,062,750.83 61,653,716.34 2,283,860,644.46 – 4,444,488.32 7,313,460.46 2,485,335,060.41 III. Carrying value – – – – – – 1. Closing carrying value 815,487,413.42 4,912,750.39 5,170,672,270.70 144,731,091.46 76,623,492.08 3,350,195.12 6,215,777,213.17 2. Opening carrying value 812,198,913.02 4,985,396.99 5,210,580,998.89 144,731,091.46 77,434,171.89 2,607,214.90 6,252,537,787.15 As at the end of the period, land use rights with a net value of RMB394,262,458.04 (as at the end of last year: RMB408,286,436.15) were pledged as security for borrowings, and sea use rights with a net value of RMB53,377,640.50 (as at the end of last year: RMB53,944,482.70) were pledged as security for borrowings.
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133 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 20. LONG-TERM PREPAID EXPENSES RMB Items Opening balance Additions during the period Amortisation during the period Closing balance Container frames 97,598,494.37 19,840,641.64 14,397,736.40 103,041,399.61 Renovation, repairs and others 109,430,085.33 9,284,079.70 16,772,833.75 101,941,331.28 Total 207,028,579.70 29,124,721.34 31,170,570.15 204,982,730.89
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134 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 21. DEFERRED TAX ASSETS/DEFERRED TAX LIABILITIES (1) Unoffset deferred tax assets RMB Items Amounts at the end of the period Amounts at the beginning of the period Deductible temporary differences Deferred tax assets Deductible temporary differences Deferred tax assets Asset impairment provisions 550,158,620.10 82,562,374.45 406,382,553.16 60,997,366.45 Credit loss provisions 82,763,396.47 12,999,062.55 86,364,824.43 13,678,119.29 Deferred income 201,364,964.81 30,527,129.51 217,011,835.41 32,895,548.86 Difference in depreciation of fixed assets 27,114,797.59 4,067,219.64 23,810,117.30 3,571,517.60 Share-based payments 3,300,529.24 495,079.39 3,142,318.50 471,347.78 Differences relating to long-term equity investments 1,393,624,510.99 348,406,127.75 1,297,759,189.12 324,439,797.28 Lease liabilities 763,188,051.60 190,797,012.92 774,060,741.15 193,515,185.29 Deductible losses 377,960,996.53 56,778,891.99 – – Fair value losses of trading financial assets 46,212.01 6,931.80 42,886.58 6,432.99 Fair value losses of derivative financial liabilities 8,876,883.00 1,331,532.45 6,012,834.74 901,925.21 Subtotal 3,408,398,962.34 727,971,362.45 2,814,587,300.39 630,477,240.75
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135 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Unoffset deferred tax liabilities RMB Items Amounts at the end of the period Amounts at the beginning of the period Taxable temporary differences Deferred tax liabilities Taxable temporary differences Deferred tax liabilities Property revaluation arising from the conversion into a joint stock company 7,594,578.79 1,139,186.82 7,723,665.11 1,158,549.77 Accelerated depreciation of fixed assets 2,589,922,714.51 389,628,293.09 2,917,055,422.03 437,558,313.30 Right-of-use assets 738,397,060.78 184,599,265.20 753,567,201.35 188,391,800.34 Changes in fair value of derivative financial assets 2,083,180.44 312,477.07 1,656,645.00 258,304.29 Subtotal 3,337,997,534.52 575,679,222.18 3,680,002,933.49 627,366,967.70 (3) Deferred tax assets or liabilities presented on a net basis after offset RMB Items Amounts at the end of the period Amounts at the beginning of the period Amounts of deferred tax assets and liabilities offset at the end of the period Closing balance of deferred tax assets or liabilities after offset Amounts of deferred tax assets and liabilities offset at the end of the period Closing balance of deferred tax assets or liabilities after offset Deferred tax assets 349,033,340.55 378,938,021.90 296,219,233.53 334,258,007.22 Deferred tax liabilities 349,033,340.55 226,645,881.63 296,219,233.53 331,147,734.17
Page 138
136 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (4) Deductible losses and other temporary differences for which deferred tax assets have not been recognised RMB Items Amounts at the end of the period Amounts at the beginning of the period Deductible losses 175,016,728.21 58,398,681.20 Others 156,182,280.55 149,042,374.67 Total 331,199,008.76 207,441,055.87 (5) The unrecognised deferred tax assets arising from deductible losses will expire in the following years RMB Amounts at the end of the period Amounts at the beginning of the period No expiry date – 1,209,672.78 2026 10,051,034.55 10,456,036.28 2027 284,882.27 284,882.27 2028 1,191,456.57 1,191,456.57 2029 1,562,465.22 1,562,465.22 2030 42,020,984.85 43,694,168.08 2031 119,905,904.75 – Total 175,016,728.21 58,398,681.20
Page 139
137 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 22. OTHER NON-CURRENT ASSETS RMB Closing balance Opening balance Carrying amount Impairment provision Carrying value Carrying amount Impairment provision Carrying value Prepayments for equipment and construction 388,000,565.65 – 388,000,565.65 392,654,117.66 – 392,654,117.66 Total 388,000,565.65 – 388,000,565.65 392,654,117.66 – 392,654,117.66 23. ASSETS WITH RESTRICTED OWNERSHIP OR RIGHT OF USE RMB Items Closing carrying value Opening carrying value Restriction Cash at bank and on hand 283,425,931.52 295,030,769.83 Bill deposits, pledged time deposits, pledge of electricity revenue, futures and option margins, letter of credit deposits, etc. Other current assets 470,527,513.35 202,000,000.00 Pledged time deposits to obtain credit facilities Investment properties 440,324,021.97 472,375,461.96 Pledged to banks to obtain credit facilities Fixed assets 3,139,517,269.09 3,250,105,211.23 Pledged to banks to obtain credit facilities Intangible assets 447,640,098.54 462,230,918.85 Pledged to banks to obtain credit facilities Total 4,781,434,834.47 4,681,742,361.87
Page 140
138 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 24. SHORT-TERM BORROWINGS (1) Classification of short-term borrowings RMB Items Closing balance Opening balance Mortgage borrowings 336,218,000.00 100,000,000.00 Guaranteed borrowings 200,000,000.00 266,806,400.00 Guaranteed and mortgage borrowings 623,718,080.00 329,633,600.00 Credit borrowings 270,272,500.00 – Borrowings arising from discounting of bills 130,000,000.00 136,040,837.67 Total 1,560,208,580.00 832,480,837.67 (2) As at the end of the period, the Group had no overdue short-term borrowings
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139 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 25. DERIVATIVE FINANCIAL LIABILITIES RMB Items Closing balance Opening balance Derivative financial liabilities not designated as hedging instruments – foreign exchange option contracts 3,660,087.00 1,667,461.00 Derivative financial liabilities not designated as hedging instruments – foreign exchange swap contracts 5,216,796.00 4,637,559.68 Total 8,876,883.00 6,305,020.68 26. BILLS PAYABLES RMB Closing balance Opening balance Bank acceptance bills 321,917,263.38 127,989,845.88 Total 321,917,263.38 127,989,845.88
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140 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 27. TRADE PAYABLES (1) Trade payables RMB Items Closing balance Opening balance Payables for goods 1,622,892,041.08 1,533,124,433.37 Payables for construction 2,250,301,537.64 2,454,130,176.68 Total 3,873,193,578.72 3,987,254,610.05 (2) Significant trade payables aged over 1 year RMB Items Closing balance Reason for outstanding or carried forward amounts Supplier A 316,559,856.17 Construction payables, not yet due for payment Total 316,559,856.17 Ŋ
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141 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 28. CONTRACT LIABILITIES RMB Items Closing balance Opening balance Advances from customers 43,900,934.48 44,465,850.49 Total 43,900,934.48 44,465,850.49 29. PAYROLL PAYABLE (1) Payroll payable RMB Items Opening balance Additions during the period Decreases during the period Closing balance I. Short-term employee benefits 101,225,383.44 391,009,327.31 408,329,925.51 83,904,785.24 II. Post-employment benefits – defined contribution plans 2,094,191.65 38,298,531.46 38,182,666.61 2,210,056.50 Total 103,319,575.09 429,307,858.77 446,512,592.12 86,114,841.74
Page 144
142 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Short-term employee benefits RMB Items Opening balance Additions during the period Decreases during the period Closing balance I. Wa ges, bonuses, allowances and subsidies 96,580,502.70 339,796,564.90 356,789,795.76 79,587,271.84 II. Employee welfare expenses 1,634,181.89 20,753,218.03 20,576,304.66 1,811,095.26 III. Social insurance premiums 1,355,407.43 22,531,747.99 22,431,820.00 1,455,335.42 Including: Me dical insurance premiums 1,117,962.11 17,744,821.46 17,751,855.76 1,110,927.81 Wo rk injury insurance premiums 170,547.47 3,814,649.65 3,771,900.36 213,296.76 Ma ternity insurance premiums 66,897.85 972,276.88 908,063.88 131,110.85 IV. Housing provident funds 1,053,958.00 6,780,218.93 6,926,798.00 907,378.93 V. Tr ade union funds and employee education expenses 601,333.42 1,147,577.46 1,605,207.09 143,703.79 Total 101,225,383.44 391,009,327.31 408,329,925.51 83,904,785.24
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143 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (3) Defined contribution plans RMB Items Opening balance Increases during the period Decreases during the period Closing balance 1. Basic pension insurance 2,039,927.66 37,050,620.11 36,938,721.96 2,151,825.81 2. Un employment insurance premiums 54,263.99 1,247,911.35 1,243,944.65 58,230.69 Total 2,094,191.65 38,298,531.46 38,182,666.61 2,210,056.50 The Group participates in the pension insurance and unemployment insurance schemes established by government authorities in accordance with the relevant regulations. Under these schemes, the Group and its subsidiaries other than the Vietnam subsidiaries contribute to such schemes at 16.00% and 0.50% of the basic salaries of the employees each month, and the subsidiaries of the Group located in Vietnam contribute at 17.50% and 1.00% of the basic salaries of the employees each month. Apart from the above monthly contributions, the Group has no further payment obligations. The corresponding expenditures are charged to profit or loss for the period when incurred. The amounts that the Group should contribute to the pension insurance and unemployment insurance schemes during the period were RMB37,050,620.11 and RMB1,247,911.35 respectively (for the six months ended 30 June 2025: RMB35,129,462.27 and RMB1,192,904.47 respectively). As at 30 June 2026, the Group still had accrued but unpaid contributions of RMB2,151,825.81 and RMB58,230.69 to the pension insurance and unemployment insurance schemes respectively.
