Tunghsu Optoelectronic Technology Co. Ltd.The Semi-annual Report 2018
August 2018
I. Important Notice Table of Contents and Definitions
The Board of Directors Supervisory Committee all directors supervisors and senior executives of the Company
hereby guarantees that there are no misstatement misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity accuracy and completeness of the contents hereof.Mr. Wang Lipeng The Company leader Ms. Feng Qiuju Chief financial officer and the Mr. Gao Feipeng
the person in charge of the accounting department (the person in charge of the accounting) hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.
All the directors attended the board meeting for reviewing the semi-annual Report.
The development strategy operation plan and other forward-looking statements involved in this report will not
constitute any substantive commitment to the investors by the Company. Investors please be aware of the
investment risks.The company has already described the risk items existed in details in the report with reference to (IV) possible
risks of X Operation Conditions Discussion and Analysis.The Company has no plan of cash dividends carried out bonus issued and capitalizing of common reserves either.Table of Contents
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
Definition
Terms to be defined
Refers
to
Definition
Company Law
Refers
to
Company Law of the People’s Republic of China
Securities Law
Refers
to
Securities Law of the People’s Republic of China
CSRC
Refers
to
China Securities Regulatory Commission
SZSE
Refers
to
Shenzhen Stock Exchange
Tunghsu Group
Refers
to
Tunghsu Group Co. Ltd.
Baoshi Group
Refers
to
Shijiazhuang Baoshi Electronics Group Co. Ltd
Tunghsu Optoelectronic Company The
Company
Refers
to
Tunghsu Optoelectronic Technology Co. Ltd.Tunghsu（Yingkou）Optoelectronic
Refers
to
Tunghsu（Yingkou）Optoelectronic Display Co. Ltd.Xuhong Optoelectronic
Refers
to
Sichuan Xuhong Optoelectronic Technology Co. Ltd.Wuhu Optoelectronic
Refers
to
Wuhu Tunghsu Optoelectronic Technology Co. Ltd. was the
implementation unit of the non-public item to raise money for and invest
in of “The Project of Production Line for Panel Display Plate” in 2013
Wuhu Equipment
Refers
to
Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd.Tunghsu (Kunshan )
Refers
to
Tunghsu（Kunshan）Display material Co. Ltd.， In 2015 was theimplementation unit of the non-public item to raise money for and invest
in “Project of Production Line for the 5th-generation CF for TFT-LCD”.Tunghsu Construction
Refers
to
Tunghsu Construction Group Co. Ltd.
Fuzhou Xufu
Refers
to
Fuzhou Xufu Optoelectronic Technology Co. Ltd.， In 2016 was thenon-public item to raise money for and invest in “Project of ProductionLine for the 8.5th-generation CF for TFT-LCD”
Fuzhou Optoelectronic Refers Fuzhou Tunghsu Optoelectronic Technology Co. Ltd.， In 2016 was the
to non-public item to raise money for and invest in “Project of ProductionLine for the 8.5th-generation CF for TFT-LCD”
Tunghsu Finance Company
Refers
to
Tunghsu Group Finance Co. Ltd.Shanghai Tanyuan Huigu
Refers
to
Shanghai Tanyuan Huigu New Material Technology Co. Ltd.Xutan New Material
Refers
to
Beijing Xutan New Material Technology Co. Ltd.
Mingshuo Technology
Refers
to
Mingshuo (Beijing) Electronic Technology Co. Ltd
Tengda
Refers
to
Wujiang Tengda Packing Products Co. Ltd.SUNLONG
Refers
to
Shanghai Sunlong Bus Co. Ltd.，
2017 issue of shares and payment of cash to buy the assets of the enterpris
e
BOE
Refers
to
BOE Technology Group Co. Ltd.
CSOT
Refers
to
China Star optoelectronics Technology Co. Ltd.
Tianma
Refers
to
Tianma Microelectronics Co Ltd
TFT-LCD
Refers
to
Thin Film Transistor Liquid Crystal Display
LTPS
Refers
to
Low Temperature Poly-silicon
AMOLED
Refers
to
Active-matrix organic light emitting diode
Glass substrate
Refers
to
A thin glass sheet with extremely smooth surface is a basic component of
constituting LCD display device as well as one of the critical basic
materials in panel display industry. The glass sheet can be divided into
various generations by its size and the higher the generation is the bigger
the size will be.
G5 glass substrate
Refers
to
The size of the 5th-generation glass substrate is 1100 mm×1300 mm.
G6 glass substrate
Refers
to
The size of the 6th-generation glass substrate is 1500 mm×1850 mm.
G8.5 glass substrate
Refers
to
The size of the 8.5th-generation glass substrate is 2300 mm×2500 mm
Optical film Refers refers to the general name of optical diaphragms such as diffusion
to reflection prism composite prism etc. mainly used in TFT LCD
backlights.
CF
Refers
to
Critical original materials of LCD panel for realizing colorization display
Grapheme materials
Refers
to
Refers to two-dimensional carbon materials related to grapheme with a
layer less than 10 carbon atoms
Cover glass
Refers
to
In addition to mobile phones tablet PCs and other displays for the touch
screen touch module display and non-touch screen display to protect the
transparent glass lens
New Energy Bus
Refers
to
Adopting new power systems fully or mainly rely on new energy-driven
passenger bus including pure electric bus and fuel cell bus
II. Basic Information of the Company and Financial index
I. Company Information
Stock abbreviation Tunghsu Optoelectronic Tunghsu B Stock code 000413、200413Stock abbreviation after
change (if any)
Tunghsu Optoelectronic Tunghsu B
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 东旭光电科技股份有限公司
Chinese Abbreviation 东旭光电
English name (If any) Tunghsu Optoelectronic Technology Co.Ltd.
English abbreviation (If any) Tunghsu Optoelectronic
Legal Representative Wang Lipeng
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
Contact address
No.5 Court No.23 A Fuxing Road
Haidian District Beijing
No.5 Court No.23 A Fuxing Road
Haidian District Beijing
Tel 010-68297016 010-68297016
Fax 010-68297016 010-68297016
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
III. Other
1. Way of contact
Whether registrations address offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address offices address and codes as well as website and email of the Company has no change in
reporting period found more details in annual report 2017.
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses website and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2017.IV. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.√Yes □No
Reasons for retrospective restatements:
Business merger under the same control.
Reporting period
Same period of last year YoY+/-（%）
Before adjustment After adjustment After adjustment
Operating Gross income（Yuan） 11129851790.88 4641285527.91 4876438604.10 128.24%
Net profit attributable to the shareholders
of the listed company（Yuan）
858296089.08 635855750.37 637480381.47 34.64%
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders
of listed company（Yuan）
811345478.77 559990548.41 564088026.98 43.83%
Cash flow generated by business
operation net（Yuan）
83617287.66 -1414361686.97 -1364949813.78 106.13%
Basic earning per share(Yuan/Share) 0.15 0.13 0.13 15.38%
Diluted gains per
share(Yuan/Share)(Yuan/Share)
0.15 0.13 0.13 15.38%
Net asset earning ratio（%） 2.74% 2.84% 2.73% 0.01%
As at the end of the
reporting period
As at the end of last year YoY+/-（%）
Before adjustment After adjustment After adjustment
Gross assets（RMB） 66693831497.63 67683329226.91 68610779546.18 -2.79%
Shareholders’ equity attributable to
shareholders of the listed company（RMB）
31213233914.18 30922796455.46 30949718542.41 0.85%
V. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
VI. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
for which assets impairment provision is made)
-664826.45
Govemment subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business
and granted under the state’s policies)
44668918.09
Gain/loss on entrusting others with investment or asset
management
13923452.07 Investment financing income
Gain/loss from debt reorganization 484207.00
Net gain/loss of current term from consolidation of subsidiaries
under common control from beginning of term to the
consolidation date
-9555668.76
Business combination under the
same control. Retroactive
adjustment
Entrusted with the operating of the trust to obtain fee income 235849.06
Other non-operating income and expenditure beside for the above
items
2694248.35
Less: Influenced amount of income tax 6987734.04
Amount of influence of minority interests（After tax） -2152164.99
Total 46950610.31 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is a leading and comprehensive service provider of new materials high-end equipment
manufacturing and new-energy automobile manufacturing at home. It possesses the liquid crystal glass substrate
production capacity ranking first in China and fourth all over the world in the field of new materials represented
by photoelectric display material and at the same time lays out laterally other core ones such as curved cover glass
color filter and sapphire etc. which results in its prominence of photoelectric display material industry cluster
advantages; its graphene industrial application in initial development period is the extension and important
supplementation of new material business. In terms of the high-end equipment manufacturing field its
self-developed complete glass substrate manufacturing equipment has relatively strong technological spillover
effect has extended into several fields and becomes an important income and profit source thereof. For the new
energy automobile field based on Sunlong it has been advancing industrial development of new energy
passenger and logistics cars strongly has laid out several new energy automobile industry bases in China and has
been devoted to making the new energy automobile business into its new growth level.I. New material business system
1. Glass substrate original film business
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel with
extremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set of
liquid crystal glass substrate production equipment the company took the lead in breaking the international
monopoly and achieved the home-making of liquid crystal glass substrate. Currently the Company possesses five
production bases of liquid crystal glass substrate respectively located in Zhengzhou Shijiazhuang Wuhu Fuzhou
and Yingkou covering G5 G6 and G8.5 (compatible with 8.6 generation) TFT-LCD liquid crystal glass
substrates. The company has 20 liquid crystal glass substrate production lines with that the mass production
capacity tops first in China and ranks fourth in the world.The cover glass is used to protect the touch module and the display screen. The company has the original
production line of the advanced float glass substrate in Mianyang Sichuan and has the capacity of the first and
the world's third high-aluminum cover glass substrate. Performance the company is the only company in China
that masters both the overflow melting method and the floating method.
2. Other display materials business
In order to enhance the competitiveness and profitability of the display materials business the company
implements a horizontal extension strategy of the industry chain. Since 2015 it has successively laid out cover
glass original film curved-surfaced cover glass optical diaphragm color filters and sapphire to optimize its
business structure. Industrial clustering effects appear. The curved cover glass has the advantages of lightness
transparency anti-fingerprint anti-glare and good weather resistance. It can enhance the appearance of smart
terminal products and bring excellent touch feeling. The company's optical film covers diffusion reflection prism
Subdivisions such as composite prisms mainly used in TFT LCD backlights. The color filter is a key component
of the colorization of the liquid crystal display. The company's main product is the G5 color Filters; sapphire is
widely used in LED substrate materials and optical components and other fields the company's main products are
2-inch and 4-inch LED substrate products.
3. Industrial application of graphene material
The graphene has excellent characteristics of optics electricity heat and mechanics and important application
prospects in terms of materialogy and energy etc. and is deemed as a revolutionary new material. Leading the
graphene material industrial application the Company has already formed four series of grapheme material
industrial application products of grapheme battery graphene electrical heating graphene anticorrosive paint and
grapheme lighting among which partial ones have already realized batch production and been sold overseas.Several countries alongside One Belt and One Road become main markets for such graphene products. The
grapheme new material layout is a strategic input for long-term development in the future caters for new material
and new energy automobile development direction in the future and has large growth potential and market space.II. High-end equipment manufacturing business
Thanks to the company's independent research and development to break through the foreign blockade the
solid foundation laid by the high-tech front-end equipment in the production of glass substrates has been
established. Under the background of domestic industrial manufacturing replacing equipment by equipment and
satisfying intelligent and efficient production the company's high-end equipment and technical services Business
continues to work. The company's high-end equipment business currently mainly adopts an integrated mode. The
business mainly involves high-end equipment such as photoelectric display materials semiconductor cleaning
grinding testing cutting laminating automated logistics and corresponding technical services control systems
and special equipment. Supply of products with a large number of large group customers who have demand in the
intelligent field
III. New energy automobile business
The company has engaged in the high-end equipment manufacturing industry for almost 20 years and
possesses strong spillover capacity from technology to management and from capital to talent. Since it acquired
100% equities of Sunlong through share issuance and assets purchase through capital payment in 2017 based on
the listed company platform the Company has supported Sunlong from several aspects of technology
management market and resource etc. exerted industrial synergy with the same enriched its existing industrial
structure seized rapidly industrial opportunities of new energy passenger and logistics cars. In the first half of the
year the company sold a total of 2072 passenger cars a year-on-year increase of 17.53% including 1696 new
energy buses accounting for 82% of the total sales and sales of new energy buses increased by 33%. The new
energy vehicle business maintained a good growth momentum.IV. Other business system
1. Electrocommunication product business
To break the industrial dilemma of “chip and display panel lack” of China the Company through integrating
large quantities of customer resources and photoelectric display material sale channels endeavors to realize the
industrial integration and synergy of photoelectric display materials and relevant accessories. Simultaneously the
Company tries to expand import and export channels for liquid crystal display module and storage chip etc.
expand supply and marketing channels for Internet of Things equipment perfect gradually links of customs
clearance storage and logistics etc. and provide clients with integrated solutions based on their unique demands.
2. Construction & installation business
As a company's traditional business the construction & installation business has played an important role in
assisting the company's production base’s construction and maintenance thus effectively reducing the company's
various project construction costs. Meantime as a supplement to the main business and with the continuous
development of domestic industrialization and urbanization the construction & installation business has contributed
a certain amount of revenue and profits for the company in recent years.Ⅱ.Major Changes in Main Assets
. Major Changes in Main Assets
Main assets Major changes
Equity assets There were no major changes in this period compared to the previous period.
Fixed assets There were no major changes in this period compared to the previous period.
Intangible assets There were no major changes in this period compared to the previous period.
Construction in process The production line investment construction was formed.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In Annual Report 2017 the Company disclosed five core competitive forces namely “strong advantage inindependent research and development and innovation ability” “scale advantage of core photoelectric displaymaterial” “integration advantage of endogenous and epitaxial industrial chains” “synergistic advantages ofmutual dependence of business sectors” and “advantage in efficient management and decision-makingmechanism”. In the first half year of 2018 such core competitive force has been strengthened and deepened
further without any other significant change.IV. Performance Discussion and Analysis
Ⅰ.General
In 2018 Tunghsu will forge ahead. Under leadership of the company Board of Directors and management
layer and unremitting efforts of all staff the Company centering on established strategic layout of the company in
the first half year optimizes the industrial structure positively deepens the existing product market pattern and
promotes strongly development of core business including new materials high-end equipment manufacturing and
new energy automobile etc. to make each item of business increase stably and rapidly. During the reporting
period the Company achieves an operating income of RMB 11.13 billion an increase of 128.24% over the same
period in 2017; The net profit attributable to shareholders of listed companies net of non-recurring gains and
losses was RMB 811 million an increase of 43.83% over the first half of 2017.The company's each business development status in the first half of 2018:
1. Product upgrade and high-generation glass substrate production line performance contribution level
improvement
As the panel and glass substrate large size and high generation have become an industrial trend in recent years
the Company has liquid glass substrate products covering G5 G6 and G8.5 and is capable of providing each-type
high-quality glass substrate product for down-stream clients. Within the report period its two G8.5 glass substrate
production lines in Fuzhou were in good condition and received good production and sales achievements which
make its high-generation glass substrate product market share increased and glass substrate product structure
optimized. As the high-generation glass substrate placement and investment projects develop continuously in the
future and the company's technical accumulation in glass substrates for OLED display the Company will have an improved
core competitive force in such glass substrate field.
2. Curved cover glass layout and rapid formation of effective capacity
Within the report period the Company implemented “curved display cover glass production project” based
on Xuhong Optoelectronic and already formed the annual capacity of [5 million] pieces and supplied the same in
batch to clients. The curved cover glass with flexible thin transparent and clean anti-fingerprint anti-dazzle and
good weather-resistance etc. characteristics is applicable to the flexible display area as a strong measure adopted
by the Company to follow OLED flexile display screen trend. At the same time after the high aluminum cover
glass substrate Sheet Production Line of Xuhong Optoelectronic was included into the Company’s new material
industrial system officially in October 2017 such product has set all-time new highs repeatedly through vigorous
expansion of end clients and production process and sale type structure optimization and becomes an effective
growth point for the Company’s new material business.
3.With synergistic development continue to advance the optical film color filter sapphire business
During the reporting period Tengda Optical Film Business and Jiangsu Jixing Sapphire Business achieved
rapid growth and the supporting supply of Tenda Optics and Jiangsu Jixing Optoelectronic Display Materials had
well enhanced the major customers’ adhesiveness of the Company. In December 2017 the Company completed the
first 5th generation color filter production line for TFT-LCD. During the reporting period the Company actively
promoted the work including the debugging of color filter production lines customer development and sample
certification. Currently the Company has obtained orders from customers such as Longteng Optoelectronics. The
Color filters has realized the bulk supply which is conducive to increase the added value of products of the
existing G5 liquid crystal glass substrates.. Obtaining big orders and new progress realization in grapheme material industrial application
Within the report period Tunghsu Carbon MS Technology and Tan Yuan Graphene subsidiaries of the
Company concluded Graphene Application Product Strategic Partnership Agreement on expansion and sale of
graphene electric heating products graphene street lamp products and graphene anticorrosive paint etc. with 15
downstream grapheme application enterprises whose price reaches 610 million yuan. The grapheme material
industrial application is getting better in the initial development period and will become an important supplement
to its new material business system. In addition the “lithium-ion secondary battery”(TanYuanG18650) project of
Tan Yuan Graphene was deemed as “a high-tech outcome transformation project in Shanghai” by Shanghai
High-tech Outcome Transformation Project Certification Office based on the macro-batch production technology
of high-quality and low-cost grapheme and was included into the 1
st
Shanghai High-tech outcome transformation
project in 2018.
5. High-end equipment business stable and continuous development
In recent years under the background of domestic industrial manufacturing adopting equipment replacing labor
for satisfying the intelligent and efficient production the Company's high-end equipment business has steadily
expanded and well developed gradually supplying optoelectronic display materials and equipment semiconductor
equipment and other general-purpose equipment to domestic high-end customers. During the reporting period the
Company closely focused on the investment boom of domestic panel production lines and semiconductor
production lines continued to sign equipment business orders with BOE CSOT Visionox and other group
customers in the intelligent application field and actively explored the high-end equipment market in the
semiconductor field. With the acceleration of investment in the domestic semiconductor production line the
semiconductor equipment business has a broad market space. The Company will strive to expand and develop the
high-end equipment market in the semiconductor field and make the high-end equipment business become another
rapid growth point thus providing new driving force for the steady development of the Company's high-end
equipment business.
6. Business upgrade and intelligent robot platform company acquisition
The intelligent manufacturing is the development direction of the Company high-end equipment business
industry upgrade. Within the report period the Company realized its high-end equipment manufacturing business
expansion into the intelligent platform robot field through acquisition of Shenzhen Sanbao Innovation Intelligence
Co. Ltd. Next it will combine its strong manufacturing industrialization basis integrate advanced intelligent
manufacturing technology optimize its existing complete-set intelligent scene application capacity improve its
competition in high-end equipment business field improve its whole business synergy and realize its high-end
equipment business industrial upgrade.
7. Expansion into a new city: new energy automobile industry basis location in Jiangsu
Within the report period to seize sufficiently development opportunities of national new energy automobile
industry and speed up the industrial layout in new energy automobile field the Company based on its technical
advantages in new energy automobile and local and investment environmental advantages of Suqian People’s
Government concluded the New Energy Automobile Project Investment Cooperation Agreement with such
government on construction of the production basis project with annual capacity of 5000 new-energy passenger
cars and 50000 new-energy logistics cars through investment of 3 billion yuan in Suqian city. Then the Company
completes the industrial layout of new energy automobile industrial base in East South West North China and
will become a new-energy automobile manufacturer of important influence across country after such bases
construction and putting into operation.
8. Step-by-step consolidation and synergic development of construction and installation business and
electrommunication business
Within the report period in terms of construction and installation business the Company obtained a series of
engineering business orders in fields of underground comprehensive pipeline corridor municipal infrastructure
sponge city and smart city etc. based on strong comprehensive strength and various flexible business modes
which contribute to the Company’s operation revenue and net profit increase correspondingly; the
electrommunication business as a supplement to its main business kept fast increase continuously and played a
positive role to increase its industrial synergy and expand its business scale.II.Main business analysis
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income 11129851790.88 4876438604.10 128.24%
Mainly due to business
growth.Operating cost 9021989897.09 3473962810.22 159.70%
Mainly due to the
increase in the
corresponding cost of
business growth
Sale expenses
93892692.42 42456252.57 121.15% Mainly due to the
increase in the cost of
freight etc.
Administrative expenses
389977702.76 229378673.33 70.01% Mainly due to the
increase in the cost of
housing water and
electricity etc.
Financial expenses 395227116.30 368191927.63 7.34%
Income tax expenses 282130776.24 191513884.53 47.32%
Mainly due to the growth
of business in the current
period.R & D Investment 125155597.43 62869570.14 99.07%
Mainly due to the
increase investment in
research and
development
Net cash generate by
operating activities
83617287.66 -1364949813.78 106.13%
Net cash generated by
investing activities
-1660557972.96 -1088549503.22 -52.55%
Net cash generated by -2092134104.87 -629365921.93 -232.42%
financing activities
Net increase in cash and
cash equivalents
-3671727390.78 -3074153558.61 -19.44%
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Breakdown of main business
In RMB
Operating
revenue
operating costs
Gross profit
rate(%)
Increase/decrease
of reverse in the
same period of
the previous
year(%)
Increase/decrease
of principal
business cost over
the same period
of previous year
(%)
Increase/decrease
of gross profit
rate over the
same period of
the previous year
(%)
Industry
Optoelectronic
display material
2162239379.37 1693307933.68 21.69% 83.71% 118.34% -12.42%
Equipment and
Technology
serves
3665532801.81 2886526928.27 21.25% 49.79% 93.31% -17.73%
Industrial
application of
graphene
22186020.97 9070660.39 59.12% 3911.09% 4162.41% -2.41%
New energy
vehicle
1022266461.81 819614476.46 19.82%
Construction
Installation
1555645862.34 1500887029.86 3.52% 164.78% 167.26% -0.89%
Electronic
communication
products
1571252619.47 1538031287.70 2.11% 139.47% 139.55% -0.03%
Products
Optoelectronic
display material
2162239379.37 1693307933.68 21.69% 83.71% 118.34% -12.42%
Equipment and
Technology
serves
3665532801.81 2886526928.27 21.25% 49.79% 93.31% -17.73%
Industrial
application of
graphene
22186020.97 9070660.39 59.12% 3911.09% 4162.41% -2.41%
New energy 1022266461.81 819614476.46 19.82%
vehicle
Construction
Installation
1555645862.34 1500887029.86 3.52% 164.78% 167.26% -0.89%
Electronic
communication
products
1571252619.47 1538031287.70 2.11% 139.47% 139.55% -0.03%
Area
China 8842543603.09 7343203923.92 16.96% 96.95% 136.13% -13.78%
HongkongMacau
and Taiwan
1091131396.31 1058509705.07 2.99% 188.36% 191.85% -1.16%
Overseas 65448146.37 45724687.36 30.14% 67938.20% 106337.97% -25.20%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Amount
Proportion in total
profit
Explanation of cause Sustainable (yes or no)
Other income 108362056.52 9.21% Government subsidy Yes
IV. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year
Change in
percentage
(%)
Reason for significant
change Amount
As a percentage
of total
assets(%)
Monetary fund 23794597055.80 35.68% 27456759768.86 40.02% -4.34%
Accounts
receivable
9937647168.77 14.90% 7873419684.42 11.48% 3.42%
Inventories 4210883497.85 6.31% 4914482277.21 7.16% -0.85%
Real estate
Investment
66930130.01 0.10% 58229439.86 0.08% 0.02%
Long-term equity
investment
2142476783.38 3.21% 2130640158.90 3.11% 0.10%
Fixed assets 10938598162.98 16.40% 11378564235.15 16.58% -0.18%
Construction in 5387496213.47 8.08% 3663486639.90 5.34% 2.74%
process
Short-term loans 6812784698.87 10.22% 5712826382.20 8.33% 1.89%
Long-term loans 3823532289.32 5.73% 5209726250.77 7.59% -1.86%
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Restrictions on asset rights at the end of the reporting period are as follows:
1. The total amount of restricted Cash and bank balances at the end of the reporting period was RMB
2351663690.33Mainly for fixed deposits deposits and so on.
2. RMB10433568773.5 at the end of the period. Fixed assets were used as collateral and financial lease objects.
3. At the end of the period the intangible assets of RMB 350282096.92 were borrowed as collateral.
4. At the end of the period RMB 1210207009.84 was pledged for construction in progress as collateral.
5. At the end of the period RMB 66930130.01 was pledged for Real estate investment as collateral.
Ⅴ.Investment situation
1．External investment
√ Applicable □Not applicable
Investments made in the reporting period
Investments made in same period of last
year
+/- %
3148450556.06 6175411729.77 -49.02%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □ Not applicable
In RMB
Name
of the
Compa
ny
Investe
d
Main
Busines
s
Invest
ment
Way
Invest
ment
Amoun
t
Share
Proport
ion %
Capital
Source
Partner
Invest
ment
Horizo
n
Product
Type
Progre
ss up
to
Balanc
e Sheet
Date
Antici
pated
Incom
e
Gain or
Less or
the
Current
Investm
ent
Whether
to
Involve
in
Lawsuit
Date of
Disclosu
re(Note
5)
Disclos
ure
Index
Tunghs
u
（Yingkou）
Optoele
ctronic
Display
Glass
subst
rates
Purcha
se
19500
0000.0
0
65.00% Self No
Long-t
erm
Glass
substrat
es
Compl
eted
0.00
-95556
68.76
No
June
132018
http://w
ww.cnin
fo.com.cn
Co.
Ltd.Shenzh
en
Sanbao
Chuang
xin
Intellig
ent Co.Ltd.High-en
d
intellige
nt
equipm
ent
Purcha
se
15775
0000.0
0
67.00% Self No
Long-t
erm
High-e
nd
intellig
ent
equipm
ent
Compl
eted
0.00
-11019
97.15
No
May
292018
http://w
ww.cnin
fo.com.cn
Shangh
ai
Sunlon
g Bus
Co.Ltd.，New
energy
vehicle
Increas
e
Capital
14000
00000.
00
100.00
%
Raising
Funds
No
Long-t
erm
New
energy
vehicle
Compl
eted
0.00
109136
890.07
No
http://w
ww.cnin
fo.com.cn
Sichuan
Xuhong
Optoele
ctronic
Technol
ogy
Co.
Ltd.Glass
cover
Increas
e
Capital
80000
0000.0
0
100.00
%
Raising
Funds
No
Long-t
erm
Glass
cover
Compl
eted
0.00
446183
29.52
No
http://w
ww.cnin
fo.com.cn
Total -- --
25527
50000.
00
-- -- -- -- -- -- 0.00
143097
553.68
-- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
Nil
（2）Investment in Derivatives
□ Applicable √ Not applicable
Nil
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
√ Applicable □ Not applicable
Counter
party
Sold
equities
Sold
date
Transact
ion
price(Te
n
thousan
d yuan)
Net
profits
contribu
ted by
the
equities
to the
listed
compani
es from
the
period-b
egin to
the sold
date
(Ten
thousan
d yuan)
Influenc
e of the
selling
of the
Compan
y
Proporti
on on of
the net
profits
of the
contribu
ted
amount
of the
equities
selling
to the
listed
compani
es to the
total
amo9un
t of the
net
profits
Pricing
principl
es of the
equities
selling
Whether
was the
related
transacti
on
Relation
ship
with the
center
party
Whether
the
involve
d
equities
all
complet
e ed the
ownersh
ip
transfer
Whether
execute
as
schedul
ed and
if failed
should
state the
reasons
and the
adopted
measure
ments of
the
compan
y
Disclos
ure date
Disclos
ure
Index
Tunghsu
Techno
logy
Group
Co.
Ltd.Xuyou
Electron
ic
Material
s
Technol
ogy
(Wuxi)
Co.
Ltd.
April
282018
55000 205.36 No -0.24%
Based
on
audited
net
assets
Yes
Same
parent
compan
y
Yes Yes
April
142018
http://w
ww.cnin
fo.com.cn
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company
Name
Company type
Sectors
engaged in
Registered
capital
Total assets Net assets Turnover
Operating
profit
Net Profit
Shijiazhuang
Xuxin
Optoelectro
nic
Technology
Co. Ltd.
Subsidiary
Optoelectron
ic Display
material
190600000
0.00
361432796
4.30
218534457
3.32
257758187.
11
50116654
.12
42667836.04
Sichuan
Xuhong
Optoelectroni
c Technology
Co. Ltd.
Subsidiary
Optoelectron
ic Display
material
190000000
0.00
393311697
5.62
206726881
2.55
211280233.
31
52984015
.91
44618329.52
Shanghai
Sunlong Bus
Co. Ltd.
Subsidiary
New Energy
Bus
250000000
0.00
735225047
4.71
284888683
1.19
851962505.
15
48645039
.46
38466842.93
Guangxi
Sunlong
Automobile
Manufacturin
g Co. Ltd.
Subsidiary
New Energy
Bus
231111111
2.00
283542511
1.60
178556478
9.07
277893932.
92
78784420
.10
71723089.43
Wuhu
Tunghsu
Optoelectroni
c
Equipment
Technology
Co.Ltd.
Subsidiary
Equipment
and
technology
Service
100000000
0.00
127454780
55.37
295225479
0.26
144881143
5.46
59627006
7.22
510256680.37
Beijing
Xufeng Real
estate Co.Ltd.Subsidiary
Building and
construction
Industry
870000000.
00
220433831
2.81
783972669.
58
109417384
9.22
40828297
3.44
311897319.71
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
Name Mode Influence
Shenzhen Sanbao Chuangxin Intelligent M & A Increase business
Co. Ltd.
Tunghsu（Yingkou）Optoelectronic Display
Co. Ltd.
M & A Increase business
Xuyou Electronic Materials Technology
(Wuxi) Co. Ltd.
Disposition
Based on overall strategic layout planning
considerations
Notes
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable√ Not applicable
X. Risks facing the Company and countermeasures
1. Risk of macroeconomic cyclical fluctuations
The optoelectronic display materials business centered on glass substrate relies on the LCD panel industry
which is a cyclical industry and a downstream industry to the company. As the prosperity of the panel industry is
affected by the macroeconomic fluctuations then if the panel price fluctuates sharply due to the deterioration of
the macroeconomic environment or the imbalance between the supply and the demand the company may face the
risk of industry downturn.Improvement actions: The Company through development for many years has developed into an advanced
comprehensive service provider for new materials high-end equipment manufacturing and new-energy
automobile manufacturing at home from the single manufacturer for liquid crystal glass substrate equipment and
liquid crystal glass substrate; at the same time it will through close tracking of latest news on macro economy
industrial policies and industrial development seize the investment and expansion pace and adjust the
development strategies timely to guarantee its operation efficiency and effects and deal with macro economy
periodic fluctuation effectively.
2. Risk of technological upgrading alternatives
The company never stops the technical research and development and technology reserves and has made
breakthroughs in many areas. However if the downstream panel display industry undergoes major technological
changes and the company fails to achieve timely corresponding technological innovation then the company will
face certain risks when the technological upgrading alternatives hit the market.Improvement actions: The Company has very strong technical strength and is the only one at home with two
glass substrate manufacturing processes including overflow fusion method and float glass at the same time amongwhich TFT-LCD glass substrate complete equipment production line is deemed as “a national strategicinnovative product” and the glass liquid processing method in platinum channels obtains “Chinese gold medal forpatent”. To deal with risk of technology replacement the Company will based on successful industrialization
experience obtained continue strengthening R&D capital investment strengthen R&D cooperation with
institutions of higher learning and research institutes and improve the R&D strength in ultrathin large-size and
LTPS glass and OLED new-type display technology glass etc.
3. The risk caused by the continued fade-out of subsidy policies for new energy vehicles
As the new energy auto companies have a certain dependence on government subsidies at this stage the
decline in the subsidy standards will have a certain impact on the future sales of new energy auto products of
Sunlong Bus. Although the company has in detail measured the feasibility of the company's implementation of the
related business plan after the full fade-out of the subsidy if there are major adverse changes in the relevant
industrial policies in the future Sunlong Bus will face the risk of that its operating performance will fall short of
expectations.Improvement actions: As parts (including power battery) and vehicle manufacturing technical level and
production process improve constantly the infrastructure including charging piles/stations etc. realizes
large-scale coverage pure electric passenger car endurance mileage and other items of performance improve
gradually the up-stream suppliers release the capacity continuously the production cost and sale unit price
decrease the new energy automobile popularization brings about pure electric passenger car acceptance
improvement on a continuous basis of end clients and the environmental pollution results in the public emphasis
improvement on clean energy it’s predicted that the pure electric passenger car production cost of Sunlong will
decrease gradually which will offset adverse influence from subsidy policy decline and will drive the demand
growth and sale of Sunlong new-energy passenger cars in the future.V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Meeting Type
Investor
participation ratio
Convened date Disclosure date
Index to disclosed
information
The First provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General meeting
21.88% January 262018 January 272018
Announcement No.
www.cninfo.com.cn
The Second
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General meeting
21.95% March 262018 March 272018
Announcement No.
www.cninfo.com.cn
The Third
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General meeting
21.96% April 252018 April 262018
Announcement No.
www.cninfo.com.cn
2017 Shareholders’
general meeting
Annual
Shareholders’
General Meeting
22.66% May 102018 May 112018
Announcement No.
www.cninfo.com.cn
The Fourth
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General meeting
22.73% June 282018 June 292018
Announcement No.
www.cninfo.com.cn
The Fifth provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General meeting
21.99% July 302018 July 312018
Announcement No.
www.cninfo.com.cn
The Sixth
provisional
shareholders’
General meeting in
Provisional
shareholders’
General meeting
27.68% Aug 202018 Aug 212018
Announcement No.
www.cninfo.com.cn
2018
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company shareholder actual controller acquirer director supervisor
senior management personnel and other related parities.
√ Applicable □ Not applicable
Commitment
Commitment
maker
Type Contents
Time of
making
commitment
Period of
commitment
Fulfillment
Commitment on share reform
Commitment in the acquisition report
or the report on equity changes
Commitment made upon the assets
replacement
Commitments made upon issuance
Tunghsu
Group
Commitments
on horizontal
competition
related
transaction
and capital
occupation
Before June
30 2018 the
entire equity
of Tunghsu
Yingkou
which is held
by Tunghsu
Group and is
entrusted to
the company's
management
will be
injected into
Tunghsu
Optoelectroni
c through cash
purchase and
add-directiona
l share
December
142017
Valid for
June302018-
Fulfilled
issuance.
During the
above-mentio
ned period if
external
factors such as
the decline in
the overall
prosperity of
the industry
changes in
regulatory
requirements
and other
external
factors lead to
Tunghsu
Yingkou
equity not
meeting the
conditions for
asset
injection the
actual
controllers Li
Zhaoting and
Tunghsu
Group will
actively
consult with
relevant
parties and
continue to
entrust the
equity and
operating right
of the
above-said
company to
Tunghsu
Optoelectroni
c.
Equity incentive commitment
Other commitments made to minority
shareholders
Tunghsu
Group
Share
holdings
commitment
The
controlling
shareholder of
the company
Tunghsu
Group has
announced its
plan of
increasing its
holding of
shares not less
than 1% and
not exceeding
3% of the
company’s
current total
share capital
via buying
through the
Shenzhen
Stock
Exchange
trading system
(i.e. the
secondary
market) with
not less than
RMB 500
million and
not exceeding
RMB1.5
billion in the
next six
months since
the date of the
announcement
(February 2
2018).
Tunghsu
Group
promised not
to reduce the
holdings of
the company's
February
22018
Valid for
August 22018
Fulfilled
shares during
the
implementatio
n period of
this plan of
increasing
share-holding
and during the
statutory
period.
Executed timely or not? Yes
If the commitment has not been
implemented at the end of the
reporting period it is necessary to
explain the specific reason of failure
in implementation and the future
work plan.Not applicable
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Legal matters
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans employee stock ownership plans or other incentive measures for employees
√ Applicable □Not applicable
1. The scale of Phase 1 for Employee Stock Ownership Plan of Tunghsu Optoelectronic was RMB 495.4 million
subscribing 72639296 of non-publicly issued shares of 2015 with full amount through No.2 Changjiang Xingli
Oriented Plan where the above shares were listed in SSE on December 17 2015 which was with 36-month
locking period.
2.The company’s second ESOP via Zhonghai Trust-Tunghsu Optoelectronic ESOP Collective Funds Trust Plan
in the secondary market bought 52555280 shares of the company by centralized bidding and/or bulk trading with
transaction amount of RMB 496410000 and the average transaction price of about 9. 45 yuan per share. The
buying has been completed as of December 28th 2017 and the ownership has been transferred into the name of the
Collective Funds Trust Plan with a lock-in period of 12 months.
The employee stock ownership plan is still locked during the report period.XII.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Related
parties
Relation
ship
Type of
trade
Subjects
of the
related
transacti
ons
Principl
e of
pricing
the
related
transacti
ons
Price of
trade
Amount
of trade
(ten
thousan
d)
Ratio in
similar
trades
Trading
limit
approve
d(ten
thousan
d)
Whether
over the
approve
d
limited
or not
(Y/N)
Way of
payment
Market
price of
similar
trade
availabl
e
Date of
disclosu
re
Index
of
inform
ation
disclos
ure
Guangd
ong
Huakai
Real
Controll
ed by
the same
actual
Selling
goods
and
providin
Constru
ction
Enginee
ring
Referen
ce price
setting
1994.53 1994.53 20000 No
Currenc
y
1994.53
April
202018
Estate
Develop
ment
Co.
Ltd.controll
er
g
services
Huidong
Baoan
Hongji
Real
Estate
Develo
pment
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
4661.40 4661.4 20000 No
Currenc
y
4661.40
April
202018
Huidong
Baoan
Jinan
Real
Estate
Develo
pment
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
4643.51 4643.51 20000 No
Currenc
y
4643.51
April
202018
Kunmin
g
Tunghsu
Qiming
Investm
ent
Develop
ment
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
14070.7
9
14070.7
9
35000 No
Currenc
y
14070.7
9
April
202018
Shengzh
ou
Zhexu
Real
Estate
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
3516.81 3516.81 20000 No
Currenc
y
3516.81
April
202018
Yixian
Xuhua
Park
Controll
ed by
the same
Selling
goods
and
Constru
ction
Enginee
Referen
ce price
setting
3961.61 3961.61 15000 No
Currenc
y
3961.61
April
202018
Constru
ction
Develop
ment
Co.
Ltd.actual
controll
er
providin
g
services
ring
Yingxhu
an
Fengxia
ng
Street
Compre
hensive
Constru
ction
Manage
ment
Co. Ltd
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
4527.32 4527.32 11000 No
Currenc
y
4527.32
April
202018
Zhangzh
ou
Shenghu
a Real
Estate
Develop
ment
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
2241.39 2241.39 20000 No
Currenc
y
2241.39
April
202018
Chongqi
ng
Tunghsu
Real
Estate
Co.
