<SEC-DOCUMENT>0001104659-19-062839.txt : 20191113
<SEC-HEADER>0001104659-19-062839.hdr.sgml : 20191113
<ACCEPTANCE-DATETIME>20191113060137
ACCESSION NUMBER: 0001104659-19-062839
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20191113
FILED AS OF DATE: 20191113
DATE AS OF CHANGE: 20191113
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Hollysys Automation Technologies, Ltd.
CENTRAL INDEX KEY: 0001357450
STANDARD INDUSTRIAL CLASSIFICATION: ELECTRICAL INDUSTRIAL APPARATUS [3620]
IRS NUMBER: 000000000
STATE OF INCORPORATION: D8
FISCAL YEAR END: 0630
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-33602
FILM NUMBER: 191211570
BUSINESS ADDRESS:
STREET 1: NO. 2 DISHENG MIDDLE ROAD,
STREET 2: BEIJING ECONOMIC-TECH DVLPMNT AREA
CITY: BEIJING
STATE: F4
ZIP: 100176
BUSINESS PHONE: 86 10 58981000
MAIL ADDRESS:
STREET 1: NO. 2 DISHENG MIDDLE ROAD,
STREET 2: BEIJING ECONOMIC-TECH DVLPMNT AREA
CITY: BEIJING
STATE: F4
ZIP: 100176
FORMER COMPANY:
FORMER CONFORMED NAME: HLS SYSTEMS INTERNATIONAL LTD
DATE OF NAME CHANGE: 20060324
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<FILENAME>tm1922725-1_6k.htm
<DESCRIPTION>FORM 6-K
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> <B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</B></P>
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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 6-K </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 OR 15d-16<BR>
UNDER THE SECURITIES EXCHANGE ACT OF 1934 </B></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">For the Month of November, 2019</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Commission File Number: 001-33602</P>
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<TD STYLE="border-bottom: #111111 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 14pt"><B>HOLLYSYS AUTOMATION TECHNOLOGIES LTD.</B></FONT></TD></TR>
<TR>
<TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Exact name of registrant as specified in its charter)</FONT></TD></TR>
<TR>
<TD STYLE="font-size: 10pt"> </TD></TR>
<TR>
<TD STYLE="font-size: 10pt"> </TD></TR>
<TR>
<TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">No.2 Disheng Middle Road</FONT></TD></TR>
<TR>
<TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Beijing Economic-Technological Development Area</FONT></TD></TR>
<TR>
<TD STYLE="border-bottom: #111111 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">Beijing, People's Republic of China, 100176</FONT></TD></TR>
<TR>
<TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Address of principal executive offices)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F <FONT STYLE="font-family: Wingdings">x</FONT><B>
</B>Form 40-F <FONT STYLE="font-family: Wingdings">¨</FONT></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation ST Rule 101(b)(1): Not Applicable</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation ST Rule 101(b)(7): Not Applicable</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hollysys Automation Technologies Ltd. (“Hollysys”
or the “Company”) is furnishing this Form 6-K to provide the unaudited financial information for the three months ended
September 30, 2019 and incorporate such financial information into the Company’s registration statements referenced below.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt">This Form
6-K is hereby incorporated by reference into the registration statements of the Company on Form S-8 (Registration Numbers 333-17081
and 333-208615) and on Form F-3 (Registration Numbers 333-208631</FONT> and <FONT STYLE="font-size: 10pt">333-230768) to the extent
not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended,
or the Securities Exchange Act of 1934, as amended.</FONT></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibits </B></P>
<P STYLE="margin-top: 0; margin-bottom: 0"> </P>
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<TR>
<TD STYLE="width: 10%; font-size: 10pt"><FONT STYLE="font-size: 10pt"><U>Exhibit</U></FONT></TD>
<TD STYLE="width: 90%; font-size: 10pt"><FONT STYLE="font-size: 10pt"><U>Description</U></FONT></TD></TR>
<TR>
<TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt"> </TD></TR>
<TR>
<TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
<TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Press Release, dated November 13, 2019.</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
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<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">HOLLYSYS
AUTOMATION TECHNOLOGIES LTD.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"> </FONT></TD><TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"> </FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="width: 60%"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><FONT STYLE="font-size: 10pt">By:</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="width: 36%; font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/
Baiqing Shao</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">Baiqing Shao</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
<TD><FONT STYLE="font-size: 10pt"> </FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date: November 13, 2019</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
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<TR>
<TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt"><U>Exhibit</U></FONT></TD>
<TD STYLE="width: 90%"><FONT STYLE="font-size: 10pt"><U>Description</U></FONT></TD></TR>
<TR>
<TD> </TD>
<TD> </TD></TR>
<TR>
<TD><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
<TD><FONT STYLE="font-size: 10pt">Press Release, dated November 13, 2019</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tm1922725d1_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>