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144 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 30. TAX PAYABLE RMB Category Amounts at the end of the period Amounts at the beginning of the period Corporate income tax 138,455,976.63 80,443,462.83 Value-added tax 53,435,875.29 19,918,814.44 Resource tax 8,234,034.53 7,224,195.64 Property tax 16,721,781.55 18,027,940.62 Land use tax 11,092,053.35 12,578,713.02 Urban maintenance and construction tax 2,427,293.30 3,731,956.80 Education surcharges and local education surcharges 2,018,837.25 3,161,830.23 Individual income tax 5,406,792.47 879,515.05 Others 4,377,797.02 4,710,537.33 Total 242,170,441.39 150,676,965.96 31. OTHER PAYABLES Items RMB Items Closing balance Opening balance Interests payable 23,026,619.40 45,223,547.09 Dividends payable 157,920.00 136,920.00 Other payables 110,409,931.45 147,218,629.47 Total 133,594,470.85 192,579,096.56
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145 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (1) Interests payable RMB Items Closing balance Opening balance Interests payable on convertible bonds 8,284,666.39 37,151,805.06 Interests payable on long-term borrowings with interest paid periodically and principal repaid at maturity 5,478,169.26 7,852,422.59 Interests payable on short-term borrowings 9,263,783.75 219,319.44 Total 23,026,619.40 45,223,547.09 (2) Dividends payable RMB Items Closing balance Opening balance Ordinary share dividends 157,920.00 136,920.00 Total 157,920.00 136,920.00
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146 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (3) Other payables RMB Items Closing balance Opening balance Deposits 62,818,187.75 52,340,321.36 Restricted share incentive plans 1,855,280.00 1,855,280.00 Freight and insurance premiums 40,484,878.60 37,089,822.41 Investment payables – 51,837,400.00 Others 5,251,585.10 4,095,805.70 Total 110,409,931.45 147,218,629.47 As at the end of the period, the Group had no other payables aged over one year with significant amounts. 32. NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR RMB Items Closing balance Opening balance Long-term borrowings due within one year 2,716,061,433.08 2,315,143,228.94 Lease liabilities due within one year 23,453,098.33 30,252,906.01 Long-term payables due within one year 107,969,868.54 47,989,504.57 Total 2,847,484,399.95 2,393,385,639.52
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147 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 33. OTHER CURRENT LIABILITIES RMB Items Closing balance Opening balance Output VAT to be carried forward 3,333,204.46 2,805,550.04 Total 3,333,204.46 2,805,550.04 34. LONG-TERM BORROWINGS RMB Items Closing balance Opening balance Mortgage and pledge borrowings 897,000,000.00 899,000,000.00 Guaranteed and pledge borrowings 1,945,177,110.20 2,139,132,463.81 Mortgage borrowings 219,000,000.00 159,000,000.00 Guaranteed borrowings 1,108,500,000.00 1,550,299,670.40 Guaranteed and mortgage borrowings 3,248,491,166.70 3,710,858,052.40 Credit borrowings 399,800,000.00 299,850,000.00 Less: Long-term borrowings due within one year 2,716,061,433.08 2,315,143,228.94 Total 5,101,906,843.82 6,442,996,957.67
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148 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 35. BONDS PAYABLES (1) Bonds payables RMB Items Closing balance Opening balance Bonds payables 4,137,000,172.66 4,065,908,075.91 Total 4,137,000,172.66 4,065,908,075.91 (2) Changes in bonds payables RMB Name of bonds Face value Issue date Term of bonds Issue amount Opening balance Issued during the period Interest accrued at face value Amortisation of premiums or discounts Converted into shares during the period Closing balance Fulaizhuan (Convertible Bond) 100 2022/5/20 6 years 4,000,000,000.00 4,065,908,075.91 – 31,134,246.58 102,243,073.43 16,730.10 4,137,000,172.66
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149 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (3) Description of the conversion conditions and conversion period of the convertible bonds With the approval of the China Securities Regulatory Commission (Zhengjianxuke [2022] No. 664), the Company publicly issued 40,000,000 A-share convertible bonds (the “Convertible Bonds”) on 20 May 2022, with a face value of RMB100 per bond, issued at par, with a total issue amount of RMB4,000,000,000.00 and a term of 6 years. The annual coupon rates of the Convertible Bonds are 0.3% for the first year, 0.5% for the second year, 1.0% for the third year, 1.5% for the fourth year, 1.8% for the fifth year and 2.0% for the sixth year. Interest is paid once a year, and the principal and the interest of the final year are repaid at maturity. The conversion period of the Convertible Bonds commences from the first trading day after the expiry of 6 months from the completion date of the issuance of the Convertible Bonds (26 May 2022) to the maturity date of the Convertible Bonds, i.e. from 28 November 2022 to 19 May 2028. The initial conversion price is RMB43.94 per share. If the Company distributes bonus shares, converts capital reserve into share capital, issues new shares (excluding the increase in share capital arising from the issue of the Convertible Bonds), makes rights issues or distributes cash dividends, the Company will adjust the conversion price in accordance with the prospectus. As at 30 June 2026, convertible bonds with a total face value of RMB128,000.00 had been converted into A-share ordinary shares of the Company, with a total of 2,964 shares converted. During the first half of 2026, convertible bonds with a face value of RMB12,000.00 were converted into A-share ordinary shares, with a total of 286 shares converted.
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150 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 36. LEASE LIABILITIES RMB Items Closing balance Opening balance Lease liabilities 779,749,171.91 796,607,945.79 Less: Le ase liabilities included in non-current liabilities due within one year 23,453,098.33 30,252,906.01 Total 756,296,073.58 766,355,039.78 The lease liabilities of the Group are analysed by maturity of the remaining undiscounted contractual obligations as follows: RMB Category Amounts at the end of the year Amounts at the beginning of the year Within 1 year 56,235,277.38 61,561,843.75 1 to 2 years 56,008,297.38 56,182,147.38 2 to 5 years 159,268,043.82 160,663,938.82 Over 5 years 938,824,644.39 964,493,728.04 Total 1,210,336,262.97 1,242,901,657.99
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151 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 37. LONG-TERM PAYABLES Items RMB Items Closing balance Opening balance Long-term payables 118,980,504.24 – Total 118,980,504.24 – (1) Long-term payables RMB Items Closing balance Opening balance Consideration payable for mining rights 226,950,372.78 47,989,504.57 Less: Lo ng-term payables included in non-current liabilities due within one year 107,969,868.54 47,989,504.57 Total 118,980,504.24 –
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152 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 38. ESTIMATED LIABILITIES RMB Items Closing balance Opening balance Reasons Environmental protection and land reclamation expenses 3,551,671.12 3,897,359.93 Accrued geological environment protection and land reclamation expenses of mines Total 3,551,671.12 3,897,359.93 Ŋ 39. DEFERRED INCOME RMB Items Opening balance Increases during the period Decreases during the period Closing balance Government grants 321,321,835.41 – 15,646,870.60 305,674,964.81 Total 321,321,835.41 – 15,646,870.60 305,674,964.81
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153 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 40. SHARE CAPITAL RMB Opening balance Changes during the period (+/-) Closing balance Conversion of convertible bonds Others Total share capital 585,720,058.25 71.50 – 585,720,129.75 41. OTHER EQUITY INSTRUMENTS RMB Outstanding financial instruments Beginning of the year Increase during the year Decrease during the year End of the year Quantity Carrying value Quantity Carrying value Quantity Carrying value Quantity Carrying value Convertible bonds 39,998,840.00 491,721,254.21 – – 120.00 1,475.21 39,998,720.00 491,719,779.00 Other equity instruments arise from the equity component of the issued convertible bonds; see Note “Bonds payables”.
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154 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 42. CAPITAL RESERVE RMB Items Opening balance Additions during the period Decreases during the period Closing balance Share premium 10,704,787,488.16 21,319.08 – 10,704,808,807.24 Other capital reserve 876,801.85 158,210.73 – 1,035,012.58 Total 10,705,664,290.01 179,529.81 – 10,705,843,819.82 43. TREASURY STOCK RMB Items Opening balance Additions during the period Decreases during the period Closing balance Treasury stock 301,856,607.47 73,460,710.83 – 375,317,318.30 The Company convened the 18th meeting of the 7th Board of Directors on 8 April 2026 and considered and approved the Resolution on the General Mandate to Repurchase Part of the H Shares of the Company for 2026, pursuant to which the Company may repurchase part of its H shares and hold them as treasury shares. The number of shares to be repurchased shall not exceed 10% of the total number of issued H shares of the Company at the time when the resolution is approved by the shareholders’ meeting, and the repurchase price on any repurchase date shall not be equal to or higher than 105% of the average closing price of the H shares on the Stock Exchange in the previous five trading days. The above resolution was approved at the annual general meeting for 2025 convened on 12 May 2026. During the reporting period, the Company repurchased an aggregate of 11,192,000 H shares, at a repurchase price range of HK$5.96 per share to HK$7.98 per share, with an aggregate amount paid of HK$84,192,890.00 (equivalent to RMB73,460,710.83), increasing treasury stock by RMB73,460,710.83.