Ltd.
Controll
ed by
the same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
1834.88 1834.88 5500 No
Currenc
y
1834.88
April
202018
Total -- --
41452.2
4
--
166500.
00
-- -- -- -- --
Details of any sales return of a large
amount
Nil
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine
related-party transactions by type to
Nil
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the
market reference price (if applicable)
Nil
2. Related-party transactions arising from asset acquisition or sold
√ Applicable □Not applicable
Related
parties
Relations
hip
Type of
trade
Subjects
of the
related
transacti
ons
Principle
of
pricing
the
related
transacti
ons
Book
value of
assets
transferr
ed（Tenthousand
）
Valuation of
transferredassets（Tenthousand）（If any）
Transferprice（Tenthousand）
Way of
payment
Transacti
on gain orloss（Tenthousand）
Date of
disclosure
Index of
informati
on
disclosure
Tunghsu
Technol
ogy
Group
Co.
Ltd.Same
control
Equity
transfer
Disposal
of
subsidiar
ies
Based on
audited
net assets
108394.
56
0 55000
Monetary
funds
-205.36
April
142018
http://ww
w.cninfo.com.cn
Reasons for the difference between the
transfer price and the book value or
valuation value（If any）
Nil
Impact on the company's operating
results and financial status
Nil
If the relevant transaction involves
performance agreement the
performance of the report during the
reporting period
Nil
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.. Other significant related-party transactions
√□Applicable √ Not applicable
Nil
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement on the participation of
wholly-owned subsidiaries in the PPP
project private equity investment fund and
related party transactions
January 272018（http://www.cninfo.com.cn）
(Announcement No/:2018-013)
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.XIV. Significant contracts and execution
1.Entrustments contracting and leasing
（1）Entrustment
√ Applicable □Not applicable
Description of custodies
During the reporting period the Company continued entrusted with the management of Tunghsu( Yingkou)
Optoelectronic Display Co. Ltd.
In December 2011 Tunghsu Group signed the Equity Trusteeship Agreement with the Company of which
60% share rights of Tunghsu (Yingkou) Optoelectronic Display Co. Ltd. were entrusted by the Company where
the agreement went into effect as of March 2012. The clients paid the Company 500 thousand RMB of
management fee per year for each subject.Name of Clients/Contractee
Name of
Trustee/Contra
ctee
Type of
Entrusting
Asset/Contract
ing Asset
Starting Date
of Entrusting
/Contracting
Expiration
Date of
Entrusting
/Contractin
g
Confirmed
Entrusting
/Contracting Fee
at the Current
Period
Tunghsu Group Yingkou Coastal
Development Construction Co.
Ltd. Minmetals (Yingkou)
Industrial Park Development Co.Ltd.Tunghsu
Optoelectronic
Technology
Co. Ltd.
Tunghsu(Ying
kou)
Optoelectronic
Display Co.
Ltd.January 2012 Notes 1 250000.00
Total 250000.00
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The
operation trustee fee is basic management fee and incentive management fee of which the basic management fee
is RMB 1 million/year the incentive management fee is counted by 5% of the after-tax net profit yearly achieved
by the trustee company
Note 2:On April 20 2016 Tunghsu (Yingkou) Optoelectronic Display Co.Ltd upon the approval by general
shareholders’ meeting amended the Article of Association thus the stake of Tunghsu (Yingkou) Optoelectronic
Display Co.Ltd held by Tunghsu Group was changed to 65% from 60%.
Note 3:On June 30 2018 Tunghsu Group Co. Ltd. transferred all 65% of the shares in Tunghsu (Yingkou)
Optoelectronic Display Co. Ltd. to Tunghsu Optoelectronic Technology Co. Ltd.Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant guarantees
√ Applicable □Not applicable
（1）Guarantees
Ten thousand
External Guarantee (Exclude controlled subsidiaries)
Name of the
Company
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount of
Guarantee
Date of
happening
(Date of
signing
agreement)
Actual
mount of
guarantee
Guarantee type Guarantee term
Complete
implementa
tion
or not
Guarantee
for
associated
parties
(Yes or no)
Guarantee of the Company for the controlling subsidiaries
Name of the
Company
Relevant
disclosure
Amount
of
Date of
happening
Actual
mount of
Guarantee
type
Guarantee
term
Complete
implemen
tation
Guarante
e
for
guaranteed date/No. of
the
guaranteed
amount
guarantee (Date o
signing
agreement)
guarantee or
not
associate
d
parties
(Yes or
no)
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co.Ltd.June
202013
150000
September
252014
37000
The joint
liability
guaranty
Two years
from te date
of advance of
te loan due
date
No No
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co.Ltd.July 12016 9500
September
72017
9500
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.June
192013
132000
November
122013
83125
The joint
liability
guaranty
8 years No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.September
272013
20000 April 82014 20000
The joint
liability
guaranty
8 years No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.September
272013
20000 May 62014 20000
The joint
liability
guaranty
8 years No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.September
272013
10000
December
132013
8125
The joint
liability
guaranty
8 years No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.October
312016
52300
November
252016
52300
The joint
liability
guaranty
6 years No No
Fuzhou Tunghsu
Optoelectronic
Technology Co.Ltd.July
292016
10000 August 162016 10000
The joint
liability
guaranty
2 years No No
Wuhu Tunghsu
Optoelectronic
June
152018
15000 June 292018 15000
The joint
liability
7 months No No
Equipment
Technology Co.Ltd.guaranty
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.
December
252017
6000 March 12018 6000
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
March
262018
10000 March 272018 10000
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
March
262018
10000 March 282018 10000
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
April
132018
5000 April 242018 5000
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
December
252017
10500 May 312018 10500
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
December
252017
5000 June 112018 5000
The joint
liability
guaranty
1 year No No
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd
June
152018
15000 June 262018 15000
The joint
liability
guaranty
7 months No No
Zhengzhou Xufei
Optoelectronic
Technology Co.Ltd.June
122018
5000 June 292018 5000
The joint
liability
guaranty
1 year No No
Sichuan Xuhong
Optoelectronic
Technology Co.Ltd.January
102018
4000 February 92018 4000
The joint
liability
guaranty
1 year No No
Sichuan Xuhong
Optoelectronic
January
102018
4000
February
122018
4000
The joint
liability
1 year No No
Technology Co.Ltd.guaranty
Suzhou Tengda
Optical
Technology Co.Ltd.June
122018
2000 June 282018 2000
The joint
liability
guaranty
1 year No No
Shanghai Sunlong
Bus Co. Ltd.
March
262018
5000 March 302018 5000
The joint
liability
guaranty
1 year No No
Shanghai Sunlong
Bus Co. Ltd.
March
262018
3000 April 22018 3000
The joint
liability
guaranty
1 year No No
Shanghai Sunlong
Bus Co. Ltd.
March
262018
7000 March 272018 7000
The joint
liability
guaranty
1 year No No
Guangxi Sunlong
Automobile
Manufacturing
Co. Ltd.
December
282017
10000 January 122018 10000
The joint
liability
guaranty
1 year No No
Tunghsu（Kunshan）
Display Material
Co. Ltd.
May
102018
20000 May 142018 20000
The joint
liability
guaranty
From the
effective date
of the
Guarantee
Contract to
the date of
expiration of
the
performance
period of the
Finance
Lease
Contract (if
the date of
expiration of
the two
financial
lease
contracts is
inconsistent
the latter
shall be
subject to the
No No
latter);
Total of guarantee for
subsidiaries
approved in the Period (B1)
125950
Total of actual guarantee
for subsidiaries in the
Period (B2)
136500
Total of guarantee for
subsidiaries
approved at Period-end (B3)
540300
Total of actual guarantee
for subsidiaries at
Period-end (B4)
376550
Guarantee of the subsidiaries for the controlling subsidiaries
Name of the
Company
guaranteed
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount
of
guarantee
Date of
happening
(Date o
signing
agreement)
Actual
mount of
guarantee
Guarantee
type
Guarantee
term
Complete
implemen
tation
or
not
Guarante
e
for
associate
d
parties
(Yes or
no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period
（A1+B1+C1）
125950
Total of actual guarantee in
the Period（A2+B2+C2）
136500
Total of guarantee at Period-end
（A3+B3+C3）
540300
Total of actual guarantee at
Period-end
（A4+B4+C4）
376550
The proportion of the total amount of actually guarantee in the
net assets of the company(A4+B4+C4)
12.06%
Including ：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly（E）
63500
Description of the guarantee with complex method
（2）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other significant contracts
□Applicable √ Not applicable
No such cases in the reporting period.XV. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Company or
subsidiary
name
Main
pollutant
and specific
pollutant
name
Emission
way
Emission
port number
Emission
port
distribution
condition
Emission
concentratio
n
(mg/Nm3)
Implemente
d pollutant
emission
standards
Total
emission
Verified
total
emission(To
ns)
Excessive
emission
condition
Fuzhou
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
COD
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
25mg/L
Integrated
wastewater
discharge
standard
GB8978-19
97
3.19T/ year
117.1T/
year
Not
exceeded
Fuzhou
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
Ammonia
nitrogen
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
1 6.8m/L
Sewage
discharge
into urban
sewer water
quality
standard
CJ-343-201
0
0.87T/ year 15.6T/ year
Not
exceeded
Sichuan
Xuhong
Optoelectr
onic
Technolog
y Co. Ltd.
Nitrogen
Oxide
After being
processed
by the SCR
system it is
discharged
into the
atmosphere
through the
chimney.
1
60m high
chimney in
the
northwest
corner of
the plant
530mg/m3
Emission
Standard for
Air
Pollutants
in
Electronic
Glass
Industry
GB29495-2
013
83.55T/
year
87.26T/
year
Not
exceeded
Sichuan
Xuhong
Optoelectro
nic
Technology
Co. Ltd.
SO2
After being
processed
by the SCR
system it is
discharged
into the
1
60m high
chimney in
the
northwest
corner of
the plant
3.52mg/m3
Emission
Standard for
Air
Pollutants
in
Electronic
0.48T/ year 8.49T/year
Not
exceeded
atmosphere
through the
chimney.Glass
Industry
GB29495-2
013
Shanghai
Sunlong
Bus Co.
Ltd.
COD
After the
treatment
reaches the
standard
enter the
urban
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
182.25mg/L
Sewage
discharge
into urban
sewer water
quality
standard
DB31/445-2
009
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.TN
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
12.1125mg/
L
Sewage
discharge
into urban
sewer water
quality
standard
DB31/445-2
009
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.SS
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
80 mg/L
Sewage
discharge
into urban
sewer water
quality
standard
DB31/445-2
009
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.Petroleum
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
1.5975
mg/L
Sewage
discharge
into urban
sewer water
quality
standard
DB31/445-2
009
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.TP
After the
treatment
reaches the
standard
enter the
urban
sewage pipe
1
Total
discharge of
wastewater
in the
southeast
corner of
the plant
3.0267
mg/L
Sewage
discharge
into urban
sewer water
quality
standard
DB31/445-2
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.
VOCs
High-altitud
e emissions
after
treatment
has reached
the standard
4
Factory
west
16.20mg/m3
"Automotiv
e
Manufacturi
ng
(Painting)
Air
Pollutant
Emission
Standards"
DB32/859-2
014
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.
SO2
High-altitud
e emissions
after
treatment
has reached
the standard
10
West part of
the middle
of Factory
7.6 mg/m3 "Emission
Standards
for Air
Pollutants
in Industrial
Furnaces"
DB31/860-2
014
0.00136 0.02
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.NO
High-altitud
e emissions
after
treatment
has reached
the standard
10
West part of
the middle
of Factory
7.5 mg/m3 "Emission
Standards
for Air
Pollutants
in Industrial
Furnaces"
DB31/860-2
014
0.636 0.84
Not
exceeded
Shanghai
Sunlong
Bus Co.
Ltd.PM
High-altitud
e emissions
after
treatment
has reached
the standard
18
South part
of the
middle of
Factory
3.79mg/m3 "Integrated
Emission
Standards
for Air
Pollutants"
DB31/933-2
015
0.881 1.04
Not
exceeded
1. Fuzhou Tunghsu optoelectronic operates normally during the whole year and produces main pollution of waste
water. In 2017 it built the rain and sewage diversion system and waste water treatment station with designed
treatment capacity of 1000t/d which adopts PH adjustment + secondary concrete sedimentation treatment process.
All production waste water will be collected after treatment and meeting standards and discharged into Rongyuan
sewage treatment plant together with pre-treated sanitary sewage by septic tank for uniform treatment. The waste
water treatment station operates normally during the report period and discharges per standards.
2. Xuhong Optoelectronic operates normally during the whole year and produces main pollution of waste gas. In
5 it built SCR flue gas denitration system for discharge of smoke discharged outside kiln after treatment of
the same for which the continuous online monitoring system is installed. All production waste gas will be
discharged through 60m chimney after treatment and meeting standards. SCR system operates normally during
the report period and discharges per standards.
3. Sunlong Bus operates normally during the whole year and produces main pollution of waste water waste gas
and hazardous waste. In 2008 for treatment of coating waste water during production it built the rain and sewage
diversion system and industrial waste water treatment station with designed treatment capacity of 10t/h which
adopts physical + biochemical treatment process. All production waste water will be collected after treatment and
meeting standards and discharged into urban sewage pipeline (in Yuanshan Road) together with sanitary sewage
and into Bailong Port system finally. The waste water treatment station operates normally during the report period
and discharges per standards. Waste gas treatment: coating VOCs adopts emission after meeting standards
through treatment of zeolite roller+RTO combustion process low-concentration VOCs discharge bag is equipped
with online monitoring system (FID) for real-time monitoring of the emission value; for pollution including PM
and welding fume etc. the filter filter core drum is adopted for dust removal after which the gas will be emitted
in the upper air after meeting standards; any facility needing heating during production process adopts the natural
gas burner and the gas will be burned efficiently through ternary internal circulation process to reduce the energy
consumption and pollution emission.
1. Fuzhou Tunghsu optoelectronic implements strictly the environmental influence appraisal system and
“simultaneous design construction and use” system whose construction project conforms to laws and
regulations. For the project the environmental appraisal reply was obtained in September 2016 from Sichuan
Environmental Protection Department.
2. Xuhong Optoelectronic implements strictly the environmental influence appraisal system and “simultaneousdesign construction and use” system whose construction project conforms to laws and regulations. For the
project the environmental appraisal reply was obtained in November 2016 from Sichuan Environmental
Protection Department and environmental protection acceptance was already qualified.
3.Sunlong Bus implements strictly the environmental influence appraisal system and “simultaneous designconstruction and use” system whose construction project conforms to laws and regulations. In January 2009 the
completion acceptance reply for the project was received from Minhang District Environmental Protection Bureau
Shanghai (MHBGXY[2009] No. 041).
1. Fuzhou Tunghsu Optoelectronic entrusts one qualified third party with preparation of Emergency Program for
Environmental Emergencies of Fuzhou Tunghsu Photoelectricity Technology Co. Ltd. and organizes and
conducts training on such program regularly to improve the company’s capacity to deal with any environmental
pollution emergency practically.
2. Xuhong Optoelectronic entrusts one qualified third party with preparation of Emergency Program for
Environmental Emergencies of Sichuan Xuhong Optoelectronic Technology Co. Ltd. sets internally full-time
environmental-protection managers and equipment operators for implementation of each
environmental-protection job and organizes and conducts training on such program regularly to improve the
company’s capacity to deal with any environmental pollution emergency practically.
3.Sunlong Bus entrusts one qualified third party with preparation of Emergency Program for Environmental
Emergencies of Shanghai Sunlong Bus Co. Ltd.. sets internally full-time environmental-protection managers and
equipment operators for implementation of each environmental-protection job and organizes and conducts training
on such program regularly to improve the company’s capacity to deal with any environmental pollution
emergency practically.. Fuzhou Tunghsu Optoelectronic abides by national and local laws regulations and relevant provisions strictly
and entrust Fujian Tuopu Detection Technology Co. Ltd. to carry out monthly detection of wastewater and
quarterly detection of noise of Fuzhou Tunghsu Photoelectricity as required and log in to the self-monitoring
website in time every month to upload data information such as detection results.
2. Xuhong Optoelectronic abides by national and local laws regulations and relevant provisions strictly and
entrusts Sichuan Zhonghuan Environmental Testing Technology Co. Ltd. to carry out quarterly testing of the
company’s exhaust gas as required and Sichuan Jiente Environmental Protection Equipment Co. Ltd. to carry
out operation and maintenance of our company’s flue gas online monitoring equipment so as to ensure that the
company’s air pollution data are transmitted to the national environmental protection monitoring platform in real
time.
3. Sunlong Bus abides by national and local laws regulations and relevant provisions strictly and entrusts Ingel
Testing Technology Service (Shanghai) Co. Ltd. to carry out quarterly testing of waste water waste gas and noise
as required and regularly log in the environmental protection survey platform and the environmental statistics
business system to upload data such as testing results.Other environmental information that should be disclosed
Company
Name or
Subsidiary
Name
Name of
major
pollutants and
characteristic
pollutants
Disposal
Method
Storage Place Distruibution
of Producing
Carried
Standard
Annual
Output (tons)
Disposal
Quantity
Inentory
Quanity
Shanghai
Sunlong Bus
Co. Ltd.
Waste residue
waste thinner
Entrust a
qualified third
party for
disposal
Dangerous
waste
temporary
storage
Painting
workshop
assembly
shop
commissionin
g workshop
/ 35.18 13.66 18.52
Waste
adhesive
sealant
11.28 6.73 3.05
Waste empty
barrel
16.53 6.73 4.8
Notes：This table shows the hazardous wastes status of Sunlong Bus. It’s the amount of hazardous waste generated
in 2017. The annual amount of hazardous waste changes with the change of production capacity. The untreated
inventory is due to the limited annual disposal capacity of the hazardous waste and it will be disposed in the next
year if the treatment and dispose is not completed in the current year.Other environmental protection related information
Notes：
1. The Shanghai Municipal Pollutant Discharge Permit obtained by Sunlong Bus does not state the request of the
total amount of wastewater discharged and the total amount of normative emissions. The emission concentration
in the table is the average value of the quarterly test data.
2. The Shanghai Municipal Pollutant Discharge Permit does not state the requirement of the total amount of
volatile organic compounds emitted in the exhaust gas and the total normative amount of emissions. The total
amount of SO2 and NOX emissions of Sunlong Bus is calculated based on the total amount of natural gas used and
the combustion emissions coefficient.
2.Overview of the annual targeted poverty alleviation
(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On February 2 2018 Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to Fuping
County Hebei Province for free in order to realize clean heating in winter. At the same time it also donated
200000 yuan worth of books. This donation is only the first pilot project and the scope of donation will be
appropriately expanded in the later period according to the operation situation.
2. On February 8 2018 Tunghsu Photoelectricity donated 530 sets of graphene heaters which worth 890400 yuan
and 200000 yuan worth of books to the central primary school at Gonghui Town Zhangbei County Hebei
Province and to center gerocomium at Haojiaying township to help primary school students and widows and
orphans live in warm in the winter and do their part in the primary and secondary education.
3. On June 19 2018 Guangxi Sunlong Automobile Manufacturing Co. Ltd. a wholly-owned subsidiary of the
company donated 228500 yuan to Zhongdang village which lies at Jiafang Township Mashan County Guangxi
Province so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-stricken
village in Guangxi: reservoir project of drinking water engineering.
4. During the reporting period Shanghai Sunlong Jiangsu Jixing and Suzhou Tenda which are the wholly-owned
subsidiaries of the company donated 10000 yuan 10000 yuan and 20000 yuan respectively for poverty
alleviation.XVI.Other material events
□Applicable √ Not applicable
No such cases in the reporting period.XVII. Material events of subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proporti
on Share
allotm
ent
Bonus
shares
Capitalizat
ion of
common
reserve
fund
Other
Subtot
al
Quantity
Proportio
n
1.Shares with conditional
subscription
1385624525 24.18% 1385624525 24.18%
1. State-owned legal
person shares
60389095 1.05% 60389095 1.05%
3.Other domestic shares 1325235430 23.13% 1325235430 23.13%
Incl：Domestic legal
person shares
1323974680 23.11% 1323974680 23.11%
Domestic Natural Person
shares
1260750 0.02% 1260750 0.02%
II.Shares with
unconditional subscription
4344625593 75.82% 4344625593 75.82%
1.Common shares in RMB 4094625592 71.46% 4094625592 71.46%
2.Foreign shares in
domestic market
250000001 4.36% 250000001 4.36%
III. Total of capital shares 5730250118 100.00% 5730250118 100.00%
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II. Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of common
shareholders at the end of the
reporting period
358541 (including
341239shareholders holding A
shares and 17302 shareholdersholding B shares）
Total number of preferred
shareholders that had restored
the
voting right at the end of the
reporting period (if any) (note 8)
0
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders
Nature of
shareholde
r
Proporti
on of
shares
held（%）
Number of
shares held at
period -end
Changes
in
reporting
period
Amount of
restricted
shares held
Amount of
un-restricted
shares held
Number of share
pledged/frozen
State of
share
Amount
Tunghsu Group
Domestic
Non
-State-own
ed legal
person
15.97% 915064091
4088500
791889488 123174603 Pledge 799643042
Shijiazhuang
Baoshi Electronic
Group Co. Ltd.
Domestic
Non
-State-own
ed legal
person
5.80% 332382171 0 0 332382171 Pledge 153520000
Shanghai Huimao
Enterprise
Management Co.Ltd.
Domestic
Non
-State-own
ed legal
person
4.58% 262626262 0 262626262 0 Pledge 80240722
China Fund
Management Co.Ltd.－Huaxia
Bank－TTCO
Trust Co. Ltd.－
TTCO Trust Co.
Ltd.－Shunjing
No.5 Single
capital trust
Other 2.54% 145759116 0 0 145759116
Minsheng Royal
Fund Management
Co. Ltd－-Ping
An Bank-Daye
Trust·Zengli 2
single Fund Trust
Other 1.70% 97192224 0 97192224 0
Tunghsu
Optoelectronic
Technology Co.Ltd.－The first
ESOP
Other 1.27% 72639296 0 72639296 0
Beixin Ruifeng
Fund－China
Merchants Bank
－Daye Trust－
Daye Trust·Profit
increase 3 single
fund plan
Other 1.08% 62095032 0 62095032 0
Shenzhen Taianer
Information
Technology Co.Ltd.
Domestic
Non
-State-own
ed legal
person
1.07% 61165682 0 0 61165682 Pledge 55265682
Wanhe Securities
－China
Merchants Bank
－Wanhe
Securities and
No.1 Collective
asset management
plan
Other 0.96% 55246500 0 0 55246500
Nuoan
Fund-Industrial
Other 0.96% 55246487 0 0 55246487
Securities-Nanjing
Shuangan Assets
Management Co.Ltd.Strategy investors or general
legal person becomes top 10
shareholders due to rightsissued (if applicable)（SeeNotes 3）
Among the top 10 shareholders CITIC Fund-Huaxia Bank-Tibet Trust-Tibet Trust-Shunjing No.5
Single Fund Trust and Shenzhen Taianer Information Technology Co. Ltd became the top 10
shareholders of the company by participating in the subscription of the company's non-public share
issuance in 2016-and the sale-restricted period for those shares held is 12 months that is from
August 26 2016 to August 25 2017. Among the top 10 shareholders Shanghai Huimao Enterprise
Management Co. Ltd Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2
Single Fund Trust and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli
No.3 Single Fund Plan became the top 10 shareholders of the company by participating in the
subscription of shares of the company's 2017 Non-public Share Issuance and Paying Cash to
Purchase Assets and Raising Matching Funds and The Related Transaction with that: the shares
held by Shanghai Huihao Enterprise Management Co. Ltd has a sale-restricted period of 36 months
namely from November 30 2017 - November 29 2020; and the shares held by Minsheng Jiayin
Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2 Single Fund Trust and Beixin Ruifeng
Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli No.3 Single Fund Plan have a
sale-restricted period of 12 months namely from December 29 2017 to December 28 2018.
Explanation on shareholders
participating in the margin
trading business
Among the top ten shareholders Tunghsu Group and Baoshi Group have relationship and
constitute persons taking concerted action. The company does not know whether there is
relationship between other 8 shareholders or whether they are persons taking concerted action
defined in Administrative Measures Relating to Acquisitions of Listed Companies.Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholder
Quantity of unrestricted shares held at the end of the
reporting period
Share type
Share type Quantity
Shijiazhuang Baoshi Electronic
Group Co. Ltd.
332382171
RMB Common
shares
332382171
China Fund Management Co. Ltd.
－Huaxia Bank－TTCO Trust Co.Ltd.－TTCO Trust Co. Ltd.－
Shunjing No.5 Single capital trust
145759116
RMB Common
shares
145759116
Tunghsu Group Co. Ltd. 123174603
RMB Common
shares
123174603
Shenzhen Taianer Information
Technology Co. Ltd.
61165682
RMB Common
shares
61165682
Wanhe Securities－China
Merchants Bank－Wanhe Securities
and No.1 Collective asset
management plan
55246500
RMB Common
shares
55246500
Nuoan Fund-Industrial 55246487 RMB Common 55246487
Securities-Nanjing Shuangan Assets
Management Co. Ltd.shares
Zhonghai Trust Co. Ltd.－
Zhonghai Trust－Tunghsu
Optoelectronic ESOP pooled Fund
trust
52555280
RMB Common
shares
52555280
Notional Securities fund－Bohai
Bank－Minsheng Trust－China
Minsheng Trust·Zhicheng No.192
Tunghsu Optoelectronic Directional
additional l fund trust plan
48619336
RMB Common
shares
48619336
Minsheng Royal Fund Management
Co. Ltd.-Ping An Bank-Ping An
Trust-Ping An Wealth* Huitai
No.163 Single Fund Trust
47492649
RMB Common
shares
47492649
China Securities Finance Co. Ltd. 30906112
RMB Common
shares
30906112
Explanation on associated
relationship or consistent action
among the top 10 shareholders of
non-restricted negotiable shares and
that between the top 10 shareholders
of non-restricted negotiable shares
and top 10 shareholders
The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co. Ltd. and the to
p ten shareholders of Tunghsu
Group Co. Ltd. have relationship and constitute persons taking concerted action.Notes to the shareholders involved
in financing securities (if any)(See
Notes 4)
Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
VIII. Information about Directors Supervisors and Senior Executives
I. Change in shares held by directors supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors supervisors and senior management staffs for the specific
information please refer to the 2017 Annual Report.II. Changes in directors supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Li Zhaoting
Director Board
Chairman
Dimission April 252018
Mr. Li Zhaoting is the chairman of Tunghsu Group in
order to focus more on the overall strategic planning of
Tunghsu Group and related matters. Job changes.Wu Jiwei
Director Board
Chairman
Appointment April 252018 New Appointment
Wu Jiwei
Director Board
Chairman
Dimission August 32018
Unable to perform due to health reasons apply for
resignation.Wang Lipeng
Director Board
Chairman
General Manager
Elected August 32018
The chairman of the board of directors was elected by
the eighth board of directors.Huang Jinliang CFO Dimission July 272018 Job Change
Feng Qiuju CFO Appointment July 272018 New Appointment
Gong Xin
Director Board
secretary
Dimission August 32018
Resigned as a director in accordance with the
company's talent strategy adjustment and continued to
serve as secretary of the board of directors
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange and
not yet due or due but not folly cashed on the approval date of annual report
Yes
1. Basic information of the corporate bonds
Bond Name
Abbreviated
Bond Name
Code Issue Date Date Due
Bond
Balance(RMB’
0000)
Interest Rate
Method of
repayment of
the principal
and interest
payment
2015-
corporate bond
of Tunghsu
Optoelectronic
Technology
Co. Ltd
15 Tunghsu
bonds
112243 May 192015 May 192020 95604.27 6.80%
Interest paid
every year the
principal will
be repaid with
the last unpaid
interest in one
time as the
bond due
Listed place or Transaction
place for the corporate bonds
Shenzhen Stock Exchange
Arrangement of investor’s
eligibility
Investor resale option
Information about interest paid
and bonds honored during the
reporting period
The first period bond interest 60000000.00 was paid in full amount on schedule in the current
period.Implementation of relevant
special clauses(if applicable)
such as option clause for the
bond issuer or investors and
exchangeable clause
According to the sell back terms set out in the 2015 Corporate Bond Prospectus of Tunghsu
Optoelectronic Technology Co. Ltd. announced by Tunghsu Optoelectronic Technology Co.Ltd. the company issued the First Indicative Notice of Tunghsu Optoelectronic Technology Co.Ltd. on the Adjustment of the Nominal Interest Rate of “15 Tunghsu Bonds” and the
Implementation Method of Investors’ Sell Back (notice No.: 2018-036) on April 3 2018 the
Second Indicative Notice of Tunghsu Optoelectronic Technology Co. Ltd. on the Adjustment of
the Nominal Interest Rate of “15 Tunghsu Bonds” and the Implementation Method of Investors’
Sell Back (notice No.: 2018-037) on April 4 2018 and the Third Indicative Notice of Tunghsuoptoelectronic Technology Co. Ltd. on the Adjustment of the Nominal Interest Rate of “15Tunghsu Bonds” and the Implementation Method of Investors’ Sell Back (notice No.: 2018 - 038)
on April 9 2018. The sell back price of “15 Tunghsu Bonds” is RMB 100.00 yuan/sheet
(excluding interest) the sell back reporting period is from April 3 2018 to April 9 2018. The
issuer of this corporate bond i.e. the company has the right to decide to adjust the coupon rate of
the subsequent term at the end of the third year of the current bond’s duration during the duration
of the current corporate bond (bond code: 112243 hereinafter referred to as “15 Tunghsu Bonds”).The coupon rate of this bond is 6.00 % in the first three years of the duration. At the end of the
third year of the duration of this bond the company chose to raise the coupon rate that is the
coupon rate of this bond will be raised from 6.00 % to 6.80 % in the next two years of the duration
of this bond and will remain unchanged for this two years (from May 19 2018 to May 18 2020).
2.Information about the bond trustee and credit rating agency
Bond trustee:
Name
Guangzhou
Securities Co.Ltd.
Business
Address
19-20/F Main
Tower
Guangzhou
International
Finance Center
No.5 Zhujiang
West Road
Tianhe District
Guangzhou
City
Contacts
Shi Jianhua
Yan Xiangjun
Telephone 020-88836999
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Name United Rating Co.Ltd
Business
Address
Room 508 Ailiyuan Apartment No.38 Water
Park North Road Nankai District Tianjin City
During the report period the bond trustee
credit rating agency employed by the
company that have changed reasons for
the change performing procedures
relevant influence on investors etc ( if
applicable)
Not applicable
III. Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds
raised by issuing corporate bonds and
related implementation procedure
Using the funds raised by issuing corporate bonds strictly conforming to the purpose
stipulated by Rules of Management and Use of the Raised Funds and the Prospectus
and implemented the corresponding approval procedures
Ending balance of the year（Ten thousand） 0
Operation status of the special account for
the raised funds
Normal
Whether the use of the raised funds
conforming to the purpose use plan and
other provisions specified in the
Prospectus
The use of the raised funds conformed to the purpose promised in the Prospectus
IV. Information about the rating of the corporate bonds
On June 14 2018 United Ratings Co. Ltd. issued trace rating report LHPZ [2018] No.960 based on the
company’s 2017 Annual Report. This rating result is long-term credit rating AA+ and its outlook is "Steady".(For details please refer to the "Tracking Rating Announcement" of the company disclosed on www.cninfo.com
cn June 16 2018)
According to the United Rating Co.Ltd’s requirements on tacking and rating a regular rating shall be carried out
within 2 months after the company’s disclosure of 2017 annual report. Also the United Rating Co.Ltd shall carry
out randomly tracking and rating during the duration of the corporate bonds based on relevant information.V. The corporate bond’s credit mechanism repayment plan and other safeguard measures for repayment
Repayment Plan
I. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.
Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 of
each year from 2016 to 2020(If it is not a working day the payment day will be postponed to the first working day
after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond the
interest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.
2. The payment of the interest of the bonds shall be handled through the bond registration institution and other
related institutions. The concrete information of the interest payment will be specified in the Interest Payment
Announcement issued on the media designated by CSRC with in accordance with the relevant state regulations.
3. According to relevant national tax laws and regulations the investor of the corporate bond shall fully bear the
relevant tax should be paid.II. The repayment of the principal
1. The principal will be fully repaid in a time and its repaying day is May 19 2020. If the investors exercise the
puttable right at the end of the third year in the duration of the bond the repaying day of the principal of the bonds
being sold back is May 19 2018. (If the repaying day aforesaid is not a working day the repaying day shall be
postponed to the first working day after the original day and there is no need to pay interest in the deferred
period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other
related institutions. The concrete information of repayment of the principal of the bonds will be specified in the
Principal Repayment Announcement issued on the media designated by CSRC with in accordance with the
relevant state regulations.Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
The company designated its finance department to take the lead in the coordination work for repayment of the
bonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for
the repayment of the bonds in every year’s financial budget for ensuring the repayment of the interest and
principal of the bonds is timely guaranteeing the bond-holder’s interest. The company will set up a working team
for repayment 15days before the day that is the interest paying day or principal repaying day of the bonds with
the personnel of the finance department being included to specially in charge of the work of paying the interest of
the bonds and the repayment of the principal.II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach the company with bond trustee has established the
Meeting Rules for Bond-holders for the corporate bonds. The Meeting Rules for Bond-holders specified the scope
procedures and other important items for the bond-holders to exercise rights through the Meeting of the
Bond-holders which provided a reasonable institutional arrangement for the timely and full payment to the
interest and the principal of the corporate bonds.III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach the company has adopted the institution of bond
trustee engaged Guangzhou Securities Co.Ltd as the trustee of the bonds this time and signed the Agreement of
Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to
supervise the relevant information about the company and take all necessary measures to protect the legitimate
interest of the bond-holders when the interest or principal of the bonds cannot be repaid in time.The company shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management
being cooperative when the bond trustee performance its duties and regularly submit the report of commitment
fulfillment status to the bond trustee. When there is a possible bond default the company shall notice the bond
trustee in time thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Management.Ⅳ. Strictly fulfilling the obligation of information disclosure
The company shall adhere to the information disclosure principles of authentic accurate and completed making
the information of the company’s repaying ability and use of the raised funds to be supervised by the bond trustee
and shareholders for preventing the risk of repayment. According to the Agreement of Bond Entrusted
Management and relevant regulations the company shall release the information of major issues which include
but not limited to the following contents: (1) According to the Prospectus and agreement with the registered
trustee institution the company shall transfer the maturity interest payment or principal to the account designated
by the registered trustee institution; (2) By estimate or in fact the company cannot fully repay the interest or
principal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guarantee
contract for external or other major contracts may have significant adverse effects of repaying the interest and
principal of the bonds; (4) A severe loss occurred or expected to occur and the loss exceeds 10% of the net asset
audited in the last accounting year; (5) Occurrence of capital reduction merger division dissolution file for
bankruptcy entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of the
amount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accounting
year; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in the
last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the
stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the
relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may
significantly impact the repaying of the interest and principal or circumstances specified by laws administrative
regulations and stipulations by the CSRC or exchange.Ⅴ. Setting up the capital management plan and strictly implementing the plan
After the issuance of the bonds the company shall further reinforce the company’s assets and liabilities
management liquidity management use management of the raised funds funds management and so forth
according to the company’s debt structure. Also the company will set up monthly and yearly funds use plan based
on the maturity of repaying the interest and principal ensuring on-schedule timely and full-amount preparing of
the funds for repaying every year’s interest or principal of the bonds to adequately protect the investor’s interest.VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21 2014 and the
general meeting of shareholders on Nov 6 2014 when the company cannot repay the interest or principal of the
bonds in time or fully repay the interest or principal of the bonds the company shall take the following resolutions
and make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capital
expenditure items such as major investment merger and acquisition; (3) Reducing or stopping the salaries and
bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel
and so on.VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.VII. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status The bond trustee Guangzhou
Securities Co. Ltd. disclosed the Tunghsu Optoelectronic Technology Co. Ltd. on April 27 May 10 and August
9 2018 according to major changes in the chairman of the company and partial bond resale. The company's 2015
corporate bond major issues were entrusted with an interim report on management affairs.VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting
period
Ten thousand
Items
As at the end of the reporting
period
As at the end of last year YoY+/-（%）he same period
Current ratio 205.16% 223.59% -18.43%
Debt ratio 52.04% 53.11% -1.07%
Quick ratio 171.37% 177.08% -5.71%
Reporting period The same period of last year At the same time rate of change
EBITDA interest coverage ratio 3.44 2.85 20.70%
Loans repayment rate 100.00% 100.00% 0.00%
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
□ Applicable √ Not applicable
IX. The company fails to repay the debt
□ Applicable √ Not applicable
No such cases in the reporting period.X. Information about the repayment of interest and principal for other bonds or debt financing
instruments
1. Bonds issuing interest payment and cashing within the report period
Nil
2. Unmatured bonds issuing interest payment and cashing in previous years
(1)As approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635 the company
issued toward the public 1 billion bones on May 19 2015 In 2018 the third-phase bond interest was paid RMB
60000000.00; on May 19 2018 the resale amount was RMB 43957300.00 and the coupon rate was adjusted
from 6.00% to 6.80%.