<P STYLE="margin: 0; text-align: right"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B> <IMG SRC="image_001.jpg" ALT=""></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B><U>FOR IMMEDIATE RELEASE</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B> </B></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Hollysys Automation Technologies
Reports Unaudited </U></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Financial Results for the First
Quarter Ended September 30, 2019</U></P>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>First Quarter of Fiscal Year 2020
Financial Highlights</U></B></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Non-GAAP
net income attributable to Hollysys</B> was $29.8 million, an increase of 6.1% compared to the comparable prior year period.</FONT></TD>
</TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total revenues</B> were $123.2 million,
a decrease of 11.2% compared to the comparable prior year period. </FONT></TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Non-GAAP gross margin</B> was at 37.7%,
compared to 37.2% for the comparable prior year period. </FONT></TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Non-GAAP
diluted EPS</B> was $0.49, an increase of 6.5% compared to the comparable prior year period.</FONT></TD>
</TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Net
cash provided by operating activities</B> was $39.0 million for the current quarter.</FONT></TD>
</TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>DSO
</B>of 204 days, compared to 170 days for the comparable prior year period.</FONT></TD>
</TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">·</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Inventory
turnover days</B> of 56 days, compared to 51 days for the comparable prior year period.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beijing, China – November 13, 2019
– Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) ("Hollysys" or the "Company"), a leading provider
of automation and control technologies and applications in China, today announced its unaudited financial results for the first
quarter of fiscal year 2020 ended September 30, 2019 (see attached tables). The management of Hollysys, stated:</P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Value: 2; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-weight: normal">IA
business finished the quarter with revenue and contract at $64.6 million and $84.0 million, achieving 12.0% and 4.6% YOY growth
respectively. Under the guidance of our “3+1+N” strategy, we continued our effort in market penetration in different
industries. In our power business, we signed a contract to provide control solution to urban heat supply network, which is the
first project of this kind for Hollysys. In chemical business, we have officially completed the milestone Zhong’an coal-chemical
project and will continue to provide maintenance and other services afterwards. The project is one of the largest MAV-DCS projects
for Hollysys and we provided total solution covering the integration of up to ten systems including control system, asset management
system, alarm system, gas detection system, etc. In the petrochemical industry, with our DCS and SIS being certified by CCS (China
Classification Society) earlier this year, we are better qualified in providing control solution in offshore oil related business.
Our strategic relationship with CNOOC (China National Offshore Oil Corporation) proceeded further as we signed several contracts
with them in providing control solution to their offshore oil platform this quarter. Besides market penetration through newly-built
projects, we have kept leveraging on our nation-wide network to respond to the aftersales demand of different industries, especially
as the control products are approaching the end of life cycle. We maintained close relationship with our existing customers through
various types of aftersales service, while also exploited the opportunities in obtaining new clients through replacement and upgrade
project, especially in the chemical and petrochemical industries. We are also building up our capability in providing more comprehensive
solution covering full life cycle of the project. With the recent completion of the acquisition of a small pharmaceutical and chemical
design institute, we are able to get involved in potential projects at earlier stage in the future for better opportunities. In
our smart factory solution, following our previous breakthrough contract in the power industry, we have signed several contracts
this quarter with both existing and new customers from the chemical industry. Such will be long term cooperation so as to turn
their production smart comprehensively step by step. We have also broadened our industrial software solution matrix, as we launched
a new solution that help to optimize emission control and signed the first contract with a client from the power industry. </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Rail business finished the quarter with
revenue and contract at $44.6 million and $21.0 million, recording 11.5% and 70.6% YOY decrease respectively. In the high-speed
rail business, the bidding pace of CRC has not met the expectation of the market. We continued to provide aftersales service on
our high-speed rail signaling products covering software upgrade, spare parts sales, maintenance and replacement. Meanwhile, we
are also actively preparing ourselves for new products and services in the aftersales high-speed rail market. In the inter-city
high-speed rail business, we signed contracts to provide ATP with automatic train operation function to the Pearl River Delta region.
