Stock code ：000413200413 Abbreviation：Tunghsu Optoelectronic Tunghsu B Announcement No.：2019-080

Tunghsu Optoelectronic Technology Co. Ltd.The Summary of 2019 Semi-annual Report

August 2019

I. Important Notice

The summary is abstract from full-text of annual report for more details information investors

should found in the full-text of annual report that published on website of Shenzhen Stock

Exchange and other website appointed by CSRC.

Non-standard audit opinion tips

□ Applicable √ Not applicable

The board discussed reporting period ordinary shares profit distribution plan or provident fund to

share capital plan

□ Applicable √ Not applicable

The board approved this reporting period preferred shares profit distribution plan

□ Applicable √ Not applicable

II. Company Information

1、 company profile

Stock abbreviation

Tunghsu Optoelectronic

Tunghsu B

Stock code 000413、200413Stock exchange for listing Shenzhen Stock Exchange

Contact person and contact manner Board secretary Securities affairs Representative

Name Gong Xin Wang Qingfei

Add

No.1 Caiyuan Street Xicheng District

Beijing

No.1 Caiyuan Street Xicheng District

Beijing

Tel 010-63541061 010-63541061

E-mail gongxin_dx@126.com wangqingfei@dong-xu.com

2、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

Reporting period Same period of last year

Changes of this period

over same period of last

year

Operating Gross income（Yuan） 8475089222.93 11129851790.88 -23.85%

Net profit attributable to the shareholders

of the listed company（Yuan）

844176169.98 858296089.08 -1.65%

Net profit after deducting of

non-recurring gain/loss attributable to the

778095326.66 811345478.77 -4.10%

shareholders of listed company（Yuan）

Cash flow generated by business

operation net（Yuan）

594348068.16 83617287.66 610.80%

Basic earning per share(Yuan/Share) 0.15 0.15 0.00%

Diluted gains per share(Yuan/Share) 0.15 0.15 0.00%

Net asset earning ratio（%） 2.57% 2.74% -0.17%

As at the end of the

reporting period

As at the end of last

year

Changes of this

period-end over same

period-end of last year

Gross assets（Yuan） 71378527997.21 72576122859.60 -1.65%

Shareholders’ equity attributable to

shareholders of the listed company（Yuan）

32994457818.10 32521130925.14 1.46%

3. Shareholders and shareholding

In Shares

Total number of common

shareholders at the

period-end

371574(includ ing 354540

shareholdders hoding A shares and

17034 shareholders holding B shares)

Total preference

shareholders with the

voting power recovered at

the end of the reporting

period(if any) (note 8)

0

Shares held by the top 10 shareholders

Shareholder name

Properties of

shareholder

Share

proportion

Quantity

Amount of

tradable shares

with Conditional

held

Pledging or freezing

Status of

the shares

Status of the

shares

Tunghsu Group

Domestic Non

-State-owned legal

person

15.97% 915064091 352006791 Pledge 775563042

Shijiazhuang Baoshi

Electronic Group Co. Ltd.

Domestic Non

-State-owned legal

person

5.80% 332382171

Shanghai Huimao

Enterprise Management

Co. Ltd.

Domestic Non

-State-owned legal

person

4.58% 262626262 262626262 Pledge 80240722

Minsheng Royal Fund

Management Co. Ltd－

-Ping An Bank-Daye

Trust·Zengli 2 single Fund

Other 1.63% 93363625

Trust

Tunghsu Optoelectronic

Technology Co. Ltd.－The

first ESOP

Other 1.27% 72639296

Beixin Ruifeng Fund－

China Merchants Bank－

Daye Trust－Daye

Trust·Profit increase 3

single fund plan

Other 1.08% 62095032

Shenzhen Taianer

Information Technology

Co. Ltd.

Domestic Non

-State-owned legal

person

1.07% 61165682 Pledge 55265682

Zhonghai Trust Co. Ltd.－

Zhonghai Trust－Tunghsu

Optoelectronic ESOP

pooled Fund trust

Other 0.92% 52555280

Kunshan Development

Zone State-owned

Investment Holding Co.Ltd.State-owned legal

person

0.73% 41838269

Yang Haihui

Domestic natural

person

0.55% 31767200

Explanation on shareholders participating in the

margin trading business

Among the top ten shareholders Tunghsu Group Baoshi Group and

Yang Haihui have relationship and constitute persons taking

concerted action. The company does not know whether there is

relationship between other 7 shareholders or whether they are persons

taking concerted action defined in Administrative Measures Relating

to Acquisitions of Listed Companies.