（2）The company 8th Board of Directors approved the application to National Association of Financial Market
Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion medium term note on
September 8 2016. The extraordinary general shareholders’ meeting was convoked on September 26 2016 and
approved the program concerning the proposed registration and issuance of the medium term note. The medium
term note in 2016 was 4.7 billion in two periods including the first period with two types of (3+2 years) and 5 years
totaling up to 3 billion and the second period with two types of (3+2 years) and 5 years totaling up to 1.7 billion
which would both adopt the interest payment per year principal repayment upon expiration and the interest payment
together with the principal cashing for the last period. The interest payment period has not expires within the report
period and the interest accrued was RMB147856644.84 .XI.Information about the bank credit obtaining and use as well as repayment of the bank loans during the
reporting period
The balance of the total amount of the short-term and long-term loans is RMB 13934712962.15 decreased
RMB1184082357.41compared with the end of year 2017 which mainly because of the need of the production and
operation and the construction of projects. The company strictly conformed to requests of bank loans to use the
funds and fully repaid the interest and principal to the bank in time.XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the
issuance of the bonds during the reporting period
During the reporting period the company had been strictly conforming to the stipulations specified in the
Prospectus of the issuance of the bonds to use the raised funds and the company had fulfilled the commitments of
not using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiaries
engaged in real estate business.XIII.Major events occurred during the reporting period
The bond trustee Guangzhou Securities Co. Ltd. disclosed the Tunghsu Optoelectronic Technology Co. Ltd. on
April 27 May 10 and August 9 2018 according to major changes in the chairman of the company and partial
bond resale. The company's 2015 corporate bond major issues were entrusted with an interim report on
management affairs.XIV. Whether the corporate bonds have a guarantor
□ Yes √No
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by: Tunghsu Optoelectronic Technology Co. Ltd.June 302018
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 23794597055.80 27456759768.86
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 775388432.95 538128584.84
Account receivable 9937647168.77 7873419684.42
Prepayments 1531060694.47 2021119950.95
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 29306335.47 49456785.29
Dividend receivable
Other account receivable 1349893792.08 1044890336.32
Repurchasing of financial assets
Inventories 4210883497.85 4914482277.21
Assets held for sales 126264435.58 213034435.58
Non-current asset due in 1 year
Other current asset 1207390102.41 2559947333.75
Total of current assets 42962431515.38 46671239157.22
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 243158605.30 100000056.00
Expired investment in possess
Long-term receivable 138899570.70 143988866.91
Long term share equity investment 2142476783.38 2130640158.90
Property investment 66930130.01 58229439.86
Fixed assets 10938598162.98 11378564235.15
Construction in progress 5387496213.47 3663486639.90
Engineering material
Fixed asset pending for disposal
Productive biological assets
Gas & petrol
Intangible assets 1149208605.35 1001796110.02
R & D petrol 23318709.50 15397704.97
Goodwill 2840823542.00 2587678140.99
Long-germ expenses to be amortized 15312986.85 26538304.02
Differed income tax asset 503169733.61 526817792.76
Other non-current asset 282006939.10 306402939.48
Total of non-current assets 23731399982.25 21939540388.96
Total of assets 66693831497.63 68610779546.18
Current liabilities
Short-term loans 6812784698.87 5712826382.20
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 999267096.40 1063897679.89
Account payable 4690738505.02 4636989039.65
Advance payment 976357517.81 1655137563.63
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 162528069.08 207697362.25
Tax payable 454014088.92 294979419.96
Interest payable 196787018.42 107195147.20
Dividend payable 313488825.93 35000000.00
Other account payable 1801519889.12 1887520891.88
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 4373736193.82 5045608756.45
Other current liability 159985427.25 227155178.97
Total of current liability 20941207330.64 20874007422.08
Non-current liabilities：
Long-term loan 3823532289.32 5209726250.77
Bond payable 5625817373.23 5665126090.52
Including：preferred stock
Sustainable debt
Long-term payable 2976840728.76 3276308254.44
Long-term payable employees’s
remuneration
Special payable
Expected liabilities 113262230.99 156421713.31
Deferred income 555127835.23 592290617.42
Differed income tax liability 62295616.96 60149328.74
Other non-current liabilities 608000000.00 608000000.00
Total non-current liabilities 13764876074.49 15568022255.20
Total of liability 34706083405.13 36442029677.28
Owners’ equity
Share capital 5730250118.00 5730250118.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 21793727706.54 21987405220.42
Less：Shares in stock 4422320.00 4422320.00
Other comprehensive income 3233.93 -4518.45
Special reserves 1990473.67 1983921.21
Surplus reserves 224133824.86 224133824.86
Common risk provision
Undistributed profit 3467550877.18 3010372296.37
Total of owner’s equity belong to the
parent company
31213233914.18 30949718542.41
Minority shareholders’ equity 774514178.32 1219031326.49
Total of owners’ equity 31987748092.50 32168749868.90
Total of liabilities and owners’ equity 66693831497.63 68610779546.18
Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 7180172168.51 11224359236.39
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Notes receivable 1250000.00 200000.00
Account receivable 23732862.59 23837262.59
Prepayments 7684221.64 16902375.19
Interest receivable 8763055.45 41868921.15
Dividend receivable 665000000.00
Other account receivable 7276060704.75 4790712672.70
Inventories 499916720.50 509283364.38
Assets held for sales
Non-current asset due in 1 year
Other current asset 148973.38 1220148973.38
Total of current assets 14997728706.82 18492312805.78
Non-current assets：
Disposable financial asset 129500056.00 100000056.00
Expired investment in possess
Long-term receivable
Long term share equity investment 25058355620.34 23020364897.17
Property investment
Fixed assets 42430964.28 44669881.93
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 9513240.92 9687094.58
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 59375663.74 58105970.47
Other non-current asset 1381400.00 1381400.00
Total of non-current assets 25300556945.28 23234209300.15
Total of assets 40298285652.10 41726522105.93
Current liabilities
Short-term loans 2640000000.00 2760000000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 11734918.78 15219920.86
Advance payment 421587.90 421587.90
Employees’ wage payable 2841705.33 4061413.48
Tax payable 28982766.19 28150779.48
Interest payable 164902902.61 79827566.10
Dividend payable 313488825.93
Other account payable 983980211.32 423790359.27
Liabilities held for sales
Non-current liability due in 1 year 2138316666.62 2769233333.30
Other current liability
Total of current liability 6284669584.68 6080704960.39
Non-current liabilities：
Long-term loan 611000000.00 1512500000.00
Bond payable 5625817373.23 5665126090.52
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 6236817373.23 7177626090.52
Total of liability 12521486957.91 13258331050.91
Owners’ equity
Share capital 5730250118.00 5730250118.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 21833675749.27 21861207672.90
Less：Shares in stock 4422320.00 4422320.00
Other comprehensive income
Special reserves
Surplus reserves 205144600.53 205144600.53
Undistributed profit 12150546.39 676010983.59
Total of owners’ equity 27776798694.19 28468191055.02
Total of liabilities and owners’ equity 40298285652.10 41726522105.93
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 11129851790.88 4876438604.10
Incl：Business income 11129851790.88 4876438604.10
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 10088242118.58 4162420389.45
Incl：Business cost 9021989897.09 3473962810.22
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 186096120.70 48928687.73
Sales expense 93892692.42 42456252.57
Administrative expense 389977702.76 229378673.33
Financial expenses 395227116.30 368191927.63
Asset impairment loss 1058589.31 -497962.03
Add：Gains from change of fir value（“-”for loss）
Investment gain（“-”for loss） 23706518.19 6676924.21
Incl: investment gains from affiliates 11836624.48 -15506492.83
Gains from currency exchange（“-”for loss）
Assets disposal income -664826.45
Other income 108362056.52 86680000.00
III. Operational profit（“-”for loss） 1173013420.56 807375138.86
Add ：Non-operational income 5945896.93 70508514.69
Less：Non business expenses 2767812.01 602497.65
IV.Total profit(“-”for loss) 1176191505.48 877281155.90
Less：Income tax expenses 282130776.24 191513884.53
V. Net profit 894060729.24 685767271.37
1.Net continuing operating profit 894060729.24 685767271.37
2.Termination of operating net profit
Net profit attributable to the owners of
parent company
858296089.08 637480381.47
Minority shareholders’ equity 35764640.16 48286889.90
VI. Other comprehensive income 14095.23 -1368.93
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
7752.38 -1368.93
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.（II）
Other comprehensive income that will be
reclassified into profit or loss.
7752.38 -1368.93
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina 7752.38 -1368.93
ncial statements
6.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
6342.85
VII. Total comprehensive income 894074824.47 685765902.44
Total comprehensive income
attributable to the owner of the parent
company
858303841.46 637479012.54
Total comprehensive income
attributable minority shareholders
35770983.01 48286889.90
VIII. Earnings per share
（I）Basic earnings per share 0.15 0.13
(II)Diluted earnings per share 0.15 0.13
The current business combination under common control the net profits of the combined party before achieved ne
t profit of RMB-9555668.76 last period the combined party realized RMB-5213532.93.Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-in -charge of the accounting organ：Gao Feipeng
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 55315982.40 38597681.18
Incl：Business cost 38492540.23 28092263.28
Business tax and surcharge 2172697.75 3585313.26
Sales expense
Administrative expense 24293737.94 22819056.56
Financial expenses 251600276.69 251791850.48
Asset impairment loss 7901312.69 -279738.15
Add：Gains from change of fir value（“-”for loss）
Investment gain（“-”for loss） 5131289.44 6675734.01
Incl: investment gains from affiliates 11835887.67 -15507683.03
Assets disposal income
Other income
II. Operational profit（“-”for loss） -264013293.46 -260735330.24
Add ：Non-operational income 671.41 6388.00
Less：Non business expenses 0.15
III.Total profit(“-”for loss) -264012622.20 -260728942.24
Less：Income tax expenses -1269693.27 3374750.50
IV. Net profit（“-”for net loss） -262742928.93 -264103692.74
1.Net continuing operating profit -262742928.93 -264103692.74
2.Termination of operating net profit
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.（ II ）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income -262742928.93 -264103692.74
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
rending of services
9938756230.71 5146821885.37
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 89994925.74 171066018.68
Other cash received from business
operation
730551299.36 203747413.68
Sub-total of cash inflow 10759302455.81 5521635317.73
Cash paid for purchasing of
merchandise and services
8162424567.65 5213805385.34
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 608921172.96 277912435.10
Taxes paid 568158273.01 544190992.27
Other cash paid for business activities 1336181154.53 850676318.80
Sub-total of cash outflow from business
activities
10675685168.15
6886585131.51
Cash flow generated by business
operation net
83617287.66
-1364949813.78
II.Cash flow generated by investing
Cash received from investment
retrieving
1251030000.00 5399999000.00
Cash received as investment gains 13923452.07 22183417.04
Net cash retrieved from disposal of
fixed assets intangible assets and other
long-term assets
1339040.00
Net cash received from disposal of
subsidiaries or other operational units
393727652.59
Other investment-related cash received 200000000.00 190962.49
Sub-total of cash inflow due to
investment activities
1860020144.66 5422373379.53
Cash paid for construction of
fixed assets intangible assets
and other long-term assets
2686335621.99 1082436888.19
Cash paid as investment 408243324.50 5375599000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
107762094.14 2886994.56
Other cash paid for investment
activities
318237076.99
50000000.00
Sub-total of cash outflow due to
investment activities
3520578117.62
6510922882.75
Net cash flow generated by investment -1660557972.96 -1088549503.22
III.Cash flow generated by financing
Cash received as investment 4169500.00 185130000.00
Incl: Cash received as investment from
minor shareholders
4169500.00 185130000.00
Cash received as loans 3146840211.91 3307676666.66
Cash received from bond placing
Other financing –related ash received 565785278.10 461896848.85
Sub-total of cash inflow from financing
activities
3716794990.01 3954703515.51
Cash to repay debts 4528169601.04 3299247331.44
Cash paid as dividend profit or
interests
640756867.95 785097280.87
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
30000000.00
Other cash paid for financing activities 640002625.89 499724825.13
Sub-total of cash outflow due to
financing activities
5808929094.88
4584069437.44
Net cash flow generated by financing -2092134104.87 -629365921.93
IV. Influence of exchange rate
alternation on cash and cash equivalents
-2652600.61 8711680.32
V.Net increase of cash and cash
equivalents
-3671727390.78 -3074153558.61
Add: balance of cash and cash
equivalents at the beginning of term
25114660756.25 25537802101.80
VI ..Balance of cash and cash
equivalents at the end of term
21442933365.47 22463648543.19
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
rending of services
63990000.00 51105726.47
Tax returned 13719.30
Other cash received from business
operation
330847011.69 4513958096.78
Sub-total of cash inflow 394850730.99 4565063823.25
Cash paid for purchasing of
merchandise and services
33858206.35 172870594.52
Cash paid to staffs or paid for staffs 16144890.38 5039091.78
Taxes paid 3755213.45 8445826.76
Other cash paid for business activities 217407719.04 7197399250.81
Sub-total of cash outflow from business
activities
271166029.22 7383754763.87
Cash flow generated by business
operation net
123684701.77 -2818690940.62
II.Cash flow generated by investing
Cash received from investment
retrieving
1770000000.00 5399999000.00
Cash received as investment gains 678923452.07 592183417.04
Net cash retrieved from disposal of
fixed assets intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
investment activities
2448923452.07 5992182417.04
Cash paid for construction of
fixed assets intangible assets
and other long-term assets
Cash paid as investment 2617565500.00 9117899000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
12759192480.99 170000000.00
Sub-total of cash outflow due to 15376757980.99 9287899000.00
investment activities
Net cash flow generated by investment -12927834528.92 -3295716582.96
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 580000000.00 2016666666.66
Cash received from bond placing
Other financing –related ash received 10804871140.21 108271893.76
Sub-total of cash inflow from
financing activities
11384871140.21 2124938560.42
Cash to repay debts 2276373966.68 1576266666.68
Cash paid as dividend profit or
interests
348534414.26 552539171.23
Other cash paid for financing activities 28679113.18
Sub-total of cash outflow due to
financing activities
2624908380.94 2157484951.09
Net cash flow generated by financing 8759962759.27 -32546390.67
IV. Influence of exchange rate
alternation on cash and cash equivalents
433490.32
V.Net increase of cash and cash
equivalents
-4044187067.88 -6146520423.93
Add: balance of cash and cash
equivalents at the beginning of term
11224359236.39 16951756537.76
VI ..Balance of cash and cash
equivalents at the end of term
7180172168.51 10805236113.83
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Items
Amount in this period
Owner’s equity Attributable to the Parent Company
Minor
shareho
lders’
equity
Total of
owners’
equity
Share
Capita
l
Other Equity
instrument
Capital
reserves
Less:
Shares
in stock
Other
Compre
hensive
Income
Speciali
zed
reserve
Surplus
reserves
Commo
n risk
provisio
n
Retaine
d profits
prefer
red
stock
Sustai
nable
debt
Other
I.Balance at the
end of last year
5730
25011
8.00
21987
405220
.42
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30103
72296.
37
12190
31326.
49
32168
749868
.90
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
beginning of
current year
5730
25011
8.00
21987
405220
.42
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30103
72296.
37
12190
31326.
49
32168
749868
.90
III.Changed in the
current year
-19367
7513.8
8
7752.3
8
6552.4
6
457178
580.81
-44451
7148.1
7
-18100
1776.4
0
（1）Total
comprehensive
income
7752.3
8
858296
089.08
35764
640.16
894068
481.62（II）Investment
or decreasing of
capital by owners
-27036
4.11
41695
00.00
38991
35.89
1．Ordinary Share
s invested by share
holders
41695
00.00
41695
00.00
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
-27036
4.11
-27036
4.11（III）Profit
allotment
-40111
7508.2
7
-40111
7508.2
7
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
-40111
7508.2
7
-40111
7508.2
7
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
6552.4
6
6552.4
6
1. Provided this
year
6552.4
6
6552.4
6
2．Used this term（VI）Other
-19340
7149.7
7
-48445
1288.3
3
-67785
8438.1
0
IV. Balance at the
end of this term
5730
25011
8.00
21793
727706
.54
44223
20.00
3233.9
3
19904
73.67
224133
824.86
34675
50877.
18
774514
178.32
31987
748092
.50
Amount in last year
In RMB
Items
Amount in last year
Owner’s equity Attributable to the Parent Company Minor
shareho
lders’
Total
of
owner
Share
Capita
Other Equity
instrument
Capital
reserves
Less:
Shares
Other
Compre
Speciali
zed
Surplus
reserves
Commo
n risk
Retaine
d profits
l
prefer
red
stock
Sustai
nable
debt
Other
in stock hensive
Income
reserve provisio
n
equity s’
equity
I.Balance at the
end of last year
4939
92898
3.00
16
338960
810.89
44223
20.00
188044
070.48
18236
95278.
31
10930
61728.
31
24379
268550
.99
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
195000
000.00
-15761
2768.1
0
89140
997.13
126528
229.03
Other
II.Balance at the
beginning of
current year
4939
92898
3.00
16533
960810
.89
44223
20.00
188044
070.48
16660
82510.
21
11822
02725.
44
24505
796780
.02
III.Changed in the
current year
79032
1135.
00
54534
44409.
53
-4518.4
5
19839
21.21
36089
754.38
13442
89786.
16
36828
601.05
76629
53088.
88
（1）Total
comprehensive
income
-4518.4
5
17332
01682.
30
190638
919.68
19238
36083.
53（II）Investment
or decreasing of
capital by owners
79032
1135.
00
66903
26329.
82
382886
041.50
78635
33506.
32
1．Ordinary Share
s invested by share
holders
79032
1135.
00
67285
22710.
65
382886
041.50
79017
29887.
15
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
-38196
380.83
-38196
380.83
(IV) Internal 36089 -38891 -35000 -38782
transferring of
owners’ equity
754.38 1896.1
4
000.00 2141.7
6
1. Capitalizing of
capital reserves (or
to capital shares)
36089
754.38
-36089
754.38
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
-35282
2141.7
6
-35000
000.00
-38782
2141.7
6
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term（VII）Other
IV. Balance at the
end of this term
(V) Special
reserves
19839
21.21
19061
20.38
38900
41.59
1. Provided this
year
38971
707.64
19061
20.38
40877
828.02
2．Used this term
-36987
786.43
-36987
786.43（VI）Other
-12368
81920.
29
-50360
2480.5
1
-17404
84400.
80
IV. Balance at the
end of this term
5730
25011
8.00
21987
405220
.42
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30103
72296.
37
12190
31326.
49
32168
749868
.90
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Items Amount in this period
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares in
stock
Other
Compreh
ensive
Income
Surplus
reserves
Common
risk
provision
Retaine
d profits
Total of
owners’
equity
preferre
d stock
Sustain
able
debt
Other
I.Balance at the
end of last year
573025
0118.00
2186120
7672.90
4422320
.00
2051446
00.53
676010
983.59
2846819
1055.02
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of
current year
573025
0118.00
2186120
7672.90
4422320
.00
2051446
00.53
676010
983.59
2846819
1055.02
III.Changed in the
current year
-275319
23.63
-66386
0437.2
0
-691392
360.83
（I）Total
comprehensive
income
-26274
2928.9
3
-262742
928.93
(II) Investment or
decreasing of
capital by owners
-275319
23.63
-275319
23.63
1．Ordinary Share
s invested by share
holders
-275319
23.63
-275319
23.63
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other（III）Profit
allotment
-40111
7508.2
7
-401117
508.27
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
-40111
7508.2
7
-401117
508.27
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term（VI）Other
IV. Balance at the
end of this term
573025
0118.00
2183367
5749.27
4422320
.00
2051446
00.53
12150
546.39
2777679
8694.19
Amount in last year
In RMB
Items
Amount in last year
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares in
stock
Other
Compreh
ensive
Income
Surplus
reserves
Common
risk
provision
Retaine
d profits
Total of
owners’
equity
preferre
d stock
Sustain
able
debt
Other
I.Balance at the
end of last year
493992
8983.00
1513019
1736.27
4422320
.00
1690548
46.15
696998
223.03
2093175
1468.45
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of
current year
493992
8983.00
1513019
1736.27
4422320
.00
1690548
46.15
696998
223.03
2093175
1468.45
III.Changed in the
current year
790321
135.00
6731015
936.63
3608975
4.38
-20987
239.44
7536439
586.57
（I）Total
comprehensive
income
360897
543.75
3608975
43.75
(II) Investment or
decreasing of
capital by owners
790321
135.00
6731015
936.63
7521337
071.63
1．Ordinary Share
s invested by share
holders
790321
135.00
6728522
710.65
7518843
845.65
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
2493225
.98
2493225
.98（III）Profit
allotment
3608975
4.38
-38188
4783.1
9
-345795
028.81
1.Providing of
surplus reserves
3608975
4.38
-36089
754.38
2．Allotment to the
owners (or
shareholders)
-34579
5028.8
1
-345795
028.81
3．Other
(IV)Internal
transferring of
owners’ equity
. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term（VI）Other
IV. Balance at the
end of this term
573025
0118.00
2186120
7672.90
4422320
.00
2051446
00.53
676010
983.59
2846819
1055.02
III. Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Tunghsu
Optoelectronic Technology Co. Ltd.（Hereinafter referred to as “The Company” or “Tunghsu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992 Shijiazhuang Baoshi Electronic Glass Co. Ltd. is a joint stock
limited company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang
Baoshi Electronics Group Co. Ltd.later) China Electronic Import and export Corporation and Zonghua Hebei
Import and Export Company. At the Time of establishment the Company had 25.68 million shares (the par value
of each share is RMB 10) and total share capital of RMB 256.80 million.On July 17 1993 the Company held a provisional shareholders' general meeting and decided to split the stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result the total
number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co. Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11 1996 the Company issued 100 million domestically listed foreign investment shares (B
shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the
Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co. Ltd. to Publicly Issue Shares (Zheng
Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year the Company publicly issued 26.20 million
shares (the par value of each share is RMB 1). As of September 17 1996 the total share capital of the Company
increased to RMB 383 million.
According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co. Ltd. (Zhen Jian
Xu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC") the Company
privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share
on April 3 2013. All investors subscribed for shares in cash. After this private issue the registered capital of the
Company was changed to RMB 903.00 million.
The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co. Ltd. changed to Tu
nghsu Group a direct stake of 14.40% Shijiazhuang Baoshi Electronic Glass Co. Ltd. held the indirectly 12.27%
of the share.The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G
lass Co. Ltd. to Tunghsu Optoelectronic Technology Co. Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of
association approved on April 27 2014 the company has transferred 20 shares for each 10 shares to all shareholders
and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31
2013. Thus the registered capital of RMB1806 million applied to add by the company should be transferred into the
share capital by the capital reserve with the reference date on May 27 2014 and the registered capital is RMB2709
million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Tunghsu Optoelectronic Technology Co. Ltd. (Draft)” and
its summary proposal approved after the second temporary shareholders’ resolution in 2014 the company has
implemented the stock option incentive to grant 41 people the restricted stocks of RMB3080000.00 with the price of
RMB3.88 per share which are all in cash subscription. Thus the company shall increase the share capital of RMB3.08
million and the capital reserve of RMB 8870400.00 and the share capital is RMB2712080000.00 after changed.Under the provisions of “Proposal on Repurchase of Part of Domestic Listed Foreign Shares (Share B)” approved after
the second temporary shareholders’ resolution in 2014 the company has repurchased 49999999.00 B shares released
outside and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus the
company shall decrease the share capital of RMB49999999.00 and the capital reserve of RMB218024376.60 and
the share capital is RMB2662080001.00 after changed.Referring to the resolutions determined on the 27
th
Meeting of the 7
th
Board of Directors of the company the 31
st
Meeting of the 7
th
Board of Directors the 1
st
General Meeting of Extraordinary Shareholders in 2015 the 38
th
Meeting of the 7
th
Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Tunghsu Photoelectric
Technology Co. Ltd. it is approved that the company issues new shares less than 1186943620 privately. The
planned number of privately issued stocks is less than (including) 1186943620. The actual issuance number of
the stock is 1173020525 and the modified equity capital is 3835100526.00 yuan.
According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approved
on the 43
rd
Meeting of the 7
th
Board of Directors of the company convened on October 29 2015 the company
plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity
incentive objects sum to 100000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financial
leasing are considered as operating leasing
According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to Tunghsu
Optoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved
in the 7th board of the forty-eight meeting and the first extraordinary shareholders' general meeting，it is approvedthat the company issues new shares less than 1104928457.00 privately. The planned number of privately issued
stocks is less than (including) 1104928457.00. The actual issuance number of the stock is 1104928457.00 and
the modified equity capital is 4939928983.00 yuan.
According to the company's eleventh meeting of the eighth Board of Directors held on March 20 2017 the
eighteenth meeting of the eighth Board of Directors held on June 9 2017 the fourth temporary shareholders’
general meeting of 2017 held on June 26 2017 and the Approval on Tunghsu Optoelectronic Technology Co.Ltd’s Share Issuance to Objects Including Shanghai Huimao Enterprise Management Co. Ltd for Asset
Purchase and Raising Matching Funds by CSRC (Zhen Jian Xu Ke [2017] No. 1841 Doc) approved that the
company shall issue 262626262 shares to Shanghai Huimao Enterprise Management Co. Ltd (hereinafter
referred to as "Shanghai Huimao") 106326446 shares to Tunghsu Group Co. Ltd (hereinafter referred to as
"Tunghsu Group") 11380165 shares to Mianyang Science and Technology City Development Investment
(Group) Co. Ltd (hereinafter referred to as "Mianyang Science and Technology Group") and 5020661 shares to
Sichuan Changhong Electric Appliance Co. Ltd (hereinafter referred to as "Sichuan Changhong") for purchasing
the underlying assets; and approved that the Company shall raise no more than RMB 3750000000 of matching
funds by the company’s non-public share issuance. The Company actually issued 385353534.00 shares for
purchasing the assets The issue price per share is 9.90 yuan; and issued 404967601.00 shares for raising the
matching funds The issue price per share is 9.26 yuan;thus the capital stock after the change became RMB
5730250118.00.
As of June 30 2018 Registered capital : RMB 5730250118.00 Legal representative: Wang Lipeng
Enterprise unified social credit code: 911301001043959836 Registered Address: No.9 Huanghe Road
Shijiazhuang High-tech Industrial Development Area Shijiazhuang Hebei Province.Tunghsu Optoelectronic Parent Company is the Tunghsu Group，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 46th meeting of the 8th Board of
Directors on August 30 2018.
The company's business scope: investing in the project investments with its own funds; research and
development of machinery equipment and electronic products; manufacturing and production-process
development of various non-standard equipments and components; processing and sales of electronic products for
grinding machine (excluding public safety equipment and devices); self operated and agent import and export
business of various commodities and technologies; computer system integration software development technical
consulting; installation of electrical and mechanical equipment (not including pre-licensing ones) engineering
advice. (All of the above scope excluded those prohibited or restricted by laws regulations and State Council
decisions; matters needing approval by other departments can be operated after the approval).In the reporting period 19 subsidiaries and 86 sub-subsidiaries were included in the consolidation scope by
the company see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the
company increased by 24 decreased by 2 and a net increased by 22 companies year on year at this reportingperiod see details at Note 8“Change of
IV.Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the actual
transactions and items，the Company prepared financial statements in accordance with the ASBE-Basic Standardand revised thereafter Application Guidance of Accounting Standard for Business Enterprises Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the AccountingStandards for Business Enterprises” “China Accounting Standards” or “CAS”)，Rules for Preparation Convention
of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in
2014) by China Securities Regulatory Commission.
In accordance with Accounting Standards for Business Enterprises the Company has adopted the accrual basis of
accounting. Except for certain financial instruments the Company adopts the historical cost as the principle of
measurement in the financial statements. The valuation will be made according to the lower one between the
amount of on-sales non-current assets after fair value deducts the predicted costs and the original book value
which conforms to the condition of being on-sales. When assets are impaired provisions for asset impairment are
made in accordance with relevant requirements.
2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period
and hasn’t the major issues impacting on the sustainable operation ability.V. The company's major accounting policies accounting estimates and prior errors
Important prompt:
Nil
1.Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system and have truly and completely reflected of the financial status in June
302018 operational results cash flow and other relevant information of January –June 2018.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year.
3. The operating cycle
The normal business cycle refers to the period starting from assets purchased for processing to cash or cash
equivalents converted. The Company uses a 12-month operating cycle as liquidity classification criteria for its
assets and liabilities.
4. Currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.. Accounting treatments for a business combinations under common control and under non common control
The term "business combination" refers to a transaction or event combining two or more separate enterprises into
one reporting entity. Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
(1) A business combination involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination
and that control is not transitory. For the business combination involving enterprises under common control the
party obtaining the control right over other enterprises involved in the combination on the combination date is the
combining party while other enterprises involved in the combination is the combined party. The combination date
is the date on which one combining enterprise obtains control of other combining enterprises.
Assets and liabilities obtained are measured at their respective carrying amounts as recorded by the combining
entities at the date of the combination. The difference between the carrying amount of the net assets obtained and
the carrying amount of the consideration paid for the combination [the aggregate face value of shares issued as
consideration] is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb
the difference any excess is adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are
incurred.
（2）A business combination not involving enterprises under common control
A business combination not involving enterprises under common control is a business combination in which all of
the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination. For the business combination not involving enterprises under common control the party obtaining
the control right over other enterprises involved in the combination on the combination date is the combining
party while other enterprises involved in the combination is the combined party. The combination date is the date
on which one combining enterprise obtains control of other combining enterprises.The cost of combination is the aggregate of the fair values at the acquisition date of the assets given liabilities
incurred or assumed and equity securities issued by the acquirer in exchange for control of the acquiree the
intermediary expenses incurred by the acquirer in respect of auditing legal services valuation and consultancy
services and other associated administrative expense attributable to the business combination are charged to profit
or loss when they are incurred. The costs of issuing equity or debt securities as a part of the consideration for the
acquisition are included in the carrying amounts of these equity or debt securities upon initial recognition. The
contingent costs as a part of the consideration for the acquisition are included in the cost of combination on fair
values at the acquisition date and will be adjusted if any new situation incurred or further evidence provided in 12
months subsequent to acquisition date then the goodwill will be adjusted accordingly. The acquiree’s identifiable
assets liabilities and contingent liabilities acquired by the acquirer in a business combination that meet the
recognition criteria are measured at fair value at the acquisition date. Where the cost of combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets the difference is treated as an asset and
recognised as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets the acquirer firstly reassesses the measurement of the fair values of the
acquiree’s identifiable assets liabilities and contingent liabilities and measurement of the cost of combination. If
after that reassessment the cost of combination is still less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets the acquirer recognizes the remaining difference immediately in profit or loss for
the current period.The deductible temporary difference from the acquiree not recognized as deferred tax assets on the acquisition
date will be recognized as deferred tax assets if in 12 months subsequent to acquisition date there is new
information indicating that relative situation exists and the economic benefit associated with the deductible
temporary difference will flow to the Company the goodwill will be reduced accordingly. If the goodwill is less
than the deductible temporary difference the difference will be charged into profit or loss in current period.
For a business combination involving enterprise not under common control and achieved in stages it should make
judgement on whether those transactions are regard as “Package deal” based on “No. 5 Notice on Explanation on
Accounting Standards for Business Enterprises by the Ministry of Finance" (CAIKUAI [2012] No.19) and Article
51 of "Accounting Standards for Business Enterprises No. 33: Consolidated Financial Statement". If it is regarded
as “package deal” the accounting treatment refers to above-mentioned principle and “Long-term equityinvestment” in Note III 14; If it is not regarded as “package deal” the accounting treatment should be differentfor individual and consolidated financial statements.In individual financial statement the initial investment cost is the sum of the book value of equity investment held
before the acquisition date and the cost of new investment on acquisition date. When the stock equity held before
the acquisition date involving other consolidated incomes at the disposal date other consolidated incomes related
to this investment shall be subjected to accounting treatment (i.e. except the corresponding share accounted by
equity method in the change due to remeasurement and setting of net indebtedness or net assets of benefit plan
the remaining shall be transferred to the current investment income) on the same basis as that adopted by the
acquiree for the direct disposal of relevant assets or liabilities.In consolidated financial statement the share equity held before the acquisition date shall be measured again
according to the fair value of this share equity on the acquisition date the balance of the fair value and its book
value shall be counted in the current investment income; when the share equity held before the acquisition date
involving other consolidated incomes other consolidated incomes related shall be subjected to accounting
treatment (i.e. except the corresponding share accounted by equity method in the change due to remeasurement
and setting of net indebtedness or net assets of benefit plan the remaining shall be transferred to the current
investment income of the acquisition date) on the same basis as that adopted by the acquiree for the direct disposal
of relevant assets or liabilities.
6. Preparation on consolidation financial statements
(1) Preparation on consolidation financial statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period the
opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile for the subsidiaries increased
through the business combination under non-common control the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.When preparing the consolidated financial statement the necessary adjustment shall be made according to the
accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control the financial statement shall
be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances transactions and the unrealized profits of the company shall be offset in the preparation of
the consolidated financial statement.Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
shall be respectively as the minority equity and the minority interest income and individually listed under the
shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion from
the net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons
the remaining equity should be measured again according to the fair value on the control lost date. The difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely all the rest are
transferred into the current investment incomes with the exception of the changes caused by the net liabilities or
the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter the subsequentmeasurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business EnterprisesNo. 22 – Recognition and Measurement of Financial Instruments”. For the details please see Notes III 14
“Long-term Equity Investment” or Notes III 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at least.④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal each transaction shall be respectively conducted theaccounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investmentin Subsidiary without Control Lost” (please refer to 14 (2) ④ in Notes III) and “The Control on OriginalSubsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right
lost the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
7. Accounting treatment for classification and co-operation of joint arrangement
Joint arrangement is an arrangement whereby two or more parties have joint control. The Company classified the
joint arrangement into co-operation arrangement and joint venture according to the right and obligation involving
in the joint arrangement. Under co-operation the Company has joint control and rights to the relevant assets and
liability of the arrangement. Under joint venture the Company only has joint control and rights to the net assets of
the arrangement.The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies
stated in "Long-term Stock Ownership for Equity Method Calculation" in Note III 14 (2).Under co-operation the Company recognizes 1) its solely held of assets and liability 2) assets and liabilities
jointly owned based on share proportions 3) revenue from sales of assets jointly owned by the Company 4)
revenue from sales of assets based on share proportions 5) expense incurred by the Company 6) expense incurred
based on share proportions.When the Company invests sells or purchase assets (the asset does not constitute a business the same below) to
or from the co-operation the Company only recognizes the profit or loss belong to other joint parties before
selling those assets to third party. If those assets are impaired in compliance with Accounting Standards for
Business Enterprises No.8-Assets impairment the Company should recognize loss for all the invested or sold
assets to co-operation. For the assets purchased from co-operation the Company should recognize loss based on
share proportion.
8. Cash and cash equivalent
Cash and cash equivalents comprise cash on hand deposits that can be readily withdraw on demand and
short-term highly liquid investments that are readily convertible into known amounts of cash and are subject to an
insignificant risk of change in value.
9. Conversion method of foreign currency transactions
(1) Conversion method of foreign currency transactions
The foreign currency transactions are recorded on initial recognition in the functional currency by applying the
foreign currency amount by the spot exchange rate on the transaction dates while the foreign currency exchange
business or transactions relating to foreign currency exchange are recorded in the functional currency by applying
to the foreign currency amount at the actual exchange rate used.
(2) Conversion method of foreign currency monetary items and foreign currency non-monetary items
Foreign currency monetary items are convered using the spot exchange rate on the balance sheet date. The
exchange gains or losses arising from occurrence of transactions and exchange of currencies are recognized in
profit or loss for the period except that (1) exchange differences related to a specific-purpose borrowing
denominated in foreign currency that qualifies for capitalization are capitalized as part of the cost of the qualified
asset during the capitalization period; (2) exchange differences arising from changes in the carrying amounts of
available-for-sale monetary items are recognized as other comprehensive income.
Foreign currency non-monetary items measured at historical cost are converted to the amounts in functional
currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain
unchanged. Foreign currency non-monetary items measured at fair value are re-converted at the spot exchange
rate on the date the fair value is determined. Difference between the re-converted functional currency amount and
the original functional currency amount is treated as changes in fair value (including changes of exchange rate)
and is recognized in profit and loss or as other comprehensive income.
(3) Conversion of financial statements denominated in foreign currencies
As an accounting treatment in respect to a foreign operation if there are monetary items relating to the investment
to foreign operation the resulting conversion differences are recognized in other comprehensive income as
“conversion reserve”. The conversion differences accumulated in shareholders’ equity with respect to a foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed.
Assets and liabilities of foreign operation are converted to Renminbi at the spot exchange rate on the balance sheet
date. Equity items excluding retained earnings are converted to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are converted to Renminbi at the rates that
approximate the spot exchange rates at the transaction dates. The beginning balance of retained earnings is the
prior year ending balance of retained earning converted while the ending balance of retained earnings is sum total
of converted items of income statement. The resulting conversion differences are recognized in other
comprehensive income. The conversion differences accumulated in shareholders’ equity with respect to a foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed
Cash flow denominated in foreign currency and cash flow of foreign operation are converted to Renminbi at the
spot exchange rate at the transaction date. The effect of foreign exchange fluctuation is treated as recociling item
that is separately disclosed on cash flow statement.The beginning balance is present as same as converted balance of financial statement in prior year.The conversion differences accumulated in shareholders’ equity with respect to a foreign operation is transferred
to profit or loss in the period when the foreign operation is fully or partially disposed or lost control over the
foreign operation due to other causes.
Disposing investment in a foreign operation without losing control the conversion differences accumulated in
shareholder’s equity associated with the disposing part is transferred to minority stockholder’s interest. Disposing
investment in a foreign operation which is joint venture enterprise the conversion differences accumulated in
shareholder’s equity associated with the disposing part is transferred to profit or loss in the disposing period with
the disposing proportion.
10. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For
financial assets and financial liabilities at fair value through profit or loss transaction costs are recognized in
profit and loss for the current period. For other financial assets and financial liabilities transaction costs are
included in their initial recognized amounts.
(1) Fair value of financial assets and financial liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. If an active market exists for specific financial assets or
liabilities quoted prices in active markets for identical assets or liabilities are used as fair value. Quoted prices in
an active market refers to the prices which are readily available regularly in exchange markets brokers industry
associations and other pricing institutions and represents the prices at which the assets or liabilities are traded in
an arm length transaction in the marketplace. If an active market does not exist the Company uses valuation
model to determine the fair value. Valuation model takes into account quoted price for identical or similar assets
or liabilities between familiar and willing parties quoted price for similar assets or liabilities in an active market
discounted cash flow method and options pricing model.
(2) Classification Recognition and Measurement of Financial Assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On
initial recognition the Company's financial assets are classified into one of the four categories including financial
assets at fair value through profit or loss held-to-maturity investments loans and receivables and
available-for-sale financial assets.
① Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated
upon initial recognition as at fair value through profit or loss.A financial asset held for trading is the financial asset that meets one of the following conditions: A the financial
asset is acquired for the purpose of selling it in a short term; B. the financial asset is a part of a group of
identifiable financial instruments that are collectively managed and there is objective evidence indicating that the
enterprise recently manages this group for the purpose of short-term profits; C. the financial asset is a derivative
except for a derivative that is designated as effective hedging instrument or a financial guarantee contract or a
derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted
price from an active market) whose fair value cannot be reliably measured.The financial assets or financial liabilities meeting any of the following requirements can be designated on initial
recognition as financial assets or financial liabilities at fair value through profit or loss and of which the variation
is included in the current profits and losses: A. The designation is able to eliminate or obviously reduce the
discrepancies in the recognition or measurement of relevant gains or losses arising from the different basis of
measurement of the financial assets or financial liabilities; B. The official written documents on risk management
or investment strategies of the enterprise concerned have recorded that the combination of said financial assets
the combination of said financial liabilities or the combination of said financial assets and financial liabilities will
be managed and evaluated on the basis of their fair values and be reported to the key management personnel.