In subway business, the subway line for the new Beijing Daxing Airport commenced business operation in September, with Hollysys
being the provider of SCADA solution that supports driverless operation. Going forward, our rail business will continue to adhere
to the diversity strategy for stable and healthy growth and to improve our local service network for more value-adding and differentiated
services. With urbanization as an ongoing process, we will keep leveraging our strong R&D capacity and prepare for the application
of various types of railway transportation systems in the future.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">M&E business finished the quarter with
revenue and contract at $14.0 million and $33.6 million, recording 54.2% YOY decrease and 128.0% YOY increase respectively. Given
the macro economy in Southeast Asia and the Middle East, risk control remains to be the key focus of our M&E business. In IA
overseas business, progress is constantly made in terms of establishment of new cooperation with new key EPC players as well as
ongoing cooperation with existing partners. Going forward, we will continue our effort in developing partnership with key EPC players,
and strengthening localization in manufacture, marketing and services in overseas business.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Fiscal Quarter Ended September 30,
2019 Unaudited Financial Results Summary</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To facilitate a clear understanding of
Hollysys’ operational results, a summary of unaudited non-GAAP financial results is shown as below:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>(In USD thousands, except for number
of shares and per share data)</U></I></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; padding-bottom: 1pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Three months ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Sep 30, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Sep 30, 2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">% <BR> Change</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 58%; font: 10pt Times New Roman, Times, Serif">Revenues</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">123,230</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">138,719</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">(11.2</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Integrated contract revenue</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">104,466</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">116,650</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(10.4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Products sales</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,123</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,040</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(23.8</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Service rendered</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,641</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,029</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(9.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Cost of revenues</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">76,771</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">87,178</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(11.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Gross profit</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">46,459</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">51,541</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(9.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Total operating expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,291</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21,501</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8.3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; padding-left: 0.125in">Selling</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,277</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,709</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(5.6</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">General and administrative</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,592</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,570</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23.6</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Research and development</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,942</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,769</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">VAT refunds and government subsidies</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3,520</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3,547</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(0.8</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Income from operations</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,168</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">30,040</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(22.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Other income, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,025</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">558</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">262.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Foreign exchange gain (loss)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">604</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(123</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(591.1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Gains on disposal of investments in equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,763</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Share of net income of equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,541</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">98</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1472.4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest income</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,029</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,099</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2.2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(113</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(106</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.6</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Income tax expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,209</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,455</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">13.8</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Net income attributable to non-controlling interests</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(43.5</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Non-GAAP net income attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,782</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">28,065</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Non-GAAP basic EPS</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.5</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Non-GAAP diluted EPS</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.5</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Share-based compensation expenses</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">26</TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">84</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(69.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Amortization of acquired intangible assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">80</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(6.3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -0.125in; padding-left: 0.125in">GAAP Net income attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,681</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27,901</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">GAAP basic EPS</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.5</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">GAAP diluted EPS</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.5</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Basic weighted average common shares outstanding</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">60,470,611</TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,448,111</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Diluted weighted average common shares outstanding</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">60,483,884</TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">61,263,566</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1.3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">)%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operational Results Analysis for the
First Quarter Ended September 30, 2019</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Comparing to the first quarter of the prior