Notes to the shareholders involved in financing

securities (if any)

Not applicable

4. 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.

5. Statement of preffered shares held by top 10 shareholders

□ Applicable √ Not applicable

Report period has no preffered shares statement

6.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 Date Due

Bond

Balance(RMB’0

000)

Interest Rate

2015- corporate bond of Tunghsu

Optoelectronic Technology Co. Ltd

15 Tunghsu bonds 112243 May 192020 95355.8 6.80%

(2) Financial indicators to the end of the reporting period

Ten Thousands yuan

III. Operation situation discussion and analysis

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

In the first half of 2019 under the boost of the “steady growth” policy and a series of reform

measures the Chinese economy successfully resisted the impact of multiple downside risks and

the economy showed a slow and stable pick-up performance. However as the uncertainty of

Sino-US trade disputes increases the global economic downturn is obvious and ensued with zero

interest rate or negative interest rate polic ies the overall economic fundamentals in particular from

the second quarter tend to have a striking feature of decline. Under this situation the company

closely follows the development orientation of national policies seizes the new connotation of

important strategic opportunities actively enhances the ability of scientif ic and technological

innovation revs up the green development and transforms the pressure of accelerating

high-quality economic development into a driving force solid develops the industry and deeply

focuses on development of the fields including the high-technology semiconductor new materials

and equipment manufacturing.

During the reporting period in one respect the Company solidly cultivated the existing industrial

Items

As at the end of the

reporting period

As at the end of last year

YoY+/-（%）he same

period

Debt ratio 52.41% 53.95% -1.54%

Items Reporting period The same period of last year

At the same time rate of

change

EBITDA interest coverage ratio 3.51 3.44 2.03%

structure focused on technological innovation meticulous ly developed the business and products

promoting development through R&D adhere to quality and efficiency and on the other respect

it optimized management and personnel structure reduced the costs and increased the efficiency

thus improving the business performance. In terms of refined management the Company adheres

to the “1+5” all-round target incentive mechanism further highlights the strategic leading position

of technology and product research and development and takes the comprehensive budget

management and financial management analys is as a platform and builds the cadre management

system and the enterprise culture as the cornerstone; with focusing on endogenous development

and internal potential tapping implementing the enhanced assessment and incentives and with

continuous optimizing of organizational configuration and organizational effectiveness the

increasingly strengthening of external market development and industrial synergy it has revved

up the capability of revenue generation profitability efficiency and core competition. In the first

half of 2019 all aspects of the Company's production and operation were steadily advanced

gained with a certain degree of economic benefits. During the reporting period the Company

achieved the operating income of 8.475 billion yuan and realized a net profit of 844 million yuan

attributable to shareholders.The company's each business development status in the first half of 2019:

1. Photoelectric display material business system

(1) Consolidate the main business to achieve stable development and strengthen the leading

position of LCD glass substrates

From the Company's 5th generation of liquid crystal glass substrates to the 8.5th generation of

glass substrates the Company possesses a total of more than 20 production lines which provides a

full range of glass substrate products for downstream panel customers. Utilizing the advantages

and fitting the trend the Company has solidly improved the yield of high-generation glass

substrate production lines and increased the market share. At present the Company's products

have been widely purchased by mainstream panel companies such as BOE Shen Chao

Optoelectronics and Longteng Optoelectronics which are used in various display terminals such

as portable display car LED display computer and home appliances. During the reporting period

the Company optimized and adjusted the industrial structure of glass substrates and revved up the

technological innovation to further consolidate the Company's core competitiveness in the field of

glass substrates.

(2) Distinguished Quality improvement for providing a solid base to promote the OLED flexible

display industry

Fitting the trends based on its own technological advantages the Company has deeply ploughed

its technology research and development and innovation promoting the high-aluminum cover

glass substrate products used in the flexible display f ield and it has gradually entered a good

position with the production line has entered a period of rapid development and the capacity of

high-aluminum cover glass substrate ranked first in China third in the world. During the reporting

period relied on the Company's high-end equipment manufacturing capabilities the Company's

subordinate company-Xu Hong Optoelectronics carried out the independent research and

development and now it has owned the completely independent intellectual property rights with a

good quality production technology. The product has fully covered the cover glass products

ranging from the thickness of 0.1-6mm with the overall product line has a comprehensive yield of

97%-which far exceeds the industry average of 80%. The cover glass and curved glass has

achieved a balanced ratio.It has become an important step for the Company to successfully deploy

the OLED display industry.