Financial assets at fair value through profit or loss are subsequently measured at fair value. The gains or
losses related to financial assets at fair value through profit or loss and dividend or interest income related to those
financial assets are recognized in profit or loss for the current period.②Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that an entity has the positive intention and ability to hold to maturity.Such kind of financial assets are subsequently measured at amortized cost using the effective interest method.Gains or losses arising from derecognition impairment or amortization are recognized in profit or loss for the
current period.The effective interest method is a method of calculating the amortized cost of a financial asset or a financial
liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest
expense over the relevant period using the effective interest rate. The effective interest rate is the rate that exactly
discounts estimated future cash flows through the expected life of the financial asset or financial liability or where
appropriate a shorter period to the net carrying amount of the financial asset or financial liability.When calculating the effective interest rate the Company estimates future cash flows considering all contractual
terms of the financial asset or financial liability (without considering future credit losses) and also considers all
fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate transaction costs and premiums or discounts etc.③ Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Financial assets classified as loans and receivables by the Company include notes receivable
accounts receivable interest receivable dividends receivable and other receivables.Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or
loss arising from derecognition impairment or amortization is recognized in profit or loss for the current period.
④ Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition
as available for sale and financial assets that are not classified as financial assets at fair value through profit or
loss loans and receivables or held-to-maturity investments.
Cost of available-for-sale investments in debt instruments are measured on the basis of the post-amortization cost
at period end which is the initially recognized amount of financial asset or financial liability deducting the already
paid principal plus or minus the accumulated amount of amortization incurred from amortizing the balance
between the initially recognized amount and the amount of the maturity date by adopting the actual interest rate
method and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments in
equity instruments is the initially recognized amount at acquisition.
Available-for-sale financial assets are subsequently measured at fair value and gains or losses arising from
changes in the fair value are recognized as other comprehensive income and included in the capital reserve except
that impairment losses and exchange differences related to amortized cost of financial assets are recognized in
profit or loss until the financial assets are derecognized at which time the gains or losses are released and
recognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured and derivative financial assets that are linked to and
must be settled by delivery of such unquoted equity instruments are subsequently measured at cost.Interests obtained and the dividends declared by the investee during the period in which the available-for-sale
financial assets are held are recognized in investment income.Impairment of Available-for-sale financial assets
If all the related information considered indicates that the decline in fair value of available-for-sale financial assets
is significant or non-temporary decline impairment incurred for available-for-sale financial assets. Significant
decline refers to accumulated decline in fair value exceed 20%; non-temporary decline refers to continuous
decline in fair value more than 12 months.When an available-for-sale financial asset is impaired the cumulative loss arising from decline in fair value
previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The
amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the
acquisition cost (net of any principal repayment and amortization) and the current fair value less any impairment
loss on that financial asset previously recognized in profit or loss.If subsequent to the recognition of an impairment loss on available-for-sale financial assets there is objective
evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after
the impairment is recognized the previously recognized impairment loss is reversed. The amount of reversal of
impairment loss on available-for-sale equity instruments is recognized as other comprehensive income while the
amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in
an active market) whose fair value cannot be reliably measured or on a derivative financial asset that is linked to
and must be settled by delivery of such an unquoted equity instrument the impairment loss on such financial asset
is not reversed once it is recognized.
(3) Transfer and measurement of financial assets
The Company derecognizes a financial asset only when: ① the contractual rights to the cash flows from the
financial asset expire; or ② it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity; or ③ it transfers the financial asset neither transfers nor retains
substantially all the risks and rewards of ownership but has not retained control over the financial assets.If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset and retains its control of the financial asset it recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognized an associated liability. The extent of the enterprise's
continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the
transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria the difference between (1)
the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the
transfer and any cumulative gain or loss that has been recognized in other comprehensive income is recognized in
profit or loss.If the transfer of partial financial asset satisfies the derecognition criteria the entire book value of the transferred
financial asset shall between the portion whose recognition has been stopped and the portion whose recognition
has not been stopped be apportioned according to their respective relative fair value and the difference between
the amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The book
value of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whose
recognition has been stopped and the portion of the accumulative amount of the changes in the fair value
originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped.In terms of financial assets sold with recourse or financial assets transferred by endorsement the Company shall
determine whether substantially all the risks and rewards of ownership of the financial asset are transferred.Where an enterprise has transferred substantially all of the risks and rewards related to the ownership of the
financial asset to the transferee it shall stop recognizing the financial asset. If it retained substantially all of the
risks and rewards related to the ownership of the financial asset it shall not stop recognizing the financial asset. If
the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset
the Company shall determine whether it retains the control of the financial assets and account the financial assets
in accordance with the Standards mentioned above.
(3) Classification and Measurement of Financial Liability
On initial recognition financial liabilities are classified as either financial liabilities at 'fair value through profit or
loss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at their
fair values. For the financial liabilities at fair value through profit or loss the transaction expenses thereof shall be
directly recorded into the profit or loss of the current period; for other financial liabilities the transaction expenses
thereof shall be included into the initially recognized amount.
① Financial liabilities at fair value through profit or loss
The transactional financial liabilities and designated financial liabilities at fair value through profit or loss are
classified under the same criteria as the transactional financial assets and designated financial assets at fair value
through profit or loss.On subsequent measurement of financial liabilities at fair value through profit or loss gain or loss arising from
changes in fair value and dividends and interests related to the financial liabilities are recognized in the profit or
loss of the current period.② Other Financial Liability
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument
(without a quoted price in an active market) whose fair value cannot be reliably measured it is subsequently
measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method with gain or loss arising from derecognition or amortization recognized in profit or loss.
(5) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part
of it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replace
the original financial liability with a new financial liability with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.When the Company derecognizes a financial liability or a part of it it recognizes the difference between the
carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid
(including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
(6) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities and intends either to settle on a net basis or to realize the financial asset and settle the
financial liability simultaneously financial assets and financial liabilities are offset with the net amounts presented
on the balance sheet. Otherwise financial assets and financial liabilities are separately presented on the balance
sheet without offsetting.
(7) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments issued (including refinanced) repurchased sold or cancelled by the
Company are treated as changes in equity. Changes in the fair value of equity instruments are not recognized.
Transaction costs related to equity transactions are deducted from equity.
Distributions to holders of equity instruments by the Company (excluding dividends) reduce shareholders’ equity.
The Company does not recognize changes in fair value of equity instruments.
11. Account receivable
The receivables include accounts receivable and others etc.
（1） Provision for bad debts of account receivable that are individually significant
The judgment basis for significant single-item amount or
standard for significant amount
The accounts receivable with single-item amount of RMB 5
million and above
The method of separate provision for bad debts of the accounts
receivable with significant single-item amount
Impairment test shall be separately conducted. If the test proves
the occurrence of impairment impairment loss shall be
determined and provision for bad debts shall be made according
to the difference between the present value of its future cash flow
and its book value. For the accounts receivable whose
impairment is not proved by separate test such accounts
receivable together with those with insignificant single-item
amount are divided into some groups based on similar
characteristics of credit risks. For these groups of accounts
receivable provision for bad debts shall be made according to
the regulation mentioned in "(2) provision for bad debts shall be
made for accounts receivable on group basis".
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
Other Group Other method
In Group Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
During the credit period 0.00% 0.00%
The credit period within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 70.00% 70.00%
Over 5 years 100.00% 100.00%
In Group adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group adopting other method for bad debt provision：
√ Applicable □ Not applicable
Name Account receivable proportion Other account receivable proportion
Related party group 0.00% 0.00%
Security deposit 0.00% 0.00%
Deposit 0.00% 0.00%
Petty cash 0.00% 0.00%
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis
Reason for separate provision for bad debts
The accounts receivable with single-item amount of less than
RMB 5 million whose risk characteristics can’t be reflected by
provision for bad debts on basis of group.Method of provision for bad debts
Provision for bad debts is made according to the difference
between the present value of its future cash flow and its book
value.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials works in process finished products circulation
materials low-value consumption goods packing materials supplies purchasing engineering construction
development costetc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be
measured by their actual cost when they are obtained. Raw materials works in process finished products etc.shall be measured with the weighted average method when they are being sent out. Low-value consumption goods
shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials
shall be recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period this enterprise shall
make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price less the estimated costs
of completion the estimated selling costs and related tax payments.
13.Asset-held for sale
The Company will retrieve its book value by means of selling assets (including the exchange of commercial
non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group and when meeting
two of the following conditions the book value will be divided into on-sales category: (1) When a certain
non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with
the convention assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment
predicting that selling will be completed within one year.( The selling which can only be sold after acquiring
approval from relevant authorities or supervision departments according to relevant provision requirement has
acquired its approval ).The Company will be specifically for dividing the non-current assets or disposal group which are acquired from
reselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated condition
that the predicted selling will be completed within one year and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.When the non-monetary assets and disposal group were measured by the Company at the beginning or
remeasured and divided into on-sales category on balance sheet date if its book value is higher than the net
amount after fair value deducts selling expense the book value will be written down to the net amount after fair
value deducts selling expense and the written-down amount will be confirmed as assets impairment losses and
counted into the current profits and losses and the impairment provision with on-sales assets will be withdrawn
in the meanwhile. For the on-sales disposal group’s confirmed amount of loss of asset impairment the book value
of goodwill will be deducted first and its book value will then be deducted proportionally according to the book
value’s percentages of all non-current assets in the disposal group which can be adopted by the measurement
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets Disposal
Groups and Operation Termination
If any increment occurs in the net amount after the on-sales non-current assets on the subsequent balance
sheet date deducts selling expense the amount deducted previously will be recovered and will be transferred back
within the amount of asset impairment losses confirmed after being divided into on-sales category and the amount
transferred back will be counted into the current profits and losses. There will be no restitution for asset
impairment losses confirmed before being divided into on-sales category. The amount deducted previously of
on-sales disposal group shall be recovered and when after being divided into on-sales category it will be
transferred back within the amount of impairment confirmed by non-current assets by the means of the measure
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets Disposal
Groups and Operation Termination and the amount transferred back will be counted into the current profits and
losses. There will be no restitution for the book value of goodwill which has been deducted and for asset
impairment losses confirmed before being divided into on-sales category which can be adopted by the measure
stipulation of this principle.No depreciation and amortization will be made in the non-current assets which are on sales or in the disposal
group. Confirmation will continue to be made in the debt interest in on-sales disposal group as well as other
expenses.When the non-current assets or the disposal group can not meet the conditions of dividing into on-sales
category the Company will not continue to divide it into on-sales category or remove the non-current assets from
the on-sales disposal group and the valuation will be made according to the lower one between two of followings:
(1)Book value before being divided into on-sales category and the amount of money after being under the
situation where book value is supposed not to be divided into on-sales category and adjustment is made in
depreciation amortization or impairment which should have been confirmed. （2）Recoverable amount.When derecognizing the on-sales non-current assets or disposal group the Company will count the gains and
losses which are yet to be confirmed into the current profits and losses.
14.Long-term Equity Investment
Long-term equity investments refer to all investments that are the Company with control of joint control of or
significant influence over an investee. The Company accounted investments that are the Company without
control of joint control of or significant influence over an investee as financial assets available-for-sale or
financial assets at fair value through profit or loss. Please refer to Note III 10 “Financial instruments” for detail.Joint control refers to the contractually agreed sharing of control of an arrangement which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant
influence refers to the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies.
(1) Initial measurement
For business combination under common control if the consideration of the merging enterprise is that it makes
payment in cash transfers non-cash assets or bear its debts it shall on the date of combination regard the share of
the book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equity
investment. The difference between the initial cost of the long-term equity investment and the payment in cash
non-cash assets transferred as well as the book value of the debts borne by the merging party shall offset against
the capital reserve. If the capital reserve is in sufficient to dilute the retained earnings shall be adjusted. If the
consideration of the merging enterprise is that it issues equity securities it shall on the date of combination
regard the share of the book value of the stockholder's equity of the merged enterprise as the initial cost of the
long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock while
the difference between the initial cost of the long-term equity investment and total face value of the shares issued
shall offset against the capital reserve. If the capital reserve is insufficient to dilute the retained earnings shall be
adjusted. Business combination under common control achieved in stages by several transactions shall determine
whether the transactions belong to one package. If the transactions belong to one package the Company
accounted these transactions as one transaction with control of the investee. If the transactions do not belong to
one package on the date of combination the Company shall regard the share of the book value of the owner's
equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the
initial cost of the long-term equity investment and the sum of book value of long-term equity investments prior to
the combination and the book value of consideration paid at the date of combination in order to achieve control of
the investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute the retained
earnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arising
from equity investment under equity method before the combination date or recognized with available-for-sale
financial assets.For business combination under different control the Company accounts initial cost of long-term equity
investment as combination costs on the acquisition date. Combination costs refer to the fair values on the
acquisition date of the assets paid the liabilities incurred or assumed and the equity securities issued by the
acquirer. Business combination under different control achieved in stages by several transactions shall determine
whether the transactions belong to one package. If the transactions belong to one package the Company accounts
these transactions as one transaction with control of joint control of significant influence over the investee. If the
transactions do not belong to one package the initial cost of long-term equity shall be accounted under cost
method and recognized amount shall be the sum of book value of long-term equity investment before acquisition
and cost of additional investment. For equity investments previously accounted under equity method other
comprehensive income related to these investments does not change. For equity investments previously accounted
as financial assets available for sale difference between fair value and book value and accumulated changes in
fair value originally recorded in other comprehensive income shall be transferred to profit or loss of current
period.The direct cost for the business combination of the combining party shall including the expenses for audit
assessment and legal services be recorded into the profits and losses at the current period.
Besides the long-term equity investments formed by business combination the initial cost of a long-term equity
investment obtained by other means shall be initially recognized at cost.The cost shall be ascertained in
accordance with the provisions as follows: (a) The initial cost of a long-term equity investment obtained by
making payment in cash shall be the purchase cost which is actually paid; (b) The initial cost of a long-term equity
investment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued;
(c) The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement; (d) The initial cost of a long-term investment obtained by the exchange of non-monetary
assets shall be the fair value or book value of transferred assets. (e) The initial cost of a long-term investment shall
be the fair value of the long-term investment; etc. The initial cost also consists of the expenses directly relevant to
the obtainment of the long term equity investment taxes and other necessary expenses. Long-term equity
investment which due to additional investment can exercise significant influence over joint control of but not
control of the investees shall recognize its cost as the sum of fair value of long-term equity investment before
additional investment and cost of additional investment according to Accounting Standard for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Subsequent Measurement and Recognition Method
Long-term equity investments which are the Company with joint control of (excluding joint operation) significant
influence over the investees shall be accounted under equity method. Besides long-term equity investments which
are the Company with control of the investees shall be accounted under cost method.
(1)A long-term equity investment accounted under cost method
Under the cost method long-term equity investment is measured at initial cost additional investments or
disinvestments shall make an adjustment to the cost of long-term equity investment. The investment income
recognized by the Company shall be limited to the dividends or profits declared to distribute by the invested entity
except dividends or profits declared in the consideration paid to acquire the investees.
(2) A long-term equity investment accounted under the equity method.
Under the equity method where the initial investment cost of a long-term equity investment exceeds the
Company’s share of the fair value of the investee’s identifiable net assets at the time of acquisition no adjustment
is made to the initial investment cost. Where the initial investment cost is less than the Company’s share of the fair
value of the investee’s identifiable net assets at the time of acquisition the difference is recognized in profit or
loss for the period and the cost of the long-term equity investment is adjusted accordingly.Under the equity method the Company recognizes its share of the net profit or loss and other comprehensive
income made by the investee as investment income and other comprehensive income respectively and adjust the
carrying amount of the long-term equity investment accordingly; The carrying amount of the investment is
reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to
the Company; the share of changes in owners' equity of the investee other than those arising from net profit or loss
other comprehensive income and profit distribution are recognized in the capital reserve the carrying amount of
the long-term equity investment is adjusted accordingly. The Company recognizes its share of the investee's net
profit or loss after making appropriate adjustments based on the fair value of the investee’s individual separately
identifiable assets etc. at the acquisition date. Where the accounting policies and accounting period adopted by
the investee are not consistent with those of the Company the Company shall adjust the financial statements of
the investee to conform to its own accounting policies and accounting period and recognize investment income
and other comprehensive income based on the adjusted financial statements. For the Company's transactions with
its associates and joint ventures where assets contributed or sold does not constitute a business unrealized
intra-group profits or losses are recognized as investment income or loss to the extent that those attributable to the
Company's proportionate share of interest are eliminated. However unrealized losses resulting from the
Company's transactions with its associates and joint ventures which represent impairment losses on the transferred
assets are not eliminated. When the assets invested by the Company to associates or joint ventures constitute an
operation and the investors thereafter own long-term equity investment without control of the Company fair
value of the operation invested shall be accounted as cost of additional long-term equity investments and
difference between initial recognized cost of additional long-term equity investments and its book value shall be
accounted in the profit or loss of current period. When the assets sold by the Company to associates or joint
ventures constitute an operation the difference between consideration paid and book value of the operation shall
be recorded in profit or loss of current period. When the assets bought by the Company from associates or joint
ventures constitute an operation gain or loss related shall be recognized according to Accounting Standard for
Business Enterprises No.20-Business Combination.
The Company discontinues recognizing its share of net losses of the investee after the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of its net investment
in the investee is reduced to zero. If the Company has incurred obligations to assume additional losses of the
investee a provision is recognized according to the expected obligation and recorded as investment loss for the
period. Where net profits are subsequently made by the investee the Company resumes recognizing its share of
those profits only after its share of the profits exceeds the share of losses previously not recognized.
(3) Acquisition of non-controlling shares
When preparing consolidated financial statements differences between additional long-term equity
investments due to acquisition of non-controlling shares and attributable share of invested entity’s identifiable net
assets accumulated since acquisition date (or consolidation date) at shareholding ratio after acquisition shall
adjust capital reserve. If the capital reserve is insufficient to dilute the retained earnings shall be adjusted.
(4) Disposal of long-term equity investments
In consolidated financial statements when parent company partially disposes long-term equity investments
in subsidiaries without losing control the difference between proceeds received and attributable share of invested
entity’s identifiable net assets related to such investments sold shall be recorded in shareholder’s equity; when
parent company partially disposes long-term equity investments in subsidiaries with control lost adjustments shall
be made in accordance to Note III 6 (2).Under other circumstances for disposal of long-term equity investment the Company shall derecognize such
investment and recognize in profit or loss the difference between the proceeds received and the carrying amount
of the investment in the associates and joint ventures.In terms of long-term equity investments accounted under equity method the accounting method after
disposal shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income in relation to that investment on the same basis as would have been required if the investee
had directly disposed of the related assets or liabilities. The Company shall also reclassify to current period profit
or loss the proportion of changes in shareholders’ equity that had previously been recognized excluding changes
arising from net gain or loss other comprehensive income profit or loss.In terms of long-term equity investments accounted under cost method the accounting method after disposal
shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income arising from according equity method or recognition and measurement standard of
financial instruments before control of investees in relation to that investment on the same basis as would have
been required if the investee had directly disposed of the related assets or liabilities. The amount in other
comprehensive income shall be transferred to current period profit or loss proportionately.When the Company loses control over an investee due to partial disposal of its shares during preparation of
individual financial statements if the Company with retained shares after disposal can still joint control or
influence over the investee the Company shall account for the investment under equity method and retained
shares shall be adjusted as would have been required if the retained shares had been recorded on initial recognition
under equity method; if the Company with retained shares after disposal cannot joint control or influence over
the investee the Company shall account for the investment under the recognition and measurement standard of
financial instruments and recognize in profit or loss difference between the fair value of any retained shares and
carrying amount of the investment at the date of control lost. The Company shall account for amount previously
recognized in other comprehensive income arising from according equity method or recognition and
measurement standard of financial instruments before control of investee in relation to that investment on the
same basis as would have been required if the investee had directly disposed of the related assets or liabilities. If
equity method is used before control the Company shall also reclassify to current period profit or loss changes in
shareholders’ equity that had previously been recognized excluding changes arising from net gain or loss other
comprehensive income profit or loss. If retained shares are accounted under equity method other comprehensive
income and changes in shareholders’ equity shall be transferred to current period profit or loss proportionally; if
retained shares are accounted under cost method other comprehensive income and changes in shareholders’
equity shall be transferred to current period profit or loss at once.When the Company ceases to joint control or influence over investee due to partial disposal of its shares
retained shares shall be accounted for under recognition and measurement standard of financial instruments and
difference between fair value and carrying amount shall be recorded in current period profit or loss. The Company
shall account for amount previously recognized in other comprehensive income arising from equity method in
relation to that investment on the same basis as would have been required if the investee had directly disposed of
the related assets or liabilities. The Company shall also reclassify to current period profit or loss the proportion of
changes in shareholders’ equity that had previously been recognized excluding changes arising from net gain or
loss other comprehensive income profit or loss.When the Company ceases to control an investee due to partially dispose its shares by stages if transactions
belong to one package each transaction shall be accounted for as one event which lead to control cease. Prior to
control lost the difference between proceeds received and carrying amount of investment sold shall be recorded in
other comprehensive income first and transferred to current period profit or loss when control lost.
15. Investment real estate
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property refers to the properties held for the purpose of generating rent and/or capital appreciation. The company’s
investment property includes the land use right rented and the constructions leased.The Company makes initial measurement at the costs that the properties is acquired and records as part of the
property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while
other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in
accordance with the relevant regulations for fixed assets or intangible assets.
16. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to
others or for administrative purposes and have useful lives of more than one accounting year.
A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to
the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation methods
Type Detail
Estimated useful
Life
Estimated residual value
rate
Depreciation rate(%)
House and Building Straight-line method
Over the period of title
(the period specified on
the real estate title
certificate or land use
right certificate) or 30
years in case of no period
5 3.17
of title
Kiln Straight-line method 5 5 19
Platinum passage Straight-line method 3 95.50 1.5
Glass flat-panel and other
equipment
Straight-line method 15 5 6.33
other equipment Straight-line method 10 5 9.5
Transportation
equipment
Straight-line method 5 5 19
Temporary equipment Straight-line method
According to the length
of the project
0
Testing quality
inspection office
equipment tools and
other tool
Straight-line method 5 5 19
The platinum channel is mainly made up of precious metals such as platinum and rhodium which almost has
no losses. Hence the channel has a higher rate of net residual value.Thereinto the fixed asset whose asset impairment provision has been withdrawn should also have its
accumulated amount deducted to count and confirm the depreciation rate.When the year of the fixed asset comes to an end the Company will review its service life net residual value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one adjustment will be made for the estimated
one.
（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise the Company chooses the shorter of the lease
period and the remaining useful life to depreciate the assets.When the year of the fixed asset comes to an end the Company will review its service life net residual value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one adjustment will be made for the estimated
one.
(4)Charge for Major Overhaul
The Company conducts regular checking on major overhaul fee incurred in the fixed asset and any parts of
the fee that have unambiguous evidence to indicate they conform with the condition for confirming fixed asset
will be counted into the fixed asset costs otherwise into the profit and loss of the current period. During the
interval period of regular major overhaul the fixed asset will be depreciated as before.. Construction in progress
The costs of construction in progress include all necessary project expenditures the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
18. Borrowing expenses
Borrowing costs include interest expenses amortization of discount or premium auxiliary expenses
exchange differences arising from foreign currency borrowings etc. Borrowing costs directly attributable to the
acquisition construction or production of qualifying asset are capitalized when expenditures for such asset and
borrowing costs are incurred and activities relating to the acquisition construction or production of the asset that
are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired constructed or produced becomes ready for its intended use or
sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing the amount of the capitalized interest is the
actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the
borrowed funds before being used on the asset or any investment income on the temporary investment of those
funds. Where funds are borrowed under general-purpose borrowings the Company determines the amount of
interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the
excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During the capitalization period exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying
asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognized as a financial expense when incurred.The qualifying assets to be capitalized are fixed assets investment properties and inventories which need to
be acquired constructed or produced through a long period of time in order to become ready for its intended use
or sale.If general borrowings are used to purchase construct or produce the capitalization eligible assets the
borrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the
special borrowings times the capitalization rate of the used general borrowings which is determined by the
weighted average interest rate of the general borrowings.
19.Biological Assets
20.Oil & Gas assets
21.Intangible assets
1. Valuation Method Service Life and Impairment Test of Intangible Assets
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life from the time the assets are available for
use the Company adopts the amortization method that reflects realization of the expected economic benefits or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future the Company
records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is
feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product
generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used
internally it can be proven that it is useful; with necessary technical and financial resources and other resources to
complete the development of the intangible assets and the intangible assets can be used or sold; the development
expense can be reliably measured. If not the development expense is accounted into the current gain/loss account.If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study
the project will enter the development stage.. Impairment of the long-term assets
Fixed assets construction in progress intangible assets with finite useful lives investment properties measured
using the cost model and long-term equity investments in subsidiaries joint ventures and associates are tested for
impairment if there is any indication that an asset may be impaired at the balance date. If there is an indication that
the asset may be impaired the Company shall estimate the recoverable amount and perform impairment test.Goodwill intangible assets with indefinite useful life and intangible assets not available for use shall be tested
each year no matter whether there is an indication that the asset may be impaired.If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying
amount a provision for impairment and an impairment loss are recognized for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell and the present value of the future cash flows expected to be derived from the asset. Fair value shall
be determined as the price as stipulated in the sales agreement in the orderly transaction. Where there is no sales
agreement but there is an active market of assets fair value shall be determined as the quoted price in active
market for identical assets or liabilities. Where there is no sales agreement and no active market of assets fair
value shall be estimated according to the best information available. The disposal expenses shall include the
relevant legal expenses relevant taxes truckage as well as the direct expenses for bringing the assets into a
marketable state. The present value of the expected future cash flow of an asset shall be determined by the
discounted cash with an appropriate discount rate on the basis of the expected future cash flow generated during
the continuous use or final disposal of an asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.Goodwill that is separately presented in the financial statements is tested at least annually for impairment
irrespective of whether there is any indication that it may be impaired. In conducting the test the carrying value of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the
synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset
group or group of asset groups including the goodwill allocated is lower than its carrying amount the
corresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount of
goodwill that is allocated to the asset group or group of asset groups and then deducted from the carrying
amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts of
other assets.Once the above asset impairment loss is recognized it will not be reversed for the value recovered in the
subsequent periods.
23.Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods the remaining will be recorded
Employees’ Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation post-employment benefits demission benefits and
other long-term employee benefits as well as the benefits the Company provides to employees’ spouses children
dependents deceased employees’ family and other beneficiaries.The Company classifies into short-term compensation the employee remuneration that needs to be paid off
entirely in the twelve months following the reporting year the employees have provided their services which
excludes those given for employment termination. Short-term compensation includes payroll bonus allowances
and subsidies employee welfare social security expenses including medical insurance injury insurance and birth
insurance housing fund labor union and employee training expenditures short-term paid leaves short-term profit
share plans non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-term
compensation incurred during the accounting period that the employees provide their services and records in
current profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefits
Post-employment benefits are mainly defined contribution plans which include basic pension unemployment
insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss
when incurred.
(3) Accounting methods for demission benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourage
employees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation
post-employment benefits and demission benefits. They are long-term paid leaves long-term benefits for the
disabled long-term profit sharing plans etc.
25. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities the compensation can be recognized separately as assets only when the Company is sure to
receive it. The amount to recognize cannot exceed the book value of the recognized liabilities. Share-based Payment
(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for e.g. options the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for the
options pricing model is adopted to determine the fair value.
(3) Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
27.Preferred shares perpetual capital securities and other financial instruments
28.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Income is an enterprise formed in daily activities will lead to an increase in shareholders' equity the total inflow
of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco
me including revenue from selling goods income of labor transferring assets use right and
Construction contract income.
(1) Merchandise sales
The merchandises will be transferred to the purchaser when they meet with both the major risk and reward of
the merchandise ownership; The Company will no longer keep the continuous management right which is usually
related to the ownership and no longer carry out valid control on the merchandises sold; The amount of income
can be reliably calculated; Relevant economic interest can inflow; Relevant costs incurred or about to incur can be
reliably calculated to confirm the realization of the income of merchandise sales.Specific methods for revenue recognition: Companies which are engaged in photoelectric display materials
graphene and electronic communication products according to the stipulations in the sales contract will have
their revenue recognized after the goods have been delivered to clients and checked and accepted by clients;
Those which are engaged in passenger car business according to the agreement Confirm the sales revenue when
the goods are delivered to the customer and invoiced according to the contract.; Those which are engaged in
export sales business will have their revenue recognized when receiving the export certificate(customs
declaration).
(2) Services
Service transaction can be estimated reliably meaning the following conditions are satisfied: amount of revenue c
an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra
nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured
For the services that start and end during the same accounting year the revenue shall be recognized upon
completion; if the services end in a different accounting year and the service transaction results can be measured
reliably the Company adopts the completion percentage method to recognize the revenue on balance sheet dates;
if not measurable reliably the Company recognizes the revenue at the amount of the service costs that are incurred
and can be compensated expectedly; otherwise the service costs incurred are recognized as current expenses.The Company adopts the following methods to determine the completion progress of service transactions:
①measurement of the completed jobs; ②the proportion of the completed services to all; ③the proportion of the
costs incurred to the total.The company provides services at the balance sheet date the transaction can not be reliably estimated it shall be t
reated as follows: the costs incurred are expected to be compensated according to the amount of labor costs that h
ave occurred service revenue is recognized and the same amount knot turn labor costs; the costs incurred are not e
xpected to be compensated labor costs should be recognized in profit or loss has occurred no service revenue is r
ecognized.
Contract or agreement entered into with other companies including the sale of goods when providing services the
sale of goods and rendering of services can be measured in part to distinguish and separate should be part of the s
ale of goods as sale of goods the provision of services and as part of the provision of services deal with. Sales of
goods and rendering of services can not be distinguished or can be distinguished but can not be measured separat
ely should be part of the sale of goods and provision of services as part of the total sales of goods.If property management has provided service economic interest related to property management service is
able to flow into the enterprise and costs related to the property management service can be reliably calculated
the realization of property management income will be confirmed.
(3) Use Rights of Assets on Alienation
The right of using transferred asset includes lease earning intermediate business income interest income and
usage fee income.When the right of use the transferred asset can at the same time conform with the condition that relevant
interest income is likely to inflow and the income amount can be reliably calculated the income of the right of use
the transferred asset can be confirmed. The interest income will be counted and confirmed according to the time
and actual interest rate of the enterprise’s monetary capital used by others; The charge for use will be counted and
confirmed according to charging time and method stipulated in the relevant contracts or agreements.
（4） Construction Contracts
Under the situation where the result of contract forming can be reliably estimated the contract income and
contract costs will be confirmed by the contract’s completion percentage on the balance sheet date. The contract’s
completion percentage will be confirmed by the proportion that the accumulated contract costs actually incurred
occupies the predicted total contract cost
That the result of construction contract can be reliably estimated refers to that the following can be conformed
with at the same time: 1)The total income of contract can be reliably calculated; 2)The economic interest related
to the contract has major possibility to flow into the enterprise; 3)The contract costs actually incurred can be
clearly distinguished and reliably calculated; 4)The completion progress of contract and the costs which still needs
to incurred for completing the contract can be reliably confirmed.If the result of construction contract can not be reliably estimated while its costs can be recoverable the contract
income will be confirmed according to the actual contract costs which can be recoverable and the contract costs
will be confirmed the contract fee at its current period; The contract costs which can not be recoverable will be
confirmed as not the cost income but the cost fee when the recovery incurs.If the uncertainties that result construction contract to be not reliably estimated no longer exist the income and fee
related to the construction contract will be confirmed according to the completion percentage.If the predicted total contract cost is more than the total contract income the predicted loss be will confirmed as
the current fee.The accumulated cost of the construction contract which has incurred the accumulated gross profit (loss) has been
confirmed and the payment amount which has been settled will be presented as the net amount after offset in the
balance sheet. The part that the sum of the accumulated cost incurred and the accumulated gross profit (loss)
confirmed more than the payment amount settled will be presented as the one which has been completed but yet to
be settled.The part where the sum that the payment amount settled of the construction contract is more than the
accumulated cost incurred and the accumulated gross profit (loss) confirmed will be presented as the one which
has been settled but yet to be completed.
29.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
Government subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from the
government not including the capital into which the government invests as a investor who has relevant ownership
interest. Government subsidies are divided into the subsidy related to assets and the other related to earnings.Government subsidies related to monetary assets will be measured according to the amount received or the
amount receivable. Those which related to non-monetary assets will be measured according to fair value; For any
fair value which can not be reliable to be obtained the assets will be measured according to the nominal amount
and the one measured according to the nominal amount will be directly counted into the current profits and losses.The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss
by stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the
pertinent assets are sold transferred scrapped or destroyed before the end of their useful life the non-allocated
pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal and the
recognized government grant needs to be refunded then it shall write down the carrying amount of the relevant
deferred income and the excess part shall be included in the current profit and loss.. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government grants pertinent to income that are used to compensate the relevant costs or losses of the
subsequent period of the enterprise are recognized as deferred income and are credited to the current profit or loss
for the period when the relevant costs expenses or losses are recognized; those government grants used for
compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits
and losses.
For the government subsidy which includes both the assets related part and the income related part the different
parts are treated separately; if it is difficult to distinguish the whole is classified as the government subsidy related
to the income.Government subsidies related to the daily activities of the company shall be included in other earnings in
accordance with the substance of the economic business. Government subsidies not related to the daily activities
of the company shall be included in the non-operating income and expenditure.
30. Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.Taxable temporary differences related to the initial recognition of goodwill as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation nor affects the accounting profit
and taxable income (or deductible loss) when it happens the relevant deferred income tax liabilities shall not be
recognized. In addition as for taxable temporary differences associated with investments in subsidiaries
associates and joint ventures if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation nor affects the accounting profit and taxable income (or deductible
loss) when it happens the relevant deferred income tax assets shall not be recognized. In addition as for
deductible temporary differences associated with investments in subsidiaries associates and joint ventures if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income the relevant deferred income tax liabilities shall not be
recognized. Apart from the above-mentioned exceptional cases the Company recognizes other deferred income
tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that
can be used to deduct the deductible temporary differences of the taxable income.The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
31.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a
finance lease. Other forms of lease besides financial leasing are considered as operating leasing.Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
32. Other significant accounting policies and estimates
（1）Discontinued Operation
Discontinued operation means enterprises which can meet one of the following conditions and can be
distinguished into a constituent part separately and this part has been disposed or divided into a on-sales category.②This part is a one of the related parts which proposes to dispose an independent main business or an
independent main business area.③This part is a subsidiary acquired from being specifically for reselling.
For accounting treatment methods for discontinued operation see the relevant descriptions at Article 13-
Possession of On-Sales Asset in Note III
(2) Share Repurchase
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the
stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to
submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the
unlocking the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the
repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the
unlocking period the restricted stock with the unlocking application qualification in the current period cannot be
unlocked and shall be logged out after the repurchase by the Company.Upon the legal procedures and reporting approval and through repurchasing the Company’s stocks the
Company’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part of
price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offset
the capital reserve (share premium) earned surplus and undistributed profits in sequence; The part of price paid to
stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital
reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other
1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written in
current profit and loss except those for reputation adjustment in enterprise combination or trades directly counted
into shareholder’s equity or some deferred income tax which is counted in shareholder’s equity.
Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amount
is calculated by adjusting pre-tax accounting profit specified in related tax laws.The company confirms deferred income tax by adopting liability method in Balance Sheet based on the
temporary difference between book value of asset and liability in Balance Sheet and tax base.Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities
except the temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade
is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it
happens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries joint
enterprises and associated enterprises. The temporary difference return time may be controlled and may not return
in foreseeable future.On the date of balance sheet the company will calculate deferred income tax assets and deferred income tax
liabilities according to applicable tax between expected recovered assets and paid liabilities and also the company
will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of
balance sheet.On the date of balance sheet the company will check the book value of the deferred income tax assets. If it
was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets while it was
likely to obtain sufficient taxable income carrying amount of deferred income tax assets shall be written down.
2. Safety production expenses
The company counts and draws safety production expenses specified in Notification on Printing and
Distributing and Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issued
by Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized in
improving safe production.Safety production expense is counted into related product’s cost or current profit and loss. At the same time
it is also counted into specialized reserve. In case the safety production expense to be delivered is used in expense
we directly consume specialized reserve. In case safety production expense to be delivered belongs to fixed asset
and is spent in construction in-process confirm it as fixed asset when the project is completed safely and is ready
to put into use. Meantime consume specialized reserve as the cost forming into fixed asset and confirm it as
equivalent accumulated depreciation.
3. Judgement and Estimation for Significant Accounting
During the process of applying accounting policies due to to inherent uncertainties in business activities the
Company requires judgement estimation and assumption for the book value of the report items which can not be
measured accurately. Such judgement estimation and assumption is made basing on the previous experience of
the Company’s management as well as the consideration of other relevant factors. And the reported amount of
revenue cost and asset as well as the disclosure of balance sheet date and the liability will be influenced by such
judgement estimation and assumption; However there may be differences between the actual result caused by the
uncertainties of such estimation and the current estimation of the Company’s management thereby significant
adjustment will be made for the assets influenced in the coming future and the indebted book value.The Company will periodically recheck the above-mentioned judgement estimation and assumption based
on going concern. The changes of accounting estimation only influence those which are influenced at the current
period and of which the influence number will be confirmed at that current period; For those changes which have
influence both at the current period and the future period the influence number of them will be confirmed at that
current period and the future period.On balance sheet date the significant fields where the Company needs to make judgement estimation and
assumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction Contract
When the result of construction contract can be estimated reliably the Company will confirm the contract revenue
on balance sheet date by adopting Percentage of Completion Method. The percentage of completion will be
confirmed according to Article 26-Revenue Recognition Principle in Note III and it will be totalized in each
accounting year of executing this contribution contract.Significant judgement needs to be made when confirming the percentage of completion the contract cost occurred
the total predicted revenue of the contract and total cost of the contract as well as the recoverability of the
contract. The project management will make judgement mainly by means of previous experience and work. The
total predicted revenue and total cost of the contract as well as the estimation changes of contract execution result
will probably have effect on the operation revenue the operation cost at the current changing period or at the
subsequent period as well as the profits and losses during that period and significant influence is likely to be
formed due to the above-mentioned changes.
(2) Provision for bad debts
The Company uses the allowance method to account for bad debt losses in accordance with the accounting policy
for accounts receivable. Impairment of accounts receivable is based on the assessment of the recoverability of
accounts receivable. The identification of impairment of accounts receivable requires management's judgment and
estimation. The difference between the actual result and the original estimate will affect the book value of
accounts receivable and the provision or reversal of bad debt provision for accounts receivable during the period
in which the estimate is changed.
