Tunghsu Optoelectronic Technology Co. Ltd. 2017 Annual Report
Tunghsu Optoelectronic Technology Co. Ltd.2018 Annual Report
April 2019
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 annual report.
All the directors attended the board meeting for reviewing the 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 IX Operation Conditions Discussion and Analysis.The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total
share of 5730250118 for Base on the Company‘s total share capital the Company would distribute cash
dividend to all the shareholders at the rate of CNY 0.70 for every 10 shares(including tax) 0 bonus share
(including tax) and no reserve would be converted into share capital.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Table of Contents
I.Important Notice Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s 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. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Wuhu Equipment Refers to Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd.Xufei Optoelectronic Refers to Zhengzhou Xufei Opteelectronic Technology Co. Ltd.Xuxin Optoelectronic Refers to Shijiazhuang Xuxin Optoelectronic Technology Co. Ltd.Jiangsu Jixing Refers to Jiangsu Jixing New Material Co. Ltd.Shenzhen Xin Ying Tong Refers to Shenzhen Xin Ying Tong Technology Co. Ltd.Tunghsu (Kunshan ) Refers to Tunghsu（Kunshan）Display material Co. Ltd.
Chongqing Jihuateng Refers to Chongqing Jinghuateng Optoelectronic Technology Co. Ltd.
Jiangsu Tunghsu Yitai Refers to Jiangsu Tunghsu Yitai Intelligent Equipment Co. Ltd.Hunan Tunghsu Delai Refers to Hunan Tunghsu Delai Electronic Technology Co. Ltd.Tunghsu Construction Refers to Tunghsu Construction Group Co. Ltd.
Fuzhou Xufu Refers to Fuzhou Xufu Optoelectronic Technology Co. Ltd.
Fuzhou Optoelectronic Refers to Fuzhou Tunghsu Optoelectronic Technology Co. Ltd.
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 Tengda Optical Refers to Suzhou Tengda Optical Technology Co. Ltd.SUNLONG Refers to Shanghai Sunlong Bus Co. Ltd.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Guangxi Sunlong Refers toGuangxi Sunlong Automobile Manufacturing Co. Ltd. （FormerGuangxi Yuanzheng New Energy Automobile Co. Ltd.）
Sanbao Innovation Refers to Shenzhen Sanbao Innovation Intelligence Co. Ltd.
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
OLED Refers to Organic Light-Emitting Diode OLED
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 to
refers to the general name of optical diaphragms such as diffusion
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Registered address
No.9 Huanghe Road Shijiazhuang High-tech Industrial Development Area Shijiazhuang Hebei
Province
Postal code of the Registered
Address
050035
Office Address No.1 Caiyuan Street Xicheng District Beijing
Postal code of the office
address
100053
Internet Web Site www:dongxuguangdian.com.cn
E-mail dxgd@dong-xu.com
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
Contact address
No.1 Caiyuan Street Xicheng District
Beijing
No.1 Caiyuan Street Xicheng District
Beijing
Tel 010-63541061 010-63541061
Fax 010-63541061 010-63541061
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
III. Information disclosure and placed
Newspapers selected by the Company for information
disclosure
China Securities Journal Shanghai Securities NewsSecurities Times and
Hong Kong Commercial Daily
Internet website designated by CSRC for publishing
the Annual report of the Company
http://www.cninfo.com.cn
The place where the Annual report is prepared and
placed
Securities Dept of the Company
IV. Registration changes of the Company
Organization Code No Change
Changes in principal business activities
since listing (if any)
No Change
Changes is the controlling shareholder in
the past (is any)
No Change
V. Other Relevant Information
CPAs engaged
Name of the CPAs Hebei Guanghuacai Guanghua Certified public Accountants LLP.Office address
24/FA BuildingWantong New Word office BuildingNo.2 Fuwai Street Xicheng District
Beijing
Names of the Certified Public
Accountants as the signatories
Qi Zhenghua Meng Xiaoguang
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √Not applicable
Independent financial advisor hired by the Company to exercise constant supervision over the Company during
the Reporting period
√ Applicable □Not applicable
Name Office address Name of sponsor Consistent supervision period
Zhongtian Guofu Securities
Co. Ltd.
Financial Area(North) B
Zhongtian Huizhan
CityChangling North Road
Guanshanhu District Guiyang
Guizhou.
Chen Dongyang Zhang Jin 2017.10.26-2018.12.31
VI. 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Reasons for retrospective restatements:
Business merger under the same control.
2018
2017
Changed over
last year（％）
2016
Before
adjustment
After
adjustment
After
adjustment
Before
adjustment
After
adjustment
Operating revenue（Yuan）
28211700021
.12
17336364158
.13
17276969039
.03
63.29%
7632049549.
25
7631092002.
07
Net profit attributable to the
shareholders of the listed
company（Yuan）
2163607505.
39
1743666827.
25
1730174564.
57
25.05%
1303685863.
90
1301466332.
10
Net profit after deducting of
non-recurring gain/loss
attributable to the shareholders
of listed company（Yuan）
2045875472.
28
1539583478.
72
1534569793.
43
33.32% 961311896.60 961311896.60
Net Cash flow generated by
business operation（Yuan）
388252004.52
1265773428.
34
1253178511.
31
-69.02% 748957164.24 741861295.45
Basic earning per
share(Yuan/Share)
0.38 0.33 0.32 18.75% 0.28 0.28
Diluted gains per
share(Yuan/Share)(Yuan/Share)
0.38 0.33 0.32 18.75% 0.28 0.28
Net asset earning ratio（%） 6.83% 7.09% 6.95% -0.12% 7.55% 7.54%
End of 2018
End of 2017
Changed over
last year（％）
End of 2016
Before
adjustment
After
adjustment
After
adjustment
Before
adjustment
After
adjustment
Gross assets（Yuan）
72576122859
.60
67683329226
.91
68611332346
.16
5.78%
50287380415
.68
51373374293
.43
Net assets attributable to
shareholders of the listed
company（Yuan）
32521130925
.14
30922796455
.46
30941044388
.04
5.11%
23286206822
.68
23325208072
.11
VII.The differences between domestic and international 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
VIII.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 4665570392.15 6464281398.73 6133715988.34 10948132241.90
Net profit attributable to the
shareholders of the listed company
425984601.17 432311487.91 456861464.93 848449951.38
Net profit after deducting of
non-recurring gain/loss attributable
to the shareholders of listed
company
391131962.40 420213516.37 440653348.34 793876645.17
Net Cash flow generated by
business operation
-1057540776.02 1141158063.68 -599044017.62 903678734.48
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.□ Yes √No
IX.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2018) Amount (2017) Amount (2016) Notes
Non-current asset disposal
gain/loss(including the write-off part for
which assets impairment provision is made)
3450757.10 -69697.52 19167.58
Govemment subsidies recognized in current
gain and loss(excluding those closely related
to the Company’s business and granted
under the state’s policies)
124464054.70 101686984.15 356943995.55
Income from the exceeding part between
investment cost of the Company paid for
obtaining subsidiaries associates and
joint-ventures and recognizable net assets
fair value attributable to the Company when
1804209.86
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
acquiring the investment
Gain/loss on entrusting others with
investment or asset management
14623990.55 59041599.98
Net gain and loss of the subsidiary under the
common control and produced from
enterprise consolidation from the beginning
of the period to the consolidation date
-11435425.33 66046481.62 66680503.61
Income from custodian charge obtained
from entrusted operation
707547.18 8973818.33 8022209.26
Net amount of non-operating income and
expense except the aforesaid items
10172838.56 -29905.76 -9601776.32
Other non-recurring Gains/loss items 552086.75
Less :Influenced amount of income tax 20174896.94 22693220.73 52541535.96
Influenced amount of minor shareholders’
equity (after tax)
4628919.46 17351288.93 31172338.08
Total 117732033.11 195604771.14 340154435.50 --
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. Outline of Company Business
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 manufacturer of optoelectronic display materials and a comprehensive service
provider of intelligent manufacturing. In the field of optoelectronic display materials With a liquid crystal glass
substrate production capacity ranked first in China and fourth in the world the Company makes a horizontal
layout in cover glass originals cambered cover glass optical films color filters sapphire and other key
optoelectronic display materials and stands out with an industrial cluster advantage; in high-end equipment
manufacturing the Company takes advantage of the technology spillover effect of its independently developed
complete-set glass substrate manufacturing equipment to fulfill an in-depth exploration for high-end intelligent
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
equipment in the optoelectronic industry chain while extending the high-end equipment manufacturing business to
a variety of areas and acting as its important income and profit source; in new energy automobile the Company
takes Sunlong Bus as carrier to spare no effort to promote the development of such sectors as new energy buses
and logistics vehicles and work hard to build the new energy automobile business to its another important income
and profit source; in addition the Company develops its main businesses in conjunction with its building
installation and electronic communication seen as value-added businesses which supplement its main businesses.I. Optoelectronic Display Materials Business System
1. LCD glass substrate 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. The Company is the only enterprise in
China that masters the two kinds of glass substrate production processes-namely overflow fusion method and the
floating method-at the same time. Currently the Company possesses four production bases of liquid crystal glass
substrate respectively located in Zhengzhou Shijiazhuang Wuhu and Fuzhou covering G5 G6 and G8.5
TFT-LCD liquid crystal glass substrates. The company has 20 liquid crystal glass substrate production lines
(including construction-in-progress and proposed projects) with that the mass production capacity tops first in
China and ranks fourth in the world.
2. Other display material business
To strengthen the competitiveness and profitability of its business of display materials and comply with the
OLED flexible display development trend the Company adopts a horizontal industry train extension strategy.
Since 2015 it has laid out in cover glass originals cambered cover glass optical films color filters sapphire and
other businesses hence its business structure has been optimized and industrial cluster effect has taken shape.
Cover glass is intended for protecting touch modules and display screens. The Company has a float-process
high-aluminum cover glass substrate original production line with a high-aluminum cover glass substrate original
production capacity ranked first in China and third in the world; cambered cover glass is also known as 3D cover
glass and characterized by curving flexibility thinness transparency cleanliness fingerprint resistance dazzle
resistance weathering resistance etc. and can promote the touch feelings of intelligent terminal products. The
cambered cover glass production line with a production capacity of nearly 5 million sheets built by the Company
in 2018 has been available for production and sales in batches. Applicable to flexible display this product is one
of powerful measures taken by the Company to comply with the OLED flexible display development trend; the
Company's optical film products can cover diffusion reflection prism composite prism and other sub-areas and
are mainly used in TFT-LCD backlight; color filter is a key component for LCD colorization and the Company's
staple is G5 color filters; sapphire is extensively applied in LED substrate materials and optical elements among
other fields and the Company's current staples include 2-inch and 4-inch LED substrate products.
3. Graphene preparation and industrialization business
The graphene with excellent optical electrical thermal and mechanical properties has important application
prospects in the material science energy etc. and it is considered to be a revolutionary new material.In recent years the Company has highlighted laying out in one of strategic emerging industries--industrial
application of graphene. In the report period the Company successfully kept pace with University of Manchester
of UK and other famous universities and scientific research institutions in the world regarding industrial
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
application of graphene and sped up improving development of its own products using graphene by
internationally advanced equipment and technical reserves. Based on such four developed industrial product lines
as graphene-based lithium ion battery graphene electric heating graphene energy-saving illumination and
graphene anti-corrosion coating the Company made breakthroughs in techniques of preparation of high-quality
graphene and its derivative raw materials and kept actively exploring new techniques for preparation of graphene
and other two-dimensional materials. At the moment the Company's products of industrial application of
graphene mainly cover all kinds of graphene products graphene-clad anode materials graphene-based lithium ion
battery graphene high-power LED series light graphene intelligent electric heating graphene anti-corrosion
coating graphene-based solid-state flexible lithium ion battery and other products some of which have been
supplied in batches and sold overseas.II. High-end equipment and technical services business
By a powerful independent R&D capacity the Company takes the lead in breaking the international
comprehensive mold regarding production equipment and technology and becomes China's only company that has
a complete-set liquid crystal glass substrate production process and equipment manufacturing capacity at the same
time. After years of development the Company has completed an in-depth exploration for high-end intelligent
equipment in optoelectronic industry chain and kept developing the business market of high-end equipment with a
high technology and additional value by the technology spillover effect of its independently developed
complete-set glass substrate production equipment in the context that equipment substitutes labor and meets
intelligent efficient production in national industrial manufacturing. Step by step it has become a hi-tech
equipment manufacturer that provides design R&D and manufacturing of high-end intelligent equipment
semiconductor equipment and automatic production line equipment for high-end customers in TFT-LCD and
OLED panel display industry. Besides the Company reached out to intelligent platform robotics expected to
render a new driver to steady development of its high-end equipment business through M&A of Sanbao
Innovation in 2018.III. New Energy Bus Business
The Company acquired Sunlong Bus in 2017 marking that it is duly stepping into the new energy bus area. At
the moment Sunlong Bus's new energy automobile products including BEV hybrid and fuel cell and other new
energy commercial vehicles are mainly oriented in Mainland China (save Qinghai and Tibet) and sold in batches
to South Korea Southeast Asia Middle East South America and Africa among other regions. In 2018 Sunlong
Bus was ranked in the eighth place for the eighth time regarding sales; by sub-area Sunlong's new energy
highway bus and bus sales were ranked in the fourth and tenth place respectively. In addition to outstanding sales
Sunlong Bus keeps developing new techniques to replace the prior ones and in hydrogen cell bus manufacturing
in particular Since the first hydrogen fuel cell bus was produced in 2007 it has accumulated years of experience.，
In 2018 the Company made a full range of major types of hydrogen cell buses ranging from 8m to 12m wherein
10m and 12m urban hydrogen cell buses were successfully incorporated into List of Recommended Types of New
Energy Automobiles in Publicity and Application; in intelligent public transportation product manufacturing
Sunlong Bus worked together with DeepBlue Technology to jointly develop an intelligent Panda Bus
implementing scenario-based application of artificial intelligence and offering a new development function for the
Company's new energy automobile business.
IV. Other businesses
1. Construction & installation business
The Company runs its building installation business supplementing its main businesses in a variety of models
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
such as integrated underground pipe gallery municipal infrastructure sponge city and smart city based on other
key sectors provides infrastructure and construction engineering services in new materials energy-saving
environmental protection bridge engineering and other areas and makes intelligent products and quality services
in conjunction with each other to boost its growth.
2. Electronic communication business
The electronic communication business is a replenishment to the Company's main businesses. The Company
integrates high-end equipment and liquid crystal display materials customer resources and uses its mature
marketing channels to keep increasing import and export channels for liquid crystal display modules memory
chips high-end peripheral and complete-built-unit electronic products and render quality integrated services for
customers with personalized needs.II.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No
Fixed assets No
Intangible assets No
Construction in process
Since the first hydrogen fuel cell bus was produced in 2007 it has accumulated years of
experience.Real estate Investment
The investment real estate was attributable to leasing of some properties and other fixed
assets in the current period.
D velopment expenses
The development disbursement increased attributable to an increase in the sales income
business extension and more spending on R&D.Notes receivable & account receivable
The increase in development expenditure is due to the increase in sales revenue and the
expansion of business.Prepayment The expansion of sales and production increases supplies and inventory.Other non-current assets
In order to expand the scale of company development increase the construction and
acquisition of long-term assets.
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
1.Strong ability of independent R & D and innovation
Based on years of industrial development and experience Tunghsu Optoelectronic keeps strengthening its
independent innovation capacity highlights cooperation and exchange with famous national and international
scientific research institutions and specialized universities and colleges and builds an integrated
"industry-university-research" scientific research cooperation mechanism which has founded a national
engineering lab of panel display glass technology and equipment national enterprise technology center
academician workstation graphene research institute etc. to give a powerful technical assurance and R&D
support to its sustainable development.Till this date the Company and its holding shareholders have obtained and applied for more than 2400
independent intellectual properties pertaining to liquid crystal glass substrate high-aluminum float-process cover
glass high-end equipment manufacturing complete-built-unit manufacturing graphene product making etc.Herein the Company's wholly-owned subsidiaries including Wuhu Equipment Wuhu Optoelectronic Zhengzhou
Xufei Shijiazhuang Xuxin and Sichuan Xuhong holding shareholder Tunghsu Group Beijing University of
Technology and Wuhan University of Technology worked together to complete projects of "key techniques for
highly uniform ultra-clean glass substrate for optoelectronic display equipment development and
industrialization" and "complete-set techniques for mass production of high-strength ultra-thin float-process
aluminosilicate screen protection glass application and development" which won the first prize regarding
substrates and second prize regarding covers in the 2018 "National Award for Science and Technology Progress".
2. The scale advantages of core optoelectronic display materials
Till the end of the report period the Company had five liquid crystal glass substrate production bases located
at Zhengzhou Shijiazhuang Yingkou Wuhu and Fuzhou for making a full range of G5 G6 and G8.5 TFT-LCD
liquid crystal glass substrate products with a mass production capacity steadily ranked in the first place in China
and fourth place in the world and production lines for such key optoelectronic display materials as high-aluminum
cover glass color filter and sapphire. As all its production lines are put into production one after another the
Company has seen a year-on-year rise of market share in national optoelectronic display materials its scale
benefit has taken shape and all its key optoelectronic display materials have implemented a sound linkage effect
effectively reinforcing its core competitiveness in optoelectronic display materials raising the right to say in
offering downstream customers and assuring profitability of its key optoelectronic display materials.
3. The advantages of integration of endogenous and extension industrial chains
Relying on the controlling shareholder Tunghsu Group’s more-than-20 years’ experience and technological
accumulation the Company through the endogenous development method gradually grew into a leading
optoelectronic display material supplier and the comprehensive high-end equipment manufacturer in the industry.Meantime the company via the extension method actively explored in the fields of new energy vehicles andgraphene striving to build the Closed Loop of Industrial Chain of “high-end materials— Graphene-basedLithium-ion Battery-New Energy Vehicle". Centering on the main route of utilizing the industrial synergy
directing by realizing the absolute control and advancing by capital means the company aimed to realize the
effect of “1+1>2” and it has successively carried out the horizontal and vertical industrial chain integration for the
optoelectronic display materials chains and the high-end equipment manufacturing industry chains thus adding
new vitality to the rapid development of the company.
4. Synergistic advantages & effects from various business sectors
In the field of optoelectronic display materials the company has successively invested and established
factories in provinces including Hebei Henan Anhui Sichuan JiangsuFujian and Liaoning with the industrial
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
layout having the economies of scale and for one hand it has contributed a large amount of tax revenue to local
government and provided a large number of jobs and for another hand it has maintained close cooperation with
major customers such as BOE. Upon the M&A of Sunlong Bus the Company has set out to invest and build new
energy automobile industry bases in Guangxi Sichuan Jiangsu and elsewhere and conduct profound cooperation
with the preceding areas.the synergy effect between the company's photoelectric display materials and intelligent
manufacturing business gradually became evident thus gradually forming the business model with comprehensive
sales and synergistic effect so that the company’s overall risk resistance capacity and comprehensive
competitiveness have been improved.
5. Highly-efficient management and decision-making mechanism
Since Tughsu Group became the controlling shareholder the company's management system has achieved a
thorough transition from the state-owned enterprise to a private enterprise. The company has continuously
improved its incentive system and remuneration system and the company has garnered a large number of elites
and talents as the company has set up the strict and attractive assessment mechanism rolled out two employee
stock ownership plans and the stock incentives with restrictive-conditions and other flexible and efficient ways to
motivate the talents. Meantime the management accurately and incisively studied and judged the market trends
and industrial development direction quickly and flexibly seized opportunities mobilized the talents and
organized the resources by marketization means enabling that the company efficiently entered the strategic
emerging industries such as new energy vehicle and graphene and snatched the strategic high ground in time.Therefore the company’s highly flexible and efficient management and decision-making mechanism has
continuously spawned the productivity for the company with the advantages becoming more obvious.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
IV. Management’s Discussion and Analysis
I. General
In 2018 Tunghsu Optoelectronic kept forging ahead despite the difficulty and challenge. In the report period
the Company's management and employees made consorted efforts to steadily push forward all its production
and operation activities and advanced all the work concerning operation plans worked out by its board of
directors. In 2018 the Company kept innovating based on the prior results and focused on technical
innovation to proceed with upgrading and growth of the existing industry. In the context that industrial
collaboration and cluster effect drove each other the Company further optimized its industry chain layout in
optoelectronic display materials high-end intelligent manufacturing new energy automobile and graphene
and promoted production capacity and growth to implement rapid and efficient growth. In the report period
the Company took the initiative to blaze new trails in a pioneering spirit and forge ahead with determination.It implemented an operating income of RMB 28.212 billion up 63.29% compared with 2017; it implemented
a net profit attributable to listed company shareholders of RMB 2.164 billion up 25.05% compared with
2017.
(1)Optoelectronic display material business
1. Ever-rising performance driven by advanced glass substrate business
In 2018 an increase in the demand for jumbo display screens at panel market drove an ever-increasing demand
for display screen glass substrates. In the context the Company's glass substrate production agreed with the
demand of liquid crystal panels leading a steady development in its glass substrate business. At the moment the
Company has five liquid crystal glass substrate production bases located at Zhengzhou Shijiazhuang Wuhu
Fuzhou and Yingkou and more than 20 liquid crystal glass substrate production lines covering G5 G6 and G8.5
liquid crystal glass substrate products and can provide high-quality glass substrate products for downstream panel
customers with different dimension needs. In compliance with the development trend and technical reform of
jumbo and multi-screen times the Company effectively yield and output rate of jumbo liquid crystal glass
substrates lowers production cost and boosts stable growth of performance. In the report period the Company
took advantage of strengths of multiple dimensions and types of liquid crystal glass substrate products and full
coverage of major panel manufacturers in Mainland China and Taiwan including BOE Century Technology
(Shenzhen) Corporation Infovision Optoelectronics Shenzhen Tianma AU Optronics etc. to implement a sales
income of RMB 4.716 billion in the year. In the report period the project of "key techniques for highly uniform
ultra-clean glass substrate for optoelectronic display equipment development and industrialization" which the
Company's wholly-owned subsidiaries including Wuhu Equipment Wuhu Optoelectronic Zhengzhou Xufei and
Shijiazhuang Xuxin got involved in won the first prize regarding substrates in the 2018 "National Award for
Science and Technology Progress" awarded by the State Council of the People's Republic of China.
2. Company's accumulation of OLED display glass substrate techniques under a horizontal layout
In the wake of breakthrough in and demand for flexible display techniques on market it is expected that
flexible display screens will boom in the future. In the context the Company complies with the OLED flexible
display screen trend and makes an optimal horizontal layout in high-aluminum cover glass substrate cambered
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
cover glass optical film color filter and other key optoelectronic display materials that apply to flexible display
area. In the report period the Company implemented bulk supply to downstream which became a new
performance growth point step by step.
In 2018 the Company's wholly-owned subsidiary Xuhong Optoelectronics built and put into production and
sales a cover glass production line for cambered display with an annual capacity of nearly 5 million sheets. Its best
product "Panda King" cover glass made a significant breakthrough in flexibility--implementing 360° bending and
breaking the international technical monopoly. Characterized by fall resistance scratch resistance high
transmittance high touch sensitivity etc. "Panda King" won the first prize of 2018 Sichuan Patent Award and was
successfully incorporated into the raw material supply chain of such distinguished terminal brands as Huawei
MIUI LG Lenovo and VIVO through finish machining of such downstream customers as Lens Technology Biel
Optoelectronics Junda Optoelectronics Firstar Panel Technology and Dongguan Xuhong. The cover project of
"complete-set techniques for mass production of high-strength ultra-thin float-process aluminosilicate screen
protection glass application and development" which Xuhong Optoelectronics got involved in won the second
prize regarding covers in the 2018 "National Award for Science and Technology Progress" awarded by the State
Council of the People's Republic of China.
In the report period the Company's first G5 color filter production line for TFT-LCD was put into trial
production effectively raising the additional value of the existing G5 liquid crystal glass substrate products.
3. Acceleration of industrialization of graphene by building an alliance of international giants for cooperation
Seizing the academic commanding height and conducting international industrial cooperation and integrated
linkage the Company entered into a Manchester with British University of Manchester and UG2M to address key
problems in product engineering at the current stage and accelerate improving its own product development
system based on worldwide advanced equipment and top technical reserves of University of Manchester. The
Company established a partnership with UG2M--a British company taking the lead in graphene to jointly drive
industrialization of graphene and technical promotion in this respect and incubate products applied in the
graphene industry laying a foundation for selling products in China and around the world. The "Super Light"
graphene product launched by the Company's holding subsidiaries including Huzhou Mingshuo and Mudanjiang
Mingshuo won bids for roadway lighting projects at Hangzhou Puyang Zhangjiakou Mudangjiang etc.indicating that graphene high-power LED street lamp product has been recognized on market step by step by its
own outstanding advantages to further promote its mass industrialization which will have a positive impact on the
business performance of the Company's graphene business sector. In 2018 the Company's graphene business
sector implemented an operating income of RMB 181 million.(II)Intelligent manufacturing service system
Steady promotion of equipment and technical services with sustainable effort
Based on years of experience in electronic glass equipment manufacturing and rapid growth of China's
high-end equipment manufacturing in recent years and guided by a good policy environment the Company has
completed an in-depth exploration for high-end intelligent equipment in optoelectronic industry chain and shifted
its spending from traditional sectors to strategic emerging sectors and development from the equipment
technology market needed to the business market of high-end equipment with a high technology and additional
value. Step by step it has become a hi-tech equipment manufacturer that provides design R&D and
manufacturing of high-end intelligent equipment semiconductor equipment and automatic production line
equipment for high-end customers in TFT-LCD and OLED panel display industry. The Company spares no effort
to foster and develop the high-end intelligent equipment manufacturing seen as a strategic option to seize
economic and technological development commanding height in the future. In the report period the Company
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
acquired Sanbao Innovation to reach out to intelligent manufacturing service robotics from high-end equipment
manufacturing. As a result of the industrial upgrading the Company improved its competitive edge. And in the
wake of ever-rising market demand the Company took a steady flow of high-end equipment manufacturing orders.
In 2018 the Company's business of high-end equipment and technical services implemented a continuously but
steadily rising operating income of RMB 8.388 billion attributable to orders for high-end equipment including
optoelectronic display equipment and semiconductor equipment concluded with BOE Yuansheng Optoelectronics
China Star Optoelectronics Xiamen Tianma and Shiya Technology among other companies.
(II) New Energy Bus Business
New energy automobile business complying with the situation and forging ahead despite the downturn
Only the toughest grass can stand strong winds; fire is the test of gold. In review of the 2018 new energy bus
market in the context of tighter subsidy policy restricted capacity increase and slowdown in technical updating
and upgrading emerging and booming Sunlong Bus built a new pattern by its own comprehensive strength in this
round of shuffle in the industry. In 2018 Sunlong new energy bus achieved sales revenue of 4.258 billion yuan.
4.258 billion ranked in the eighth place in the industry with an increase of 69.39%. In the report period the
Company's hydrogen cell bus won the bid for the Zhangjiakou downtown bus purchase project to provide green
travel services for citizens of Zhangjiakou during the 2022 Beijing-Zhangjiakou Olympic Winter Games and put
into practice the philosophy of green Olympic Winter Games. Till the end of the report period it covered 8-12m
major types of hydrogen cell buses among which 10m and 12m hydrogen cell city buses were successfully
incorporated into the List of Recommended Types of New Energy Automobiles in Publicity and Application and
many hydrogen cell city buses were displayed at international exhibitions. In the corresponding period the
Company's wholly-owned subsidiary Guangxi Sunlong became a military supplier of Back Service Department of
Central Military Commission driving the Company's new products to be steadily launched on military supply
market and assuring the Company's strategic development. Besides the Company is planning a new energy
automobile industry base layout covering East China West China South China and North China and building a
Tunghsu New Energy Automobile Industry Cluster. After this project is completed and put into production the
Company's new energy automobile business sector will act in line with the situation boosting development of
China's new energy automobile industry and driving development of new energy new materials Internet of
Things automatic drive artificial intelligence and other strategic emerging industries concerned.(III) Other value-added business systems
Progress with maintained stability in conjunction with building installation business and electronic
communication business
Building installation engineering business and electronic communication business supplement the Company's
main businesses. In the report period the Company run its building installation business by providing
infrastructure and construction engineering services in new materials energy-saving environmental protection
bridge engineering and other areas and making intelligent products and quality services in conjunction with each
other in a variety of models such as integrated underground pipe gallery municipal infrastructure sponge city and
smart city based on other key sectors to boost its growth. In addition the Company maintained an ever-rising
momentum in the electronic communication business. Under the industrial collaboration effect the Company
made use of high-end equipment and liquid crystal display materials customer resources and its mature marketing
channels to keep increasing import and export channels for liquid crystal display modules memory chips
high-end peripheral and complete-built-unit electronic products and render quality services for customers with
personalized needs. In 2018 the Company's building installation engineering business and electronic
communication business implemented an operating income of RMB 5.28 billion and RMB 3.63 billion
respectively.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
II. Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2018 2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
revenue
28211700021.12 100% 17276969039.03 100% 63.29%
On industry
Optoelectronic
display material
4715995341.60 16.72% 3385250589.42 19.59% 39.31%
Equipment and
Technology serves
8388418369.14 29.73% 7239942351.91 41.91% 15.86%
Industrial application
of graphene
181389128.68 0.64% 67322912.63 0.39% 169.43%
New energy vehicle 4257501557.67 15.09% 2513425799.56 14.55% 69.39%
Construction
Installation
5280053280.29 18.72% 1896347858.88 10.98% 178.43%
Electronic
communication
products
3629930835.74 12.87% 2141375356.27 12.39% 69.51%
Other 1758411508.00 6.23% 33304170.36 0.19% 5179.85%
On Products
Optoelectronic
display material
4715995341.60 16.72% 3385250589.42 19.59% 39.31%
Equipment and
Technology serves
8388418369.14 29.73% 7239942351.91 41.91% 15.86%
Industrial application
of graphene
181389128.68 0.64% 67322912.63 0.39% 169.43%
New energy vehicle 4257501557.67 15.09% 2513425799.56 14.55% 69.39%
Construction
Installation
5280053280.29 18.72% 1896347858.88 10.98% 178.43%
Electronic
communication
products
3629930835.74 12.87% 2141375356.27 12.39% 69.51%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Other 1758411508.00 6.23% 33304170.36 0.19% 5179.85%
Area
China 25855603599.82 91.65% 16240515360.46 94.00% 59.20%
HongkongMacauan
d Taiwan
2005739741.59 7.11% 1007002901.40 5.83% 99.18%
Overseas 350356679.71 1.24% 29450777.17 0.17% 1089.63%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □ Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Turnover Operation cost
Gross profit
rate(%)
Increase/decrease
of revenue in the
same period of
the previous
year(%)
Increase/decrease
of business cost
over the same
period of
previous year (%)
Increase/decrease
of gross profit
rate over the same
period of the
previous year (%)
On Industry
Optoelectronic
display material
4715995341.60 3745308978.44 20.58% 39.31% 54.72% -7.91%
Equipment and
Technology
serves
8388418369.14 6644128423.07 20.79% 15.86% 24.07% -5.24%
New energy
vehicle
4257501557.67 3301027932.47 22.47% 69.39% 64.56% 2.27%
Construction
Installation
5280053280.29 4774880498.47 9.57% 178.43% 173.49% 1.63%
Electronic
communication
products
3629930835.74 3542442721.95 2.41% 69.51% 69.52% -0.01%
On Products
Optoelectronic
display material
4715995341.60 3745308978.44 20.58% 39.31% 54.72% -7.91%
Equipment and 8388418369.14 6644128423.07 20.79% 15.86% 24.07% -5.24%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology
serves
New energy
vehicle
4257501557.67 3301027932.47 22.47% 69.39% 64.56% 2.27%
Construction
Installation
5280053280.29 4774880498.47 9.57% 178.43% 173.49% 1.63%
Electronic
communication
products
3629930835.74 3542442721.95 2.41% 69.51% 69.52% -0.01%
Area
Chinese Mailand
25855603599.8
2
20954288505.4
7
18.96% 59.20% 65.10% -2.89%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Product classification
In RMB
Industry Items
2018 2017
Increase/Decrease
(%) Amount
Proportion in the
operating costs
(%)
Amount
Proportion in the
operating costs
(%)
Optoelectronic
display material
Operation costs 3745308978.44 16.14% 2420764896.51 17.70% 54.72%
Equipment and
Technology
serves
Operation costs 6644128423.07 28.63% 5354959245.05 39.16% 24.07%
Industrial
application of
graphene
Operation costs 108462263.68 0.47% 27298093.82 0.20% 297.33%
New energy
vehicle
Operation costs 3301027932.47 14.23% 2005947709.45 14.67% 64.56%
Construction
Installation
Operation costs 4774880498.47 20.58% 1745898401.73 12.77% 173.49%
Electronic Operation costs 3542442721.95 15.27% 2089646020.25 15.28% 69.52%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
communication
products
Other Operation costs 1087827974.30 4.69% 29973279.43 0.22% 3529.33%
Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes □ No
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
Name of
Acquirer
Time-point of
Obtained
Equity
Obtained Cost of
Equity
Ratio of
Obtained
Equity
(100%)
Method of
Obtained
Equity
Purchasing
Date
Determination
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
Innovation
Intelligence
Co. Ltd.
May 30
2018
157598587.50 67.00%
Enterprise
consolidation
not under the
same control
May 30
2018
Acquisition of
control
7659108.35
-12733040.1
3
Zhongcheng
National
construction
co. Ltd.May 30
2018
140000000.00 70.00% Enterprise
consolidation
not under the
same control
March 30
2018 Acquisition of
control
-7172706.59
Huaxi
Nanchong
Automobile
Co. Ltd.
April 4
2018
56000000.00 100.00% Enterprise
consolidation
not under the
same control
April 4
2018 Acquisition of
control
(2) Consolidation Cost and Goodwill
In RMB
Consolidation Cost Shenzhen
Sanbao Innovation Intelligence
Co. Ltd.
Zhongcheng National
construction co. Ltd.Huaxi Nanchong Automobile
Co. Ltd.
--Cash 157598587.50 39999996.00 44800000.00
--Other account payable 100000004.00 11200000.00
Total consolidation cost 157598587.50 140000000.00 56000000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Less：Reduction: Obtained
Definable Net Assets Fair
Proportion
88710182.00 6730432.38 83.60
Amount of merging cost which
is less than the fair value
proportion of obtained net
identifiable asset
68888405.50 133269567.62 55999916.40
(3) The identifiable assets and liabilities of acquirer at purchase date
In RMB
Items Shenzhen Sanbao Innovation Intelligence Co. Ltd
Book value on purchase date Fair value on purchase date
Cash and bank balances 127075645.81 127075645.81
Account receivable 203360.00 203360.00
Inventories 26320943.47 18724138.92
Fixed assets 11205970.95 9391876.78
Intangible assets 53241307.46 53849371.07
Prepayments 318723.00 318723.00
Other account receivable 5297.05 5297.05
Other current assets 7989608.01 7989608.01
Deferred income tax asset 154125.90 2110.00
Deferred income tax Liabilities 2352724.68
Advance receipts 410909.49 410909.49
Employees’ wage payable 59926.94 59926.94
Tax payable 7677.39 7677.39
Other account payable 91280486.44 91280486.44
Net assets 132403256.71 125801130.38
Less：Minority interest 43693074.71 41514373.03
Acquire net assets 88710182.00 84286757.35
Continued
Items Zhongcheng National construction co. Ltd. Huaxi Nanchong Automobile
Co. Ltd.
Book value on purchase date Fair value on purchase date
Book value on
purchase date
Fair value on
purchase date
Cash and bank balances 1854947.92 1854947.92 83.60 83.60
Fixed assets 41040.82 44833.14
Intangible assets 14204413.89
Prepayments 284956.45 284956.45
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Other receivable 171120.78 171120.78
Other current assets 28559.54 28559.54
Deferred income tax asset 948.08
Account payable 4200.00 4200.00
Deferred income tax liability 3551103.47
Employees’ wage payable 1261899.22 1261899.22
Other payable 2153881.38 2153881.38
Net assets 9614903.41 -1035562.77 83.60 83.60
Less：Minority interest 2884471.03 -310668.83
Acquire net assets 6730432.38 -724893.94 83.60 83.60
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB10000
Name Proportion Basis
Combination
date
Recognition
basis of
combination
date
income of the
combined party
from the
beginning of the
current period to
the date of
merger
Net profit of the
merged party
from the
beginning of the
current period to
the date of
merger
Income
of the
merged
party
during
the
comparis
on period
Net profit of the
merged party
during the
comparison
period
Tunghsu
(Yingkou)
Optoelectroni
c
Display Co.
Ltd.
65.00% Parent
Company
June 302018 Pay the
consideration
and control
the operation
27289664.99 -11435425.33 160694
29.21
-13043965.22
（2） Consolidation Cost
Consolidation Cost
Tunghsu (Yingkou) Optoelectronic Display Co. Ltd
-Cash 195525500.00
（3） The identifiable assets and liabilities of acquiree at purchase date
Items Tunghsu (Yingkou) Optoelectronic Display Co. Ltd
Merger date
End of previous period
Cash and bank balances 49876382.38 85581351.01
Notes receivable & account receivable 26247411.94 27508065.58
25751148.63 23963131.18
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Fixed assets 330341703.53 335451284.12
Intangible assets 24988633.63 25314850.99
Prepayments 498425.88 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 4807992.36 5334663.88
Other non-current assets 1985104.15 1985104.15
Notes payable & account payable 30134535.09 101667530.90
Advance Payments 11593.50 9537.00
Employees’ wage payable 296037.13 249318.39
Tax payable 1840851.65 280315.37
Interest payable 1075377.78
Other payable 188164916.74 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 256571899.38 268007324.71
3. Disposal of subsidiaries
Name Equity disposal
price
Proportion Disposal way Time of loss of
control
Basis difference
between the
disposal price
and the disposal
of the
investment in
the consolidated
financial
statements at
the level of the
net assets of the
subsidiary
Xuyou
Electronic
Material
Technology
（Wuxi) Co.Ltd.
550million 51.00% Sales April 282018 Received the
consideration
completed the
transfer of
property rights
lost control
3182206.12
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Continued
Name Proportion
of
remaining
equity on
the date of
loss of
control
Book value of
the remaining
equity on the
date of loss of
control
Fair value of
the remaining
equity on the
date of loss of
control
Re-measure
the gain or loss
arising from
the remaining
equity at fair
value
Method for
determining the
fair value of the
remaining equity
on the date of loss
of control and main
assumptions
Amount of other
comprehensive
income related to
Atomic Company's
equity investment
transferred to
investment gains
and losses
Xuyou
Electronic
Material
Technology
（Wuxi) Co.Ltd.
