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宝 石B:2013年第三季度报告全文(英文版)2013-10-28  

						                           石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文




SHIJIAZHUANG BAOSHI ELECTRONIC GLASS COMPANY LIMITED
            The Third Quarterly Report 2013




                     October 2013




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                                                   石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文



                                      I. Important notes


The Board of Directors , Supervisory Committee ,Directors , Supervisors, Senior Executives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements
carried in the Report and we will accept individual and joint responsibilities for the truthfulness,
accuracy and completeness of the Report.


All of the directors presented the board meeting at which this Quarterly Report was examined.


 Mr. Li Zhaoting, Person in charge of the Company, Mr.Li Quanniang , Person in charge of
accounting works, Mr. Li Zhiyong ,CFO as well as person in charge of accounting institution
represent and warrant the financial and accounting report in the third report is true and complete.




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                                                                              石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文



                           II.Main financial data and changes of shareholders

(1)Main accounting data and financial Index

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not.
□ Yes    √ No

                                         As at the end of the reporting                                            Changed (%)over end of
                                                                                   As at the end of last year
                                                        period                                                              prev. year

         Gross assets(RMB)                             8,178,904,538.97                     2,061,707,738.09                            296.71%

    Net assets attributable to the
shareholders of the listed company                       5,660,284,998.00                         391,928,777.84                         1,344.21%
               (RMB)

                                                                        Increase/decrease over
                                                                                                    January 1, 2013 to     Changed (%)over
                                           Reporting period             the same period of last
                                                                                                    September 30,2013       end of prev. year
                                                                             year(%)

    Operating income(RMB)                    282,537,595.39                          30.06%            537,579,949.47                    -7.09%

    Net profit attributable to the
shareholders of the listed company             100,876,520.37                          65.08%            214,844,146.37                   110.04%
               (RMB)

    Net profit after deducting of
non-recurring gain/loss attributable
                                                 83,112,983.04                         49.55%            119,610,074.10                    24.16%
    to the shareholders of listed
          company(RMB)

 Cash flow generated by business
                                                   --                             --                   -1,775,315,017.44                 -440.64%
         operation, net(RMB)

           Basic earning per
                                                                 0.11                  -31.25%                      0.32                   18.52%
           share(RMB/Share)

            Diluted gains per
                                                                 0.11                  -31.25%                      0.32                   18.52%
  share(RMB/Share)(RMB/Share)

  Weighted average income/asset
                                                            1.83%                      -17.79%                     6.6%                   -28.57%
              ratio(%)

Items and amount of non-current gains and losses
√Applicable □Not applicable
                                                                                                                                         Unit: RMB

                                                                               Amount (Year-beginning to
                                 Items                                                                                       Notes
                                                                               the end of the report period.)

   Non-current asset disposal gain/loss(including the
                                                                                                  6,805,887.43
 write-off part for which assets impairment provision is

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                                                                        石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


                                 made)
Governmental Subsidy accounted as current gain/loss, except for
those subsidies at with amount or quantity fixed by the national
                                                                                       111,383,918.91
government and closely related to the Company’s business
operation.

Restoring of receivable account impairment provision tested
                                                                                         8,614,454.77
individually

Consigning fee received for cosigned operation                                           4,500,000.00

Net amount of non-operating income and expense except the
                                                                                          -424,134.55
aforesaid items

Less:Amount of influence of income tax                                                31,291,126.97

Amount of influence of minority interests(after tax)                                     4,354,927.32

Total                                                                                  95,234,072.27                      --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for
Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated
in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring
Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable


(II)Total number of shareholders at the end of report period and Particular about shares held by top ten
shareholders

                                                                                                                                 Unit:Shares

Total number of shareholders at the 17,590 (including 11,061 shareholders holding A shares and 6,529shareholders holding B
end of report period                     shares)

                                           Particular about shares held by top ten shareholders

                                                                                               Amount of           Pledging or freezing
                                                             Share
                                         Properties of                                       tradable shares
        Shareholder name                                   proportion       Quantity                             Status of the
                                         shareholder                                        with Conditional                      Quantity
                                                               %                                                    shares
                                                                                                  held

                                   Domestic
Dongxu Group Co., Ltd.             Non-State-owned              14.4%        130,031,000          130,031,000 Pledge             72,810,000
                                   legal person

Huarong Secrities - ICBC -
Huarong Fixed Growth No. 1
                                   Other                       13.71%        123,839,000          123,839,000
Limited-amount Specific Asset
Management Program

                                   Domestic
Shijiazhuang Baoshi Electronic
                                   Non-State-owned             12.27%        110,785,500                       0 Pledge          40,000,000
Group Co., Ltd.
                                   legal person


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                                                                      石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Yinmin Fund Company-
Minsheng-Yinmin Fund
                                     Other                       6.5%        58,700,000          58,700,000
Non-Public Issuing Assets
Management Plan

Minsheng Jiayin Fund
 Company-Minsheng-
 Pingan Trust-Pingan Wealth Other                              5.83%        52,634,000          52,634,000
 Huitai No.11 Collective fund
 trust plan

Guangfa Fund Company-
Agricultural Bank of China-
SDIC Tust Golden Eagle               Other                      4.57%        41,279,000          41,279,000
No.109 Collective Fund trust
plan

Huitianfu Fund Company-
 Agricultural Bank of China-
 SDIC Trust Golden Eagle             Other                      4.57%        41,279,000          41,279,000
 No.108 Collective Fund trust
 plan

Dacheng Fund Company-
Agricultural Bank of China-
SDIC Tust Golden Eagle               Other                      4.57%        41,279,000          41,279,000
No.109 Collective Fund trust
plan

International Finance -ICBC
-Zhongjin Increase No.1
                                     Other                      3.43%        30,959,000          30,959,000
Collective     Assets
Management plan

Agreed        special   repurchase
account       opened    at   Huaan Other                        1.26%        11,350,000
Securities Co., Ltd.