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155 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 44. OTHER COMPREHENSIVE INCOME RMB Items Amounts arising during the period Closing balance Opening balance Amounts before income tax for the period Less: Income tax expense Attributable to the parent company Attributable to non-controlling interests I. Ot her comprehensive income that will not be reclassified to profit or loss – – – – – – II. Ot her comprehensive income that will be reclassified to profit or loss -140,237,601.82 -76,517,835.82 – -75,191,159.04 -1,326,676.78 -215,428,760.86 – Ex change differences on translation of foreign currency financial statements -140,237,601.82 -76,517,835.82 – -75,191,159.04 -1,326,676.78 -215,428,760.86 Total other comprehensive income -140,237,601.82 -76,517,835.82 – -75,191,159.04 -1,326,676.78 -215,428,760.86 45. SPECIAL RESERVE RMB Items Opening balance Increases during the period Decreases during the period Closing balance Work safety expenses 85,214,090.18 14,968,142.43 924,017.53 99,258,215.08 Total 85,214,090.18 14,968,142.43 924,017.53 99,258,215.08
Page 158
156 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 46. SURPLUS RESERVE RMB Items Opening balance Additions during the period Decreases during the period Closing balance Statutory surplus reserve 293,915,529.38 – – 293,915,529.38 Total 293,915,529.38 – – 293,915,529.38 47. UNDISTRIBUTED PROFIT RMB Items Current period Previous year Undistributed profit at the beginning of the period 10,794,884,367.54 9,814,310,237.19 Add: Ne t profit attributable to shareholders of the parent company for the period -363,017,628.12 980,574,130.35 Less: Di vidends payable on ordinary shares 349,435,785.90 – Undistributed profit at the end of the period 10,082,430,953.52 10,794,884,367.54
Page 159
157 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 48. OPERATING REVENUE AND OPERATING COSTS (1) Operating revenue and operating costs RMB Items Current period Previous period Revenue Costs Revenue Costs Principal operations 6,636,444,569.10 6,106,378,746.44 7,583,627,241.44 6,551,619,523.26 Other operations 31,765,555.89 16,657,828.53 153,400,894.62 98,301,623.16 Total 6,668,210,124.99 6,123,036,574.97 7,737,028,136.06 6,649,921,146.42
Page 160
158 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Disaggregation of operating revenue and operating costs RMB Total Contract category Operating revenue Operating costs Type of goods Photovoltaic glass 5,861,594,648.96 5,467,162,117.32 Household glass 119,791,347.87 103,799,991.52 Engineering glass 217,900,539.17 182,587,747.26 Float glass 101,865,655.17 114,099,244.42 Electricity generation revenue 223,379,079.99 145,206,798.10 Mining products 111,913,297.94 93,522,847.82 Other operations 31,765,555.89 16,657,828.53 By operating region China 4,295,950,289.77 4,357,957,385.92 Asia (excluding China) 1,590,641,701.26 1,166,184,839.00 Europe 64,442,805.56 55,018,595.38 North America 708,199,130.09 536,316,001.47 Others 8,976,198.31 7,559,753.20 By sales channel Direct sales 6,608,827,272.20 6,050,857,090.60 Traders 59,382,852.79 72,179,484.37 Total 6,668,210,124.99 6,123,036,574.97
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159 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (3) Description of performance obligations Items Timing of satisfaction of performance obligations Significant payment terms Nature of goods committed to be transferred Whether the Company is the principal Amounts expected to be refunded to customers Types of warranties provided and related obligations Domestic product sales Delivery to the agreed place of delivery under the contracts or self-collection by the buyers, with acceptance confirmed by the buyers Mainly on credit, with credit terms of 30 –120 days after acceptance of goods for major customers Glass products, mining products, etc. Yes Not applicable Provides warranties that the goods sold meet the established standards. Where the products sold by the Group have quality defects, customers are entitled to return or exchange the goods, which does not constitute a separate performance obligation. Export product sales For EXW terms, upon pick-up by the carrier designated by the buyer; for FOB, CIF and FCA terms, upon completion of export customs declaration procedures in accordance with the contracts and shipment of the goods over the ship’s rail; for DDP and DAP terms, upon delivery of the goods to the delivery place designated by the buyer Electricity generation business Upon transmission of electricity to the lines designated by the State Grid Credit period of 30 days Electricity Yes Not applicable Not applicable
Page 162
160 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 49. TAXES AND SURCHARGES RMB Items Current period Previous period Resource tax 15,201,208.93 9,651,485.01 Urban maintenance and construction tax 8,730,139.33 4,217,874.96 Education surcharges 8,026,339.89 4,023,633.92 Stamp duty 4,166,316.96 4,518,866.12 Property tax 29,109,346.26 23,422,062.02 Environmental protection tax 2,366,632.97 3,695,040.91 Water conservancy construction special funds 2,741,810.31 3,147,516.01 Land use tax 18,624,117.10 16,691,318.18 Others 2,363,609.52 1,156,654.34 Total 91,329,521.27 70,524,451.47 50. SELLING EXPENSES RMB Items Current period Previous period Container frame usage fees 14,828,935.07 18,077,395.02 Employee compensation and welfare expenses 8,483,549.18 8,102,150.24 Marketing and promotion expenses 304,568.32 868,817.67 Depreciation and amortisation 195,614.07 205,327.90 Others 5,441,391.10 4,329,633.57 Total 29,254,057.74 31,583,324.40
Page 163
161 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 51. GENERAL AND ADMINISTRATIVE EXPENSES RMB Items Current period Previous period Employee compensation and welfare expenses 68,209,894.24 63,498,815.89 Equity-settled share-based payments 158,210.73 4,940,746.42 Depreciation and amortisation 84,761,723.85 30,985,854.78 Labour costs 4,339,757.30 1,367,934.98 Intermediary service fees 7,517,980.16 5,087,696.40 Greening and environmental protection expenses 7,313,015.04 9,658,505.63 Office expenses 8,848,299.38 8,149,455.44 Rental expenses 5,064,801.28 7,127,368.53 Entertainment expenses 1,255,558.95 879,967.59 Transportation expenses 1,906,197.39 1,847,407.87 Travel expenses 1,821,525.01 1,799,269.44 Property insurance premiums 493,780.28 402,738.75 Repair expenses 1,374,428.82 106,239.16 Others 8,764,273.08 8,919,117.67 Total 201,829,445.51 144,771,118.55
Page 164
162 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 52. RESEARCH AND DEVELOPMENT EXPENSES RMB Items Current period Previous period Employee compensation and welfare expenses 48,290,194.64 54,437,820.13 Direct material expenses 191,465,412.11 139,938,478.78 Depreciation and amortisation 15,119,587.28 18,069,254.08 Others 1,142,669.34 2,290,482.18 Total 256,017,863.37 214,736,035.17 53. FINANCIAL EXPENSES RMB Items Current period Previous period Interest expenses on borrowings 247,733,829.68 266,176,196.06 Less: Interest income 50,256,744.53 40,217,174.01 Handling charges 2,666,949.23 2,357,710.08 Exchange gains and losses 55,283,661.76 -22,707,014.94 Total 255,427,696.14 205,609,717.19
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163 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 54. OTHER INCOME RMB Classification by nature Current period Previous period Government grants related to assets 15,646,870.60 12,113,098.35 Government grants related to income 10,988,984.20 7,363,516.65 Additional VAT deduction 15,276,191.71 25,613,758.50 VAT exemption for recruitment of retired soldiers and persons lifted out of poverty 77,250.00 995.75 Refunded individual income tax handling fees 319,581.24 500,780.30 Total 42,308,877.75 45,592,149.55 55. INVESTMENT INCOME RMB Items Current period Previous period Investment income from disposal of derivative financial instruments 1,429,697.01 -279,813.05 Investment income from long-term equity investments under the equity method 13,004,132.13 17,203,819.27 Investment income from disposal of trading financial assets 2,733,362.99 2,938,449.04 Gains (losses) from disposal of long-term equity investments -19,188.91 – Total 17,148,003.22 19,862,455.26
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164 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 56. CREDIT IMPAIRMENT LOSS RMB Items Current period Previous period Credit impairment gains (losses) on bills receivables 1,804,664.71 1,585,011.22 Credit impairment gains (losses) on trade receivables -762,811.13 11,685,588.53 Total 1,041,853.58 13,270,599.75 57. ASSET IMPAIRMENT LOSS RMB Items Current period Previous period Losses on diminution in value of inventories 98,462,243.64 113,414,217.79 Impairment losses on fixed assets 102,809,104.69 140,503,642.51 Total 201,271,348.33 253,917,860.30 58. GAINS ON DISPOSAL OF ASSETS RMB Items Current period Previous period Gains on disposal of assets 3,360,349.05 29,670,956.68 Total 3,360,349.05 29,670,956.68
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165 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 59. NON-OPERATING INCOME RMB Items Current period Previous period Amounts included in non-recurring gains and losses for the period Miscellaneous income 4,654,246.96 1,735,381.30 4,654,246.96 Total 4,654,246.96 1,735,381.30 4,654,246.96 60. NON-OPERATING EXPENSES RMB Items Current period Previous period Amounts included in non-recurring gains and losses for the period Donations 141,000.00 – 1,251,836.49 Others 3,994,180.73 375,472.64 2,883,344.24 Total 4,135,180.73 375,472.64 4,135,180.73
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166 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 61. INCOME TAX EXPENSE RMB Items Current period Previous period Current income tax expense 81,820,744.17 40,396,221.15 Additional (refunded) income tax for the previous year 2,405,353.55 7,996,343.97 Deferred income tax expense -149,181,867.22 -39,011,602.26 Total -64,955,769.50 9,380,962.86 Reconciliation between accounting profit and income tax expense RMB Items Current period Total profit -427,726,884.82 Income tax expense calculated at the tax rate of 15% -64,159,032.73 Effect of different tax rates applicable to subsidiaries 12,955,005.23 Effect of non-deductible costs, expenses and losses 9,266,577.36 Effect of additional (refunded) income tax for the previous period 2,405,353.55 Tax effect of tax incentives -36,091,132.53 Tax effect of using deductible temporary differences or deductible losses for which deferred tax assets had not been recognised in previous periods -674,995.12 Tax effect of deductible temporary differences or deductible losses for which deferred tax assets have not been recognised for the current year 31,655,934.55 Changes in the opening balances of deferred tax assets/ liabilities due to tax rate adjustments 3,509,458.42 Effect of additional deduction of research and development expenses -23,822,938.23 Income tax expense -64,955,769.50
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167 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 62. ITEMS IN THE STATEMENT OF CASH FLOWS (1) Cash related to operating activities Cash received relating to other operating activities RMB Items Current period Previous period Government grants 11,385,815.44 90,679,996.95 Interest income 46,914,443.14 36,388,262.36 Operating deposits 7,629,058.53 14,777,800.00 Others 4,654,246.96 2,964,038.02 Total 70,583,564.07 144,810,097.33 Cash paid relating to other operating activities RMB Items Current period Previous period Payments for expenses 251,887,417.97 184,934,927.66 Operating deposits 32,060,402.77 7,972,470.90 Charitable donation expenses 141,000.00 – Handling charges 2,666,949.23 2,357,710.08 Others 3,994,180.73 2,369,407.39 Total 290,749,950.70 197,634,516.03