fiscal year, the <B>total revenues</B> for the three months ended September 30, 2019 decreased from $138.7 million to $123.2 million,
representing a decrease of 11.2%. Broken down by the revenue types, integrated contracts revenue decreased by 10.4% to $104.5 million,
products sales revenue decreased by 23.8% to $6.1 million, and services revenue decreased by 9.9% to $12.6 million.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s <B>total revenues</B>
can also be presented in segments as shown in the following chart:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif">(In USD thousands)</TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="6" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="14" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Three months ended Sep 30,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">$</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">% to Total<BR>
Revenue</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">$</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">% to Total<BR>
Revenue</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 44%; font: 10pt Times New Roman, Times, Serif; text-align: left">Industrial Automation</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">64,637</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">52.4</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">57,720</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">41.6</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Rail Transportation Automation</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">44,576</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36.2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50,368</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36.3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Mechanical and Electrical Solution</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">14,017</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">11.4</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">30,631</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">22.1</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Total</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">123,230</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">100.0</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">138,719</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">100.0</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Overall gross margin excluding non-cash
amortization of acquired intangibles (non-GAAP gross margin</B>) was 37.7% for the three months ended September 30, 2019, as compared
to 37.2% for the same period of the prior year. <B>The non-GAAP gross margin for integrated contracts, product sales, and services
rendered</B> were 32.6%, 79.9% and 59.5% for the three months ended September 30, 2019, as compared to 30.8%, 75.0% and 67.9% for
the same period of the prior year, respectively. The gross margin fluctuation was mainly due to the different revenue mix with
different margins. <B>The GAAP overall gross margin</B> which includes non-cash amortization of acquired intangibles was 37.6%
for the three months ended September 30, 2019, as compared to 37.1% for the same period of the prior year. <B>The GAAP gross margin
for integrated contracts, product sales, and service rendered</B> was 32.5%, 79.9% and 59.5% for the three months ended September
30, 2019, as compared to 30.8%, 75.0% and 67.9% for the same period of the prior year, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Selling expenses</B> were $7.3 million
for the three months ended September 30, 2019, representing a decrease of $0.4 million or 5.6% compared to $7.7 million for the
same quarter of the prior year. Presented as a percentage of total revenues, selling expenses were 5.9% and 5.6% for the three
months ended September 30, 2019, and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>General and administrative expenses,
excluding non-cash share-based compensation expenses (non-GAAP G&A expenses)</B>, were $10.6 million for the quarter ended
September 30, 2019, representing an increase of $2.0 million or 23.6% compared to $8.6 million for the same quarter of the prior
year. Presented as a percentage of total revenues, non-GAAP G&A expenses were 8.6% and 6.2% for quarters ended September 30,
2019 and 2018, respectively. <B>The GAAP G&A expenses</B> which include the non-cash share-based compensation expenses were
$10.6 million and $8.7 million for the three months ended September 30, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Research and development expenses</B>
were $8.9 million for the three months ended September 30, 2019, representing an increase of $0.1 million or 2.0% compared to $8.8
million for the same quarter of the prior year. Presented as a percentage of total revenues, R&D expenses were 7.3% and 6.3%
for the quarter ended September 30, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The VAT refunds and government subsidies</B>
were $3.5 million and $3.5 million for the quarter ended September 30, 2019 and 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The income tax expenses and the effective
tax rate</B> were $6.2 million and 17.3% for the three months ended September 30, 2019, as compared to $5.5 million and 16.3% for
comparable prior year period. The effective tax rate fluctuation was mainly due to the different pre-tax income mix with different
tax rates, as the Company’s subsidiaries are subject to different tax rates in various jurisdictions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The non-GAAP net income attributable
to Hollysys,</B> which excludes the non-cash share-based compensation expenses calculated based on the grant-date fair value of
shares or options granted, amortization of acquired intangible assets, and fair value adjustments of a bifurcated derivative, was
$29.8 million or $0.49 per diluted share based on 60.5 million diluted weighted average ordinary shares outstanding for the three
months ended September 30, 2019. This represents a 6.1% increase over $28.1 million or $0.46 per share based on 61.3 million diluted
weighted average ordinary shares outstanding reported in the comparable prior year period. <B>On a GAAP basis, net income attributable
to Hollysys</B> was $29.7 million or $0.49 per diluted share representing an increase of 6.4% over $27.9 million or $0.46 per diluted
share reported in the comparable prior year period.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Contracts and Backlog Highlights</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hollysys achieved $138.6 million of new
contracts for the three months ended September 30, 2019. The backlog as of September 30, 2019 was $578.9 million. The detailed
breakdown of new contracts and backlog by segments is shown below:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">(In USD thousands)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">New contracts achieved</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">for the three months<BR> ended Sep 30, 2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Backlog<BR>
as of Sep 30, 2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">% to Total<BR> Contract</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">$</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">% to Total<BR> Backlog</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 44%; font: 10pt Times New Roman, Times, Serif; text-align: left">Industrial Automation</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">83,960</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">60.5</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">195,341</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">33.7</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Rail Transportation</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21,008</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">15.2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">288,972</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">49.9</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Mechanical and Electrical Solutions</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">33,640</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">24.3</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">94,578</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">16.3</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Total</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">138,608</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">100.0</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">578,891</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">100.0</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Cash Flow Highlights</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the fiscal year ended September 30,
2019, the total <B>net cash inflow </B>was $15.3 million. The <B>net cash provided by operating activities</B> was $39.0 million.