                                        Shareholding of top 10 shareholders of unrestricted shares

                                                               Quantity of unrestricted                      Share type
                  Name of the shareholder                    shares held at the end of the
                                                                                                     Share type           Quantity
                                                                   reporting period

Shijiazhuang Baoshi Electronic Group Co., Ltd.                                110,785,500 RMB Common shares                110,785,500

Agreed special repurchase account opened at Huaan
                                                                               11,350,000 RMB Common shares                 11,350,000
Securities Co., Ltd.

China Great Wall Asset Management Corporation                                  10,050,055 RMB Common shares                 10,050,055

China Minsheng Banking Co., Ltd.-Huashang Lead                                  7,814,411 RMB Common shares                 7,814,411



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                                                                   石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Enterprise Mixed Securities Investment Fund

                                                                                          Foreign shares placed in
Taifook Securities Company Limited-Account Client                             6,620,310                                   6,620,310
                                                                                          domestic exchange

                                                                                          Foreign shares placed in
China Merchants Securities(HK) Co., Ltd.                                      5,964,078                                   5,964,078
                                                                                          domestic exchange

GUOTAI JUNAN SECURITIES(HONGKONG)                                                         Foreign shares placed in
                                                                              5,312,272                                   5,312,272
LIMITED                                                                                   domestic exchange

                                                                                          Foreign shares placed in
KGI ASIA LIMITED                                                              4,378,856                                   4,378,856
                                                                                          domestic exchange

Orient Securities Co., Ltd.                                                   3,996,043 RMB Common shares                 3,996,043

ICBC-CCB Optimization Collocation Mixed
                                                                              3,721,378 RMB Common shares                 3,721,378
Securities Investment Fund

                                                         Among the top ten shareholders as listed above, there exists no associated
                                                         relationship among the shareholders of legal person share. The relation
Notes to the related relationship between the top ten    between the top ten shareholders was unknown. It was unknown whether
shareholders or their concerted action                   they are persons taking concerted action specified in Regulations on the
                                                         Information Disclosure of the Change of Shareholding of Shareholders of
                                                         Listed Companies.

Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
√Yes □ No
Individual shareholder Yao Yanbin and Beijing Qitong Culture & Media Co., Ltd. conducted agreed repurchase transactions with
Huaan Securities Co., Ltd., one of the top 10 shareholders holding unrestricted shares, through the agreed special repurchase account
opened at Huaan Securities Co., Ltd. At the end of the report period, Yao Yanbin agreed to repurchase 11 million shares, which
account for 1.22% of total shares of the Company. Beijing Qitong Culture & Media Co., Ltd. agreed to repurchase 0.35 million
shares,which account for 0.04% of total shares of the Company




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                                                                             石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文



                                                         III Significant Events

         I. Particular about large-margin change of main accounting statement item and financial index and its
         reason.

         (I) Analysis of the change in items of balance sheet
                                                                                                                                        Unit:RMB

                                                       Amount at the           Rate of
              Item in         Amount at the end
No                                                      beginning of           change                       Reason for change
            statements            of period
                                                           period               (%)
                                                                                          The availability of the proceeds raised through
                 Monetary
     1                          2,049,774,397.54         110,770,070.84        1750.48%   secondary offering, new loans and increase of payment
                    capital
                                                                                          recovery
     2     Bills receivable           220,000.00                800,000.00      -72.50%   The Company received the funds from matured notes.
                 Accounts                                                                 Fast growth of business and increase of accounts
     3                            793,966,023.26         573,874,457.07          38.35%
                receivable                                                                receivable that were not due yet
                                                                                          Wuhu Dongxu Optoelectronic Equipment Technology
               Payment in                                                                 Co., Ltd. made prepayment for the purchase of noble
     4                          3,321,502,652.63         755,954,517.33         339.38%
                  advance                                                                 metal and equipment for the construction of ten lines of
                                                                                          Wuhu Dongxu Optoelectronic Technology Co., Ltd.
                     Other                                                                Increase of other business related to operating activities
     5                            250,935,455.32           18,664,010.12       1244.49%
               receivables                                                                with the enlargement of the Company's business scale
                                                                                          Increase of purchase of spare parts and stocking caused
     6         Inventories        224,329,896.04         168,716,962.68          32.96%
                                                                                          by business growth
                                                                                          Completed construction in progress was transferred into
     7        Fixed assets        111,855,632.07           50,377,603.66        122.03%
                                                                                          fixed assets
           Construction in                                                                Increase of expenditure for the construction of Wuhu
     8                          1,241,043,950.18         196,954,480.35         530.12%
                  progress                                                                glass substrate production line
     9    Intangible assets        95,716,277.63           58,245,678.58         64.33%   The increase of R&D expenditure

 10        Short-term loan      1,220,000,000.00         485,000,000.00         151.55%   Increase of bank loans for operation and construction
                  Advance                                                                 Increase of advance collections from customers after
 11                                   507,758.84                 25,520.70     1889.60%
                collections                                                               business growth
            Remuneration
                                                                                          Increase of wages and bonuses payable to staff and
 12        payable to staff        16,509,315.93           10,411,854.02         58.56%
                                                                                          workers after enlargement of operation scale
              and workers
          Taxes and levies
 13                              -105,728,577.53           38,348,343.33       -375.71%   Increase of retained tax on purchase
                   payable
 14        Interest payable         1,744,904.21           11,120,419.32        -84.31%   The Company's repayment of due interest payable
                                                                                          Increase of other business related to operating activities
 15        Other payables         227,280,123.31           40,281,900.36        464.22%
                                                                                          with the enlargement of the Company's business scale
           Paid-up capital                                                                The availability of the funds raised through secondary
 16                               903,000,000.00         383,000,000.00         135.77%
                (or share                                                                offering and increase of registered capital