(3) Active industrial chain extension and distinct industrial cluster effect

The Company's subordinate company-Tengda Optics continues to expand its optical film business

scale and market share by relying on continuous deepening cooperative relationship with BOE.

During the reporting period in terms of scale it closely follow ed the layout of BOE's industry

and built new plants in Chongqing and Mianyang to supply BOE. From the product it had

strengthened the research and development capabilities gradually extended from the TFT product

field to the OLED flexible display f ield and the number of applicable optical films was increased

sharply as well as providing BOE with the related materials thus laying a technical and market

foundation for the Company's sustained and stable development. The Company further put efforts

internally and externally in the color filters and consolidated the market competitiveness. During

the reporting period upon the continuous improvement of production line technology and quality

level it actively carried out the new product development and customer certification. At present

the Company has established stable cooperative relations with customers including INES and IVO.The sapphire products closely followed the LED industry on the large-size development trend.

During the reporting period the Company actively implemented the large-size product technical

transformation expanded the production capacity of 4-inch substrate products and timely met the

changes in the product demand structure by downstream customers thus providing a solid bas is

for the Company's stable operation.

(4) Vertically advanc ing the integration and development continuing to promote the graphene

industrialization

By continuous ly optimizing the product design the Company strives to create the star products.

As the core industry of Tunghsu Optoelectronic' second take-off development the graphene

industry has been strategically defined with leading path of various graphene preparation

technologies and the realization of high value-added industrial application development such as

"lampwick". The Company's controlling subsidiary-Mingshuo Technology has become one of thefirst six companies selected as responding to the national brand strategy-“New Action for National

Brand Engineering and Service Industry by Xinhua News Agency”. Meanwhile the first

self-developed Industry pioneering-“Graphene cooling LED tube” was awarded the “AladdinLamp Award-” which is regarded as the Oscar of the domestic lighting industry-upon its

outstanding originality and technological advancement which was graded first in the review and

final review and its market sales have reached new highs. In addition the Company's

international cooperation with Manda continued to advance and became the first member of

China's first Manda Graphene Engineering Innovation Center. Cooperated with the team of

Mandano Award scientists by jointly shared the equipment and resources it has jointly promoted

the graphene technology and incubated the graphene industrialization of related products.Meanwhile the Company seized the development opportunities timely adjusted its development

strategy and sales strategy launched several EMC projects in a timely manner and it combined

with new opportunities in the capital market for striving for greater development of the graphene

industry. With the application of relevant key technical achievements the graphene

industrialization application sector is expected to maintain a strong growth momentum and to

contribute the profits to the listed company.

2. Smart manufacturing business system

Be honest and faithful and keeping doing a good job in development continues to steadily develop

the equipment and technology

In recent years the Company's high-end smart equipment has been deeply cultivated and steadily

developed in the f ields of optoelectronic industry chain semiconductor equipment and other

general-purpose equipment which has been benefited from the integration of two technologies

and the promotion of smart manufacturing policies. During the reporting period the Company

consolidated its development strength and achieved the development of its own equipment

technology and industrial upgrading based on the customers’ system requirements for products

and supporting equipment. By utilizing the advanced technology and the complete system of

high-end equipment manufacturing capabilities it further promoted the high value-added business

which has gained a good reputation and stable partners in the domestic high-end customer field.The company expands its multi-dimens ional intelligent manufacturing business develops towards

the direction of smart high-end green and integrated and having a good lay-out of production of

smart robots thus to further accelerate the deep expansion and development of high-end smart

manufacturing.

3. New energy vehicle business

Forward-looking concept and synergy with the main business deepen the harmonious

development of the new energy automobile industry

Under the reshuffle effect of the industry brought by the new energy subsidy policy the

Company's new energy vehicle sector been steadily increasing The company strives to build a

new force in the industry landscape.Under the Company's forward-looking concept and

collaborative development for promoting the energy revolution it deeply cooperates with

Yihuatong to seize the hydrogen fuel bus development opportunities and meanwhile shapes up the

hydrogen fuel cell development technology thus to further improve the industrial synergy effect

of the Company's new energy vehicle business. During the reporting period in the 5th batch of

“Recommended Models for Promotion and Application of New Energy Vehicles” issued by the

Ministry of Industry and Information Technology the number of selected models of Shenlong Bus

accounted for a percentage of 21.1% in the total number of selected models nearly 1/4 of the total

number of models and ranked the top place and also the total number of selected models that meet

the latest subsidy technical standards for 2019 ranked second in the industry. In addition the

Company has been actively accelerating the construction of the new energy automobile industry

base thus to provide a guarantee for the healthy development of the Company's new energy

industry cluster. While striving to develop the business as the scale grew in the business

development stage the Company promptly started to strengthen the business-related auto finance

work thus laying the foundation for the further healthy development.