0.00% 0.00 0.00 0.00 0.00 0.00
4. Subsidiary increased due to new establishment in this period
（1）On March 82018Shenzhen Xuhui Investment Holding Co. Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co. Ltd. with the registered capital of RMB
22.7345 million and the paid-up capital of RMB 22.7345 million. Of which Shenzhen Xuhui Investment Holding
Co. Ltd.Subscribet and pays RMB 12 million holding 52.78% of the shares. Jiangxi University of Science and
Technology subscribet and pays RMB 10.7345 million holding 47.22% of the shares.
（2）On March 232018 Mingshuo(Beingjing )Electronic Technology Co. Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB30
million and the paid-up capital of RMB 2 million.
（3）On May 172018 Tunghsu Constructtion Group Co. Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co. Ltd . With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 162018 Mingshuo(Beijing)Electronic Technology Co. Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB 30
million and the paid-up capital of RMB 10000.
（5）On July 262018 Jiangsu Yitai Intelligent Equipment Co. Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co. Ltd. With the registered capital of RMB 20 million Jiangsu Tunghsu Yitai Intelligent Equipment
Co. Ltd. holds 51% of the shares Liu Yang holds 32% of the shares Xiajinlong holds 17% of the shares.
（6）November 62018 Tunghsu Optoelectronic Technology Co. Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co. Ltd. With the registered capital of RMB 1000 million and the paid-up
capital of RMB10 million.
(7)Relevant Situation of Significant Changes or Adjustment of the Business Product or Service in the Company’s
Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of Main Customers
Total sales amount to top 5 customers (Yuan) 6241919653.45
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Proportion of sales to top 5 customers in the annual
sales(%)
22.13%
Proportion of the sales volume to the top five customers
in the total sales to the related parties in the year
0.00%
Information of the Company’s top 5 customers
No Name Amount(RMB) Proportion(%)
1 Customer 1 2009430965.39 7.12%
2 Customer 2 1342569568.48 4.76%
3 Customer 3 1079622920.16 3.83%
4 Customer 4 958146403.75 3.40%
5 Customer 5 852149795.67 3.02%
Total -- 6241919653.45 22.13%
Other Notes :
□ Applicable √Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（Yuan） 4007035725.06
Percentage of total purchase of top 5 suppliers In total
annual purchase(%)
19.11%
Proportion of purchase amount from the top 5 suppliers in
the total purchase amount from the related parties in the
year
0.00%
Information about the top 5 suppliers
No Name Amount（Yuan） Proportion
1 Supplier 1 1148486354.79 5.48%
2 Supplier 2 1017794292.80 4.85%
3 Supplier 3 691932790.49 3.30%
4 Supplier 4 663319885.26 3.16%
5 Supplier 5 485502401.72 2.31%
Total -- 4007035725.06 19.11%
Notes
□ Applicable √Not applicable
3.Expenses
In RMB
2018 2017
Increase/D
ecrease(%
Notes
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
)
Sale expenses
334476301.51 209160183.73 59.91%
Mainly due to the increase in freight costs such
as business growth.
Administration expenses
653479277.58 393125009.94 66.23%
The main reason for the increase in 2018
compared to 2017 is the increase in labor and
depreciation.
Financial expenses 722695173.66 753977500.45 -4.15%
R & D expenses 572089634.30 256991555.91 122.61%
Mainly due to business growth and R&D
investment
4. Research and Development
√ Applicable □ Not applicable
In 2018 through business combination involving enterprises under common control Tunghsu (Yingkou)
Optoelectronic Display Co. Ltd. was acquired hence a retroactive adjustment was made to 2017 data related to
R&D spending wherein the R&D spending on high-end manufacturing increased on account of the Company's
M&A of Shenzhen Sanbao Innovation Intelligence Co. Ltd in June 2018.
Situation of Research and Development Input by the Company
2018 2017 Increase/Decrease(%)
Number of Research and
Development persons (persons)
1735 1397 24.19%
Proportion of Research and
Development persons
21.98% 17.61% 4.37%
Amount of Research and
Development Investment
( Yuan)
596044201.02 385731049.90 54.52%
Proportion of Research and
Development Investment of
Operation Revenue
2.11% 2.23% -0.12%
Amount of Research and
Development Investment
Capitalization ( Yuan)
21724530.97 15397704.97 41.09%
Proportion of Capitalization
Research and Development
Investment of Research and
Development Investment
3.64% 3.99% -0.35%
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2018 2017 Increase/Decrease(%)
Subtotal of cash inflow received
from operation activities
25914974422.73 18081214780.67 43.33%
Subtotal of cash outflow received
from operation activities
25526722418.21 16828036269.36 51.69%
Net cash flow arising from
operating activities
388252004.52 1253178511.31 -69.02%
Subtotal of cash inflow received
from investing activities
4760814599.23 10891847680.49 -56.29%
Subtotal of cash outflow for
investment activities
11405238586.80 16644954442.07 -31.48%
Net cash flow arising from
investment activities
-6644423987.57 -5753106761.58 -15.49%
Subtotal cash inflow received
from financing activities
10927058792.58 16584610295.08 -34.11%
Subtotal cash outflow for
financing activities
14874380555.60 12487573196.50 19.11%
Net cash flow arising from
financing activities
-3947321763.02 4097037098.58 -196.35%
Net increase in cash and cash
equivalents
-10198023465.21 -423591772.55 -2307.51%
Notes to the year-on-year change of the relevant data
□ Applicable√ Not applicable
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□ Applicable√ Not applicable
III.Analysis of Non-core Business
√ Applicable □ Not applicable
In RMB
Amount
Proportion in total
profit
Explanation of cause Sustainable (yes or no)
Investment gains 80925191.79 2.96%
Mainly due to the investment
income of the joint venture
Sustainable
Fair value change
gains and losses
0.00%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Asset impairment 93480733.09 3.41%
Accounts receivable and
impairment of inventories
Non-operating
incme
19063270.76 0.70% Occasional income Not sustainable
Non-operating
expenses
8892705.00 0.32% Sporadic expenditure Not sustainable
Other incme 251303953.08 9.18% Government subsidy Partially unsustainable
III. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2018 End of 2017 Proportion
increase/d
ecrease
Notes to the significant
change Amount
Proportion in the
total assets(%)
Amount
Proportion in the
total assets(%)
Cash and bank
balances
19807094397.16 27.29% 27456759768.86 40.02% -12.73% none
Accounts
receivable
14352781895.39 19.78% 7873419684.42 11.48% 8.30%
none
Inventories 3510786666.85 4.84% 4909570356.36 7.16% -2.32% none
Real estate
Investment
686993881.02 0.95% 58229439.86 0.08% 0.87%
none
Long-term equity
investment
2174347969.22 3.00% 2130640158.90 3.11% -0.11%
none
Fixed assets 9634463323.77 13.27% 11379727456.13 16.59% -3.32% none
Construction in
process
5013941980.61 6.91% 3667972406.42 5.35% 1.56%
none
Short-term loans 8361106651.33 11.52% 5712826382.20 8.33% 3.19% none
Long-term loans 2741589600.00 3.78% 5209726250.77 7.59% -3.81% none
Advance payment
5215414219.51 7.19% 2021119950.95 2.95% 4.24% Expand sales and
production increase
material and inventory.
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
The restricted assets till the end of the report period are set out as follows:
1. Restricted monetary funds amounted to RMB 4890457106.12;
2. The book value of fixed assets arranged with a mortgage or incurred by financial leasing was RMB
9130840228.68 till the end of the report period;
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
3. Intangible assets arranged with a mortgage amounted to RMB 352121698.93;
4. Construction-in-progress arranged with a mortgage amounted to RMB 3143663638.12;
5. Investment real estate as collateral amounted to RMB 678833230.08;
6. Account receivable as collateral amounted to RMB 455136717.34;
7.Inventory as collateral amounted to RMB317769074.78.
IV. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2018(Yuan) Investment Amount in 2017(Yuan) Change rate
6950053928.88 9606133252.12 -27.65%
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
Investm
ent
Way
Investm
ent
Amoun
t
Share
Proport
ion %
Capital
Source
Partner
Investm
ent
Horizo
n
Product
Type
Progres
s up to
Balance
Sheet
Date
Anticip
ated
Income
Gain or
Less or
the
Current
Investm
ent
Whethe
r to
Involve
in
Lawsuit
Date of
Disclos
ure(Not
e 5)
Disclos
ure
Index
Shenzh
en
Sanbao
Innovat
ion
Intellig
ence
Co.
Ltd.High-e
nd
intellig
ent
equipm
ent
Purchas
e
15775
0000.0
0
67.00% Self
Lin
Lude
Zhuang
Yongju
n
Shenzh
en
Sanbao
Innovat
ion and
Technol
ogy
Partner
ship
(Limite
d
Partner
ship)
Long-te
rm
High-e
nd
intellig
ent
equipm
ent
Comple
ted
75000
00.00
-8754
472.52
No
May
29201
8
http://w
ww.cni
nfo.co
m.cn
Tunghs
u
Glass
subst
Purchas
e
19552
5500.0
65.00% Self
Yingko
u
Long-te
rm
Glass
substrat
Comple
ted
0.00
25910
1.72
No
June
13201
http://w
ww.cni
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
（Yingkou）
Optoele
ctronic
Display
Co.
Ltd.rates 0 Coastal
Develo
pment
and
Constru
ction
Group
Co.
Ltd.Minmet
als
(Yingk
ou)
Industri
al Park
Develo
pment
Co.
Ltd.
es 8 nfo.co
m.cn
Shangh
ai
Sunlon
g Bus
Co.
Ltd.New
energy
bus
Increas
e
capital
21000
00000.
00
100.00
%
Rised
funds
No
Long-te
rm
New
energy
bus
Comple
ted
40000
0000.0
0
43330
5590.2
6
No
March
27201
8
http://w
ww.cni
nfo.co
m.cn
Sichua
n
Xuhon
g
Optoele
ctronic
Technol
ogy
Co.
Ltd
Glass
cover
plate
Increas
e
capital
80000
0000.0
0
100.00
%
Rised
funds
No
Long-te
rm
Glass
cover
plate
Comple
ted
98000
000.00
116172
589.38
No
March
27201
8
http://w
ww.cni
nfo.co
m.cn
Tunghs
u
Kunsha
n
Display
Materia
ls Co.
Ltd.Glass
substrat
e
Increas
e
capital
20000
0000.0
0
90.86%
Rised
funds
Kunsha
n
Develo
pment
Zone
Guotou
Holdin
gs Co.
Long-te
rm
Glass
substrat
e
Comple
ted
0.00
-25748
415.55
No
Decem
ber
82018
http://w
ww.cni
nfo.co
m.cn
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.Total -- --
34532
75500.
00
-- -- -- -- -- --
50550
0000.0
0
51523
4393.2
9
-- -- --
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
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In 10000 yuan
Year of
Raising
Way of
Raising
Total
raised
capital
Total
Amount of
the Raised
Fund Used
at the
Total
amount of
Raised
Funds
Amount of
raised
capital of
which the
purpose
was
changed in
the report
period
Accumulat
ive amount
of raised
capital of
which the
purpose
has been
changed
Proportion
of raised
capital of
which the
purpose
has been
changed
(%)
Total
Amount of
the
Unused
Raised
Fund at
the
Current
Period
Use and
Whereabo
uts of the
Unused
Raised
Fund
Amount of
the Raised
Fund with
over 2
Years’
Idling
2013
Directiona
l
add-issuan
ce
503880 25257.77 496727.3 0 0 0.00% 14.79
Not
applicable
0
2015
Directiona
l
add-issuan
ce
800000 55061.01 589306.36 0 0 0.00% 210693.64
Continue
to invest
0
2015
Corporate
bond
100000 0 100000 0 0 0.00% - 0
2016
Directiona
l
add-issuan
695000 153260.89 201682.88 0 0 0.00% 493317.12
Continue
to invest
0
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
ce
2017
Directiona
l
add-issuan
ce
375000 222240.77 266440.79 19200 19200 0.78% 108559.21
Continue
to invest
0
Total -- 2473880 455820.44
1654157.
33
19200 19200 0.78% 812584.76 -- 0
Corporate bonds
In 2018The company strictly accordance with "use of funds raised management system" and "raise funds tripartite regulatory
agreement" to raise funds and special accounts storage use and timely truely accurately and completely disclosure of the deposit
and use of proceeds there is no violation circumstances.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In 10000 yuan
Committed investment
projects and investment
Project
changed(i
ncluding
partial
change)
Total
raised
capital
invested
as
committe
d
Total
investme
nt after
adjustme
nt (1)
Amount
infested
in the
reporting
period
Accumul
ated
amount
invested
at the end
of the
reporting
period(2)
Investme
nt
progress
ended the
reporting
period(%
)(3)=(2)(
1)
Date
when the
project
has
reached
the
predicted
applicabl
e status
Benefit
realized
in the
reporting
period
Has the
predicted
result be
realized
Has any
material
change
taken
place in
feasibility
Committed investment projects
Wuhu Optoelectronic
Panel display glass
substrate Production
line project
No 496106.4 496106.4 25257.77 496727.3 100.13%
Decembe
r 312019
2312.98
Not
applicabl
e
No
Project of Production
Line for the
5th-Generation CF for
TFT-LCD
No 300000 300000 55061 92769 30.92%
Decembe
r 312019
Not
applicabl
e
No
Acquisition for 100%
share rights of Xufei
Optoelectronic
No 177000 177000 0 177000 100.00%
Decembe
r 312015
Yes No
Acquisition for 100%
share rights of Xuxin
Optoelectronic
No 198000 198000 0 198000 100.00%
Decembe
r 312015
Yes No
To supplement the No 125000 125000 0 121537 97.23% Not No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
circulating fund applicabl
e
To supplement the
circulating fund
（Corporate bonds）
No 100000 100000 0 100000 100.00%
Not
applicabl
e
No
Project of Production
Line for the
8.5th-Generation CF
for TFT-LCD
No 695000 695000 153261 201683 29.02%
Decembe
r 312019
Not
applicabl
e
No
New energy bus and
logistics vehicle
production project
No 220000 220000 141132 141132 64.15%
Decembe
r 312019
Not
applicabl
e
No
Production of cover
glass for curved
display
No 110000 90800 64138 64138 70.64%
Decembe
r 312019
Not
applicabl
e
No
High aluminum silicon
cover glass sheet
production line
upgrade project
Yes 0 19200 16170 16170 84.22%
Decembe
r 312019
Not
applicabl
e
No
Payment for
procurement of
Sunlong's equity
consideration
No 40000 40000 0 40000 100.00% 0 Yes No
Payment transaction
fees and intermediary
agency fees
No 5000 5000 800 5000 100.00%
Not
applicabl
e
No
Subtotal of Committed
investment projects
--
2466106
.4
2466106
.4
455819.7
7
1654156
.3
-- -- 2312.98 -- --
Investment of excessive raised capital
No No
Total --
2466106
.4
2466106
.4
455819.7
7
1654156
.3
-- -- 2312.98 -- --
Reason or situation that
not on schedule (on
specific project)
Not applicable
Notes to major changes
in project feasibility
Not applicable
Amount application
and application
progress of the
Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
uncooked proceeds
About the change of
the implementation site
of the projects invested
with the proceeds
Not applicable
Adjustment of the
implementation way of
investment funded by
raised capital
Applicable
Occurred in previous years
The Company convened the 10th meeting of 8th Board of Directors on March 15 2017.Pursuant to the Company's 2016 Non-public Issuance Plan of A-shares the project funded by this
non-public share issuance was the “project of building the 8.5th generation TFT-LCD glass substrate” with
the company’s holding subsidiary-Fuzhou Tughsu Optoelectronic Technology Co. Ltd (hereinafter
referred to as "Fuzhou Tunghsu") as the main implementation body. According to the company's business
development needs it’s planned to add Fuzhou Xufu Optoelectronic Technology Co. Ltd (hereinafter
referred to as "Fuzhou Xufu")-a holding subsidiary to Fuzhou Tunghsu into the main body of
implementation of the project. Each TFT-LCD glass substrate production line is consisted by one
pre-process production line and one post-processing production line. Fuzhou Xufu undertakes the
investment and construction work of two 8.5-generation post-processing production lines in the project
funded by the non-public share issuance with the total amount involved is RMB 823.06 million which
accounts for 11.83% of the total funds raised. The total investment the input amount of funds raised and
the construction total funds raised. The total investment the input amount of funds raised and the
construction content of the above-said project remains unchanged.Investment projects
initial investment and
replacement
Applicable
(1) On April 17 2013，The 36th Meeting of the sixth Board of Directors of the Company has examinedandapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into InvestmentProject with the RAISED Funds” and agreed the company to make arrangement for the funds-raising on
the replacement of the pre-investment based on the plan of non-public issuance of stocks with the
pre-invested self-financing funds of RMB 2077.4263 million replaced by the raised funds. The company’s
independent directors board of supervisors and the sponsor institution-Guangzhou securities issued the
clear statement of consent. A special audit report- No.5002-Zhongxin Cai Guan Hua specially Certified
(2013) pertain to the item of replacing the funds pre-invested in the project which should be invested by
the funds raised was issued by Zhongxincai Guanhua Certified Public Accountants (LLP).
2)On December 29 2015 the 46th meeting of the 7th board of directors and the 18th meeting of the 7thboard of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund toReplace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest ” The
company replaced the self-raising funds in amount of RMB 107.0842 million with the funds raised by the
non-public issuing pertain to the relevant projects which had been audited and certified by by Zhongxincai
Guanhua Certified Public Accountants (special general partnership) with the report of No.5037
Zhongxincai Guanhua specially Certified (2015) provided.
(3) On January 25 2017 the 9th meeting of the 8th board of directors of the Company examined andadopted “Proposal on Using the Raised Fund to Replace the Self-raised Fund of the Advanced InvestedItem to Raise Money for and Invest ” The company replaced the self-raising funds in amount of RMB
110.7478 million with the funds raised by the non-public issuing pertain to the relevant projects which had
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
been audited and certified by by Zhongxincai Guanhua Certified Public Accountants (special general
partnership) with the report of No.105001 Zhongxincai Guanhua specially Certified (2017) provided.
(4) In the 28th interim meeting of 8th Board of Directors held on January 10 2018 of the Company the
Proposal on the Use of Raised Funds to Replace the Self-raised Funds of the Investment Project
Pre-invested Raised Funds was reviewed and passed and the Company used raised funds amounted to
RMB 23.5088 million to replace the self-raised funds of the investment project pre-invested raised funds
including to replace the total self-raised funds RMB 6.6968 million of the investment project pre-invested
in new energy buses to replace the total self-raised funds RMB 881.08 million of the investment project
pre-invested in curved glass and to replace the self-raised funds RMB 8 million for the payment of
transaction fees and intermediary agency fees in advance. which had been audited and certified by by
Zhongxincai Guanhua Certified Public Accountants (special general partnership) with the report of
No.105001 Zhongxincai Guanhua specially Certified (2018) provided.
Using the idle proceeds
to supplement the
working capital on
temporary basis
Applicable
（1）On December 7 2017 the Company convened the 24th meeting of No. 8 Board of Directors to review
and decide that within 12 months from the date of passing the decision by the Board of Directors it agreed
that the Company can use RMB 300000 million idle raised funds to temporarily supplement the
Company's working capital. And would be used to supplement the company working capital temporarily
for not less than 12 months from the approval date by Board of Directors upon which such amount would
be refunded to the special account for the raising fund
it agreed the Company can use maximum RMB 3 000 million (including the principal) idle raised fundsfrom the raised funds RMB 6950 million of “the 8.5th Generation TFT-LCD Glass Substrate ProductionLine Project” to invest in principal-guaranteed products with good liquidity low risk and fixed income.The products invested include principal-guaranteed financial products seven-day notice deposits and
one-day notice deposits etc. using in roll within the above-mentioned capital limit; it agreed that the
Company can use RMB 300000 million idle raised funds to temporarily supplement the Company's
working capital. And would be used to supplement the company working capital temporarily for not less
than 12 months from the approval date by Board of Directors upon which such amount would be
refunded to the special account for the raising fund The board of supervisors independent directors and
sponsor organizations have agreed on this matter. The board of supervisors independent directors and
sponsor organizations have agreed on this matter.。The preceding raised funds were returned and depositedinto the Company's special account for raised funds in full amount on December 6 2018 (refer to the
Announcement on Due Return of Some Idle Raised Funds to Supplement Working Capital published by
the Company at Cninf on December 7 2018). (2) On December 7 2018 the Company's eighth board of
directors convened the fifty-first meeting to deliberate and adopt a Proposal on Provisional Use of Some
Idle Raised Funds for Supplementing Working Capital. On the ground that raised funds met the financial
demand for project construction the Company planned to use idle raised funds in the amount of RMB 3.5
billion to supplement the working capital for the moment and return the funds duly in the event of any
investment project demand for raised funds wherein the period of use of such funds did not exceed 12
months after being deliberated and adopted by the board of directors and such funds would be returned to
the special account for raised funds upon the expiry of the use. Independent directors and board of
supervisors approved this proposal. The Company's sponsor Guangzhou Securities Co. Ltd. inspected and
approved this proposal.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
The amount and
reasons of the fund
surplus in the project
implementation
Not applicable
About application and
status of the proceeds
unused
Used for the construction of the project
Problems existing in
application of the
proceeds and the
information disclosure
or other issues
Not applicable
（3）The changed project of raised proceeds
√ Applicable □Not applicable
In RMB10000
Project after
changed
Correspondi
ng original
project
Total raised
funds plans
to invested
after
changed (1)
Amount
actually
invested in
the period
Accumulati
ve funds
actually
invested
ended as the
period(2)
Investment
program till
the
period-end(
3)=(2)/(1)
Predicted
serviceable
condition
date of
project
Profit
realized in
this year
Reach the
predicted
interest or
not (Y/N)
Project
feasibility
was
changed
hugely or
not after
project
changed
High
aluminum
silicon
cover glass
sheet
production
line upgrade
project
Sheet glass
production
project for
curved
surface
display
19200 16170.4 16170.4 84.22%
December
312019
0
Not
applicable
No
Total -- 19200 16170.4 16170.4 -- -- 0 -- --
Explanation on reasons of the changes
decision-making procedures and
information disclosure (explain by
specific project)
The Company convened the thirty-ninth extraordinary meeting of the eighth board of
directors the twenty-third extraordinary meeting of the eighth board of supervisors and the
2018 fourth extraordinary general meeting of shareholders on June 12 2018 and June 28
2018 respectively deliberating and adopting a Proposal on Alteration of Purpose of Some
Raised Funds. While implementing the "project of production of cover glass for cambered
display" the Company fulfilled the set efficiency in a variety of cost-efficient ways such as
former plant reconstruction and independent development and upgrading of some
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
equipment and concluded that the entire project as completed can save some raised funds
through a prudent demonstration and estimation. Therefore the Company determined to use
raised funds in the amount of RMB 192 million for the "project of production of cover glass
for cambered display" to "upgrade and retrofit high aluminum-silicone alloy cover glass
original production line" to promote its product quality and processing yield and reinforce
its economic benefit.Particular and reasons of fail to
reached the target advance or
anticipated income (explain by
specific project)
Nil
Explanation on major changes on
project feasibility after project
changed
Nol
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(R
MB
10000)
Net
profits
contribu
ted by
the
equities
to the
listed
compani
es from
the
period-b
egin to
the sold
date
(RMB
10000)
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
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 Optoelectronic Technology Co. Ltd. 2018 Annual Report
t of the
net
profits
Tunghsu
Techno
logy
Group
Co.
Ltd.Xuyou
Electron
ic
Material
s
Technol
ogy
(Wuxi)
Co.
Ltd.
April
282018
55000
-1487.5
7
No -0.55%
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
Wuhu
Tunghsu
Optoelectroni
c
Equipment
Technology
Co.Ltd.
Subsidiary
Equipment
and
technology
Service
100000000
0.00
13755386
995.54
293596108
2.24
360126801
4.77
115212638
0.88
993962972.
35
Tunghsu
Construction
Group Co.Ltd.Subsidiary
Construction
、Installation
300000000
0.00
625944055
0.97
351509381
7.83
548228740
3.41
328684486.
40
271566512.
31
Beijing
Xufeng Real
estate Co.Ltd.Subsidiary
Building and
construction
Industry
870000000.
00
183837307
7.62
755833828.
16
108433038
4.90
378362128.
50
283758478.
29
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
Subsidiary
Optoelectron
ic Display
material
165000000
0.00
480247982
9.41
217440124
2.30
138529510
5.07
106711140.
46
88567927.5
9
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shijiazhuang
Xuxin
Optoelectro
nic
Technology
Co. Ltd.
Subsidiary
Glass
substrate
190600000
0.00
330960517
5.07
218152244
8.03
368078577.
55
37096592.7
1
38845710.7
5
Fuzhou
Tunghsu
Optoelectroni
c Technology
Co. Ltd.
Subsidiary
Glass
substrate
200000000
0.00
413733148
3.74
297073214
9.39
136669935
7.80
66407612.9
7
49196247.9
9
Shanghai
Sunlong Bus
Co. Ltd.
Subsidiary
New Energy
Bus
320000000
0.00
113191079
34.84
401177116
5.58
463060518
5.61
493809850.
43
433305590.
26
Sichuan
Xuhong
Optoelectroni
c Technology
Co. Ltd.
Subsidiary
Optoelectron
ic Display
material
190000000
0.00
384123702
5.65
213882307
2.41
543995845.
38
125562733.
68
116172589.
38
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Name Mode Influence
Shenzhen Sanbao Innovation Intelligence
Co. Ltd.
M & A Business expansion
Tunghsu（Yingkou）Optoelectronic Display
Co. Ltd.
M & A Business expansion
Xuyou Electronic Materials Technology
(Wuxi) Co. Ltd.
Disposition
Based on overall strategic layout planning
considerations
Anhui Xuan Optoelectronic Technology
Co. Ltd.
New establishment Business expansion
Tunghsu Optoelectronic EU.C.V New establishment Business expansion
Note
VIII.Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
IProspect for future development of the Company
I. The Development Trend of the Industry
In optoelectronic display a rising demand for the size of liquid crystal display screens in the liquid crystal
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
panel industry drove the size of glass substrate liquid crystal display screens in 2018. Studies show that if display
screens are enlarged by 1.5 inches in average capacity of a G8.5 liquid crystal panel production line will be
absorbed. The Company's glass substrate production can match the demand for liquid crystal panels leading a
steady growth in the performance of glass substrate business. In 2019 it is expected that supply of G8.5 liquid
crystal panels and ones with a larger size will predominate and remain major products needed on the consumer
market. IHS Markit predicts that the world's panel display area demand will rise about 6.4% to 228 million m
2
in
2019 laying a solid foundation for the Company's development of business of optoelectronic display materials
kerneled by glass substrates.In new energy bus the new energy automobile subsidy has plummeted and industrial pattern has been altered
in the wake of variation of the general trend. Nonetheless driven by market under the policy instruction Sunlong
Bus--a typical bus company--has emerged and boomed to build a new pattern by its own comprehensive strength
in the bus industry. In 2019 the new energy subsidy policy will heavily tighten by about 50% in average
compared with it was in 2018. Affected by the current scale benefit and provisions pertaining to tightened subsidy
policy in new energy automobile the fittest will survive while the inferior will be eliminated in the industry.
Besides low cost high technology and intelligence remain strengths of new energy automobile in future
development hence it will continue to play a major role in the automotive market.
Ⅱ. Development strategy of the company
In the context the Company will take the strategic objective of "China's biggest optoelectronic display
materials manufacturer and integrated intelligent manufacturing service provider" as its own responsibility
concentrate on China's display market increase spending in science and technology and take the lead in technical
innovation to stabilize its business of optoelectronic display materials kerneled by liquid crystal glass substrate
while further extending and developing its businesses of high-end intelligent manufacturing new energy
automobile and intelligent graphene application.The Company will continue to push forward G8.5 production construction enhance production quality and
expand coverage of production process based on the market demand to lay a solid foundation for its major
business of glass substrate. Besides in compliance with the OLED flexible display screen trend the Company
will optimize and upgrade techniques in high-aluminum cover glass cambered glass and sapphire among other
businesses speed up technical innovation and promote its core competitive edge to further increase the economic
benefit in the OLED flexible display area.
In 2019 on the ground of independent innovation the Company will continue to enhance its R&D and
manufacturing abilities give a play to industrial collaboration and cover the entire intelligent manufacturing
industry chain. To be specific the Company will make ongoing effort to build a closed loop of industry chain of
"high-end materials-graphene-based lithium ion battery-new energy automobile" and transfer original scientific
research results to capacity to contribute to its profit.
Ⅲ. Business plan in 2019
In 2019 oriented in industrial integration and aimed at geometric growth of net profit the Company will
continue to carry forward such major efforts as "market development cost reduction and benefit increase" mainly
involving the following work:
1. The Company will improve its G8.5 liquid crystal glass substrate production line construction and
effectively promote the yield of jumbo-sized liquid crystal substrates to lower the production cost and increase its
economic benefit. Mainly by implementing the Fuzhou Xufu G8.5 Production Line Project and targeting at major
national customers the Company will quickly occupy the market to promote the productivity.
2. The Company will continue to work on the high-end equipment business wherein it will give a full play to
strengths of its peripheral business increase business channels of optoelectronic display materials and equipment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
semiconductor equipment and other universal equipment supplied to domestic high-end customers step by step
and diversify the business development layout to guarantee a steady growth of its high-end equipment business.
3. The Company will continue to improve its new energy automobile industry layout push forward
construction of the three new energy automobile industry bases at Nanning Mianyang and Suqian build a "new
energy bus Sci-tech industry park" integrating R&D innovation manufacturing promotion and publicity and
speed up completion and commissioning to ensure its sufficient capacity. In addition the Company will comply
with China's "Belt & Road" thought of development increase international marketing channels and spending in
sales and put into practice the green value philosophy of Sunlong Bus and the state-of-the-art new energy
techniques.
4. The Company will promote technical R&D in the graphene battery and graphene-related sectors and
combine the strength of international R&D teams to facilitate incubation of graphene-related sectors. Meanwhile
the Company will further improve and implement graphene investment projects and actively push forward such
projects to seize a favorable place in the graphene industry and occupy market share.
5. Confronted with a huge market demand for OLED the Company will on one hand take the initiative to
quickly advance all the work in cambered cover glass color filter and sapphire production projects. On the other
hand the Company will develop its industry chain upgrading system prepared in terms of technology and R&D
for meeting the market demand for flexible display screens.
6. By its brand strength the Company will strengthen comprehensive market development ability of each
business and promote the core competitiveness of its main businesses with effort to guarantee a steady growth in
its income and profit.Ⅳ. Possible risks
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.
2. Risk of uncertainty in expected benefits of liquid crystal glass substrate project
As the company's glass substrate production line projects have the features of large investment amount and
long construction period then if there is a future risk occurred in the glass substrate industry and the company's
glass substrate production line construction projects can not fully achieve the mass production on schedule the
sales revenue and the profits of glass substrates will probably be less than expected.
Affected by size of product buying demand bargaining ability and demand characteristics of consumers and
downstream sectors in the glass substrate industry product sales needs price variation technical R&D situation
and variation of major marketing channels in the glass substrate industry there is still an uncertainty in whether
the Company can continue to increase its market share and develop quality customers indicating an impact on its
business performance.
3. 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.
4. The risk caused by the continued fade-out of subsidy policies for new energy vehicles
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
China is decreasing its new energy automobile subsidy standard which will bring a certain impact on new
energy automobile product sales of Sunlong Bus in the future. If the new energy automobile subsidy policy is
tightened or any major adverse change happens to relevant industrial policies it will cause an unexpected risk to
business development of Sunlong Bus in the future.X.Particulars about researches visits and interviews received in this reporting period
1.Particulars about researches visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
May 152018 Other Individual
Hebei Securities Regulatory Bureau
Online Reception Day
January 12018 By Phone Individual Company telephone records
Reception times 1958
Reception agency amount 35
Reception personal number 1932
Number of other objects received 0
Whether to disclose reveal or disclose non-public
material information
No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√ Applicable □ Not applicable
In the report period the common stock dividend distribution program of Tunghsu Optoelectronic was proposed by
the board of directors and approved by the general meeting of shareholders for implementation. Subject to the
Company's profitability funding condition and future development demand among other factors the cash
dividend distribution program was worked out and approved at the general meeting of shareholders before being
disclosed and implemented as planned.Special cash dividend policy description
Whether meets the requirements of the provisions of the articles
of association or shareholders' meeting resolutions:
Yes
Whether dividends standard and proportion are clear Yes
Whether decision making and supervision mechanism for profit
distribution are completed
Yes
Whether independent directors perform their duties responsibly
and play its due role:
Yes
Whether the Minority shareholders have adequate opportunity to
express their views and aspirations and Their legitimate rights
and interests have been fully protected
Yes
Whether the Cash dividend policy to adjust or change the
conditions and procedures are compliant and transparent
Yes
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
1.In 2016the company total share of 4939928983 shares on December 312016 for base on the Company’s total
share capital the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) and no reserve would be converted into share capital.
2.In 2017the company total share of 5730250118 shares on December 312017 for base on the Company’s total
share capital the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) and no reserve would be converted into share capital.
3.In 2018the company total share of 5730250118 shares on December 312018 for base on the Company’s total
share capital the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) and no reserve would be converted into share capital.
Dividend distribution of the latest three years
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Year for
bonus shares
Amount for cash
bonus(tax
included)
Net profit
attributable to
common stock
shareholders of
listed company
in consolidation
statement for
bonus year
Ratio of the
cash bonus in
net profit
attributable to
common stock
shareholders of
listed company
contained in
consolidation
statement
Proportion for
cash bonus by
other ways(i.e.share
buy-backs)
Ratio of the
cash bonus
by other
ways in net
profit
attributable
to common
stock
shareholders
of listed
company
contained in
consolidation
statement
Total cash
bonus(other
ways
included)
Ratio of the
total cash
bonus (other
ways
included) in
net profit
attributable
to common
stock
shareholders
of listed
company
contained in
consolidation
statement
2018 401117508.26 2163607505.39 18.54% 0.00 0.00% 401117508.26 18.54%
2017 401117508.26 1730174564.57 23.18% 0.00 0.00% 401117508.26 23.18%
2016 345795028.81 1301466332.10 26.57% 0.00 0.00% 345795028.81 26.57%
In the reporting period both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share(share) 0
Dividends for every 10-share(RMB)(Tax included) 0.70
Equity base of distribution plan(share) 5730250118
Cas bonus distribution(RMB)(Tax included) 401117508.26
Cash bonus distrubution n other way(i.e.share
buy-backs)(RMB)
0.00
Total cash bonus(including other ways((RMB) 401117508.26
Distributable profits(RMB) 467252231.11
Ratio of total cash dividend (Other ways included)
in total profit distribution
100%
Cash dividend distribution policy
When the development stage of the company is a growth period and there is a significant capital expenditure arrangement that in
the profit distribution cash dividend shall not be less than 80% in proportion.
Explanation on profit distribution or capitalizing of capital reserves
The Company formulated the 2018-2020 plan of return to shareholders as follows: 1. methods of profit distribution including cash
stock cash & stock combination or other methods allowed by laws and regulations are set out wherein a priority is given to the
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
method of profit distribution by cash dividend. 2. Provided that conditions for cash dividend distribution are met if the Company's
operating income and net profit increase rapidly and the board of directors considers the Company's equity scale and structure to be
reasonable a plan for stock dividend distribution may be proposed and implemented given no impact on the plan for cash dividend
distribution. 3. On the ground that conditions provided by the Company in the articles of association regarding distribution of cash
dividend and full withdrawal of surplus accumulation fund are met the Company makes a profit distribution in every accounting
year in principle; if necessary the Company may make an interim cash dividend distribution subject to the profitability and funding
demand. Given sufficient funds no spending in major technical improvement plans or other investment plans and satisfaction of
the Company's fund demand for regular production and operation the Company's cumulative profit distributed by cash in the
following three years will be no less than 30% of the annual average distributive profit incurred in the corresponding period. 4. The
Company's management and board of directors will abide by relevant laws regulations and Articles of Association and formulate
and submit a 2019 dividend distribution plan to the general meeting of shareholders for approval according to which based on the
total stock of 5730250118 shares on December 31 2018 the Company will distribute a cash dividend of RMB 0.7 (tax-inclusive)
per 10 shares to all the shareholders by undistributed profit and will not increase the stock by transfer of accumulation fund.
I. Commitments to fulfill the situation
1.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
commitme
nt
Fulfil
lment
Commitment on share
reform
Shijiazhuang
Baoshi
Electronics
Group Co. Ltd
Share
reduction
commitme
nt
If listed companies plans to sell tradable
stocks through the bid trading system of
Shenzhen Stock Exchange and sell greater
than 5% of shares within six months after the
first sales will disclose the contents specified
by the Form Guide to Prompt Announcement
of Removing Restriction on Sales of
Non-tradable Stocks of Listed Companies
through the prompt announcement of
disclosing sales of listed companies.March
292007
Long-term
effective
Unde
r
Fulfil
lment
Commitment in the
acquisition report or
the report on equity
changes
Commitment made
upon the assets
replacement
Tunghsu
GroupLi
Zhaoting
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
1. As of the date of this statement and
commitment except for trustee company the
company/individual and/or other companies
that are directly or indirectly controlled by the
company/individual shall not compete with
Tunghsu Optoelectronic. 2. During the period
when the company/individual acts as the
March
202017
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
occupation controlling shareholder/actual controller of
Tunghsu Optoelectronic the
company/individual and other companies
controlled by the company/individual shall
not engage in any same or similar business
that is competitive with that of Tunghsu
Optoelectronic and other companies
controlled by it nor carry out any activities
that may impinge on Tunghsu Optoelectronic
and other companies controlled by it. If
business opportunities obtained by the
company/individual and other companies
controlled by the company/individual are
within the main business scope of Tunghsu
Optoelectronic and other companies
controlled by it the company/individual and
other companies controlled by the company/
individual shall give the opportunities to
Tunghsu Optoelectronic and other companies
controlled by it. 3. During the period when
the company/ individual acts as the
controlling shareholder/actual controller of
Tunghsu Optoelectronic the
company/individual shall continue to strictly
perform the relevant statements and
commitments regarding avoiding competition
in the same industry previously made by the
company/individual.
