Business Overview Financial Summary

The group mainly produces and sells architectural glass products in South China under the “Hongguang” brand, including energy-saving safety glass products (such as coated glass, insulating glass, laminated glass and tempered glass) and smart glass products (i.e. dimming glass). The Group's architectural glass products can be processed into glass materials for the construction of various building structures, such as curtain wall installation and internal spacing. Furthermore, the Group's products can be further processed into optical lenses and screen protectors. In December 2019, the Group operated a production plant in Guangdong Province with a total construction area of 21,424 square meters.

Competitive advantage

The group's strong R&D capabilities can develop high-quality building glass products

The Group is fully prepared to welcome the Chinese government's introduction of preferential policies and market development opportunities

Risk Factors

The Group's sales are dependent on the South China market. Any adverse economic, social or political situation affecting that market will have an adverse effect on business

May not be able to meet customer needs and lose the use of business income due to insufficient production capacity

Approximately 51.3% was used to upgrade existing production facilities

Approximately 10.8% is used to redeem bank loans

About 12.9% is used to enhance R&D capabilities

Approximately 14.4% will be used to enhance information technology, production safety and environmental infrastructure construction to upgrade Senbashi Plant and ERP systems

Approximately 5.6% is used to expand sales and market reach

Approximately 5.0% is used for general working capital