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                                                                           石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


              capital)
                                                                                             The availability of the funds raised through secondary
17      Capital surplus         4,936,606,447.84          404,165,683.34     1121.43%
                                                                                             offering and increase of capital surplus
         Undistributed
18                              -206,776,237.89         -422,691,693.55         51.08%       Increase of profits of the Company
                  profit
                                                                                             Minority shareholders abandoned the right to additional
               Minority
19                                51,773,132.54           111,414,900.27        -53.53%      capital contribution at the time of additional capital
               interests
                                                                                             contribution to subsidiaries

     (II) Analysis of change in items of profit statement
                                                                                                                                        Unit:RMB

                                           Amount for current              Amount for              Rate of
No.                  Item                                                                                                Reason for change
                                                   period              previous period            change (%)
                                                                                                                  Increase of corresponding
 1       Selling expenses                            5,666,189.03            2,283,460.73             148.14%     expenses after enlargement of
                                                                                                                  operation scale
                                                                                                                  Increase of corresponding
 2       Administration expenses                    77,639,915.13           49,046,358.92              58.30%     expenses after enlargement of
                                                                                                                  operation scale
                                                                                                                  Increase of corresponding
 3       Financial experses                            -757,962.56           -1,160,399.28            -34.68%     expenses after enlargement of
                                                                                                                  operation scale
                                                                                                                  The Company disposed part of
                                                                                                                  idle assets and recovered the
 4       Assets impairment loss                    -19,988,352.32            -1,920,114.33            941.00%     accounts receivable for which
                                                                                                                  provision for bad debts was
                                                                                                                  made
                                                                                                                  Increase of governmental
 5       Non-operating income                      122,878,190.43            7,549,151.86           1527.71%      subsidies received and refund of
                                                                                                                  taxes and levies
                                                                                                                  Increase of profits of the
 6       Income tax expenses                        83,825,766.43           58,692,410.15              42.82%
                                                                                                                  Company
         Net profit attributable to
                                                                                                                  Increase of profits of the
 7        the shareholders of the                  214,844,146.37          102,284,947.15             110.04%
                                                                                                                  Company
          listed Company
         Minority shareholders’                                                                                  Increase of profits of the
 8                                                  31,485,575.43           72,366,869.76             -56.49%
         equity                                                                                                   Company

     (III) Analysis of change in items of cash flow statement
                                                                                                                                        Unit:RMB

                                        Amount for              Amount for              Rate of
No.               Item                                                                                             Reason for change
                                      current period          previous period       change (%)
                                                                                                      Increase of other business related to
         Net cash flows from
 1                                    -1,775,315,017.44          -328,370,684.88          440.64%     operating activities with the enlargement of
         operating activities
                                                                                                      the Company's business scale


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                                                                       石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


                                                                                                Increase of cash expenditure for the
       Net cash flows from
2                                 -1,910,248,558.99          -410,098,765.51        365.80%     construction of glass substrate production
       investing activities
                                                                                                line
                                                                                                Increase of loans applied for to banks for
       Net cash flows from
3                                  5,624,567,903.13         1,098,227,255.18        412.15%     daily operation and construction of
       financing activities
                                                                                                production line


II. The progress of significant events and influence, as well as the analysis and explanation on resolving
proposal.

1.As the term of office of the sixth board of directors and supervisory committee of the Company has expired, the 41st meeting of
    the sixth board of directors, the 28th meeting of the sixth supervisory committee and the third provisional shareholders' general
    meeting in 2013 examined and adopted relevant proposals including the Proposal for Reelecting the Board of Directors of the
    Company and the Proposal for Reelecting the Supervisory Committee of the Company (Shareholders' Representatives as
    Supervisors) and the seventh board of directors and supervisory committee were then elected
2.The wholly owned subsidiary of Dongxu Optoelectronic Technology Co., Ltd. has got the "quality management, environmental
    management, occupational health and safety management system" certification, and it achieved the three management system certifi
    cations in September 2013.

                                                                                              Description of the website for disclosing
           Description of provisional announcement                 Date of disclosing
                                                                                                       provisional announcements

                                                                                             China Securities Daily, Hong Kong
    Announcement of the 41st Meeting of the Sixth Board
                                                             July 13, 2013                   Commercial Daily and
     of Directors
                                                                                             www.cninfo.com.cn

                                                                                             China Securities Daily, Hong Kong
    Announcement of Resolutions of the 28th Meeting of
                                                             July 13,2013                    Commercial Daily and
      the Sixth Supervisory Committee
                                                                                             www.cninfo.com.cn

                                                                                             China Securities Daily, Hong Kong
    Announcement of electing the employee representatives
                                                             July 13, 2013                   Commercial Daily and
    as supervisors of the seventh supervisory committee
                                                                                             www.cninfo.com.cn

                                                                                             China Securities Daily, Hong Kong
    Announcement of Resolutions of the Third provisional
                                                             July 30,2013                    Commercial Daily and
    shareholders’ general meeting in 2013
                                                                                             www.cninfo.com.cn

                                                                                             China Securities Daily, Hong Kong
    Announcement of the First Meeting of the Seventh
                                                             July 30, 2013                   Commercial Daily and
     Board of Directors
                                                                                             www.cninfo.com.cn

                                                                                             China Securities Daily, Hong Kong
    Announcement of Resolutions of the First Meeting of
                                                             July 30, 2013                   Commercial Daily and
    the Seventh Supervisory Committee
                                                                                             www.cninfo.com.cn




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                                                                       石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


III.The commitments of the Company and its shareholders holding over 5% of the Company’s total shares
in the report year of extending to the report year from previous year.