(3) Inventory falling price preparation
According to the inventory accounting policy the Company measures the lower of cost and net realizable
value and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value
obsolete and unsalable. The depreciation of inventories to net realizable value is based on the assessment of the
saleability of inventories and their net realizable value. Identification of impairment of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence and considering the
purpose of holding the inventory and the influence of events after the balance sheet date. The difference between
the actual result and the original estimate will affect the book value of inventory and provision or reversal of
inventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortization
After considering the salvage value of investment real estate fixed assets and intangible assets the company
shall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularly
reviews the service life to determine the amount of depreciation and amortization expenses to be included in each
reporting period. The service life is determined by the Company based on past experience of similar assets and
combined with expected technical updates. If there has been a significant change in previous estimates the
depreciation and amortization expense will be adjusted in the future period.
(5) Deferred income tax assets
Insofar as it is highly probable that there will be sufficient taxable profits to offset losses the company will
recognize deferred income tax assets for all unused tax losses. This requires the management of the company to
use a large number of judgments to estimate the time and the amount of future taxable profits and combine the tax
planning strategy to determine the amount of deferred income tax assets that should be recognized.
(6) Income tax
In the normal business activities of the company there are certain uncertainties in the final tax treatment and
calculation of some transactions. It requires the approval of the tax authorities on whether some items can be
listed as deductible in the profit before tax. If there is a difference between the final recognized result of these
taxation matters and the originally estimated amount the difference will have an impact on the income tax and the
deferred income tax of that period with the final recognition being made.VI. Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
VAT
Sales revenue and
Technical services revenue
3%、10%、16%、17%、11%
Urban construction tax Turnover tax to be paid allowances 7%
Enterprises income tax Taxable income 9%、10%、15%、16.5%、25%
VAT Technical services revenue 6%
Educational surtax Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
2.Tax Preference
① On September 29 2015The Company was rated as the national high-tech enterprise with validity of 3 years.
As per the provisions of enterprise income tax law the Company adopts 15% enterprise tax rate applicable for
high-tech enterprises for three years since 2015.②On July 20 2017Wuhu Tunghsu Optoelectronic Technology Co. Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2017.③On October 21 2016Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.④On November 21 2016Shijiazhuang Tunghsu Optoelectronic Equipment Technology Co. Ltd. was rated as the
national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the
Company adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑤On August 3 2015Zhengzhou Xufei Optoelectronic Technology Co. Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2015.⑥On November 21 2016Shijiazhuang Xuxin Optoelectronic Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⑦On November 30 2016Jiangsu Jixing New Material Co. Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2016.⑧On November 24 2016Shanghai Tanyuan Huigu New Material Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⑨On December 1 2016Mingshuo(Beijing) Electric Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⑩On October 25 2017Beijing Xutan New Material Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2017.⑾On November 17 2017Suzhou Tengda Optical Technology Co. Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2017.⑿On December 8 2016Sichuan Xuhong Optoelectronic Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⒀On November 24 2016Shanghai Sunlong Bus Co. Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2016.⒁On December 8 2016Chengdu Tunghsu Intelligence Technology Co. Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒂Daosui Group Tibet Construction Development Co. Ltd based on the “Notice of the People's Governmentof Tibet Autonomous Region on Issuing the Measures for the Implementation of Enterprise Income Tax Policy ofTibet Autonomous Region” (Zangzhengfa [2014] No. 51) policy enjoys the corporate income tax at the rate of
15% for the strategy of developing the western region and is exempted from the 40% tax share that originally
belongs to the local place thus actually implementing the income tax rate of 9%.⒃Guangxi Yuanzheng New Energy Automobile Co. Ltd based on the Guangxi People’s Government’s
Circular on the Continuation and Revision of Certain Policies Concerning the Promotion of the Open
Development of the Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy enjoys the
corporate income tax at the rate of 15% for the strategy of developing the western region and is exempted from
the 40% tax share that originally belongs to the local place thus actually implementing the income tax rate of 9%.⒄Harbin Sunlong New Energy Automobile Sales Co. Ltd based on the “Notice of Ministry of FinanceState Administration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scaleLow-profit Enterprises” (Cai Shui [2011] No. 117) and the 28
thclause of “The People's Republic of China
Enterprise Income Tax Law”- that the small profit-making enterprise that meets the requirements enjoys a
reduction of 20% tax rate on the corporate income tax actually implements the income tax rate of 10%.
3.Other
VII. Notes to the major items of consolidated financial statement
1.Cash and bank balances
In RMB
Items Year-end balance Year-beginning balance
Cash 460584.36 2461658.94
Bank deposit 23203703585.91 26666668936.88
Other 590432885.53 787629173.04
Total 23794597055.80 27456759768.86
Other notes
The amount of restricted cash and bank balances by the end of the period is RMB 2351663690.33.
2.Financial assets measured at fair value through current profit and loss
3.Derivative financial assets
□Applicable √ Not applicable
4.Note receivable
（1）Classification bill receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 327763684.95 267121031.99
Trade acceptance 447624748.00 271007552.85
Total 775388432.95 538128584.84
（2）Note receivable pledged by the Company at the period -end
（3）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance
sheet date
In RMB
Items Amount derecognized as at June 302018
Amount underecognized as at June
302018
Bank acceptance 215608081.81
Trade acceptance 598836048.03
Total 814444129.84
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
Notes：As of the semi-annual disclosure date the company has signed an agreement with the relevant parties the
company will receive the RMB 215 million of notes receivable from the company such as Waterma to give the
ticket holder etc. and finally obtain the assessed value of not less than RMB 215 million of assets. "(Money funds
do not need to be assessed). 5. Account receivable
(1)Classification account receivables.
In RMB
Category
Year-end balance Year-beginning balance
Book balance
Provision for bad
debts Book
Value
Book balance Provision for bad debts
Book Value
Amount
Proport
ion
（%）
Amount
Proportion（%）
Amount
Proportion（%）
Amount
Proportion
（%）
Accounts receivable
of individually
withdrawing bad debt
provision with
significant individual
amount
16919382
9.11
1.66%
169193
829.11
100.00% 0.00
175782
084.76
2.16%
1757820
84.76
100.00% 0.00
Account receivables
with provision for
bad debt made on a
portfolio with similar
risk credit
characteristics basis
10042312
738.35
98.34
%
104665
569.58
1.04%
9937647
168.77
79757
76808.
83
97.84%
1023571
24.41
1.28%
78734196
84.42
Total
10211506
567.46
100.00
%
273859
398.69
2.68%
9937647
168.77
81515
58893.
59
100.00%
2781392
09.17
3.41%
78734196
84.42
Accounts receivable subject to individually withdrawing bad debt provision with significant individual amount..
√ Applicable □Not applicable
In RMB
Account receivable(Unit)
Amount in year-end
Account receivable
Provision for bad
debts
Proportion% Reason
Inner Mongolia
Zhunxing Heavy Haul
Expressway Co. Ltd.
136922651.00 136922651.00 100.00%
Not expected to be recovered as a result
of litigation
Korea Sunlong Bus
Co.Ltd
32271178.11 32271178.11 100.00%
Notes：For the account receivable of
Korea Sunlong Bus Co. Ltd-that the
outstanding payment of goods has been
long delayed due to the disruption of
vehicle sales caused by the serious
contraction of Korean Tourism Market
and the Policy of Automobile Emission
Standard the company has adopted a
variety of dunning measures but has not
yet achieved results. At the end of the
period the company conducted a
separate impairment test for that. After
being tested for impairment the
impairment loss was determined based
on the difference of the present value of
its future cash flow lower than its book
value making the provision for bad
debts.Total 169193829.11 169193829.11 -- --
Accounts receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □Not applicable
In RMB
Aging
Amount in year-end
Account receivable Provision for bad debts Proportion%
Withitem 1 year
Within credit period 6478928089.29
Within 1 year after credit period 823936445.65 41196822.36 5.00%
Subtotal within 1 year 7302864534.94 41196822.36
1-2 years 141927415.09 14192741.51 10.00%
2-3 years 26330517.90 7899155.37 30.00%
3-4 years 58707194.54 29353597.27 50.00%
4-5 years 5458198.00 3820738.60 70.00%
Over 5years 8202514.47 8202514.47 100.00%
Total 7543490374.94 104665569.58
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
Group name Amount in year-end
Provisionfor
bad debt
Amount in year- beginning
Provision for
bad debts
State subsidy. Local subsidy 2129070128.00 2160997954.00
Other Group 369752235.41 293949697.69
Total 2498822363.41 2454947651.69
（2）Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB8855265.67;The amount
of the reversed or collected part during the reporting period was of RMB3817512.69.（3）The current accounts receivable written-offs situation
In RMB
Items Amount written-offs situation
Sales goods 9317563.46
Account receivables actually written-offs during the reporting period：
In RMB
Name
Nature of account
receivable
Amount written-off
Reason for written
-off
Verification
procedures
Arising form related
transactions(Y/N)
Foshan Sanshui
Yuejing Automobile
Transportion Co.Ltd.Sales goods 6588255.65
Bankruptcy and
liquidation of the
enterprise is not
expected to be
recovered.Internal approvals No
Total -- 6588255.65 -- -- --
Notes：
（4）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB3135836063.48 which accounts for 30.71% of the total receivables. The total amount of closing balance
for corresponding accrued bad-debt provision is RMB158300.88.
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
6. Advance payments
（1）Disclosed by aging:
In RMB
Aging
Amount in year-end Amount in year- beginning
Amount Proportion(%) Amount Proportion(%)
Within 1 year 1317256741.99 86.04% 1771543035.64 87.65%
1-2 years 156933894.37 10.25% 196495357.45 9.72%
2-3 years 15382125.47 1.00% 27318669.74 1.35%
Over 3 years 41487932.64 2.71% 25762888.12 1.28%
Total 1531060694.47 -- 2021119950.95 --
Notes ：
Nil.（2）The ending balance of Prepayments owed by the imputation of the top five parties
As of June 30 2018 the total amount of the top five companies in advance payments is RMB
283116591.02 accounting for 18.49% of the total ending balance of prepayments of advance payments.
Other notes：
7.Interest receivable
（1）Classification Interest receivable
In RMB
Items Amount in year-end Amount in year-begin
Fixed deposit 29306335.47 49456785.29
Total 29306335.47 49456785.29
（2）Important overdue interest
8.Dividend receivable
（1）Dividend receivable
（2）Dividend receivable aging over 1 years
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Category
Amount in year-end Amount in year- begin
Book Balance Bad debt provision
Book
value
Book Balance Bad debt provision
Book value
Amount
Proportio
n(%)
Amount
Proportio
n(%)
Amount
Proportio
n(%)
Amount
Proportion(
%)
Other Accounts
receivable of
individually
withdrawing bad debt
provision with
significant individual
amount
917103
3.44
0.66%
917103
3.44
100.00%
90568
21.74
0.83%
9056821
.74
100.00%
Other receivables
subject to provision
for bad debts on
credit risk
137476
8974.30
99.34% 248751
82.22
1.81% 1349893
792.08
10808
21148.
37
98.85% 3593081
2.05
3.32% 10448903
36.32
characteristics basis
Other Accounts
receivable of
individually
withdrawing bad debt
provision with
non-significant
individual amount
34711
43.41
0.32%
3471143
.41
100.00%
Total
138394
0007.74
100.00%
340462
15.66
2.46%
1349893
792.08
10933
49113.
52
100.00%
4845877
7.20
4.43%
10448903
36.32
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
Other receivable（Unit）
End of term
Other
receivable
Bad debt
provision
Proportion Reason
KoreasunlongBusCo.Ltd 9171033.44 9171033.44 100.00%
Notes：For the account receivable of Korea Sunlong
Bus Co. Ltd-that the outstanding payment of goods
has been long delayed due to the disruption of
vehicle sales caused by the serious contraction of
Korean Tourism Market and the Policy of
Automobile Emission Standard the company has
adopted a variety of dunning measures but has not
yet achieved results. At the end of the period the
company conducted a separate impairment test for
that. After being tested for impairment the
impairment loss was determined based on the
difference of the present value of its future cash flow
lower than its book value making the provision for
bad debts.Total 9171033.44 9171033.44 -- --
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □ Not applicable
In RMB
Aging
Amount in year-end
Other account receivable Provision for bad debts Proportion(%)
Withinitem 1 year
Within credit period 321164774.89
Within 1 year after credit period 60045557.92 3002277.90 5.00%
Subtotal Within 1 year 381210332.81 3002277.90
1-2 years 77846956.73 7784695.67 10.00%
2-3 years 41371145.56 12411343.66 30.00%
3-4 years 210338.53 105169.39 50.00%
Over 5 years 1571695.60 1571695.60 100.00%
Total 502210469.23 24875182.22
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√ Applicable □ Not applicable
In RMB
Group name Amount in year-end Bad debt provision
Persona Returnable Insurance 2683210.08
Deposit 862419394.97
Export tax refunds 7455900.02
Total 872558505.07
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB7115436.63 the account collected or switches back amounting to
RMB18056854.76.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Amount Method
Sichuan Panxi Lingshan Tourism
Investment Development Co. Ltd
7891958.95 Retracted
Total 7891958.95 --
(3) Other account receivables actually cancel after write-off
In RMB
Items Amount
Sales goods 3471143.41
Of Which Other receivable write-off：
In RMB
Name
Nature of account
receivable
Amount written-off
Reason for written
-off
Verification
procedures
Arising form related
transactions(Y/N)
Foshan Sanshui
Yuejing Automobile
Services Co. Ltd.Sales goods 3471143.41
Bankruptcy and
liquidation of the
enterprise is not
expected to be
recovered.Internal approvals No
Total -- 3471143.41 -- -- --
Notes：
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Current account 387321573.47 413488631.19
Deposit 862419394.97 592692531.83
Project petty cash 80043589.50 68529879.43
Persona Returnable Insurance 2683210.08 2564564.43
Export tax refunds 7455900.02 6453137.37
Other 44016339.70 9620369.27
Total 1383940007.74 1093349113.52
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Nature Year-end balance Age
Portion in total other
receivables(%)
Bad debt provision
of year-end balance
Sichuan City
Construction No.5
Infrastructure
Development Co.
Ltd.
Deposit 200000000.00
Within credit
period :80000000.0
0; Within 1 year
after credit
period:120000000.
00
14.45%
Sichuan Panxi
Lingshan Tourism
Investment
Development Co.
Ltd.
Enterprises fund
transfers
93188661.00 Within credit period 6.73%
Chongqing Haolong
Platinum Industry
Co. Ltd.
Enterprises fund
transfers
69163611.11 Within credit period 5.00%
Sichuan Nengtou
New City Anning
Valley Tourism
Investment and
Development Co.
Ltd.
Equity transfer 51970000.00 Within credit period 3.76%
Tibet transportation
Dept.
Deposit 35154463.70
Within credit
period :2830829.70
; Within 1 year after
credit
period:32323634.0
0
2.54%
Total -- 449476735.81 -- 32.48%
10.Inventory
（1）Inventory types
In RMB
Items
Year-end balance Year-beginning balance
Book Balance
Provision for bad
debts
Book value Book Balance
Provision for bad
debts
Book value
Raw materials 1829971611.21 22577740.86 1807393870.35 2210317909.51 23802249.09 2186515660.42
Processing
products
237283016.68 1443698.36 235839318.32 243932972.44 1443698.36 242489274.08
Stock goods 495293750.48 17267664.82 478026085.66 457130464.91 9080902.13 448049562.78
Completed but
unsettled assets
caused by
construction
contract
844012557.86 844012557.86 760198642.91 760198642.91
Commissioned
processing
material
20173731.74 20173731.74 13306134.19 13306134.19
Development cost 749023361.73 749023361.73 1188193081.41 1188193081.41
Commissioned
processing
material
23770009.81 23770009.81 65383734.21 65383734.21
land arrangement 52644562.38 52644562.38 10346187.21 10346187.21
Total 4252172601.89 41289104.04 4210883497.85 4948809126.79 34326849.58 4914482277.21
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry planting business" disclosure requirements
No
(2) Inventory depreciation reserve
In RMB
Items
Beginning of
term
Increased in current period Decreased in current period
End of term
Provision Other Transferred back Other
Raw materials 23802249.09 1224508.23 22577740.86
Processing
products
1443698.36 1443698.36
Stock goods 9080902.13 8186762.69 17267664.82
Total 34326849.58 8186762.69 1224508.23 41289104.04
Notes 1：Basis of provision for inventory revaluation reserve was cost and net realizable value and reason of
inventory revaluation reserve provision was that final realizable net value was lower than cost.
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
The end of the development cost includes interest capitalization of 117430461.67 yuan.
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Items Amount
Accumulated Incurred Cost 6320487912.95
Accumulated Confirmed Gross Profit 443903048.67
Settlement Amount 5920378403.76
Unliquidated Completed Assets Formed in the Construction
Contract
844012557.86
Other notes：
11. Holding assets for sale
In RMB
Items End book value Fair value Estimated disposal cost Estimated disposal time
Long-term Equity
Investment
126264435.58 126264435.58 December 312018
Total 126264435.58 126264435.58 --
Other notes：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co. Ltd. acquires Sub-Subsidiary
Mingshuo (Beijing) Electric Technology Co. Ltd. and the acquisition agreement stipulates that: Mingshuo (Beijin
g) Electric Technology Co. Ltd.’s original subsidiary Mingshuo (Beijing) Trade Co. Ltd. Huzhou Mingwang Li
ghting Technology Co. Ltd
Pursuant to the agreement of the acquisition of sub-subsidiary company Daoshui Group Engineering Co.Ltd.: Daosui Group Engineering Co. Ltd originally held a subsidiary .Sichuan Panxi Liangshan Travel Investment
Development Co. Ltd.Sichuan Panxi Lingshan Travel Investment Huanshun real estate Co. Ltd. Subei Hexing
Water Co. Ltd. was stripped after the acquisition Sold on 31 December 2018
12. Non current assets due within one year
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
USD exchange 58000000.00 58000000.00
Prepayment of income tax 1149390102.41 1281947333.75
Short –term Financing 1220000000.00
Total 1207390102.41 2559947333.75
14. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Items
Closing balance Opening balance
Book balance
Provision for
impairment
Book value Book balance
Provision for
impairment
Book value
Available-for-sale Equity
instrument
243158605.30 243158605.30 100000056.00 100000056.00
Cost measured 243158605.30 243158605.30 100000056.00 100000056.00
Total 243158605.30 243158605.30 100000056.00 100000056.00
（2）Available-for-sale financial assets measured by cost
（3）Available-for –sale financial assets measured at cost at the end of the year
In RMB
Investee
Book balance Provision for impairment Percentage
of
shareholdi
ng in
investees%
Cash
dividends
for the
year
Balance of
term
Increase Decrease
End of
term
Balance of
term
Increase Decrease
End of
term
Beijing
Yihuatong
Technolog
y Co. Ltd.
10000005
6.00
10000005
6.00
5.51%
Beijing
Shenwei
Lixing
Auto
Service
Co. Ltd.
29500000
.00
29500000
.00
16.48%
China
Metallurgi
cal
investment
fund
manageme
nt
(Beijing)
Co. Ltd.
11365854
9.30
11365854
9.30
Total
10000005
6.00
14315854
9.30
24315860
5.30
--
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision
Other notes:
Notes 1: On July 10 2017 the Company subscribed for 1282052.00 shares of the add-directional share issuance of the
New Third Board Beijing Yihuatong Technology Co. Ltd at the price of RMB 78.00 per share with paying the
consideration of RMB 100000056.00. After the subscription the company holds 5.51% stake of Beijing Yihuatong
Technology Co. Ltd. As it’s unable to obtain fair value the estimate is measured at cost.Notes 2:On January 15 2018 the Company obtained 16.48% equity of Beijing Shenwei Shixing Automobile
Service Co. Ltd. by RMB 29.5 million and as there was no quotation in the active market and its fair value couldn’t
be reliably measured the subsequent measurement was carried out according to cost.Notes 3:On January 27 2018 the Company’s wholly-owned subsidiary-Tunghsu Construction Group Co. Ltd
MCC Jianxin Investment Fund Management (Beijing) Co. Ltd. Beijing Dongfang Xujie Fund Management Co.
Ltd. China Metallurgical Group Co. Ltd. and Postal Savings Bank of China Chongqing Branch jointly signed the
“Private Investment Fund Contract of the Government and Social Capital Cooperation (PPP) Project of theMunicipal Pipeline Project of Funan New District of Hengshui City” and the “Private Investment Fund Contract ofGovernment and Social Capital Cooperation (PPP) of Municipal Road Engineering of Funan New District ofHengshui City” ). As there was no quotation in the active market and its fair value couldn’t be reliably measured the
subsequent measurement was carried out according to cost.
15. Held-to-maturity investment
(1) Held-to-maturity investment
(2) Important held-to-maturity investment at period-end
(3) Reclassify of held-to-maturity investment in the period
16. Long-term account receivables
（1）Long-term account receivables
In RMB
Items
End of term Beginning of term
Range of rate
Book balance
Provision for
impairment
Book value Book balance
Provision for
impairment
Book value
Sale of
commodities by
installment
138899570.7
0
138899570.7
0
143988866.9
1
143988866.9
1
4.75%-20.56%
Total
138899570.7
0
138899570.7
0
143988866.9
1
143988866.9
1
--
(2) Long-term account receivables recognition terminated due to transfer of financial assets
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
17. Long-term equity investment
In RMB
Investees
Opening
balance
Increase/decrease
Closing
balance
Closing
balance
of
impairme
nt
provision
Additi
on
invest
ment
Deduct
ion
invest
ment
Gains/loss
under equity
method
Other
comprehe
nsive
income
adjustmen
ts
Other
changes
in equity
Declarati
on of cash
dividends
or profit
Withdraw
n
impairme
nt
provision
Other
I. Joint ventures
II. Associates
Tunghsu
Group
Finance
Co. Ltd.
200406220
4.94
6471235.43
2010533
440.37
Tunghsu
(Deyang)
Graphene
Industry
Develop
ment
Fund
Partnershi
p (LP)
20436738.1
1
30264.58
2046700
2.69
Zibo Bus
service
Co. Ltd.
32678813.5
7
2448937.71
3512775
1.28
CUHK
internatio
nal
business
factoring
co. Ltd
73306968.0
8
2886186.76
7619315
4.84
Subtotal
213048472
4.70
11836624.4
8
2142321
349.18
Total
213048472
4.70
11836624.4
8
2142321
349.18
Other notes
At the beginning of the period the long-term equity investment of the subsidiary Tunghsu Technology Co. Ltd.
was RMB 155434.20 and there was no change in the current period. Tunghsu Technology Co. Ltd. is registered
in Germany and is currently in the process of cancellation and liquidation. According to the relevant laws of
Germany the cancellation of liquidation requires a two-year public notice period during which the agency is
managed by Tunghsu Optoelectronic Technology Co. Ltd. Unable to control the company this period is not
included in the scope of consolidation.
18. Investment real estate
(1) Investment real estate by cost measurement
√ Applicable □Not applicable
In RMB
Items House Building Land use right Construction in process Total
I. Original price
1. Balance at
period-beginning
58843742.66 58843742.66
2.Increase in the current
period
9513629.19 9513629.19
(1) Purchase
（2）Inventory\Fixed
assets\ Transferred from
construction in progress
9513629.19 9513629.19
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end 68357371.85 68357371.85
II. Accumulated
amortization
1.Opening balance 614302.80 614302.80
2.Increased amount of
the period
812939.04 812939.04
(1) Withdrawal 614302.80 614302.80
（2）Other transfers 198636.24 198636.24
3.Decrease in the
reporting period
（1）Disposal
（2）Other out
4.Closing balance 1427241.84 1427241.84
III. Impairment provision
1.Opening balance
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
（2）Other out
4. Closing balance
IV. Book value
1.Book value of the
period-end
66930130.01 66930130.01
2.Book value of the
period-begin
58229439.86 58229439.86
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
19. Fixed assets
(1) List of fixed assets
In RMB
Items House building
Machinery
equipment
Transportations Other equipment Total
I. Original price
1. Balance at
period-beginning
2113818494.63 11507570974.31 122144132.07 185704090.92 13929237691.93
2.Increase in the
current period
2974656.29 65079558.53 6393175.10 13954213.99 88401603.91
(1) Purchase 2559600.13 56226791.96 5953249.38 9296571.11 74036212.58
（2）
Transferred from con
struction in progress
415056.16 1440795.02 439925.72 677559.87 2973336.77
(3)Increased of
Enterprise
Combination
7361971.55 3980083.01 11342054.56
（4）Investment
real estate transfer
（5）Sale-leasebacks
（6）Other increase 50000.00 50000.00
3.Decreased amount
of the period
10927023.65 43952557.36 4468678.34 4262534.50 63610793.85
（1）Disposal 1413394.46 43952557.36 4468678.34 4262534.50 54097164.66
（2）Investment
real estate transfer
9513629.19 9513629.19
（3）Sale-leasebacks
（4）Other increase
4. Balance at
period-end
2105866127.27 11528697975.48 124068628.83 195395770.41 13954028501.99
II. Accumulated
depreciation
1.Opening balance 404808570.47 2014259680.21 57491501.47 73521319.79 2550081071.94
2.Increased amount
of the period
47901589.56 410967573.71 8354593.22 8881287.49 476105043.99
(1) Withdrawal 47901589.56 410860677.91 8354593.22 8789262.43 475906123.13
(2)Increased of
Enterprise
Combination
106895.80 92025.06 198920.86
（3）Investment
real estate transfer
（4）Sale-leasebacks
（5）Other increase
3.Decrease in the
reporting period
910487.15 8539821.51 1437885.02 459968.08 11348161.76
（1）Disposal 711850.91 8539821.51 1437885.02 459968.08 11149525.52
（2）Sale-leasebacks
（3）Other decrease 198636.24 198636.24
4.Closing balance 451799672.88 2416687432.42 64408209.67 81942639.20 3014837954.17
III. Impairment
provision
1.Opening balance 36444.84 555940.00 592384.84
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 36444.84 555940.00 592384.84
IV. Book value
1.Book value of the
period-end
1654066454.39 9111974098.22 59104479.16 113453131.21 10938598162.98
2.Book value of the
period-begin
1709009924.16 9493274849.26 64096690.60 112182771.13 11378564235.15
(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
Items Original book value
Accumulated
depreciation
Accumulated
depreciation
Book value
Platinum channel 278041238.65 6986248.73 271054989.92
Machinery equipment 1388411273.94 270572104.36 1117839169.58
(4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
In RMB
Items Book value Reason
Substation 288854.51 Processing
Boiler room 3988717.38 Processing
20. Project under construction
(1)Project under construction
In RMB
Items
Year-end balance Year-beginning balance
Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Wuhu LCD glass
substrate
production line
project
2171311589.88 2171311589.88 1992039147.54 1992039147.54
Wuhan LCD glass
substrate
production line
project
14645209.52 14645209.52 14645209.52 14645209.52
Kunshan Color
film project
508106857.14 508106857.14 363976794.49 363976794.49
G8.5 glass
substrate
production line
431034482.76 431034482.76
Polarizer project 763009412.48 763009412.48
Surface display
cover glass
408325886.73 408325886.73 15954258.93 15954258.93
Yingkou LCD
glass substrate
production line
project
425964281.66 425964281.66 410371760.10 410371760.10
New energy bus
and logistics
vehicle production
project
1309658561.00 1309658561.00
Other 133094554.30 133094554.30 118135266.36 118135266.36
Total 5402141422.99 14645209.52 5387496213.47 3678131849.42 14645209.52 3663486639.90
(2) Changes of significant construction in progress
In RMB
Name Budget
Amount
at year
beginnin
g
Increase
at this
period
Transferr
ed to
fixed
assets
Other
decrease
Balance
in
year-end
Proporti
on(%)
Progress
of work
Capitaliz
ation of
interest
accumul
ated
balance
Includin
g：
Current
amount
of
capitaliz
ation of
interest
Capitaliz
ation of
interestratio（%)Source
of funds
Wuhu
LCD
glass
757652
0000.00
199203
9147.54
179272
442.34
217131
1589.88
95.49% 95.49%
739441
815.06
447600
30.13
Raising
Funds
substrate
producti
on line
project
Kunshan
Color
film
project
311550
0000.00
363976
794.49
144130
062.65
508106
857.14
17.79% 17.79%
Raising
Funds
Producti
on Line
for the
8.5th-ge
neration
Glass
glass
substrate
695000
0000.00
431034
482.76
431034
482.76
14.64% 14.64%
Raising
Funds
Xuyou
Sheet
glass
Phase I
Project
220000
0000.00
763009
412.48
763009
412.48
Disposed Other
Surface
display
cover
glass
149738
0000.00
159542
58.93
392371
627.80
408325
886.73
27.84% 27.84%
Raising
Funds
New
energy
bus and
logistics
vehicle
producti
on
project
295507
4600.00
130965
8561.00
130965
8561.00
47.94% 47.94%
Raising
Funds
Total
242944
74600.0
0
313497
9613.44
245646
7176.55
763009
412.48
482843
7377.51
-- --
739441
815.06
447600
30.13
--
（3）Impairment provision of construction projects
21. Engineering Material
22.Liquidation of fixed assets
23. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets
（1）Information
In RMB
I
tems
Land use
right
Patent right
Non patent
technology
Software
Patent
technology
Right of trade
mark
Other Total
I. Original
price
1. Balance at
period-begin
ning
887528257.
12
23582996.8
0
150931868.
85
7755063.97
87050298.1
3
115684848
4.87
2.Increase in
the current
period
118694555.
29
53938713.4
1
14445166.6
7
3994161.16
191072596.
53
(1) Purchase 118694555.
29
250000.01 3974827.83
122919383.
13
（2）Internal
R & D
（3）
Increased of
Enterprise
Combination
53688713.4
0
14445166.6
7
19333.33
68153213.4
0
(4)Investor
investment
3.Decreased
amount of the
period
（1）Disposal
（2）Other
4. Balance at
period-end
100622281
2.41
77521710.2
1
165377035.
52
11749225.1
3
87050298.1
3
134792108
1.40
II.
Accumulated
amortization
1. Balance at
period-begin
ning
76219489.0
9
3138879.85
28677985.2
0
2965954.66
44050066.0
5
155052374.
85
2. Increase in
the current
period
11476283.1
9
1668516.73 8282595.52 786998.72
21445707.0
4
43660101.2
0
(1)
Withdrawal
11476283.1
9
1221110.79 7921466.35 786423.71
21445707.0
4
42850991.0
8
（2）
Increased of
Enterprise
Combination
447405.94 361129.17 575.01 809110.12
3.Decreased
amount of the
period
（1）Disposal
（2）Other
4. Balance at
period-end
87695772.2
8
4807396.58
36960580.7
2
3752953.38
65495773.0
9
198712476.
05
III.Impairment
provision
1. Balance at
period-begin
ning
. Increase in
the current
period
(1)
Withdrawal
3.Decreased
amount of the
period
（1）
Disposal
4. Balance at
period-end
4. Book value
1.Book value
at period -end
918527040.
13
72714313.6
3
128416454.
80
7996271.75
21554525.0
4
114920860
5.35
2.Book value
at
period-begin
ning
811308768.
03
20444116.9
5
122253883.
65
4789109.31
43000232.0
8
100179611
0.02
⑵Details of Land use right failed to accomplish certification of property
In RMB
Items Book value Reason
Land use right 70964030.64 50% outstanding
26. Research and development expenditure
In RMB
Items
Beginning
balance
Increase in the period Decrease in period
Ending
balance
Graphene and
Lithium
Battery
Project
3883495.16 3883495.16
Magnolia
lamp design
project
762432.49 7676.59 770109.08
Landscape
street lamp
design
project
2141940.99 544636.17 2686577.16
Distributed
photovoltaic
power plant
project
2022956.97 528195.42 2551152.39
Low voltage
distribution
system
project
2055487.81 582267.04 2637754.85
High voltage
distribution
system
project
3096837.78 792293.21 3889130.99
Intelligent
photovoltaic
junction box
914598.09 264391.71 1178989.80
Electric
vehicle
charging pile
Project in
2017
519955.68 556235.87 1076191.55
EAS supply
chain system
1002691.08 1002691.08
Development
of main
Control
system for
AC charging
pile
830927.10 830927.10
High
efficiency
lighting
project
830926.55 830926.55
High
efficiency
street lamp
project
836864.94 836864.94
Jingang 1143898.85 1143898.85
Robot
Total
15397704.9
7
7921004.53
23318709.5
0
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
events formed
goodwill
Opening balance Increase Decrease Closing balance
Mingshuo
(Beijng)
Electronic
Technology Co.Ltd.
32783882.96 32783882.96
Chenzhou
Hongcheng
Public Traffic
Constriction
Development
Co. Ltd.
10163443.61 10163443.61
Daosui Group
Engineering Co.
Ltd.
40095298.31 40095298.31
Chuanglian
Huatai(HK) Co.Ltd.
722450.89 722450.89
Suzhou Tengda
Optics
Technology Co.Ltd.
82350192.94 82350192.94
Guangxi Sunlong
Automobile
Manufacturing
Co. Ltd .
55664910.37 55664910.37
Shanghai
Tanyuan Huigu
New Material
Co. Ltd.
33935384.57 33935384.57
Shanghai
Sunlong Bus Co.Ltd.
2331962577.34 2331962577.34
Zhongcheng
national
construction co.Ltd.
130169968.13 130169968.13
Shenzhen Sanbao
Innovation
Intelligent Co.Ltd.
66201670.16 66201670.16
Huaxi Nanchong
Automobile Co.
Ltd.
56773762.72 56773762.72
Total 2587678140.99 253145401.01 2840823542.00
（2）Impairment provision of goodwill
In RMB
Name of the
investees or the
events formed
goodwill
Opening balance Increase Decrease Closing balance
Notes of the testing process of goodwill impairment parameters and the recognition method of goodwill
impairment losses:
Other notes:
The increase in goodwill at the end of the period compared to the beginning of the period was mainly due to the ac
quisition of subsidiaries Zhongcheng national construction co. Ltd. Shenzhen Sanbao Innovation Intelligent Co. Ltd. And
Huaxi Nanchong Automobile Co. Ltd. in the current period.
28.Long-term amortization expenses
In RMB
Items
Balance in
year-begin
Increase at this
period
Amortization
balance
Other decrease Balance in year-end
Building renovation 20884579.02 7773533.85 9874189.85 8816276.17 9967646.85
NEG Technology
Use fee
5653725.00 308385.00 5345340.00
Total 26538304.02 7773533.85 10182574.85 8816276.17 15312986.85
29.Deferred income tax assets/deferred income tax liabilities
(1)Details of the un-recognized deferred income tax assets
In RMB
Items
Balance in year-end Balance in year-begin
Deductible temporary
difference
Deferred income tax
assets
Deductible temporary
difference
Deferred income tax
assets
Assets devaluation
provision
347775330.45 69202590.32 361268489.05 72770445.79
Not realized the internal
profit
2098364756.73 336844649.16 2184936479.37 350438261.98
Deductible loss 424876022.19 66260756.48 454060832.38 65723232.56
Deferred income
difference
72120337.62 11065630.90 73641000.14 11046150.02
Non-identical control
enterprise
9519323.16 1007829.65 8652114.93 783147.37
Projected liability 32515694.09 8128923.52 38543627.93 9635906.98
Advance quality margin 80746536.90 10659353.58 117878085.38 16420648.06
Total 3065918001.14 503169733.61 3238980629.18 526817792.76
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Items
Balance in year-end Balance in year-begin
Temporarily Deductible
or Taxable Difference
Deferred Income Tax
liabilities
Temporarily Deductible
or Taxable Difference
Deferred Income Tax
liabilities
Impairment of assets
under the control of
enterprises under the
same control
336100199.64 62295616.96 349818170.15 60149328.74
Total 336100199.64 62295616.96 349818170.15 60149328.74
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Items Trade-off between the End balance of deferred Trade-off between the Opening balance of
deferred income tax
assets and liabilities
income tax assets or
liabilities after off-set
deferred income tax
assets and liabilities at
period-begin
deferred income tax
assets or liabilities after
off-set
Deferred income tax
assets
503169733.61 526817792.76
Deferred income
liabilities
62295616.96 60149328.74
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible losses 426483832.61 83300016.16
Bad debt provision 40093.76 86413.68
Impairment of fixed assets 1935234.19 1935234.19
Fixed assets depreciation reserves 36444.84 36444.84
Provision for impairment of construction
projects
14645209.52 14645209.52
Total l 443140814.92 100003318.39
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2018 3000263.93 2986414.60
2019 5846342.08 5860191.41
2020 3470816.94 3751170.54
2021 9394061.76 32084711.54
2022 17012060.02 38617528.07
2023 37247797.62 0.00
2024 383871.35 0.00
2025 3421161.58 0.00
2026 10452118.86 0.00
2027 8444562.81 0.00
2028 327810775.66 0.00
Total 426483832.61 83300016.16 --
30 .Other non-current assets
In RMB
Items Balance in year-end Balance in year-begin
Prepaid land fund 6590000.00
Prepaid engineering equipment 282006939.10 299812939.48
Total 282006939.10 306402939.48
31.Short –term loans
（1）Short-term loans by category
In RMB
Items Balance in year-end Balance in year-begin
Pledge loan 558370000.00 320666279.80
Mortgage loan 292900000.00 374600000.00
Guarantee loan 5765000000.00 4997500000.00
Credit loan 196514698.87 20060102.40
Total 6812784698.87 5712826382.20
Notes：
Notes 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.Notes 2.At the end of the period the company's credit loans of RMB 196514698.87.Notes 3. The final mortgage was RMB 292900000.00.
（1）The sub-subsidiary Shenzhen Xinyintong Technology Co. Ltd via mortgage loan borrowed RMB
22000000.00 with that Zhang Lixia provided the house property of No. 5000615797 Shen Fangdizi and Zhong
Yuhua provided the house property of No. 3000415955 Shen Fangdizi as the collateral and Zeng Jiankai Zhong
Yuhua and Zhang Lixia provided the joint and several liability guarantee
（ 2 ） The sub-subsidiary Daosui Group Engineering Co. Ltd via mortgage loan borrowed RMB
120900000.00 thereinto a: for RMB 53000000.00 the guarantors were Yang Jianzhong and You Shaoguo
with the mortgage of the land of Mianguoyong (2014) No. 0227 and the No. 0358 house property of Mianning
County Fangquanzheng Zi of Sichuan Panxi Lingshan Tourism Investment Development Co. Ltd; b: For RMB
26000000.00 the guarantors were Yang Jianzhong and You Shaoguo with the mortgage of the No. 0358 house
property of Mianning County Fangquanzheng Zi the No. 45 No. 46 No. 48 to No. 52 house properties of Real
Estate Certificate of Yue Limited Liability Zi and the lands of No.2016-1 No. 2016-2 No. 2016-4 to No. 2016-8
of Yueguoyong (2013) of Huaying Minghua Trading co. Ltd; c: Of which 2 were 27500000.00 yuan the
guarantors were Yang Jianzhong and You Shaoguo with the mortgage of No. 011160 No. 011161 and No. 011164
house properties of Huafangquanzheng the No. 200700978-200700984 house properties of Guangfangquanzheng
and the No.384 land of Huaguoyong (2012); d: for RMB 14400000.00 the guarantor was Yang Jianzhong with
the mortgage of No.011160 No. 011161 and No. 011164 house properties of Huafangquanzheng and the
No.20070
（3） The Sub-subsidiary Fuzhou Xufu Optoelectronic Technology Co. Ltd via mortgage loan borrowed RMB
150000000.00 with the maximum amount guarantee provided upon using the Fuzhou Xufu Optoelectronic
Technology Co. Ltd’s own plant and equipment;
Notes 4： Guarantee loan was RMB 5765000000.00
Whereby
（1） Tunghsu Group Co. Ltd offered RMB 400000000.00 joint liability guarantee to The Company Li
Zhaoting offered RMB960000000.00 joint liability guarantee to the Company，Tunghsu Group and Li Zhaotingoffered RMB1150000000.00 Guarantee to the companyTunghsu GroupLi Zhaoting and Li Qing offered RMB
1280000000.00 Guarantee to the Company
（2） Tunghsu Group The company and Li Zhaoting offered RMB 80000000.00 joint liability guarantee to
the Subsidiary –Sichuan Xuhong Optoelectronic Technology Co. Ltd.