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168 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Cash related to investing activities Significant cash received relating to investing activities RMB Items Current period Previous period Redemption of bank wealth management products 2,099,966,373.72 2,560,000,000.00 Redemption of bank time deposits 169,166,023.50 50,000,000.00 Transfer of negotiable large- denomination time deposits of banks – 140,000,000.00 Total 2,269,132,397.22 2,750,000,000.00 Significant cash paid relating to investing activities RMB Items Current period Previous period Purchase of bank wealth management products 2,160,016,373.72 2,220,000,000.00 Purchase of bank time deposits 208,259,164.86 200,126,000.00 Additional investments in associates 154,621,925.00 – Total 2,522,897,463.58 2,420,126,000.00
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169 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Cash received relating to other investing activities RMB Items Current period Previous period Recovery of restricted cash such as bill deposits 1,110,030,678.82 734,102,620.73 Construction deposits 60,943,316.64 9,439,816.30 Total 1,170,973,995.46 743,542,437.03 Cash paid relating to other investing activities RMB Items Current period Previous period Payments of restricted cash such as bill deposits 1,110,030,679.10 724,063,824.99 Construction deposits 3,344,816.30 12,647,000.00 Total 1,113,375,495.40 736,710,824.99
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170 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (3) Cash related to financing activities Cash received relating to other financing activities RMB Items Current period Previous period Recovery of restricted cash such as bill deposits 131,239,470.37 602,259,396.77 Recovery of matured time deposits 273,050,000.00 207,000,000.00 Total 404,289,470.37 809,259,396.77 Cash paid relating to other financing activities RMB Items Current period Previous period Payments of restricted cash such as bill deposits 92,346,147.00 230,284,789.89 Share repurchases 73,460,710.83 74,519,132.42 Purchase of time deposits for pledge 200,000,000.00 67,000,000.00 Purchase of minority interests – 1,000,000.00 Lease payments 34,059,746.50 28,261,715.37 Total 399,866,604.33 401,065,637.68
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171 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Changes in liabilities arising from financing activities RMB Items Opening balance Increases during the period – cash changes Increases during the period – non-cash changes Decreases during the period – cash changes Decreases during the period – non- cash changes Closing balance Other payables – repurchase obligations under employee share schemes 1,855,280.00 – – – – 1,855,280.00 Other payables – dividends payable and interests payable 45,360,467.09 – 512,488,163.08 -534,660,905.52 -3,179.04 23,184,545.61 Short-term borrowings 832,480,837.67 1,635,515,975.14 – -850,867,600.00 -56,920,632.81 1,560,208,580.00 Long-term borrowings (including those due within one year) 8,758,140,186.61 527,386,300.80 – -1,456,782,995.30 -10,775,215.21 7,817,968,276.90 Bonds payables 4,065,908,075.91 – 71,108,826.85 – -13,574.37 4,137,003,328.39 Lease liabilities (including those due within one year) 796,607,945.79 – 17,200,971.96 -34,059,745.84 – 779,749,171.91 Total 14,500,352,793.07 2,162,902,275.94 600,797,961.89 -2,876,371,246.66 -67,712,601.43 14,319,969,182.81
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172 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 63. SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CASH FLOWS (1) Supplementary information to the statement of cash flows RMB Supplementary information to the statement of cash flows Current period Previous period 1. Reconciliation of net profit to cash flows from operating activities Net profit -362,771,115.32 265,957,379.79 Add: Asset impairment provisions 201,271,348.33 253,917,860.30 Credit loss provisions (gains) -1,041,853.58 -13,270,599.75 Amortisation of investment properties 12,787,074.96 12,802,210.85 Depreciation of fixed assets 821,099,985.91 764,467,518.57 Depreciation of right-of-use assets 20,209,091.15 19,740,359.69 Amortisation of intangible assets 263,201,044.70 123,397,735.31 Amortisation of long-term prepaid expenses 31,170,570.15 29,886,916.32 Losses (gains) on disposal of fixed assets, intangible assets and other long-term assets -3,360,349.04 -29,670,956.68 (Gains) losses from changes in fair value 2,148,652.31 382,209.81 Financial expenses 257,533,909.12 252,786,904.12 Investment income -17,148,003.22 -19,862,455.26 Decrease (increase) in deferred tax assets -44,680,014.68 151,178.98 Increase (decrease) in deferred tax liabilities -104,501,852.54 -39,162,781.24 (Increase) decrease in inventories -143,074,511.58 -338,412,036.69 Increase in operating receivables -46,829,680.23 89,944,358.73
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173 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Supplementary information to the statement of cash flows Current period Previous period Increase in operating payables 455,425,370.58 29,665,949.96 Amortisation of deferred income -15,646,870.60 -12,113,098.35 Increase in special reserve 14,968,142.43 5,498,996.69 Equity-settled share-based payments 158,210.73 4,595,624.10 Net cash flows from operating activities 1,340,919,149.58 1,400,703,275.25 2. Significant investing and financing activities not involving cash Settlement of construction and equipment payables by endorsement of bills receivables 328,907,948.82 444,726,812.67 New right-of-use assets during the period 6,476,452.39 26,108,117.79 Borrowings formed by discounting of bills receivables 38,500,855.14 8,886,467.84 3. Net changes in cash and cash equivalents Closing balance of cash 3,503,280,092.37 4,201,412,267.04 Less: Opening balance of cash 3,719,428,902.79 4,511,627,060.96 Add: Closing balance of cash equivalents – – Less: Opening balance of cash equivalents – – Net increase in cash and cash equivalents -216,148,810.42 -310,214,793.92
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174 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (3) Composition of cash and cash equivalents RMB Items Amounts at the end of the period Amounts at the beginning of the period I. Cash 3,503,280,092.37 3,719,428,902.79 Including: Cash on hand 517,025.43 2,173,089.90 Bank deposits available for payment on demand 3,502,763,066.94 3,717,255,812.89 Other cash at bank and on hand available for payment on demand – – II. Cash equivalents – – Closing balance of cash and cash equivalents 3,503,280,092.37 3,719,428,902.79
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175 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 64. FOREIGN CURRENCY MONETARY ITEMS (1) Foreign currency monetary items Items Foreign currency balances at the end of the period Translation exchange rates Translated RMB balances at the end of the period Cash at bank and on hand Including: USD 186,595,651.00 6.8109 1,270,884,319.39 EUR 2,560,204.65 7.7671 19,885,365.53 JPY 92,466,810.00 0.0420 3,887,767.03 HKD 22,252,117.78 0.8685 19,327,076.89 GBP 3,774.68 9.0145 34,026.85 AUD 241,912.23 4.6804 1,132,246.00 SGD 20,310.00 5.2605 106,840.76 CHF 7,959,099.92 8.4228 67,037,906.82 Trade receivables Including: USD 109,405,219.03 6.8109 745,148,006.29 EUR 356,067.90 7.7671 2,765,614.99 Other receivables Including: USD 72,906.85 6.8109 496,561.26 HKD 3,970.00 0.8685 3,448.14 Other current assets Including: SGD 25,540,000.00 5.2605 134,353,170.00 HKD 78,377,000.00 0.8686 68,074,343.35 Trade payables Including: USD 3,872,355.63 6.8109 26,374,226.96 EUR 93,500.00 7.7671 726,223.85 Borrowings Including: USD 96,200,000.00 6.8109 655,208,580.00
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176 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Description of significant overseas operating entities Name of subsidiary Principal place of overseas operations Functional currency Basis for selection Flat Glass (Vietnam) Vietnam Vietnamese Dong Determined based on the economic environment in which it operates 65. LEASES (1) As lessee As a lessee, the lease assets leased by the Group are land, farmers’ roofs and buildings used in the course of operations. The Vietnam subsidiary of the Group leases a number of parcels of land in Vietnam with lease terms ranging from 29 to 42 years; the subsidiary of the Group, Fulaite, leases the roofs of a number of farmers with lease terms ranging from 25 to 30 years; and the subsidiary of the Group, Sanli Mining, leases buildings with a lease term of 2 years and 5 months. The lease terms are all fixed lease payments. Short-term leases are leases of certain buildings and wharves. The aforementioned right-of-use assets cannot be used for borrowing pledges, guarantees or other purposes. As at 30 June 2026, apart from the deposits paid by the Group to the lessors as security interests in the leased assets, no other security clauses are attached to the lease agreements. The leased assets cannot be used as security for borrowings. RMB Items Current period Interest expenses on lease liabilities 16,275,280.90 Short-term lease expenses under the simplified approach included in profit or loss for the period 6,456,306.71 Total cash outflows relating to leases 42,996,971.76
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177 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) As lessor Operating leases as lessor RMB Items Lease income Including: Income relating to variable lease payments not included in lease receipts Property leases 4,337,243.13 – Undiscounted lease receipts for the next five years RMB Annual undiscounted lease receipts Items Amounts at the end of the period Amounts at the beginning of the period First year 9,731,043.27 6,862,756.49 Second year 8,288,487.41 7,000,894.31 Third year 7,814,108.65 6,605,796.01 Fourth year 7,031,730.83 6,400,000.00 Fifth year 6,550,000.00 6,500,000.00 Total undiscounted lease receipts after five years 39,415,370.16 33,369,446.81
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178 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 RESEARCH AND DEVELOPMENT EXPENDITURE Disclosed by nature of expenditure RMB Items Current period Previous period Employee compensation and welfare expenses 48,290,194.64 54,437,820.13 Direct material expenses 191,465,412.11 139,938,478.78 Depreciation and amortisation 15,119,587.28 18,069,254.08 Others 1,142,669.34 2,290,482.18 Total 256,017,863.37 214,736,035.17 Including: Ex pensed research and development expenditure 256,017,863.37 214,736,035.17 Capitalised research and development expenditure – –