                                                                                                               Time of   Period
                       Commitment                                                                              making         of   Fulfill
  Commitment                                                           Contents
                           maker                                                                              commitme commi ment
                                                                                                                  nt     tment

Share merger
reform

Commitments in
report of
acquisition or
equity change

Commitments in
assets replacement

                                         1.From the date of commitment letter issued, except the
                                         managed hosting company for Baoshi Company , this company
                                         and majority-owned subsidiaries do not in any way, directly or
                                         indirectly engaged in business and Baoshi shares and its
                                         subsidiaries are the same, or similar, future Baoshi shares and
                                         its subsidiaries are not engaged in the same or similar
                                         businesses.
                                         2.The company assurances against the use of precious stones
                                         share any act prejudicial to the control relationship of stones
                                         share interests and its wholly-owned subsidiaries, holding, or
                     Dongxu Group
                                         causing Baoshi shares and its wholly-owned subsidiaries,                        Long-t
                     Co., Ltd. And
                                         holding form business competition decisions.                         August     erm
                     Shijiazhuang
                                         3. The company will not directly invest, purchase and Baoshi 17,2012            effecti
Commitments          Baoshi Electronic
                                         shares identical or similar business enterprises and projects.                  ve
made in issuing      Group Co., Ltd.
                                           4.If the assets owned by the company due to any reason in
                                         the future competition with Baoshi shares, the company
                                         (person) will take positive and effective measures to give up
                                         such a competitive business.
                                         5. If the company cause competition with Baoshi shares and
                                         caused loss of gem shares, the company will assume
                                         responsibility for all related.
                                         6. Subject to securities regulation under the relevant conditions,
                                         the company makes a commitment to inject full ownership of
                                         Shijiazhuang Baoshi shares in Baoshi Shares.

                                         Dongxu Group Co., Ltd. subscribed for 25.01% of the shares                      Effecti Perfor
                     Dongxu Group                                                                             April 3,
                                         privately issued by the Company and promised that the period                    ve in     m
                     Co., Ltd.                                                                                2013
                                         of sale restriction of such shares was 36 months from the first                 commi strictly


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                                                                   石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


                                       day of listing.                                                                tment
                                                                                                                      period

                   Huarong
                   Secruities Co.,                                                                                    Effecti
                   Ltd., Yimin Fund                                                                                   ve in
                                       Promised that the period of sale restriction of such shares was                          Perfor
                   Management Co.,                                                                         April 3,   commi
                                       12 months from the first day of listing.                                                 m
                   Ltd., Minsheng                                                                          2013       tment
                                                                                                                                strictly
                   Jiayin Fund                                                                                        period
                   Management ,
                   Co., Ltd.

                                       If Dongxu Group loses the case in which U.S. Conning sued
                                       Dongxu Group in respect of infringement upon business secrets
                   Dongxu Group,                                                                                      Long-t
                                       according to the final judgment of China's court and economic                            Perfor
                   And Shijiazhuang                                                                        October    erm
                                       losses are thus incurred to the production and operation of panel                        m
                   Baoshi Electronic                                                                       20, 2012   effecti
                                       display glass substrate by the Company and its subsidiaries, our                         strictly
                   Group Co., Ltd                                                                                     ve
                                       company will compensate the Company and its subsidiaries for
                                       the economic losses thus incurred.

                                       On September 18, 2006, the Company provided guarantee,
                                       together with Shijiazhuang Baoshi Electronics Group Co., Ltd.,
                                       for the application of Shijiazhuang Construction Investment
                                       Co., Ltd. for loan of RMB 70 million) with some land and
                                       houses (with appraised value of RMB 303018 million) (The
                                       valid guarantee value for the Company is RMB 18.80 million).
                                       The guarantee period is one year. The type of guarantee is                     Long-t
                   Shijiazhuang                                                                                                 Perfor
Other                                  mortgage guarantee. At present, the valid term of this guarantee March 28, erm
                   Baoshi Electronic                                                                                            m
commitments                            has expired. The controlling shareholder has made                   2009       effecti
                   Group Co., Ltd                                                                                               strictly
made to minority                       corresponding commitment in respect of the loss that may be                    ve
shareholders                           incurred by this guarantee. On October 15, 2012, Shijiazhuang
                                       Baoshi Electronics Group Co., Ltd. made the following notes to
                                       this commitment: "The mode of commitment fulfillment by
                                       Baoshi Group: Where the Company is liable to make
                                       compensation for this guarantee, Baoshi Group shall be liable
                                       for direct compensation in full amount."

                                       If Shijiazhuang Baoshi Electronics Group Co., Ltd.plans to sell
                                       tradable stocks of Shijiazhuang Baoshi Electronic Glass
                                       Company Limited through the bid trading system of Shenzhen
                                                                                                                      Long-t
                   Shijiazhuang        Stock Exchange and sell greater than 5% of shares within six                             Perfor
                                                                                                           July 23,   erm
                   Baoshi Electronic months after the first sales, Shijiazhuang Baoshi Electronics                              m
                                                                                                           2009       effecti
                   Group Co., Ltd      Group Co., Ltd.will disclose the contents specified by the Form                          strictly
                                                                                                                      ve
                                       Guide to Prompt Announcement of Removing Restriction on
                                       Sales of Non-tradable Stocks of Listed Companies through the
                                       prompt announcement of disclosing sales of listed companies.

Executed timely    Yes


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                                                                   石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


or not?


IV.Prediction of Business performance for 2013.

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation of reason.