The <B>net cash provided by investing activities</B> was $8.1 million and mainly consisted of $31.9 million of matured time deposits,
and $4.5 million of proceeds received for the disposal of an equity investment, which were partially offset by $27.8 million of
time deposits placed with banks. The <B>net cash used in financing activities</B> was $20.3 million and mainly consisted of $20.0
million repayments of bonds payable.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Balance Sheet Highlights</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total amount of <B>cash and cash equivalents
</B>were $340.0 million, $332.5 million, and $276.9 million as of September 30, 2019, June 30, 2019 and September 30, 2018, respectively.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended September 30,
2019, DSO was 204 days, as compared to 170 days for the comparable prior year period and 160 days for the last quarter; and inventory
turnover was 56 days, as compared to 51 days for the comparable prior year period and 42 days for the last quarter.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Conference Call</U></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company will host a conference call at 8:00 pm November
13, 2019 U.S. Eastern Time / 9:00 am November 14, 2019 Beijing Time, to discuss the financial results for the first quarter of
fiscal year 2020 ended September 30, 2019 and business outlook.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To participate, please call the following numbers ten minutes
before the scheduled start of the call. The conference call identification number is <B>6174508.</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B> </B></P>
<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 35%; padding: 0.75pt; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Standard International Dial-In Number: </B></FONT></TD>
<TD STYLE="width: 65%; padding: 0.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">+65 67135090</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><B>Participant Local Dial-In Numbers:</B></FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="color: Black"> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 35%; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Australia,
Sydney </FONT></TD>
<TD STYLE="width: 65%; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+61 290833212</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Domestic</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">4006208038</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Domestic Landline only</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">8008190121</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Hong Kong</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+852 30186771</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Taiwan</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+886 255723895</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Japan, Tokyo</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+81 345036012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Korea (South), Seoul</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+82 27395177</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">United Kingdom, London </FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+44 2036214779</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">United States, New York</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">+1 8456750437</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><B>Participant ITFS Dial-In Numbers:</B></FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="color: Black"> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Australia</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">1800411623</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Australia</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">1300717205</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Belgium</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">080071900</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Canada</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">18663861016</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">France</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0800912761</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Germany</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">08001820671</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Hong Kong</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">800906601</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">China, Taiwan</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0809091568</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">India</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">18002666846</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Indonesia, PT Indosat access</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0018030179156</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Indonesia, PT Telkom access</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0078030179156</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Italy</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">800874737</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Japan</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0120925376</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Korea (South), Domestic</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0808500474</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Malaysia</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">1800820152</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Netherlands</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">08000221931</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">New Zealand</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0800880084</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Norway</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">80010719</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Philippines</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">180016120306</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Switzerland</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">0800561006</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Thailand</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">001800656772</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">United Kingdom</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">08082346646</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">United States</FONT></TD>
<TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">18665194004</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
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<DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt"> </P></DIV>
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, a recording of the conference call will be accessible within 48 hours via Hollysys' website at: </FONT><U>http://hollysys.investorroom.com</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>About Hollysys Automation Technologies
Ltd. (NASDAQ: HOLI)</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hollysys is a leading automation control
system solutions provider in China, with overseas operations in eight other countries and regions throughout Asia. Leveraging
its proprietary technology and deep industry know-how, Hollysys empowers its customers with enhanced operational safety, reliability,
efficiency, and intelligence which are critical to their businesses. Hollysys derives its revenues mainly from providing integrated
solutions for industrial automation and rail transportation. In industrial automation, Hollysys delivers the full spectrum of automation
hardware, software, and services spanning field devices, control systems, enterprise manufacturing management and cloud-based applications.