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179 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. INTERESTS IN OTHER ENTITIES 1. Interests in subsidiaries Level Name of subsidiary Principal place of operations and place of incorporation Currency Registered capital Nature of business Shareholding and voting rights (%) Method of acquisition Direct Indirect 1 Zhejiang Flat Glass Co., Ltd. Zhejiang, China RMB 10,000,000.00 Manufacture and sale of architectural or household glass 100 – Establishment 2 Zhejiang Jiafu Glass Co., Ltd. Zhejiang, China RMB 150,000,000.00 Manufacture and sale of photovoltaic glass 100 – Establishment 2.1 Flat Glass (Hong Kong) Investment Limited Hong Kong, China HKD 1,000,000.00 Investment – 100 Establishment 3 Shanghai Flat Glass Co., Ltd. Shanghai, China RMB 70,000,000.00 Processing of engineering glass 100 – Establishment 4 Anhui Flat Glass Photovoltaic Glass Co., Ltd. Anhui, China RMB 2,500,000,000.00 Manufacture and sale of photovoltaic glass 100 – Establishment 4.1 Fengyang Flat Glass Natural Gas Pipeline Co., Ltd. Anhui, China RMB 20,000,000.00 Installation and sale of natural gas pipelines – 100 Establishment 4.2 Fengyang Flat Glass New Energy Technology Co., Ltd. Anhui, China RMB 10,000,000.00 Investment, construction, operation and maintenance of new energy power plants – 100 Establishment 4.3 Anhui Flat Glass Supply Chain Management Co., Ltd. Anhui, China RMB 5,000,000.00 Supply chain management services – 100 Establishment 4.4 Anhui Flat Glass Photovoltaic Materials Co., Ltd. Anhui, China RMB 1,000,000,000.00 Mining operation and sale of quartz ore – 100 Establishment 4.4.1 Anhui Sanli Mining Co., Ltd. Anhui, China RMB 170,000,000.00 Mining operation and sale of quartz ore – 100 Acquisition 4.4.2 Fengyang Fusha Technology Co., Ltd. Anhui, China RMB 1,000,000.00 Mining operation and sale of quartz ore – 100 Establishment 4.4.3 Fengyang County Fuheng Mining Technology Co., Ltd. Anhui, China RMB 20,000,000.00 Mining operation and sale of quartz ore – 100 Establishment 4.5 Anhui Dahua Oriental Mining Co., Ltd. Anhui, China RMB 50,000,000.00 Mining operation and sale of quartz ore – 100 Acquisition
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180 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Level Name of subsidiary Principal place of operations and place of incorporation Currency Registered capital Nature of business Shareholding and voting rights (%) Method of acquisition Direct Indirect 5 Flat Glass (Hong Kong) Limited Hong Kong, China USD 10,000,000.00 Export of glass 100 – Establishment 5.1 Flat Glass (Vietnam) Co., Ltd. Vietnam VND 1,752,800,000,000.00 Manufacture and sale of photovoltaic glass – 100 Establishment 5.1.1 Flat Glass (Vietnam) Import and Export Trading Co., Ltd. Vietnam VND 2,286,000,000.00 Import and export trading – 100 Establishment 5.2 Zhejiang Fubo New Materials Co., Ltd. Zhejiang, China USD 10,000,000.00 Production and sale of non- metallic mineral products – 100 Establishment 6 Jiaxing Flat Glass New Energy Technology Co., Ltd. Zhejiang, China RMB 10,000,000.00 Investment, construction, operation and maintenance of new energy power plants 100 – Establishment 7 Flat Glass (Jiaxing) Import and Export Trading Co., Ltd. Zhejiang, China RMB 7,000,000.00 Import and export trading 100 – Establishment 8 Flat Glass (Nantong) Photovoltaic Glass Co., Ltd. Jiangsu, China RMB 510,000,000.00 Manufacture and sale of photovoltaic glass 41.18 58.82 Establishment 8.1 Nantong Flat Glass Natural Gas Co., Ltd. Jiangsu, China RMB 10,000,000.00 Installation and sale of natural gas pipelines – 100 Establishment 8.2 Nantong Yuantong Port Co., Ltd. Jiangsu, China RMB 50,000,000.00 Port operations – 100 Acquisition 8.3 Nantong Tongfu New Materials Co., Ltd. Jiangsu, China RMB 10,000,000.00 Research and development of new materials technology – 100 Establishment 8.4 Nantong Flat Glass New Materials Co., Ltd. Jiangsu, China RMB 10,000,000.00 Research and development of new materials technology – 100 Establishment 9 Shanghai Flat Glass Technology Development Co., Ltd. Shanghai, China RMB 10,000,000.00 Research and development of new materials technology 100 – Establishment 10 Jiaxing Flat Glass Intelligent Equipment Co., Ltd. Zhejiang, China RMB 30,000,000.00 Manufacture and sale of intelligent equipment 96.41 3.59 Establishment 11 Jiaxing Kunlun Flat Glass Energy Management Co., Ltd. Jiangsu, China RMB 10,000,000.00 Energy management 100 – Establishment 12 Flat Glass (Guangxi) Guangneng Co., Ltd. Guangxi, China RMB 100,000,000.00 Manufacture and sale of photovoltaic glass 100 – Establishment
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181 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Level Name of subsidiary Principal place of operations and place of incorporation Currency Registered capital Nature of business Shareholding and voting rights (%) Method of acquisition Direct Indirect 13 Flat Glass Guangneng Co., Ltd. Zhejiang, China RMB 100,000,000.00 Development and sale of emerging energy technologies and equipment 100 – Establishment 14 Zhejiang Fulaite New Energy Co., Ltd. and its subsidiaries Zhejiang, China RMB 400,000,000.00 Electricity generation and sale of photovoltaic modules 82 – Establishment, Acquisition 15 Flat Glass (Yibin) Guangneng Co., Ltd. Sichuan, China RMB 100,000,000.00 Production and sale of non- metallic mineral products 100 – Establishment 16 FLAT SOLAR TECHNOLOGY PTE. LTD. Singapore SGD 10,000.00 Investment 100 – Establishment 16.1 PT FLATSOLAR ENERGY INDONESIA Indonesia IDR 1,200,000,000,000.00 Manufacture and sale of photovoltaic glass – 95 Establishment 16.2 PT FlatGlobal Investment Indonesia Indonesia IDR 10,000,000,000.00 Investment – 100 Establishment 16.3 FLAT TRADING USA CO. USA USD 100.00 Import and export trading – 100 Establishment 17 Flat Glass (Shanxi) Guangneng Co., Ltd. Shanxi, China RMB 100,000,000.00 Production and sale of non- metallic mineral products 100 – Establishment 18 Jiaxing Fulian Logistics Co., Ltd. Zhejiang, China RMB 2,000,000.00 Port operations, cargo handling and loading 100 – Establishment 19 Zhongda Quartz Development (Anhui) Group Co., Ltd. Anhui, China RMB 140,000,000.00 Mining operation and sale of quartz ore 100 – Acquisition 20 FLAT INTERNATIONAL SOLAR TRADE PTE. LTD Singapore SGD 1,000.00 Import and export trading 100 – Establishment 21 Flat Glass Nanomaterials (Zhejiang) Co., Ltd. Zhejiang, China RMB 10,000,000.00 Production and sale of chemical products 100 – Establishment
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182 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 2. Interests in joint ventures and associates Name of joint venture or associate Principal place of operations and place of incorporation Nature of business Shareholding and voting rights (%) Accounting treatment for investments in associates Jiaxing Kaihong Flat Supply Chain Management Co., Ltd. and its subsidiaries Zhejiang, China Freight transport 40 Equity method Fengyang PetroChina Kunlun Gas Co., Ltd. Anhui, China Installation, sale and operation of natural gas pipelines 35 Equity method Jiaxing Gas Group Co., Ltd. Zhejiang, China Installation, sale and operation of natural gas pipelines 4.53 Equity method Flat Glass (Jiaxing) Energy Supply Chain Co., Ltd. Zhejiang, China Wholesale and sale of chemical products 45 Equity method PT Sky Brightness Metal Industry Indonesia Construction and operation of power plants 50 Equity method Shanghai Fulairuicheng New Materials Co., Ltd. and its subsidiaries Zhejiang, China Research, development, promotion and sale of new materials technology 40 Equity method Basis for significant influence with less than 20% voting rights: The Group holds 4.53% of the equity interests in Jiaxing Gas, an H-share listed company. As the Group is entitled to appoint one non-executive director under the articles of association of Jiaxing Gas and is able to participate in its operating and financial decisions, the Group is able to exercise significant influence over the operations and finances of Jiaxing Gas, and therefore accounts for the investment in Jiaxing Gas under the equity method.
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183 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (1) Aggregated financial information of immaterial joint ventures and associates RMB Amounts at the end of the period/ amounts for the current period Amounts at the beginning of the period/amounts for the previous period Associates: Total carrying value of investments 286,205,919.18 187,979,762.05 Aggregated amounts calculated at the shareholding percentages for the following items – Net profit 13,004,132.13 17,203,819.27 – Other comprehensive income – – – Total comprehensive income 13,004,132.13 17,203,819.27 (2) There are no significant restrictions on the ability of the associates to transfer funds to the Group (3) The Group has no contingent liabilities relating to investments in associates
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184 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 GOVERNMENT GRANTS 1. Liabilities relating to government grants RMB Financial statement captions Opening balance Government grants newly received during the period Transferred to other income during the period Closing balance Related to assets/income Deferred income 321,321,835.41 – 15,646,870.60 305,674,964.81 Related to assets Total 321,321,835.41 – 15,646,870.60 305,674,964.81 Ŋ 2. Government grants recognised in profit or loss RMB Classification Amount for the current period Amount for the previous period Related to assets 15,646,870.60 12,113,098.35 Related to income 10,988,984.20 7,363,516.65 Total 26,635,854.80 19,476,615.00
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185 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. RISKS RELATING TO FINANCIAL INSTRUMENTS Risks of financial instruments The main financial instruments of the Group include cash at bank and on hand, trading financial assets, derivative financial assets, bills receivables, trade receivables, financing receivables, other receivables, bank time deposits included in other current assets, debt investments, other debt investments, derivative financial liabilities, bills payables, trade payables, other payables, bonds payables and borrowings. The details of each financial instrument are described as follows: RMB Items Amounts at the end of the period Amounts at the beginning of the period Financial assets: Measured at amortised cost Cash at bank and on hand 3,786,706,023.89 4,014,459,672.62 Bills receivables 632,208,068.91 1,016,212,275.03 Trade receivables 2,968,757,968.53 2,428,708,501.94 Other receivables 62,220,053.60 97,757,698.58 Other current assets (bank time deposits) 470,527,513.55 377,653,709.50 Non-current assets due within one year (debt investments) – 140,576,000.00 Debt investments 2,526,000.00 126,000.00 At fair value through profit or loss Trading financial assets 540,065,480.45 480,018,805.88 Derivative financial assets 2,083,180.44 1,656,645.00 At fair value through other comprehensive income Financing receivables 625,860,210.87 1,124,553,338.33 Other debt investments 61,630,356.18 290,377,868.35 Non-current assets due within one year (other debt investments) 232,089,813.56 –
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186 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Items Amounts at the end of the period Amounts at the beginning of the period Financial liabilities: Measured at amortised cost Bills payables 321,917,263.38 127,989,845.88 Trade payables 3,873,193,578.72 3,987,254,610.05 Other payables (excluding interests payable) 110,567,851.45 147,355,549.47 Bonds payables (including interests payable) 4,145,284,839.05 4,103,059,880.97 Borrowings (including interests payable) 9,392,918,809.91 9,598,692,766.31 At fair value through profit or loss Derivative financial liabilities 8,876,883.00 6,305,020.68 The risks relating to these financial instruments, and the risk management policies adopted by the Group to reduce these risks, are described below. The management of the Group manages and monitors these risk exposures to ensure that the risks are controlled within the prescribed limits.