□ Applicable √ Not applicable


V. The registration form of acceptance of investigation, communication and interview in the report period
for future reference


                                                                                                        Content of discussion and
          Date              Place                 Mode               Type                Visitor
                                                                                                            materials provided

                                                                                  Huaxia Fund,
                                                                                                       Visited glass substrate
                    Wuhu Dongxu                                                   Boshi Fund,
                                                                                                       production line and
                    Optoelectronic       Onsite                                   Haifutong Fund,
September 26,2013                                             Organization                             introduced the progress of
                    Technology Co., investigation                                 Guangfa Securities
                                                                                                       the project of glass
                    Ltd.                                                          and Ruichuang
                                                                                                       substrate production line.
                                                                                  Investment

                                                                                                       The progress of the
July2013-                                                                                              Company's projects
                    The Company          Telephone            Individual          Investor
September 2013                                                                                         planned to use IPO
                                                                                                       proceeds




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                                                                石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文



                                            IV Financial statements

1. Consolidated Balance sheet

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                                        Unit:RMB

                                                        Year-end balance
                       Items                                                            Year-beginning balance


Current asset:

  Monetary fund                                                  2,049,774,397.54                        110,770,070.84

     Settlement provision

  Outgoing call loan

     Trading financial assets

     Bill receivable                                                   220,000.00                            800,000.00

  Account receivable                                               793,966,023.26                        573,874,457.07

       Prepayments                                               3,321,502,652.63                        755,954,517.33

     Insurance receivable

  Reinsurance receivable

  Provisions of Reinsurance contracts
receivable

  Interest receivable

  Dividend receivable

     Other account receivable                                      250,935,455.32                         18,664,010.12

 Repurchasing of financial assets

  Inventories                                                      224,329,896.04                        168,716,962.68

Non-current asset due in 1 year

  Other current asset                                               58,127,792.96                         59,507,036.63

Total of current assets                                          6,698,856,217.75                      1,688,287,054.67

Non-current assets:

  Loans and payment on other’s behalf
disbursed

  Disposable financial asset

 Expired investment in possess

 Long-term receivable

 Long term share equity investment                                                                           150,000.00

  Property investment                                               11,489,040.51                         14,230,280.23



                                                                                                                     13
                                            石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


 Fixed assets                                 111,855,632.07                         50,377,603.66

 Construction in progress                    1,241,043,950.18                       196,954,480.35

  Engineering material                                                               39,963,178.76

  Fixed asset disposal

  Production physical assets

 Gas & petrol

     Intangible assets                         95,716,277.63                         58,245,678.58

  R & D petrol

  Goodwill

 Long-germ expenses to be amortized              3,902,067.00

  Differed income tax asset                    16,041,353.83                         13,499,461.84

  Other non-current asset

Total of non-current assets                  1,480,048,321.22                       373,420,683.42

Total of assets                              8,178,904,538.97                     2,061,707,738.09

Current liabilities

 Short-term loans                            1,220,000,000.00                       485,000,000.00

  Loan from Central Bank

  Deposit received and hold for others

  Call loan received

 Trade off financial liabilities

  Bill payable                                150,000,000.00

  Account payable                              61,001,883.67                         74,567,022.25

  Advance payment                                 507,758.84                             25,520.70

  Selling of repurchased financial assets

 Fees and commissions receivable

 Employees’ wage payable                      16,509,315.93                         10,411,854.02

 Tax payable                                  -105,728,577.53                        38,348,343.33

  Interest payable                               1,744,904.21                        11,120,419.32

  Dividend payable

 Other account payable                        227,280,123.31                         40,281,900.36

  Reinsurance fee payable

 Insurance contract provision

  Entrusted trading of securities

 Entrusted selling of securities



                                                                                                14
                                                                   石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


  Non-current liability due in 1 year

  Other current liability                                              61,807,000.00                          62,875,000.00

Total of current liability                                          1,633,122,408.43                         722,630,059.98

Non-current liabilities:

  Long-term loan                                                      800,000,000.00                         800,000,000.00

     Bond payable

  Long-term payable

  Special payable

  Expected liabilities

  Differed income tax liability

Other non-current liabilities                                          33,724,000.00                          35,734,000.00

Total of non-current liabilities                                      833,724,000.00                         835,734,000.00

Total of liability                                                  2,466,846,408.43                       1,558,364,059.98

Owners’ equity

  Share capital                                                       903,000,000.00                         383,000,000.00

     Capital reserves                                               4,936,606,447.84                         404,165,683.34

  Less:Shares in stock

  Special reserve

  Surplus reserves                                                     27,454,788.05                          27,454,788.05

     Common risk provision

     Undistributed profit                                            -206,776,237.89                        -422,691,693.55

 Different of foreign currency translation

Total of owner’s equity belong to the parent
                                                                    5,660,284,998.00                         391,928,777.84
company

Minor shareholders’ equity                                            51,773,132.54                         111,414,900.27

Total of owners’ equity                                            5,712,058,130.54                         503,343,678.11

Total of liabilities and owners’ equity                            8,178,904,538.97                       2,061,707,738.09


Legal representative :Li Zhaoting              Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

2. Balance sheet of the Parent Company

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                             Unit:RMB

                                                        Year-end balance
                     Items                                                                  Year-beginning balance



                                                                                                                         15
                                       石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Current asset:

        Monetary fund                     85,434,953.15                          1,602,670.30

Trading financial assets

 Bill receivable                             220,000.00                           800,000.00

 Account receivable                       11,422,035.57                         19,124,462.91

  Prepayments                             23,960,719.11                          4,349,993.17

  Interest receivable

  Dividend receivable

 Other account receivable                469,415,669.53                          5,702,152.64

 Inventories                              20,630,831.89                         53,659,484.38

  Non-current asset due in 1 year

  Other current asset                         19,211.84                             51,295.48

Total of current assets                  611,103,421.09                         85,290,058.88

Non-current assets:

  Disposable financial asset

  Expired investment in possess

 Long-term receivable

 Long term share equity investment      4,728,458,306.96                       538,944,306.96

 Property investment                       3,737,850.76                          5,716,875.46

  Fixed assets                            26,283,466.49                         29,726,470.55

  Construction in progress                23,712,084.39                         23,495,270.63