Chen
DachengChen
Xicheng
Shanghai
Huimao
Enterprise
Management
Co. Ltd.; Wang
Wenxi Yao Eqin
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
occupation
1. As of the date of this statement and
commitment the company/individual and/or
other companies that are directly or indirectly
controlled by the company/individual shall
not compete with Tunghsu Optoelectronic
(including its subsidiaries the same below). 2.The company/individual and other companies
controlled by the Company/individual shall
not engage in any same or similar business
that is competitive with that of Tunghsu
Optoelectronic and other companies
controlled by it nor carry out any activities
that may impinge on Tunghsu Optoelectronic
and other companies controlled by it. If
business opportunities obtained by the
company/individual and other companies
March
202017
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
controlled by the company/individual are
within the main business scope of Tunghsu
Optoelectronic and other companies
controlled by it the company/individual and
other companies controlled by the company/
individual shall give the opportunities to
Tunghsu Optoelectronic and other companies
controlled by it.Tunghsu
GroupLi
Zhaoting
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
occupation
1. After the transaction and during the
association relationship existence between the
Company/I and Tunghsu Optoelectronic
without examination and approval of the
decision-making process specified by
Tunghsu Optoelectronic per the Company
Law Securities Law and relevant regulations
as well as Articles of Association and
Connected Transaction Management System
the Company/I and any holding enterprise
shall endeavor to avoid any connected
transaction with Tunghsu Optoelectronic will
not based on its own influence on the listed
company seek any right superior to that of
any third party in the market in terms of the
business cooperation with Tunghsu
Optoelectronic or any preferential right on the
transaction with the same. 2. If any connected
transaction does exist necessarily and
inevitably the Company/I and any holding
enterprise will together with Tunghsu
Optoelectronic enter into an agreement per
laws based on principles of equity fairness
and valuable consideration etc. subject to
regulations of China Securities Regulatory
Commission (CSRC) Shenzhen Stock
Exchange (SZSE) and Articles of Association
of Tunghsu Optoelectronic implement legal
process and information disclosure obligation.
3. The Company/I undertake not to trade with
Tunghsu Optoelectronic per unfair conditions
compared with market price or act against the
legal interests of Tunghsu Optoelectronic and
shareholders thereof through such trade. 4. If
Tunghsu Optoelectronic suffers any loss due
to the trade against the commitment above
March
202017
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
the Company/I shall undertake the
compensation liability.
Chen
DachengChen
Xicheng
Shanghai
Huimao
Enterprise
Management
Co. Ltd.;
Wang Wenxi
Yao Eqin
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
occupation
1. After the transaction without examination
and approval of the decision-making process
specified by Tunghsu Optoelectronic
(including any subsidiary thereof similarly
hereinafter) per the Company Law Securities
Law and relevant regulations as well as
Articles of Association and Connected
Transaction Management System the
Company/I and any holding enterprise shall
endeavor to avoid any connected transaction
with Tunghsu Optoelectronic will not based
on its own influence on Tunghsu
Optoelectronic seek any right superior to that
of any third party in the market in terms of the
business cooperation with Tunghsu
Optoelectronic or any preferential right on the
transaction with the same. 2. If any connected
transaction does exist necessarily and
inevitably the Company/I and any holding
enterprise will together with Tunghsu
Optoelectronic enter into an agreement per
laws based on principles of equity fairness
and valuable consideration etc. subject to
regulations of China Securities Regulatory
Commission (CSRC) Shenzhen Stock
Exchange (SZSE) and Articles of Association
of Tunghsu Optoelectronic implement legal
process and information disclosure obligation.
3. The Company/I undertake not to trade with
Tunghsu Optoelectronic per unfair conditions
compared with market price or act against the
legal interests of Tunghsu Optoelectronic and
shareholders thereof through such trade. 4. If
Tunghsu Optoelectronic suffers any loss due
to the trade against the commitment above
the Company/I shall undertake the
compensation liability.March
202017
Long-term
effective
Unde
r
Fulfil
lment
Mianyang
Technology City
Development
Investment
(Group) Co.Other
Commitm
ent
Until the issuance of the statement the
Company has never entered into any acting in
concert agreement with any shareholder of
Tunghsu Optoelectronic or conducted any act
possible to impel several shareholders thereof
March
202017
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.;Shanghai
Huimao
Enterprise
Management
Co.
Ltd.;Sichuan
Changhong
Electric
Appliance Co.
Ltd.to exercise their respective rights jointly
resulting in the substantial control of Tunghsu
Optoelectronic. After the asset reorganization
and supporting funds raising the Company
will own shares of Tunghsu Optoelectronic
directly and become one shareholder thereof;
thus the Company undertakes hereby to
exercise the shareholder’s rights
independently and not to conclude any acting
in concert agreement or reach private
consensus on acting in concert with other
shareholders of Tunghsu Optoelectronic in the
future.Tunghsu
GroupLi
Zhaoting
Other
Commitm
ent
Not overstepping its authority to interfere
with the company's management activities.
(2) Not encroach the interests of the company.
(3) If the CSRC or Shenzhen Stock Exchange
has different requirements on the commitment
made by the Company / I to ensure the sound
implementation of the returns fill-up measures
for the diluted returns at the period caused by
this transaction the Company / I shall
voluntarily and unconditionally make the
commitment in accordance with the
requirements of the CSRC or the Shenzhen
Stock Exchange. (4) As one of the relevant
liability subjects to the returns fill-up
measures the Company / I undertake that
strictly abide by the above commitment made
by the Company / I and ensure that the returns
fill-up measures of the Company / I can be
soundly implemented. If the Company / I
violate the above commitments or refuse to
fulfill the above commitments the Company /
I hereby agree to impose relevant penalties or
relevant management measures on the
Company / I in accordance with the relevant
regulations and rules formulated and issued
by the securities regulatory authorities such as
the CSRC and the Shenzhen Stock Exchange.June
102017
Long-term
effective
Unde
r
Fulfil
lment
Gong Xin Han
Zhiguo Huang
Jinliang Li
Zhaoting Liu
Other
Commitm
ent
Undertake that faithfully and diligently
perform duties and protect the lawful rights
and interests of the company and all its
shareholders; (2) undertake that not transfer
June
102017
Long-term
effective
Unde
r
Fulfil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Wentai Lu
Guihua Wang
Jianqiang Wang
Junming Wang
Lipeng Wang
Zhonghui and
Zhang
Shuangcai.benefits to other units or individuals in
gratuitous or unfair conditions and not take
any other ways to damage the interests of the
company; (3) undertake that curb the
position-related consumption behavior; (4)
undertake not to use the company's assets to
engage in investment or consumption
activities that have nothing to do with the
performance of the duties; (5) undertake that
the remuneration system established by the
board of directors or the remuneration and
assessment committee is linked to the
company's implementation of the returns
fill-up measures and make affirmative vote
for the relevant motions of the board of
directors and the general meeting of
shareholders when participating in the
decision; (6) if the company launches the
equity incentive policy subsequently then
undertake that the terms of exercise of the
company's equity incentive to be announced
are linked to the performance of the
company's measures of returns fill-up and
make affirmative vote for the relevant
motions of the board of directors and the
general meeting of shareholders when
participating in the decision; (7)If the CSRC
or Shenzhen Stock Exchange has different
requirements on the commitment made by I to
ensure the sound implementation of the
returns fill-up measures for the diluted returns
at the period caused by this transaction I shall
voluntarily and unconditionally make the
commitment in accordance with the
requirements of the CSRC or the Shenzhen
Stock Exchange. (8) As one of the relevant
liability subjects to the returns fill-up
measures I undertake that strictly abide by
the above commitment made by I and ensure
that the returns-fill-up measures of the
Company shall be soundly implemented. I
hereby agree to impose relevant penalties or
relevant management measures on the
Company / I in accordance with the relevant
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
regulations and rules formulated and issued
by the securities regulatory authorities such as
the CSRC and the Shenzhen Stock Exchange.Tunghsu Group
Other
Commitm
ent
For subscription of the supporting raised
funds Tunghsu Group issues Commitment
Letter for Subscription Fund Sources and
make the following commitment that: 1. all
funds used by the Company for subscription
of the supporting raised funds are owned by
the Company which are obtained legally
other than financing through mortgage of the
owned shares of the listed companies with the
bank and any other financial institution etc.;
2. the funds used by the Company for
subscription of the supporting raised funds are
free from encumbrance within a short term
(12 months); 3. the funds used by the
Company for subscription of the supporting
raised funds never come from collection from
unspecified objects through public or
disguised public way or more than 200
specified objects.
August
102017
Valid
period to
December
312018
Unde
r
Fulfil
lment
Shanghai
Huimao
Enterprise
Management
Co. Ltd.
Other
Commitm
ent
It shall coordinate and cooperate with
Sunlong Bus positively in the ownership
certificate application formalities for the
property before registration and protect
Sunlong Bus from influence of such issue
during normal production and operation;
otherwise for any economic loss suffered of
Sunlong Bus during operation in the future
due to such ownership issue (including but
not limited to the penalty on the relevant
company by the governmental department
overdue fine and losses for normal production
operation interruption due to such issue
resolution and correction on relevant property
problem etc.) Shanghai Huimao shall
compensate Sunlong Bus in full within 30
days after Tunghsu Optoelectronic
Technology Co. Ltd. confirms the actual
losses suffered by Sunlong Bus due to such
issue above per laws.October
262017
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Share The shares of Tunghsu Optoelectronic held by November November Com
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
GroupTunghsu
Technology
Group Co.Ltd.Shjiazhuang
Baoshi Group
limited
commitme
nt
the Company prior to this transaction shall not
be transferred in any way within 12 months
after the completion of this transaction
including but not limited to transfer publicly
in block trade or by agreement in the
securities market nor be bought back by
Tunghsu Optoelectronic. The increased shares
held by Tunghsu Optoelectronic due to bonus
shares and conversion into share capital shall
also be locked up in accordance with the
above lock-in period requirements.
302017 292018 plete
d
Tunghsu Group
Shanghai
Huimao
Enterprise
Management
Co. Ltd
Share
limited
commitme
nt
1. The shares of Tunghsu Optoelectronic
acquired by the company due to this asset
reorganization shall not be transferred or
entrusted to others for management within 36
months from the end of issuance of the shares
nor be repurchased by Tunghsu
Optoelectronic upon the request of the
company. The shares derived from
distribution of stock dividends and increase in
capital reserves of the stocks issued to
targeted investors of Tunghsu Optoelectronic
acquired by company in this transaction shall
also meet the requirements of
above-mentioned share lockup arrangement.
2. Tunghsu Group promises that if closing
price of Tunghsu Optoelectronic’ shares is
lower than offering price for twenty
consecutive trading days within six months
after the completion of the transaction or if
closing price at the end of six months after the
completion of the transaction is lower than
offering price Tunghsu Group shall
automatically extend the lock-up period of
shares acquired by Tunghsu Optoelectronic
due to this asset reorganization for 6 months.November
302017
November
292020
Unde
r
Fulfil
lment
Mianyang
Technology City
Development
Investment（Group）Co.Ltd.; Sichuan
Changhong
Electric
Share
limited
commitme
nt
The shares of Tunghsu Optoelectronic
acquired by the company due to this asset
reorganization shall not be transferred or
entrusted to others for management within 12
months from the end of issuance of the shares
nor be repurchased by Tunghsu
Optoelectronic upon the request of the
company. The shares derived from
November
302017
November
292018
Com
plete
d
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Appliance Co.
Ltd.distribution of stock dividends and increase in
capital reserves of the stocks issued to
targeted investors of Tunghsu Optoelectronic
acquired by company in this transaction shall
also meet the requirements of
above-mentioned share lockup arrangement.Tunghsu Group
Share
limited
commitme
nt
The shares of Tunghsu Optoelectronic that are
issued for supporting fund raising subscribed
by Tunghsu Group shall not be transferred
within 36 months from the date of being
listed and after 36 months the shares shall be
transferred in accordance with the relevant
regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange.
Upon the end of the issue Tunghsu
Group shall abide by the preceding
provision while acquiring shares of the
Company through distribution of
dividend and increase of stock by
transfer.
December
282017
December
282020
Unde
r
Fulfil
lment
Minjia Silver
Fund
Management
Co. Ltd.; Beixin
Ruifeng Fund
Management
Co. Ltd.
Share
limited
commitme
nt
Shares of Tunghsu Optoelectronic
subscribed by other particular target
investors except for Tunghsu Group
shall not be transferred in 12 months
after going public but afterwards such
shares shall be subject to relevant
provisions of China Securities
Regulatory Commission and Shenzhen
Stock Exchange. Upon the end of the
issue other investors shall abide by the
preceding provision while acquiring
shares of the Company through
distribution of dividend and increase of
stock by transfer.
December
282017
December
282018
Com
plete
d
Shanghai
Huimao
Enterprise
Management
Co. Ltd
Performan
ce
commitme
nt and
compensat
ion
arrangeme
nts
1. Shanghai Huimao promises that the audited
net profit of Sunlong Bus shall not be less
than RMB 300 million in 2017 RMB 400
million in 2018 and RMB 550 million in
2019. 2. During the profit commitment
period if the actual profit accrued as of the
end of 2017 (including the current year) 2018
(including 2017) and 2019 (including 2017
and 2018) of Sunlong Bus cannot reach the
cumulative promised net profit for
November
302017
December
312019
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
corresponding year Shanghai Huimao shall
make a profit compensation for the gap by
means of shares. If shares are insufficient to
make compensation Shanghai Huimao shall
make up for it in cash.Tunghsu Group
Performan
ce
commitme
nt and
compensat
ion
arrangeme
nts
1. Tunghsu Group promises that if Xu Hong
Photoelectric has completed business
transaction in 2017 the audited actual net
profit of Xu Hong Photoelectric shall not be
less than RMB 75 million yuan in 2017 RMB
98 million in 2018 and RMB 115 million in
2019. If Xuhong Photoelectric has failed to
complete business transaction in 2017
Tunghsu Group further promises that net
profit of Xu Hong Photoelectric shall not be
less than RMB 138 million in 2020. 2. If Xu
Hong Photoelectric has completed business
transaction in 2017 Tunghsu Group shall
make up for the profit gap between actual
profit accrued as of the end of 2017
(including the current year) 2018 (including
2017) and 2019 (including 2017 and 2018)
within the profitability commitment period
and cumulative promised net profit for
corresponding year by means of shares.November
302017
December
312019
Unde
r
Fulfil
lment
Commitments made
upon issuance
Li Zhaoting
Commitm
en ts on
horizontal
competitio
n related
transaction
and capital
occupation
1.From the date of commitment letter issued
except the managed hosting company for
Baoshi this company and majority-owned
subsidiaries do not in any way directly or
indirectly engaged in business and Baoshi and
its subsidiaries are the same or similar future
Baoshi shares and its subsidiaries are not
engaged in the same or similar businesses.
2.The company assurances against the use of
precious stones share any act prejudicial to
the control relationship of Baoshi interests
and its wholly-owned subsidiaries holding or
causing Baoshi shares and its wholly-owned
subsidiaries holding form business
competition decisions. 3. The company will
not directly invest purchase and Baoshi
identical or similar business enterprises and
projects.
4.If the assets owned by the Baoshi . compete
November
222011
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
with the company will adopt effective
measures and give up the same business. 5. If
the company has horizontal competition with
Baoshi and lead to lose to it the company will
bear all the responsibilities. 6. Pursuant to
relevant conditions of securities supervision I
promise to inject all my holding equity of
entrusted company under management by
Baoshi Stock into Baoshi Stock. During the
period that I am the actual controller of the
Baoshi Stock the promise is a valid
commitment.Tunghsu
Group;Shijiazh
uang Baoshi
Group;
Tunghsu
Optoelectronic
Investment
Co.m Ltd.
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
occupation
1.From the date of commitment letter issued
except the managed hosting company for
Tunghsu Optoelectronic this company and
majority-owned subsidiaries do not in any
way directly or indirectly engaged in
business and Tunghsu Optoelectronic and its
subsidiaries are the same or similar future
Tunghsu Optoelectronic shares and its
subsidiaries are not engaged in the same or
similar businesses.
2.The company assurances against the use of
precious stones share any act prejudicial to
the control relationship of Tunghsu
Optoelectronic interests and its wholly-owned
subsidiaries holding or causing Tunghsu
Optoelectronic shares and its wholly-owned
subsidiaries holding form business
competition decisions. 3. The company will
not directly invest purchase and Tunghsu
Optoelectronic identical or similar business
enterprises and projects.
4.If the assets owned by the Tunghsu
Optoelectronic . compete with the company
will adopt effective measures and give up the
same business. 5. If the company has
horizontal competition with Tunghsu
Optoelectronic and lead to lose to it the
company will bear all the responsibilities.Within the period when the company is still
the controlling shareholder of Tunghsu
Optoelectronics the commitments are in
effect.
April1，1
2012
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Group
Other
commitme
nt
In view of:
The main business of Tunghsu Optoelectronic
is the production of TFT-LCD glass substrate
and the company now is applying for
non-public offering of bonds (2) Tunghsu
Group is the controlling shareholder of
Tunghsu Optoelectronic; and during the
period of holding Tunghsu Group has signed
patent license contracts separately with
Tunghsu Optoelectronic and its subsidiaries
including Wuhu Tunghsu Optoelectronic
Science and Technology Co. Ltd. (hereinafter
referred to as Wuhu Optoelectronic) Wuhu
Tunghsu Optoelectronic Equipment
Technology Co. Ltd. (hereinafter referred to
as Wuhu Equipment) and Shijiazhuang
Tunghsu Optoelectronic Equipment
Technology Co. Ltd. (hereinafter referred to
as Shijiazhuang Equipment). For this purpose
Tunghsu Group has made following promises:
Any patents related to panel display glass
substrate not included in the aforesaid
Contract on the Licensing of Patent
Exploitation obtained by Tunghsu Group in
the future Tunghsu Group shall sign a free
contract of licensing the new pertinent patents
with the company and the company’s
subsidiaries (Wuhu Optoelectronic
Technology Co.Ltd Wuhu Equipment
Company and Shijiazhuang Equipment
Company) with the same articles of the
former patent licensing contract. After the
company successfully completed the issuance
of corporate bonds whether Tunghsu Group
control the company during the duration of
the bonds Tunghsu Group shall renew the
patent licensing contract unreserved with the
company and the company’s subsidiaries
(Wuhu Optoelectronic Technology Co.Ltd
Wuhu Equipment Company and Shijiazhuang
Equipment Company) under the company’s
requirement until the bonds expired.
February
82015
Valid for
December
312020
Unde
r
Fulfil
lment
Tunghsu
Optoelectronic
To raise
funds to
In view of: Tunghsu Optoelectronic
Technology Co. Ltd. is applying for public
February 10
2015
Valid for
December
Unde
r
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology Co.Ltd.use the
commitme
nt
offering of corporate bonds and the total
scale of bonds will not exceed 1 billion yuan.
After the deduction of issue expenses all the
funds raised are planed to be used to
supplement the liquidity and support the
R&D production and material purchase of
glass substrate and the equipment. Thus the
demands of business operation and expansion
in the company will be satisfied. The
company promises: 1. The funds raised
through the public offering of corporate bonds
will not be directly or indirectly invested in
real estate development business or used to
increase the capital fund or as loans in
subsidiaries engaged in real estate business; 2.the funds raised through the public offering of
corporate bonds will not be used for real
estate development business in any form.
312020 Fulfil
lment
Tunghsu Group
Other
commitme
nt
In view of:
(1) The main business of Tunghsu
Optoelectronic is the production of TFT-LCD
glass substrate and the company now is
applying for non-public offering of stock; (2)
Tunghsu Group is the controlling shareholder
of Tunghsu Optoelectronic; and during the
period of holding Tunghsu Group has signed
patent license contracts separately with
Tunghsu Optoelectronic and its subsidiaries
including Wuhu Tunghsu Optoelectronic
Science and Technology Co. Ltd. (hereinafter
referred to as Wuhu Optoelectronic) Wuhu
Tunghsu Optoelectronic Equipment
Technology Co. Ltd. (hereinafter referred to
as Wuhu Equipment) and Shijiazhuang
Tunghsu Optoelectronic Equipment
Technology Co. Ltd. (hereinafter referred to
as Shijiazhuang Equipment). For this purpose
Tunghsu Group has made following promises:
within the term of validity involving patent
right stated in patent license contracts
whether Tunghsu Optoelectronic is in the
control of Tunghsu Group or not Tunghsu
Group promises that when the above
June 17
2015
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
mentioned patent license contracts expire the
group will unconditionally renew the
contracts with Tunghsu Optoelectronic and its
subsidiaries (Wuhu Optoelectronic Wuhu
Equipment Shijiazhuang Equipment and etc)
according to the terms of original contracts
based on the requirements of Tunghsu
Optoelectronic.Tunghsu
GroupLi
Zhaoting
Commitm
ents on
horizontal
competitio
n related
transaction
and capital
occupation
To avoid the horizontal competition with the
issuer the company’s actual
controller-Zhaoting Li and the holding
company-Tunghsu Group promised: 1. As of
this declaration and from the date of
commitment letter issued except the managed
hosting companies the other companies
directly or indirectly controlled by the
controller or holding company have no
horizontal competitions with Tunghsu
Optoelectronic Technology Co. Ltd. 2. Any
other companies controlled by the actual
controller or holding company shall avoid
businesses identical or similar to the company
may lead to a competitive relation and cannot
do any harm activities to Tunghsu
Optoelectronic Technology Co. Ltd and
companies controlled by Tunghsu
Optoelectronic Technology Co. Ltd as long
as there are no alterations of the actual
controller and the holding company. Any
businesses opportunities under the main
business scope of Tunghsu Optoelectronic
Technology Co. Ltd and its controlled
companies shall not take by the companies
controlled by the actual controller or the
holding company and the business
opportunities shall be given to Tunghsu
Optoelectronic Technology Co. Ltd and its
controlled companies.3. As long as the actual
controller and the holding company are the
same the actual controller and the holding
company shall continue to strictly
performance the relevant declarations and
commitments of avoiding horizontal
Decembert
16
2015
Long-term
effective
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
competition. If I (the company) violated the
above commitment I (the company) will bear
all the losses of Tunghsu Optoelectronic and
its controlled enterprises arising from this.Tunghsu Group
Other
commitme
nt
In order to safeguard the the company's main
business of TFT-LCD glass substrate
production the controlling
shareholder-Tunghsu Group Co. Ltd made a
commitment valid in the period of the
company’s application for non-public share
issuance: given (1) The main business of
Tunghsu Optoelectronic Technology Co. Ltd
is TFT-LCD glass substrate production and
currently it is applying for non-public share
issuance; (2) Tunghsu Group which is the
controlling shareholder of Tunghsu
Optoelectronic respectively signed Patent
Licensing Contract with Tunghsu
Optoelectronic Tunghsu Optoelectronic’s
subsidiaries of Wuhu Tunghsu Optoelectronic
Technology Co. Ltd (hereinafter referred to
as "Wuhu Optoelectronics") Wuhu Tunghsu
Optoelectronic Equipment Technology Co.Ltd (hereinafter referred to as "Wuhu
Equipment") and Shijiazhuang Tunghsu
Optoelectronic Equipment Technology Co.Ltd (hereinafter referred to as "Shijiazhuang
Equipment") during the control period.
Therefore Tunghsu Group made a
commitment as follows: In the term of
validity of the patents involved in the patent
licensing contract whether Tunghsu Group
controls Tunghsu Optoelectronic or not after
the commitment of the above-said Patent
Licensing Contract expired Tunghsu Group
will according to the requirements by
Tunghsu Optoelectronic unconditionally
renew Patent Licensing Contract with
Tunghsu Optoelectronic and Tunghsu
Optoelectronic’s subsidiaries (Wuhu
Optoelectronics Wuhu Equipment and
Shijiazhuang Equipment) according to the
original contract terms.
December
162015
Valid for
December
312030
Unde
r
Fulfil
lment
Tunghsu Share The company one of the subscription objects December16 Valid for Unde
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Group;Changjia
ng Securities
(Shanghai )Asse
t Management
Co.
Ltd.;Kunshan
Development
Zone State
Investment Co.Ltd.;Beijing
Yingfei Hailin
Investment
Center (Limited
partnership).limited
commitme
nt
promised that after Tunghsu Optoelectronic
Technology Co. Ltd completed the non
public issuance of shares to the company and
specific objects for raising funds the shares
(New shares) issued by Tunghsu
Optoelectronic Technology Co. Ltd and
subscribed by the company shall not be
transferred to any others in 36 months
commenced from the publicly listed date of
the new shares. As a result of the issuance of
new shares by the Company to the Company
the shareholding of Tunghsu Optoelectronic
Co. Ltd. by Tunghsu Optoelectronic Co. Ltd.
will also be subject to the above
commitments.
2015 December
162018
r
Fulfil
lment
Tunghsu
GroupLi
Zhaoting
Other
Commitm
ent
Not act in excess of authority to interfere the
company’s management and operating
activities not encroach on the interests of the
company.
February
62016
Valid for
December
312019
Com
plete
d
Li Zhaoting
Zhou BoNiu
Jianlin Gong
Xin Lu
Guihua Mu
Tiehu Zhang
Shuangcai Shi
Zhiqiang Liu
WentaiXiao
Zhaoxiong and
Zhou Bo
Other
Commitm
ent
(a) Promised that not freely or unfairly
transfer interests to other units or individuals
nor adopt other ways to jeopardize the
company’s interests. (b) Promised that restrict
the post consumer behaviors of the directors
and senior management personnel. (c)
Promised that not use the company's assets to
engage in the investment &consuming
activities which are irrelevant to perform the
duties. (d) Promised that the salary system set
up by the board of directors or the
Remuneration Committee is relevant to the
implementation status of the company’s
fill-up return measures. (e) Promised that the
vesting conditions of the company’s equity
incentive are relevant to the implementation
status of the company’s fill-up return
measures. (f) Promised the full
implementation of the relevant fill-up return
measures established by the company and any
commitment related to the fill-up return
measures if such commitment is breached
and resulted in losses to the company or the
investors the concerning party shall take the
responsibility for compensating the company
February
62016
Valid for
December
312019
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
or the investors according to the law. As one
of the relevant responsibility bodies of the
fill-up return measures if the oneself breaches
the above-said commitments or refuse to
fulfill the above-said commitments the
oneself agrees the punishments or relevant
supervise measures carried out in accordance
with the regulations and rules issued or
enacted by CSRC Shenzhen Stock Exchange
and other securities regulatory organizations.Tunghsu Group
Commitm
ents on
horizontal
competitio
n 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
Optoelectronic through cash purchase and
add-directional share issuance. During the
above-mentioned 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
Optoelectronic.
December
142017
Valid for
June302
018-
Unde
r
Fulfil
lment
Equity incentive
commitment
Other commitments
made to minority
shareholders
Guo Shouwu
Ma Shengjie
Wu Haixia
Shen Wenzhuo
and Shen Li
Performan
ce
commitme
nt and
compensat
ion
arrangeme
nts
To ensure Tunghsu Optoelectronic
Technology Co. Ltd realizing expected
benefits on the M&A of Shanghai Tanyuan
Huigu New Materials Technology Co. Ltd
the promisee voluntarily promised the profits
of Shanghai Tanyuan Huigu New Materials
Technology Co. Ltd for the next three years
as follows: (a) Business performance
commitment: the net profits of Shanghai
Tanyuan Huigu New Materials Technology
Co. Ltd in year-2016 year-2017 year-2018
shall accordingly not be less than RMB 5
million RMB 10 million RMB 20 million.(b) Compensation mode: if the net profits of
March
82016
Valid for
December
312019
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shanghai Tanyuan Huigu New Materials
Technology Co. Ltd in year-2016 year-2017
year-2018 accordingly do not reach the
promised net profits the promised party shall
fully compensate the difference by cash.
Beijing Heyiyou
Investment
Partnership( LP)
;Chen Wei
Jiang Wei Jin
Xiuzhen Li
Honglei Qian
Xinming Wang
Yingchao and
Zhu Lei.Performan
ce
commitme
nt and
compensat
ion
arrangeme
nts
All eight shareholders of Ming Shuo (Beijing)
Electronic Technology Co. Ltd namely Chen
Wei Zhu Lei Wang Yingchao Jin Xiuzhen
Jiang Wei Li Honglei Beijing He Yiyou
Investment Partnership (limited partnership)
and Qian Xinming voluntarily make the
commitment for the profits of the next three
years of Ming Shuo (Beijing) Electronic
Technology Co. Ltd and such commitment is
as follows: The audited net profits after tax in
2017 2018 and 2019 (determined by the
lower principle after the deduction of non
recurring gains and losses) are no less than
RMB 10.5 million RMB 20 million and
RMB 40 million respectively.
May
112017
Valid for
June
302020
Unde
r
Fulfil
lment
Tunghsu Group
Share
holdings
commitme
nt
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 shares during the
implementation period of this plan of
increasing share-holding and during the
statutory period.
February
22018
Valid for
August
22018
Unde
r
Fulfil
lment
Shenzhen
Sanbao
Innovation and
Technology
Partnership
(limited
partnership);
Zhuang
Performan
ce
commitme
nt and
compensat
ion
arrangeme
nts
In 2018-2020 Shenzhen Sanbao Innovation
Intelligence Co. Ltd. (hereinafter referred to
as Sanbao Innovation) will implement a
cumulative net profit amounting to not lower
than RMB 75 million. To avoid ambiguity
the preceding net profit refers to the annual
after-tax net profit promised by Sanbao
May
292018
Valid for
Decemver
312020
Unde
r
Fulfil
lment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Yongjun; Lin
Lude
Innovation upon deduction of non-recurring
income and loss subject to what is stated in
the annual audit report. If the preceding
promised cumulative performance is not
fulfilled parties shall agree that the
undertaker shall convert and transfer
corresponding share of equity of Sanbao
Innovation to the Company free of charge to
offset the balance of the outstanding net
profit whereas the cumulative equity of
Sanbao Innovation transferred by the
undertaker free of charge for supplementing
the balance of the promised performance in
the performance commitment period shall not
be higher than 8%.
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
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □Not applicable
Asset or Project
Name of
Earnings
Forecast
Start date of
the forecasting
period
End date of the
forecasting
period
Forecast
earnings
Actual
earnings
Reason for less
than forecast
Disclosure
date of the
Forecast
Reference for the
Forecast
Shanghai
Tanyuan Huigu
New Material
Technology Co.Ltd.March 82016
December
312018
2000 2060.8 Completed
March
92016
Disclosed on
cninfo.com.cn.( 2016-0
30)
Shanghai November December 40000 42523.26 March Tunghsu
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Sunlong Bus
Co. Ltd.
302017 312019 212017 Optoelectronic
Technology Co. Ltd.Issued shares paid
cash to buy assets and
raised supporting funds
and related party
transactions as
published on
cninfo.com.cn
Sichuan Xuhong
Optoelectronic
Technology Co.Ltd.November
302017
December
312019
9800 9912.72 Completed
March
212017
Tunghsu
Optoelectronic
Technology Co. Ltd.Issued shares paid
cash to buy assets and
raised supporting funds
and related party
transactions as
published on
cninfo.com.cn
Mingshuo
（Beijing）
Electronic
Technology Co.Ltd.May 112017
December
312019
2000 273.65
Please refer to
the statement on
the 2018
performance
commitment of
mingshuo
Technology
disclosed by the
company for
details.May
112017
Disclosed on
cninfo.com.cn.( 2017-0
47)
Shenzhen
Sanbao
Innovation
Intelligence Co.Ltd.May 282018
December
312020
750 -875.45 Not applicable
May
292018
Disclosed on
cninfo.com.cn.( 2018-0
69 2018-079)
The commitments of the operating earnings made by the company’s shareholder and relevant transaction parties
√Applicable □Not applicable
1. The Company's shareholders including Tunghsu Group and Shanghai Huimao made a performance
commitment for the report year regarding such M&A targets as Xuhong Optoelectronics and Sunlong Bus in the
Company's 2017 related transactions of issuing shares buying assets by cash and raising supporting funds. In the
report period both Xuhong Optoelectronics and Sunlong Bus fulfilled the performance commitment. Data details
are shown in the preceding table.
2. In March 2016 the Company and five natural person shareholders of Shanghai Tanyuan Huigu including
Guo Shouwu Ma Shengjie Wu Haixia Shen Wenzhuo and Shen Li (hereinafter referred to as the undertaker)
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
entered into a Performance Commitment to make a commitment to the business performance of Shanghai Tanyuan
Huigu in the report period. Till the end of the report period Shanghai Tanyuan Huigu fulfilled the commitment.
Data details are shown in the preceding table.
3. In May 2017 Taizhou Tunghsu Graphene Industry Investment Fund Management Center (Limited
Partnership) whose funds were managed by the Company's wholly-owned subsidiary Shenzhen Xuhui Investment
Holding Limited and holding subsidiary Beijing Tunghsu Huaqing Investment Co. Ltd. entered into an Agreement
on Equity Transfer and Capital and Share Increase at Mingshuo (Beijing) Electronic Technology Co. Ltd. with
shareholders of MS Technology including Chen Wei Zhu Lei Wang Yingchao Jin Xiuzhen Jiang Wei Li
Honglei Beijing Heyiyou Investment Partnership (Limited Partnership) and Qian Xinming regarding matters of
equity transfer and capital and share increase at MS Technology wherein a commitment was made to the business
performance in the report period: the audited after-tax net profit in 2018 (or the amount after deduction of the
non-recurring income and loss whichever lower) is not lower than RMB 20 million. In the report period MS
Technology implemented RMB 2736500 in the after-tax net profit upon deduction of non-recurring income and
loss indicating its failure to fulfill the 2018 business performance commitment.
4. In June 2018 the Company invested and acquired Sanbao Innovation. According to the Agreement on
Equity Transfer and Capital and Share Increase at Shenzhen Sanbao Innovation Intelligence Co. Ltd. concluded
with shareholders of Sanbao Innovation including Lin Lvde Zhuang Yongjun and Shenzhen Sanbao Innovation
Technology Partnership (Limited Partnership) (hereinafter referred to as the undertaker) the undertaker made a
commitment to profits of Sanbao Innovation in the following three years of their own accord: Sanbao Innovation
implements a cumulative net profit amounting to not lower than RMB 75 million in 2018-2020 wherein the
amount of 2018 performance commitment is calculated by actual remaining months upon the completion of the
transaction in the following method: amount of 2018 performance commitment=2018 promised net
profit×(12-months of payment of the Company's equity transfer and capital increase)/12. In June-December 2018
Sanbao Innovation implemented a net profit of RMB -8754500 upon deduction of non-recurring income and loss
which was accumulated to the cumulative performance commitment for the following year not indicating its
failure to fulfill the performance commitment.
Fulfillment of performance commitment and impact on goodwill impairment test
By the end of the report period the Company entrusted an external professional appraisal
institution--Zhongming (Beijing) Assets Appraisal International Co. Ltd. to appraise and test the goodwill of
Shanghai Sunlong Tanyuan Huigu Mingshuo and Sanbao Innovation set out hereinbefore through the M&A.
1. Sunlong Bus and Shanghai Tanyuan Huigu which made normal operation and met profit expectation
showed no sign of goodwill impairment.
2. Mingshuo Technology failed to fulfill the 2018 business commitment. Through a judgment on the current
business situation of Mingshuo Technology and its development plan and market development trend for the five
years to come no sign of impairment was found in the goodwill incurred through M&A of Mingshuo Technology
in the appraisal test.
3. The 2018 unfulfilled performance of Sanbao Innovation was accumulated to the promised cumulative
performance for the following year not indicating its failure to fulfill the performance commitment. Through a
judgment on the current business situation of Sanbao Innovation and its development plan and market
development trend for the five years to come no sign of impairment was found in the goodwill incurred through
M&A of Sanbao Innovation in the appraisal test.
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified Auditor’s
Report Issued by the CPAs.
□ Applicable √ Not applicable
VI. Explanation change of the accounting policy accounting estimate and measurement methods as compared
with the financial reporting of last year.
√ Applicable □Not applicable
Accounting policy changes due to the implementation of the new Accounting Standards for Business
Enterprises
On June 262018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of General
Enterprise Financial Statements for 2018 (Caikuai [2018] No. 15).
The impact of the implementation of this accounting policy by the Company on the presentation of the items and
amounts of the prior financial statements is as follows:
No Name of affected item in the statements Affected amount of December 31 2017 / 2017
Increase + / decrease -
1 Notes receivable -538128584.84
Account receivable -7873419684.42
Notes receivable & account
receivable
8411548269.26
2 Interest receivable -49456785.29
Other receivable 49456785.29
3 Notes payable -1063897679.89
Account payable -4636989039.65
Notes payable & account payable 5700886719.54
4 Interest payable -107195147.20
Dividend payable -35000000.00
Other payable 142195147.20
5 Management expenses -256991555.91
R & D ecpenses 256991555.91
VII. Explanation retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
Nil
VIII. Explanation change of the consolidation scope as compared with the financial reporting of last year.
√ Applicable □Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
Name of
Acquirer
Time-point of
Obtained
Equity
Obtained Cost of
Equity
Ratio of
Obtained
Equity
(100%)
Method of
Obtained
Equity
Purchasing
Date
Determination
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
Innovation
Intelligence
Co. Ltd.
May 30
2018
157598587.50 67.00%
Enterprise
consolidation
not under the
same control
May 30
2018
Acquisition of
control
7659108.35
-12733040.1
3
Zhongcheng
National
construction
1Co. Ltd.
May 30
2018
140000000.00 70.00% Enterprise
consolidation
not under the
same control
March 30
2018 Acquisition of
control
-7172706.59
Huaxi
Nanchong
Automobile
Co. Ltd.
April 4
2018
56000000.00 100.00% Enterprise
consolidation
not under the
same control
April 4
2018 Acquisition of
control
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In 10000 yuan
Name Proportion Basis
Combination
date
Recognition
basis of
combination
date
income of the
combined party
from the
beginning of the
current period to
the date of
merger
Net profit of the
merged party
from the
beginning of the
current period to
the date of
merger
Income
of the
merged
party
during
the
comparis
on period
Net profit of the
merged party
during the
comparison
period
Tunghsu
(Yingkou)
Optoelectroni
c
Display Co.
Ltd.
65.00% Parent
Company
June 302018 Pay the
consideration
and control
the operation
27289664.99 -11435425.33 160694
29.21
-13043965.22
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
3. Disposal of subsidiaries
Name Equity disposal
price
Proportion Disposal way Time of loss of
control
Basis difference
between the
disposal price
and the disposal
of the
investment in
the consolidated
financial
statements at
the level of the
net assets of the
subsidiary
Xuyou
Electronic
Material
Technology
（Wuxi) Co.Ltd.
550million 51.00% Sales April 282018 Received the
consideration
completed the
transfer of
property rights
lost control
3182206.12
Continued
Name Proportion
of
remaining
equity on
the date of
loss of
control
Book value of
the remaining
equity on the
date of loss of
control
Fair value of
the remaining
equity on the
date of loss of
control
Re-measure
the gain or loss
arising from
the remaining
equity at fair
value
Method for
determining the
fair value of the
remaining equity
on the date of loss
of control and main
assumptions
Amount of other
comprehensive
income related to
Atomic Company's
equity investment
transferred to
investment gains
and losses
Xuyou
Electronic
Material
Technology
（Wuxi) Co.Ltd.
0.00% 0.00 0.00 0.00 0.00 0.00
4. The total that this period adds wants subsidiary company
（1）On March 82018Shenzhen Xuhui Investment Holding Co. Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co. Ltd. with the registered capital of RMB
22.7345 million and the paid-up capital of RMB 22.7345 million. Of which Shenzhen Xuhui Investment Holding
Co. Ltd.Subscribet and pays RMB 12 million holding 52.78% of the shares. Jiangxi University of Science and
Technology subscribet and pays RMB 10.7345 million holding 47.22% of the shares.