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187 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 1. Risk management objectives and policies The Group’s objective in risk management is to achieve an appropriate balance between risk and return, minimise the adverse impact of risks on the Group’s operating results, and maximise the interests of the shareholders and other equity investors. Based on this risk management objective, the basic strategy of the Group’s risk management is to identify and analyse the various risks faced by the Group, establish appropriate risk tolerance limits and carry out risk management, and supervise the various risks in a timely and reliable manner, so as to control the risks within the prescribed limits. 1.1 Market risk The Group’s business exposes it to financial risks arising from changes in interest rates and foreign exchange rates. The Group considers that the above risks faced during the current period, or the manner in which it manages and measures such risks, have not changed compared with previous years. 1.1.1 Foreign exchange risk Foreign exchange risk is the risk of loss arising from changes in exchange rates. The principal business activities of the Company and its domestic subsidiaries are denominated and settled in RMB; the subsidiary of the Group located in Vietnam mainly conducts its business and settles in Vietnamese Dong. Part of the Group’s transactions are settled in currencies other than the functional currency, including USD, EUR, JPY, HKD, GBP and AUD, and the Group is exposed to foreign exchange risk arising therefrom.
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188 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 As at 30 June 2026, the foreign currency monetary assets and liabilities of the Group are set out in the table below. The foreign exchange risk arising from such foreign currency balances of assets and liabilities (see Note “Foreign currency monetary items”) may affect the operating results of the Group. RMB Items Amounts at the end of the period Amounts at the beginning of the period Cash at bank and on hand 1,355,007,063.66 1,448,582,943.24 Trade receivables 747,913,621.28 989,828,039.41 Other receivables 500,009.40 51,963,046.66 Other current assets (bank time deposits) 202,427,513.35 – Debt investments due within one year – 140,576,000.00 Trade payables 27,100,450.81 22,461,871.95 Other payables – 51,837,400.00 Borrowings 655,208,580.00 654,239,670.40 The Group closely monitors exchange rate movements and has formulated relevant policies to reduce foreign exchange risk. The Group reduces foreign exchange risk through foreign exchange forward contracts and foreign exchange option contracts. As at 30 June 2026, the Group had entered into such contracts in respect of foreign currency monetary assets equivalent to RMB1,001,117,017.17 (equivalent to USD146,987,478.48).
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189 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. 1.1.2 Interest rate risk The risk of changes in the cash flows of the Group’s financial instruments arising from changes in interest rates mainly relates to floating-rate bank borrowings and floating-rate bank deposits. As at 30 June 2026, the amount of the Group’s floating-rate borrowings was RMB8,498,135,076.90 (31 December 2025: RMB8,733,140,186.61). The Group considers that the impact of interest rate changes on floating-rate bank deposits is not significant. The management of the Group closely monitors interest rate risk. The Group’s policy is to maintain the floating rates of these borrowings, and there are currently no arrangements such as interest rate swaps. 1.2 Credit risk As at 30 June 2026, the maximum credit risk exposure that may cause credit losses of the Group mainly arises from losses on the financial assets of the Group caused by the failure of the counterparties to perform their obligations, and the financial guarantees undertaken by the Group (without taking into account available collateral or other credit enhancements), including: cash at bank and on hand, bills receivables, trade receivables, financing receivables, other receivables, bank time deposits included in other current assets, debt investments, other debt investments, etc., as well as trading financial assets and derivative financial assets not included in the scope of impairment assessment. As at the balance sheet date, the carrying value of the financial assets of the Group already represents its maximum credit risk exposure. To reduce credit risk, the Group has dedicated staff in the credit control department responsible for determining credit limits, conducting credit approval, and performing other monitoring procedures to ensure that necessary measures are taken to recover overdue debts. In addition, the Group reviews the recoverability of financial assets at each balance sheet date to ensure that sufficient credit loss provisions have been made for the relevant financial assets. Therefore, the management of the Group considers that the credit risk borne by the Group has been significantly reduced.
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190 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 The cash at bank and on hand and bank time deposits of the Group are deposited with banks with higher credit ratings, and therefore the credit risk of cash at bank and on hand and bank time deposits is low. With respect to the bank acceptance bills held, the management of the Group considers that the credit risk arising from default by banks in respect of the bank acceptance bills held by the Group is low. With respect to other receivables, after evaluating the nature of other receivables, the Group considers that there is no significant expected credit loss risk in respect of other receivables. The Group has adopted the necessary policies to ensure that all sales customers have good credit records. Apart from the top five trade receivables of the Group disclosed in Note “Trade receivables”, the Group has no other significant credit concentration risk. 1.3 Liquidity risk In managing liquidity risk, the Group maintains and monitors cash and cash equivalents that management considers sufficient to meet the operating needs of the Group and to reduce the impact of fluctuations in cash flows. The management of the Group closely monitors the liquidity position and expects that there will be sufficient financing sources to fund the operations of the Group, and the management of the Group considers that the Group does not have significant liquidity risk.
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191 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. The financial liabilities held by the Group are analysed by the maturity of the remaining undiscounted contractual obligations as follows: RMB Items Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total undiscounted cash flows Carrying amount Short-term borrowings 1,592,355,088.74 – – – 1,592,355,088.74 1,560,208,580.00 Bills payables 321,917,263.38 – – – 321,917,263.38 321,917,263.38 Trade payables 3,873,193,578.72 – – – 3,873,193,578.72 3,873,193,578.72 Other payables (excluding interests payable) 110,567,851.45 110,567,851.45 110,567,851.45 Long-term borrowings (including those due within one year) 2,385,605,460.98 2,815,931,831.83 1,987,027,465.53 1,217,568,858.14 8,406,133,616.47 7,817,968,276.90 Bonds payables (including those due within one year) 71,997,696.00 4,479,856,636.05 – – 4,551,854,332.05 4,137,000,172.66 Long-term payables (including those due within one year) 111,930,000.00 62,490,000.00 62,490,000.00 – 236,910,000.00 226,950,372.78
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192 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Transfers of financial assets 1. Classification of transfer methods RMB Transfer method Nature of transferred financial assets Amount of transferred financial assets Derecognition status Basis for determining derecognition Endorsement Bank acceptance bills 2,033,833,572.09 Derecognised in full The accepting banks have higher credit ratings and the risk of being recourse is low Discounting Bank acceptance bills 643,244,122.72 Derecognised in full Endorsement Bank acceptance bills 532,711,823.92 Not derecognised The accepting banks have average credit ratings and there is a risk of being recourse Discounting Bank acceptance bills – Not derecognised Total / 3,209,789,518.73 / / 2. Financial assets derecognised as a result of transfers RMB Items Method of transfer of financial assets Amount of financial assets derecognised Gains or losses relating to derecognition Bank acceptance bills Endorsement 2,033,833,572.09 – Bank acceptance bills Discounting 643,244,122.72 1,213,653.20 Total / 2,677,077,694.81 1,213,653.20
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193 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. DISCLOSURE OF FAIR VALUES (1) Closing fair values of assets and liabilities measured at fair value RMB Closing fair value Items Level 1 fair value measurements Level 2 fair value measurements Level 3 fair value measurements Total I. Continuing fair value measurements (I) Trading financial assets – equity instrument investments 15,480.45 – – 15,480.45 (II) Trading financial assets – wealth management products – – 540,050,000.00 540,050,000.00 (III) Financing receivables – – 625,860,210.87 625,860,210.87 (IV) Derivative financial assets – 2,083,180.44 – 2,083,180.44 (V) Other debt investments (including those due within one year) – – 293,720,169.74 293,720,169.74 (VI) Derivative financial liabilities – 8,876,883.00 – 8,876,883.00
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194 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Basis for determining the market prices of items with continuing Level 1 fair value measurements The items with continuing Level 1 fair value measurements are other equity instrument investments, the fair values of which are the quoted prices in the secondary stock market. (3) Valuation techniques and significant qualitative and quantitative information used for items with continuing Level 2 fair value measurements RMB Items Fair value as at 30 June 2026 Valuation technique Significant inputs Financial assets at fair value through profit or loss – derivative financial assets 2,083,180.44 Discounted cash flow method Forward exchange rates Financial liabilities at fair value through profit or loss – derivative financial liabilities 8,876,883.00 Discounted cash flow method Forward exchange rates
