Shandong Huapeng Glass Co., Ltd. on the suspension of production of wholly-owned subsidiaries

Shandong Huapeng Glass Co., Ltd. on the suspension of production of wholly-owned subsidiaries

   

(hereinafter referred to as "Jiangsu Shidao"), a wholly-owned subsidiary of Shandong Huapeng Glass Co. (hereinafter referred to as "Jiangsu Shidao"), a wholly-owned subsidiary of the Company, is expected to stop production in order to meet the requirements of "double control of energy consumption" in Nantong City, Jiangsu Province. The specific situation is as follows:

    I. Basic information of Jiangsu Shidao

    Enterprise name: Jiangsu Shidao Glass Co.

    Nature of enterprise: limited liability company (not a natural person investment or holding legal person wholly-owned)

    Address: Group 27-28, Peide Village, Zhang Zhishan Town, Tongzhou District, Nantong City

    Legal representative：Tang Xu

    Registered capital: 10 million RMB

    Operating range: Manufacture and sales of daily-use glass products. (Projects subject to approval in accordance with the law, subject to the approval of the relevant departments before operating activities)

The main financial indicators of Jiangsu Shidao for one year and one period are as follows:

                                                          Unit: RMB million

Project

September 30, 2021 (unaudited)

Percentage of the Company's consolidated data

December 31, 2020 (audited)

Proportion of the Company's consolidated data

Total assets

23,965.98

6.64%

23,058.95

6.42%

Net Assets

-2,196.32

-1.62%

-1,164.23

-0.80%

Item

January-September 2021 (unaudited)

Percentage of the Company's consolidated data

FY2020 (audited)

Proportion of the Company's consolidated data

Operating revenue

8,104.12

12.00%

3,671.69

3.69%

Net Profit

-1,032.09

11.22%

-1,080.18

-14.00%

    II. Reasons for production suspension

    In order to cooperate with the requirements of "double control of energy consumption" in Nantong Su Xitong Park, Jiangsu Province, Jiangsu Shidao implemented the suspension of production.

    III. Next steps to be taken

    In order to coordinate the overall operation of the company, the company will organize and coordinate relevant resources, actively maintain communication with customers, and try its best to meet the needs of customers' delivery time. At the same time, the company will actively seek comprehensive solutions and will not exclude: 1) promoting industrial transformation and upgrading through investment attraction and finding strategic partners; 2) revitalizing assets and recovering capital as soon as possible through sale and lease, in order to safeguard the interests of the company and the investors to the maximum extent.

    IV. Impact of production suspension on the company

    It is expected that the above subsidiary will not be able to resume production within a short period of time after the suspension of production, and the specific impact on the company cannot be predicted for the time being. The company will fulfill its information disclosure obligations in accordance with relevant regulations on the progress of the suspension of production in Jiangsu Shidao. Investors are advised to pay attention to the investment risk.

Hereby announced.

Shandong Huapeng Glass Co.

January 22, 2022