（2）On March 232018 Mingshuo(Beingjing )Electronic Technology Co. Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB30
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
million and the paid-up capital of RMB200.00.
（3）On May 172018 Tunghsu Constructtion Group Co. Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co. Ltd . With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 162018 Mingshuo(Beijing)Electronic Technology Co. Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB 30
million and the paid-up capital of RMB 100000;
（5）On July 262018 Jiangsu Yitai Intelligent Equipment Co. Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co. Ltd. With the registered capital of RMB 20 million Jiangsu Tunghsu Yitai Intelligent Equipment
Co. Ltd. holds 51% of the shares Liu Yang holds 32% of the shares Xiajinlong holds 17% of the shares.
（6）November 62018 Tunghsu Optoelectronic Technology Co. Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co. Ltd. With the registered capital of RMB 1 million and the paid-up capital
of RMB10 million.
IX.Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Hebei Guanghua Accounting Firms Co. Ltd.(LLP)
Remuneration for domestic accounting firm (RMB10000) 350
Continuous life of auditing service for domestic accounting firm 6
Name of domestic CPA Qi Zhenghua Meing Xiaoguang
Continuous life of auditing service for domestic accounting firm 5
Has the CPAs been changed in the current period
□ Yes √ No
CPAs firm for the internal control audit
□ Applicable √ Not applicable
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII.Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
XV.Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan or Other
Employee Incentive Measures
√Applicable □ Not applicable
1. The Company's first session of staff shareholding plan totaled RMB 495.4 million and involved full-amount
subscription of 72639296 shares in the Company's 2015 private placement through Changjiang Xingli No.2
Directed Issue Plan at cost price of RMB 6.82/share. Going public at Shenzhen Stock Exchange on December 17
2015 the preceding shares will sustain 48 months in total. The restriction on sales was relieved in the staff
shareholding plan on December 18 2018. The due date is December 16 2019.
2. The Company set up the second session of its staff shareholding plan on September 5 2017. Through the
assembled fund trust plan of the Zhonghai Trust-Tunghsu Optoelectronic Staff Shareholding Plan 52555280
shares of the Company were bought at the secondary market in such methods as centralized bidding and block
trade involving the amount of RMB 496412100 RMB 9.45/share in average; on December 28 2017 the
transaction was completed and funds earned were transferred to the account of the assembled fund trust plan. The
duration is 24 months and the duration of the Employee Stock Ownership Plan will expire on September 4 2019.XVI.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
Thousa
nds)
Ratio in
similar
trades
Trading
limit
approve
d（TenThousands）
Whethe
r over
the
approve
d
limited
or not
(Y/N)
Way of
paymen
t
Market
price of
similar
trade
availabl
e
Date of
disclosu
re
Index
of
informa
tion
disclos
ure
Beijing
Zhonghua
n Xinrong
Trade
Co. Ltd.
Controll
ed by
the
same
actual
controll
er
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
19613.
27
19613.
27
14543.
56
No
Currenc
y
19613.
27
January
272018
http://w
ww.cni
nfo.co
m.cn
Huidong
Baoan
Jinan
Real
estate
Develop
Controll
ed by
the
same
actual
controll
Selling
goods
and
providin
g
services
Constru
ction
Enginee
ring
Referen
ce price
setting
31340.
93
31340.
93
31340.
93
No
Currenc
y
31340.
93
April
202018
http://w
ww.cni
nfo.co
m.cn
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
ment Co.Ltd.er
Kunming
Tunghsu
Qiming
Investme
nt
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
29849.
72
29849.
72 35000 No
Currenc
y
29849.
72 April
202018
http://w
ww.cni
nfo.co
m.cn
Shengzho
u 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
13213.
64
13213.
64
20000 No
Currenc
y
13213.
64
April
202018
http://w
ww.cni
nfo.co
m.cn
Zhangzho
u
Shenghua
Real
Eaeste
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
15910.
00
15910 20000 No
Currenc
y
15910
April
202018
http://w
ww.cni
nfo.co
m.cn
Zhongsha
n
Shenzhon
g Real
Eaeste
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
38804.
29
38804.
29
38804.
29
No
Currenc
y
38804.
29
April
202019
http://w
ww.cni
nfo.co
m.cn
Total -- --
148731
.85
-- 159688
.78
-- -- -- -- --
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
occur in the current period(if any)
Nil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Reason for any significant difference
between the transaction price and the
market reference price (if applicable)
Not applicable
2. Related-party transactions arising from asset acquisition or sale
√ Applicable □Not applicable
Related
parties
Relations
hip
Type of
trade
Subjects
of the
related
transactio
ns
Principle
of pricing
the
related
transactio
ns
Book
value of
assets
transferre
d（Tenthousand）
Valuation
of
transferre
d assets
（Tenthousand）（If any）
Transferprice（Tenthousand）
Way of
payment
Transacti
on gain orloss（Tenthousand）
Date of
disclosure
Index of
informati
on
disclosure
TunghsuT
echnolo
gy
Group
Co. Ltd.
Same
control
Equity
transfer
Disposal
of
subsidiari
es
Based on
audited
net assets
54681.78 0 55000
Monetary
funds
-318.22
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
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable √ Not applicable
No such cases in the reporting period.XVII.Particulars about significant contracts and their fulfillment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
1. Particulars about trusteeship contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No such cases in the reporting period.
(2) Contract
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Lease
□ Applicable √ Not applicable
No such cases in the reporting period.
2.Guarantees
√Applicable □Not applicable
（1）Guarantees
In RMB10000
Guarantee of the Company for the controlling subsidiaries (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)
Auto sales mortgage
customers
July
142018
150000 42510.39
The joint
liability
guaranty
No No
Total of external guarantee
approved in the report term (A1)
150000
Total of external guarantee
actually occurred in the
report term (A2)
42510.39
Total of external guarantee
approved as of end of report term
(A3)
150000
Total of external guarantee
actually occurred as of end
of report term (A4)
42510.39
Guarantee of the company for its subsidiaries
Guarantee provided to
Amount of
guarantee
and date of
disclosure
Amount of
the
guarantee
Actual date of
occurring
(signing date of
agreements
Actual
amount of
guarantee
Type of
guarantee
Term
Complete
d or not
Related
guarantee
Wuhu Optoelectronic
June
202013
132000
November
122013
71250
The joint
liability
guaranty
96 months No No
Wuhu Optoelectronic
September
272013
90000 February 62014 41250
The joint
liability
guaranty
96 months No No
Wuhu Equipment
April
112014
150000 October 302014 33000
The joint
liability
96 months No No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
guaranty
Wuhu Optoelectronic
November
182016
52300
December
22016
43341.17
The joint
liability
guaranty
72months No No
Xuhong
Optoelectronic
January
112018
8000 February 92018 8000
The joint
liability
guaranty
12months No No
Guangxi Sunlong
March
102018
5000 0 No No
Sunlong Bus
March
102018
10000 March 272018 7000
The joint
liability
guaranty
12months No No
Sunlong Bus
March
102018
6000 April 22018 3000
The joint
liability
guaranty
12months No No
Sunlong Bus
March
272018
5000 March 302018 5000
The joint
liability
guaranty
12months No No
Guangxi Sunlong
March
272018
10000 0
Wuhu Optoelectronic
March
272018
10000 March 282018 10000
The joint
liability
guaranty
12months No No
Wuhu Optoelectronic
March
272018
10000 March 272018 10000
The joint
liability
guaranty
12months No No
Wuhu Optoelectronic
April
142018
7000 April 242018 5000
The joint
liability
guaranty
12months No No
Guangxi Sunlong
April
142018
4950 April 282018 2500
The joint
liability
guaranty
12months No No
Zhenzhen Xin Ying
Tong
April
142018
10000 10000
The joint
liability
guaranty
12months No No
Tunghsu （Kunshan）
May
112018
38000 May 142018 38000
The joint
liability
guaranty
The
guarantee
period is
from the date
when the
No No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
pledge right
is established
to the date
when all the
guaranteed
debts under
the Finance
Lease
Contract are
paid off.Zhengzhou Xufei
June
132018
5000 June 292018 5000
The joint
liability
guaranty
No No
Suzhou Tengda
June
132018
5000 June 282018 2000
The joint
liability
guaranty
No No
Wuhu Tunghsu
June
162018
15000 June 262018 15000
The joint
liability
guaranty
No No
Wuhu Equipment
June
162018
15000 June 292018 15000
The joint
liability
guaranty
No No
Suzhou Tengda
July
142018
2000 0
Shanghai Sunlong
July
142018
20000 0
Zhengzhou Xufei
July
142018
20000 0
Tunghsu（Kunshan）
July
142018
15000 July 262018 4950
The joint
liability
guaranty
No No
Shenzhen Xin Ying
Tong
July
282018
10000 July 282014 10000
The joint
liability
guaranty
No No
Guangxi Sunlong
July
282018
10000
September
102018
5000
The joint
liability
guaranty
No No
Chongqing
Jinghuateng
August
42018
2000
September
262018
1000
The joint
liability
guaranty
No No
Zhengzhou Xufei August 8000 September 8000 The joint No No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
312018 182018 liability
guaranty
Shanghai Sunlong
September
222018
4000
November
52018
2000
The joint
liability
guaranty
No No
Jiangsu Jixing
September
222018
10000
September
302018
9235.07
The joint
liability
guaranty
No No
Zhengzhou Xufei
September
222018
12000
September
282018
12000
The joint
liability
guaranty
No No
Chongqing
Jinghuateng
September
222018
2000
September
272018
2000
The joint
liability
guaranty
No No
Hunan Tunghsu Delai
October
202018
12000
December
192018
2000
The joint
liability
guaranty
No No
Guangxi Sunlong
October
202018
30000
November
292018
5000
The joint
liability
guaranty
No No
Jingsu Tunghsu Yitai
October
202018
2000 0
The joint
liability
guaranty
Suzhou Tengda
October
312018
2000 October 312018 2000
The joint
liability
guaranty
No No
Chongqing
Jinghuateng
October
312018
2500
November
202018
2500
The joint
liability
guaranty
No No
Guangxi Sunlong
October
312018
30000
December
282018
11000
The joint
liability
guaranty
No No
Suzhou Tengda
November
242018
2500
December
32018
2500
The joint
liability
guaranty
No No
Tunghsu （Kunshan）
November
242018
30000
December
112018
10000
The joint
liability
guaranty
No No
Zhengzhou Xufei
Optoelectronic
December
262018
202400
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology Co. Ltd.Sichuan Xuhong
Optoelectronic
Technology Co. Ltd.Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co. Ltd.
Chenzhou Xuhong
Transportation
Construction Co.Ltd.
Shenzhen Wuyulunbi
Technology Co. Ltd
Hunan Tunghsu Delai
Electric Technology
Co. ltd. Chongqing
Jinghuateng
Optoelectronic
Technology and
Fuzhou Xufu
Optoelectronic
Technology Co. Ltd.Shanghai Sunlong
December
262018
2500 0
The joint
liability
guaranty
No No
Total of guarantee for subsidiaries
approved in the Period (B1)
594850
Total of actual guarantee
for subsidiaries in the
Period (B2)
264500
Total of guarantee for subsidiaries
approved at Period-end (B3)
1104150
Total of actual guarantee
for subsidiaries at
Period-end (B4)
224685
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)
The Company’s total guarantee(i.e.total of the first three main items)
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total guarantee quota approved in
the reporting period（A1+B1+C1）
744850
Total amount of guarantee
actually incurred in the
reporting period
（A2+B2+C2）
307010.39
Total guarantee quota already
approved at the end of the
reporting period（A3+B3+C3）
1254150
Total balance of the actual
guarantee at the end of the
reporting period
（A4+B4+C4）
267195.39
The proportion of the total amount of actually guarantee in the netassets of the Company (that is A4+B4+C4）%
8.22%
Including：
Amount of guarantee for shareholders actual controller and itsassociated parties（D
0
The debts guarantee amount provided for the Guaranteed parties
whose assets-liability ratio exceed 70% directly or indirectly（E）
0
Proportion of total amount of guarantee in net assets of the
Company exceed 50% (F)
0
Total guarantee Amount of the abovementioned guarantees
（D+E+F）
0
Explanations on possibly bearing joint and several liquidating
responsibilities for undue guarantees (if any)
No
Explanations on external guarantee against regulated procedures
(if any)
No
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.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
Nil
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Nil
4. Other significant contract
□ Applicable √ Not applicable
Nil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
XVIII. Social responsibilities
1. Performance of poverty relieving responsibilities
See the Corporate Social Responsibility Report disclosed by the Company on the same day for details.
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.
3.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Yes
Company or
subsidiary
name
Main
pollutant
and
specific
pollutant
name
Emission way
Emissio
n port
number
Emission
port
distribution
condition
Emission
concentratio
n
(mg/Nm3)
Implemented
pollutant emission
standards
Total
emission
Verified
total
emission
(Tons)
Excessive
emission
condition
Fuzhou
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
COD
After the
treatment reaches
the standard it
enters the urban
sewage pipe
network
1
Total
wastewater
discharge
outlet in
southeast
corner of
plant area
25mg/L
Integrated
Wastewater
Discharge Standard
GB8978-1997
3.19T/ye
ar
117.1T/y
ear
Not
exceeded
Fuzhou Ammoni 1 Total 6.8mg/L Water quality 0.87T/ye 15.6T/ye
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
a
Nitrogen
wastewater
discharge
outlet in
southeast
corner of
plant area
standard for sewage
to be discharged into
urban sewage drain
CJ-343-2010
ar ar
Sichuan
Xuhong
Optoelectro
nic
Technology
Co. Ltd.
NOX
SO2
particulat
e matter
(melting
furnace)
particulat
e matter
(ingredie
nts
broken
glass)
After being treated
by dust removal
system and
denitration
system it is
discharged into
the atmosphere
3
Furnace
exhaust gas:
60-meter
high
chimney
batching
particulate
matter in
northwest
of the plant
area:
crushed
glass feed
particulate
matter on
batching
roof in
northwest
of the plant
area: 3rd
floor of
crushed
glass
feeding
building in
northwest
of the plant
area
NOX≤700m
g/m3
SO2≤400m
g/m3
Granule
(melting
furnace)
≤50mg/m3
Particulate
matter
(batching
broken
glass)≤30m
g/m3
Emission Standard of
Air Pollutants for
Flat Glass Industry
(GB26453-2011)
NOX：
82.67ton
s
/year
SO2：
1.28
tons/yea
r
Particula
te
matter:
2.09
tons/yea
r
NOX：
82.67ton
s/year
SO2：
8.49
tons/yea
r
Particula
te
matter:
6.23
tons/yea
r
On April
28 2018
the
coordinat
ed
monitorin
g of the
air
monitorin
g and
measurin
g tube
showed
that the
company'
s glass
furnace
emitted
742mg/m
3 of NOX
(emission
limit: 700
mg/m3
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
Nitrogen
oxides
The furnace flue
gas is discharged
after being treated
by a bag filter and
the boiler flue gas
is discharged after
being treated by a
low-nitrogen
burner
5
1 chimney
for the
first-stage
glass
furnace 1
chimney for
the
second-stag
e glass
furnace and
Flue gas
discharge
port of
first-stage
furnace:
161.3
mg/m3. Flue
gas
discharge
port of
The flue gas of glass
furnace shall be
subject to the limit
values in Table 2 of
Emission Standard of
Air Pollutants for
Electronic Glass
Industry
(GB29495-2013)
and the flue gas of
9.72t/a
10.014t/
a
Not
exceeded
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
1 chimney
for each of
the 3 natural
gas boilers
second-stag
e furnace:
205.7
mg/m3.boiler shall be
subject to the
emission limit values
in Table 1 of
Emission Standard of
Air Pollutants for
Boiler
(GB13271-2014)
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
Sulphur
Dioxide
5
1 chimney
for the
first-stage
glass
furnace 1
chimney for
the
second-stag
e glass
furnace and
1 chimney
for each of
the 3 natural
gas boilers
Flue gas
outlet of
first-stage
furnace: not
detected.
Flue gas
outlet of
second-stag
e furnace:
not
detected.The flue gas of glass
furnace shall be
subject to the limit
values in Table 2 of
Emission Standard of
Air Pollutants for
Electronic Glass
Industry
(GB29495-2013)
and the flue gas of
boiler shall be
subject to the
emission limit values
in Table 1 of
Emission Standard of
Air Pollutants for
Boiler
(GB13271-2014)
0.0466t/
a
1.387t/a
Not
exceeded
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
Particula
tes
5
1 chimney
for the
first-stage
glass
furnace 1
chimney for
the
second-stag
e glass
furnace and
1 chimney
for each of
the 3 natural
gas boilers
Flue gas
discharge
port of
first-stage
furnace:
8.44mg/m3.
Flue gas
discharge
port of
second-stag
e furnace:
25.1mg/m3
The flue gas of glass
furnace shall be
subject to the limit
values in Table 2 of
Emission Standard of
Air Pollutants for
Electronic Glass
Industry
(GB29495-2013)
and the flue gas of
boiler shall be
subject to the
emission limit values
in Table 1 of
Emission Standard of
Air Pollutants for
Boiler
0.827t/a \
Not
exceeded
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(GB13271-2014)
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
COD Domestic
wastewater is
discharged after
biochemical
(AO2) treatment
and production
wastewater is
discharged after
1
The
company
has set up a
total
wastewater
discharge
port
62.3mg/L
Implementation of
the integrated sewage
discharge standard
(GB8978-1996) table
4 secondary
standards
5.02t/a 9.1t/a
Not
exceeded
Zhengzhou
Xufei
Optoelectro
nic
Technology
Co. Ltd.
Ammoni
a
Nitrogen
1
The
company
has set up a
total
wastewater
discharge
port
0.763mg/L
Implementation of
the integrated sewage
discharge standard
(GB8978-1996) table
4 secondary
standards
0.08t/a 0.13t/a
Not
exceeded
Tunghsu（Yingkou）
Photoelectri
c display
Co. Ltd.
Wastewa
ter PH
Grinding
wastewater and
cleaning
wastewater are
respectively
treated by the
grinding
wastewater
treatment system
and the cleaning
wastewater
treatment system
and then together
with the domestic
wastewater treated
by the oil
separation tank +
septic tank they
are collected into
the total
wastewater
discharge port of
the plant area and
discharged
through the
municipal pipe
network of the
industrial base to
1
Near the
gate on the
east side of
the plant
area
Integrated
Wastewater
Discharge Standard
of Liaoning Province
（DB21/1627-2008）
Wastewa
ter
volume
535m3/d
Wastewa
ter
volume
No
Tunghsu（Yingkou）
Photoelectri
c display
Co. Ltd.
Wastewa
ter COD
1
Near the
gate on the
east side of
the plant
area
52.07mg/L
Integrated
Wastewater
Discharge Standard
of Liaoning Province
（DB21/1627-2008）
9.93t/a 57.21t/a No
Tunghsu（Yingkou）
Photoelectri
c display
Co. Ltd.
Wastewa
ter SS
1
Near the
gate on the
east side of
the plant
area
28.78mg/L
Integrated
Wastewater
Discharge Standard
of Liaoning Province
（DB21/1627-2008）
5.44t/a 56.71t/a No
Tunghsu（Yingkou）
Photoelectri
c display
Co. Ltd.
Wastewa
ter BOD
1
Near the
gate on the
east side of
the plant
area
22.25mg/L
Integrated
Wastewater
Discharge Standard
of Liaoning Province
（DB21/1627-2008）
4.24t/a 47.64t/a No
Tunghsu（Yingkou）
Photoelectri
c display
Co. Ltd.
Ammoni
a
nitrogen
in
wastewat
er
1
Near the
gate on the
east side of
the plant
area
1.31mg/L
Integrated
Wastewater
Discharge Standard
of Liaoning Province
（DB21/1627-2008）
0.25t/a 5.73t/a No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
85
the third sewage
treatment plant of
Liaoning
(Yingkou) coastal
industrial base for
further treatment.Wuhu
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
（SO2） After passing
through the flue
gas treatment
system it is
directly
discharged into
the atmosphere.
2
Between
plant 101
and plant
202
19.5 mg/m3 SO2≤400 mg/m3 1.89 t 4.52 t/a No
Wuhu
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
(NOX) 2
Between
plant 101
and plant
202
166 mg/m3 NOX≤700 mg/m3 33.03 t 84.76 t/a No
Wuhu
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
(COD)
After
neutralization it
enters the
Chengdong
Sewage Treatment
Plant through
municipal sewage
pipe network
1
East side of
the east gate
of the
company
26 mg/L COD≤500 mg/L 40.09 t 42.5 t/a No
Wuhu
Tunghsu
Optoelectro
nic
Technology
Co. Ltd.
(NH3-N) 1
East side of
the east gate
of the
company
0.979 mg/L / 1.51 t 2.86 t/a No
Tunghsu
（Kunshan
）Display
Material
Co. Ltd.
COD
TP
ammonia
nitrogen
Wastewater is
discharged to the
sewage treatment
plant through
pipelines
1
South side
of the plant
area
101.4mgL
0.066 mg/L
0.238 mg/L
Standards for Class 4
surface water
36.5tons
0.023ton
s
0.085ton
s
62.442
tons
0.096
tons
0.723ton
s
No
Tunghsu
（Kunshan
）Display
Material
Co. Ltd.
Organic
exhaust
gas
(TVOC)
Organic exhaust
gas is treated by
exhaust gas
treatment facilities
and then
1
The west
roof of the
main plant
building
1.58 mg/m3
DB12/524-2014
Emission Control
Standard for
Industrial Enterprises
Volatile Organic
0.58 吨
10.081to
ns
No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
discharged
through a 25m
chimney
Compounds
Tunghsu
（Kunshan
）Display
Material
Co. Ltd.
Acid
exhaust
gas
(HCL
Organic exhaust
gas is treated by
exhaust gas
treatment facilities
and then
discharged
through a 25m
chimney
1
The west
roof of the
main plant
building
0.42 mg/m3
GB16297-96
Integrated Emission
Standard of Air
Pollutants
0.02tons
0.333ton
s
No
Tunghsu
（Kunshan
）Display
Material
Co. Ltd.
Particula
te matter
SO2
NOx
Exhaust gas is
discharged
through a 25m
chimney
1
The north
roof of the
main plant
building
5.62 mg/ m3
0.311
mg/m3
45.32
mg/m3
GB13271-2014
Emission Standard of
Air Pollutants for
Boiler
0.0103
tons
0.006
tons0.23
1tons
0.231ton
s0.014
tons
5.361ton
s
No
Tunghsu
（Kunshan
）Display
Material
Co. Ltd.
Alkali
mist
Exhaust gas is
treated by exhaust
gas treatment
facilities and then
discharged
through a 25m
chimney
1
The west
roof of the
main plant
building
4.83mg/m3
Refer to
GB28665-2012
Emission Standard of
Steel Rolling
Industry
0.626ton
s
2.294ton
s
No
Jiangsu
Jixing New
Material
Co. Ltd.
COD Discharge into the
municipal sewage
treatment plant
through the
sewage pipe
network
1
WS-960001
west side of
sewage
treatment
station
≤500 HJ/T399-2007
5.2446to
ns
22.774to
ns
No
Jiangsu
Jixing New
Material
Co. Ltd.
SS 1
WS-960001
west side of
sewage
treatment
station
≤150 GB/T11901—1989
0.4995to
ns
13.002to
ns
No
Jiangsu
Jixing New
Material
Co. Ltd.
Sulfuric
Acid
Mist
Discharge into the
atmosphere
through alkali mist
spraying treatment
facilities
1
FQ-960001
north side
of
manufacturi
ng
workshop
Emission
concentratio
n ≤ 100
mg/m3;
Emission
rate
≤0.26kg/h
GB16297-1996
0.00216
5tons
0.206ton
s
No
Shanghai
Sunlong
Wastewa
ter:
After the
treatment reaches
1
Total
wastewater
197mg/L
Integrated
Wastewater
/ /
Not
exceeded
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Bus Chemica
l oxygen
demand
the standard it
enters the urban
sewage pipe
network
discharge
outlet in
southeast
corner of
plant area
Discharge Standard
(DB31/199-2018)
Shanghai
Sunlong
Bus
Wastewa
ter: Total
nitrogen
1
Total
wastewater
discharge
outlet in
southeast
corner of
plant area
21.93mg/L
Integrated
Wastewater
Discharge Standard
DB31/199-2018
/ /
Not
exceeded
Shanghai
Sunlong
Bus
Wastewa
ter:
suspende
d
substanc
e
1
Total
wastewater
discharge
outlet in
southeast
corner of
plant area
42.67mg/L
Integrated
Wastewater
Discharge Standard
DB31/199-2018
/ /
Not
exceeded
Shanghai
Sunlong
Bus
Wastewa
ter:
petroleu
m
1
Total
wastewater
discharge
outlet in
southeast
corner of
plant area
2.54mg/L
Integrated
Wastewater
Discharge Standard
DB31/199-2018
/ /
Not
exceeded
Shanghai
Sunlong
Bus
Wastewa
ter: Total
phosphor
us
1
Total
wastewater
discharge
outlet in
southeast
corner of
plant area
1.41mg/L
Integrated
Wastewater
Discharge Standard
DB31/199-2018
/ /
Not
exceeded
Shanghai
Sunlong
Bus
Exhaust
gas:
volatile
organic
compoun
ds
(VOCs)
When it reaches
the standard after
the treatment it
will be discharged
at high altitude
4
West of the
plant area
4.33mg/m3
Emission Standards
of Air Pollutants for
Automobile
Manufacturing
Industry (Coating)
(DB32/859-2014)
39.289 /
Not
exceeded
Shanghai
Sunlong
Exhaust
gas:
When it reaches
the standard after
10
To the west
of the
9.545mg/m3
Emission Standard of
Air Pollutants for
0.00134 0.02
Not
exceeded
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Bus sulfur
dioxide
the treatment it
will be discharged
at high altitude
central part
of the plant
area
Industrial Kiln and
Furnace
DB31/860-2014
Shanghai
Sunlong
Bus
Exhaust
gas:
nitrogen
oxide
10
To the west
of the
central part
of the plant
area
13.04mg/m3
Emission Standard of
Air Pollutants for
Industrial Kiln and
Furnace
DB31/860-2014
0.625 0.84
Not
exceeded
Shanghai
Sunlong
Bus
Exhaust
gas:
welding
fumes
11
To the south
of the
central part
of the plant
area
＜20mg/m3
Integrated Emission
Standard of Air
Pollutants
DB31/933-2015
1.001 1.04
Not
exceeded
Guangxi
Sunlong
Chemica
l oxygen
demand
ammonia
nitrogen
pH
toluene
xylene
particulat
e matter
Continuous
Blowdown
32
There is 1
total sewage
outlet and
31 exhaust
outlets in
the painting
workshop
COD:
45mg/L
Ammonia
nitrogen:
2.66 mg/L
Toluene
0.215mg/m3
Xylene
0.5mg/m3
Particulate
3.2mg/m3
Integrated
Wastewater
Discharge Standard
Level 3 Standard;
Integrated Emission
Standard of Air
Pollutants
COD:1.
61 tons
Ammoni
a
nitrogen:
0.18
tons
Toluene:
0.042
tons
Xylene:
0.04
tons
Particula
te
matter:
0.384
tons
No No
Wuhu
Tunghsu
Optoelectro
nic
Equipment
Technology
Co. Ltd.
Wastewa
ter
noise
solid
waste
(waste
cutting
liquid)
Wastewater; After
treatment it is
discharged by
Wuhu Tunghsu
Photovoltaic
Technology Co.Ltd after reaching
the standard;
Noise: reasonable
layout and noise
reduction
measures; Solid
/ /
Meet the
requirement
s and
standards
Integrated
Wastewater
Discharge Standard
(GB8978-1996) and
Emisson Standard for
Industrial Enterprises
Noise at Boundary
（GB12348-2008）
Noise:
up to
standard
Wastewa
ter: up to
standard
after
treatmen
t solid
waste
(waste
cutting
Subject
to the
requirem
ents of
environ
mental
protectio
n
standard
s
No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
waste: waste
cutting liquid shall
be recovered and
treated by a
qualified company
liquid):
0.2 tons
Changqing
Xufu
Optoelectro
nic
Technology
Co. Ltd.
Domesti
c sewage
Access to
municipal sewage
treatment pipe
network
1
Yingtian
Gonggu
wastewater
pipe
network
/
Limits for Surface
Water
0.4350 0.4350 /
Chongqing
Jinghuateng
Optoelecron
ic
Technology
Co. Ltd.
Non-met
hane
total
hydrocar
bon
Be organized 1 / 60
Emission standard of
packaging and
printing industry
/ 0.38 No
Suzhou
Tengda
Opotic
Technology
Co. Ltd.
Domesti
c sewage
Access to
municipal sewage
treatment pipe
network
1 / /
Water quality
standard for sewage
to be discharged into
urban sewage drain
/ / /
Hefei
Jinghua
Optoelectro
nic
Technology
Co. Ltd.
Domesti
c sewage
Access to
municipal sewage
treatment pipe
network
/ / /
Water quality
standard for sewage
to be discharged into
urban sewage drain
/ / /
Chengdu
Tunghsu
Intelligence
Technology
Co. Ltd.
Waste
water
Directly discharge
to industrial port
sewage pipe
network
4
Undergroun
d water pipe
in the park
8mg/L
Water quality
standard for sewage
to be discharged into
urban sewage drain
（CJ3082-1999）
14t/a 15 t/a No
Chengdu
Tunghsu
Intelligence
Technology
Co. Ltd.
DUST Bag filter 2
Production
Workshop
1mg/ m3
Integrated Emission
Standard of Air
Pollutants
(GB16297-1996)
secondary standards
110 mg/
m3
120mg/
m3
No
Chengdu
Tunghsu
Intelligence
Technology
tin and
its
compoun
ds
Air extraction and
exhaust system
2
Production
Workshop
0.24mg/ m3
Integrated Emission
Standard of Air
Pollutants
(GB16297-1996)
3.3 mg/
m3
8.5 mg/
m3
No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Co. Ltd. secondary standards
Chengdu
Tunghsu
Intelligence
Technology
Co. Ltd.
NOISE / / In the Zone
Daytime
(65) dB/A
Nightime
(55) dB/A
Emission Standard
for Industrial
Enterprises Noise at
Boundary
(GB12348-2008)
16500
m3/h
20000
m3/h
/
Entrust financial expected to be unable to recover the principal or impairment might be occurred
1.Fuzhou Tunghsu Optoelectronic Co. Ltd.
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.Sichuan Xuhong Optoelectronic Technology Co. Ltd.
1)SCR denitration system (1 set)
The company uses natural gas as the fuel for glass production and the air pollutants produced are mainly
particulates sulfur dioxide and nitrogen oxides. In 2015 the company spent a lot of money to establish an SCR
denitration system. Untreated furnace flue gas enters the electrostatic precipitator of the denitration system
through the flue. The dedusted flue gas enters the SCR reactor with ammonia water as reductant and V2O5/TiO2
as catalyst. Nitrogen oxides in the flue gas are reduced to N2 and then enter the 60-meter-high chimney through
the outlet flue for emission. In order to ensure that the pollutants discharged by the company reach the standard
the denitration system operates continuously throughout the year. The denitration system of the company is
equipped with two flue gas induced draft fans (one for use and one for standby) which adopt double-loop power
supply. The operation personnel of denitration treatment facilities are subject to 4 shifts and 3 rotations to ensure
that the operation personnel are on duty 24 hours a day. The operation management shall be carried out strictly in
accordance with the operation procedures operation instructions and inspection tour operation instructions and
the operation parameters shall be monitored in real time to ensure the normal operation rate of denitration system
to the greatest extent.
2) Dust removal equipment (13 filter cartridge dust collectors and 1 bag filter)
The company produces a small amount of particulate matter in the process of glass feeding and batching. At
the beginning of the factory in 2011 the company installed filter cartridge dust collectors in all silos broken glass
feeding systems and kiln head feeding ports of the batching workshop to collect the particulate matter generated in
the feeding and batching process. In order to ensure that the discharged particles reach the standard in February
2015 the company collected the exhaust cylinders of all silos into a main pipe and installed a bag filter to carry
out secondary dust removal on the treated residual particles. The dust removal equipment of the company is
operated intermittently. During the gap period the post personnel clean the filter cartridge and filter bag of the
dust removal equipment and carry out regular maintenance to ensure the normal operation of the dust removal
equipment in the operation process.
3. Zhengzhou Xufei Optoelectronic Technology Co. ltd
1) Invest 1.094 million yuan to implement ultra-low nitrogen renovation on 3 gas boilers (2 10t/h boilers and
1 6t/h boiler) with nitrogen oxide emission concentration lower than 30mg/m3 which has passed the verification
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
of Zhengzhou Ecological Environment Bureau.
2) An investment of 790000 yuan has been invested to install an on-line monitoring system for furnace flue
gas to realize the grid connection with Zhengzhou Ecological Environment Bureau.
3) Environmental protection facilities operate continuously and stably throughout the year. There is no
unplanned shutdown. All pollutants are discharged stably up to standard. No environmental violations occur.
4. Tunghsu (Yingkou) Optoelectronic Display Co. Ltd.
1) The output of grinding wastewater in this project is 160m3/d mainly containing SS and wastewater. The
wastewater is collected through pipelines enters the grinding wastewater equalization tank of the wastewater
treatment station and is pumped into the grinding wastewater treatment system for treatment. The wastewater is
discharged into the sedimentation tank for coagulation sedimentation after being precipitated by stepped
precipitation tank and finally discharged into the integrated treatment system for further treatment and then
discharged into the sewage treatment plant of the industrial base for further treatment through the municipal pipe
network of the industrial base. This project adopts coagulation and sedimentation process to treat grinding
wastewater. The design capacity of the grinding wastewater treatment system is 400 m3/d and the production
capacity of grinding wastewater in this project is 176m3/d. It is fully capable of treating grinding wastewater
generated in this project.
2) The cleaning wastewater enters the regulating tank adjusts its PH value for neutralization treatment and
then is pumped into the sedimentation tank and is discharged into the total sewage outlet of the plant area after
sedimentation treatment. The treatment capacity of the cleaning wastewater treatment system in this project is 700
m3/d and the production capacity of the cleaning wastewater in this project is 210 m3/d which is fully capable of
treating the cleaning wastewater produced in this project.
3) The discharge amount of domestic wastewater in this project is 20 m3/d including washing flushing and
canteen drainage. The main pollutants COD SS ammonia nitrogen etc. are designed in the domestic wastewater
treatment system. Oil separation tank+septic tank is adopted for treatment which has good removal effect on large
suspended solids animal and plant oil etc. Septic tank is a common simple biochemical treatment measure for
wastewater. It has good and stable treatment effect on domestic sewage.
4) Three-layer anti-seepage measures are adopted for the production workshop chemical warehouse and
ground of this project i.e. the bottom layer shall be paved with not less than 30 cm thick concrete for compaction
whose top shall be paved with 100mm thick concrete and then hardened with 200mm thick high-strength
concrete to ensure the permeability coefficient is less than 1x10-7cm/s and the water treatment structure shall be
constructed with anti-seepage concrete; Each link of drainage is transported by cement or ceramic anti-seepage
pipelines. Except for Green land the ground of the plant area is all coated with cement plastering anti-seepage
hardening. After the anti-seepage and anti-corrosion measures mentioned above are adopted the pollution effects
of chemical warehouse and production workshop on groundwater can be effectively prevented.
5. Wuhu Tunghsu Optoelectronic Technology Co. Ltd
The company has a flue gas treatment system an industrial wastewater treatment station and a septic tank. In
order to ensure the normal operation of pollution prevention facilities the company has formulated relevant
management systems explicitly requiring the facility usage and operation departments to regularly maintain and
service the facilities. At present the company's pollution prevention and control facilities are operating normally
and stably and the discharge of various pollutants meets the discharge standards.
6. Tunghsu (Kunshan) Display Material Co. Ltd
The company has built a set of volatile organic compounds system an acid exhaust treatment system an alkali
exhaust treatment system a boiler exhaust system a acid and alkaline wastewater treatment system and an organic
wastewater treatment system. At present all systems except the volatile organic compounds system are installed
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
with automatic monitoring systems and operate normally. Cuerrently the automatic monitoring system of the
volatile organic compounds system is not perfect with certain potential safety hazards. At present the equipment
responsible unit is preparing an automatic control improvement scheme to realize real-time monitoring of
equipment operating parameters. During the scheme improvement period the on-duty personnel conduct regular
on-site inspections to ensure the normal operation of the equipment.
7. Jiangsu Jixing New Material Co. Ltd
The existing wastewater treatment facilities of Jiangsu Jixing New Material Co. Ltd are operating normally
with an approved wastewater treatment capacity of 52030 t/a; The expanded sewage treatment station facility was
put into operation in April with an approved wastewater treatment capacity of 147037 t/a.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co. Ltd. operates normally throughout the year. The main pollutants are wastewater
exhaust gas and hazardous waste. The rain and sewage diversion drainage system was completed in 2008. An
industrial wastewater treatment station was built to mainly treat coating wastewater in the production process
with a designed treatment capacity of 10 t/h and a physical and biochemical treatment process adopted. All the
production wastewater will be discharged into the municipal sewage pipe network (Yuanshan Road) together with
domestic sewage after reaching the treatment standard and finally into the Bailonggang system. During the
reporting period the wastewater treatment station operated normally and the discharge reached the standard.
Exhaust gas treatment: organic exhaust gas (VOCs) from spraying and painting is treated by zeolite rotating wheel
+RTO combustion process and then discharged at high altitude; low-concentration organic exhaust gas (VOCs) is
treated by activated carbon adsorption and desorption + catalytic combustion process and discharged at high
altitude after reaching the standard; Online monitoring system (FID) is installed at the discharge port of organic
exhaust gas (VOCs) to monitor the emission value in real time; For particulate matter welding fumes etc. filter
core filtration technology is adopted to remove dust and the dust is discharged at high altitude after reaching the
standard; Facilities that need to be heated in the production process shall be natural gas burners. Through the
ternary internal circulation process natural gas is efficiently combusted energy consumption is reduced and
pollutant emission is reduced.