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195 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (4) Valuation techniques and qualitative and quantitative information on significant unobservable inputs used for items with continuing Level 3 fair value measurements RMB Items Fair value as at 30 June 2026 Valuation technique Significant unobservable inputs Range Trading financial assets – wealth management products 540,050,000.00 Discounted cash flow method Expected rates of return 1.10%–1.90% Financing receivables 625,860,210.87 Discounted cash flow method Expected discount rates 0.50%–0.81% Other debt investments (including those due within one year) 293,720,169.74 Discounted cash flow method Expected rates of return 1.90%, 2.50%, 2.55% Reconciliation of the opening and closing carrying values of items with continuing Level 3 fair value measurements and sensitivity analysis of unobservable parameters RMB Items Opening amount Transferred into Level 3 Transferred out of Level 3 Total gains or losses for the period Recognised in other comprehensive income Purchase/ Increase Issuances Sales Settlements/ Decreases Closing amount Changes in unrealised gains or losses recognised in profit or loss for the period in respect of assets held at the end of the reporting period Recognised in profit or loss Purchases/ additions Issuances Trading financial assets – bank wealth management products 480,000,000.00 – – 2,733,362.99 – 2,160,016,373.72 – – 2,102,699,736.71 540,050,000.00 – Financing receivables 1,124,553,338.33 – – – – 2,755,500,265.16 – – 3,254,193,392.62 625,860,210.87 – Other debt investments (including those due within one year) 290,377,868.35 – – 3,342,301.39 – – – – – 293,720,169.74 3,342,301.39
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196 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (5) During the current period and 2025, the Group had no transfers among Levels 1, 2 and 3 (6) Fair value information of financial assets and financial liabilities not measured at fair value As at 30 June 2026, the management of the Group considers that the carrying values of the financial assets and financial liabilities measured at amortised cost in the financial statements, other than bonds payables, approximate their fair values. As at 30 June 2026, the carrying value of bonds payables in the financial statements of the Group was RMB4,137,000,172.66, and the fair value was RMB4,243,472,204.54. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (1) Subsidiaries of the Company For details of the subsidiaries, see Note “Interests in other entities”. (2) Associates The other joint ventures or associates with which the Group had related party transactions during the period, or with which the Group had balances formed by related party transactions in prior periods, are as follows: Name of joint venture or associate Relationship with the Company Kaihong Flat Associate Jiaxing Gas Associate Fulairuicheng Associate
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197 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (3) Related parties Name of other related party Relationship with the Company Yihe Investment Controlled by one of the actual controllers of the Company Hongding Port Controlled by one of the actual controllers of the Company (4) Related party transactions (1) Purchase of goods/acceptance of services RMB Related party Nature of related party transaction Current period Previous period Jiaxing Gas Purchase of raw materials 141,030,266.29 45,705,039.20 Kaihong Flat Acceptance of services 423,487,340.49 331,524,407.90 (2) Sale of goods/provision of services RMB Related party Nature of related party transaction Current period Previous period Zhejiang Fujie Sale of goods 492,035.40 – Kaihong Flat Provision of services 1,148,358.59 2,188,710.74
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198 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (3) Related party leases The Company as lessee RMB Name of lessee Type of leased assets Lease income recognised for the current period Lease income recognised for the previous period Kaihong Flat Lease of buildings, wharves and container frames 1,354,167.33 1,105,074.36 The Company as lessor RMB Current period Previous period Name of lessor Type of leased assets Rental expenses of short-term leases and leases of low- value assets under the simplified approach (if applicable) Rent paid Interest expenses on lease liabilities Right-of-use assets added Rental expenses of short-term leases and leases of low-value assets under the simplified approach (if applicable) Rent paid Interest expenses on lease liabilities Right-of-use assets added Yihe Investment Lease of buildings 4,249,814.64 4,508,299.92 – – 4,249,814.52 4,508,299.92 – – Hongding Port Lease of wharf 1,376,146.79 3,000,000.00 – – 1,100,917.43 3,000,000.00 – –
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199 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (4) Remuneration of key management personnel RMB ten thousand Items Amounts for the period Amounts for the previous period Remuneration of key management personnel 535.07 573.01 5. Balances with related parties (1) Receivable items RMB Item Related party Closing carrying amount Opening carrying amount Trade receivables Kaihong Flat 2,058,925.00 565,600.00 Trade receivables Zhejiang Fujie 556,000.00 –
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200 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Payable items RMB Item Related party Closing carrying amount Opening carrying amount Trade payables Kaihong Flat 108,880,083.93 41,459,331.16 Trade payables Yihe Investment 175,108.07 258,398.65 Trade payables Jiaxing Gas – 2,991,277.37 (3) Other items RMB Item Related party Closing carrying amount Opening carrying amount Advance payment Jiaxing Gas 5,170,030.63 1,983,520.33 Other receivables Jiaxing Gas 1,560,000.00 1,560,000.00 Other current assets Hongding Port 2,064,220.18 688,073.38 Other payables Kaihong Flat 718,743.48 500,000.00
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201 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. SHARE-BASED PAYMENTS 1. Equity instruments (1) Share options or other equity instruments outstanding at the end of the period Other equity instruments outstanding at the end of the period Grantee Category Range of exercise prices Remaining term of the contract Core employees RMB14.23 0 year (Note) Note: The Company will convene the 22th meeting of the 7th Board of Directors on 25 August 2026 to consider and approve the Resolution on the Repurchase and Cancellation of Part of the Restricted Shares Granted under the Reserved Grant of the 2020 A-Share Restricted Share Incentive Plan, and resolve to repurchase and cancel the remaining 140,000 restricted shares granted under the reserved grant of the 2020 A-Share Restricted Share Incentive Plan that have been granted but have not yet been released from lock-up, while recovering the cash dividends corresponding to the restricted shares proposed to be repurchased and cancelled which were originally held in custody by the Company. The repurchase and cancellation matter has been authorised by the 2019 annual general meeting of the Company, 2020 first A-share class meeting and 2020 first H-share class meeting, and no further submission to the shareholders’ meeting is required.
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202 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 2. Equity-settled share-based payments RMB Recipients of equity-settled share-based payments 2020 A share Restrictive Incentive Scheme Method for determining the fair value of the equity instruments on the grant date Market price Basis for determining the number of exercisable equity instruments Based on the best estimate of the number of persons expected to exercise Reasons for significant differences between the current period estimate and the previous period estimate N/A Accumulated amount of equity-settled share-based payments recognised in capital reserve 94,435,400.00 3. Share-based payment expenses for the current period RMB Guarantee Category Equity-settled share-based payment expense Core employees 158,210.73 Total 158,210.73
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203 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. COMMITMENTS AND CONTINGENCIES 1. Significant commitments Capital commitments As at the balance sheet date, the contracts entered into by the Group for the acquisition of long-term assets that are irrevocable are as follows: RMB Amounts at the end of the period Amounts at the beginning of the period Contracted but not yet recognised in the financial statements – Commitments for the acquisition of long- term assets 4,075,583,514.38 4,097,682,857.50 2. Contingencies The Group has no significant contingencies that need to be disclosed.
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204 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 EVENTS AFTER THE BALANCE SHEET DATE The Group has no significant events after the balance sheet date that need to be disclosed. OTHER SIGNIFICANT MATTERS 1. Segment information (1) Basis for determining reportable segments and accounting policies Based on the internal organisational structure, management requirements and internal reporting system of the Group, the operating businesses of the Group are divided into five operating segments. On the basis of the operating segments, the Group has determined five reportable segments, namely the photovoltaic glass segment, the household glass segment, the engineering glass segment, the float glass segment and the mining products segment. These reportable segments are determined on the basis of product categories. The principal products provided by each reportable segment of the Group are photovoltaic glass, household glass, engineering glass, float glass and mining products respectively. The management of the Group regularly evaluates the operating results of these segments to decide on the allocation of resources and to evaluate their performance, and does not review the assets and liabilities of the operating segments when making such evaluation. The segment information is disclosed in accordance with the accounting policies and measurement standards adopted by each segment when reporting to the management, and is recognised and measured in accordance with Chinese Accounting Standards.