In rail transportation, Hollysys provides advanced signaling control and SCADA (Supervisory Control and Data Acquisition) systems
for high-speed rail and urban rail (including subways). Founded in 1993, with technical expertise and innovation, Hollysys has
grown from a research team specializing in automation control in the power industry into a group providing integrated automation
control system solutions for customers in diverse industry verticals. As of March 2019, Hollysys had cumulatively carried
out more than 25,000 projects for approximately 15,000 customers in various sectors including power, petrochemical, high-speed
rail, and urban rail, in which Hollysys has established leading market positions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B> </B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>SAFE HARBOUR:</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical
fact included herein are "forward-looking statements," including statements regarding: the ability of the Company to
achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other
statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology
such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Such
forward-looking statements, based upon the current beliefs and expectations of Hollysys' management, are subject to risks and uncertainties,
which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of
the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities
and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities
laws, the Company does not assume a duty to update these forward-looking statements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>
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<DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt"> </P></DIV>
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>For further information, please contact:</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Hollysys Automation Technologies Ltd.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>www.hollysys.com</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">+8610-58981386</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>investors@hollysys.com</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
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<DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt"> </P></DIV>
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>HOLLYSYS AUTOMATION TECHNOLOGIES LTD.</B></FONT></P>
<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME</B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(In USD thousands except for number of shares and per share data)</B> <B></B></P>
<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Three months ended <BR> Sep 30,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">(Unaudited)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">(Unaudited)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Net revenues</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="width: 72%; font: 10pt Times New Roman, Times, Serif; text-align: left">Integrated contract revenue</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">104,466</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">116,650</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Products sales</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,123</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,040</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Revenue from services</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">12,641</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">14,029</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total net revenues</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">123,230</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">138,719</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Cost of integrated contracts</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">70,500</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">80,748</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Cost of products sold</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,231</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,008</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Costs of services rendered</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,115</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,502</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Gross profit</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">46,384</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">51,461</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating expenses</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Selling</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,277</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,709</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">General and administrative</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,618</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,654</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Research and development</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,942</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,769</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">VAT refunds and government subsidies</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,520</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,547</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Total operating expenses</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">23,317</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">21,585</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; padding-bottom: 1pt"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">　</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">　</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Income from operations</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">23,067</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">29,876</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Other income, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,025</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">558</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Foreign exchange gain (loss)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">604</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(123</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Gains on disposal of investments in equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,763</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Share of net income of equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,541</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">98</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Interest income</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,029</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,099</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Interest expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(113</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(106</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Income before income taxes</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">35,916</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">33,402</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Income taxes expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">6,209</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,455</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Net income</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">29,707</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">27,947</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Net income attributable to non-controlling interests</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">46</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Net income attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">29,681</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">27,901</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Other comprehensive loss, net of tax of nil</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Translation adjustments</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(34,174</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(29,137</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Comprehensive loss</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(4,467</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(1,190</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Less: comprehensive (loss) income attributable to non-controlling interests</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(25</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">46</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Comprehensive loss attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">(4,442</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">(1,236</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif">Net income per ordinary share:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Basic</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Diluted</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Shares used in income per ordinary share computation:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Weighted average number of ordinary shares</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,470,611</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,448,111</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Weighted average number of diluted ordinary shares</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,483,884</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">61,263,566</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
</TABLE>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>HOLLYSYS AUTOMATION TECHNOLOGIES LTD.</B></FONT></P>
<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CONSOLIDATED BALANCE SHEETS</B></FONT></P>
<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>(In USD thousands except for number of shares and per share data)</B></FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </P>