9. Guangxi Sunlong Automobile Manufacturing Co. Ltd
1) Construction of pollution prevention and control facilities
Exhaust gas emission and treatment: The coating exhaust gas uses water-filled + activated carbon adsorption
device to control volatile organic compounds toluene xylene and other atmospheric pollutants. The purified
exhaust gas is discharged through a 15m high exhaust cylinder. The company has 6 water-filled+activated carbon
adsorption devices; Catalytic combustion device is used to control volatile organic compounds toluene xylene
and other air pollutants in the coating and drying waste gas. The purified waste gas is discharged through a 15m
high exhaust cylinder. The company has 3 sets of catalytic combustion device; The putty polishing chamber glass
fiber reinforced plastic polishing chamber and midway polishing chamber adopt the process of installing bag filter
at the bottom exhaust channel and the top of the air supply to control atmospheric pollutants such as particulate
matters. The collected waste particulate matters after bag filter are respectively discharged through a 15m high
exhaust cylinder. The company has a total of 8 bag dust removal devices. The waste gas from paint makeup is
controlled by activated carbon adsorption devices to control volatile organic compounds particulate matters and
other atmospheric pollutants. The company has 8 sets of activated carbon adsorption devices and the purified
waste gas is discharged through a 15m high exhaust cylinder.Wastewater discharge and treatment: the company's wastewater mainly consists of domestic wastewater rain
test wastewater and coating circulating wastewater among which the rain test wastewater is discharged every six
months and the coating circulating wastewater is discharged every quarter the domestic wastewater is treated by
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
septic tank and mixed with the production wastewater then enters the plant sewage treatment station for treatment
and then is discharged to Wuxiang sewage treatment through municipal sewage pipe network for further treatment.The plant sewage treatment station mainly adopts the process of oil isolation +UASB anaerobic+biological
contact oxidation.Noise treatment: reasonable layout of high-noise equipment and noise control measures such as sound
insulation sound absorption and vibration reduction.Solid waste treatment: the solid wastes generated by the company mainly include general solid wastes such as
paper skins and cartons and hazardous wastes such as paint residues and waste organic solvents among which
paint residues and other hazardous wastes are entrusted to CECEP (Guangxi) CleanTech Development Co. Ltd.which has a hazardous waste management license for disposal.
2) Operation
In 2018 the company's environmental protection equipment and facilities operated continuously reliably and
stably regular pollutant monitoring was carried out and the requirements of the national environmental protection
emission standard were implemented strictly to ensure that all kinds of pollutants reach the standard for emission.
10. Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd
Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the workshop
1. Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the
workshop at the same time through the barrier of the workshop it basically falls inside the workshop; 2.Measures for prevention and control of wastewater pollution: Before domestic wastewater is discharged into the
pipeline of Wuhu Tunghsu Optoelectronic Technology Co. Ltd.. and Wuhu Tunghsu Optoelectronic Technology
Co. Ltd. takes over Chengdong Sewage Treatment Plant and it meets the discharge standard after being treated
by buried sewage treatment facilities; 3. Noise pollution prevention and control measures: low-noise and
high-performance equipment shall be selected and measures such as foundation construction wall barrier and
greening barrier shall be taken for these noise sources; 4. Prevention and control measures for solid waste
pollution: general solid waste is comprehensively utilized waste cutting liquid is entrusted to a qualified unit
(Maanshan Guandong Lubricating Oil Co. Ltd.) for recycling and domestic waste is handed over to the sanitation
department for treatment.
11. Chongqing Xufuda Optoelectronic Technology Co. Ltd
Water pollution: the existing 2# biochemical pool of Yingtian ? Liangjiang industrial valley standard plant
building project is used to treat and discharge the municipal sewage pipe network in the park. The domestic
sewage in the plant area is connected to the municipal sewage treatment pipe network and the domestic sewage is
discharged up to the standard.
12. Chongqing Jinghuateng Optoelectronic Technology Co. Ltd
Solid waste: after centralized collection of domestic waste it shall be uniformly treated by the district sanitation
department. It is strictly prohibited to dump and stack waste at will. Domestic waste shall be cleared every day.Solid wastes shall be treated in strict accordance with relevant regulations without causing secondary pollution.
13. Chengdu Tunghsu Intelligent Technology Co. Ltd
1) Wastewater: All kinds of wastewater can meet the requirements of Grade III standard of Integrated
Wastewater Discharge Standard (GB8978-1996) after being treated by corresponding measures. Wastewater is
discharged into the sewage pipe network of the park from the main discharge port and enters Qingshui River after
being treated by Chengdu Cooperative Sewage Treatment Plant and an obvious signboard is set at the main
discharge port.
2) Exhaust gas: Solder smoke is collected through the exhaust system provided by welding equipment above
each area and finally collected by a 20-meter-high exhaust cylinder and directly discharged after which it can
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
meet the Grade II standard of Integrated Emission Standard of Air Pollutants (GB16297-1996).
3) Noise: Reasonable arrangement of sound sources; Low noise equipment is adopted in the selection; Most of
the noise equipment is installed in a closed plant building; Evolutionary exhaust system.
Environmental impact assessment of construction projects and other administrative permission for environmental
protection
1. Fuzhou Tunghsu Optoelectronic Technology Co. Ltd
The company strictly implements the environmental impact assessment system and "Three Simultaneities" system
and the construction project is legal and compliant. The project was approved by Fuqing Environmental
Protection Bureau in September 2016.
2. Sichuan Xuhong Optoelectronic Technology Co.Ltd
The company's "PDP Glass Substrate Project" and "10 million m2 of High-strength and Ultra-thin Display
Cover Glass Project" compiled environment impact report form and obtained EIA approval. The two projects
passed EIA acceptance in 2015 and 2017 respectively. Our company obtained the new sewage permit in 2017 and
2012. In 2018 it strictly carried out sewage discharge and various environmental management according to the
requirements of the new sewage permit.
3. Zhengzhou Xufei Optoelectronic Technology co. ltd
EIA for Phase I of the project: on August 16 2009 the Henan Environmental Protection Department passed
the Reply of Henan Environmental Protection Department on the Environmental Impact Report of TFT-LCD
Glass Substrate Production Line of Zhengzhou Xufei Photoelectric Technology Co. Ltd (YHS [2009] No. 295)
and on February 24 2011 the Henan Environmental Protection Department passed the Opinions on
Environmental Protection Acceptance for the completion of TFT-LCD Glass Substrate Production Line Project of
Zhengzhou Xufei Optoelectronic Technology Co. Ltd (YHPY [2011] No. 12).
EIA for Phase II of the roject: On November 2 2010 Henan Environmental Protection Department approved
the Reply of Henan Provincial Environmental Protection Department on the Environmental Impact Report of
Zhengzhou Xufei Photoelectric Technology Co. Ltd. on the Project of Annual Output of 2.2 Million sq.m. Liquid
Crystal Glass Substrate Production Line (YHS [2010] No. 251) and on February 28 2014 Henan Environmental
Protection Department approved the Reply of Zhengzhou Xufei Optoelectronic Technology Co. Ltd. on the
Application for Completion of Environmental Protection Acceptance of the Project of Annual Output of 2.2
Million sq.m. Liquid Crystal Glass Substrate Production Line (YHS [2014] No. 77).
4. Tunghsu (Yingkou) Optoelectronic Display Co. Ltd.
The environmental impact report was approved in February 2012 and the processing environmental protection
acceptance was completed in March 2018. It is qualified upon acceptance.
5. Wuhu Tunghsu Optoelectronic Technology Co. Ltd
The company's environmental impact assessment and other environmental protection administrative licenses
are shown in the following table:
Time Environmental impact assessment and other environmental protection administrative permits
November 2011 Anhui Environmental Science Research Institute has compiled and completed the Environmental Impact
Report of Wuhu Tunghsu optoelectronic Technology Co. Ltd. Display Glass Substrate Production Line Project.
December 2011 Anhui Provincial Environmental Protection Department approved the project with EIA Letter [2011] No. 1283
Reply on Environmental Impact Report of Wuhu Tunghsu Optoelectronic Technology Co. Ltd. Display Glass
Substrate Production Line Project.March 2012 Anhui Environmental Science Research Institute has compiled the Environmental Impact Report of Changes to
Flat Panel Display Glass Substrate Production Line Project of Wuhu Tunghsu optoelectronic Technology Co.
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.March 2012 Anhui Environmental Protection Department approved the change of EIA for the project with EIA Letter
[2012] No 298 Letter on the Review Opinions of Environmental Impact Report of Wuhu Tunghsu
Optoelectronic Technology Co. Ltd Flat Panel Display Glass Substrate Production Line Project.
April 2014 The Anhui Environmental Protection Department approved the Letter of Anhui Environmental Protection
Department on approving the phased trial production of Wuhu Tunghsu Optoelectronic Technology Co. Ltd
Flat Panel Display Glass Substrate Production Line Project (WHH [2014] No. 472) and approved the phased
trial production of the project.June 2015 Through the 1-4 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.October 2017 Through the 5-8 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.
December 2018 Through the 9-10 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.
6. Tunghsu (Kunshan) Display Material Co. Ltd
The examination and approval opinions of the environmental impact report of the construction project were
obtained in July 2015. Currently the environmental protection Three Simultaneities acceptance operation is
underway. The expert review of the environmental impact assessment Three Simultaneities acceptance will be
completed in February 2019. In the preparation of the Three Simultaneities acceptance report the publicity is
expected to be completed by the end of March 2019. Currently due to hazardous waste problems (if the waste
developer and concentrated waste liquid with high concentration of nitrogen do not conform to the contents of the
environmental impact report it needs to be disposed of outside the contract according to the requirements of the
environmental impact report with records kept) for the overal acceptance part the acceptance data cannot be
submitted to the Environmental Protection Bureau. Currently the application for outsourcing disposal of waste
developer and concentrated waste liquid containing high concentration nitrogen has been submitted. The
outsourcing disposal is expected to be completed in April during the purchasing contract negotiation.
7. Jiangsu Jixing New Material Co. Ltd
Jiangsu Jixing New Material Co. Ltd has obtained the approval of Yangzhong Municipal Environmental
Protection Bureau for the new project of producing 2.6 million large-size Micro-LED sapphire intelligent
production lines annually with the approval document number of YHS [2018] No. 64.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co. Ltd. strictly implements the environmental impact assessment system and Three
Simultaneities system and the construction project is legal and compliant. The project was approved for
completion and acceptance by Shanghai Minhang District Environmental Protection Bureau (MHBGXY [2009]
No. 041) in January 2009.
9. Guangxi Sunlong Automobile Manufacturing Co. Ltd
Nanning Yuanzheng All-aluminum New Energy Automobile Production Base Project was approved by Guangxi
Environmental Protection Bureau on October 22 2015 with the approval document number of GHS [2015]
No.175. The project completed the environmental protection completion acceptance on March 27 2018 with the
completion acceptance document number of GHS [2018] No.45.
10. Wuhu Tunghsu optoelectronic Equipment Technology Co. Ltd
1) Before the construction of the project a third party unit shall be entrusted to prepare the environmental
impact assessment report and file it through Wuhu Environmental Protection Bureau (document No.: HH [2013]
No.156).
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
2) Accepted by Wuhu Environmental Protection Bureau (document No: HY [2016] No.190).
11.Suzhou Tengda Optical Technology Co. Ltd.
Wuhuanjian{2013}No.632
12.Chongqing Fuda Optoelectronic Technology Co. Ltd.Yu（Liangjiang）HZ［2018］No.090
13.Chongqing Jinghuateng Optoelectronic Technology Co. Ltd.Yu（Liangjiang）HZ{2017No.}240
14.Hefei Jinghuateng Optoelecrronic Technology Co. Ltd.
FDJSZD{2016}No.248
15.Chengdu Tunghsu Intelligent Technology Co. Ltd.
Documents such as enterprise investment project filing notice (PF Project No.2011-119) request for instructions
on environmental standards (PH No.2011-88) approval of environmental standards (CHJF No.2011-204) review
opinions on environmental impact report (CHJP 2009-406) etc.
Emergency response plan of emergency environmental event
1. Fuzhou Tunghsu Optoelectronic Technology Co. Ltd
The company commissioned a qualified third party to prepare the Plan for Environmental Emergencies of Fuzhou
Tunghsu optoelectronic Technology Co. Ltd. and regularly organize and carry out training and drills of the plan to
effectively improve the enterprises' emergency response capability and disposal capability to environmental
pollution emergencies.
2. Sichuan Xuhong Optoelectronic Technology Co. Ltd.
There are natural gas hydrogen liquefied petroleum gas diesel and other risk substances in the company so in
December 2015 the company organized and formulated the Plan for Environmental Emergencies and submitted it
to Mianyang Environmental Protection Bureau for filing. In 2019 our company will apply to Mianyang
Environmental Protection Bureau to carry out "revision review and filing of the plan for environmental
emergencies" according to relevant management requirements.
3. Zhengzhou Xufei Optoelectronic Technology co. ltd
The company has emergency plans for hazardous waste accidents environmental anormaly for wastewater
discharge radiation sources and abnormal exhaust emissions.
4. Tunghsu (Yingkou)Optoelectronic Display Co. Ltd.
The company has a sound environmental emergency plan which mainly includes: environmental pollution
incidents caused by leakage of hazardous waste storage devices leakage of natural gas and diesel oil fire and
explosion accidents in the plant area; Noise ingredient dust outflow of hazardous chemicals environmental
pollution events caused by radiation source leakage and other environmental pollution events caused by force
majeure.
5. Wuhu Tunghsu Optoelectronic Technology Co. Ltd
According to the relevant requirements of the Emergency Response Law of the People's Republic of China
Wuhu Tunghsu Optoelectronic Technology Co. Ltd. has compiled the Plan for Environmental Emergencies of
Wuhu Tunghsu Optoelectronic Technology Co. Ltd. in accordance with the Risk Classification Method for
Environmental Emergencies of Enterprises and in combination with the actual situation of Wuhu Tunghsu
Optelectronic Technology Co. Ltd. which describes the emergency rescue principles emergency rescue
procedures and emergency rescue measures for environmental emergencies of the company and is a
programmatic document and operational guideline for guiding the emergency management of environmental
emergencies of the company. The plan was reported to Wuhu Environmental Protection Bureau for filing in
November 2015 (for the record: 340207-2015-016-L). After three years it was reported to Wuhu Environmental
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Protection Bureau for filing again in September 2018 as required (for the record: 340207-2018-044-L).
6. Tunghsu (Kunshan) Display Material Co. Ltd
The company completed the environmental emergency plan report in July 2018 completed the expert review and
final report revision in August and obtained the emergency plan filing approval on September 14.
7. Jiangsu Jixing New Material Co. Ltd
Jiangsu Jixing New Material Co. Ltd entrusted a third party to prepare and file the Comprehensive Plan for
Environmental Emergencies in 2017. The number of the emergency plan is JSJX-YA-2017001 and the version
number of the emergency plan is 2017 (1).
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co. Ltd.'s Plan for Environmental Emergencies of Shanghai Sunlong Bus Co. Ltd. has
been filed for environmental protection (Filing No.: 3102212018043) and regular training and drills of the plan
have been organized to effectively improve the enterprises' emergency response and disposal capabilities to
environmental pollution emergencies.
9. Guangxi Sunlong Automobile Manufacturing Co. Ltd
On November 2 2017 the company entrusted Guangxi Gaobiao Monitoring Co. Ltd. to prepare a plan for
environmental emergencies. The report was prepared on January 21 2018 and passed the expert group review. On
May 22 2018 Yongning District Environmental Protection Bureau completed the filing of the plan for
environmental emergencies of Guangxi Sunlong Automobile Manufacturing Co. Ltd. with the filing number of
450109-2018-0002-m.
10. Suzhou Tengda Optical Technology Co. Ltd. Chongqing Xufuda Optoelectronic Technology Co. Ltd.
Chongqing Jinghuateng Optoelectronic Technology Co. Ltd. Hefei Jinghuateng Optoelectronic Technology Co.
Ltd.The above subsidiaries have formulated the corresponding Emergency Plan Management System and have
trained all employees and publicized the emergency plan team members.
11. Chengdu Tunghsu Intelligent Technology Co. Ltd
Chengdu Tunghsu Intelligent Technology Co. Ltd. adheres to the principle of "clean production emission up to
standard and total amount control" formulates feasible pollution prevention and control measures establishes and
improves the environmental system formulates environmental management formulation defines the main
responsibilities of the management organization analyzes the environmental risks and collects public
participation opinions which can fully meet the requirements of national and local environmental protection laws
and standards.
Environmental self-monitoring plan
1. Fuzhou Tunghsu Optoelectronic Technology Co. Ltd
The company strictly abides by national and local laws regulations and relevant provisions and entrusts Fujian
Tuopu Detection Technology Co. Ltd. to carry out monthly detection of the company's wastewater quarterly
detection of the company's noise and timely log on to its own monitoring website every month to upload data and
information such as detection results.
2. Sichuan Xuhong Optoelectronic Technical Co.Ltd
According to the national environmental protection management requirements the company has prepared a
self-monitoring plan for the environment. The company has installed a flue gas on-line analyzer to carry out
on-line monitoring of the major pollutants nitrogen oxides sulfur dioxide and particulate matter in furnace flue
gas and upload the monitoring data to the national environmental protection platform in real time. For the smoke
blackness hydrogen chloride fluoride and ingredient particles that cannot be monitored online a third party
organization is entrusted to carry out manual monitoring every quarter. For the particulate matter and ammonia
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
emitted by the factory without organization a third party organization is entrusted to carry out manual monitoring
every six months. All monitoring data are uploaded to the monitoring iInformation disclosure platform of national
key monitoring enterprise pollution source.
3. Zhengzhou Xufei Optoelectronic Technology co. ltd
The company has an on-line waste gas monitoring system which tests waste gas manually once a month and is
outsourced for test once a year; There is an online monitoring system for wastewater which tests the wastewater
manually once a day and is outsourced for test once a year.
4. Tunghsu (Yingkou) Optoelectronic Display Co. Ltd.
1) The management of solid wastes and hazardous wastes is strengthened relevant management systems are
formulated and ledgers are established the whereabouts of wastes are strictly controlled and wastes are disposed
according to national standards.
2) The wastewater station is equipped with wastewater online monitoring and dosing equipment to monitor
the pH value of wastewater in real time; In the morning and evening the pH value of wastewater from the total
sewage outlet is monitored manually to ensure that the wastewater discharge reaches the standard.
5. Wuhu Tunghsu Optoelectronic Technology Co. Ltd
The company has 1 set of waste water on-line monitoring system and 1 set of flue gas on-line monitoring system
for plant 101 and 202 respectively. The monitoring data are uploaded to the municipal environmental monitoring
platform in real time. In addition the company entrusts a qualified third-party environmental monitoring agency
to carry out quarterly and annual monitoring of the company's plant environment every year and requires the
monitoring agency to provide monitoring reports. Monitoring items include: monitoring of domestic sewage
production wastewater unorganized waste gas organized waste gas and noise. The company judges whether
relevant environmental indicators meet relevant environmental protection requirements according to monitoring
results. So far the company's emissions of various pollutants have not exceeded the standard.
6. Tunghsu (Kunshan) Display Material Co. Ltd
The wastewater discharge port is provided with automatic monitoring equipment for COD TP ammonia
nitrogen and flow rate and the online monitoring equipment is all networked with the Environmental Protection
Bureau to monitor the wastewater discharge status in real time to ensure the discharge reaching the standard; All
exhaust gas treatment systems except the volatile organic compounds system are equipped with automatic
monitoring measures to monitor the running status of the treatment device in real time. Qualified third-party units
are entrusted to carry out exhaust gas emission testing every year to ensure the standard emission. Currently there
is no automatic monitoring system in the volatile organic compounds system and there are certain potential safety
hazards. At present the equipment responsible unit is preparing an automatic control improvement plan. During
this period the personnel on duty will conduct regular on-site inspections to ensure the normal operation of the
equipment.
7. Jiangsu Jixing New Material Co. Ltd
Hardware facilities: In addition to the PH real-time monitoring equipment installed in the sewage treatment
station of Jiangsu Jixing New Material Co. Ltd 2 sets of PH real-time monitoring equipment 1 set of COD
on-line monitoring equipment 1 set of PLC system that stops discharging when exceeding the standard and 1 set
of real-time data transmission system for sewage treatment are also installed on the sewage discharge pipeline.Software facilities: Jiangsu Jixing New Material Co. Ltd entrusts a third party to regularly monitor the treatment
of wastewater and exhaust gas and entrusts a real-time monitoring equipment maintenance unit to regularly
maintain and check environmental protection equipment.
8. Shanghai Sunlong Bus Co. Ltd
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shanghai Sunlong Bus Co. Ltd. strictly abides by national and local laws regulations and relevant provisions
and entrusts ICAS Testing Technology Services (Shanghai) Co. Ltd. to carry out quarterly testing of wastewater
exhaust gas and noise as required. It regularly logs on the environmental protection census platform and the
environmental statistics business system to upload data and information such as testing results.
9. Guangxi Sunlong Automobile Manufacturing Co. Ltd
Currently the company is entrusting a third-party qualification unit to carry out emission permit application and
environmental self-monitoring plan preparation.
10. Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd
As Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd. and Wuhu Tunghsu Optoelectronic
Technology Co. Ltd. are located in a park and the rain and sewage pipelines in the park are managed by Wuhu
Tunghsu Optoelectronic Technology Co. Ltd. with the environmental self-detection scheme adopted. The
company will regularly carry out noise detection and wastewater detection and Wuhu Tunghsu Optoelectronic
Technology Co. Ltd. will supervise the company.
11. Suzhou Tengda Optical Technology Co. Ltd. Chongqing Xufuda Optoelectronic Technology Co. Ltd.
Chongqing Jinghuateng Optoelectronic Technology Co. Ltd. Hefei Jinghuateng Optoelectronic Technology Co.
Ltd.
1) Strengthen the management of "Three Simultaneities" of the project to ensure the construction of
environmental protection facilities.
2) Regularly maintain and service mechanical equipment to prevent environmental pollution caused by
equipment failure.
3) Strengthen the operation and management of various pollutant treatment facilities to ensure that pollutants
meet the standards for discharge.
4) Carry out domestic sewage discharge inspection every year and arrange a third party to carry out noise
and workshop environment inspection.
12. Chengdu Tunghsu Intelligent Technology Co. Ltd
1) Self-monitoring plan of the enterprise: since the company does not have an independent sewage treatment
station the management committee provides unified assistance for treatment and since there is no independent
monitoring equipment and facilities for waste gas and noise manual instruments are usually used for monitoring.
2) Commissioned monitoring: Since the company does not have the expertise to monitor exhaust gas and
noise the qualification testing company (Sichuan Jiuhe Evaluation Company) is invited to conduct annual
workplace hazard factor testing and issue a written testing report which shall be filed with the system and
management committee.Other environmental information to be disclosed
1. Fuzhou Tunghsu Optoelectronic Technology Co. Ltd
1) The environmental self-monitoring information disclosure website of Fuzhou Tunghsu Optoelectronicc
Technology Co. Ltd.:
http://wryfb.fjemc.org.cn/page0.aspx?id=CLDICBRK-37EH-9PYO-8M63-F288U13S89W8
2) The environmental protection acceptance information public website of Fuzhou Tunghsu Optoelectronicc
Technology Co. Ltd.: http://114.251.10.205/#/pub-message
2. Sichuan Xuhong Optoelectronic Technology Co.Ltd
The company publicized the acquisition of the company's environmental protection administrative licensing
procedures pollution discharge information solid waste management environmental risks and monitoring
information on the environmental credit evaluation website.
3. Zhengzhou Xufei Optoelectronic Technology co. ltd
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Environmental protection credit information management system for enterprises and institutions in Henan
province and environmental information disclosure system in Henan province.
4. Tunghsu (Yingkou) Optoelectronic Display Co. Ltd.
The environmental impact assessment platform of the company's construction project is available
athttp://114.251.10.205/#/pub-message
5. Wuhu Tunghsu Optoelectronic Technology Co. Ltd.
1) The company's construction of EIA and acceptance are publicized in the EIA information platform of
construction project (http://114.251.10.205/#/pub-message).
2) Use Wechat Public Account to publicize relevant environmental protection information of the company.
6. Tunghsu (Kunshan) Display Material Co. Ltd
At present the environmental protection Three Simultaneities acceptance is being carried out. The acceptance
report and the acceptance data are being compiled by the manufacturer. After completion it is expected to be
published on Kunshan website in China at the end of March.
7. Jiangsu Jixing New Material Co. Ltd
Website of EIA report form full publication for sapphire intelligent production line: http://www.212200.com
8. Shanghai Sunlong Bus Co. Ltd
The company's unit name unified social credit code legal representative production address main contents of
production and operation products and scale dosage of raw and auxiliary materials and other basic information
the construction and operation of public pollution prevention facilities the names of major pollutants and
characteristic pollutants their emission methods number and distribution of emission ports emission
concentration and environmental protection data pollution such as pollutant emission standards implemented are
released on the environmental information disclosure platform of enterprises and institutions.
9. Chengdu Tunghsu Intelligent Technology Co. Ltd
In February 2019 Chengdu Tunghsu Intelligent Technology Co. Ltd has carried out a hazard factor test in the
workplace and issued a written test report. The test contents include noise benzene toluene xylene dust tin and
their compounds. The company has invested a lot of money and adopted advanced treatment systems for
wastewater exhaust gas noise and risk control which shows that the company attaches great importance to
environmental protection and is consistent with the company's image as a green environmental protection
industry.Other information related to environmental protection
Hazardous Waste Pollutants from Shanghai Sunlong Bus Co. Ltd
Name of the
Company or its
subsidiary
Names of major and
characteristic
pollutants
Disposal
mode
Storage place Production
distribution
Executive
Standards
Output in 2018
(tons)
Disposal
Rate
(ton)
Inventory
(ton)
Shanghai Sunlong
Bus Co. Ltd.
900-252-12 Commissio
ned by a
qualified
third party
for
disposal
Temporary
storage room
for hazardous
wastes
Painting
workshop
assembly
workshop
commissio
ning
workshop
/ 21.66 23 15
900-252-12 5.87 5.31 2.74
900-014-13 6.6 4.8 4.85
900-041-49 40.21 43.12 1.89
900-041-49 1.3 0 1.3
900-218-08 0.4 0 0.4
900-041-49 5.55 0 5.55
900-041-49 2.25 0 2.25
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
XIX. Explanation on other significant events
□ Applicable √ Not applicable
Nil
XX. Material issues of the subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
1. Changes in share capital
1.Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio
n
Share
allotm
ent
Bon
us
shar
es
Capitaliz
ation of
common
reserve
fund
Other Subtotal Quantity Proportion
1.Shares with
conditional
subscription
1385624525 24.18% -769529722 -769529722 616094803 10.75%
2. State-owned legal
person shares
60389095 1.05% -60389095 -60389095
3.Other domestic
shares
1325235430 23.13% -709140627 -709140627 616094803 10.75%
Incl：Domestic legal
person shares
1323974680 23.11% -709140627 -709140627 614834053 10.73%
Domestic Natural
Person shares
1260750 0.02% 1260750 0.02%
II.Shares with
unconditional
subscription
4344625593 75.82% 769529722 769529722 5114155315 89.25%
1.Common shares in
RMB
4094625592 71.46% 769529722 769529722 4864155314 84.89%
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
□ 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
In Shares
Shareholder Name
Initial Restricted
Shares
Number of
Unrestricted
Shares This
Term
Number
of
Increased
Restricted
Shares
This
Term
Restricted
Shares in the
End of the
Term
Reason for Restricted
Shares
Date of Restriction
Removal
Tunghsu Group 791889488 439882697 352006791
Non-public issue
restricted shares of 2015
439882687 shares
will be released on
December
192018；
106326446 shares
will be released on
November
302020；
245680345 shares
will be released on
December 292020.
Tunghsu Optoelectronic
Technology Co. Ltd.－
The first ESOP
72639296 72639296 0
Non-public issue
restricted shares of 2015
December 192018
Kunshan Development
Zone State-owned
Investment Holding Co.Ltd.
43988269 43988269 0
Non-public issue
restricted shares of 2015
December 192018
Beijing Yingfei Hailin 29325513 29325513 0 Non-public issue December 192018
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Investment Center
(Limited Partnership)
restricted shares of 2015
Shanghai Changjiang
Wealth & Asset
Management Co. Ltd.
－China Merchants
Bank－Changjiang
Wealth －Tunghsu
No.1 Special Asset
Management Plan
8005865 8005865 0
Non-public issue
restricted shares of 2015
December 192018
Shanghai Huimao
Enterprise Management
Co. Ltd.
262626262 262626262
In 2017 shares were
issued and cash was paid
to purchase assets and
matching funds and
related transactions were
raised
November 302020
Minsheng Royal Fund
Management Co. Ltd－
-Ping An Bank-Daye
Trust·Zengli 2 single
Fund Trust
97192224 97192224 0
In 2017 shares were
issued and cash was paid
to purchase assets and
matching funds and
related transactions were
raised
December 292018
Beixin Ruifeng Fund－
China Merchants Bank
－Daye Trust－Daye
Trust·Profit increase 3
single fund plan
62095032 62095032 0
In 2017 shares were
issued and cash was paid
to purchase assets and
matching funds and
related transactions were
raised
December 292018
Mianyang Technology
City Development
Investment （Group）
Co. Ltd.
11380165 11380165 0
In 2017 shares were
issued and cash was paid
to purchase assets and
matching funds and
related transactions were
raised
December 292018
Sichuan Changhong
Elec Co.Ltd
5020661 5020661 0
In 2017 shares were
issued and cash was paid
to purchase assets and
matching funds and
related transactions were
raised
December 292018
The 40 Shareholders
Awarded Stock
1260750 1260750
Equity incentive and top
management locking
Repurchase
cancellation of
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Incentive shares share incentive
object after
dismission or
repurchase
cancellation for
failure to meet the
unlocking
conditions
The 9 Non-agency
Restricted Shareholders
before the First Issue
201000 201000
Before the first offering
institutional shareholders
restricted from sales
When the relevant
shareholders
entrust the
company to handle
the business of
lifting the
restrictions on the
sale of shares
Total 1385624525 769529722 0 616094803 -- --
II.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
III.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
number
of
commo
n
sharehol
ders at
the end
of the
reportin
g period
350362
Total
shareholders
at the end of
the month
from the
date of
disclosing
the annual
report
357676
The total number of prefer
red shareholders voting ri
ghts restored at period-en
d
(if any)(See Notes 8)
0
Total
preferred share
holders at the
end of the
month from the
date of
disclosing the
annual report(if
any)(See Notes
8)
0
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders
Nature of
shareholder
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-owne
d legal
person
15.97%
915064091
35200679
1
563057300 Pledge 799643042
Shijiazhuang
Baoshi
Electronic
Group Co. Ltd.
Domestic
Non
-State-owne
d legal
person
5.80%
332382171
332382171 Pledge 153520000
Shanghai
Huimao
Enterprise
Management
Co. Ltd.
Domestic
Non
-State-owne
d legal
person
4.58%
262626262
26262626
2
0 Pledge 80240722
Minsheng Royal
Fund
Management
Co. Ltd－-Ping
An Bank-Daye
Trust·Zengli 2
single Fund
Trust
Other 1.70%
97192224
97192224
Qianhai equity
investment fund
(limited
partnership)
Domestic
Non
-State-owne
d legal
person
1.45%
83341345
83341345
Tunghsu
Optoelectronic
Technology Co.Ltd.－The first
ESOP
Other 1.27%
72639296
72639296
Beixin Ruifeng
Fund－China
Merchants Bank
－Daye Trust－
Other
1.27% 62095032
62095032
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Daye
Trust·Profit
increase 3 single
fund plan
Shenzhen
Taianer
Information
Technology Co.Ltd.
Domestic
Non
-State-owne
d legal
person
1.07% 61165682
61165682
Pledge 55265682
Zhonghai Trust
Co. Ltd. －
Zhonghai Trust
－ Tunghsu
Optoelectronic
ESOP pooled
Fund trust
Other
0.92% 52555280
52555280
China Life AMP
Asset
Management
Co. Ltd. －
Bohai Bank －
Minsheng Trust
－ China
Minsheng
Trust-Zhicheng
No.192 Tunghsu
Optoelectronic
Private
placement fund
trust plan
Other
0.85% 48619336
48619336
Strategy investors or general
legal person becomes top 10
shareholders due to rightsissued (if applicable)（See Notes
3）
Among the top 10 shareholders Shenzhen Taianer Information Technology Co. Ltd. Qianhai Equity
Investment Fund(Limited Partnership) China Life AMP Asset Management Co. Ltd.－Bohai Bank－
Minsheng Trust－China Minsheng Trust-Zhicheng No.192 Tunghsu Optoelectronic Private placement
fund trust plan 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Name of the shareholder
Quantity of unrestricted shares held at the end of the reporting period
(Note 4)
Share type
Share
type
Quantity
Tunghsu Group 563057300
RMB
Commo
n shares
563057300
Shijiazhuang Baoshi Electronic
Group Co. Ltd.
332382171
RMB
Commo
n shares
332382171
Minsheng Royal Fund
Management Co. Ltd－-Ping
An Bank-Daye Trust·Zengli 2
single Fund Trust
97192224
RMB
Commo
n shares
97192224
Qianhai equity investment fund
(limited partnership)
83341345
RMB
Commo
n shares
83341345
Tunghsu Optoelectronic
Technology Co. Ltd.－The first
ESOP
72639296
RMB
Commo
n shares
72639296
Beixin Ruifeng Fund－China
Merchants Bank－Daye Trust
－Daye Trust·Profit increase 3
single fund plan
62095032
RMB
Commo
n shares
62095032
Shenzhen Taianer Information
Technology Co. Ltd.
61165682
RMB
Commo
n shares
61165682
Zhonghai Trust Co. Ltd. －
Zhonghai Trust － Tunghsu
Optoelectronic ESOP pooled
Fund trust
52555280
RMB
Commo
n shares
52555280
China Life AMP Asset
Management Co. Ltd.－Bohai
Bank－Minsheng Trust－China
Minsheng Trust-Zhicheng
No.192 Tunghsu Optoelectronic
Private placement fund trust
plan
48619336
RMB
Commo
n shares
48619336
Kunshan Development Zone
State-owned Investment
Holding Co. Ltd.
43988269
RMB
Commo
n shares
43988269
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
The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co. Ltd. and the top ten shareh
olders of Tunghsu Group Co. Ltd. have relationship and constitute persons taking concerted action.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
and top 10 shareholders
Notes to the shareholders
involved in financing securities
(if any)(See Notes 4)
Not applicable
Whether the top 10 ordinary shareholders of the company and the top 10 ordinary shareholders with unlimited
terms of sale shall conduct the agreed repurchase transaction during the reporting period
2、Type of Controlling Shareholders: Legal person
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Name of the Controlling
shareholder
Legal
representative/Leade
r
Date of incorporation Organization code Principal business activities
Tunghsu Group Co. Ltd. Li Zhaoting November 52004 91130100768130363K
Investing projects with owned
funds; Development of mechanical
equipment and electronic
products; Productions and process
formulation of various
non-standard equipment and
components; Process and sales of
component for abrasive materials
and electromechanical products(no
equipment of public security);
Import and export of self-run and
agent goods and technology;
Computer system integration ;
Software development;
Technology consulting;
Installation and engineering
consulting of electromechanical
device(no pre-licensing projects
included above). (Operation is
allowed only if being within the
confines of the above laws and
regulations and the matters
forbidden or restricted by the State
Council; Operation is allowed
once the matters are examined and
approved by other departments.The equity of the controlling
shareholder in other domestic
and foreign listed companies
1. As of December 31 2018 Tunghsu Group holds 579.68 million shares of Tunghsu Lantian New Energy
Co. Ltd. (forescout: Tunghsu Lantian stock code: 000040) accounting for 38.99% of the total share
capital of the company. 2. As of December 31 2018 Tunghsu Group directly holds 35.7488 million shares
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
held or partly held by it in the
report period
of Shanghai Challenge Textile Co. Ltd. (forescout: Challenge stock code: 002468) accounting for 4.30%
of the total share capital of the company; Indirectly holds 163.19 million shares of Challenge through
Shanghai Guojun Investment Co. Ltd. accounting for 19.61% of the total share capital of the company; At
the same time it has the voting rights corresponding to 25.35 million shares of Challenge through the way
of entrusted exercise of voting rights accounting for 3.045% of the total share capital of the company;
Tunghsu Group holds voting rights corresponding to 224.29 million shares of Challenge accounting for
26.96% of the total share capital of the company.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controller nature：Domestic natural person
Actual controller type：Natural person
Name of actual controllers
Relationship with the
actual controller
Nationality
Whether to obtain the right of abode in other
countries or regions
Li Zhaoting Self Chinese No
Main occupations and duties
Mr. Li Zhaoting，Chinese born in 1965，graduated from Hebei University of Technology asa mechanical engineering major senior engineer member of the Communist Party of China
and the founder of Tunghsu Group. Li has served successively as the general manager
assistant and vice-general manager of Shijiazhuang Diesel Engine Factory and Chairman of
Hebei Tunghsu Investment Group Co. Ltd. Li is now the chairman of Tunghsu Group and
Tunghsu Photoelectric Investment general manager of COE and the vice chairman as well
as general manager of Chengdu COE.Situation of domestic and abroad
holding listed companies in the part
10 years
1. As of December 31 2018 Tunghsu Group holds 579.68 million shares of Tunghsu Lantian
New Energy Co. Ltd. (forescout: Tunghsu Lantian stock code: 000040) accounting for
38.99% of the total share capital of the company. 2. As of December 31 2018 Tunghsu
Group directly holds 35.7488 million shares of Shanghai Challenge Textile Co. Ltd.(forescout: Challenge stock code: 002468) accounting for 4.30% of the total share capital of
the company; Indirectly holds 163.19 million shares of Challenge through Shanghai Guojun
Investment Co. Ltd. accounting for 19.61% of the total share capital of the company; At the
same time it has the voting rights corresponding to 25.35 million shares of Challenge
through the way of entrusted exercise of voting rights accounting for 3.045% of the total
share capital of the company; Tunghsu Group holds voting rights corresponding to 224.29
million shares of Challenge accounting for 26.96% of the total share capital of the company.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
Block Diagram of the ownership and control relations between the company and the actual controller
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Other corporate shareholder holding over 10% of the Company’s shares
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
No preference shares in the Company.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
VIII. Information about Directors Supervisors and Senior Executives
I. Change in shares held by directors supervisors and senior executives
Name Positions
Office
status
Sex Age
Starting date
of tenure
Expiry
date of
tenure
Shares
held at
the
year-begi
n(share)
Amount
of shares
increased
at the
reporting
period(sh
are)
Amount
of shares
decreased
at the
reporting
period(sh
are)
Other
changes
increase/d
ecrease
Shares
held at
the
year-gain(
share)
Wang
Lipeng
Board
chairman
In office Male 51
August
32018
0 0 0 0 0
Zhang
Shuangca
i
Independ
ent
director
In office Male 57
July
292013
0 0 0 0 0
Lu
Guihua
Independ
ent
director
In office Male 50
May
192014
0 0 0 0 0
Han
Zhiguo
Independ
ent
director
In office Male 55
July
282016
0 0 0 0 0
Guo
Xuan
Director In office Male 53
August
202018
0 0 0 0 0
Zhou
Yongjie
Director In office Male 38
August
202018
0 0 0 0 0
Wang
Zhong
Director In office Female 42
August
202018
0 0 0 0 0
Guo
Chunlin
Chairman
of the
superviso
ry
committe
e
In office Male 39
July
282016
0 0 0 0 0
Xu
Lingzhi
Superviso
r
In office Female 52
July
282016
0 0 0 0 0
Chen
Dewei
Superviso
r
In office Male 55
July
282016
0 0 0 0 0
Xie
Juwen
Superviso
r
In office Male 41 July 82016 0 0 0 0 0
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Wan
Huanhuan
Superviso
r
In office Female 33 July 82016 0 0 0 0 0
Gong Xin
Board
secretary
In office Female 39
April
202015
100000 0 0 0 100000
Feng
Qiuju
CFO In office Female 41
July
272018
0 0 0 0 0
Wang
Jianqiang
Deputy
General
Manager
In office Male 53
July
282016
0 0 0 0 0
Liu
Wentai
Deputy
General
Manager
In office Male 48
July
282016
125000 0 0 0 125000
Wang
Junming
Deputy
General
Manager
In office Male 54
July
282016
0 0 0 0 0
Li
Zhaoting
Board
chairman
Dimission Male 53
November
302011
April
25201
8
Wu Jiwei
Board
chairman
Dimission Male 48
April
252018
August
32018
Huang
Jinliang
CFO Dimission Male 39
April
282017
July
27201
8
Wang
Zhonghui
Deputy
General
Manager
Dimission Male 41
July
282016
Decem
ber
21201
8
Total -- -- -- -- -- -- 225000 0 0 0 225000
II. Change in shares held by directors supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Li Zhaoting Board chairman Dimission April 252018 Job change
Wu Jiwei Board chairman Dimission August 32018 Personal reasons
Huang Jinliang CFO Dimission July 272018 Job change
Gong Xin Director Engaged August 32018 Company talent strategy adjustment
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
III.Posts holding
The professional background working experience and main responsibilities of the current board members
supervisors and senior managers in the company
1. Mr. Wang Lipeng Chinese nationality was born in 1968 master's degree of Tianjin University. Beginning to
work in 1989 he had served as the factory director of the electron gun factory of Shijiazhuang Baoshi Electronics
Group Co. Ltd the general manager of Shijiazhuang Bao Dong Electronics Co. Ltd the director and the general
manager of Shijiazhuang Baoshi Electronic Glass Co. Ltd the director of chairman office of Tunghsu Group Co.Ltd the general manager of Sichuan Xu Hong Optoelectronics Technology Co. Ltd.and Tunghsu
(Kunshan)Display Material Co. Ltd.