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205 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Financial information of reportable segments RMB Current period Items Photovoltaic glass Household glass Engineering glass Float glass Mining products Electricity generation revenue Other operations Inter-segment eliminations Total Segment operating revenue 5,861,594,648.96 119,791,347.87 217,900,539.17 101,865,655.17 111,913,297.94 223,379,079.99 31,765,555.89 – 6,668,210,124.99 Segment operating costs 5,467,162,117.32 103,799,991.52 182,587,747.26 114,099,244.42 93,522,847.82 145,206,798.10 16,657,828.53 – 6,123,036,574.97 Segment profit Reconciling items: Less: Taxes and surcharges – – – – – – – – 91,329,521.27 Selling expenses – – – – – – – – 29,254,057.74 General and administrative expenses – – – – – – – – 201,829,445.51 Research and development expenses – – – – – – – – 256,017,863.37 Financial expenses – – – – – – – – 255,427,696.14 Including: Interest expenses – – – – – – – – 247,733,829.68 Interest income – – – – – – – – 50,256,744.53 Add: Other income – – – – – – – – 42,308,877.75 Investment income – – – – – – – – 17,148,003.22 Including: Investment income from associates and joint ventures – – – – – – – – 13,004,132.13 Gains (losses) from changes in fair value – – – – – – – – -2,148,652.31 Credit impairment loss – – – – – – – – 1,041,853.58 Asset impairment loss – – – – – – – – -201,271,348.33 Losses on disposal of assets – – – – – – – – 3,360,349.05 II. Operating profit – – – – – – – – -428,245,951.05 Add: Non-operating income – – – – – – – – 4,654,246.96 Less: Non-operating expenses – – – – – – – – 4,135,180.73 III. Total profit – – – – – – – – -427,726,884.82 Less: Income tax expense – – – – – – – – -64,955,769.50 IV. Net profit – – – – – – – – -362,771,115.32
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206 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY Trade receivables (1) Ageing analysis RMB Ageing Carrying amount at the end of the period Carrying amount at the beginning of the period Within 1 year 1,065,135,821.07 708,989,042.14 1 to 2 years 9,380,648.61 3,550,418.63 2 to 3 years 84,977.51 601,238.04 Over 3 years 13,795,841.63 13,086,579.65 Total 1,088,397,288.82 726,227,278.46
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207 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Disclosure by bad debt provision method RMB Closing balance Category Carrying amount Bad debt provision Amount Proportion (%) Amount Provision ratio (%) Carrying value Bad debt provision on an individual basis 18,563,256.06 1.71 18,563,256.06 100.00 – Bad debt provision on a portfolio basis 1,069,834,032.76 98.29 15,471,082.54 1.45 1,054,362,950.22 Total 1,088,397,288.82 Ŋ 34,034,338.60 Ŋ 1,054,362,950.22 Opening balance Category Carrying amount Bad debt provision Amount Proportion (%) Amount Provision ratio (%) Carrying value Bad debt provision on an individual basis 23,235,712.92 3.20 23,235,712.92 100.00 – Bad debt provision on a portfolio basis 702,991,565.54 96.80 12,055,330.40 1.71 690,936,235.14 Total 726,227,278.46 Ŋ 35,291,043.32 Ŋ 690,936,235.14
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208 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Bad debt provision made on a portfolio basis RMB Closing balance Name Carrying amount Bad debt provision Provision ratio (%) Low risk category 312,263,621.29 – – Normal category 753,679,052.98 13,264,751.33 1.76 Watchlist category 3,891,358.49 2,206,331.21 56.70 Total 1,069,834,032.76 15,471,082.54 1.45 (3) Changes in credit loss provision for trade receivables RMB Stage 1 Stage 2 Stage 3 Bad debt provision 12-month expected credit losses Lifetime expected credit losses (no credit impairment occurred) Lifetime expected credit losses (credit impairment occurred) Total Balance as at 1 January 2026 12,055,330.40 – 23,235,712.92 35,291,043.32 Transferred to bad debt provision for lifetime credit impairment -271,581.53 – 271,581.53 – Provision (reversal) during the period 3,687,333.67 – -4,944,038.39 -1,256,704.72 Write-off during the period – – – – Balance as at 30 June 2026 15,471,082.54 – 18,563,256.06 34,034,338.60
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209 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (4) Trade receivables actually written off during the period The Company had no trade receivables written off during the period. (5) Trade receivables from the top five debtors as at the end of the period As at the end of the period, the balance of the Company’s trade receivables from the top five debtors was RMB782,303,652.12 (as at the end of last year: RMB516,671,826.13), representing 71.88% (as at the end of last year: 71.14%) of the total balance of trade receivables, and the credit loss provisions for the top five debtors amounted to RMB9,558,536.86 (as at the end of last year: RMB5,787,093.14). 2. Other receivables Items RMB Items Closing balance Opening balance Other receivables 4,542,899,869.61 3,858,268,970.51 Total 4,542,899,869.61 3,858,268,970.51
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210 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 Other receivables (1) Ageing analysis RMB Ageing Carrying amount at the end of the period Carrying amount at the beginning of the period Within 1 year 2,577,057,838.70 2,262,154,944.31 1 to 2 years 1,802,450,751.39 1,570,469,793.39 2 to 3 years 142,730,143.65 9,010,000.00 Over 3 years 20,661,135.87 16,634,232.81 Total 4,542,899,869.61 3,858,268,970.51 (2) Classification by nature of the balances RMB Nature of the balance Closing carrying amount Opening carrying amount Deposits and margins 4,533,685,527.51 3,849,174,629.07 Imprest 8,823,501.05 8,742,000.00 Amounts receivable from subsidiaries 45,000.00 45,000.00 Others 345,841.05 307,341.44 Total 4,542,899,869.61 3,858,268,970.51
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211 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (3) Impairment of other receivables After evaluating the nature of other receivables, the Company considers that there is no significant expected credit loss risk in respect of other receivables, and therefore no credit loss provision has been made. (4) Other receivables from the top five debtors as at the end of the period RMB Name of entity Closing balance Proportion in the total closing balance of other receivables (%) Nature of the balance Bad debt provision at the end of the period Flat (Nantong) Photovoltaic Glass Co., Ltd. 1,825,267,462.07 40.18 Amounts receivable from subsidiaries – Flat (Hong Kong) Limited 787,444,924.41 17.33 Amounts receivable from subsidiaries – Zhejiang Jiafu Glass Co., Ltd. 447,288,302.88 9.85 Amounts receivable from subsidiaries – Flat Guangneng Co., Ltd. 398,105,568.20 8.76 Amounts receivable from subsidiaries – Jiaxing Flat Intelligent Equipment Co., Ltd. 382,623,496.32 8.42 Amounts receivable from subsidiaries – Total 3,840,729,753.88 84.54 / – (5) The Company had no other receivables actually written off during the period
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212 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 3. Long-term equity investments RMB Closing balance Opening balance Items Carrying amount Impairment provision Carrying value Carrying amount Impairment provision Carrying value Investments in subsidiaries 3,645,916,181.00 – 3,645,916,181.00 3,640,286,198.10 3,640,286,198.10 Investments in associates and joint ventures 83,939,199.66 4,500,000.00 79,439,199.66 49,937,007.93 4,500,000.00 45,437,007.93 Total 3,729,855,380.66 4,500,000.00 3,725,355,380.66 3,690,223,206.03 4,500,000.00 3,685,723,206.03
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213 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (1) Investments in subsidiaries RMB Investees Opening balance Changes during the period Closing balance (carrying value) Additional investment Reduction of investment Zhejiang Flat Glass Co., Ltd. 10,000,000.00 – – 10,000,000.00 Zhejiang Jiafu Glass Co., Ltd. 150,000,000.00 – – 150,000,000.00 Shanghai Flat Glass Co., Ltd. 70,000,000.00 – – 70,000,000.00 Anhui Flat Photovoltaic Glass Co., Ltd. 2,530,000,000.00 – – 2,530,000,000.00 Flat (Hong Kong) Limited 66,137,343.00 – – 66,137,343.00 Jiaxing Flat New Energy Technology Co., Ltd. 10,000,000.00 – – 10,000,000.00 Flat (Jiaxing) Import and Export Trading Co., Ltd. 7,000,000.00 – – 7,000,000.00 Jiaxing Flat Intelligent Equipment Co., Ltd. 28,923,000.00 – – 28,923,000.00 Zhejiang Fulaite New Energy Co., Ltd. 328,000,000.00 – – 328,000,000.00 Flat (Nantong) Photovoltaic Glass Co., Ltd. 204,370,017.10 5,629,982.90 – 210,000,000.00 Flat Guangneng Co., Ltd. 100,000,000.00 – – 100,000,000.00 Flat (Guangxi) Guangneng Co., Ltd. 1,000,000.00 – – 1,000,000.00 Jiaxing Fulian Logistics Co., Ltd. 2,000,000.00 – – 2,000,000.00 Flat Solar Technology PTE. LTD 55,838.00 – – 55,838.00 Zhongda Quartz Development (Anhui) Group Co., Ltd. 132,800,000.00 – – 132,800,000.00 Total 3,640,286,198.10 5,629,982.90 – 3,645,916,181.00
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214 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 (2) Investments in associates and joint ventures RMB Investees Opening balance Opening balance of impairment provision Changes during the period Closing balance Closing balance of impairment provision Capital contribution/ additional investment Investment income recognised under the equity method Cash dividends or profits declared Associates: Kaihong Flat 45,437,007.93 – – 10,002,191.73 -16,000,000.00 39,439,199.66 – Jiaxing Energy 4,500,000.00 4,500,000.00 – – – 4,500,000.00 4,500,000.00 Fulairuicheng – – 40,000,000.00 – 40,000,000.00 – Total 49,937,007.93 4,500,000.00 40,000,000.00 10,002,191.73 -16,000,000.00 83,939,199.66 4,500,000.00 4. Operating revenue and operating costs (1) Operating revenue and operating costs RMB Principal operations Amounts for the current period Amounts for the previous period Income Costs Income Costs Items 1,944,662,900.58 1,933,007,342.27 1,702,358,753.08 1,478,921,357.62 Other operations 90,130,823.98 55,178,325.62 57,659,395.25 53,055,549.05 Total 2,034,793,724.56 1,988,185,667.89 1,760,018,148.33 1,531,976,906.67
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215 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. (2) Disaggregation of operating revenue and operating costs RMB Total Classification of contracts Operating revenue Operating costs Type of goods Photovoltaic glass 1,540,919,410.07 1,563,224,156.55 Household glass 61,559,881.50 57,552,952.77 Engineering glass 227,365,915.30 177,701,544.41 Float glass 114,817,693.71 134,528,688.54 Other operations 90,130,823.98 55,178,325.62 By operating region China 2,021,566,125.75 1,978,672,271.61 Other countries and regions in Asia (excluding China) 2,572,595.08 1,819,652.72 Europe, North America and other regions 10,655,003.73 7,693,743.56 By sales channel Direct sales 1,982,423,938.10 1,922,386,635.62 Distributors 52,369,786.46 65,799,032.27 Total 2,034,793,724.56 1,988,185,667.89
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216 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 5. Investment income RMB Items Current period Previous period Investment income from disposal of derivative financial instruments 365,291.15 -279,813.05 Investment income from long-term equity investments under the equity method 10,002,191.73 13,942,219.27 Investment income from disposal of trading financial assets 1,968,816.46 1,491,960.98 Total 12,336,299.34 15,154,367.20
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217 INTERIM REPORT 2026 FLAT GLASS GROUP CO., LTD. Supplementary Information 1. STATEMENT OF NON-RECURRING GAINS AND LOSSES FOR THE CURRENT PERIOD RMB Items Amounts Gains and losses on disposal of non-current assets, including the write-off of the provision for asset impairment already made 3,360,349.05 Government grants recognised in profit or loss for the period, excluding those closely related to the Company’s normal business operations, in line with national policies, enjoyed in accordance with established standards and with a continuing impact on the Company’s results 10,163,405.62 Fair value changes of financial assets and financial liabilities held by non-financial enterprises and gains and losses on disposal of financial assets and financial liabilities, other than effective hedging transactions related to the Company’s normal business operations 1,995,218.78 Other non-operating income and expenses other than the above items 519,066.23 Less: Effect of income tax 2,594,143.34 Effect of minority interests (after tax) -24,795.55 Total 13,468,691.89
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218 FLAT GLASS GROUP CO., LTD. INTERIM REPORT 2026 2. RETURN ON NET ASSETS AND EARNINGS PER SHARE This statement of return on net assets and earnings per share is prepared in accordance with the relevant provisions of the Rules for the Compilation and Disclosure of Information by Companies Issuing Publicly Offered Securities No. 9 – Computation and Disclosure of Return on Net Assets and Earnings per Share (2010 Revision) (CSRC Announcement [2010] No. 2) promulgated by the China Securities Regulatory Commission. RMB Profit for the reporting period Weighted average return on net assets (%) Earnings per share Basic earnings per share Diluted earnings per share Net profit attributable to ordinary shareholders of the Company -1.63 -0.16 -0.16 Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses -1.69 -0.16 -0.16