Engineering material

  Fixed asset disposal

  Production physical assets

 Gas & petrol

 Intangible assets                        10,945,318.45                         11,172,742.24

 R & D petrol

 Goodwill

  Long-germ expenses to be amortized

Differed income tax asset                  8,176,013.53                         10,612,340.37

 Other non-current asset

Total of non-current assets             4,801,313,040.58                       619,668,006.21

Total of assets                         5,412,416,461.67                       704,958,065.09

Current liabilities



                                                                                           16
                                      石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


  Short-term loans

  Trade off financial liabilities

  Bill payable

  Account payable                        18,526,716.39                         17,848,999.79

 Advance payment                            956,387.90                             10,587.90

 Employees’ wage payable                  4,436,798.22                         4,071,290.00

 Tax payable                               4,641,110.26                          675,668.89

 Interest payable

 Dividend payable

  Other account payable                 192,558,009.32                        474,969,427.94

Non-current liability due in 1 year

Other current liability                      20,000.00                             20,000.00

Total of current liability              221,139,022.09                        497,595,974.52

Non-current liabilities:

  Long-term loan

 Bond payable

  Long-term payable

 Special payable

 Expected liabilities

Differed income tax liability

  Other non-current liabilities              55,000.00                             65,000.00

Total of Non-current liabilities             55,000.00                             65,000.00

Total of liability                      221,194,022.09                        497,660,974.52

Owners’ equity

  Share capital                         903,000,000.00                        383,000,000.00

 Capital reserves                      4,799,360,997.35                       358,047,576.01

  Less:Shares in stock

 Special reserves

     Surplus reserves                    32,204,150.60                         32,204,150.60

     Common risk provision

  Undistributed profit                  -543,342,708.37                      -565,954,636.04

  Different of foreign currency
translation

Total of owners’ equity               5,191,222,439.58                       207,297,090.57




                                                                                          17
                                                                石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Total of liabilities and owners’ equity                          5,412,416,461.67                               704,958,065.09


Legal representative :Li Zhaoting          Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

3. Profit statement(Consolidated) of the report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                              Unit:RMB

                  Items                                Report period                       Same period of the previous year

I. Total operating income                                          282,537,595.39                                217,238,193.07

Including:Operating income                                        282,537,595.39                                217,238,193.07

      Interest income

         Insurance gained

 Commission charge and commission
income

II. Total operating cost                                           162,944,259.31                                110,578,775.28

Including:Operating cost                                          150,941,870.04                                 86,635,061.46

         Interest expense

Commission chare and commission
expense

         Cash surrender value

  Net amount of expense of
compensation

 Net amount of withdrawal of
insurance contract reserve

         Bonus expense of guarantee slip

         Reinsurance expense

         Operating tax and extras                                       3,679,481.63                                9,802,010.64

      Sales expenses                                                    1,845,919.22                                 913,137.77

         Administration expenses                                       24,976,978.62                              15,551,279.12

     Financial expenses                                                 1,388,262.49                                 -652,586.47

Losses of devaluation of assets                                        -19,888,252.69                              -1,670,127.24

 Add :Changing income of fair value

 Investment income

Including:Investment income on
 affiliate company and joint venture

 Exchange income


                                                                                                                              18
                                                                  石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


III. Operating profit                                                  119,593,336.08                            106,659,417.79

Add :Non-operating income                                              14,787,383.70                               7,230,000.90

  Less:Non-operating expense                                               11,274.12                               2,001,472.82

Including :Disposal loss of non-current
assets

IV. Total profit                                                    134,369,445.66                               111,887,945.87

Less:Income tax                                                        28,293,619.71                             27,094,919.74

V. Net profit                                                       106,075,825.95                                84,793,026.13

  Including: Net profit realized by the
entity taken over before the takeover

Net profit attributable to owner’s equity
                                                                    100,876,520.37                                61,109,162.97
of parent company

     Minority shareholders’ gains and
                                                                         5,199,305.58                             23,683,863.16
 losses

VI. Earnings per share:                                     --                                           --

(I)Basic earnings per share                                                    0.11                                         0.16

 (II)Diluted earnings per share                                                  0.11                                         0.16

VII. Other comprehensive income

VIII. Total comprehensive income                                    106,075,825.95                                84,793,026.13

Total comprehensive income
attributable to the owner of the parent                             100,876,520.37                                61,109,162.97
company

 Total comprehensive income
                                                                         5,199,305.58                             23,683,863.16
attributable minority shareholders


Legal representative :Li Zhaoting           Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

4. Profit statement(Parent Company) of the report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                              Unit:RMB

                   Items                               Report period                       Same period of the previous year

I. Business income                                                      26,473,475.19                               9,585,935.39

  Less:Business cost                                                   23,000,356.62                               7,001,307.99

     Business tax and surcharge                                           514,717.41                                 256,732.55

     Sales expense                                                        148,698.74                                 202,066.22

 Administrative expense                                                  4,081,903.71                               3,216,768.20



                                                                                                                                19
                                                                  石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


    Financial expenses                                                     -11,773.75                                  -6,986.04

 Asset impairment loss                                                 -17,706,054.69                              -1,670,127.24

  Add:Gains from change of fir value
(“-”for loss)

  Investment gain(“-”for loss)

  Incl: investment gains from affiliates

II. Operational profit                                                 16,445,627.15                                 586,173.71

 Add:Non-business income                                               6,674,592.01                                2,580,000.00

 Less:Non business expenses                                                                                              300.00

         Incl:Loss from disposal of
non-current assets

III.Total profit                                                       23,120,219.16                                3,165,873.71

     Less:Income tax expenses

IV. Net profit                                                         23,120,219.16                                3,165,873.71

V. Earnings per share                                        --                                           --

(I)Basic earnings per share                                                   0.03                                          0.01