2. Mr.Guo Xuan Chinese was born in 1966 Bachelor degreeSenior Engineer He had served as Deputy General
Manager of Shijiazhuang Tractor PlantCurrently he serves as as director and vice president of Tunghsu Group
he has served as Director of Tunghsu Optoelectronic Investment Co. Ltd. director of the Company.
3.Mr. Zhou Yongjie graduated from Renmin University of China. He started work in 2007 and served as deputy
general manager and director of the office of Beijing Chengjian Building Materials Industry Co. Ltd secretary of
the chairman and director of the office of Ocasia Investment Group Co. Ltd and currently is the vice president
and director of the chairman office of the Tunghsu Group.
4. Ms. Wang Zhong Master Degree Chinese Academy of Sciences. She entered the work force in October 1999
and joined the Communist Party of China (CPC) in April 1998. She previously served as the Deputy Director of
Human Resources of Beijing Huaqi Information (Aigo) Technology Co. Ltd. the Administrative Director of
Human Resources of Gome Online the General Manager Assistant and Administrative Director the
Administrative Director of Human Resources of (Gome) Beijing Dazhong and the Administrative Director of
Human Resources of (Gome) Zhongguancun Technology Group. She is currently the Senior Vice President of
Tunghsu Group and the Executive Vice President of Tunghsu Capital.
5.Mr. Zhang Shuangcai Chinese Nationality born in 1961 PhD in Management Business Administration
postdoctoral Democratic National Construction Association. He serves as Associate Dean School of Management
Hebei University business professor World Economic doctoral tutor accounting business management
professional master tutor. He used to be Baoding CPPCC Standing Committee representative of 11th People's
Congress of Hebei Province. Now he is the representative of 12th People's Congress of Hebei Province
Executive director of the Institute of Hebei Province in budget management deputy director of the private Center
for Economic Research of Hebei Province Accounting association executive director executive director of
Private Entrepreneur Association of Hebei Province director of the Private Economic and Financial Committee of
Hebei Province committee member of National Central Economic Committee independent director of Lekai film
Co. Ltd. Boshen tools Co. Ltd. Tianwei Baobian Electrical Co. Ltd.and Huida Bathroom Co. Ltd..
6.Mr. Lu Guihua male born in May 1968 Dr. Accounting Applied Economics postdoctoral Central University
of Finance and Economics Professor of Accounting Master Instructor Chinese Certified Public Accountant. For
mer Tianjin University associate professor associate professor at the Central University of Finance and professor
at the Central University of Finance and Economics master's and doctoral tutor. ow is Independent Director of
Hanvon Technology Co. Ltd. China Minsheng Investment Corp. Ltd. Hebei Iron and Steel Co. Ltd. and the
company.
7. Mr. Han Zhiguo Chinese nationality was born in 1964 bachelor degree lawyer of Hebei Dianfan Law Firm.
He had served as the teacher of Hebei Vocational College of Politics and Law and the lawyer of Hebei Zhengchen
Law Firm. From September 2006 to September 2013 he had been served as the independent director of
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shijiazhuang Baoshi Electronic Glass Co. Ltd. Since August 2013 he has been served as the independent director
of Bosun Tools Co. Ltd and the independent director of the company.
8. Mr. Guo Chunlin Chinese nationality was born in 1980 bachelor degree in law. He began to work in 2004.
From September 2004 to November 2005 he had been served for Beijing Zhongfu Law Firm; from November
2005 to October 2007 he taught at Communication University of China. He joined Tunghsu Group Co. Ltd in
October 2007 and now he is one of the supervisors of Tunghsu Group Co. Ltd.
9. Ms. Xu Lingzhi Chinese nationality was born in 1967 bachelor degree in accounting. She began to work in
1988 and joined Tunghsu Group Co. Ltd in 2006. Currently she serves as the director of financial center of
Tunghsu Group Co. Ltd and the general manager and supervisor of risk-control center of board-office headquarter
of Tunghsu Group Co. Ltd.
10.Mr. Chen Dewei Chinese nationality was born in 1964 college degree. Currently he serves as the general
manager and supervisor of the management center ofTunghsu Group Co. Ltd.
11.Mr. Xie Juwen was born in June 1977 master degree professional in project management of Beijing
University of Technology. He had served as the R & D Engineer and the project leader of Beiren Group the
project leader and other posts of Sheet-folding Machine Branch of Beiren Group. Currently he serves as the
project manager of comprehensive office of the company and the employee-representative supervisor of the
company’s eighth board of supervisors.
12.Ms. Wan Huanhuan was born in July 1985 bachelor degree professional in accounting of Industrial and
Commercial University of Chongqing. She had served as the audit manager of Sino Railway Information Group
Co. Ltd the business manager of Jiangsu Huaxing Certified Public Accountants and the business specialist of
Shenzhen JunZhiYuan Certified Public Accountants. Currently she serves as the audit manager of the company’s
audit supervision department and the employee-representative supervisor of the company’s eighth board of
supervisors.
13.Mr. Wang Jianqiang Chinese nationality was born in 1964 university degree graduated from mechanical
specialty of Hebei University of Science and Technology. He had served for Shijiazhuang Baoshi Electronics
Group Co. Ltd and had served as the supervisor of the company’s seventh session board of supervisors. Currently
he serves as the chairman of Fuzhou Tunghsu Optoelectronic Technology Co. Ltd which is the company’s 8.5
generation glass substrate project company.
14. Mr. Liu Wentai Chinese nationality born in 1969 graduated from chemical-mechanical professional of
Qingdao Institute of Chemical Industry bachelor's degree. He had served as the workshop equipment supervisor
of Shijiazhuang Baoshi Electronics Group Co. Ltd equipment supervisor of maintenance and engineering
department of Shijiazhuang Baoshi Electric Nitrate Co. Ltd the director of liquid crystal glass research institute
of Tunghsu Group Co. Ltd the general manger of the thermal engineering department the vice president of
Tunghsu Group with a concurrent post of purchasing director. Currently he serves as the company’s vice-general
manager and is responsible for the company’s whole sets of equipment and technical services .
15.Mr. Wang Junming Chinese nationality was born in 1964 master of Beijing Jiaotong University. He had
served as the vice-general manager of Henan Anfei Electronic Glass Co. Ltd and the general manager of
Zhengzhou Xufei Optoelectronic Technology Co. Ltd. Currently he serves as Deputy General Manager of the
Company.
16. Ms.Gong Xin Nationality: Chinese born in 1979 bachelor degree. She once worked in Capital Edge
Investment and Management as Project Manager of Investment-banking Department Assistant to Chairman Vice
General Manager and etc. Now Gong is Chief of Securities Department Company Direcotr and Board Secretary
of the company.
17. Ms. Feng Qiuju graduated from Hunan University with a Bachelor Degree in Accounting Chinese Certified
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Public Accountant. She has served as Financial Controller of Beijing Top Green Grass Co. Ltd. Financial
Controller of China Century Holding Group Co. Ltd. General Manager and Assistant President (Financial Risk
Management) of Financial Management Center of Tunghsu Group Subsidiary and currently Office taking in
shareholder companies
√Applicable □Not applicable
Names of the
persons in
office
Names of the shareholders
Titles
engaged in
the
shareholders
Sharing date of
office term
Expiry date of
office term
Does he /she
receive
remuneration or
allowance from the
shareholder
Guo Xuan Tunghsu Group
Executive
Vice
president
Yes
Zhou Yongjie Tunghsu Group
Executive
Vice
president
Yes
Wang Zhong Tunghsu Group
Executive
Vice
president
Yes
Guo Chunlin Tunghsu Group Supervisor Yes
Xu Lingzhi Tunghsu Group
General
manager and
supervisor of
risk control
center
Yes
Chen Dewei Tunghsu Group
General
manager and
supervisor of
the
comprehensiv
e
management
center
Yes
Offices taken in other organizations
√Applicable □Not applicable
Name Name of other units Position
Office term
start from
Office term
ended
Whether
receiving
remuneration
from other units
or not
Wang Lipeng Tunghsu (Kunshan)Display Material Co. Board No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd. chairman
Wang Lipeng
Sichuan Xuhong Optoelectronic Technology
Co. Ltd.
Board
chairman
No
Wang Lipeng
Zhengzhou Xufei Optoelectronic
Technology Co. Ltd.
Board
chairman
No
Wang Lipeng Shijiazhuang Baodong Electric Co. Ltd. Director No
Zhang
Shuangcai
Baoding Tianwei Baocheng Electric Co.
Ltd.
Director No
Zhang
Shuangcai
Hebei Construction Industry Group Co.Ltd.
Director No
Zhang
Shuangcai
Hebei Laishui Rural Commercial Bank Co.Ltd.
Director No
Zhang
Shuangcai
Baoding Tianwei Baocheng Electric Co.
Ltd.
Director No
Zhang
Shuangcai
Qingdao Topscomm Communication
Co. Ltd
Independent
director
No
Lu Guihua HBIS CO. lTD. Director No
Lu Guihua Minsheng Holding Co. Ltd. Director No
Lu Guihua BEZ Group
Independent
director
No
Han Zhiguo Bosun Tools Co. Ltd.Independent
director
No
Guo Xuan Tunghsu Group Director No
Guo Xuan Tibet Xuri Capital Management Co. Ltd. Supervisor No
Guo Xuan Tunghsu Construction Group
Executive
director
Manager
No
Guo Xuan
Hebei Xubao Construction Installation
Engineering Co. Ltd.
Executive
director
Manager
No
Guo Xuan
Shijiazhuang Tunghsu Energy Saving
Technology Co. Ltd.Supervisor No
Guo Xuan
Tianjing Xuri Zhongtian Technology Co.Ltd.
Executive
director
Manager
No
Guo Xuan
Tunghsu Optoelectronic Investment Co.Ltd.
Director No
Guo Xuan China optoelectronic Technology Co.Ltd. Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Guo Xuan
Zhongda Chengxin International
Commercial Factoring Co. Ltd.
Board
chairman
No
Guo Xuan
Tunghsu International Investment Group
Co. Ltd.
Board
chairman
General
Manager
No
Guo Xuan
Tunghsu Rugao High-end Intelligent
Manufacturing Industry Investment
Management Co. Ltd.
Board
chairman
No
Guo Xuan Chengdu Taiyisi Technology Co. Ltd. Supervisor No
Guo Xuan
Shijiazhuang Tunghsu Medical Equipment
Co. Ltd.
Supervisor No
Guo Xuan
Guangdong Tunghsu Real Estate
Development Co. Ltd.
Supervisor No
Guo Xuan
Yuanan Tunghsu Sun New Energy
Technology Co. Ltd.
Executive
director
No
Zhou Yongjie
Huizhou Tunghsu Bay Area Industry
Investment Co. Ltd.
Executive
director
No
Zhou Yongjie
Shenzhen Xuheng Dongcheng Investment
Consulting Co. Ltd.
General
Manager
No
Zhou Yongjie
Huizhou Xuhong Hongsheng Industry
Investment Co. Ltd.
Executive
director
Manager
No
Zhou Yongjie
Huizhou Xuchanglong Industry Investment
Co. Ltd.
Executive
director
Manager
No
Zhou Yongjie Tunghsu Group Vice president No
Wang Zhong Beijing Tunghsu Capital Holding Co. Ltd.
Executive
vice president
No
Wang Zhong Tunghsu Group
Senior Vice
president
No
Guo Chunlin Beijing Xinghua Trade Co. Ltd. Supervisor No
Guo Chunlin
Beijing Tunghsu Investment Development
Co. Ltd.
Supervisor No
Guo Chunlin
Huarong Metal Surface treatment (Anping)
Technology Co. Ltd.Supervisor No
Guo Chunlin Shanghai Guojun Investment Co. Ltd. Supervisor No
Guo Chunlin
Rizhao Tunghsu Guoshan New Energy
Technology Co. Ltd.Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Guo Chunlin
Shijiazhuang Tunghsu Optoelectronic
Equipment Technology Co. Ltd.
Supervisor No
Guo Chunlin
Lixian Xuxiang New Energy Development
Co. Ltd.
Supervisor No
Guo Chunlin Shanxi Guoshan New Energy Co. Ltd. Supervisor No
Guo Chunlin
Guangdong Tunghsu Qinhuang New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin Tunghsu International Investment Co. Ltd. Supervisor No
Guo Chunlin
Xuxiu Intelligent Technology (Shanghai)
Co. Ltd.
Supervisor No
Guo Chunlin Baofeng Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin Nenjiang Quantum new energy co. Ltd. Supervisor No
Guo Chunlin Tahe Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin Ezhou Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin
Baishui Xusheng New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Shanxi Xuhui Photovoltaic Electric Co.Ltd.Supervisor No
Guo Chunlin Lufeng Xuneng New Energy Co. Ltd. Supervisor No
Guo Chunlin
Dongying Jian Photovoltaic Electric Co.
Ltd.Supervisor No
Guo Chunlin
Dongying Hekou Xufei Photovoltaic Power
Generation Co. Ltd.Supervisor No
Guo Chunlin
Dongying Xufeng New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Xuteng new energy Co. Ltd Supervisor No
Guo Chunlin
Qingshuihe Xuxin New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Licheng Xuli New Energy Technology Co.Ltd.Supervisor No
Guo Chunlin Yixian Yixu New Energy Co. Ltd. Supervisor No
Guo Chunlin
Pingshan Xulan New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Changling Jiyuan New Energy Co. Ltd. Supervisor No
Guo Chunlin
Qulan Yicai New Energy Technology Co.Ltd.Supervisor No
Guo Chunlin Lushan Tunghsu New Energy Technology Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Co. Ltd.
Guo Chunlin Lushan Xulan New Energy Co. Ltd. Supervisor No
Guo Chunlin
Huaiyang Xuneng Agriculture Technology
Co. Ltd.
Supervisor No
Guo Chunlin Huaiyang Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin
Tunghsu International Investment Group
Co. Ltd.
Director No
Guo Chunlin
Qichuan Xuchun Solar Energy
Development Co. Ltd.
Supervisor No
Guo Chunlin Tunghsu Group Supervisor No
Guo Chunlin
Henan Taihuang New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Xuanhua Chengtu Solar Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Wuhan Taihuang New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Shandan Danxu New Energy Development
Co. Ltd.
Supervisor No
Guo Chunlin
Tangshan Caofeidian Xuyuan New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin Pingliang Quantum New Energy Co. Ltd. Supervisor No
Guo Chunlin
Hunan Tunghsu Taihuang New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin
Shandong Donge Chengxing New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin
Yixing Hongji New Energy Technology Co.Ltd.Supervisor No
Guo Chunlin
Hubei Taiquan New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Woyang Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin
Yingkou Xuying New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Yuexi Xukun New Energy Technology Co.Ltd.Supervisor No
Guo Chunlin Minle Zhongsheng New Energy Co. Ltd. Supervisor No
Guo Chunlin
Zhangjiakou Haojing New Energy
Development Co. Ltd.
Supervisor No
Guo Chunlin Baoding Tianji New Energy Technology Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Co. Ltd.
Guo Chunlin
Huili Hongkun New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Gaotai Huisheng New Energy Co. Ltd. Supervisor No
Guo Chunlin
Huangmei Guoxu New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Jinxian Quantum New Energy Co. Ltd. Supervisor No
Guo Chunlin
Hainan Tunghsu Taihuang New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin
Anhui Taiquan New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Chengdu Xurong New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Pingding Quantum Photovoltaic Power
Generation Co. Ltd.Supervisor No
Guo Chunlin
Kunming Tunghsu Qiming Investment
Development Co. Ltd.
Supervisor No
Guo Chunlin
Guangshui Hongji New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Guixi Quantum New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Puyang Tunghsu New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Linqu Chengri New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Huangmei Tunghsu New Energy
Technology Co. Ltd.Supervisor No
Guo Chunlin
Eerduosi Xuyuan New Energy Development
Co. Ltd.
Supervisor No
Guo Chunlin
Gonghe Hongji New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Mianyang Xuri New Energy Co. Ltd. Supervisor No
Guo Chunlin
Youxian Xutai New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin
Zhaluteqi Tongbeo Lantian New Energy
Co. Ltd.
Supervisor No
Guo Chunlin
Xiantao Taiquan New Energy Technology
Co. Ltd.
Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Guo Chunlin
Quyang Zhengxu Photovoltaic Power
Generation Co. Ltd.Supervisor No
Guo Chunlin
Wuan Yanyan Photovoltaic Power
Generation Co. Ltd.Supervisor No
Guo Chunlin
Laiyuan Xuxi New Energy Technology Co.Ltd.Supervisor No
Guo Chunlin
Caling Xuheng New Energy Technology
Co. Ltd.
Supervisor No
Guo Chunlin Fengyang Xuyang New Energy Co. Ltd. Supervisor No
Guo Chunlin Qixian Xulan New Energy Co. Ltd. Supervisor No
Guo Chunlin
Xuanhua Chengji Solar Energy Technology
Co. ltd.
Supervisor No
Xu lingzhi Beijing Kelinsibei Technology Co. Ltd. Supervisor No
Xu Lingzhi Tunghsu Technology Development Co. Ltd. Supervisor No
Xu lingzhi Tunghsu Technology Group Co. Ltd. Supervisor No
Xu Lingzhi
Beijing Tunghsu Investment Development
Co. Ltd.
Supervisor No
Xu Lingzhi Beijing Xufeng Real Estate Co. Ltd. Supervisor No
Xu Lingzhi
Beijing Nanlide New Energy Technology
Co. Ltd.
Supervisor No
Xu Lingzhi
Beijing Yunzhikang Information
Technology Co. Ltd.Supervisor No
Xu Lingzhi
Hebei Xubao Construction Installation
Engineering Co. Ltd.
Supervisor No
Xu Lingzhi
Shijiazhuang Tunghsu Optoelectronic
Equipment Technology Co. Ltd.
Supervisor No
Xu Lingzhi Dalian Xuchang Technology Co. Ltd. Supervisor No
Xu Lingzhi Wuhan Zhongkai Technology Co. Ltd. Supervisor No
Xu Lingzhi
Fuzhou Tunghsu Optoelectronic Technology
Co. Ltd.
Supervisor No
Xu Lingzhi
Tunghsu International Investment Group
Co. Ltd.
Supervisor No
Xu Lingzhi
Huiyin Gold Control Asset Management
Co. Ltd.
Supervisor No
Xu Lingzhi
Shijiazhuang Jinshun Environmental
Protection Co. Ltd.Supervisor No
Xu Lingzhi
Fuzhou Xufu Optoelectronic Technology
Co. Ltd.
Supervisor No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Xu Lingzhi
Chongqing Xufuda Optoelectronic
Technology Co. Ltd.Supervisor No
Xu Lingzhi Tunghsu Group Supervisor No
Chen Dewei
Beijing Tunghsu Investment Development
Co. Ltd.
Chairman of
the
supervisory
committee
No
ChenDewei Tunghsu Group Supervisor Yes
Wan Huanhuan Tunghsu Group Finance Co. Ltd. Supervisor No
Wang Jianqiang
Wuhu Tunghsu Optoelectronic Technology
Co. Ltd.
Director No
Wang Jianqiang
Liaotong Xutong Solar Energy Technology
Co. Ltd.
Director No
Wang Jianqiang
Tunghsu (Yingkou) Optoelectronic Display
Co. Ltd.
Director No
Wang Jianqiang
Wuhan Tunghsu Optoelectronic Technology
Co. Ltd.
Director No
Wang Jianqiang Mudanjiang Xuyang Technology Co. Ltd. Director No
Wang Jianqiang
Jinzhou Xulong New Energy Technology
Co. Ltd.
Director No
Wang Jianqiang
Fuzhou Tunghsu Optoelectronic Technology
Co. Ltd.
Executive
director and
General
Manager
No
Wang Jianqiang
Fuzhou Xufu Optoelectronic Technology
Co. Ltd.
Board
chairman
No
Wang Jianqiang
Anhui Xuan Optoelectronic Technology
Co. Ltd.
Executive
director and
General
Manager
No
Wang Jianqiang
Shenzhen Sanbao Innovation Intelligence
Co. Ltd.
Board
chairman
No
Wang Jianqiang
Fuzhou Tunghsu Investment Development
Co. Ltd.
Executive
director
No
Wang Jianqiang
Chongqing Jinghuateng Optoelectronic
Technology Co. Ltd.
Executive
director and
General
Manager
No
Wang Jianqiang Dalian Sihai Da Tong guiding equipment Manager No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Co. Ltd.
Wang Jianqiang
Jiangsu Tunghsu Yitai Intelligent Equipment
Co. Ltd.
Executive
director and
General
Manager
No
Wang Jianqiang Suzhou Tengda Optical Technology Co.Ltd.
Board
chairman
No
Wang Jianqiang
Zhejiang Xuheng Yongxin Intelligent
Science and Technology Co. Ltd.
Executive
director and
Manager
No
Wang Jianqiang
Chongqing Xufu Optoelectronic Technology
Co. Ltd.
Executive
director
No
Liu Wentai
Wuhu Tunghsu Optoelectronic Equipment
Technology Co. Ltd.
Board
chairman
No
Liu Wentai
Beijing Tunghsu Investment Development
Co. Ltd.
Director No
Wang Junming
Zhengzhou Xufei Optoelectronic
Technology Co. Ltd.
Director and
General
Manager
No
Wang Junming
Shanghai Tanyuan Huigu New Material
Technology Co. Ltd.
Board
chairman
Manager
No
Punishments to the current and leaving board directors supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors supervisors and senior executives in the reporting period
Decision-making procedures basis for determination and actual payment of the remuneration to directors
supervisors and senior executives
The payments for the company board directors supervisors and senior managers are determined on the salary
management system. The annual payments (including basic wages bonus allowance subsidy welfare expense
and insurance premium housing accumulation funds and other pretax net payments paid by the company) paid to
board directors supervisors and senior managers in 2018 are all based on the salary standard administration
related to the job responsibilities performance appraisal and salary level of the corresponding post. During the
report period the salaries for board directors supervisors and senior managers have been paid monthly.Remuneration to directors supervisors and senior executives in the reporting period
In 10，000 yuan
Name Positions Sex Age Office status
Total
remuneration
received from the
Whether to get
paid in the
company related
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Company party
Li Zhaoting Board chairman Male 51 In Office 142.56 No
Zhang Shuangcai
Independent
Director
Male 57 In Office 5 No
Lu Guihua
Independent
Director
Male 50 In Office 5 No
Han Zhiguo
Independent
Director
Male 55 In Office 5 No
Guo Xuan Director Male 52 In office Yes
Zhou Yongjie Director Male 37 In office Yes
Wang Zhong Director Female 42 In office Yes
Guo Chunlin
Chairman of the
supervisory
committee
Male 38 In office Yes
Xu Lingzhi Supervisor Female 51 In office Yes
Chen Dewei Supervisor Male 54 In office Yes
Xie Juwen Supervisor Male 41 In office 39 No
Wan Huanhuan Supervisor Female 33 In office 36.72 No
Gong Xin
Director/Board
secretary
Female 39 In office 126 No
Feng Qiuju CFO Female 41 In office 72 No
Wang Jianqiang
Deputy General
Manager
Male 54 In office 99 No
Liu Wentai
Deputy General
Manager
Male 49 In office 84 No
Wang Junming
Deputy General
Manager
Male 54 In office 73.2 No
Li Zhaoting Board chairman Male 53 Dimission Yes
Wu Jiwei Board chairman Male 47 Dimission Yes
Huang Jinliang CFO Male 39 Dimission No
Wang Zhonghui
Deputy General
Manager
Male 40 Dimission 130 No
Total -- -- -- -- 817.48 --
Incentive equity to directors supervisors or/and senior executives in the reporting period
□ Applicable √ Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
V. Particulars about employees.
（1）Particulars about employees.
Number of in-service staff of the parent company(person) 141
Number of in-service staff of the main subsidiaries(person) 8465
The total number of the in-service staff(person) 8606
The total number of staff receiving remuneration in the current
period(person)
8606
Retired staff with charges paid by the parent company and main
subsidiaries (person)
0
Professional
Category Number of persons（person）
Production
2689
Sales
934
Tech
3563
Finance
259
Administration
1161
Total 8606
Education
Category Number of persons（person）
Doctor 8
Master 264
Bachelor degree 2891
Below college diploma 5443
Total 8606
2. Remuneration policies
To keep fair to all employees and competitive in business circles and more importantly to inspire employees
we stick to a principle "payment closely matches value of job position employee’s performance and operation
development and change of performance of the company itself" and stick to another principle "High responsibility
high requirement high payment" based on the company’s fact. In addition payment inclines to core job positions
and core talents. Make short-term medium-term and long-term incentive plans. Short-term incentives mainly
include payment (annual pay) and profit sharing. Medium-term incentives include equity subscription and option
subscription. Long-term incentives include employee stock ownership plan and partnership.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
3.Training plan
1. Employment training for recruiters: one training is taken per month. Professional learning of recruiters
shall be not less than 2h.
2. Management cadre team (leadership) training: Based on different levels of leadership and expected goals
provide training for senior management personnel and middle management personnel enhance the operating
philosophy of senior management personnel and improve the overall quality of middle management personnel.
3. (Professional) training for ready-to-be professionals: provide professional training for ready-to-be
professionals. Professional learning shall be not less than 2h. Build "Tunghsu School" and "Tunghsu Posthouse".
4. (Profession Enhancement) training of performance improvement: based on management and profession
channels provide sub-channel and systematic training separately. Train and reserve administrative personnel to
make performance of company achievable and push the implementation of strategy.
4.Outsourcing situation
□ Applicable √ No Applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
IX. Administrative structure
I. General situation
The company adheres to honest operation standard operation and performs obligation of information
disclose required in Company Law Securities Law Rule of Stock Exchange Listing in Shenzhen Stock Exchange
and Guideline on Standard Operation of Listing Companies on Main Board in Shenzhen Stock Exchange and
other laws and regulations as well as related standard files in order to ensure fairness timeliness and accuracy of
information disclosure.
Based on standard files on listing companies issued by China Securities Regulatory Commission the
company constantly adjusts and improves its organizations to ensure completeness independence and
standardization of organizations. Core management organization is composed of general meeting of shareholders
Board of Directors Board of Supervisors and administrative personnel. A good mechanism shall be created
among authorities decision-making body supervising body and administrative personnel namely clearly defied
powers and responsibilities standard operation mutual coordination and balance of mutual distraction. Separation
of positions clearly defined powers and responsibilities and balance of mutual distraction among different
organizations and departments shall be maintained in order to effectively ensure the "Profession"
"Standardization" and "Transparency" of company’s management and even to guarantee all shareholders’ benefits
especially minority shareholders.General meeting of shareholders is an authority of the company. In 2018，10 meetings was held totally
among which 1 meeting was annual general meeting of shareholders 9 were temporary. Board of Directors serves
general meeting of shareholders. During reporting period 21 meetings were held in Board of Director and 121
bills were approved. Special committee is set under Board of Director and 8 meetings were held in 2018. Board of
Supervisors serves all shareholders and 13 meeting were held in reporting period. Above meetings were held in
conformity with related regulations of Articles of Association Rule of Procedure of General Meeting of
Shareholders Rule of Procedure of Board of Director Rule of Procedure of Board of Supervisor. Above meetings
were convened held and voted reasonably and legally while resolutions were all legal and valid so the meetings
play an important role in rapid development of the company.
Does there exist any difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC
□ Yes √No
There exist no difference in compliance with the corporate governance the PRC Company Law and the relevant
provisions of CSRC.II. Independence and Completeness in business personnel assets organization and finance
The controlling shareholder of the company has the standard behavior and hasn‘t directly or indirectly interfered
the decision-making and operations of the company beyond the shareholders‘ meeting. “Five Separations”
achieved on the fields of human resource finance assets organization and business by the company and holding
shareholders.
1. Human resource: Management on labor personnel and wages by the company is independent from holding
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
shareholders. Senior managers all receive payments in the company; none of them receive payment from or serve
in controlling shareholder's entities.
2. Finance: An independent financial management department and accounting system have been established. A
formal financial management system has been set up for independent financial decisions. An independent bank
account has been opened for independent tax payment in accordance with the law. No accountant work
simultaneously in controlling shareholder's entities.
3. Assets: The property rights of company's assets are clear and complete. Production system and supporting
facilities independent from holding shareholders have been built up and free use and embezzlement of corporate
assets by holding shareholders or other related parties will not happen.
4. Organization: A sound organization system has been constructed in the company with which Board of
Directors Board of Supervisors and internal organizations operate independently and no affiliation exists between
holding shareholders and functional departments. All the holding shareholders participate in corporate decisions in
accordance with legal procedures and have caused no influence on the independence of the corporate operation
and management.
5. Business: The company operates independently with complete business structure as well as independent
production sale and financial systems. The company operates and manages independently in accordance with the
statutory scope of business and no shareholders will directly or indirectly control and intervene in the supply and
sale. Complete and independent business has been maintained with major shareholders.III. Competition situations of the industry
□Applicable e √Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Sessions Type
Investor
participation
ratio
Meeting Date
Disclosure
date
Disclosure index
The First provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.88% January 262018 January 272018
Announcement No.2018—011China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Second
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.95% March 262018 March 272018
Announcement No.2018—028China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Third
provisional
shareholders’
Provisional
shareholders’
General
21.96% April 252018 April 262018年
Announcement No.2017—052China
Securities Daily Securities Time
Shanghai Securities News Securities
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
General meeting in
2018
meeting daily Hongkong Commercial Daily and
www.cninfo.com.cn
2017 Shareholders’
general meeting
Annual
Shareholders’
General
Meeting
22.66% May 102018 May 112018
Announcement No.2018—059China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Fourth
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
22.73% June 282018 June 292018
Announcement No.2017—087China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Fifth provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.99% July 302018 July 312018
Announcement No.2018—100China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Sixth
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
27.68% August 202018 August 212018
Announcement No.2018—117China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Seventh
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.87%
November
152018
November
162018
Announcement No.2018—133China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Eighth
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.92%
December
102018
December
112018
Announcement No.2018—147China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
The Ninth
provisional
shareholders’
General meeting in
2018
Provisional
shareholders’
General
meeting
21.93%
December
252018
December
262019
Announcement No.2018—155China
Securities Daily Securities Time
Shanghai Securities News Securities
daily Hongkong Commercial Daily and
www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
V. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
Independent Directors’ Attendance at Board Meetings
Independent
Directors
Number of
Board
meetings
necessary to be
attended in the
reporting
period
Number of
spot
attendances
Number of
meetings
attended by
Communicatio
n
Number of
attendances by
representative
Number of
absence
Failure to
personally
attend board
meetings
successively
twice (Yes/No)
Number of
attendance at
general
meetings of
shareholders
Zhang Shuangcai 27 27 0 0 0 No 10
Lu Guihua 27 27 0 0 0 No 10
Han Zhiguo 27 27 0 0 0 No 10
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
During the report period the independent directors of the company has strictly followed the relevant laws and
regulations of “Governance Rules of Listed Companies” “Stock Listed Rules in Shenzhen Stock Exchange” and
“Guidance Suggestion on the Establishment of Independent Directors System by the Listed Company” and the
provisions of “Articles of Association” to attend the Board of Directors and Shareholders of the company
conscientiously perform their duties express the constructive comments or suggestions for the development
decisions of the company Is the company's annual profit distribution plan annual internal control self assessment
annual related party guaranty fund occupancy year renewed annual financial and internal audit institutions raise
money deposit associated with use finance companies supplement directors accounting policy changes related
party transactions to increase commitment subject changes raise funds use and replacement raise funds investment
project change company executives change company public offering of A shares convertible corporate bonds and
audit opinions issued by the independent directors which has effectively ensured the impartiality and objectivity of
decision-making of the Board of Directors maintained the whole interests of the company and the legitimate rights
of miedium and small shareholders and played a positive role in the company‘s standard operation and healthy
development.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2018 The Nomination Committee of the Board of Directors earnestly performs their duties and reviews and
make recommendations on the company’s Candidate for additional director and new CFO candidates as per the
provisions of “Implementation Rules of Nomination Committee of the Board of Directors”.
2.Performance of Remuneration and Appraisal Committee
In 2018 Remuneration and Appraisal Committee under the Board of Directors have conscientiously performed
their duties and conducted the review and provide the suggestions on the subsidy of the independent directors ofthe company according to the provisions of “Detailed Rules for Implementation of Remuneration and Appraisal
Committee under the Board of Directors”.
3. Performance of Audit Committee
In 2018 Audit Committee under the Board of Directors has conscientiously performed the duties conducted theduty of care actively performs all kinds of works according to the relevant provisions of “Detailed Rules forImplementation of Audit Committee under the Board of Directors” and “Articles of Association” and mainlymade communication control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans business
engagement letters risks and control matters. The Audit Committee has reviewed the audit opinions and the
financial accounting statements issued by the certified accountants and supervised the certified accountants to
submit the audit report within the appointment time. At the same time the Audit Committee believes that the
certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform
the audit work the audit time is enough the audit personnel is allocated reasonably the certificated competence is
qualified and the financial accounting statements audited by the certified accountants shall reflect the true
accurate and complete financial condition.
4. Performance of Strategy Committee
In accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of the
Board and Articles of Incorporation Strategy Committee of the company is diligent and dutiful in fulfilling its
duties and carrying out its work in 2018. It mainly focuses on the discussion and revision of strategic development
planning of the company.VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company puts store by performance evaluation of administrative personnel so the company gradually
improves evaluation and inspiration mechanism of administrative personnel and builds improved payment
management system and performance management system and finally found payment and evaluation committee
under Board of Director which is in charge of evaluating administrative personnel. Performance evaluation has a
close influence on payment of administrative personnel. The company makes a scientific and effective inspiration
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
mechanism.IX. Internal control situations
1. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2.Self-evaluation report on internal control
Disclosure date of appraisal report on
internal control
April 29 2019
Disclosure index of appraisal report on
internal control
http://www.cninfo.com.cn
Proportion of total unit assets covered by
appraisal in the total assets of the
consolidated financial statements of the
company
90.00%
Proportion of total unit incomes covered
by appraisal in the total business incomes
of the consolidated financial statements of
the company
90.00%
Standards of Defects Evaluation
Type Financial Report Non-financial Report
Standard
Evaluation standards of internal control
defects in financial reports are based on the
degree of importance of the misstatement
due to the internal control defects. The
degree of importance mainly relies on
following factors: (1) the possibility of loss
or fraud of related assets or debts; the
severity degree of defect control relies on the
possibility of prevention discovery or
correction of misstatement concerning to
account or presentation; (2) involved
account presentation and related recognized
property: whether there is a recognized
direct relationship with one or more financial
statements; (3) whether the control for
evaluation and compensation can offset the
control defects whether the control for
evaluation and compensation is precise
enough to prevent discover or correct
possible majors misstatements; (4) whether it
can arouse attention of personnel in charge
Criteria of quality refers to the severity
of involved business nature which can
be determined by the nature range of
influence and other factors of direct or
potential negative effects. The following
signs indicate possible major defects in
internal control of non-financial reports:
(1) invalid supervision on internal
control by Audit Committee and the
internal audit authority; (2) lack of
democratic decision-making process
such as the decision-making process of“major policies appointment ordismissal of cadres in important
positions arrangement of major projectsand utilization of sizable funds”; (3)
violation of state laws and regulations
for example environment pollution; (4)
the outflow of managers and technicians;
(5) lack of system control or systemic
failure in major business; (6) no
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
of supervising enterprise financial reports: a.control defects have been existed since
previous year and recognized as major ones;
b. control defects exist in the rising business
or high-risk business of the company; c.control defects exist in fields highly focused
by Board of Directors or Audit Committee
such as special part or sensitive business; (5)
the interaction among control defects:
whether control defects which influence the
same important account presentation and
related recognized or internal control factors
form major defects; (6) the possible
influences caused by control defects in
future. When a cautious manager considers a
control defect or the combination of control
defects are obstacles in formulating basic
recording transactions with applicable
financial reports in a reasonable way then
the control defect or the combination of
control defects should be considered as the
indication of major defects. The following
signs indicate major defects in internal
control of financial reports: (1) any degree of
fraud carried out by board members
supervisors and senior managers; (2)
financial statements re-published by the
company to correct major misstatements due
to fraud or mistakes; (3) major
misstatements existed in the current financial
statements of the company which have not
been discovered during the operation of
internal control; (4) invalid supervision on
internal control carried out by Audit
Committee and internal audit authority; (5)
invalid internal control environment in the
company; (6) major deviation on budgets;
(7) negative effects due to the punishments
by regulators; (8) huge losses of the
company; (9) total amount of associated
business surpasses the upper limit of
associated business amount approved by
general meeting of shareholders; (10) defects
influencing the revenue trend such as profit
rectification of major or important
defects concerning to the results of
internal control appraisal.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
and loss results; (11) other defects
influencing the sound judgment by statement
users.Standards of Quantitation
（1）In Case of profit① Single defect: a.
when the influence level reaches or
surpasses 5% of the profits before tax when
appraising the annual consolidated
statements of Tunghsu Photo-electricity it
will be considered as major defect; b. when
the influence level is lower than 5% but
reaches or surpasses 0.5% of the profits
before tax when appraising the annual
consolidated statements of Tunghsu
Photo-electricity it will be considered as
major defect; c. when it is not belonged to
major or important defects then it will be
considered as normal defect. ② The
collection of defects influencing the same
important account title or disclosure: a. when
the influence level after collection reaches or
surpasses 5% of the profits before tax when
appraising the annual consolidated
statements of Tunghsu Photo-electricity it
will be considered as major defect; b. when
the influence level after collection is lower
than 5% but reaches or surpasses 0.5% of the
profits before tax when appraising the annual
consolidated statements of Tunghsu
Photo-electricity it will be considered as
major defect; c. when it is not belonged to
major or important defects then it will be
considered as normal defect.