（3） Tunghsu Group Offered RMB250000000.00 Joint liability guarantee to the subsidiary-Zhengzhou
Xufei Optoelectronic Technology Co. Ltd.，Tunghsu Group and Li Zhaoting Offered RMB 280000000.00guarantee to the Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co. Ltd. The Company Offered
RMB50000000.00 guarantee to Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co.
Ltd.Tunghsu Group Offered RMB250000000.00 Joint liability Guarantee to Sub- Subsidiary-Suzhou Tengda
Potics Technology Co. Ltd.，The Company Offered RMB20000000.00 guarantee to Sub- subsidiary- SuzhouTengda Potics Technology Co. Ltd.
（4） The Company offered RMB 245000000.00 joint liability guarantee to the subsidiary- Wuhu Tunghsu
Optoelectronic Technology Co. Ltd.
（5） The Company offered RMB205000000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic
Technology Co. Ltd. The Company and Li Zhaoting offered RMB210000000.00 guarantee to the subsidiary-
Wuhu Tunghsu Optoelectronic Technology Co. Ltd.Tunghsu Group and The company offered
RMB200000000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic Technology Co. Ltd.
（6） Tunghsu offered RMB935000000.00 joint liability guarantee to the Subsidiary –Shanghai Sunlong
Bus Co. Ltd.Tunghsu Group and Li Zhaoting offered RMB100000000.00 joint liability guarantee to the
Subsidiary –Shanghai Sunlong Bus Co. Ltd.Tunghsu Group and The company offered RMB50000000.00 joint
liability guarantee to the Subsidiary –Shanghai Sunlong Bus Co. Ltd. The company offered RMB100000000.00
guarantee to the Subsidiary –Shanghai Sunlong Bus Co. Ltd.Tunghsu Group offered RMB245000000.00 joint
liability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd. The company offered
RMB100000000.00 guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd.Shanghai
Sunlong Bus ffered RMB30000000.00 joint liability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile
Manufacturing Co. Ltd .Notes 5：Final pledge loan amount was RMB558370000.00.Including: The pledge borrowing of RMB142500000.00 was provided a pledge guarantee by Wuhu Tunghsu
Optoelectronic Equipment Technology Co. Ltd using the term deposit certificate of RMB 150000000.00;
The pledge borrowing of RMB180000000.00 was provided a pledge guarantee by Sub--Subsidiary Hunan Tunghsu
Weigao Medical instrument Co. Ltd using the term deposit certificate of RMB100000000.00; Tunghsu Group
provides joint liability guarantee; The pledge borrowing of RMB69000000.00 was provided a pledge guarantee by
Sub—Subsidiary Daoshui Group Co. Ltd using the term deposit certificate of RMB72010000.00; The pledge
borrowing of RMB142500000.00 was provided a pledge guarantee by Wuhu Tunghsu Optoelectronic Technology
Co. Ltd using the term deposit certificate of RMB150000000.00; The pledge borrowing of RMB24370000.00 was
provided a pledge guarantee by Sub—Subsidiary Shenzhen Xinyingtong Technology Co. Ltd using the term deposit
certificate of RMB24370000.00;
(2) Situation of Overdue Outstanding Short-Term Borrowing
Final overdue outstanding short-term borrowing was zero.
. Financial liabilities measured at fair value through current profit and loss
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
Items Balance in year-end Balance in year-begin
Commercial acceptance 344370940.00 237603082.40
Bank acceptance bills 654896156.40 826294597.49
Total 999267096.40 1063897679.89
Amount due in next fiscal period is RMB0.00.
35. Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Engineering fund 1392966173.99 1095153995.50
Material fund 3191668273.67 3433073854.24
Transportation expenses 13759120.88 11172407.72
Technology Service 5495219.34 6069737.32
Other 86849717.14 91519044.87
Total 4690738505.02 4636989039.65
（2）Significant accounts payable that aged over one year
In RMB
Items Balance in year-end
The reason for not repaid or carried forwar
d
Wuxi Jingke automobile Part Co. Ltd. 18121142.66
Failure to meet agreed terms and duration
of payment
Jiangsu Chengyi Technology Co. Ltd. 11328581.84
Failure to meet agreed terms and duration
of payment
Total 29449724.50 --
.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 394669033.49 635268325.76
Engineering fund 581688484.32 1019869237.87
Total 976357517.81 1655137563.63
(2) Accounts payable with major amount and aging of over one year
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
37. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
I. Short –term wages 205475973.45 595147895.45 640164409.72 160459459.18
II. Welfare after waving
of position-fixed
provision scheme
2221388.80 30526036.84 30678815.74 2068609.90
III. Termination benefit 633692.10 633692.10
Total 207697362.25 626307624.39 671476917.56 162528069.08
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages bonuses
allowances and subsidies
158272400.10 541739195.25 589129164.56 110882430.79
2.Employee welfare 54843.85 15315888.40 15327038.59 43693.66
3. Social insurance
premiums
1209437.58 15908948.99 15918971.63 1199414.94
Including：Medical
insurance
1043116.93 13903813.19 13891643.80 1055286.32
Work injury insurance 66261.87 964919.36 984415.41 46765.82
Maternity insurance 100058.78 1040216.44 1042912.42 97362.80
4. Public reserves for
housing
986360.29 13192401.82 13532528.32 646233.79
5.Union funds and staff
education fee
44804730.41 5765542.19 3069334.05 47500938.55
8.Other 148201.22 3225918.80 3187372.57 186747.45
Total 205475973.45 595147895.45 640164409.72 160459459.18
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
insurance premiums
2080192.50 29094532.72 29231356.98 1943368.24
2.Unemployment
insurance
141196.30 1431504.12 1447458.76 125241.66
Total 2221388.80 30526036.84 30678815.74 2068609.90
38.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 95390421.31 60982068.15
Enterprise Income tax 177344409.38 170094083.01
Individual Income tax 31738325.42 30271740.75
City Construction tax 6198035.13 7530509.66
Business Tax 3789219.75 3789219.75
Land VAT 123402213.97
House property tax 8631784.38 8631413.12
Land use tax 1616902.49 1802208.59
Educational surtax 4547924.65 6453814.04
Stamp Tax 504198.36 3666280.55
Output tax to be transferred 850654.08 1758082.34
Total 454014088.92 294979419.96
39. Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans interest of installment and
interest charge
38757921.27 29020856.73
Enterprise bond interest 147856644.87 66833709.29
Short term loan interest payable 10172452.28 11340581.18
Total 196787018.42 107195147.20
40. Dividends payable
In RMB
Items Balance in year-end Balance in year-begin
Common dividends 313488825.93 35000000.00
Total 313488825.93 35000000.00
41.Other payable
（1）Disclosure by nature
In RMB
Items Balance in year-end Balance in year-begin
Related party current account 211378080.73 475619957.85
Project Current account 1033083932.83 727962152.15
Deposit 323299588.22 332892760.85
Government Subsidy 15000000.00 15000000.00
Social security withholding 1508838.35 1823102.07
Engineering fund 0.00 55246500.11
Stock right fund 195500000.00 252444235.97
Restricted stock repurchase obligations 4422320.00 4422320.00
Other 17327128.99 22109862.88
Total 1801519889.12 1887520891.88
(2) Other payables with large amount and aging of over one year
42. Divided into liability held for sale
43.Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans due within 1 year 3298395973.96 4196242686.59
Long-term Account payable due within 1
year
1041049457.67 801679583.06
Deferred income due within 1 year 34290762.19 47686486.80
Total 4373736193.82 5045608756.45
Other notes：
Note 1: Non-current liabilities due within one year was decreased at the end of the period The main reason is the
decrease in borrowings due within one year.Note 2: long-term loans due within one year could be referred to Note VII45.Note 3: long-term account receivable due within one year could be referred to Note VII47.Note 4: Deferred income due within one year could be referred to Note VII51.
44.Other current liabilities
In RMB
Items Closing balance Opening balance
USD exchange 66166000.00 65342000.00
For resale tax 93819427.25 79012267.85
Financing 82800911.12
Total 159985427.25 227155178.97
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Pledge loans 450000000.00 950000000.00
Mortgage loans 3619711596.66 4096235604.06
Guarantee loans 3052216666.62 4359733333.30
Less ：Long-term loan due 1 year -3298395973.96 -4196242686.59
Total 3823532289.32 5209726250.77
Notes：
Notes 1：At the end of the period the Company has no long-term borrowings that have not yet been repaid.Notes 2：The Guarantee of RMB 3052216666.62 is both the mortgage loan and the guarantee loan reclassified
into the non-current liabilities due within one year RMB 2253216666.62.
（1）RMB 1414650000.00 borrowings to provide the joint guarantee of which RMB 1299650000.00
was reclassified to non-current liabilities due within one year; Tunghsu Group Co. Ltd and Li Zhaoting provided the
joint and several guarantee for the company's borrowings of RMB740666666.62 of which RMB 644666666.62
was reclassified to non-current liabilities due within one year; Tunghsu Group Co. Ltd provided the joint and several
guarantee for the company's borrowings of RMB194000000.00 of which of 194000000.00 was reclassified to
non-current liabilities due within one year; Tunghsu Group Co. Ltd Tunghsu Optoelectronics Investment Co. Ltd and
Li Zhaoting provided the guarantee for the Company.
（2）Tunghsu Group Co. Ltd and Tunghsu Optoelectronic Technology Co. Ltd provided the joint and several
guarantee for RMB 100000000.00 for Fuzhou Tunghsu Optoelectronic Technology Co. Ltd; Provide joint guarantees
which are reclassified to non-current liabilities of RMB 100000000.00 due within one year.。Nippon Electric Glass Co.Ltd provided the joint and several guarantee for the sub-subsidiary Fuzhou Tunghsu Optoelectronic Technology Co.Ltd’s borrowings of RMB 188000000.00.
（3）Meishan Shengtong Financing Guarantee Co. Ltd provided the joint and several guarantee for Daosui Group
Engineering Co. Ltd’s borrowings of RMB 14900000.00 of which RMB 14900000.00 was reclassified to
non-current liabilities due within one year;
Notes 3: The mortgage borrowings of RMB 3619711596.66 were both mortgage borrowings and guarantee
borrowings of which RMB1045179307.34 was reclassified to non-current liabilities due within one year.Thereinto: (1)For the borrowings of RMB584699600.00 RMB213233200.00 was reclassified to non-current
liabilities due within one year and the collateral and the guarantor: a: The guarantor Tunghsu Group Co. Ltd provided
the joint and several guarantee for the borrowings equivalent to RMB 450 million under this item and the interest
penalties compound interest compensation liquidated damages damages and expense of realization of creditor's
rights arising from that amount to the lender; b: the assessment value of the collateral-the above-ground buildings and
the equipment(including the 4 precious metal lines of platinum channel) were RMB1055713019.27.
（2）For the loan of 455000000.00 yuan 35000000.00 yuan will be reclassified into non-current liabilities
due within one year the mortgage and pledge guarantee of the loan: a. the property of YFQZYZ No. F
20150301716 YFQZYZ No. F 20150301767 YFQZYZ No. F20150301734 YFQZYZ No. F20150301760
YFQZYZ No. F20150301711 YFQZYZ No. F20150301725 YFQZYZ No. F20150301769 and YFQZYZ No.
F20150301747 of Tunghsu (Yingko) optoelectronic Technology Co. Ltd. are used as collateral; b. Tunghsu
Group Co. Ltd. provides 40000000 shares pledge joint and several guarantee for Tunghsu (Yingko)
optoelectronic Technology Co. Ltd.
（3）For the borrowings of 525000000.00 yuan 375000000.00 yuan was reclassified to non-current liabilities
due within one year and the collateral and the guarantor: a: The mortgagor Shijiazhuang Xuxin Optoelectronic
Technology Co. Ltd used the can-be-mortgaged assets formed by the project including the land use right buildings and
machinery and equipment (including three precious metal lines of platinum channel) for providing the mortgage
guarantee; b: Tunghsu Group Co. Ltd Li Zhaoting and Li Qing provide the guarantee.
（4）For the loan of 1312500000.00 yuan 375000000.00 yuan will be reclassified into non-current
liabilities due within one year the collateral and guarantor of the loan are: a. eight precious metal platinum
channel assets owned by Wuhu Tunghsu optoelectronic Technology Co. Ltd. are used to provide mortgage
guarantee; b. the company provides joint and several liability guarantee for the subsidiary company of Wuhu
Tunghsu optoelectronic Technology Co. Ltd.
（5）For the loan of 272000000.00 yuan 136000000.00 yuan will be reclassified into non-current
liabilities due within one year the collateral and guarantor of the loan are: a. Wuhu Tunghsu optoelectronic
Technology Co. Ltd. will provide mortgage guarantee through mortgaging 202 mu of state-owned land use rights
the factory building after the completion of the project and 2 precious metal platinum channels; b. the guarantor of
the loan is Wuhu Construction Investment Co. Ltd.
（6）For the loan of 370000000.00 yuan 80000000.00 yuan will be reclassified into non-current liabilities
due within one year the collateral and guarantor of the loan are: a. WK(G)GY 2013 No. 020 WK(G)GY 2013 No.
021 WK(G)GY 2014 No. 008 land use right mortgage owned by Wuhu Tunghsu Photoelectricity Equipment
Technology Co. Ltd. and fixed assets after the completion of the project; b. the company provides joint and
several liability guarantee for its subsidiary of Wuhu Tunghsu Photoelectricity Equipment Technology Co. Ltd.
（7）For the loan of 50275333.28 yuan 5801000.00 yuan will be reclassified into non-current liabilities
due within one year the collateral and guarantor of the loan are: the joint and several liability guarantee is
provided by Zeng Jiankai and his spouse zhong Yuhua and the collateral is the housing mortgage provided by
Shenzhen Xinyingtong Technology Co. Ltd.
（8）For the loan of 266663.38 yuan 175107.34 yuan will be reclassified into non-current liabilities due
within one year the collateral and guarantor of the loan are: Zeng Jiankai provides joint and several liability
guarantees and provides vehicles worth 729238.00 yuan as collateral.
（9）For the loan of 30000000.00 yuan 30000000.00 yuan will be reclassified into non-current liabilities
due within one year the collateral and guarantor of the loan are: a. the mortgaged property is property worth
16000000 yuan of Yongfangquanzheng Zi No. 02674664.b. Gui (2015) Nanning Real Estate Right No. 0000039
Land Certificate which worth 20000000; c. Ye Jianhui and Yang Xiangyang provide joint and several liability
guarantee.
（10）For the loan of 19970000.00 yuan 19970000.00 yuan will be reclassified into non-current liabilities
due within one year the mortgage loan is both a mortgage loan and a guarantee loan. The guarantors are Yang
Jianzhong and Hong Shuping and the collateral is Yu (2016) Hechuan District Real Estate Right No. 000587685
real estate of Chongqing Haolong Platinum Industrial Co. Ltd.Notes4：the pledged loan of 450000000.00 yuan is both the pledged loan and the guaranteed loan and 0.00 yuan
is reclassified into the non-current debt due within one year. The Pledged and guarantor of the loan are: a. the
collateral is the 5 million circulating shares of Tunghsu Photoelectricity Technology Co. Ltd. held by Tunghsu
Group Co. Ltd. and the corresponding equity of 178750000.00 yuan of pain-in capital contributed by Tunghsu
Intelligent Technology Co. Ltd. held by Tunghsu Group Co. Ltd.; b. Tunghsu Group Co. Ltd. and Li Zhaoting
will provide the guarantee.Other notes including interest rate range:
Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.17%..Bond payable
（1）Bond payable
In RMB
Items Balance in year-end Balance in year-begin
15 Tunghsu bonds 950657303.79 993310440.39
Mid-term note I 2984051742.33 2981914109.61
Mid -term note II 1691108327.11 1689901540.52
Total 5625817373.23 5665126090.52
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
In RMB
15
Tunghsu
bonds
100000
0000.00
2015.5.1
9
5 years
100000
0000.00
993310
440.39
600000
00.00
130416
3.40
439573
00.00
950657
303.79
Mid-ter
m note I
300000
0000.00
2016.11.
17
5 years
300000
0000.00
298191
4109.61
213763
2.72
298405
1742.33
Mid
-term
note II
170000
0000.00
2016.12.
02
5 years
170000
0000.00
168990
1540.52
120678
6.59
169110
8327.11
Total -- -- --
570000
0000.00
566512
6090.52
600000
00.00
464858
2.71
439573
00.00
562581
7373.23
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Table of changes in financial instruments such as preferred stock and perpetual debt
Other notes
Notes 1: On September 8 2016 the 8th board of directors meeting of the company examined and approved the
company’s application for registration of the medium-term notes issued no more than RMB 4.7 billion. The
accepting institution was National Association of Financial Market Institutional Investors. On September 26 2016
the extraordinary shareholders' general meeting adopted the bill on the registration and issuance of medium-term
notes. RMB 4.7 billion medium-term notes was divided into 2 phases in 2016. Among them: total amount of the
first phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 3 billion. Total amount of the
second phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 1.7 billion.Notes 2:On May 19 2015 the “15 Tunghsu Debt” with a total amount of RMB 1 billion was issued. In May 2018
the resale amount was RMB 43957300.00 and the coupon rate was adjusted from 6.00% to 6.80%.
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 4800919822.81 4935555693.56
Less：Unconfirmed financing costs 783029636.38 857567856.06
Less：Port due Within 1 year 1041049457.67 801679583.06
Total 2976840728.76 3276308254.44
Other notes：
Name of lessor Initial amount Increase in the period Repayment amount Closing balance
Beijing Cultural Technology
Finance Leasing Co. Ltd.
167086894.20
55695631.40
111391262.80
Beijing Guozi Finance Leasing
Co. Ltd.
202205984.26
28886569.18
173319415.08
Haitong Hengxin International
Leasing Co. Ltd.
287692310.00
57538462.00
230153848.00
Ligen Finance
Leasing(Shanghai) Co. Ltd.
54449784.17
18149928.04
36299856.13
Jiangsu Runxing Finance
Leasing Co. ltd.
224000000.00
8000000.00
216000000.00
Lujin Shenhua Finance Leasing（Shanghai） Co. Ltd.
137134391.04
17141798.88
119992592.16
Xian Runyin Finance Leasing
Co. Ltd.
597659736.26
57517019.88
540142716.38
Dongyin Finance leasing
(Tianjing)Co. Ltd.
83196130.50
27732043.50
55464087.00
Chengdu Huaming Finance
leasing Co. Ltd
1087051918.75
1087051918.75
Chengyu Finance Leasing Co.
Ltd.
59056693.20
13174635.21
45882057.99
Sichuan Tianfu Finance
Leasing Co. Ltd.
52857785.54
5682233.61
47175551.93
Hebei Finance Leasing Co. ltd.
30492852.61
15160194.28
15332658.33
Wanjiang Finance Leasing Co.Ltd.
1168483194.45
25785833.33
1142697361.12
Huayun Finance Leasing Co.Ltd.
234847209.70
26284719.96
208562489.74
Hubei Finance Leasing Co.Ltd.
331846944.60
55307824.10
276539120.50
Hengqin Jintou International
Finance Leasing Co. Ltd.
217493864.28
36248977.38
181244886.90
Shandong Expressway Global
Financing Leasing Co. Ltd.
313670000.00
313670000.00
Total
4935555693.56
313670000.00
448305870.75
4800919822.81
Notes: Tunghsu Group Co. Ltd. offered a guarantee of Financing Leasing at RMB 1056813432.82
Tunghsu Group Co. Ltd Li Zhaoting offered a guarantee of Financing Leasing at RMB 208471400.97. Tunghsu
Group Co. Ltd Li Zhaoting and Li Qing offered a guarantee of Financing Leasing at RMB 802200013.06.The company offered a guarantee of Financing Leasing at RMB 723000000.00.
48. Long-term employee salary payable
（1）Long-term employee salary payable
(2) Changes of defined benefit plans
49. Specific payable
50. Estimates liabilities
In RMB
Items Balance in year-end Balance in year-begin Rreason
Lispendens 32515694.09 38543627.93
Product guarantee 80746536.90 117878085.38
Total 113262230.99 156421713.31 --
51.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 601213644.42 10500000.00 22295047.03 589418597.39
Less ：Government
subsidies due within
one year
-36478840.45 2824600.01 636521.72 -34290762.16
Not realized after
sale rental return
38763460.00 38763460.00
Less：Unrealized
customer service due
-11207646.55 11207646.55
within 1 year rent to
profit or loss
Total 592290617.42 24532246.56 61695028.75 555127835.23 --
Details of government subsidies
In RMB
Items
Beginning of
term
New subsidy
in current
period
Amount
transferred to
non-operatio
nal income
Other income
recorded in
the current
period
Amount of
cost deducted
in the current
period
Other
changes
End of term
Asset-related
orincome-rel
ated
Grant of
Government
Infrastructure
25438800.0
0
1122300.00
24316500.0
0
Related to
assets
Grant of
Industry
Revitalizatio
n and
Technology
Reconstructio
n Project
2644444.61 116666.64 2527777.97
Related to
assets
Grant of
Glass-tube
Secondary
Environment
al Protection
0.00
Related to
assets
Technical
reconstructio
n
2666666.65 133333.34 2533333.31
Related to
assets
Grant of
Glass
Substrate
Project
9999999.94 500000.00 9499999.94
Related to
assets
Industry
Development
Fund
4666666.65 233333.34 4433333.31
Related to
assets
Project
finance
discount
313333.37 15666.66 297666.71
Related to
assets
Grant of
Industry
Revitalizatio
71668666.7
1
3257666.66
68411000.0
5
Related to
assets
n and
Technology
Reconstructio
n Project
2013
Provincial
strategic
emerging
industries of
special grant
funds
4250000.04 166666.66 4083333.38
Related to
assets
Technology
reconstructi
on Special
funds
28822333.3
2
1078000.00
27744333.3
2
Related to
assets
Investment
and Subsidiesof “DoubleHundredPlan” Project
granted by
the People's
Government
of Henan
Province
1783333.33 100000.02 1683333.31
Related to
assets
TFT glass
substrate
technology
R& D fund
89166.77 4999.98 84166.79
Related to
assets
TFT glass
substrate
project
Subsidy
5944444.43 333333.36 5611111.07
Related to
assets
Investment
and Subsidies
within
Budget for
Technologica
l
Transformati
on Project by
National
8322222.23 466666.68 7855555.55
Related to
assets
Development
and Reform
Commission
and the
Ministry of
Industry and
Information
Technology
TFT glass
substrate
project
Subsidy
11888888.9
1
666666.66
11222222.2
5
Related to
assets
Subsidy
Major
Scientific and
Technical
Projects by
Finance
Bureau of
Zhengzhou
City
594444.43 33333.36 561111.07
Related to
assets
Financial
Supports for
National Key
Industry and
Technical
Transformati
on on
Projects
Granted by
the Municipal
Finance
Bureau
8322222.23 466666.68 7855555.55
Related to
assets
Financial
Supports for
National Key
Industry and
Technical
Transformati
on on
Projects
Granted by
the Municipal
4161111.10 233333.34 3927777.76
Related to
assets
Finance
Bureau
Funds for
Independent
Innovation of
Provincially
Supported
Enterprises
3566666.71 199999.98 3366666.73
Related to
assets
Supporting
Funds on
Finance
Discounts
1188888.91 66666.66 1122222.25
Related to
assets
Funds for
Education
Science and
Culture
Granted by
the Finance
Bureau
891666.71 49999.98 841666.73
Related to
assets
Supporting
Funds for
Industrial
Structure
-adjusting
Projects
Granted by
the Regional
Finance
Bureau
1742222.16 93333.36 1648888.80
Related to
assets
Industry
discount and
expenses
1004444.42 53333.34 951111.08
Related to
assets
Financial
discount
3194444.50 166666.68 3027777.82
Related to
assets
Industrial
restructuring
project
financial
funds
3493333.29 160000.02 3333333.27
Related to
assets
Special
Funds for
High-end
3861111.09 166666.68 3694444.41
Related to
assets
Information
Industry
Chain
Granted by
the Finance
Bureau of the
Economic
and
Technologica
l l
Development
Zone
2015 project
equipment
investment
subsidies
29981766.6
0
1145800.56
28835966.0
4
Related to
assets
Zhengzhou C
ity Finance B
ureau in 2011
and 2012 has
been the acc
eptance of th
e provincial i
ndustrial stru
cture adjustm
ent project th
e second batc
h of funds
2412222.08 86666.64 2325555.44
Related to
assets
Strategic
emerging
industry
Development
project funds
25500000.0
0
1000000.00
24500000.0
0
Related to
assets
High-tech
Zone
appropriated
substrate
project
5866666.65 213333.34 5653333.31
Related to
assets
The
production
line of
incentive
funds
19241899.3
7
753471.70
18488427.6
7
Related to
assets
Special funds
for 2015
scientific and
technological
achievements
transform
project
6158080.51 301701.96 5856378.55
Related to
assets
G8.5tft-lcd
glass
substrate
manufacturin
g precision
intelligent
digital
workshop
construction
project
45000000.0
0
45000000.0
0
Related to
assets
Investment in
the Central
Budget of
Strategic
emerging
Industries
3933333.41 399999.96 3533333.45
Related to
assets
2011Key
technical
transformatio
n project
funds
491666.70 49999.98 441666.72
Related to
assets
2011Strategic
emerging
industry
development
funds
565416.70 57499.98 507916.72
Related to
assets
2012Electron
ic
Information
Industry
Development
Assistance
Project
983333.30 100000.02 883333.28
Related to
assets
Subsidies
from the
9399999.99 400000.02 8999999.97
Related to
assets
Bureau of
Finance of
the Economic
and
technological
Development
Zone
2013Strategic
emerging
industry
funds
392777.78 23333.34 369444.44
Related to
assets
Mianyang
Municipal
Bureau of
Finance
Special funds
236666.66 236666.66
Related to
assets
Glass
substrate
finishing
production
Transformati
on Project
548333.33 548333.33
Related to
assets
Special fund
subsidy for
industrial
development
of municipal
financial
bureau
433888.86 16666.68 417222.18
Related to
assets
2013 fund of
strategic new
industry
3944444.44 28333.38 3916111.06
Related to
assets
2014
Provincial
funds for
Science and
Technology
0.00
Related to
assets
Sichuan
Province
Industrial
Transformati
on and
18608333.3
5
891666.66
17716666.6
9
Related to
assets
upgrading
Project 2015
Special funds
for Industrial
Development
in 2016
39852753.5
4
1601092.62
38251660.9
2
Related to
assets
Technical
Reformation
of key Green
Technology
for Glass
substrate
（840）
8400000.00 8400000.00
Related to
assets
Intelligent
manufacturin
g pilot
demonstratio
n project
subsidy fund
（100）
1000000.00 1000000.00
Related to
assets
Group
transfer
subsidy
(National key
R & D
Program key
basic
Materials
Technology
Promotion
and
industrializati
on Project
2016)
915400.00 915400.00
Related d to
income
Intelligent
Manufacturin
g New Mode
Engineering
Project
3990000.00 3990000.00
Related to
assets
Annual
production of
10 million
4700000.00 4700000.00
Related to
assets
square meters
high
aluminum
ultra-thin
display panel
glass items
2017 funds
for
technological
Transformati
on of
Electronic
Information
Industry
30000000.0
0
30000000.0
0
Related to
assets
Subsidy fund
for technical
transformatio
n of
industrial
enterprises in
Fuzhou
2580000.00 2580000.00
Related to
assets
Technical
Transformati
on of
Industrial
Enterprises in
Fuzhou and
supporting
subsidy funds
in Fuqing
City
1290000.00 1290000.00
Related to
assets
The
Development
Bureau of
Economic
and Trade
Development
of Wuhu
Economic
and
technological
Development
Zone in 2017
13417100.0
0
447236.64
12969863.3
6
Related to
assets
"Triple
creation"
high-end
equipment
and new
material
Tunghsu
group limited
transfer to
project five
funds
150400.00 150400.00
Related to
assets
China
National
Building
Material
International
Engineering
Group Co.Ltd.transferred
funds for
projects
496000.00 496000.00
Related to
assets
Bengbu
Glass
Industry
Design and
Research
Institute Co.Ltd. China
Building
Materials
Co. Ltd.
transferred to
indirect funds
(subject 4)
521000.00 521000.00
Related to
assets
Factory
building
construction
award
877500
854475.22 15349.86 839125.36
Related to
assets
Special fund
for
114399.00 114399.00
Related to
assets
automobile
development
Project
subsidy from
the Bureau of
Finance of
the Economic
Development
Zone
6966547.39 294478.50 6672068.89
Related to
assets
National key
R & D
Program key
basic
Materials
Technical
Project
subsidy
2280000.00 2280000.00
Related d to
income
Financial
subsidy for
the major
scientific and
technological
achievements
transformatio
n project of
"High
Aluminium
cover Glass
complete
Technology"
1000000.00 1000000.00
Related to
assets
017 Special
Fund for
Industrial
Development
in Economic
Development
Zone
5000000.00 72463.76 4927536.24
Related to
assets
Key new
product
projects
160000.04 19999.98 140000.06
Related to
assets
Financial
allocation for
3366000.00 153000.00 3213000.00
Related to
assets
Strategic
emerging
Industries in
Sichuan
Provinc
Technical
revamping
items of
300000
production
Line of
Pole-less
Lights Ballast
644999.92 43000.02 601999.90
Related to
assets
Intelligent
Engineering
Laboratory of
High
efficiency
Lighting
system
1783333.29 100000.02 1683333.27
Related to
assets
Research and
development
project funds
159
2226000.00 2226000.00
Related d to
income
District level
technical
reform
project
subsidy 150
1500000.00 1500000.00
Related d to
income
17 year loan
discount
4.871 million
1127484.71 910455.00 217029.71
Related d to
income
Science and
education
support fund
1787595.41 1787595.41
Related d to
income
Subsidies for
fuel cell
projects
4000000.00 4000000.00
Related d to
income
Loan
discount
0.00
Related d to
income
Special funds
for scientific
400000.00 400000.00 Related d to
research 40 income
Glass
substrate
project
subsidy fund
86971803.6
6
658196.34
86313607.3
3
Related d to
income
Total
601213644.
42
10500000.0
0
21384592.0
4
910455.00
589418597.
39
--
52.Other Non-current liabilities
In RMB
Items Balance in year-end Balance in year-begin
CDB financing 608000000.00 608000000.00
Total 608000000.00 608000000.00
Other notes：
Notes：According to the investment contract signed by Tunghsu Optoelectronic Technology Co. Ltd Wuhu
Tunghsu optoelectronic Technology Co. Ltd. Fuzhou Tunghsu Investment Development Co. Ltd and China
Development Fund Co. Ltd China Development Fund Co. Ltd increased the capital of RMB 500000000.00 to
Fuzhou Tunghsu Investment Development Co. Ltd annually enjoying a fix rate of return. After the project is
completed Tunghsu Optoelectronic Technology Co. Ltd shall make the installment redemption to the stake held
by China Development Fund Co. Ltd.
According to Tunghsu Optoelectronic Technology Co. Ltd. after the completion of the projectYingkou Coastal
Development Construction Group Co. Ltd.and China Development Fund Co. Ltd China Development Fund Co.
Ltd increased the capital of RMB 108000000.00 to Tunghsu (Yingkou)OptoelectronicDisplay Co. Ltd. annually
enjoying a fix rate of return. After the project is completed Tunghsu Optoelectronic Technology Co. Ltd shall
make the installment redemption to the stake held by China Development Fund Co. Ltd.
53.Stock capital
In RMB
Balance
Year-beginning
Increase/decrease this time (+ - )
Balance
year-end
Issuing of new
share
Bonus shares
Transferred
from reserves
Other Subtotal
Capital share
5730250118.
00
5730250118.
00
54. Other equity instruments
(1) Basic information of preferred stock perpetual capital securities and other financial instruments
outstanding issued at period-end
(2) Change list of preferred stock perpetual capital securities and other financial instruments outstanding
issued at period-end
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the current
period
Decrease in the current
period
Year-end balance
Share premium 21760882845.16 270364.11 21760612481.05
Other capital reserves 226522375.26 1592850.23 195000000.00 33115225.49
Total 21987405220.42 1592850.23 195270364.11 21793727706.54
Other exlanation including changes and reasons for changes：
The parent company acquired Tunghsu (Yingkou) Optoelectronic Display Co. Ltd. at the end of June 2018
which belongs to the merger of enterprises under the same control. According to the regulations of the standards
it needs to carry out retroactive adjustment of the previous data and other retroactive adjustment of capital reserve
at the beginning of the period will increase by 195 million yuan. The capital premium (equity premium) is the
result of the merger of Tunghsu (Yingkou) in the current period. The increase of other capital reserves in this
period is the increase of other capital reserves caused by the disposal of subsidiary Xuyou (Wuxi) company in this
period. The decrease of other capital reserves is the adjustment of capital reserves caused by the merger of
Tunghsu (Yingkou).
56.Treasury stock
In RMB
Items Year-beginning balance Increase in the current
Decrease in the current
period
Year-end balance
The obligation to
repurchase equity
incentive
4422320.00 4422320.00
Total 4422320.00 4422320.00
57. Other comprehensive income
In RMB
Items
Year-beginni
ng balance
Amount of current period
Year-end
balance
Amount for
the period
before inco
me tax
Less：
Previously rec
ognized in pro
fit or loss in ot
her comprehen
sive income
Less：
Income tax
After - tax a
ttributable t
o the parent
company
After - tax a
ttributable t
o minority s
hareholders
.Other comprehensive income
reclassifiable to profit or loss in
subsequent periods
-4518.45 16582.62 2487.39 7752.38 6342.85 3233.93
Balance form the translation of
foreign currency financial statements
-4518.45 16582.62 2487.39 7752.38 6342.85 3233.93
Total of Other comprehensive income -4518.45 16582.62 2487.39 7752.38 6342.85 3233.93
58. Special reserves
In RMB
Items Year-beginning balance Increase in the current
Decrease in the current
period
Year-end balance
Safety production cost 1983921.21 6552.46 1990473.67
Total 1983921.21 6552.46 1990473.67
59. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current
period
Decrease in the current
period
Year-end balance
Statutory surplus reserve 224133824.86 224133824.86
Total 224133824.86 224133824.86
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
beginning
3010372296.37 1823695278.31
Total adjustment of retained earnings at the
beginning of the year
-157612768.10
Retained earnings after adjustments at the year
end
3010372296.37 1666082510.21
Add: Net profit attributable to owners of the
Company for the period
858296089.08 1733201682.30
Less: Appropriation to statutory surplus reserve -36089754.38
Common stock dividend payable 401117508.27 352822141.76
Common stock dividends converted to shares 3467550877.18 3010372296.37
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control the affected beginning undistributed profits
are RMB 0.00
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income Business cost
（1）Business income Business cost
In RMB
Items
Amount of current period Amount of previous period
Income Cost Income Cost
Main business 9999123145.77 8447438316.36 4868274147.73 3472556236.95
Other business 1130728645.11 574551580.73 8164456.37 1406573.27
Total 11129851790.88 9021989897.09 4876438604.10 3473962810.22
62. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 13771482.99 15039190.71
Education surcharge 10156508.49 10925884.41
Property tax 6512792.08 6283183.73
Land use tax 10858460.78 9674304.80
vehicle and vessel usage tax 39819.43 10822.44
Stamp tax 4395608.94 6119241.19
Land VAT 140193026.84
Environmental protection Tax 168421.15
Other 876060.45
Total 186096120.70 48928687.73
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare insurance 32420959.74 9574777.77
Shipment 25834245.26 18933927.82
Travel 7538832.95 1598038.88
Business expenses 8817205.59 1896338.87
Office fee 3923420.20 410144.17
Consumables and repairs 562745.82 283143.75
Depreciation 730676.07 266676.23
Advertising 963064.93 874528.43
Consultancy services 6399309.05 5103982.43
\Technology Services 3967469.34
Other 2734763.47 3514694.22
Total 93892692.42 42456252.57
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wages and benefits 141992567.21 83952482.53
Business expenses 7359258.97 1993042.89
Labor protect fee 1128621.91 1218523.31
Office fees 6110342.22 4516755.75
Travel fees 8120703.11 3055829.14
Publicize Fees 3787328.88 2256407.59
Miscellaneous charges 7514986.97 1855091.84
Depreciation accumulative 39025365.01 28206344.83
Low value consumables and repair costs 3471887.09 1292268.34
Test expenses 125698218.19 62869570.14
Consultation fees 21680834.70 12630531.96
Rent water electricity and property
charges
17785438.11 8564803.02
Communication expenses 674807.32 206798.13
Equity incentive cost 796800.00
Other 5627343.07 15963423.86
Total 389977702.76 229378673.33
. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 595740917.45 572259300.47
Less：Interest income 198162232.24 196711767.79
Net interest expenses 397578685.21 375547532.68
Exchange gains and losses -11686449.38 -12691241.36
Financial institution 2132029.71 1966716.26
Note discount rate 4213453.93 0.00
Financing 2829302.85 3353312.92
Other 160093.98 15607.13
Total 395227116.30 368191927.63
Other notes：
66. Asset impairment loss
In RMB
Items Amount of current period Amount of previous period
I. Bad debt loss -5903665.15 -703581.80
II.Losses for falling price of inventory 6962254.46 205619.77
Total 1058589.31 -497962.03
67. Gains from changes in fair value
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
method
11836624.48 -15506492.83
Disposal of investment income from long-term
equity investments
-2053558.36
Financing income 13923452.07 22183417.04
Total 23706518.19 6676924.21
69. Assets disposal income
In RMB
Source Amount of current period Amount of previous period
Non-current assets disposal gains and
losses
-664826.45
70.Other income
In RMB
Source Amount of current period Amount of previous period
Government Subsidy 108362056.52 86680000.00
71. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Debt restructuring gains 484207.00 484207.00
Government Subsidy 320000.00 69887507.52 320000.00
Other 95955.07 95955.07
Other Non-Operation income 5045734.86 621007.17 5045734.86
Total 5945896.93 70508514.69 5945896.93
(1)Government subsidy reckoned into current gains/losses
In RMB
Subsidy
items
Issuing body
Issuing
reason
Nature
Whether the
impact of
subsidies on
the current
profit and
loss
Whhether
special
subsidies
Amount of
current
period
Amount of
previous
period
Assets-relate
d/income
–related
Special funds
for the use of
foreign
capital in
2017
Fuqing City
Finance
Bureau
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
Yes No 300000.00
Related to
income
policy
Listing
subsidy
Huzhou
Finance
Bureau
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 20000.00
Related to
income
2015
Depreciation
of equipment
for provincial
achievements
transformatio
n project
Provincial
Science and
Technology
Bureau
Subsidy
A subsidy
obtained due
to
undertaking
the state’s
safeguarding
for protection
for a certain
utility or
socially
necessary
product
supply or
price control
function.No No 301701.96
Related to
income
1.24 Youfang
government
Zhenjiang
Jinshan
talents
scheme
funding
Yangzhong
City Finance
Bureau
Subsidy
A subsidy
obtained due
to
undertaking
the state’s
safeguarding
for protection
for a certain
utility or
socially
necessary
product
supply or
price control
No No 600000.00
Related to
income
function.