<P STYLE="margin: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Sep 30,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">Jun 30,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">(Unaudited)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">(audited)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in">ASSETS</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Current assets</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 72%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Cash and cash equivalents</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">339,932</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 10pt Times New Roman, Times, Serif; text-align: right">332,509</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Time deposits with maturities over three months</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">136,200</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">145,139</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Restricted cash</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">30,288</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">22,260</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accounts receivable, net of allowance for doubtful accounts of $44,875 and $47,162 as of September 30, 2019 and June 30, 2019, respectively</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">245,696</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">282,594</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Costs and estimated earnings in excess of billings, net of allowance for doubtful accounts of $7,807 and $6,981 as of September 30, 2019 and June 30, 2019, respectively</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">192,201</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">197,955</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accounts receivable retention</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">11,660</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,468</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Other receivables, net of allowance for doubtful accounts of $4,840 and $4,879 as of September 30, 2019 and June 30, 2019, respectively</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">25,274</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27,109</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Advances to suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">22,825</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,901</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Amounts due from related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,832</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36,295</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.375in; text-indent: -0.125in">Inventories</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">46,319</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">42,983</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Prepaid expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">391</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">644</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Income tax recoverable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,832</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,621</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total current assets</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,082,450</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,109,478</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Non-current assets</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Restricted cash</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,485</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,618</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Non-current costs and estimated earnings in excess of billings</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,828</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accounts receivable retention</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,785</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,390</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Prepaid expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Property, plant and equipment, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">72,718</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">76,006</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Prepaid land leases</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">15,977</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">16,599</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Intangible assets, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,258</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,383</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Investments in equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">37,319</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">40,386</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Investments securities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,600</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,776</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.375in; text-indent: -0.125in">Goodwill</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36,298</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">37,054</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Deferred tax assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">9,313</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">13,725</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Non-current right-of-use assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,262</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total non-current assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">198,851</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">199,939</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total assets</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,281,301</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,309,417</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.125in; text-indent: -0.125in">LIABILITIES AND STOCKHOLDERS’ EQUITY</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Current liabilities</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Derivative financial liability</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">758</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Short-term bank loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,585</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,909</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Current portion of long-term loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">307</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20,310</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Dividends payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,672</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accounts payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">109,519</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">110,384</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Construction cost payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">86</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">94</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Deferred revenue</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">135,519</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">141,385</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accrued payroll and related expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">15,577</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">14,512</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Income tax payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,669</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,541</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Warranty liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,212</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">8,039</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Other tax payables</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1245</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">665</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accrued liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">28,139</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">35,507</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Amounts due to related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">3,714</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,395</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total current liabilities</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">319,244</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">341,499</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Non-current liabilities</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accrued liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,084</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,530</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Long-term loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">890</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">978</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Non-current accounts payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,473</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Deferred tax liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">13,251</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12,173</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Warranty liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,245</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,077</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Non-current lease liability</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,072</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total non-current liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,015</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20,758</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total liabilities</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">351,259</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">362,257</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Commitments and contingencies</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Stockholders’ equity:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.375in; text-indent: -0.125in">Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized; 60,342,099 shares issued and outstanding as of September 30, 2019 and June 30, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Additional paid-in capital</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">223,660</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">223,634</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Statutory reserves</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">48,698</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">48,698</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Retained earnings</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">725,521</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">708,515</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Accumulated other comprehensive income</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(69,645</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(35,521</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total Hollysys Automation Technologies Ltd. stockholder’s equity</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">928,294</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">945,386</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.375in; text-indent: -0.125in">Non-controlling interests</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,748</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,774</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total equity</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">930,042</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">947,160</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt; padding-left: 0.125in; text-indent: -0.125in"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 0.25in; text-indent: -0.125in">Total liabilities and equity</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,281,301</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,309,417</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
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<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>HOLLYSYS AUTOMATION TECHNOLOGIES LTD</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B></B> <B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B></B> <B>(In USD thousands)</B></P>
<P STYLE="margin: 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Three months ended</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Sep 30, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">(Unaudited)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Cash flows from operating activities:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="width: 86%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Net income</TD><TD STYLE="width: 1%; font-size: 10pt"> </TD>
<TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">29,707</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Adjustments to reconcile net income to net cash provided by operating activities:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Depreciation of property, plant and equipment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,417</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Amortization of prepaid land leases</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">99</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Amortization of intangible assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Allowance for doubtful accounts</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">716</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">loss on disposal of long-lived assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Share of net gain from equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,541</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Share-based compensation expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Deferred income tax expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,312</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Accretion of convertible bond</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">57</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Gains on disposal of investments in equity investees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(5,763</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Changes in operating assets and liabilities:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Accounts receivable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">17,090</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Costs and estimated earnings in excess of billings</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(6,081</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">Inventories</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,993</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Advances to suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(10,567</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Other receivables</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,004</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Deposits and other assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">239</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Due from related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,223</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Accounts payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">7,147</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Deferred revenue</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,679</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Accruals and other payables</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(5,720</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Due to related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,682</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Income tax payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,893</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other tax payables</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">614</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Net cash provided by operating activities</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">38,958</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Cash flows from investing activities:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Time deposits placed with banks</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(27,842</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Purchases of property, plant and equipment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(491</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Proceeds from disposal of property, plant and equipment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">58</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Maturity of time deposits</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">31,879</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Proceeds received for the disposal of an equity investment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,458</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Net cash provided by investing activities</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,062</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Cash flows from financing activities:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Proceeds from short-term bank loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,343</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Repayments of short-term bank loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,632</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Proceeds from long-term bank loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">41</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Repayments of long-term bank loans</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(103</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Repayments of bonds payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(19,995</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Net cash used in financing activities</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">(20,346</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Effect of foreign exchange rate changes</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(11,356</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt"><B>Net decrease increase in
cash, cash equivalents and restricted cash</B></TD><TD STYLE="font-size: 10pt"><B> </B></TD>
<TD STYLE="font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="font-size: 10pt; text-align: right"><B>15,318</B></TD><TD STYLE="font-size: 10pt; text-align: left"><B> </B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Cash, cash equivalents and restricted cash, beginning of period</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">358,387</TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Cash, cash equivalents and restricted cash, end of period</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">373,705</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
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<DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt"> </P></DIV>
<DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">Hollysys Automation Technologies Ltd<BR> November 14, 2019</TD><TD STYLE="width: 34%; text-align: center"> </TD><TD STYLE="width: 33%; text-align: right">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-GAAP Measures</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In evaluating our results, the non-GAAP
measures of “Non-GAAP cost of integrated contracts”, “Non-GAAP general and administrative expenses”, “Non-GAAP
net income attributable to Hollysys Automation Technologies Ltd. stockholders”, “Non-GAAP basic earnings per share”,
and “Non-GAAP diluted earnings per share” serve as additional indicators of our operating performance and not
as a replacement for other measures in accordance with U.S. GAAP. We believe these non-GAAP measures are useful to investors, as
they exclude the non-cash share-based compensation expenses, which is calculated based on the number of shares or options granted
and the fair value as of the grant date, amortization of acquired intangible assets, and fair value adjustments of a bifurcated
derivative. They will not result in any cash inflows or outflows. We believe that using non-GAAP measures help our shareholders
to have a better understanding of our operating results and growth prospects. In addition, given the business nature of the Company,
it has been a common practice for investors to use such non-GAAP measures to evaluate the Company.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides a reconciliation of the non-GAAP
measures with the most directly comparable U.S. GAAP measures for the periods indicated:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; white-space: nowrap">Three months ended</TD><TD STYLE="padding-bottom: 1pt; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Sep 30,</TD><TD STYLE="padding-bottom: 1pt; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">(Unaudited)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"> </TD>
<TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">(Unaudited)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"> </TD></TR>
<TR STYLE="vertical-align: bottom">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD COLSPAN="2" STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="width: 72%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Cost of integrated contracts</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">70,500</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">80,748</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Less: Amortization of acquired intangible assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">80</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Non-GAAP cost of integrated contracts</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">70,425</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">80,668</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">General and administrative expenses</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">10,618</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,654</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Less: Share-based compensation expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">84</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Non-GAAP general and administrative expenses</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">10,592</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">8,570</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Net income attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">29,681</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">27,901</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">Add:</TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 10pt">Share-based compensation expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">84</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 10pt">Amortization of acquired intangible assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">75</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">80</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Non-GAAP net income attributable to Hollysys Automation Technologies Ltd.</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">29,782</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">28,065</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font-size: 10pt"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt"> </TD>
<TD STYLE="font-size: 10pt; text-align: left"> </TD><TD STYLE="font-size: 10pt; text-align: right"> </TD><TD STYLE="font-size: 10pt; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">Weighted average number of basic ordinary shares</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,470,611</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,448,111</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">Weighted average number of diluted ordinary shares</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60,483,884</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">61,263,566</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif">Non-GAAP basic earnings per share</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"> </TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
<TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Non-GAAP diluted earnings per share</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0.49</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0.46</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"> </TD></TR>
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