(1) Defects and problems concerning to
the internal control: Single defect: when
the influence level reaches or surpasses
0.5% of the sales revenue when
appraising the annual consolidated
statements of Tunghsu Photo-electricity
it will be considered as major defect; b.when the influence level is lower than
0.5% but reaches or surpasses 0.05% of
the sales revenue when appraising the
annual consolidated statements of
Tunghsu Photo-electricity it will be
considered as major defect; c. when it is
not belonged to major or important
defects then it will be considered as
normal defect. ② The collection of
defects influencing the same important
account title or disclosure: a. when the
influence level after collection reaches or
surpasses 0.5% of the sales revenue
when appraising the annual consolidated
statements of Tunghsu Photo-electricity
it will be considered as major defect; b.when the influence level after collection
is lower than 0.5% but reaches or
surpasses 0.05% of the sales revenue
when appraising the annual consolidated
statements of Tunghsu Photo-electricity
it will be considered as major defect; c.when it is not belonged to major or
important defects then it will be
considered as normal defect. (2) For
internal control defects and problems
including personal fraud please refer to
the integrity management related rules of
the company. Standards of internal
control defects and problems including
personal fraud: a. normal defects: less
than one million yuan or punishments by
the government departments following
the provincial level (including
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
provincial) without negative effects on
regular reports or disclosures published
by Tunghsu Photo-electricity; b. major
defects: one million yuan (including one
million) to ten million yuan or
punishments by the government
departments at the national level without
negative effects on regular reports or
disclosures published by Tunghsu
Photo-electricity; c. major defects: 10
million or more or defects which have
been officially announced and caused
negative effects on regular reports or
disclosures published by Tunghsu
Photo-electricity
Number of major defects in financial
reporting（a）
0
Number of major defects in non financial
reporting (a)
0
Number of important defects in financial
reporting（a）
0
Number of important defects in non
financial reporting（a）
0
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
ZXCGHSZZD(2019)No.:105014.
To All Shareholders of Tunghsu Optoelectronic Technology Co. Ltd：
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese
Certified Public Accountant we audited the effectiveness of the financial report’s internal control for Tunghsu Optoelectronic
Technology Co. Ltd . (the Company) dated 31December 2018.
I. As for responsibility of internal control
The Company established and improved and implemented internal control effectively based on Basic Norms of Enterprises Internal
Control Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control and
board of the director is responsible for evaluating its effectiveness.II. Auditor’s responsibilities
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit.
And disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control:
The internal control has an inherent limitation and exist mistakes that can not prevent and being discovered. Moreover the internal
control might be inappropriate due to the changes of conditions or fails to follow the controlling policies and procedures to
speculate future effectiveness of the internal control in line with the auditing result has a certain risks.IV. Auditing opinion: in our opinion the Company.In line with Basic Norms of Enterprises Internal Control and relevant regulations shows an effectiveness internal control of
financial report in all major aspects dated 31 December 2018.Hebei Guanghua Accounting Firms Co. Ltd.(LLP)
Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:
Beijing China April 29 2019
Disclosure of internal audit report Disclosure
Disclosure date of audit report
of internal control (full-text)
April 292019
Index of audit report of
internal control (full-text)
http://www.cninfo.com.cn
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the
existence of significant deficiencies
No
Has the CPAs issued a qualified auditor’s report of internal control .□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange which undue or without
payment in full at maturity on the approval date for annual report disclosed
Yes
I. Basic information of the corporate bonds
Bond Name
Abbreviated
Bond Name
Code Issue Date Date Due
Bond
Balance(RM
B10000)
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 95200 6.68%
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’s put table right
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
The Company will adjust the coupon rate of the follow-up period at the end of the 3rd year of the
current bond duration for the "15 Tunghsu Bonds". The coupon rate of the bonds is 6.00% for the
first 3 years of the duration. At the end of the 3rd year of the duration the Company chooses to
increase the coupon rate i.e. the coupon rate of 2 years after the duration of the bonds is increased
from 6.00% to 6.80% and remains unchanged within 2 years after the duration of the bonds (May
19 2018 to May 18 2020). During the Reporting Period there are 439573 declared put-back of
"15 Tunghsu Bonds" with the put-back amount of RMB 46594738.00 (including interest) and
the remaining 9560427 custodian bonds.II. Information about the bond trustee and credit rating agency
Bond trustee:
Name
Guangzhou
Securities Co.Ltd.
Business
Address
1920/F Main
Tower
Guangzhou
International
Finance Center
No.5 Zhujiang
West Road
Contacts
Shi Jianhua
Yan Xiangjun
Tel 020-88836999
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tianhe District
Guangzhou
City
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(RMB10000) 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 2016 Annual Report.
By tracking and rating the long-term credit status of the main body of the company and corporate bonds
publicly issued by the company the rating results is determined as the long-term credit rating AA+，and its outlookis "Steady".” (For details please refer to the "Tracking Rating Announcement" of the company disclosed on
www.cninfo.com on 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 2018 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
2017 Entrusted Management Report of 2015 Corporate Bonds of Tunghsu Optoelectronic and and the Interim
Report on the Entrusted Management of Major Events of 2015 Corporate Bond of Tunghsu Optoelectronic (on the
change of Directors and Chairman) were released on May 10 2018 and August 9 2018 respectively and the
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Company was visited on the spot in December 2018 to review the bank reconciliation of the special account for
raised funds and continuously supervise the use of the raised funds.VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting period
In RMB10000
Items 2018 2017
Rate of change in the same
period
Earnings before interest tax
depreciation and amortization
489789.49 444259.47 10.25%
Current ratio 167.08% 223.56% -56.48%
Debt ratio 53.95% 53.11% 0.84%
Quick ratio 131.58% 177.08% -45.50%
EBITDA/Total debts 12.51% 12.19% 0.32%
Interest coverage ratio 36.79 22.23 65.50%
Cash interest coverage ratio 1.61 2.26 -28.76%
EBITDA interest coverage ratio 3.73 3.43 8.75%
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
The current ratio decreases by 56.48% mainly due to the increase of RMB 2.6 billion in short-term borrowings at
the end of the current period compared with the end of the previous period.The significant increase in interest coverage is due to better performance for the current period.The sharp decline in the quick ratio is also due to a sharp increase in short-term borrowing of RMB 2.6 billion.The decrease in the multiple of cash interest protection is mainly attributable to the decrease in the ability to
recover from operating activities as compared to the same period in 2017.IX. 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
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 RMB 224280000.00 .
2. Unmatured bonds issuing interest payment and cashing in previous years
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 the first period bond interest 60000000.00 was paid in full
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
amount on schedule in 2016 and the first period bond interest 43957300.00 was paid in full amount on schedule in
2018.
X.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 RMB11102696251.33 increased
RMB605143618.36 compared 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.XI. 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 there is no use of corporate bonds to raise funds and the company has strictly
fulfilled its commitment that the bond raised funds will not be directly or indirectly invested in the real estate
development business and will not be used to increase the capital of subsidiaries engaged in the real estate
business or lend money to them.XII.Major events occurred during the reporting period
Nil
XIII. Whether the corporate bonds have a guarantor
□ Yes √No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
XI. Financial Report
I. Audit report
Type of auditing opinion Standard report without qualified opinion
Date for signing the auditor’s report April 292019
Name of audit firm Hebei Guanghua Accounting Firms Co. Ltd.(LLP)
The audit of the report ZXCGHSKZD(2019)No.:105028
Certified public accountant's name Qi Zhenghua Meng Xiaoguang
Auditors’ Report
ZXCGHSKZD(2019)No.:105028
To all shareholders of Shareholders of Tunghsu Optoelectronic Technology Co. Ltd.:
I. Opinion
We have audited the financial statements of Tunghsu Optoelectronic Technology Co. Ltd.(hereinafter referred to as "the Company") which comprise the balance sheet as at December 31 2018 the
Company’s and consolidated income statements the Company’s and consolidated cash flow statements the
Company’s and consolidated statements of changes in shareholders’ equity for the year then ended as well as the
notes to the financial statements.In our opinion the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair view of the
consolidated and parent financial position of the Company as at 31 December 2018 and the consolidated and
parent business performance and cash flow of the Company for 2018
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants
in China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. According to the Code of Ethics for Chinese CPA we are
independent of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate
opinion on these matters.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
We confirm that the following matters are the key audit matters that need to be communicated in the
audit report:
(1) Recognition of operating income
1. Description of the matter
For details of relevant information disclosure please refer to "Note V 28 and Note VII 52" of the
financial statements.Tunghsu Optoelectronic recognized operating income of 28211.7 million yuan in 2018 up 63.29%
over 2017. The operating income is divided into construction contract income and product sales income:
As for construction contract income Tunghsu Optoelectronic Company will determine the
completion progress according to the proportion of the accumulated actual cost to the estimated total cost under
the condition that relevant projects can be reliably estimated. The estimated total cost of the budget contract
involves significant accounting estimation and judgment. The estimation and judgment are influenced by existing
experience and judgment on the future market. The rationality of the management's estimation and judgment on
the estimated total cost will have a significant impact on the recognition of the income of relevant projects of
Tunghsu Optoelectronic; Meanwhile the sales revenue of products accounts for a large proportion of the
operating revenue of Tunghsu Optoelectronic;
Therefore we will recognize the estimated cost of the construction contract and the recognition of
product sales income as key audit matters.
2. Audit response
(1) For the recognition of product sales income the main auditing procedures we implement are as
follows:
Understand and evaluate the rationality and effectiveness of management's design of key internal
controls related to revenue recognition; (Check whether the accounting policies for income recognition conform to
the provisions of the accounting standards for enterprises and whether they are consistently implemented;
Take sampling method to check the major sales contracts sales invoices transportation documents
customer acceptance documents export declaration forms and other documents related to product sales income of
Tunghsu Optoelectronic and conduct confirmation and visits to important customers to confirm the occurrence of
product sales income;
For the product sales revenue recognized before and after the balance sheet of Tunghsu
Optoelectronic check the documents such as transportation documents and customer acceptance documents to
evaluate whether the income is recorded in the appropriate accounting period.
(2) As for the estimated cost of the construction contract the main auditing procedures we have
implemented are as follows:
Understand and evaluate the rationality and operational effectiveness of the management's key
internal control design related to project contract budgeting and revenue recognition;
Using sampling method compare and analyze the actual total cost of completed projects with the
estimated total cost of the contract made by the management on whether there are abnormal differences so as to
judge whether the management effectively manages the contract budget dynamically;
Compare and analyze the estimated total cost of unfinished projects with the historical actual cost of
similar completed projects and evaluate the management's experience and ability in making such accounting
estimate;
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
By sampling method check the compilation basis of the estimated total cost of Tunghsu
Optoelectronic and evaluate the rationality of the estimated total cost;
Obtain company income calculation details and execute recalculation procedures to determine the
accuracy of income recognition.(II) Goodwill impairment
1. Description of the matter
Please refer to "Note V 22 Note VII 22" to the financial statement for details of the relevant
information disclosure.
As of December 31 2018 the book value of goodwill in the consolidated financial statements of
Tunghsu Optoelectronic was RMB 2835.6726 million and the provision for goodwill impairment that had been
made was RMB 10.1634 million. Management performs an impairment test on goodwill at the end of each year
and adjusts the book value of goodwill based on the results of the impairment test. The results of the goodwill
impairment test depend to a large extent on the estimates made and assumptions adopted by management (e.g.estimates of the expected future cash flow and discount rate of the asset group). These estimates are influenced by
management's judgments on the future market and the economic environment. The use of different estimates and
assumptions will have a significant impact on estimating the recoverable value of goodwill. Because the goodwill
arising from the acquisition of 100% equity interest in Shanghai Sunlong Bus Co. Ltd. amounted to RMB
2443.6274 million Net carrying amount accounting for 86.17% of the goodwill in the consolidated statement
because of its huge amount. Therefore we took the impairment measurement of the goodwill arising from the
acquisition of equity interest in Shanghai Sunlong Bus Co. Ltd. as a key audit matter.
2. Audit response
In response to the above key audit matter we have implemented the following main audit procedures:
(1) Understand and test the internal control of Tunghsu Optoelectronic on goodwill impairment
assessment;
(2) Review the recognition of asset group by management and the allocation method of goodwill;
understand the historical performance and development planning of the asset group as well as the development
trend of the macro-economy and the industry; evaluate the assumptions and methods used by management in
estimating the recoverable value of assets; evaluate and test the assumptions and valuation methods made by
Tunghsu Optoelectronic in assessing whether goodwill is impaired as of December 31 2018 determination of
asset groups related to goodwill cash flow forecasts and other data and parameters used and evaluate other
important parameters including sales growth rate output production costs operating expenses and discount rate;
(3) Evaluate the professional competence independence and objectivity of the asset appraiser
consult the appraisal technical description of the appraisal report analyze whether the appraisal value and
calculation formula are reasonable and review and calculate the appraisal data. At the same time interview the
appraiser including the purpose and scope of the appraisal report issued its independence the selection of
appraisal process the selection of the main parameters and the rationality of the appraisal results；
(4) It is appropriate to review the goodwill presentation of Tunghsu Optoelectronic Technology Co.
Ltd.IV. Other information
The management of the Company is responsible for the other information. The other information
comprises information of the Company's annual report in 2018 but excludes the financial statements and our
auditor's report.Our opinion on the financial statements does not cover the other information and we do not and will
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information identified above and in doing so consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed on the other information that we obtained prior to the date
of this auditor's report we conclude that there is a material misstatement of this other information we are required
to report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with
the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for
designing implementing and maintaining internal control that is necessary to ensure that the financial statements
are free from material misstatements whether due to frauds or errors.In preparing the financial statements management of the Company is responsible for assessing the
Company's ability to continue as a going concern disclosing matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations or
has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting
process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of
the Company and conclude based on the audit evidence obtained whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements and bear all liability for
the opinion.We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit matters including any significant deficiencies in internal
control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine those matters
that were of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Hebei Guanghua Accounting Firms Co. Ltd.(Special General Partnership)
Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:
Beijing China April 29 2019
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.
December 312018
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 19807094397.16 27456759768.86
Settlement provisions
Outgoing call loan
Financial assets measured at fair value
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
with variations accounted into current
income account
Derivative financial assets
Notes receivable & Account receivable 14852563398.56 8411548269.26
Including：Notes receivable 499781503.17 538128584.84
Account receivable 14352781895.39 7873419684.42
Prepayments 5215414219.51 2021119950.95
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 1125991020.55 1094347121.61
Including：Interest receivable 56811961.67 49456785.29
Dividend receivable
Repurchasing of financial assets
Inventories 3510786666.85 4909570356.36
Assets held for sales 119355435.58 213034435.58
Non-current asset due within 1 year
Other current asset 809360778.49 2559947333.75
Total of current assets 45440565916.70 46666327236.37
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 344430815.68 143988866.91
Long term share equity investment 2174347969.22 2130640158.90
Property investment 686993881.02 58229439.86
Fixed assets 9634463323.77 11379727456.13
Construction in progress 5013941980.61 3667972406.42
Productive biological assets
Gas & petrol
Gas & petrol 1146949745.14 1001796110.02
Intangible assets 37122235.94 15397704.97
Development expenses 2835672586.90 2587678140.99
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Long-germ expenses to be amortized 21884204.82 26538304.02
Deferred income tax asset 533094627.68 526633526.09
Other non-current asset 4463496966.82 306402939.48
Total of non-current assets 27135556942.90 21945005109.79
Total of assets 72576122859.60 68611332346.16
Current liabilities
Short-term loans 8361106651.33 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 & account payable 10276094132.88 5700886719.54
Advance payment 1402283662.37 1655137563.63
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 238146977.17 207697362.25
Tax payable 817173127.12 294979419.96
Other account payable 2089603676.60 2029716039.08
Including：Interest payable 117554951.58 107195147.20
Dividend payable 35000000.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due within 1 year 3697392864.91 5045608756.45
Other current liability 315193128.73 227155178.97
Total of current liability 27196994221.11 20874007422.08
Non-current liabilities：
Long-term loan 2741589600.00 5209726250.77
Bond payable 5630818825.32 5665126090.52
Including：preferred stock
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Sustainable debt
Long-term payable 2644309592.95 3276308254.44
Long-term payable Employees'
remuneration
Expected liabilities 99765750.04 156421713.31
Deferred income 676146399.31 592290617.42
Deferred income tax liability 55192983.97 60149328.74
Other non-current liabilities 108000000.00 608000000.00
Total non-current liabilities 11955823151.59 15568022255.20
Total of liability 39152817372.70 36442029677.28
Owners’ equity
Share capital 5730250118.00 5730250118.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 21786233393.78 21979242606.60
Less：Shares in stock 4422320.00 4422320.00
Other comprehensive income -29175.80 -4518.45
Special reserves 12614331.35 1983921.21
Surplus reserves 245507019.95 224133824.86
Common risk provision
Retained profit 4750977557.86 3009860755.82
Total of owner’s equity belong to the
parent company
32521130925.14 30941044388.04
Minority shareholders’ equity 902174561.76 1228258280.84
Total of owners’ equity 33423305486.90 32169302668.88
Total of liabilities and owners’ equity 72576122859.60 68611332346.16
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Current asset：
Cash and bank balances 9732302654.23 11224359236.39
Financial assets measured at fair value with
variations accounted into current income
account
Derivative financial assets
Notes receivable & account receivable 176613926.23 24037262.59
Including：Notes receivable 50000.00 200000.00
Account receivable 176563926.23 23837262.59
Prepayments 2008364.11 16902375.19
Other account receivable 6281675319.27 5497581593.85
Including：Interest receivable 7521489.86 41868921.15
Dividend receivable 500000000.00 665000000.00
Inventories 269759580.95 509283364.38
Assets held for sales
Non-current asset due within 1 year
Other current asset 148973.38 1220148973.38
Total of current assets 16462508818.17 18492312805.78
Non-current assets：
Available for sale of financial assets 129500056.00 100000056.00
Expired investment in possess
Long-term receivable
Long term share equity investment 26504735200.89 23020364897.17
Property investment
Fixed assets 160867244.63 44669881.93
Construction in progress
Production physical assets
Oil & gas assets
Intangible assets 9339387.26 9687094.58
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 119964967.85 58105970.47
Other non-current asset 1381400.00
Total of non-current assets 26924406856.63 23234209300.15
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total of assets 43386915674.80 41726522105.93
Current liabilities
Short-term loans 4278000000.00 2760000000.00
Financial liabilities measured at fair value
with variations accounted into current
income account
Derivative financial liabilities
Notes payable& account payable 11500796.58 15219920.86
Advance payment 1991498.78 421587.90
Employees’ wage payable 4484401.86 4061413.48
Tax payable 17959833.09 28150779.48
Advance payment 3656725253.66 503617925.37
Employees’ wage payable 97197464.99 79827566.10
Tax payable
Liabilities held for sales
Non-current liability due within 1 year 1533383333.28 2769233333.30
Other current liability
Total of current liability 9504045117.25 6080704960.39
Non-current liabilities：
Long-term loan 1512500000.00
Bond payable 5630818825.32 5665126090.52
Including：preferred stock
Sustainable debt
Long-term payable
Long-term Employees’ wage payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 5630818825.32 7177626090.52
Total of liability 15134863942.57 13258331050.91
Owners’ equity
Share capital 5730250118.00 5730250118.00
Other equity instruments
Including：preferred stock
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Sustainable debt
Capital reserves 21832453907.50 21861207672.90
Less：Shares in stock 4422320.00 4422320.00
Other comprehensive income
Special reserve
Surplus reserves 226517795.62 205144600.53
Retained profit 467252231.11 676010983.59
Total of owners’ equity 28252051732.23 28468191055.02
Total of liabilities and owners’ equity 43386915674.80 41726522105.93
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 28211700021.12 17276969039.03
Incl：Business income 28211700021.12 17276969039.03
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 25817783711.68 15436795701.80
Incl：Business cost 23204078792.38 13674487646.24
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 237483799.16 94070286.07
Sales expenses 334476301.51 209160183.73
Administrative expenses 653479277.58 393125009.94
R & D expenses 572089634.30 256991555.91
Financial expenses 722695173.66 753977500.45
Including：Interest expenses 1204287050.60 1142316421.06
Interest income 506083846.24 442489241.64
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Asset impairment loss 93480733.09 54983519.46
Add：Other income 251303953.08 352095131.45
Investment gain（“-”for loss） 80925191.79 63704853.98
Incl: investment gains from affiliates 64366051.65 4663254.00Gains from change of fir value （“-”forloss）
Gains from currency exchange（“-”for loss）
Assets disposal income 1515607.51
III. Operational profit（“-”for loss） 2727661061.82 2255973322.66
Add ：Non-operational income 19063270.76 3569062.38
Less：Non business expenses 8892705.00 2408772.80
IV.Total profit(“-”for loss) 2737831627.58 2257133612.24
Less：Income tax expenses 469003541.40 336234590.36
V. Net profit 2268828086.18 1920899021.88
1.Net continuing operating profit 2268828086.18 1920899021.88
2.Termination of operating net profit
Net profit attributable to the owners of
parent company
2163607505.39 1730174564.57
Minority shareholders’ equity 105220580.79 190724457.31
VI. Net after-tax of other
comprehensive income
-42240.07 -8409.93
Net of profit of other comprehensive inc
ome attributable to owners of the parent
company.
-24657.35 -4518.45
（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.
-24657.35 -4518.45
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
-24657.35 -4518.45
6.Other
Net of profit of other comprehensive inc
ome attributable to Minority
shareholders’ equity
-17582.72 -3891.48
VII. Total comprehensive income 2268785846.11 1920890611.95
Total comprehensive income
attributable to the owner of the parent
company
2163582848.04 1730170046.12
Total comprehensive income
attributable minority shareholders
105202998.07 190720565.83
VIII. Earnings per share
（I）Basic earnings per share 0.38 0.32
(II)Diluted earnings per share 0.38 0.32
The current business combination under common control the net profits of the combined party before achieved ne
t profit of RMB -11435425.33 last period the combined party realized RMB-13043965.22.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 192196941.80 224036245.36
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Incl：Business cost 152993440.70 157850832.08
Business tax and surcharge 6644502.15 5861889.82
Sales expenses
Administrative expenses 39463721.23 36146618.59
R & D expenses 8322311.54 4750475.24
Financial expenses 379774437.36 440687806.43
Including：Interest expenses 645866773.53 715302441.40
Interest income 275451910.63 277294157.23
Asset impairment loss 10403118.18 953612.93
Add：Other income 5000.00
Investment gain（“-”for loss） 556448607.09 728710908.36
Including: Investment gains from
affiliates
64362875.25 4680716.60
Gains from change of fir value
Assets disposal income -83936.54
II. Operational profit（“-”for loss） 150960081.19 306500918.63
Add ：Non-operational income 1125858.13 3258.50
Less：Non business expenses 212985.83
III.Total profit(“-”for loss) 151872953.49 306504177.13
Less：Income tax expenses -61858997.38 -54393366.62
IV. Net profit（“-”for net loss） 213731950.87 360897543.75
1.Net continuing operating profit 213731950.87 360897543.75
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 213731950.87 360897543.75
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
24460106952.41 16319362118.18
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 342117355.30 368068395.17
Other cash received from business
operation
1112750115.02 1393784267.32
Sub-total of cash inflow 25914974422.73 18081214780.67
Cash paid for purchasing of
merchandise and services
22506440909.95 13863864085.75
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 1148904118.69 675531188.29
Taxes paid 874045127.91 851129505.84
Other cash paid for business activities 997332261.66 1437511489.48
Sub-total of cash outflow from business
activities
25526722418.21 16828036269.36
Net Cash flow generated by business
operation
388252004.52 1253178511.31
II.Cash flow generated by investing
Cash received from investment
retrieving
2287107423.40 10720000000.00
Cash received as investment gains 14623990.55 61158304.69
Net cash retrieved from disposal of 1342541.78 4233.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
fixed assets intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
392179613.50
Other investment-related cash received 2065561030.00 110685142.80
Sub-total of cash inflow due to
investment activities
4760814599.23 10891847680.49
Cash paid for construction of
fixed assets intangible assets
and other long-term assets
5397726636.77 2120419910.48
Cash paid as investment 1100017546.00 2743196945.39
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
392683239.84 409333786.20
Other cash paid for investment
activities
4514811164.19 11372003800.00
Sub-total of cash outflow due to
investment activities
1140523858680 16644954442.07
Net cash flow generated by investment -6664423987.57 -5753106761.58
III.Cash flow generated by financing
Cash received as investment 29782250.00 4089127645.26
Incl: Cash received as investment from
minor shareholders
29000000.00 381127660.00
Cash received as loans 9271938586.70 6415966666.66
Cash received from bond placing
Other financing –related ash received 1625337955.88 6079515983.16
Sub-total of cash inflow from financing
activities
10927058792.58 16584610295.08
Cash to repay debts 10790796153.46 7676192931.29
Cash paid as dividend profit or
interests
1634663688.12 1506017279.72
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
35000000.00 30000000.00
Other cash paid for financing activities 2448920714.02 3305362985.49
Sub-total of cash outflow due to
financing activities
14874380555.60 12487573196.50
Net cash flow generated by financing -3947321763.02 4097037098.58
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
IV. Influence of exchange rate
alternation on cash and cash equivalents
5470280.86 -20700620.86
V.Net increase of cash and cash
equivalents
-1019802346521 -423591772.55
Add: balance of cash and cash
equivalents at the beginning of term
25114660756.25 25538252528.80
VI ..Balance of cash and cash
equivalents at the end of term
14916637291.04 25114660756.25
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
72531777.31 257729472.43
Tax returned
Other cash received from business
operation
727597222.22
Sub-total of cash inflow 72531777.31 985326694.65
Cash paid for purchasing of
merchandise and services
39022885.88 499508106.89
Cash paid to staffs or paid for staffs 23420776.83 12003112.70
Taxes paid 17690820.97 13008194.55
Other cash paid for business activities 12832370.74 704986879.59
Sub-total of cash outflow from business
activities
92966854.42 1229506293.73
Net Cash flow generated by business
operation
-20435077.11 -244179599.08
II.Cash flow generated by investing
Cash received from investment
retrieving
2788307423.40 10720000000.00
Cash received as investment gains 678923452.07 631146896.47
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Other investment-related cash received 18756644994.40 4090240995.50
Sub-total of cash inflow due to
investment activities
22223875869.87 15441387891.97
Cash paid for construction of
fixed assets intangible assets
and other long-term assets
56199.61 108600.00
Cash paid as investment 4234000000.00 8020648977.50
Net cash received from subsidiaries and
other operational units
817834645.97
Other cash paid for investment
activities
20503969862.86 16271549676.04
Sub-total of cash outflow due to
investment activities
25555860708.44 24292307253.54
Net cash flow generated by investment -3331984838.57 -8850919361.57
III.Cash flow generated by financing
Cash received as investment 3707999985.26
Cash received as loans 4858000000.00 4241666666.66
Cash received from bond placing
Other financing –related ash received 10928715830.12 241954213.63
Sub-total of cash inflow from
financing activities
15786715830.12 8191620865.55
Cash to repay debts 6132307300.02 3730033333.36
Cash paid as dividend profit or
interests
1020777853.83 1044754330.46
Other cash paid for financing activities 6773267342.75 49565032.84
Sub-total of cash outflow due to
financing activities
13926352496.60 4824352696.66
Net cash flow generated by financing 1860363333.52 3367268168.89
IV. Influence of exchange rate
alternation on cash and cash equivalents
433490.39
V.Net increase of cash and cash
equivalents
-1492056582.16 -5727397301.37
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
9732302654.23 11224359236.39
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 profit
prefer
red
stock
Sustai
nable
debt
Other
I.Balance at the
end of last year
5730
25011
8.00
21979
242606
.60
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30098
60755.
82
12282
58280.
84
32169
302668
.88
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
21979
242606
.60
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30098
60755.
82
12282
58280.
84
32169
302668
.88
III.Changed in the
current year
-19300
9212.8
2
-24657.
35
10630
410.14
21373
195.09
17411
16802.
04
-32608
3719.0
8
12540
02818.
02
（1）Total
comprehensive
income
-24657.
35
21636
07505.
39
105202
998.07
22687
85846 .
11（II）Investment
or decreasing of
capital by owners
25162
87.18
38810
610.28
41326
897.46
1．Ordinary Share
s invested by Shar
39734
500.00
39734
500.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
eholders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
25162
87.18
-92388
9.72
15923
97.46（III）Profit
allotment
21373
195.09
-42249
0703.3
5
-40111
7508.2
6
1.Providing of
surplus reserves
21373
195.09
-21373
195.09
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
-40111
7508.2
6
-40111
7508.2
6
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.Change amount
of defined benefit
plans that carry
forward
Retained earnings
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
5．Other
(V). Special
reserves
10630
410.14
71693
63.61
17799
773.75
1. Provided this
year
38527
044.56
73249
78.46
45852
023.02
2．Used this term
-27896
634.42
-15561
4.85
-28052
249.27（VI）Other
-19552
5500.0
0
-47726
6691.0
4
-67279
2191.0
4
IV. Balance at the
end of this term
5730
25011
8.00
21786
233393
.78
44223
20.00
-29175.
80
12614
331.35
245507
019.95
47509
77557.
86
902174
561.76
33423
305486
.90
Amount in last year
In RMB
Items
Amount in last year
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 profit
prefer
red
stock
Sustai
nable
debt
Other
I.Balance at the
end of last year
4939
92898
3.00
16338
960810
.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
194098
440.35
-15509
7190.9
2
91021
359.68
130022
609.11
Other
II.Balance at the
beginning of
current year
4939
92898
3.00
16533
059251
.24
44223
20.00
188044
070.48
16685
98087.
39
11840
83087.
99
24509
291160
.10
III.Changed in the 79032 54461 -4518.4 19839 36089 13412 44175 76600
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
current year 1135.
00
83355.
36
5 21.21 754.38 62668.
43
192.85 11508.
78
（1）Total
comprehensive
income
-4518.4
5
17301
74564.
57
190724
457.31
19208
94503.
43（II）Investment
or decreasing of
capital by owners
79032
1135.
00
66830
65275.
65
382886
041.50
78562
72452.
15
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．Amount of
shares paid and
accounted as
owners’ equity
4．Other
-45457
435.00
-45457
435.00（III）Profit
allotment
36089
754.38
-38891
1896.1
4
-35000
000.00
-38782
2141.7
6
1.Providing of
surplus reserves
36089
754.38
-36089
754.38
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
-35282
2141.7
6
-35000
000.00
-38782
2141.7
6
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．Other
(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
-49634
1426.3
4
-17332
23346.
63
IV. Balance at the
end of this term
5730
25011
8.00
21979
242606
.60
44223
20.00
-4518.4
5
19839
21.21
224133
824.86
30098
60755.
82
12282
58280.
84
32169
302668
.88
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
In RMB
Items
Amount in this period
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares in
stock
Other
Compreh
ensive
Income
Specialize
d reserve
Surplus
reserves
Retaine
d profit
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
-287537
65.40
2137319
5.09
-20875
8752.4
8
-216139
322.79
（I）Total
comprehensive
income
213731
950.87
2137319
50.87
(II) Investment or
decreasing of
capital by owners
-287537
65.40
-287537
65.40
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other -287537 -287537
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
65.40 65.40（III）Profit
allotment
2137319
5.09
-42249
0703.3
5
-401117
508.26
1.Providing of
surplus reserves
2137319
5.09
-21373
195.09
2．Allotment to the
owners (or
shareholders)
-40111
7508.2
6
-401117
508.26
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.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．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
2183245
3907.50
4422320
.00
2265177
95.62
467252
231.11
2825205
1732.23
Amount in last year
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Items
Amount in last year
Share
Capital
Other Equity instrument
Capital
reserves
Less:
Shares in
stock
Other
Compreh
ensive
Income
Specialize
d reserve
Surplus
reserves
Retaine
d profit
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 3608975
-38188
4783.1
-345795
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
allotment 4.38 9 028.81
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
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.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 61th meeting of the 8th Board of
Directors on April 29 2019.
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 22 subsidiaries and 93 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 33 and decreased by 2 companies year on year at this reporting period see details at Note
8“Change of consolidation scope.
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
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement on compliance with accounting standards for business Enterprises
The financial statements prepared are in line with the requirements in enterprise accounting standards in line with
of system and have truly and completely reflected of the financial status in December
31 2018 operational results cash flow and other relevant information of 2018.
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
5. 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 V 14
“Long-term Equity Investment” or Notes V 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 V 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 V 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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(%)
Within 1 year（Including 1 year） 5.00% 5.00%
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
Affiliated company exchanges 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
Reason for separate provision for bad debts The accounts receivable with single-item amount of less than
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 V 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 V 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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) Basis of asserting valuation and depreciation method for fixed assets under financing lease
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when
they meet one or more of the following criteria: ① Upon expiration of the lease term the ownership of the
leased assets shall be transferred to the Company. ② The Company has the option to purchase the asset at a price
that is expected to be sufficiently lower than the fair value at the date of the option becomes exercisable for it to
be reasonably certain at the inception of the lease that the option will be exercised. (3) the lease term accounts
for a substantial proportion of the useful life of the leased asset notwithstanding that the ownership will not be
transferred; ④ At the inception of lease the present value of minimum lease payments amount to substantially
all of the fair value of leased asset. ⑤ Leased assets are of a specialized nature that only the Company can use
them without major modifications. Forthe fixed assets that are under finance leases if the ownership of the
leasedassets can be reasonably determined at the end of the lease term thedepreciation shall be made within the
service life of such leased assets;otherwise the depreciation shall be made for a shorter period between the
leaseterm and the remaining service life of such leased assets. (4) Major repair expenses: The major repair
expenses incurred by the Company in carrying out regular inspections of fixed assets if there is conclusive
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
evidence showing that they meet the conditions for recognition of fixed assets are included in the cost of fixed
assets while those that do not meet the conditions for recognition of fixed assets are included in the profits and
losses of the current period. Fixed assets are under depreciation during regular overhaul intervals.17. Construction
in progress
17 Whether the Company needs to comply with the disclosure requirements for specific industries
No
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
22. 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
24 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
26 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
2. 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Contents and causes for changes of
accounting policy
Approval procedures Remarks
Implementation of the new accounting
standards for enterprises - "notice on the
revision and issuance of the 2018 annual
general financial statement format for
enterprises" (finance and accounting
[2018] no. 15) implementation of the new
accounting standards for enterprises
The company will hold the 49th meeting of
eighth board meeting on October 30
2018 to review and approve the Notices on
the change of accounting policy. Notice on
the revision and issuance of the format of
general corporate financial statements for
the year 2018 (finance and accounting
[2018] no. 15)
①Accounting policy changes arising from the implementation of the new accounting standards for business
enterprises
The Ministry of Finance issued the Notice on Amending the Format of Financial Statements of General Enterprises in 2018
(CK No. [2018] 15.
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：
No Name of affected item in the statements Affected amount of December 31 2017 / 2017
Increase + / decrease - -
1 Notes receivable -538128584.84
Account receivable -7873419684.42
Notes receivable & account receivable +8411548269.26
2 Interest receivable -49456785.29
Other account receivable +49456785.29
3 Notes payable -1063897679.89
Account payable -4636989039.65
Notes payable & Account payable +5700886719.54
4 Interest payable -107195147.20
Dividend payable -35000000.00
Other account payable +142195147.20
5 Administration expenses -256991555.91
R & D expenses +256991555.91
(2) Change of main accounting estimations
□Applicable√ Not applicable
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 28-Revenue Recognition Principle in Note V 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 3%、10%、11%、16%、17%
Urban construction tax Turnover tax to be paid allowances 5%、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 1%、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 11 2018The 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 2018.②On 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.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 November 29 2018Zhengzhou 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 2018.⑥On 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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 Sunlong Automobile Manufacturing 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%.
?According to the Notice of the Ministry of Finance the General Administration of Customs P.R. China and the
State Taxation Administration on Issues Concerning Tax Policies Related to the Further Implementation of the
Western Development Strategy (CS (2011) No. 58) Catalogue of Encouraged Industries in the Western Region
(Decree No. 15 of the State Development and Reform Commission of the People's Republic of China)
Announcement of the State Taxation Administration on Issues Concerning Enterprise Income Tax Related to the
Further Implementation of the Strategy for the Development of the Western Region (Announcement of the State
Administration No.12 2012) Announcement of the State Taxation Administration on Implementing the Issues
Concerning Enterprise Income Tax in the Catalogue of Encouraged Industries in the Western Region
(Announcement of the State Administration No.14 2015): From January 1 2011 to December 31 2020 the
enterprise income tax rate may be reduced and paid at 15% for those enterprises located in the western region
whose main business is the industrial projects specified in the Catalogue of Encouraged Industries in the Western
Region and whose main business income accounts for more than 70% of the total enterprise income in the current
year. In 2018 Tunghsu Construction Co. Ltd. shall enjoy this policy and pay enterprise income tax at the rate of
15%.
?On October 12 2018Tunghsu(Yingkou) Optoelectronic Display 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 2018.?On November 124 2018Chongqing Jinghuateng 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 2018.
?On November 30 2018Huzhou Mingshuo 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 2018.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
3.Other
VII. Notes of consolidated financial statement
1. Cash and Bank Balances
In RMB
Items Year-end balance Year-beginning balance
Cash 2593055.78 2461658.94
Bank deposit 19285678472.37 26666668936.88
Other monetary assets 518822869.01 787629173.04
Total 19807094397.16 27456759768.86
Including：Total amount deposited
abroad
2307958.14 15577823.27
Other note
Note 1: The decrease of monetary fund at the end of the period compared with the beginning of the period is
mainly due to the increase of purchase payment in the current period.Note 2：The amount of restricted cash and bank balances by the end of the period is RMB4890457106.12. The
main types are l/c and acceptance bill deposit time deposit certificate pledged deposit certificate and letter of
guarantee deposit.