3.14 The 5th
Zhenjiang
Excellent
Patent Award
Zhenjiang
Science and
Technology
Bureau
Zhenjiang
Finance
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.No No 20000.00
Related to
income
3.24
Technology
Innovation
Award.
Science and
Technology
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.No No 15000.00
Related to
income
Investment
and Subsidiesof “DoubleHundredPlan” Project
granted by
the People's
Government
of Henan
Province
Henan Office
of industry
and
information
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 100000.02
Related to
assets
TFT glass
substrate
technology
R& D fund
Zhengzho u
Science &
Technology
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
No No 4999.98
Related to
assets
accordance
with the
national
policies and
regulations)
TFT glass
substrate
project
Subsidy
Zhengzho u
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 333333.36
Related to
assets
Investment
and Subsidies
within
Budget for
Technologica
l
Transformati
on Project by
National
Development
and Reform
Commission
and the
Ministry of
Industry and
Information
Technology
National
Development
& Reform
Commission
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 466666.68
Related to
assets
TFT glass
substrate
project
Subsidy
Zhengzhou
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
No No 666666.66
Related to
assets
accordance
with the
national
policies and
regulations)
Special
Funds for
Major
Scientific and
Technical
Projects by
Finance
Bureau of
Zhengzhou
City
Zhengzho u
Technology
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 33333.36
Related to
assets
Financial
Supports for
National Key
Industry and
Technical
Transformati
on Projects
Granted by
the Municipal
Finance
Bureau
Zhengzho u
Economic
and
Technology
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 466666.68
Related to
assets
Financial
Supports for
Industrial
Development
Granted by
the Finance
Bureau of the
Economic
and
Technologica
l
Development
Zhengzhou
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
No No 233333.34
Related to
assets
Zone regulations)
Funds for
Independent
Innovation of
Provincially
Supported
Enterprises
Henan
provincial
finance
department
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 199999.98
Related to
assets
Supporting
Funds on
Finance
Discounts
Henan
provincial
finance
department
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 66666.66
Related to
assets
Funds for
Education
Science and
Culture
Granted by
the Finance
Bureau
Zhengzho u
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 49999.98
Related to
assets
Supporting
Funds for
Industrial
Zhengzho u
Economic
and
Subsidy
Grants
obtained due
to the country
No No 93333.36
Related to
assets
Structure
-adjusting
Projects
Granted by
the Regional
Finance
Bureau
Technology
Development
Zone Finance
Bureau
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Industry
discount and
expenses
Zhengzhou
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 53333.34
Related to
assets
Financial
discount of
Henan
State-owned
assets
holding
Operation
Co. Ltd.
Department
of Finance of
Henan
Province
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 166666.68
Related to
assets
2013
Industrial
restructuring
project
financial
funds
Zhengzhou
Economic
and
Technology
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
No No 160000.02
Related to
assets
(Obtained in
accordance
with the
national
policies and
regulations)
Special
Funds for
High-end
Information
Industry
Chain
Granted by
thFinance
Bureau of the
Economic
and
Technologica
l Develop
Henan Office
of industry
and
information
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 166666.68
Related to
assets
2015 project
equipment
investment
subsidies
Zhengzho u
Municipal
Commission
of industry
and
information
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 1145800.02
Related to
assets
Zhengzhou
City Finance
Bureau in
2011 and
2012 has
been the
acceptance of
the provincial
industrial
structure
adjustment
Henan
Provincial
Department
of Finance
and
Zhengzhou
Municipal
Bureau of
Finance
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
No No 86666.64
Related to
assets
project the
second batch
of funds
policies and
regulations)
Director of
the year
quality Award
2016
Zhengzhou
Economic
and
Technologica
l
Development
Zone
Management
Committee
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 200000.00
Related to
assets
College
graduate
employment
apprenticeshi
p subsidy
Henan
Provincial
Department
of Human
Resources
and Social
Security
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 492000.00
Related to
assets
Introducing
foreign
intellectual
work funds
Zhengzhou
Municipal
Bureau of
Human
Resources
and Social
Security
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
No No 50000.00
Related to
assets
The first National Award Grants Yes No 399999.97 Related to
batch of
central
budgetary
investment in
strategic
emerging
industry
projects
Development
and Reform
Commission
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.assets
Mianyang
City's 2011
key
technology
renovation
completion
project funds
Mianyang
City
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 50000.00
Related to
assets
2011
Strategic
Industry
Development
Promotion
Fund
Suchuan
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 57500.00
Related to
assets
2012
Electronic
Information
Industry
Development
Fund Project
Ministry of
Industry and
Information
Technology
Electronic
Information
Industry
Fund
Management
Office
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 100000.02
Related to
assets
Economic
and
Technologica
l
Economic
Development
Zone
Government
Subsidy
Grants
obtained due
to the country
encourage
Yes No 400000.00
Related to
assets
Development
Zone Finance
Bureau
subsidy
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
PDP glass
substrate
finishing
technology
achievements
transformatio
n project
Provincial
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 23333.33
Related to
assets
The first
batch of
provincial
science and
technology
funds in 2014
Mianyang
Science and
Technology
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 111111.12
Related to
assets
2015 Sichuan
Province
Industrial
Transformati
on and
upgrading
Project
Ministry of
Industry and
Information
Technology
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 725000.00
Related to
assets
2013
Strategic
Emerging
Industry
Provincial
Economic
and
Information
Subsidy
Grants
obtained due
to research
and
Yes No 16666.66
Related to
assets
Funds
Disbursed by
the Economic
Development
Zone
Government
on behalf of
the Provincial
Department
of Finance
Committee development
technical
renovation
and
transformatio
n etc.Special funds
funded by the
Mianyang
Municipal
Finance
Bureau
Provincial
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 10000.00
Related to
assets
Special fund
for industrial
development
of the
Finance
Bureau
Provincial
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 18333.33
Related to
assets
2013
Strategic
Emerging
Industry
Funds
Disbursed by
the Economic
Development
Zone
Government
on behalf of
the Provincial
Department
Provincial
Economic
and
Information
Committee
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 166666.67
Related to
assets
of Finance
Economic
Development
Zone 2016
Industrial
Development
Special Fund
Municipal
government
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 980113.64
Related to
assets
Economic
and
Technologica
l
Development
Zone Finance
Bureau
subsidy
Economic
Development
Zone
Government
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 294478.53
Related to
assets
Production of
high-strength
and ultra-thin
aluminosilica
te touch
screen glass
achievement
conversion
project based
on float
process
Mianyang
Science and
Technology
Bureau
Award
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 150000.00
Related to
income
December of
2016
High-tech
enterprises
recognize
subsidies
Mianyang
Economic
Development
Bureau
Finance
Bureau
Award
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 100000.00
Related to
income
3D Provincial Award Grants Yes No 300000.00 Related to
High-Permea
bility Super
Ultra High
Strength
Al-Si
(advanced)
Science and
Technology
Department
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.income
Finance
Bureau's
subsidy to
urban public
transport
Chenzhou
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 153000.00
Related to
income
Key new
product
projects
Provincial
Science and
Technology
Departmen
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 19999.98
Related to
assets
Financial
allocation for
Strategic
emerging
Industries in
Sichuan
Province
Provincial
Development
and Reform
Commission
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
Yes No 18200.00
Related to
assets
accordance
with the
national
policies and
regulations)
Technical
revamping
items of
300000
production
Line of
Pole-less
Lights Ballast
Provincial
Economic
Commission
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 43000.02
Related to
assets
Intelligent
Engineering
Laboratory of
High
efficiency
Lighting
system
Provincial
Development
and Reform
Commission
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 90000.00
Related to
assets
Foreign trade
SMEs
develop
market
subsidies
Subsidy
Yes No 28000.00
Related to
income
Technical
reconstructio
n
Shijiazhuang
Developme
nt and
Reform
Commission
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
Yes No 133333.34
Related to
assets
and
transformatio
n etc.Grant of
Glass
Substrate
Project
Shijiazhuang
High-tech
Zone
Management
Committee
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 713333.34
Related to
assets
Industry
Development
Fund
Shijiazhuang
High-tech
Zone
Management
Committee
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 233333.34
Related to
assets
Project
finance
discount
Shijiazhuang
Finance
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 15666.66
Related to
assets
Grant of
Industry
Revitalizatio
n and
Technology
Reconstructio
Shijiazhuang
Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
Yes No 3257666.66
Related to
assets
n Project industries
(Obtained in
accordance
with the
national
policies and
regulations)
Provincial
strategic
emerging
industries of
special grant
funds
Shijiazhuang
Development
and Reform
Commission
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 166666.66
Related to
assets
Technology
reconstructi
on Special
funds
Shijiazhuang
Finance
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 1078000.00
Related to
assets
Provincial
strategic
emerging
industries of
special grant
funds
Shijiazhuang
Development
and Reform
Commission
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 1000000.00
Related to
assets
Production
line reward
Shijiazhuang
High-tech
Subsidy
Grants
obtained due
Yes No 753471.70
Related to
assets
fund Zone to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Grant of
Industry
Revitalizatio
n and
Technology
Reconstructio
n Project
Wuhu
Economic
and
Technologica
l
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 116666.64
Related to
assets
Grant of
Government
Infrastructure
（Landrepaymen）
Wuhu
Economic
and
Technologica
l
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 1122300.00
Related to
assets
Equipment
investment
incentive
funds
Yangzhong
City
Development
and Reform
Commission
Award
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 109100.00
Related to
income
Center Wuhu City Award Grants Yes No 100000.00 Related to
Innovation
Team
Support Fund
Finance obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
income
Technology
reward
Jiangsu
Taizhou New
Energy
Management
Committe
Award
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No
36497930.5
0
Related to
income
Wuhu
Economic
and
Technologica
l
Development
Zone
Economic
and Trade
Development
Bureau
Export
Increase
Award
Development
Zone
Economic
and Trade
Development
Bureau
Award
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 114800.00
Related to
income
Development
Zone
Economic
and Trade
Development
Zone
Economic
and Trade
Award
Grants
obtained due
to
conforming
Yes No
13312000.0
0
Related to
income
Development
Bureau
(2012-2016)
Income Tax
Refund
Development
Bureau
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Central Party
Committee
Organization
Department
allocates the
third batch of
support funds
Wuhu
Economic
and
Technologica
l
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Yes No 500000.00
Related to
income
Suqian
Economic
Development
Zone Finance
Bureau talent
introduction
special funds
Suqian
Economic
Development
Zone Finance
Bureau
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Yes No 230000.00
Related to
income
Grant of
Glass-tube
Secondary
Environment
al Protection
Shiijiazhuang
Municipal
Finance
Bureau
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.Yes No 5000.01
Related to
assets
Total -- -- -- -- -- 320000.00
69887507.5
2
--
72.Non-Operation expense
In RMB
Items
Amount of current period Amount of previous period The amount of non-operating
gains & lossed
Donation expense 268500.00 268500.00
Liquidated damages 2038214.22 472448.13 2038214.22
Other 461097.79 130049.52 461097.79
Total 2767812.01 602497.65 2767812.01
73. Income tax
(1) Details of income tax
In RMB
Items Amount of current period Amount of previous period
Current Income tax 266217607.40 180288675.05
Deferred income tax 15913168.84 11225209.48
Total 282130776.24 191513884.53
（2）Accounting profit and tax expense adjustment process
In RMB
Items Amount of current period
Total profit 1176191505.48
Income tax expense at statutory / applicable tax rates 176428725.82
Effect of different tax rates applicable to subsidiaries 59083388.27
Income tax adjustments on prior periods -4817305.09
Effect of non-taxable income 311512.14
Affect the use of deferred tax assets early unconfirmed
deductible losses
-1513452.40
The current period does not affect the deferred tax assets
recognized deductible temporary differences or deductible loss
52637907.50
Income tax expense 282130776.24
.Other comprehensive income
Seen in Note
75.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 2562489.64 47314940.12
Government subsidy 61907216.56 58468830.50
Deposits income 638622319.42 97933974.36
Other 27459273.74 29668.70
Total 730551299.36 203747413.68
Explanation on other cash received in relation to operation activities：
(2)Other cash paid related to operation activities
In RMB
Items Amount of current period Amount of previous period
Deposits income 1021839493.62 752985658.23
Consultation Services fee 30513337.97 13031790.06
Business expenses 17688855.86 3187285.00
Transportation fees 4166872.76 2301143.56
Advertising expenses 5182114.95 3069680.35
Travel expenses 20052329.77 4359728.53
Office expenses 24347292.88 20222253.34
Bank fees 25958.40 4791.60
Shipping fee 13487314.75 2608089.38
Petty cash 9329418.54 1242892.54
Security service charge 862988.91 72000.00
Vehicle charge 193216.07 3120.00
Communication expense 1542212.42 199286.59
Rent water and electricity property 60663860.42 8317828.86
Residual insurance 1204391.96
Labour protection fee 2939306.44 1472973.11
conference fee 2145102.71 664731.28
Traffic expenses 44596072.72 1546078.81
Recruitment fees 138443.69 1037.74
Low-value consumables and repair costs 8087098.53 386017.64
Research and development fee 37388611.51 25648041.28
Information system fee 455883.63 2414.71
Customs and agency fees 616441.07 36410.00
Other financial expenses 6296589.32 22588.12
Other expenses 22417945.63 9290478.07
Total 1336181154.53 850676318.80
Explanation on other cash paid in relation to operation activities：
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Fixed deposit 200000000.00 190962.49
Total 200000000.00 190962.49
Explanation on cash received from other investment activities：
Notes
(4)Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Cash flow 317956820.99 50000000.00
Other 280256.00
Total 318237076.99 50000000.00
Explanation on cash payable from other investment activities：
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
Interest received 210076517.70 133596848.85
Financing lease 280000000.00 103800000.00
Cash flow 75708760.40 224500000.00
Total 565785278.10 461896848.85
Explanation on other cash received in relation to financing activities：
（6）Cash paid related with financing activities
IIn RMB
Items Amount of current period Amount of previous period
Bank commission 2106071.31 1937116.55
Credit guarantee 4076591.14 27620596.86
Bank financing 1900000.00 1130000.00
Financial lease rent 299742705.14 419037111.72
Cash flow 332177258.30 50000000.00
Total 640002625.89 499724825.13
Explanation on cash paid related with financing activities：
76. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
operating activities
-- --
Net profit 894060729.24 685767271.37
Add: Impairment loss provision of assets 1058589.31 -497492.48
Depreciation of fixed assets oil and gas
assets and consumable biological assets
475906123.13 399428761.84
Amortization of intangible assets 42850991.09 9559826.81
Amortization of long-term deferred expenses 10182574.85 4155040.09
Loss on disposals of fixed assets intangible
assets and other long-term assets ("-" for
664826.45 30537.14
gains)
Financial cost 588837294.67 415537608.52
Investment losses -23706518.19 -6676924.21
Decrease in deferred income tax assets 23648059.15 11776372.44
Increased in deferred income tax liabilities 2146288.22 -11805.12
Decrease in inventories 703598779.36 -1025419094.41
Decease in operating receivables -16508886465.22 -2261677453.88
Increase in operating payables 13873256015.60 403077538.11
Cash flows from operating activities 83617287.66 -1364949813.78
2.Significant investment and financing
activities not affecting cash flows
-- --
3．Changes in cash and cash equivalents： -- --
Ending balance of cash 21442933365.47 22463648543.19
Less: Beginning balance of cash equivalents 25114660756.25 25537802101.80
Net increase of cash and cash equivalents -3671727390.78 -3074153558.61
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
in the Current Period Paid in the Current Period
111799996.00
Including： --
Huaxi Nanchong Automobile Co. Ltd. 44800000.00
Zhongcheng national construction co. Ltd. 39999996.00
Shenzhen Sanbao Innovation Intelligent Co. Ltd. 27000000.00
Less：Cash or Cash Equivalent Owned by Subsidiary on the
Purchasing Date
4037901.86
Including： --
Huaxi Nanchong Automobile Co. Ltd. 3265.51
Zhongcheng national construction co. Ltd. 959251.79
Shenzhen Sanbao Innovation Intelligent Co. Ltd. 3075384.56
Including： --
Received Net Cash Paid by Subsidiary 107762094.14
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Cash or cash equivalents received by the disposal company in the
current year
550000000.00
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co. Ltd. 550000000.00
Less：Cash and cash equivalents held by a controlling subsidiary 156272347.41
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co. Ltd. 156272347.41
Including： --
Net cash received from disposal subsidiaries 393727652.59
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-beginning
I. Cash
21442933365.47 25114660756.25
Including: cash in treasury
460584.36 2461658.94
Bank savings could be used at any time 21287528272.13 24971467452.68
Other monetary capital could be used at any
time
154944508.98 140731644.63
III. Balance of cash and cash equivalents at
the period end
21442933365.47 25114660756.25
77. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year etc.:
78. The assets with the ownership or use right restricted
In RMB
Items Closing book value Causation of limitation
Monetary funds 2351663690.33
Mainly term deposits deposits and partial
litigation freezes
Fixed assets 10433568773.50
Set up the mortgage and the fixed assets of
the financial lease
Intangible assets 350282096.92 Pledge loans
Construction in progress 1210207009.84 Pledge loans
Investment property 66930130.01 Pledge loans
Total 14412651700.60 --
Other notes ：
79. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Items
Closing foreign currency
balance
Exchange rate
Closing convert to RMB
balance
Cash and bank balances
Including：USD 5389780.01 6.6166 35662018.41
Euro 38868.80 7.6515 297404.62
HKD 18233.84 0.8431 15372.95
JPY 251464500.95 0.0599 15066244.11
GBP 2277.81 8.6551 19714.67
Account receivable
Including：USD 1170.41 6.6166 7744.13
Euro
HKD 9694.95 0.8431 8173.81
JPY 1726840023.03 0.0599 103461893.14
Account payable
Including：USD 3625065.37 6.6166 23985607.53
Euro 2989.00 7.6515 22870.33
HKD 906750.01 0.8431 764480.93
JPY 223302422.00 0.0599 13378941.31
Short-term loans
Including：USD 3807370.00 6.6166 25191844.34
(2) Note to overseas operating entities including important overseas operating entities wich should be disclosed
about its principal business place function currency for bookkeeping and basis for the choice. In case of any
change in function currency the cause should be disclosed.
□ Applicable √ Not applicable
. Hedging
81.Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
（1）Business combinations not under common control in the reporting period
In RMB
Name of
Acquiree
Time-point of
Obtained
Equity
Obtained
Cost of
Equity
Ratio of
Obtained
Equity
(100%)
Method of
Obtained
Equity
Purchasing
Date
Determinatio
n Basis on
the
Purchasing
Date
Income of
Acquire from
the
Purchasing
Date to the
End of the
Period
Net Profit of
Acquire from
the
Purchasing
Date to the
End of the
Period
Shenzhen
Sanbao
Chuangxin
Intelligent
Co. Ltd.
May 302018
157750000.
00
67.00%
Merger of
non-identical
controlled
enterprises
May 302018
Acquisition
of contro
736964.91 -1227519.10
Zhongcheng
national
construction
co. Ltd.March
302018
140000000.
00
70.00%
Merger of
non-identical
controlled
enterprises
March
302018
Acquisition
of contro
-665082.13
Huaxi Bus
Co. Ltd.
April 42018
56000000.0
0
100.00%
Merger of
non-identical
controlled
enterprises
April 42018
Acquisition
of contro
4251788.55 773846.32
(2) Consolidation Cost and Goodwill
In RMB
Consolidation Cost
Shenzhen Sanbao Chuangxin
Intelligent Co. Ltd.Zhongcheng national
construction co. Ltd.Huaxi Bus Co. Ltd.
--Cash 157750000.00 140000000.00 56000000.00
Consolidation Cost 157750000.00 140000000.00 56000000.00
Less：Reduction:
Obtained Definable
Net Assets Fair
Proportion
91548329.84 9830031.87 -773762.72
Goodwill/ The
Consolidation Cost is
Less Than the
Obtained Definable
Net Assets Fair
Proportion
66201670.16 130169968.13 56773762.72
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Shenzhen Sanbao Chuangxin
Intelligent Co. Ltd.Zhongcheng national construction
co. Ltd.Huaxi Bus Co. Ltd.
Fair value on
purchase date
Book value on
purchase date
Fair value on
purchase date
Book value on
purchase date
Fair value on
purchase date
Book value on
purchase date
Monetary
fund
127075384.55 127075384.55
959251.79 959251.79 3265.51 3265.51
Account
receivable
203360.00 203360.00
Inventory 31984526.65 18724138.92 3275246.59 3280573.26
Fixed assets 11192806.79 9391876.78 24866.48 24888.64
Intangible
asset
53241307.46 53849371.07
19486104.61 5402067.11
Disposal of
fixed assets
19499.99 19499.99
Prepayment
s
318723.00 318723.00
227138.68 227138.68 585871.75 585871.75
Other
receivable
5297.05 5297.05
350323.23 350323.23 386428.00 386428.00
Other
current
assets
7989998.57 7989998.57
44193.14 44193.14
Deferred
Income tax
assets
154125.90 2110.00
1331.67
Account
payable
4200.64 4200.64 4839563.18 4839563.18
Deferred
Income tax
Liabilities
3765329.44
3522014.92
Advance
Payments
412420.94 412420.94
176000.00 176000.00
Employees’
wage
payable
59926.94 59926.94
1258965.67 1258965.67
Tax payable 8067.95 8067.95 23898.68 23898.68 10343.06 10343.06
Other
account
payable
91280486.44 91280486.44
2259395.34 2259395.34
Net assets 136639298.26 125799357.67 14042902.67 3480902.25 -773762.72 -769767.72
Less：
Minority
shareholders
' equity
45090968.43 41513788.03 4212870.80 1044270.68
Acquire net
assets
91548329.83 84285569.64 9830031.87 2436631.57
-773762.72 -769767.72
Determination method for fair value of the identifiable assets and liabilities:
The acquired company Shenzhen Sanbao Chuangxin Intelligent Co. Ltd. can identify the fair value of net assets
and liabilities based on the evaluation company Wanlong (Shanghai) Asset Appraisal Co. Ltd. issued an
evaluation report.
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the controlduring the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
（6）Other notes
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Combined
party
Proportion of
the profits
Basis
Combination
date
Recognition
basis of
combination
date
Income of the
combined
party from
the beginning
Net profit of
the combined
party from
the beginning
Income of the
merged party
during the
comparison
Net profit of
the combined
party during
the period of
of the year to
the date of
the merger
of the year to
the date of
the merger
period
comparison
Tunghsu（Yingkou）
Optoelectroni
c Display
Co. Ltd.
65.00%
Same parent
company
June 302018
Pay
consideration
control
operation
27289664.9
9
-9555668.76 -5213532.93
（2） Consolidation Cost
In RMB
Consolidation Cost Tunghsu(Yingkou)Optoelectronic Display Co. Ltd.
Cash 195525500.00
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Tunghsu（Yingkou）Optoelectronic Display Co. Ltd.Merger date
End of previous period
Cash and bank balances 49876382.38 85581351.01
Account receivable 26247411.94 27508065.58
27104233.68 23963131.18
Fixed assets 330341703.53 335451284.12
Intangible assets 24988633.63 25314850.99
Prepayments 2483530.03 858504.05
Other receivable 32000.00 2000.00
Other current assets 75603084.09 74056644.01
Construction in process 586201554.22 570609032.67
Deferred Income tax assets 5334663.88 5334663.88
Other non-current assets 1985104.15
Account payable 28970435.09 101667530.90
Notes payable 1164100.00
Advance Payments 11593.50 9537.00
Employees’ wage payable 296037.13 249318.39
Tax payable 1840851.65 280315.37
Interest payable 589174.98 1075377.78
Other payable 187575741.76 124403423.83
Non-current liabilities due 1 year 36316392.68 36316392.68
Long-term loans 420000000.00 425000000.00
Deferred Income 84997214.64 85655410.98
Other non- current liabilities 108000000.00 108000000.00
Net assets 258451655.95 268007324.71
Less：Minority shareholders' equity 90458079.58 93802563.65
Acquire net assets 167993576.40 174204761.10
3. Counter purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities of
the listed companies whether constituted a business and its basis the determination of the combination costs the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
Name
Equity
disposal
price
Equity
disposal
ratio
Disposal
of equity
Loss of
control
point
Determi
ning the
basis for
the loss
of
control
The
differenc
e
between
the
disposal
price and
the share
of the
subsidiar
y's net
assets at
the level
of the
consolid
ated
financial
statemen
t
correspo
nding to
Proporti
on of
remainin
g stocks
at the
date of
loss of
control
The
book
value of
the
remainin
g equity
at the
date of
loss of
control
The fair
value of
the
remainin
g equity
at the
date of
loss of
control
Regainin
g gains
or losses
arising
from
re-measu
rement
of the
remainin
g equity
at fair
value
Determin
ation of
the fair
value of
the
remainin
g equity
at the
date of
loss of
control
rights
and its
main
assumpti
ons
The
amount
of other
compreh
ensive
income
related to
the
atomic
company
's equity
investme
nt
transferr
ed to
investme
nt profit
and loss
the
disposal
of the
investme
nt
Xuyou
Electro
nic
Materia
ls
Technol
ogy
(Wuxi)
Co.
Ltd.
550000
000.00
51.00% Sell
April
282018
Received
consider
ation and
lost
control
-20535
58.36
0.00% 0.00 0.00 0.00 0.00
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Subsidiary Main operation Registered place Business nature
Share-holding ratio
Acquired way
Directly Indirectly
Shijiazhuang
Colour Bulb Co.
Ltd.Shijiazhuang
9 Huanghe Road
Shijiazhuang
High-tech
Industrial
Development
Area
Shijiazhuang
Hebei Province
Photoelectric
display material
81.26% Establish
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.Wuhu
No.36 Daowei 2
Road Wanchun
Street Wuhu
Economy
Technology
Development
Zone
Photoelectric
display material
100.00% Establish
Wuhan Tunghsu
Optoelectronic
Technology Co.Ltd.Wuhan
1/F No.2
Business tower
Huazhong
Shuguang
Software park
No.1Guanshan
RoadDonghu
Development
Zone Wuhan
Photoelectric
display material
100.00% Establish
Beijing Xufeng
Real Estate Co.Ltd.
Beijing
Room C17
Building 1
No.10 Xinghuo
Road Technology
City Fengtai
District Beijing
Real estate
Development
100.00% Establish
Tunghsu（Kunshan）
Display Material
Co. Ltd.
Kunshan
No.500 Pengxi
North Road
Economic
Development
AreaKunshan
Photoelectric
display material
88.89% Establish
Zhengzhou Xufei
Optoelectronic
Technology Co.Ltd.Zhengzhou
66No 3
Jingnan Road
Econornic &
Technology
Development
Zone Zhengzhou
Photoelectric
display material
100.00%
Control
combination
Shijiazhuang
Xuxin
Optoelectronic
Technology
Co.Ltd.
Shijiazhuang
No.377Zhujiang
Road High-tech
Area
Shijiazhuang
Hebei
Photoelectric
display material
100.00%
Control
combination
Beijing Xutan
New Material
Technology Co.Ltd.
Beijing
206 2/F Building
2BNo.80
Xingshikou Road
Haidian District
Industrial
application of
graphene
70.00% Establish
Beijing
Jiangsu Jixing
New Material
Co. Ltd.
Jiangsu
New Material
Industry Zone
Youfang Town
Yangzhong City
Photoelectric
display material
100.00%
Non control
combination
Beijing Tunghsu
Huaqing
Investment Co.Ltd.
Beijng
1201-E18(Area)1
2/FNo.1 6-3
Building
Autornobile
Museum East
Road Fengtai
District Beijing
Investment 70.00% Establish
Fuzhou Tunghsu
Optoelectronic
Technology Co.Ltd.
Fuzhou
(072) Room
109Supervision
Building
Processing trade
Free zone
Fuzhou
Fujian.(No.9
Xinjiang Road
Xincuo Town
Fuqing City)
Photoelectric
display material
87.25% 12.75% Establish
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co.Ltd.Wuhu
Room 302 A floo
rManagement Co
mmittee of Jiangb
ei Industry Zone
Anhui Prov
Equipment and
technical services
100.00% Establish
Shanghai
Tanyuan Huigu
New Material
Technology Co.Ltd.Shanghai
Room 02
2/FNo.3
Building No.28
Jiangcchuan East
Road Minhang
District Shanghai
Industrial
application of
graphene
50.50%
Non control
combination
Shenzhen Xuhui
Investment Co.Ltd.Shenzhen
Room 201 A
building No.1
Qianwan Road
Qianhai
Shenzhen-Hongk
ong Cooperation
Zone Shenzhen
Investment 100.00% Establish
Tunghsu
Construction
Sichuan
No.21 15
Building No.181
Building
Installing
100.00%
Non control
combination
Group Co. Ltd. Erhuan Road
Jinniu District
Chengdu
Shanghai
Sunlong Bus Co.Ltd.Shanghai
A No .2898
Huaning Road
Minhang
District Shanghai
New Energy
Autonobile
100.00%
Non control
combination
Sichuan Xuhong
Optoelectronic
Technology Co.Ltd.Mianyang
No.177 Fubin
Nortth Road
Economic
Development
Zone Mianyang
Photoelectric
display material
100.00%
Control
combination
Shenzhen Sanbao
Innovation
Intelligent Co.Ltd.Shenzhen
28/F Shenye
Shangcheng
Huanggang Road
Hufu Street
Futian District
Shenzhen
R&D and
manufacturing of
robots and
intelligent
electronic devices
67.00%
Non control
combination
Tunghsu
(Yingkou)
Optoelectronic
Display Co. Ltd.
Liaoning
No.19 Xincheng
Street Yingkou
City Liaoning
Photoelectric
display material
65.00%
Control
combination
Explanation on share-holding ratio in subsidiary different from ratio of voting right：
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights：
Controlling basis for the structuring entity included in consolidated range：
Basis on determinning to be a agent or consignor：
Other notes：
Notes：According to the signed agreement Taizhou Tunghsu Graphene Industry Investment Fund Management
Center (limited partnership) sets up the investment decision committee as the highest decision-making organ
which is responsible for making decisions on project investment disinvestment and other matters. The investment
decision committee is made up of five committee memerein the general partner Beijing Tunghsu Huaqing
Investment Co. Ltd. appoints 2 members the limited partner Tunghsu Photo-electricity Technology Co. Ltd.appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou
Jintaiyang Energy Co. Ltd. doesn’t appoint members. And the chairman of committee shall be assumed by the
representative of general partner. The decisions will be valid with the consent of the majority of committee
members (4 votes and above) and the chairman of investment committee has the one-vote veto. As the executive
partner the general partner Beijing Tunghsu Huaqing Investment Co. ltd. assumes unlimited joint liabilities for
the limited partnership’s debts. As the posterity limited partner Tunghsu Photo-electricity Technology Co. Ltd.bears responsibilities for the limited partnership’s debts with its subscribed investment. And Taizhou Jintaiyang
Energy Co. Ltd. as the priority limited partner assumes responsibilities for the limited partnership’s debts with
its subscribed investment.（2）Significant not wholly-owned subsidiaries
In RMB
Name
Holding proportion of
non-controlling interest
Profit or loss attributable
to non-controlling
interest
Dividend declared to
non-controlling interest
Closing balance of
non-controlling interest
Fuzhou Xufu
Optoelectronic
Technology Co. Ltd..
40.00% 6454615.67 119029434.07
Shanghai Tanyuan Huigu
New Material
Technology Co. Ltd.
49.50% -3276208.31 48922792.83
Shenzhen Sanbao
Innovation Intelligent
Co. Ltd.
33.00% -405081.30 44685887.13
Tunghsu (Yingkou)
Optoelectronic Display
Co. Ltd.
11.11% -44707.04 99730691.36
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Name
Year-end balance Year-beginning balance
Current
assets
Non
current
assets
Total
assets
Current
Liabilitie
s
Non
current
liabilities
Total
liabilities
Current
assets
Non
current
assets
Total
assets
Current
Liabilitie
s
Non
current
liabilities
Total
liabilities
Fuzhou
Xufu
Optoelec
tronic
Technolo
gy Co.
Ltd..
761479
050.29
443418
584.41
120489
7634.70
719324
049.52
188000
000.00
907324
049.52
646709
574.39
423862
686.32
107057
2260.71
601135
214.70
188000
000.00
789135
214.70
Shanghai
Tanyuan
Huigu
New
Material
Technolo
gy Co.
Ltd.
243916
45.13
816708
85.30
106062
530.43
722860
5.53
0.00
722860
5.53
298778
54.31
845346
00.13
114412
454.44
647759
8.47
389647.
55
686724
6.02
Shenzhe
n Sanbao
Innovati
on
Intellige
nt Co.
Ltd.
637850
58.35
638424
66.68
127627
525.03
293016
4.51
0.00
293016
4.51
303169
02.09
632433
57.85
935602
59.94
917609
02.27
0.00
917609
02.27
Tunghsu
(Yingko
u)
Optoelec
tronic
Display
Co. Ltd.
795994
353.63
601563
285.70
139755
7639.33
219891
650.51
280000
000.00
499891
650.51
529335
649.08
506767
622.38
103610
3271.46
138034
919.30
0.00
138034
919.30
In RMB
Name
Amount of current period Amount of previous period
Business
income
Net profit
Total
Comprehensi
ve income
Cash flows
from
operating
activities
Business
income
Net profit
Total
Comprehensi
ve income
Cash flows
from
operating
activities
Fuzhou Xufu
Optoelectroni
c Technology
Co. Ltd..
632696266.
30
16136539.1
7
16136539.1
7
-15703750.7
6
46983656.1
8
1844869.14 1844869.14
-21118901.4
8
Shanghai
Tanyuan
Huigu New
Material
Technology
Co. Ltd.
488093.83 -6566421.86 -6566421.86
12587728.4
7
194829.10
20745934.2
3
20745934.2
3
8580349.37
Shenzhen
Sanbao
Innovation
Intelligent
Co. Ltd.
736964.91 -1101997.15 -1101997.15 -730374.74
Tunghsu
(Yingkou)
Optoelectroni
c Display
Co. Ltd.
16409299.1
7
-402363.34 -402363.34
-253855084.
87
-360330.51 -360330.51
2968413.54
1
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Name of
Subsidiary
Main Places of
Operation
Registration
Place
Nature of
Business
Shareholding Ratio (%) Obtaining
Method direct indirect
Yudean Finance Guangzhou Guangzhou Finance 40.00% Equity method
（2）Main financial information of Significant joint venture
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/This period Opening balance/Last period
Current assets 2440811321.54 2682394584.48
Non-current assets 17426928351.70 9907461970.78
Total of assets 19867739673.24 12589856555.26
Current liabilities 14841406072.32 7579701042.91
Total liabilities 14841406072.32 7579701042.91
Attributable to shareholders of the parent
company
5026333600.92 5010155512.35
Share of net assets calculated by stake 2010533440.37 2004062204.94
Book value of equity investment in
associates
2010533440.37 2004062204.94
Business income 105177198.83 75053678.73
Net profit 16178088.57 -39256450.56
Total comprehensive income 16178088.57 -39256450.56
(4) Summary financial information of insignificant joint venture or associated enterprise
Closing balance/This period Opening balance/Last period
Joint venture: -- --
The total number of shares in each of the
following shares
-- --
Associated enterprise： -- --
Total investment book value 130804634.60 126422519.76
The total number of shares in each of the
following shares
-- --
--Net 5365389.05 196087.39
Total comprehensive income 5365389.05 196087.39
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk market risk and liquidity risk.The Business Management Department of the Company management is fully responsible for the determination of
risk management objectives and policies and assumes the ultimate responsibility for the risk management
objectives and policies. The Business Management Department of the Company reviews the effectiveness of the
performed programs as well as the rationality of risk management objectives and policies through monthly work
statement submitted by the Functional Department.The objective of the Company’s engagement in risk management is to obtain a proper balance between the risks
and benefits reduce the risks’ negative impact on the Company's operating performance to the lowest level and
maximize the interests of shareholders and other equity investors. Based on the risk management objectives the
basic strategy of the Company's risk management is to identify and analyze the risks faced by the Company
establish appropriate baseline of risk tolerance conduct risk management as well as timely and reliably supervise
various risks to control the risks within a limited range.
1. Credit Risk
Credit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to perform
its obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company would
make an evaluation on new customers’ credit risk before signing new contracts which includes external credit
rating and bank reference letter (when available) under certain circumstances. The Company sets quota on credit
sale for each customer and such quota is the maximum amount without additional approvals.The company ensures that the company's overall credit risk is within a manageable range through quarterly
audits of existing customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoring
the customer's credit risk according to the customer's credit characteristics of its grouping. Customers who are
rated as "high risk" will be placed on the restricted customer list and the company will be able to credit it in the
next period subject to additional approval otherwise it must be required to pay the corresponding payment in
advance.