 (II)Diluted earnings per share                                                 0.03                                          0.01

VII. Other comprehensive income

VIII. Total comprehensive income                                       23,120,219.16                                3,165,873.71


Legal representative :Li Zhaoting          Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

5. Profit statement(Consolidated) from year-begin to the end of report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                              Unit:RMB

                    Items                              Report period                       Same period of the previous year

I. Total operating income                                           537,579,949.47                               578,593,939.24

Including:Operating income                                         537,579,949.47                               578,593,939.24

      Interest income

         Insurance gained

 Commission charge and commission
income

II. Total operating cost                                            329,780,771.52                               350,779,291.22

Including:Operating cost                                           259,533,928.14                               279,915,406.82

         Interest expense



                                                                                                                                20
                                                 石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Commission chare and commission
expense

          Cash surrender value

  Net amount of expense of
compensation

 Net amount of withdrawal of
insurance contract reserve

          Bonus expense of guarantee slip

          Reinsurance expense

          Operating tax and extras                   7,687,054.10                         22,614,578.36

         Sales expenses                              5,666,189.03                          2,283,460.73

          Administration expenses                   77,639,915.13                         49,046,358.92

     Financial expenses                               -757,962.56                         -1,160,399.28

Losses of devaluation of assets                     -19,988,352.32                        -1,920,114.33

 Add :Changing income of fair value

 Investment income

Including:Investment income on
 affiliate company and joint venture

 Exchange income

III. Operating profit                              207,799,177.95                        227,814,648.02

Add :Non-operating income                         122,878,190.43                          7,549,151.86

  Less:Non-operating expense                          521,880.15                          2,019,572.82

Including :Disposal loss of non-current
assets

IV. Total profit                                   330,155,488.23                        233,344,227.06

Less:Income tax                                    83,825,766.43                         58,692,410.15

V. Net profit(“-”for net loss                   246,329,721.80                        174,651,816.91

  Including: Net profit realized by the
entity taken over before the takeover

  Net profit attributable to the owners
                                                   214,844,146.37                        102,284,947.15
of parent company

  Minority shareholders’ equity                    31,485,575.43                         72,366,869.76

VI. Earnings per share:                    --                                    --

(I)Basic earnings per share                                0.32                                  0.27

 (II)Diluted earnings per share                              0.32                                  0.27

VII. Other comprehensive income


                                                                                                     21
                                                                  石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


VIII. Total comprehensive income                                    246,329,721.80                               174,651,816.91

Total comprehensive income
attributable to the owner of the parent                             214,844,146.37                               102,284,947.15
company

 Total comprehensive income
                                                                       31,485,575.43                              72,366,869.76
attributable minority shareholders


Legal representative :Li Zhaoting          Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

6. Profit statement(Parent company) from year-begin to the end of report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                              Unit:RMB

                    Items                              Report period                       Same period of the previous year

           I. Business income                                          73,459,091.27                              90,284,817.40

  Less:Business cost                                                  58,568,674.53                              73,639,810.21

     Business tax and surcharge                                         2,275,317.74                                2,378,985.36

     Sales expense                                                        413,693.77                                 394,804.61

 Administrative expense                                                16,171,034.14                              13,217,324.98

    Financial expenses                                                  -1,526,737.09                                 -29,538.64

 Asset impairment loss                                                 -17,806,154.32                              -1,920,114.33

  Add:Gains from change of fir value
(“-”for loss)

  Investment gain(“-”for loss)

  Incl: investment gains from affiliates

II. Operational profit                                                 15,363,262.50                                2,603,545.21

 Add:Non-business income                                               9,684,992.01                                2,879,284.80

 Less:Non business expenses                                                                                              300.00

        Incl:Loss from disposal of
non-current assets

III.Total profit                                                       25,048,254.51                                5,482,530.01

     Less:Income tax expenses                                          2,436,326.84

IV. Net profit                                                         22,611,927.67                                5,482,530.01

V. Earnings per share                                        --                                           --

(I)Basic earnings per share                                                   0.03                                          0.01

 (II)Diluted earnings per share                                                 0.03                                          0.01

VI. Other comprehensive income


                                                                                                                                22
                                                                石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


VII. Total comprehensive income                                        22,611,927.67                               5,482,530.01


Legal representative :Li Zhaoting            Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

7. Cash flow statement( Consolidated) from year-begin to the end of report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                             Unit:RMB

                     Items                             Report period                      Same period of the previous year

I.Cash flows from operating activities

  Cash received from sales of goods or
                                                                   146,689,137.04                               282,744,345.38
             rending of services

  Net increase of customer deposits
and capital kept for brother company

       Net increase of loans from central
bank

       Net increase of inter-bank loans
from other financial bodies

Cash received against original insurance
contract

       Net cash received from reinsurance
business

       Net increase of client deposit and
investment

      Net increase of trade financial asset
disposal

Cash received as interest, processing fee
and     commission

 Net increase of inter-bank fund
  received

       Net increase of repurchasing
business

      Tax returned                                                     49,378,420.77                                130,332.80

Other cash received from business
                                                                   951,949,860.31                               140,391,319.87
operation

      Sub-total of cash inflow                                    1,148,017,418.12                              423,265,998.05

 Cash paid for purchasing of
                                                                  1,195,557,067.38                              286,506,365.27
  merchandise and services




                                                                                                                             23
                                             石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


 Net increase of client trade and
advance

Net increase of savings n central bank
and brother company

Cash paid for original contract claim

 Cash paid for interest, processing fee
and commission

 Cash paid for policy dividend

  Cash paid to staffs or paid for staffs       139,967,304.97                         68,042,658.22

 Taxes paid                                    150,251,096.55                         74,277,053.37

  Other cash paid for business
                                              1,437,556,966.66                       322,810,606.07
activities