4. Other value-added services

Stable and sound development construction and installation business and electronic

communication business are conducive to promote profitability

As a supplement to the Company's main business the construction and installation business

involves smart cities sponge cities municipal infrastructure underground integrated pipe

corridors industrial plants land consolidation and many other fields. With the smart domestic

cities development and the continuous improvement of industrialization level the construction and

installation business has been increasingly innovated meanwhile which cooperates with other core

industries of the Company to expand business space in new materials energy conservation and

environmental protection and other fields to promote the Company’s sustainable development

with smart products and quality services. The electronic communication products business

continued to grow rapidly during the reporting period and by utilizing the Company's various

industry business customer resources it further broadened the sales and contributed to improve the

Company's operating income.

2、Maters related to financial report

(1) Reason for changes in accounting policies accounting estimates and accounting methods

as compared to the financial report for the prior year

√ Applicable □ Not applicable

Contents and causes for changes of accounting policy Approval procedures Remarks

On April 30 2019 the Ministry of Finance issued the Notice on

Revising and Issuing the Format of Financial Statements for General

Enterprises in 2019 (CK [2019] No.6) which revised the format of

financial statements for general enterprises and is applicable to the

interim financial statements and annual financial statements for

non-financial enterprises in 2019 and the financial statements for

subsequent periods that implement the Accounting Standards for

Enterprises.

The company will hold the

3rd meeting of

Ninth board meeting and the

2nd meeing of ninth meeing

board of supervisors on

August 302019 to review and

approve the Notices on the

change of accounting policy.On March 31 2017 the Ministry of Finance issued revised

Accounting Standards for Business Enterprises No.22-Recognition

and Measurement of Financial Instruments (CK [2017] No.7)

Accounting Standards for Business Enterprises No.23-Transfer of

Financial Assets (CK [2017] No.8) and Accounting Standards for

Business Enterprises No.24-Hedge Accounting (CK [2017] No.9).

The revised Accounting Standards for Business Enterprises

No.37-Presentation of Financial Instruments (CK [2017] No.14)

(collectively referred to as "New Financial Instrument Standards")

was issued on May 2 2017 requiring domestic listed enterprises to

implement it from January 1 2019. The revised Accounting

Standards for Business Enterprises No.7-Exchange of Non-monetary

Assets (CK [2019] No.8) is implemented on June 10 2019 and the

revised Accounting Standards for Business Enterprises No.12-Debt

Restructuring (CK [2019] No.9) is implemented on June 17 2019.The company will hold the

3rd meeting of

Ninth board meeting and the

2nd meeing of ninth meeing

board of supervisors on

August 302019 to review and

approve the Notices on the

change of accounting policy.

Accounting policy changes arising from the implementation of the new accounting standards for

business enterprises

On April 30 2019The Ministry of Finance issued the Notice on Amending the Format of

Financial Statements of General Enterprises in 2019 (CK No. [2019] 6).

The impact of the company's implementation of this accounting policy on the items and amounts

presented in the previous financial statements is as follows：

Name of affected item in the statements Affected amount of December 31 2018 / 2018

Increase + / decrease - -

Notes receivable +499781503.17

Account receivable +14352781895.39

Notes receivable & account receivable -14852563398.56

Notes payable +1643167026.68

Account payable +8632927106.20

Notes payable & Account payable -10276094132.88

From January 1 2019 the company starts to implement the new financial instrument standards.

This accounting policy change does not involve retrospective adjustment of previous years and

does not affect the company's relevant financial indicators in 2018.

(2)Reason for retrospective restatement to correct major accounting errors during the

reporting period.□applicable √ not applicable

No such cases in the reporting period.

(3) Reason for changes in scope of the consolidated financial statements as compared to the

financial report for the prior year。

√applicable □ not applicable

On June 30 2019 25 subsidiaries and 97 sub-subsidiaries were included in the consolidationscope by the company（Including：12 new Sub-subsidiaries companies were added 2 weredisposed of and 3 were cancelled）For details please refer to Section 10 of the company's 2019

semi-annual report financial report Note IX “Equity in other entities”.Tunghsu Optoelectronic Technology Co. Ltd.

Chairman: Wang Lipeng

Issue day approved by the Board of Directors：August 302019