2. Market Risk
The market risk of financial instruments refers to the risk that the fair value or future cash flow of the financial
instruments would fluctuate due to the market price changes which includes interest rate risk foreign exchange
risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from
short-term bank loans. The Company meets various short-term financing needs through establishing good
bank-enterprise relationship as well as reasonably designing credit line credit type and credit term to guarantee
the sufficient bank credit line. In addition the Company also reasonably reduces the fluctuation risk of interest
rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses
as far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial
assets and liabilities in the total assets there’s no forward foreign exchange contract or currency swap contract
signed by the Company in January 2018- 2017.The foreign exchange risk faced by the Company mainly comes from the financial assets and financial
liabilities priced by US dollar Yen Euro and GBP . For the amount of foreign currency financial assets and
foreign currency financial liabilities converted into RMB please refer to Note 7. In the notes to the consolidated
financial statements 79 foreign currency monetary items.XI. Disclosure of fair value
1. Ending fair value of the assets and liabiliies measured by fair value
2.Recognized basis for the market price sustaining and non-persistent measured by fair value oon first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure
sustaining and non-persistent on second-order
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII.Related parties and related-party transactions
1. Parent company information of the enterprise
Parent company
name
Registration place Nature Registered capital
Share ratio of parent
company against the
company(%)
Vote right ratio of
parent company
against the
company(%)
Tunghsu Group
No.369 Zhujiang
Road High-tech
Investment
production and R &
31.8billion 15.97% 21.85%
zone Shijiazhuang D etc.
Explanation on parent company of the enterprise
Ultimate controller of the Company is Li Zhaoting
2.Subsidiary of the Enterprise
See details to Notes IX Situation of the enterprise subsidiaries refer to the Notes.
3.Cooperative enterprise and joint venture
See Notes IX.Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or
occurred in pervious period：
Name Relation of other Related parties with the company
CUHK international business factoring co. Ltd Associated enterprise
Tunghsu Group Finance Co. Ltd. Associated enterprise
Tunghsu(Deyang) Graphene Industry Development Fund
Partnership (Limited Partnership)
Associated enterprise
Zibo Bus Co. Ltd. Associated enterprise
4.Other related party
Other related party Relationship with the Enterprisse
Tunghsu Technology Group Co. Ltd. The shareholders of the company
Tunghsu Optoelectronic Investment Co. Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic vacuum Glass Co. Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Large-diameter plastic tube Co. ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co. Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Xuming Tube Co. Ltd. Controlled by the same actual controller
Shijiazhuang Baodong Electronic Co.Ltd. Controlled by the same actual controller
Hebei Baoshi Lighting Co. Ltd. Controlled by the same actual controller
Jinzhou Xulong New Material Technology Co. Ltd. Controlled by the same actual controller
Hebei Decoration Printing Machine Co. Ltd. Controlled by the same actual controller
Chengdu Optoelectronic Technology Co. Ltd. General Manager: Li Zhaotin
Shijiazhuang Xuling Electronic Technology Co. Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic Group Co. Ltd. Controlled by the same actual controller
Tibet Financial Leasing Co. Ltd. Controlled by the same actual controller
Tunghsu Group Finance Co. Ltd. Joint venture of the company
Yinchuan Fengxiang Street Underground integrated Management
Co. Ltd.
Controlled by the same actual controller
Yixian Xuhua Park Construction Development Co. Ltd. Controlled by the same actual controller
Guangdong Huakai Real estate Development Co. Ltd. Controlled by the same actual controller
Li Qing The spouse of the actual controller
Kunming Tunghsu Qiming Investment Development Co. Ltd. Controlled by the same actual controller
Aahui Tunghsu Dabieshan Agricultural Technology Co. Ltd. Controlled by the same actual controller
Dongguan Yijiu Real Estate Development Co. Ltd. Controlled by the same actual controller
Tunghsu North Real Estate（Beijing）Co. Ltd. Controlled by the same actual controller
Tunghsu Technology Development Co. Ltd. Controlled by the same actual controller
Tunghsu Lantian New Energy Co. Ltd. Controlled by the same actual controller
Fujian Hengda Investment Co. Ltd. Controlled by the same actual controller
Hunan Baoan Hongji Real Estate Development Co. Ltd. Controlled by the same actual controller
Huiyin Jinkong Asset Management Co.Ltd. Controlled by the same actual controller
Huidong Baoan Hongji Real Estate Development Co. Ltd. Controlled by the same actual controller
Huidong Baoan Jinan Real Estate Development Co. Ltd. Controlled by the same actual controller
Shenzhen Hongji Property Management Co. Ltd. Controlled by the same actual controller
Chengzhou Zhexu Real Estate Co. Ltd. Controlled by the same actual controller
Zhangzhou Shenghuawu Real Estate Development Co. Ltd. Controlled by the same actual controller
Chongqing Tunghsu Qide Real Estate Co. Ltd. Controlled by the same actual controller
Baoshi Group Industry & Trade Company Mineral Water
Factory
Controlled by the same actual controller
Shijiazhuang Tunghsu Machinery Co.Ltd. Controlled by the same actual controller
Shanghai Anxuan Autormation Technology Co. Ltd. Controlled by the same actual controller
Tibet Xuri Asset Management Co. Ltd. Controlled by the same actual controller
Beijing Hexie Guanglu Technology Co. Ltd. Controlled by the same actual controller
Chengdu Taiyisi Technology Co. Ltd. Controlled by the same actual controller
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
In RMB
Related party Content Current amount Approval trading limit Whether over the Last amount
trading limit(Y/N)
Baoshi Group Security fees 360500.00
Anhui Tunghsu
Dabie Mountain
Agricultural
Technology Co.Ltd.Tea oil 28800.00
Shijiazhuang
Baoshi Zhonghe
Steel Plastic Shape
Co. Ltd.
Material 4000000.00
Shijiazhuang
Baoshi Electronic
vacuum Glass Co.Ltd.Mechanical &
Electrical
Equipment
980000.00
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Beijing Hexie Guanglu
Technology Co. Ltd.
Efficient lightbulb 287179.49
Chengdu Taiyisi Technology
Co. Ltd.
Efficient lightbulb 23131.62
Chengdu Optoelectronic
Technology Co. Ltd.
Efficient lightbulb 13203.41
Chengdu Optoelectronic
Technology Co. Ltd.Traction roll project 611459.82 504871.80
Dongguan Yijiu Real Estate
Development Co. Ltd.
Construction Engineering 431182.25
Tunghsu North Real Estate
(Beijing) Co. Ltd.
Efficient lightbulb 40528.38
Tunghsu North Real Estate
(Beijing) Co. Ltd.
Graphene 48801.64
Tunghsu Group Efficient lightbulb 1589885.32
Tunghsu Technology
Development Co. Ltd.
Construction Engineering 3794623.64
Tunghsu Technology Group
Co. Ltd.
Efficient lightbulb 811.97
Tunghsu Technology Group
Co. Ltd.
Graphene 2735.05
Tunghsu Lantian New
EnergyCo. Ltd.
Construction Engineering 2719618.11
Fujian Hengda Investment
Co.Ltd.
Construction Engineering 2745454.55
Fujian Hengda Investment
Co.Ltd.
Graphene 15404.96
Guangdong Huakai Real Estate
Development Co. Ltd.
Construction Engineering 19945292.12 7565972.68
Hebei Baoshi Lighting Co. Ltd. Efficient lightbulb -37264.96
Hunan Baoan Hongji Real
Estate Development Co. Ltd.
Construction Engineering 229566.55
Huiyin Jinkong Asset
Management Co. Ltd.
Efficient lightbulb 270305.10
Huidong Baoan Hongji Real
Estate Development Co. Ltd.
Construction Engineering 46614031.74
Huidong Baoan Jinan Real
Estate Development Co. Ltd.
Construction Engineering 46435095.47
Kunming Tunghsu Qiming
Investment Development Co.ltd.
Construction Engineering 140707948.79
Shenzhen Hongji Property
Management Co. Ltd.
Efficient lightbulb 263333.34
Shengzhou Zhezhao Real Estate
Co. Ltd.
Construction Engineering 35168074.85
Shengzhou Zhezhao Real Estate
Co. Ltd.
Graphene 13641.03
Shijiazhuang Baoshi
Large-diameter plastic tube Co.ltd.
Construction Engineering 594000.00
Yixian Xuhua Park
Construction Development Co.
Ltd.
Construction Engineering 39616134.40 7783800.00
Yinchuan Fengxiang Street
Underground integrated
Management Co. Ltd.
Construction Engineering 45273158.21 97789036.93
Zhangzhou Huawu Real Estate
Development Co. Ltd.
Construction Engineering 22413913.92
Zhangzhou Huawu Real Estate
Development Co. Ltd.
Efficient lightbulb 6974.36
Chongqing Tunghsu Qide Real
Estate Co. Ltd.
Construction Engineering 18348758.40
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
Name of the
employer
Name of the
undertaker
Asset situation of
the undertaker
Start date Terminating date Pricing basis
Gains from the
deal in report
period
Tunghsu Group
Yingkou Coastal
Development
Construction Co.
Ltd.Minmetals
(Yingkou)
Industrial Park
Development
Co. Ltd.
Tunghsu
Optoelectronic
Technology Co.Ltd.Tunghsu
(Yingkou)
Optoelectroric
Display Co. Ltd.
January 12012 June 302018 Notes1 250000.00
Notes 1：Trusteeship costs include basic management fees and incentive management fees(0.5 million/years)
including basic management fee of 1 million per year incentive management fees per year managed company
with net operating profit after tax of 5% calculation（Base incentive management fees deduct prior years' losses）
Notes 2: Trusteeship costs include basic management fees and incentive management fees(0.5 million/years)
including basic management fee of 1 million per year incentive management fees per year managed company
with net operating profit after tax of 5% calculation.Notes 3 :On June 30 2018 Tunghsu Optoelectronic Technology Co. Ltd. purchased a 65% stake in Tunghsu
(Yingkou) Optoelectronic Display Co. Ltd. held by Tunghsu Group Co. Ltd. and the equity custody ended.Lists of entrust/contractee
(3) Information of related lease
（4）Status of related party guarantee
As a secured party for the company
In RMB
Guarantor Guarantee amount Start date End date
Execution accomplished
or not
Tunghsu Group Li
Zhaoting
200000000.00 March 152018 May 152019 No
Tunghsu Group Li
Zhaoting
30000000.00 May 222018 May 222019 No
Tunghsu Group 100000000.00 January 312018 December 312018 No
Tunghsu Group Li
Zhaoting
200000000.00 June 262018 June 242019 No
Tunghsu Group Li
Zhaoting
200000000.00 October 262017 October 262018 No
Tunghsu Group Li
Zhaoting
200000000.00 November 302017 November 302018 No
Tunghsu Group 100000000.00 July 312017 July 302018 No
Tunghsu Group Li
Zhaoting
400000000.00 August 152017 August 142018 No
Tunghsu Group Li
Zhaoting
50000000.00 August 32017 August 22018 No
Li Zhaoting 400000000.00 October 192017 October 192018 No
Li Zhaoting 560000000.00 December 152017 December 152018 No
Tunghsu Group 200000000.00 December 222017 December 222018 No
Tunghsu Group 50000000.00 November 12017 October 302018 No
Tunghsu Group 20000000.00 Novermber 162017 November 252018 No
Tunghsu Group 50000000.00 December 12017 November 302018 No
Tunghsu Group 50000000.00 December 282017 December 272018 No
Tunghsu Group 50000000.00 February 272018 February 272019 No
Tunghsu Group 25000000.00 April 282018 April 272019 No
Tunghsu Group 100000000.00 July 72017 July 62018 No
Tunghsu Group 20000000.00 July 262017 July 62018 No
Tunghsu Group 80000000.00 August 12017 August 12018 No
Tunghsu Group 50000000.00 August 292017 August 282018 No
Tunghsu Group 100000000.00 September 252017 September 242018 No
Tunghsu Group 50000000.00 October 92017 October 82018 No
Tunghsu Group 50000000.00 August 302017 August 292018 No
Tunghsu Group 25000000.00 October 192017 October 192018 No
Tunghsu Group 70000000.00 September 222017 September 212018 No
Tunghsu Group 50000000.00 October 122017 October 112018 No
Tunghsu Group 40000000.00 September 292017 September 272018 No
Tunghsu Group 100000000.00 October 262017 October 252018 No
Tunghsu Group Li
Zhaoting
100000000.00 December 292017 December 282018 No
Tunghsu Group 200000000.00 June 112018 June 82019 No
Tunghsu Group 50000000.00 August 242017 August 242018 No
Tunghsu Group Li
Zhaoting
100000000.00 November 132017 November 122018 No
Tunghsu Group Li
Zhaoting
70000000.00 January 112018 December 312018 No
Tunghsu Group Li
Zhaoting
30000000.00 February 132018 February 122019 No
Tunghsu Group Li
Zhaoting
42000000.00 April 102018 October 102018 No
Tunghsu Group Li
Zhaoting
38000000.00 April 112018 October 112018 No
Tunghsu Group 95000000.00 March 192018 March 122019 No
Tunghsu Group 90000000.00 April 122018 April 22019 No
Tunghsu Group 15000000.00 June 122018 May 72019 No
Tunghsu Group 25000000.00 October 202017 October 192018 No
Tunghsu Group Li
Zhaoting Li Qing
299650000.00 June 72016 June 72019 No
Tunghsu Group Li
Zhaoting Li Qing
200000000.00 May 152017 May 152019 No
Tunghsu Group Li
Zhaoting Li Qing
300000000.00 June 22017 June 22019 No
Tunghsu Group Li
Zhaoting Li Qing
115000000.00 October 312017 October 312019 No
Tunghsu Group Li
Zhaoting Li Qing
200000000.00 December 272016 December 272018 No
Tunghsu Group Li
Zhaoting Li Qing
200000000.00 December 292016 December 292018 No
Tunghsu Group Li
Zhaoting Li Qing
100000000.00 December 232016 December 232018 No
Tunghsu Group 194000000.00 December 152016 December 152018 No
Tunghsu Group Li
Zhaoting
100000000.00 March 32017 March 22019 No
Tunghsu Group Li
Zhaoting
204000000.00 March 292017 September 282018 No
Tunghsu Group Li
Zhaoting
199000000.00 February 242017 August 232018 No
Tunghsu Group Li
Zhaoting
97000000.00 April 272017 October 262018 No
Tunghsu Group Tunghsu
Optoelectronic
Investment Co. Ltd. Li
Zhaoting
400000000.00 November 302016 November 302019 No
Tunghsu Group Li
Zhaoting
41666666.62 January 62017 January 62019 No
Tunghsu Group Li
Zhaoting
99000000.00 July 72017 July 62019 No
Tunghsu Group Li
Zhaoting Li Qing.
75000000.00 September 262013 April 112022 No
Tunghsu Group Li
Zhaoting Li Qing.
300000000.00 April 12014 April 112022 No
Tunghsu Group Li
Zhaoting Li Qing.
150000000.00 April 222015 April 112022 No
Tunghsu Group Li
Zhaoting
450000000.00 September 302016 September 292021 No
Tunghsu Group 545000000.00 January 282013 January 272021 No
Tunghsu Group 39699600.00 January 282013 January 272021 No
Tunghsu Group 455000000.00 November 72016 June 202024 No
Tunghsu Group 95000000.00 September 182017 September 152022 No
Tunghsu Group 190000000.00 September 182017 September 152022 No
Tunghsu Group 190000000.00 September 182017 September 152022 No
Tunghsu Group 95000000.00 September 182017 September 152022 No
Tunghsu Group 190000000.00 October 312017 September 152022 No
Tunghsu Group 190000000.00 October 312017 September 152022 No
Tunghsu Group Li
Zhaoting
300000000.00 November 62017 November 62020 No
Tunghsu Group Li
Zhaoting
199000000.00 November 72017 November 72020 No
Tunghsu Group Li
Zhaoting
200000000.00 November 102017 November 152022 No
Tunghsu Group 106813432.82 May 252016 May 202019 No
Tunghsu Group Li
Zhaoting
158352857.29 May 312016 May 302021 No
Tunghsu Group Li
Zhaoting
35118543.68 June 162016 June 162019 No
Tunghsu Group Li
Zhaoting Li Qing.
200000000.00 May 272016 May 262019 No
Tunghsu Group Li
Zhaoting
15000000.00 October 202015 October 152018 No
Tunghsu Group 220000000.00 March 172016 March 172028 No
Tunghsu Group 280000000.00 June 162016 June 162028 No
Tunghsu Group 106000000.00 September 32016 September 22024 No
Tunghsu Group 45000000.00 May 282018 May 282019 No
Tunghsu Group 135000000.00 June 272018 June 272019 No
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
（8）Other related transactions
6. Payables and receivables of the related party
（1）Receivables
In RMB
Name Related party
Amount at year end Amount at year begiing
Balance of Book Bad debt provision Balance of Book Bad debt provision
Account receivable
Chengdu Zhong
Optoelectronic
Technology Co. Ltd
1310860.00 629722.60
Account receivable
Hebei Baoshi Energy
saving lighting
technology Co. Ltd.
43600.00
Account receivable
Guangdong Huakai
Real Estate
Development Co.
Ltd.
10549142.58 19184644.15
Account receivable
Jinzhou Xulong New
Material Co. Ltd.
2449198.07 2449198.07
Account receivable
Kunming Tunghsu
Qiming Investment
Development Co.
Ltd.
61056762.56 29110261.39
Account receivable
Yinchuan Fengxiang
Street
Comprehensive
181832540.69 173363844.40
Construction
Management Co.Ltd.
Account receivable
Huidong Baoan
Jinan Real Estate
Development Co.
Ltd.
22079177.86
Account receivable
Zhangzhou
Shenghua Real
Estate Development
Co. Ltd.
19886092.23
Account receivable
Shengzxhou Zhexu
Real Estate Co.Ltd.
19316896.10
Account receivable
Huidong Baoan
Hongji Real Estate
Development Co.
Ltd.
14107754.19
Account receivable
Chongqing Tunghsu
Real Estate Co.Ltd.
4701058.91
Account receivable
Tunghsu Technology
Development Co.
Ltd.
4174086.00
Account receivable
Fujian Hengda
Investment Co. Ltd.
3020000.00
Account receivable
Tunghsu Lantian
New Energy Co.Ltd.
903222.06
Account receivable
Guangdong Huakai
Real Estate
Development Co.
Ltd.
10549142.58
Account receivable
Huiyin Jinkong
Asset Management
Co. Ltd.
221379.90
Account receivable
Beijing Hexie
Guanglu Technology
Co. Ltd.
138000.00
Account receivable
Shenzhen Hongji
Property
15405.00
Management Co.Ltd.
Account receivable
Hunan Baoan Hongji
Real Estate
Development Co.
Ltd.
12626.16
Prepayments
Hebei Baoshi Energy
saving lighting
technology Co. Ltd.
60000.00 60000.00
Prepayments
Hebei Decoration
Printing Machinery
Co. Ltd.
848396.00 835680.87
Other non-current
assets
Shijiazhuang Baoshi
Electronic vacuum
Glass Co. Ltd.
420000.00
Other non-current
assets
Tunghsu Group 132132857.44 132132857.44
（2）Payables
In RMB
Name Related party Book balance at year end Book balance at year beginning
Account payable
Shijiazhuang XumingTube Co.Ltd.
14948.00 14948.00
Account payable
Shijiazhuang Baoshi Electronic
vacuum Glass Co. Ltd.
986344.16 6344.16
Account payable
Shijiazhuang Baoshi
Large-diameter plastic tube Co.ltd
533942.80 533942.80
Account payable
Shijiazhuang Baoshi
Zhonghe Steel Plastic Shape
Co. Ltd.
4030296.40 30296.40
Account payable
Shijiazhuang Xuling Electronic
Technology Co. Ltd.
1320164.09 1320164.09
Account payable
Shijiazhuang Tunghsu
Machinery Equipment Co. Ltd.
14381.92 14381.92
Advance revenue Tunghsu Group 46176000.00 46176000.00
Advance revenue
Chengdu Zhong Optoelectronic
Technology Co. Ltd
38692.80 38692.80
Advance revenue Yixian Xuhua Park 45562318.00 3852318.00
Construction Development Co.
Ltd.
Advance revenue
Huidong Baoan Hongji Real
Estate Development Co. Ltd.
61371921.90
Other payable Baoshi Group 722000.00
Other payable Tunghsu Group 198526185.51 470099941.55
Other payable
Shijiazhuang Baoshi Electronic
vacuum Glass Co. Ltd.
4739613.30 4700985.30
Other payable
Tibet Xuri Capital Management
Co. Ltd.
8000000.00
Other payable
Huidong Baoan Jinan Real
Estate Development Co. Ltd.
8400.00
Other payable
Chengdu Zhong Optoelectronic
Technology Co. Ltd
6850.92
Other payable
Shijiazhuang XumingTube Co.Ltd.
97031.00 97031.00
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
As of June 302018 there was no significant commitment or contingency in the Group.
2. Contingency
(1) Significant contingency at balance sheet date
1.Chengdu Tongxing Micro-credit Co. Ltd. sued Sichuan Shangwei Construction and Decoration Engineering Co.
Ltd. Wang Shaoqing Lin Suqiong Yang Jianzhong Tunnel Group Engineering Co. Ltd. for the loan contract
and requested a loan amount of RMB 6500000 interest of RMB 877500 penalty interest of 1395333.33
yuan a total of 8772833.33 yuanamong them the company bears the guarantee responsibility. Chuan 0191
Minchu No. 10209 of the People’s Court of Chengdu High-tech Industrial Development Zone (2016). It is first
notified to hold the court session on October 11 2016 and later the judge telephoned the lawyer to postpone the
court session. As of the reporting date no judgment has yet been made and the court sentenced that the 7377500
yuan is to be borne by Shangwei Company Wang Shaoqing Lin Suqiong Yang Jianzhong and R&B Group
Engineering Co. Ltd. are jointly and severally liable for the guarantee. The court froze the amount and interest of
7441788 yuan.
2. Liupanshui Jiuxiang Blasting Engineering Co. Ltd. sued the company due to project construction and requested
the company to pay the project amount of RMB341198.25 and the interest since April 30 2014 (calculated at 6%
per annum) The No. 1929 case of (2017) QIAN 0524 MIN CHU of Zhijin County Court Guizhou Province was
held on June 20 2017. At present the appeal against jurisdiction objection to the Bijie County Intermediate
People’s Court is currently being heard.
3Construction project contract disputes. The plaintiff Xu Wenhua requested amount: 1. Construction and
guarantee funds of RMB 3 million and the calculation of interest losses on the basis of the People's Bank loan
interest rate for the same period from August 10 2013 to the time of payment; 2. The defendant will bear the legal
costs. The No. 992 case of (2017) E 2823 MINCHU of the People's Court of Badong County Hubei Province
was held at 14:40 on June 12 2017. and the appeal against jurisdiction objection to the People’s Court of Enshi
Tujia and Miao Autonomous Prefecture of Hubei Province is currently being heard.
4. Construction project contract disputes. Plaintiff (counterclaim defendant) Zhou Jihong defendant (counterclaim
plaintiff) Daosui Group Engineering Co. Ltd. defendant (counterclaim third party) Road&bridge International
Co. Ltd. defendant (counterclaim third party) Chengdu Beixin Construction Engineering Co. Ltd. The Nanchong
Intermediate People's Court made the No. 29 civil judgment (2013) Nanzhongfaminchuzi on April 21 2017
ruling: Daosui Group paid Zhou Jihong 167034.97 yuan of various amount and interest and the interest should be
accounted from May 16 2013; reject the counter-claims of Daosui Group. After the verdict of first instance
Road&bridge International Co. Ltd. and Bridge Construction Co. Ltd. and Daosui Group Engineering Co. Ltd.both filed an appeal.
5. Labor contract dispute plaintiff: Yang Zaibing who requesting an amount of 333874.00 yuan. Chuan 3330
Minchu No. 16 case of Sichuan Province Dege County People’s Court (2017) was opened at 9: 00 on July 20
2017. On July 25 2017 Chuan 3330 Minchu No. 16 Judgment of Sichuan Province Dege County People’s
Court (2017) ruled that Luo Zhicong paid the plaintiff 333874.00 yuan and Sichuan province Jinkun Labor
Company and R&B Group Guang’an Engineering Co. Ltd. were jointly and severally liable. A second instance
appeal has been filed.
6. Construction project contract disputes. The plaintiff Chongqing Mingyi Labor Service Co. Ltd. requested the
amount of 5 million yuan in project compensation and the interest from August 1 2011. The No. 2370 Case of
(2017) CHUAN 1130 MINCHU of the People's Court of Shunqing District of Nanchong City was held at 15:30
on July 26th 2017 and the case was transferred to the Intermediate People's Court of Chengdu for railway
transportation.
7. Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co. Ltd. Defendant: Daosui
Group Engineering Co. Ltd. Road&bridge International Co. Ltd. Third Party: Earth and Rock Engineering
Branch of Sichuan Nanchong Hongcheng Construction Engineering Co. Ltd. Litigation Request: Litigation
request: Daosui Group Engineering Co. Ltd. pays 4260061 yuan for on-site material equipment and interest on
January 23 2011; Road&bridge International Co. Ltd. and the third party bear joint responsibility for payment
within the scope of 2750721.63 yuan of on-site materials and equipment received. The No. 2371 case of (2017)
CHUAN 1302 MINCHU of People's Court of Shunqing District of Nanchong City was held at 15:30 on July 27th
2017 and the case was transferred to the Intermediate People’s Court of Chengdu for railway transportation.
8. Private lending disputes. Plaintiff: Ye Pingyuan defendant: He Yuanyuan Daosui Group plaintiff's request:
immediate repayment of the loan principal amount of 3.3 million yuan and interests of 726000 yuan during the
period overdue interests and penalty interests etc.; a total of 80000 yuan for lawyers’ fees travel expenses
property preservation guarantees etc. The plaintiff's request: immediate repayment of the loan principal of 2.7
million yuan and interest of 972000 yuan during the period overdue interest and penalty interest etc.; payment of
legal fees travel expenses property preservation guarantee fees etc. totaling 50000 yuan. The People’s Court of
Nanan District Chongqing City accepted and issued the No. 5009 and No.5010 notice of respondence to action of
(2017)YU 0108 ZI to Daosui Group on August 3 2018.
9. Dispute on sales contract plaintiff: Building Materials Management Department of Xiaoren Yangliuping Sand
Field Zishi Township Tianquan County who requesting the payment of 2262194.00 yuan for sand and gravel
materials and interest calculated from the date of prosecution to the date of actual payment based on the bank
interest rate for the same period. In the case of Chuan 1825 Minchu No. 668 of Sichuan Tianquan County
People’s Court (2017) R&B group filed a jurisdictional objection. The case is scheduled to open at 9: 00 on
August 18 2017. The appeal for jurisdictional objection is currently being heard.
10.Disputes over compensation for property damages plaintiff: Yan Kaiyuan defendant: Project Management
Department of A2-1 bid of R&B Group Engineering Co. Ltd. Xie Wanyou and Yin Xiuchao the plaintiffs
request an compensation for damages to electromechanical wells water pumps and other losses totaling
182900.00 yuan. No. 01292 case of Helingeer County People's Court (2015) is scheduled to open on December
29 2015.
11.Dispute on construction contract plaintiff: Nanchong Jianan Labor Co. Ltd. defendant: CCCC Road and
Bridge Construction Co. Ltd. third party: R&B Group Engineering Co. Ltd. the plaintiff requests a lawsuit
related to R&B Group: the defendant was ordered to pay 3850838.84 yuan of creditor’s rights and interest
transferred by the third party and the third party was jointly and severally liable. The case of Chuan 1302 Minchu
No. 1489 of Nanchong Shunqing District People’s Court (2017) will open at 15: 30 on June 6 2017. CCCC
Road and Bridge Construction Co. Ltd. raised a jurisdictional objection which is currently being heard.
12.Dispute over right of recourse plaintiff: Liang Honglin requesting 234000.00 yuan i.e. overdue interest
Chuan 1681 Minchu No. 225 case of Huaying Municipal People's Court (2016) was on court on July 21 2017. On
August 8 2017 Chuan 1681 Minchu No. 225 judgment of Huaying Municipal People's Court (2016) ruled that
R&B should return 100000 yuan to plaintiff and calculate interest based on loan interest for the same period
starting from (September 20 2016).
（2）The Company have no significant contingency to disclose also should be stated
The was no significant contingency in the Company..Other
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4.Notes of ohter significant events
XVI. Other signifiant enents
1.The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4.Pension plan
5.Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
（2）Reporting Segment Financial Information
(3) There was no reportable segment or the total amount of assets and liabilities of each part of reportable
segment shall disclose the reason.
（4）Other notes
7. Other important transactions and events have an impact on investors’ decision-making
.Other
XVII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
Category
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision
Book
value
Book Balance Bad debt provision
Book value Amount Proportio
n(%)
Amount Proportio
n(%)
Amount Proportio
n(%)
Amount Proportion(
%)
Account receivables
provided bad debt
provision in credit
risk groups
240668
41.50
100.00%
333978.
91
1.39%
2373286
2.59
24456
691.50
100.00%
619428.9
1
2.53%
23837262.
59
Total
240668
41.50
100.00%
333978.
91
1.39%
2373286
2.59
24456
691.50
100.00%
619428.9
1
2.53%
23837262.
59
Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable √ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
Aging
Amount in year-end
Account reivable Provision for bad debts Proportion%
Within item 1 year
Within credit period 900.00
Subtotal 1 year 900.00
3-4 years 138768.39 69384.20 50.00%
Over 5 years 264594.71 264594.71 100.00%
Total 403363.10 333978.91
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
Name Amount in year-end Amount in year- begin
Other group 23663478.40
（2）Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the
reversed or collected part during the reporting period was of RMB285450.0.Where the current bad debts back or recover significant amounts:
In RMB
Name Back or withdraw money Method
Hebei Shengshi Machinery tools Group Co.Ltd.
285450.00
Total 285450.00 --
（3）The current accounts receivable written-offs situation
（4）The ending balance of other receivable owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB20069912.24 which accounts for 83.39% of the total receivables. The total amount of closing balance for
corresponding accrued bad-debt provision is RMB0.00.
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Category
Amount in year-end Amount in year- begin
Book Balance Bad debt provision
Book
value
Book Balance Bad debt provision
Book value
Amount
Proportio
n(%)
Amount
Proportio
n(%)
Amount
Proportio
n(%)
Amount
Proportion(
%)
Other account
receivables provided
bad debt provision in
credit risk groups
727765
0814.21
100.00%
159010
9.46
0.02%
7276060
704.75
47923
02782.
16
100.00%
1590109
.46
0.03%
47907126
72.70
Total
727765
0814.21
100.00%
159010
9.46
0.02%
7276060
704.75
47923
02782.
16
100.00%
1590109
.46
0.03%
47907126
72.70
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√Applicable□ Not applicable
In RMB
Aging
Amount in year-end
Other receivable Provision for bad debts Proportion(%)
WithinItem 1 year
Within credit period 12411147.86
Within 1 year after credit period 96550.70 4827.54 5.00%
Subtotal 1 year 12507698.56 4827.54
3-4 years 200000.00 100000.00 50.00%
Over 5 years 1485281.92 1485281.92 100.00%
Total 14192980.48 1590109.46
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable□ Not applicable
Name
Closing Balance
Other account reivable Bad debt provision Proportion
Related current account 7235364183.36
Deposit 26693666.66
Personal official borrowing
676970.63
Persona Returnable Insurance
576360.09
Export tax refunds 146652.99
Total 7263457833.73
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB0.00 the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debt provision：
(3) Other account receivables actually cancel after wtite-off
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Related current account 7235364183.36 4728633349.92
current account 14192980.48 28846088.84
Deposit 26693666.66 31693666.66
Personal official borrowing 676970.63 159109.89
Persona Returnable Insurance 576360.09 446555.34
Other 146652.99 2524011.51
Total 7277650814.21 4792302782.16
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Name Nature Year-end balance Age
Portion in total other
receivables(%)
Bad debt provision
of year-end balance
Wuhu Tunghsu
Optoelectronic
Technology Co. Ltd.
Current account 2830661471.94 Within credit period 38.90%
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co. Ltd.
Current account 2503648360.33
Within credit period
34.40%
Shanghai Sunlong
Bus Co. Ltd.
Current account 745000000.00 Within credit period 10.24%
Beijing Xufeng Real
Estate Co. Ltd.
Current account 455852347.30 Within credit period 6.26%
Fuzhou Xufu
Optoelectronic
Technology Co. Ltd.
Current account 282500616.65
Within credit period
3.88%
Total -- 6817662796.22 -- 93.68%
(6) Accounts receivable involved with government subsidies
3.Long-term equity investment
In RMB
Items
End of term Beginning of term
Book Balance
Impairment
provision
Book value Book Balance
Impairment
provision
Book value
Investment in
subsidiaries
23295190195.2
1
378172649.84
22917017545.3
7
21269035359.7
1
378172649.84
20890862709.8
7
Investment in
joint ventures and
associates
2141338074.97 2141338074.97 2129502187.30 2129502187.30
Total
25436528270.1
8
378172649.84
25058355620.3
4
23398537547.0
1
378172649.84
23020364897.1
7
（1）Investment to the subsidiary
In RMB
Name Opening balance Increase Decrease Closing balance
Withdrawn
impairment
provision in the
reporting period
Closing balance
of impairment
provision
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co.Ltd.
290900000.00 290900000.00
Shijiazhuang
Xuxin
Optoelectronic
Technology Co.Ltd
1966568609.92 1966568609.92
Zhengzhou Xufei
Optoelectronic
Technology Co.Ltd.
1791853741.58 1791853741.58
Sichuan Xuhong
Optoelectronic
Technology Co.Ltd.
1221178272.58 800000000.00 2021178272.58
Wuhu Tunghsu
Optoelectronic
Technology Co.Ltd.
4711064000.00 4711064000.00
Fuzhou Tunghsu
Optoelectronic
Technology Co.Ltd.
1745000000.00 1745000000.00
Wuhan Tunghsu
Optoelectronic
Technology Co.Ltd.
3247200.00 690.57 3246509.43
Fuzhou Xufu 24000000.00 24000000.00
Optoelectronic
Technology Co.Ltd.Shenzhen Xuhui
Investment Co.Ltd.
100000000.00 100000000.00
Xuyou Electric
Material
Technology（Wuxi）Co. Ltd.
570628050.30 570628050.30
Tunghsu（Yingkou）
Optoelectroinc
Display Co. Ltd.
167993576.37 167993576.37
Shijiazhuang
Colour Bulb
Co. Ltd
439341956.80 439341956.80 378172649.84
Jiangsu Jixing
New Material Co.Ltd.
222345300.00 71040000.00 293385300.00
Tunghsu（Kunshan）
Display Material
Co. Ltd.
800000000.00 800000000.00
Beijing Xutan
New Material
Technology Co.Ltd.
10500000.00 10500000.00
Beijing Xufeng
Real Estate Co.Ltd.
470000000.00 470000000.00
Tunghsu
Construction
Group Co.Ltd.
3000453728.53 3000453728.53
Shanghai Sunlong
Bus Co. Ltd.
3800000000.00 1400000000.00 5200000000.00
Shenzhen Sanbao
Chuangxin
Inteligent Co. Ltd.
157750000.00 157750000.00
Beijing Tunghsu
Huaqing
3500000.00 3500000.00
Investment Co.Ltd.anghai Tanyuan
Huigu New
Material
Technology Co.Ltd.
73454500.00 73454500.00
Taizhou Tunghsu
graphene Industry
Investment Fund
Management
Cente
25000000.00 25000000.00
Total
21269035359.7
1
2596783576.37 570628740.87
23295190195.2
1
378172649.84
（2）Investment to joint ventures and associated enterprises
In RMB
Name
Opening
balance
Increase /decrease in reporting period
Closing
balance
Closing
balance
of
impairme
nt
provision
Add
investmen
t
Decrease
d
investmen
t
Gain/loss
of
Investme
nt
Adjustme
nt of
other
comprehe
nsive
income
Other
equity
changes
Declarati
on of cash
dividends
or profit
Withdraw
n
impairme
nt
provision
Other
I. Joint ventures
II. Associated enterprises
Zhongda
Chengx
in
Internat
ional
Comm
ercial
Factori
ng Co.
Ltd.
7330696
8.08
2886186
.76
7619315
4.84
Tunghsu(
Deyang)
Graphen
e
1945420
0.71
29527.77
1948372
8.48
Develop
ment
Fund
Partners
hip（LP）
Tunghsu
Finance
Group
2004062
204.94
6471235
.43
2010533
440.37
Zibo Bus
Co. Ltd.
3267881
3.57
2448937
.71
3512775
1.28
Subtotal
2129502
187.30
1183588
7.67
2141338
074.97
Total
2129502
187.30
1183588
7.67
2141338
074.97
（3）Other notes
Long term equity
investment impairment Opening balance Increase Decrease Closing balance
Name
Shijiazhuang Colour
Bulb Co. Ltd
378172649.84 378172649.84
Total 378172649.84 378172649.84
4.Business income and Business cost
In RMB
Items
Amount of current period Amount of previous period
Income Cost Income Cost
Main business 54602917.98 38492540.23 11006532.52 6941391.49
Other business 713064.42 27591148.66 21150871.79
Total 55315982.40 38492540.23 38597681.18 28092263.28
Other notes：
5. Investment income
In RMB
Items Amount of current period Amount of previous period
Investment loss through disposal of
long-term equity investment
11835887.67 -15507683.03
Disposal of investment income from
long-term equity investments
-20628050.30
Other Investment income 13923452.07 22183417.04
Total 5131289.44 6675734.01
6.Other
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current
assets
-664826.45
Government grants recognized in the current
period except for those acquired in the
ordinary course of business or granted at
certain quotas or amounts according to the
country’s unified standards
44668918.09
Gains and losses from assets under trusted
investment or Management
13923452.07 Investment Financing income
Gain/loss from debt reorganization 484207.00
Net gain/loss of current term from
consolidation of subsidiaries under common
control from beginning of term to the
consolidation date
-9555668.76
Business combination under the same
control. Retroactive adjustment
Entrusted with the operating of the trust to
obtain fee income
235849.06
Net amount of non-operating income and
expense except the aforesaid items
2694248.35
Less: .Amount of influence of income tax 6987734.04
Amount of influence of minority interests -2152164.99
Total 46950610.31 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
Profit of the report period Return on net assets . Weighted（%）
Earnings per share
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of
Company.
2.74% 0.15 0.15
Net profit attributable to the
Common stock shareholders of
Company after deducting of
non-recurring gain/loss.
2.59% 0.140 0.120
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards for audit data adjusting differences had been foreign audited should indicate the name of the
foreign institutions
4.Other
XI. Documents available for inspection
1.The original semi-annual report bearing the signature of the Chairman of the Board of Directors of the
Company;
2.The text of the financial report bearing the seal and signature of the person in charge of the Company financial
controller and the person in charge of accounting organ
3. Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the
newspapers as designated by China Securities Regulatory Commission.
4.【Notes】This Report has been prepared in both Chinese and English. In case of any discrepancy the Chinese
version shall prevail.Tunghsu Optoelectronic Technology Co. Ltd.
Chairman:Wang Lipeng
Issue day approved by the Board of Directors：August 30，2018
沪公网安备31011802005267号