  Sub-total of cash outflow from
                                              2,923,332,435.56                       751,636,682.93
  business activities

  Cash flow generated by business
                                             -1,775,315,017.44                      -328,370,684.88
operation, net

II.Cash flow generated by investing

 Cash received from investment
retrieving

 Cash received as investment gains

Net cash retrieved from disposal of
fixed assets, intangible assets, and other       6,626,000.00
long-term assets

Net cash received from disposal of
subsidiaries or other operational units

Other investment-related cash received                                                16,320,000.00

 Sub-total of cash inflow due to
                                                 6,626,000.00                         16,320,000.00
investment activities

Cash paid for construction of
fixed assets, intangible assets               1,916,874,558.99                       426,418,765.51
and other long-term assets

Cash paid as investment

Net increase of loan against pledge

Net cash received from subsidiaries and
other operational units

Other cash paid for investment
activities



                                                                                                 24
                                                                石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


Sub-total of cash outflow due to
                                                                  1,916,874,558.99                               426,418,765.51
investment activities

 Net cash flow generated by investment                           -1,910,248,558.99                              -410,098,765.51

III.Cash flow generated by financing

     Cash received as investment                                  4,970,803,173.33                                  1,875,000.00

  Incl: Cash received as investment
from minor shareholders

     Cash received as loans                                       1,855,000,000.00                             1,135,275,289.20

     Cash received from bond placing

  Other financing –related ash received                                   39,032.57                                9,207,560.42

  Sub-total of cash inflow from
                                                                  6,825,842,205.90                             1,146,357,849.62
financing activities

     Cash to repay debts                                          1,120,000,000.00                                40,000,000.00

 Cash paid as dividend, profit, or
                                                                        80,960,969.44                               6,480,594.44
interests

Incl: Dividend and profit paid by
subsidiaries to minor shareholders

Other cash paid for financing activities                                  313,333.33                                1,650,000.00

 Sub-total of cash outflow due to
                                                                  1,201,274,302.77                                48,130,594.44
financing activities

Net cash flow generated by financing                              5,624,567,903.13                             1,098,227,255.18

IV. Influence of exchange rate
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                                  1,939,004,326.70                               359,757,804.79
equivalents

 Add: balance of cash and cash
                                                                       110,770,070.84                             15,847,225.73
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                                  2,049,774,397.54                               375,605,030.52
equivalents at the end of term


Legal representative :Li Zhaoting          Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

8. Cash flow statement(Parent Company) from year-begin to the end of report period

Prepared by Shijiazhuang Baoshi Electronic Glass Co., Ltd.                              Unit:RMB

                  Items                                Report period                       Same period of the previous year

I.Cash flows from operating activities


                                                                                                                              25
                                             石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


 Cash received from sales of goods or
                                                59,190,598.05                        129,616,157.74
             rending of services

    Tax returned                                      3,803.58                          129,270.64

Other cash received from business
                                               384,634,320.10                        473,295,938.80
operation

  Sub-total of cash inflow                     443,828,721.73                        603,041,367.18

     Cash paid for purchasing of
                                                  8,778,008.82                        15,968,989.63
merchandise and services

  Cash paid to staffs or paid for staffs        12,960,746.16                         11,098,916.15

 Taxes paid                                       9,447,215.46                        20,568,884.19

  Other cash paid for business
                                              1,116,572,468.44                        92,807,142.37
activities

  Sub-total of cash outflow from
                                              1,147,758,438.88                       140,443,932.34
  business activities

  Cash flow generated by business
                                               -703,929,717.15                       462,597,434.84
operation, net

II.Cash flow generated by investing

 Cash received from investment
retrieving

 Cash received as investment gains

Net cash retrieved from disposal of
fixed assets, intangible assets, and other        6,626,000.00
long-term assets

Net cash received from disposal of
subsidiaries or other operational units

Other investment-related cash received

 Sub-total of cash inflow due to
                                                  6,626,000.00
investment activities

Cash paid for construction of
fixed assets, intangible assets                                                        1,936,358.97
and other long-term assets

     Cash paid as investment                  4,189,664,000.00                       459,525,000.00

Net cash received from subsidiaries and
other operational units

Other cash paid for investment
activities

Sub-total of cash outflow due to
                                              4,189,664,000.00                      461,461,358..97
investment activities

 Net cash flow generated by investment       -4,183,038,000.00                      -461,461,358.97

III.Cash flow generated by financing

  Cash received as investment                 4,970,800,000.00


                                                                                                 26
                                                                 石家庄宝石电子玻璃股份有限公司 2013 年第三季度报告全文


     Cash received as loans

     Cash received from bond placing

  Other financing –related ash received

  Sub-total of cash inflow from
                                                                  4,970,800,000.00
financing activities

  Cash to repay debts

  Cash paid as dividend, profit, or
interests

Other cash paid for financing activities

 Sub-total of cash outflow due to
financing activities

Net cash flow generated by financing                              4,970,800,000.00

IV. Influence of exchange rate
alternation on cash and cash equivalents

V.Net increase of cash and cash
                                                                     83,832,282.85                            1,136,075.87
equivalents

 Add: balance of cash and cash
                                                                      1,602,670.30                            2,267,777.81
equivalents at the beginning of term

VI ..Balance of cash and cash
                                                                     85,434,953.15                            3,403,853.68
equivalents at the end of term


Legal representative :Li Zhaoting           Person-in-charge of the accounting work:Li Quannian

Person-in -charge of the accounting organ:Li Zhiyong

II. Auditor’ report

Whether the third quarterly report had been audited or not


□ Yes √ No

The third quarterly report 2013 which not audited.


      This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version
shall prevail.



                                                             Shijiazhuang Baoshi Electronic Glass Co., Ltd.

                                                                 Board chairman:Li Zhaoting

                                                        Date of submitting approved by the Board :October 28,2013




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