2.Financial assets measured at fair value through current profit and loss
3.Derivative financial assets
□Applicable √ Not applicable
4.Notes receivable & account receivable
In RMB
Items Year-end balance Year-beginning balance
Notes receivable 499781503.17 538128584.84
Account receivable 14352781895.39 7873419684.42
Total 14852563398.56 8411548269.26
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
（1）Notes receivable
（1）Classification Notes receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 142810310.93 267121031.99
Trade acceptance 356971192.24 271007552.85
Total 499781503.17 538128584.84
（2）Notes receivable pledged by the Company at the period -end
In RMB
Items Amount
Bank acceptance 0.00
Trade acceptance 0.00
Total 0.00
（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 December
312018
Amount underecognized as at January
12018
Bank acceptance 1074945963.88
Trade acceptance 350505600.00
Total 1074945963.88 350505600.00
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
In RMB
Items Transfer of accounts receivable at the end of the period
Trade acceptance 0.00
Total 0.00
Other note
(2) Account receivable
(1)Classification account receivables.
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
In RMB
Category
Year-end balance Year-beginning balance
Book balance
Provision for bad
debts
Net
carrying
amount
Book balance Provision for bad debts Net
carrying
amount Amount
Proportion（%）
Amount
Proportion（%）
Amount
Proportion（%）
Amount
Proportion
（%）
Accounts receivable
of individually
withdrawing bad debt
provision with
significant individual
amount
154637
381.31
1.06%
154637
381.31
100.00%
175782
084.76
2.16%
1757820
84.76
100.00%
Account receivables
with provision for
bad debt made on a
portfolio with similar
risk credit
characteristics basis
144505
40744.2
4
98.94%
977588
48.85
0.68%
1435278
1895.39
79757
76808.
83
97.84%
1023571
24.41
1.28%
78734196
84.42
Total
146051
78125.5
5
100.00%
252396
230.16
1.73%
1435278
1895.39
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
17714730.31 17714730.31 100.00% Uncollectible
Total 154637381.31 154637381.31 -- --
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Within credit period 8737320986.99
Within 1 year after credit period 1070531899.41 53526594.96 5.00%
Subtotal within 1 year 9807852886.40 53526594.96 5.00%
1-2 years 189920028.18 18992002.82 10.00%
2-3 years 35279812.36 10583943.71 20.00%
Over 3 years 20711170.96 14656307.36
3-4 years 10708702.83 5354351.42 30.00%
4-5 years 2335040.62 1634528.43 50.00%
Over 5years 7667427.51 7667427.51 70.00%
Total 10053763897.90 97758848.86 100.00%
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
C.Accounts receivable of combinational withdrawing bad debt provision by Other methods
Group Name Amount in year-end Provisionfor bad debt
State subsidy. Local subsidy 2810817714.40
Other Group 1585959131.94
Total 4396776846.34
Continued：
Group Name Amount in year- beginning Provision for bad debts
State subsidy. Local subsidy 2160997954.00
Other Group 254753079.36
Total 2415751033.36
（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 RMB116848675.65;The
amount of the reversed or collected part during the reporting period was of RMB55997072.38.
（3）The current accounts receivable written-offs situation
In RMB
Items Amount written-offs
Accounts receivable written-offs 86594582.28
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)
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Korea sunlong Bus
Co.Ltd
Goods 33605450.90
Unexpected to
recover
Relevant approval
procedures have
been implemented
No
Siam Standard
Energy Co.Ltd
Goods 29683695.30
Unexpected to
recover
Relevant approval
procedures have
been implemented
No
Foshan Sanshui
Yuejing Automobile
Transportation Co.Ltd.Goods 5695816.45
Bankruptcy of the
enterprise is not
expected to be
recovered.Relevant approval
procedures have
been implemented
No
Total -- 68984962.65 -- -- --
Account receivable verification instructions:
Note: the company has completed the related examination and approval procedures for the accounts receivable actually written off in
the current period
（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
RMB1861131011.67 which accounts for 12.74% of the total receivables. The total amount of closing balance
for corresponding accrued bad-debt provision is RMB2204560.00.Note：
Nil
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
Other note：
Note 1: the increase of accounts receivable at the end of the period compared with the beginning of the period is caused by the
increase of sales income in the current period and the corresponding increase of receivables.Note 2: details of factoring financing at the end of accounts receivable are shown in note 70 to the consolidated financial statements
5. Prepayments
（1）Disclosed by aging:
In RMB
Aging
Amount in year-end Amount in year- beginning
Amount Proportion(%) Amount Proportion(%)
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Within 1 year 4876126216.78 93.49% 1771543035.64 87.65%
1-2 years 146513615.36 2.81% 196545999.45 9.73%
2-3 years 148601980.13 2.85% 27318669.74 1.35%
Over 3 years 44172407.24 0.85% 25712246.12 1.27%
Total 5215414219.51 -- 2021119950.95 --
Note：
Note Note: the prepayment amount of 220285693.73 yuan with aging over 1 year and significant amount is not
carried forward because the settlement conditions are not met.
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Note 1：As of December 31 2018 the total amount of the top five companies in advance payments is RMB
1860688593.47 accounting for 35.68% of the total ending balance of prepayments of advance payments.
Other note：
6. Other accounts receivable
In RMB
Items Amount in year-end Amount in year-begin
Interest receivable 5681196.67 49456785.29
Other receivable 1069179058.88 1044890336.32
Total 1125991020.55 1094347121.61
（1）Interest receivable
（1）Classification Interest receivable
In RMB
Items Amount in year-end Amount in year-begin
Fixed deposit 56811961.67 49456785.29
Total 56811961.67 49456785.29
（2）Important overdue interest
Other note：
Nil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(2).Dividend receivable
（3）Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
Category
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Net
carrying
amount
Book Balance Bad debt provision Net
carrying
amount
Amount Proportio
n(%)
Amount Proportio
n(%)
Amount Proportio
n(%)
Amount Proportion(
%)
Other Accounts
receivable of
individually
withdrawing bad debt
provision with
significant individual
amount
90568
21.74
0.83%
9056821
.74
100.00%
Other receivables
subject to provision
for bad debts on
credit risk
characteristics basis
107568
6445.89
98.19%
199348
34.82
1.85%
1055751
611.07
10808
21148.
37
98.85%
3593081
2.05
3.32%
10448903
36.32
Other Accounts
receivable of
individually
withdrawing bad debt
provision with
non-significant
individual amount
198177
16.37
1.81%
639026
8.56
32.25%
1342744
7.81
34711
43.41
0.32%
3471143
.41
100.00%
Total
109550
4162.26
100.00%
263251
03.38
2.40%
1069179
058.88
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
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(%)
Within item 1 year
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Within credit period 270308778.79
Within 1 year after credit period 33176078.81 1658803.94 5.00%
Subtotal Within 1 year 303484857.60 1658803.94 5.00%
1-2 years 48822292.15 4882229.21 10.00%
2-3 years 26135402.05 7840620.61 30.00%
Over 3 years 9516681.87 5553181.06
3-4 years 7896375.72 3948187.86 50.00%
4-5 years 51043.17 35730.22 70.00%
Over 5 years 1569262.98 1569262.98 100.00%
Total 387959233.67 19934834.82
Note：
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
B. other receivable of individually withdrawing bad debt provision with not significant individual amount
Other receivable （Unit） Book balance
Provision for bad
debts
Proportion(%) Reason
Harbin Junqi Automobile Leasing Co. Ltd. 1886873.28 462229.61 24.50 Estimated recoverable
amount
Shenzhen Haisheng Transportation Service Co.Ltd.
2765624.60 1103381.59 39.90 Estimated recoverable
amount
Shenzhen Xinguangtong Automobile
Transportation Co. Ltd
2519037.04 1148020.60 45.57 Estimated recoverable
amount
Datong Longtuo Travel Co. Ltd. 1969899.05 571507.85 29.01 Estimated recoverable
amount
Harbin Tianlu Automobile Leasing Co. Ltd. 1866499.22 801693.19 42.95 Estimated recoverable
amount
Xuchang Yuntong Bus Travel Co. Ltd. 1478721.26 802334.27 54.26 Estimated recoverable
amount
Datong Longlu Travel Co.Ltd. 1274996.21 20059.22 1.57 Estimated recoverable
amount
Huhehaote Juding Automobile Sales Co. Ltd. 1105311.68 144270.58 13.05 Estimated recoverable
amount
Other 4950754.03 1336771.65 27.00 Estimated recoverable
amount
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total 19817716.37 6390268.56 32.25
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB22110365.98 the account collected or switches back amounting to
RMB30868265.50.
Significant amount of reversed or recovered bad debt provision：
(3) Other account receivables actually cancel after write-off
In RMB
Items Amount
Other receivables actually written off 13375774.30
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.
Current account 3471143.41
Expected
unrecoverable
Confirm bad debt
according to the
report - Foshan
Sanshui yuejing
No
Korea Sunlong Bus
Co.Ltd
Current account 9904630.89
Expected
unrecoverable
According to the
company's
examination and
approval report to
confirm the loss of
South Korea
Sunlong bad debt
No
Total -- 13375774.30 -- -- --
Note：
(4) Other account receivables category by nature of money
In RMB
Nature Ending book balance Beginning book balance
Current account 305650872.46 283565756.25
Deposit 621344394.44 507704264.31
Personal official borrowing 59482116.20 84988267.52
Persona Returnable Insurance 5863292.04 2564564.43
Export tax refunds 1037409.54 6453137.37
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Advance payment 55633246.16 129922874.94
Project fund 37831545.08 68529879.43
Other 8661286.34 9620369.27
Total 1095504162.26 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 1 year after
credit period:80
million yuan 1-2
years: 120 million
18.26%
Sichuan Panxi
Lingshan Tourism
Investment
Development Co.
Ltd.
Enterprises fund
transfers
83188661.00 Within credit period 7.59%
Chongqing Haolong
Platinum Industry
Co. Ltd.
Enterprises fund
transfers
50163611.11 Within credit period 4.58%
Tibet transportation
Dept.
Deposit 30305918.60 1-2 years 2.77%
Chengdu Dingyang
Technology Co. Ltd.
Deposit 25024900.25
Within 1
year:20672055.62
yuan the rest are 1-2
years
2.28%
Total -- 388683090.96 -- 35.48%
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other note：
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Nil
7.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industries
No
（1）Inventory types
In RMB
Items
Year-end balance Year-beginning balance
Book Balance
Provision for bad
debts
Net carrying
amount
Book Balance
Provision for bad
debts
Net carrying
amount
Raw materials 1011195380.28 39101593.48 972093786.80 2210317909.51 23802249.09 2186515660.42
Processing
products
144788638.36 144788638.36 243932972.44 243932972.44
Stock goods 675474531.36 21859006.00 653615525.36 457130464.91 9080902.13 448049562.78
Completed but
unsettled assets
caused by
construction
contract
1200764859.02 1200764859.02 760198642.91 760198642.91
Development
product
317769074.78 317769074.78
Commissioned
processing
material
33093172.93 435243.31 32657929.62 60471813.36 1443698.36 59028115.00
Commissioned
materials
6883551.21 6883551.21 13306134.19 13306134.19
land arrangement 182213301.70 182213301.70 10346187.21 10346187.21
Development cost 1188193081.41 1188193081.41
Total 3572182509.64 61395842.79 3510786666.85 4943897205.94 34326849.58 4909570356.36
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
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.11 - listed companies engaged in jweelry related business" disclosure requirements
No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(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 15299344.39 39101593.48
Stock goods 9080902.13 14146518.02 1368414.15 21859006.00
Processing
prodects
1443698.36 1008455.05 435243.31
Total 34326849.58 29445862.41 2376869.20 61395842.79
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 32101989.83 yuan.
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Items Amount
Accumulated Incurred Cost 8396256236.64
Accumulated Confirmed Gross Profit 844504632.54
Settlement Amount 8039996010.16
Unliquidated Completed Assets Formed in the Construction
Contract
1200764859.02
Other note：
（4）Development cost
Name Starting time Estimated
completion time
Expected
total
investment
(ten
thousand)
Opening balance Inventory
depreciation
reserve
Cloding
blance
Cloding
Inventory
depreciati
on reserve
Tunghsu
International Center
2015.12.29 2018.10.16 220000.00 1188193081.41
Including：
Capital interest
101544263.19
Total 1188193081.41
（5）Development Product
Name Completion time Opening Increased in this Decreased in this Ending balance Depreciation
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
balance period period reserve
Tunghsu
International
Center
2018/10/16 1459295506.43 1141526431.65 317769074.78
Including：
Capital interest
125233711.67 93131721.84 32101989.83
Note 2: Note 2: For details of Mortages of end-of-period please refer to Note 70 of Consolidated Financial
Statements
8. Holding assets for sale
In RMB
Items End book value Fair value Estimated disposal cost Estimated disposal time
Holding assets for sale 119355435.58 119355435.58 December 312019
Total 119355435.58 119355435.58 --
Other note：
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. Sold on 31 December 2019.Pursuant to the agreement of the acquisition of sub-subsidiary company Daosui 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 2019.
9. Non current assets due within one year
10. Other current assets
In RMB
Items Year-end balance Year-beginning balance
USD exchange 58000000.00 58000000.00
Prepayment of income tax 663642694.01 1281947333.75
Short –term Financing 87718084.48 1220000000.00
Total 809360778.49 2559947333.75
Other note：
Note: The decrease at the end of the period compared with the beginning of the period is mainly due to the
decrease in short-term financial management advance payment and taxes to be deducted.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
11. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Items
Closing balance Opening balance
Book balance
Provision for
impairment
Net carrying
amount
Book balance
Provision for
impairment
Net carrying
amount
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
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
16.50%
China
Metallurgi
cal
investment
fund
manageme
nt
(Beijing)
Co. Ltd.
11365854
9.30
11365854
9.30
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 note:
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.Note 2: On July 12 2018 the company signed an agreement with Ming Feng Liang Hongjie Liu Jie and Tu
Liying to invest 29.5 million yuan in Beijing Shenwei Shixing Automobile Service Co. Ltd. capital increase
holding 16.5% of Beijing Shenwei Shixing after the capital increase. Since fair value cannot be obtained it is
measured at cost.Note 3: Tunghsu Construction Group Co. Ltd. a wholly-owned subsidiary of the company (hereinafter referred to
as "Tunghsu Construction") participates in the subscription of the Hengshui Funan New District Municipal Pipe
Rack Project Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter
referred to as "Hengshui Pipe Rack Fund") and Hengshui Funan New District Municipal Road Project
Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter referred to as
"Hengshui Road Fund") initiated by MCC Jianxin Investment Fund Management (Beijing) Co. Ltd. Hengshui
Pipe Rack Fund has a total scale of 386.0271 million yuan of which Tunghsu Construction contributed 200
million yuan in cash and China Metallurgical Tiangong Group Co. Ltd. contributed 186.0271 million yuan in
cash. Hengshui Road Fund has a total scale of 64.6776 million yuan of which Tunghsu Construction contributed
40 million yuan in cash and MCC Tiangong Group Co. Ltd. contributed 24.6776 million yuan in cash. Both
Hengshui Pipe Rack Fund and Hengshui Road Fund are managed by MCC Jianxin Investment Fund Management
(Beijing) Co. Ltd. and the co-managed funds are managed by Beijing Dongfang Xujie Fund Management Co.
Ltd.
12. Held-to-maturity investment
13. 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
Net carrying
amount
Book balance
Provision for
impairment
Net carrying
amount
Sale of
commodities by
347225434.0
5
2794618.37
344430815.6
8
143988866.9
1
143988866.9
1
6%-7.6%
45.78%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
installment
Total
347225434.0
5
2794618.37
344430815.6
8
143988866.9
1
143988866.9
1
--
(2) Long-term account receivables recognition terminated due to transfer of financial assets
Nil
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
Nil
Other note
Nil
14. Long-term equity investment
In RMB
Investees
Opening
balance
Increase/decrease
Closing
balance
Closing
balance
of
impairme
nt
provision
Addition
investmen
t
Deductio
n
investmen
t
Gains/los
s 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.
2004062
204.94
5219829
0.80
2056260
495.74
Tunghsu
(Deyang)
Graphene
Industry
Develop
ment
Fund
Partnershi
p (LP)
2043673
8.11
2050280
7.13
66069.02
Zibo Bus
service
Co. Ltd.
3267881
3.57
9137725
.63
4181653
9.20
CUHK 7330696 2963966 7627093
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
internatio
nal
business
factoring
co. Ltd
8.08 .20 4.28
Subtotal
2130484
724.70
2050280
7.13
6436605
1.65
2174347
969.22
Total
2130484
724.70
2050280
7.13
6436605
1.65
2174347
969.22
Other note
Note 1: Tunghsu (Deyang) Graphene Industry Development Fund Partnership (Limited Partnership) the joint
venture was liquidated in November 2018.Note 2: The long-term equity investment at the beginning of the period includes the investment of RMB
155434.20 in the subsidiary Tunghsu Technology Co. Ltd. which has decided to be cancelled. The decrease at the
end of the period is attributable to the cancellation completion of Tunghsu Technology Co. Ltd. in May 2018.
15. 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
650839934.77 650839934.77
(1) Purchase
（2）Inventory\Fixed
assets\ Transferred from
construction in progress
650839934.77 650839934.77
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
4. Balance at period-end 709683677.43 709683677.43
II. Accumulated
amortization
1.Opening balance 614302.80 614302.80
2.Increased amount of
the period
22075493.61 22075493.61
(1) Withdrawal 1311370.70 1311370.70
（2）Other transfers 20764122.91 20764122.91
3.Decrease in the
reporting period
（1）Disposal
（2）Other out
4.Closing balance 22689796.41 22689796.41
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
686993881.02 686993881.02
2.Book value of the
period-begin
58229439.86 58229439.86
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Other note:
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Note 1: At the end of the period there is no investment real estate without a property right certificate.Note 2: For details of restrictions on the use of end-of-period ownership please refer to Note 70 of
Consolidated Financial Statements
16. Fixed assets
In RMB
Items End of term Beginning of term
Fixed assets 9634463323.77 11379727456.13
Total 9634463323.77 11379727456.13
(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 11507750402.79 122144132.07 185704090.92 13929417120.41
2.Increase in the
current period
10207180.25 246913236.99 12199683.44 17281305.55 286601406.23
(1) Purchase 3461826.41 102143588.91 11778832.81 14896843.09 132281091.22
（2）
Transferred from con
struction in progress
6745353.84 135659667.72 420850.63 154608.75 142980480.94
(3)Increased of
Enterprise
Combination
9109980.36 2229853.71 11339834.07
3.Decreased amount
of the period
55773182.12 1490329299.95 5451335.92 8506417.41 1560060235.40
（1）Disposal 1643394.46 31261718.03 2172216.69 2555836.20 37633165.38
（2）Investment
real estate transfer
54129787.66 54129787.66
（3）Transfer of
project under
construction
1423046991.10 1423046991.10
（4）Decreased of
Enterprise
consolidation
34979102.26 3224838.34 3917061.15 42121001.75
（5）Other decrease 1041488.56 54280.89 2033520.06 3129289.51
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
4.Closing balance 2068252492.76 10264334339.83 128892479.59 194478979.06 12655958291.24
II. Accumulated
depreciation
1.Opening balance 404808570.47 2013275887.71 57491501.47 73521319.79 2549097279.44
2.Increased
amount of the
period
72379067.98
748514807.63 14306694.96 22334400.51 857534971.08
（1）Withdrawal 72379067.98 748456500.83 14306694.96 22299885.01 857442148.78
(2) Combined to
increase
58306.80 34515.50 92822.30
3.Decreased
amount of the
period
20267629.35 360768003.71 1457400.78 3236634.05 385729667.89
（1）Disposal or
scrap
711850.91 22966383.95 1057436.73 943282.86 25678954.45
（2）Investment real
estate transfer
19555778.44 19555778.44
（3）
Transferred from con
struction in progress
336099776.16 336099776.16
Combined to reduce 660355.04 345683.16 259831.13 1265869.33
（4）Other decrease 1041488.56 54280.89 2033520.06 3129289.51
4.Closing balance 456920009.10 2401022691.63 70340795.65 92619086.25 3020902582.63
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
IV. Book value
1.Book value of the
period-end
1611332483.66 7863275203.36 57995743.94 101859892.81 9634463323.77
2.Book value of the
period-begin
1709009924.16 9494438070.24 64096690.60 112182771.13 11379727456.13
(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
Items Original book value
Accumulated
depreciation
Accumulated
depreciation
Net carrying amount
Machinery equipment 1438000000.00 397112850.07 1040887149.93
Total 1438000000.00 397112850.07 1040887149.93
(4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
In RMB
Items Net carrying amount Reason
Substation 249637.97 Processing
Boiler room 3700833.84 Processing
Other note:
Note 1: For details of the mortgage right of fixed assets at the end of the period and the restrictions on financial
leasing please refer to Note 70 of the Consolidated Financial Statements
（6）Liquidation of fixed assets
17. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under
construction
5013940816.82 3667972406.42
Engineering Materials 1163.79
Total 5013941980.61 3667972406.42
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(1)Project under construction
In RMB
Items
Year-end balance Year-beginning balance
Book balance Provision for
devaluation
Net carrying
amount
Book balance Provision for
devaluation
Net carrying
amount
Wuhu LCD glass
substrate
production line
project
2258254792.65 2258254792.65 1992039147.54 1992039147.54
Wuhan LCD
glass substrate
production line
project
14645209.52 14645209.52 14645209.52 14645209.52
Kunshan Color
film project
617456517.49 617456517.49 363976794.49 363976794.49
Polarizer project 763009412.48 763009412.48
Surface display
cover glass
125655703.76 125655703.76 15954258.93 15954258.93
High aluminum
silicon cover
glass sheet
production line
upgrade project
1003879240.41 1003879240.41
Glass substrate
production line
with annual
output of 1.65
million (G5)
TFT-LCD
570129313.14 570129313.14 414857526.62 414857526.62
New energy bus
and logistics
vehicle
production
project
147947403.38 147947403.38 0.00 0.00
Other 290617845.99 290617845.99 118135266.36 118135266.36
Total 5028586026.34 14645209.52 5013940816.82 3682617615.94 14645209.52 3667972406.42
(2)Changes of significant construction in progress
In RMB
Name Budget Amount Increase Transferr Other Balance Proporti Progress Capitaliz Includin Capitaliz Source
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
at year
beginnin
g
at this
period
ed to
fixed
assets
decrease in
year-end
on(%) of work ation of
interest
accumul
ated
balance
g：
Current
amount
of
capitaliz
ation of
interest
ation of
interestratio（%)of funds
Wuhu
LCD
glass
substrate
producti
on line
project
757652
0000.00
199203
9147.54
266215
645.11
225825
4792.65
96.66% 96.66%
800297
668.32
836158
83.39
IPO
funds
Kunshan
Color
film
project
311550
0000.00
363976
794.49
253479
723.00
617456
517.49
21.30% 21.30%
IPO
funds
Surface
display
cover
glass
149738
0000.00
159542
58.93
109701
444.83
125655
703.76
12.18% 12.18%
137157
01.19
IPO
funds
High
aluminu
m silicon
cover
glass
sheet
producti
on line
upgrade
project
130000
0000.00
100387
9240.41
100387
9240.41
85.44% 85.44%
IPO
funds
New
energy
bus and
logistics
vehicle
producti
on
project
295507
4600.00
147947
403.38
147947
403.38
10.41% 10.41%
IPO
funds
Annual
output
981050
000.00
414857
526.62
155271
786.52
570129
313.14
109.17% 95.00%
567025
56.91
235503
11.10
Other
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
1.65
million
(G5)
TFT-LC
D glass
substrate
producti
on line
Pilot
producti
on line
project
for thick
film
substrate
s
126490
000.00
120788
399.94
120788
399.94
95.49% 100.00% Other
Polarizer
project
220000
0000.00
763009
412.48
157932
20.47
778802
632.95
Other
Total
197520
14600.0
0
354983
7140.06
207307
6863.66
120788
399.94
778802
632.95
472332
2970.83
-- --
870715
926.42
107166
194.49
--
（3）Impairment provision of construction projects
18. Engineering Material
In RMB
Items
Balance in year-end Balance Year-beginning
Book balance Provision for
devaluation
Net carrying
amount
Book balance Provision for
devaluation
Net carrying
amount
Special Material 1163.79 1163.79
Total 1163.79 1163.79
Other note:
Note 1: For details of the mortgage at the end of the construction in progress see Note 70 of the consolidated
financial statements.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
18. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
19. Oil-and-gas assets
□ Applicable √ Not applicable
20. Intangible assets
（1）Information
In RMB
Items Land use right Patent right
Non patent
technology
Software
Right of trade
mark
Total
I. Original price
1. Balance at
period-beginning
887528257.12 23582996.80 150931868.85 7755063.97 87050298.13 1156848484.87
2.Increase in the
current period
145458869.94 66657413.82 14204413.89 12316749.51 238637447.16
(1) Purchase 145458869.94 2234200.42 12316749.51 160009819.87
（2）Internal R &
D
（3）Increased of
Enterprise
Combination
53688713.40 14204413.89 67893127.29
(4)Investor
investment
10734500.00 10734500.00
3.Decreased
amount of the
period
5632373.72 5632373.72
（1）Disposal
（2）Investment
real estate
transfer
5632373.72 5632373.72
4. Balance at 1027354753.34 90240410.62 165136282.74 20071813.48 87050298.13 1389853558.31
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
period-end
II. Accumulated
amortization
1. Balance at
period-beginning
76219489.09 3138879.85 28677985.20 2965954.66 44050066.05 155052374.85
2. Increase in the
current period
22744757.95 5204892.49 15878742.46 2331780.50 42899609.40 89059782.80
(1) Withdrawal 22744757.95 4688497.61 15878742.46 2331780.50 42899609.40 88543387.92
（2）Increased of
Enterprise
Combination
447405.94 447405.94
（3）Investment 68988.94 68988.94
3.Decreased
amount of the
period
1208344.48 1208344.48
（1）Disposal
（2）
Investment real
estate transfer
1208344.48 1208344.48
4. Balance at
period-end
97755902.56 8343772.34 44556727.66 5297735.16 86949675.45 242903813.17
III. Impairment
provision
1. Balance at
period-beginning
2. 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 929598850.78 81896638.28 120579555.08 14774078.32 100622.68 1146949745.14
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
period -end
2.Book value at
period-beginning
811308768.03 20444116.95 122253883.65 4789109.31 43000232.08 1001796110.02
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets 0.00%
⑵Details of Land use right failed to accomplish certification of property
Other note:
Note 1: the certificate of title has been completed by the end of this period.Note2: For details of the ending mortgage of intangible assets see Note 70 of the consolidated financial
statements.
21.Development expenses
In RMB
Items
Beginning
balance
Increase in the period Decrease in period
Ending
balance
Metal
phosphate as
a negative
electrode
material for
lithium ion
batteries etc.
3883495.16 7260906.60 2557863.40 8586538.36
Jingang
Robot
3361420.59 3361420.59
Warehouse
robot
2855282.54 2855282.54
Companion
robot
(desktop)
2900641.21 2900641.21
EASSupply
chain system
2236772.24 2236772.24
Landscape
street lamp
design
project
2141940.99 1673576.37 3815517.36
Magnolia
lamp design
762432.49 762432.49
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
project
Low voltage
distribution
system
project
2055487.81 2055487.81
High voltage
distribution
system
project
3096837.78 3096837.78
Intelligent
photovoltaic
junction box
914598.09 914598.09
Vehicle
charging pile
Project
519955.68 803963.60 519955.68 803963.60
Energy
storage
project
2022956.97 2022956.97
Development
of main
Control
system for
AC charging
pile
5522571.93 5522571.93
Research on
an efficient
LED module
street lamp
3903701.39 3903701.39
Chinese style
courtyard
lamp design
project
1663986.67 1663986.67
Flexible
battery
1456310.68 1456310.68
Other 15529.37 15529.37
Total
15397704.9
7
33654663.1
9
11930132.2
2
37122235.9
4
22. Goodwill
(1) Original book value of goodwill
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
In RMB
Investees/ Item
Beginning
balance
Increase Decrease
Ending balance Business
Combination
Purchase Disposal
Mingshuo
（Beijing）
Electric
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.
133269567.62 133269567.62
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shenzhen Sanbao
Innovation
Intelligent Co.Ltd.
68888405.50 68888405.50
Huaxi Nanchong
Automobile Co.
Ltd.
55999916.40 55999916.40
Total 2587678140.99 258157889.52 2845836030.51
（2）Impairment provision of goodwill
In RMB
Name of the
investees or the
events formed
goodwill
Opening balance Increase Decrease Closing balance
Chenzhou
Hongcheng
Public Traffic
Constriction
Development
Co. Ltd.
10163443.61 10163443.61
Total 10163443.61 10163443.61
Relevant information about the asset group or asset group combination in which goodwill resides
The asset group or asset group combination related to goodwill impairment test is that can benefit from the
synergistic effect of business merger. The test scope at the balance sheet date is the assets and liabilities involved
in the smallest asset group related to goodwill specifically including business capital and long-term assets.The asset group has changed in the current period:The Company acquired Shanghai Sunlong Bus Co. Ltd.(hereinafter referred to as "Shanghai Sunlong") in October 2017. There was no consolidation of the bus business
due to the short merger and acquisition. Therefore goodwill impairment test was carried out with Shanghai
Sunlong and Guangxi Sunlong Automobile Manufacturing Co. Ltd. (hereinafter referred to as "Guangxi
Sunlong") a subsidiary thereof as 2 independent asset groups. In 2018 with the consolidation of bus business
unified management of bus R&D procurement and sales and unified allocation of resources the management
conducted goodwill impairment test with Shanghai Sunlong Guangxi Sunglong and Huaxi Nanchong Automobile
Co. Ltd. (hereinafter referred to as "Huaxi Nanchong") which was acquired by Shanghai Sunlong in April 2018
as independent asset groups.
Except for the above asset groups there is no change in other asset groups in the current period.
Describe the goodwill impairment test process key parameters (e.g. forecast period growth rate stable period
growth rate profit margin discount rate and forecast period when forecasting the present value future cash flow)
and the recognition method of goodwill impairment loss
The recoverable amounts for asset group and asset group combination are based on the three-to five-year
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
budgets approved by the management Then use a fixed growth rate to estimate based on the entry stability period.and calculated using the cash flow forecast method.
Chenzhou Hongsheng has made a full cycle of cash flow forecast due to the construction period and operating
period up to 2036.The discount rate adopted by the management of the company is the pre-tax interest rate reflecting the time
value of the current market currency and the specific risks of the relevant asset group. Different asset groups are
located in different industries and the discount rate results are different including 11.03% for Shanghai Sunlong;
11.39% for Suzhou Tengda; 14.23% for Shenzhen Sanbao; 12.79% for Daosui; 14.11% for Tanyuan Huigu;
12.63% for Mingshuo; 10.29% for Chenzhou Hongsheng.
The recoverable amount of the asset group shall be determined according to the fair value (future disposal
value) of the asset minus the disposal expenses due to the future disposal of Zhongcheng National construction co. Ltd.Ltd..Impact of goodwill impairment test
Zhongming International Asset Appraisal (Beijing) Co. Ltd. evaluated and confirmed the present value of the
future cash flow of the asset group on December 31 2018 and issued the appraisal report.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0008) Shanghai Sunlng Asset Group shows no sign of
goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0009) Suzhou Tengda shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0010) Sanbao Innovation shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0011) Daosui shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0012) Tanyuan Huigu shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0013) Mingshuo shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0014) Chengzhou Hongcheng shows no sign of goodwill
impairment.Zhongcheng National Construction co. Ltd.has signed an equity transfer agreement in April 2019 and the valuation
price of 70% equity of Zhongcheng National construction co. Ltd. held by Tunghsu Construction Group Co. Ltd. is
RMB 140 million thus there is no sign of goodwill impairment.
23.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 12415384.73 7862496.12 8590217.81 16847249.82
NEG Technology
Use fee
5653725.00 616770.00 5036955.00
Total 26538304.02 12415384.73 8479266.12 8590217.81 21884204.82
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
24.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
343092733.65 64950015.23 361268489.05 72770445.79
Not realized the internal
profit
2085646185.70 313672923.77 2184199412.75 350253995.33
Deductible loss 813056144.42 123065344.84 434657411.04 65723232.54
Deferred income
difference
99944032.99 14878382.57 73641000.14 11046150.02
Non-identical control
enterprise
9424416.78 909279.99 8652114.93 783147.37
Projected liability 20944899.84 5236224.96 38543627.93 9635906.98
Advance quality margin 78820850.20 10382456.32 117878085.38 16420648.06
Total 3450929263.58 533094627.68 3218840141.22 526633526.09
(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
293849152.24 54572072.64 349818170.15 60149328.74
Depreciation difference
due to different tax law
and accounting
depreciation period
4198490.69 620911.33
Total 298047642.93 55192983.97 349818170.15 60149328.74
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Items
Trade-off between the
deferred income tax
assets and liabilities
End balance of deferred
income tax assets or
liabilities after off-set
Trade-off between the
deferred income tax
assets and liabilities at
period-begin
Opening balance of
deferred income tax
assets or liabilities after
off-set
Deferred income tax
assets
533094627.68 526633526.09
Deferred income
liabilities
55192983.97 60149328.74
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible losses 152606559.26 74905668.59
Fixed assets depreciation reserves 0.00 36444.84
Provision for impairment of construction
projects
14645209.52 14645209.52
Bad debt provision 86413.68 86413.68
Total 167338182.46 89673736.63
(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 0.00 15649.80
2019 386221.54 436608.64
2020 3751170.54 3751170.54
2021 22199323.24 32084711.54
2022 27911201.66 38617528.07
2023 98358642.28
Total 152606559.26 74905668.59 --
25 .Other non-current assets
In RMB
Items Balance in year-end Balance in year-begin
Prepaid land fund 6590000.00
Prepaid engineering equipment 4463496966.82 299812939.48
Total 4463496966.82 306402939.48
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
26.Short –term loans
（1）Short-term loans by category
In RMB
Items Balance in year-end Balance in year-begin
Pledge loan 2666853417.34 320666279.80
Mortgage loan 1847600000.00 374600000.00
Guarantee loan 3589753471.68 4997500000.00
Credit loan 256899762.31 20060102.40
Total 8361106651.33 5712826382.20
Note：
Note 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.Note 2.At the end of the period the company's Mortgage loans of RMB 847600000.00.Including: (1) End-of-period mortgage loan is RMB 110000000.00 which is both a guarantee loan and a
mortgage loan. Tunghsu Group Co. Ltd. the Company and its subsidiary Shanghai Sunlong Bus Co. Ltd. provide
guarantee for Guangxi Sunlong Automobile Manufacturing Co. Ltd. the grandson company; the collateral is the
inspection line workshop warehouse and No. 1 production workshop located at No. 99 Puxing Avenue Yongning
District Nanning City numbered as No. 0243831 0243689 0137166 of Gui (2018) Nanning Real Estate Right;
(2) End-of-period mortgage loan is RMB 49600000.00 which is both a guarantee loan and a mortgage loan.
Tunghsu Construction Group Co. Ltd. and Yang Jianzhong provide joint liability guarantee for Daosui Group
Engineering Co. Ltd. the grandson company. The collateral is the No. 384 construction land (HGY (2012) Z) and
No. 200700980 real estates (HYZ No.200700980) located at No. 66 Yingbin Road Huaying City.
(3) End-of-period mortgage loan is RMB 110000000.00. The collateral is the machinery and equipment of
the subsidiary Fuzhou Xufu Optoelectronic Technology Co. Ltd. and the land and real estate corresponding to the
first production line;
(4) End-of-period mortgage loan is RMB 98000000.00 which is both a guarantee loan and a mortgage loan.
Tunghsu Group Co. Ltd. and Li Zhaoting provide joint liability guarantee for the Company. Tunghsu Zhuding
Investment Development Group Co. Ltd. the mortgagor will mortgage the house and other fixtures (J (2018) H
Real Estate No. 0050316) located in No. 115 office property Yangfangdian Haidian District Beijing.
(5) End-of-period guarantee loan is RMB 480000000.00. Li Zhaoting provides joint and several guarantees
for the Company. All parcel number 33010801200000004 residential lands and parcel number
33010801200000006 commercial lands of Hangzhou Yuanbang Real Estate Development Co. Ltd. located in
Kanshan Town Xiaoshan District Hangzhou City Zhejiang Province serve as the second order mortgage
guarantee for the state-owned transfer of land use right. The first floor of Binjiang Huayue Phase III apartment
building and the first floor of Binjiang Huayue Phase III office building of Anhui Meisheng Real Estate Co. Ltd.are located in No.368 Baohe Avenue Baohe District Hefei City Anhui Province serve as the mortgage guarantee.
(6) The pledged loan at the end of the period is RMB 1000000000.00.
Li Zhaoting provides joint and several guarantees for the Company.Tunghsu optoelectronic Technology Co.Ltd. Tunghsu Group and Li Zhaoting provides joint and serveral guarantees for the Company The company also
pledged 100% shares of its subsidiary Beijing Xufeng Real Estate Co. Ltd. which provides mortgage on its own
land.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Note 3: The guarantee loan is RMB 3589753471.68:
Of which: (1) End-of-period guarantee loan is RMB 210000000.00 The Company and Li Zhaoting provides
joint liability guarantee for the Company;
（2）End-of-period guarantee loan is RMB 100000000.00 The company provides joint liability guarantee to the
Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd.;
（3）End-of-period guarantee loan is RMB 25000000.00 The company and Li Zhaoting provides joint liability
guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd.;
（4）End-of-period guarantee loan is RMB 20000000.00 The company provides joint liability guarantee to the
Sub-Subsidiary –Suzhou Tengda Optics Technology Co. Ltd.;
（5）End-of-period guarantee loan is RMB 205000000.00 The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co. Ltd.;
（6）End-of-period guarantee loan is RMB 95000000.00 The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd.;
（7）End-of-period guarantee loan is RMB 50000000.00 The company provides joint liability guarantee to the
Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co. Ltd.;
(8) End-of-period guarantee loan is RMB 80000000.00 Tunghsu Group Co. Ltd. and Li Zhaoting provide
joint guarantee for Sichuan Xuhong Optoelectronic Technology Co. Ltd.;
（9）End-of-period guarantee loan is RMB 50000000.00 The Company provides joint liability guarantee to the
subsidiary -Shanghai Sunlong Bus Co. Ltd;
（10）End-of-period guarantee loan is RMB100000000.00 The Company and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Shanghai Sunlong Bus Co. Ltd.;
（11）End-of-period guarantee loan is RMB45000000.00 The Company and Tunghsu Group provides joint
liability guarantee to the sub-subsidiary –Suzhou Tengda Optics Technology Co. Ltd.;
（12）End-of-period guarantee loan is RMB200000000.00 The Company and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co. Ltd.;
（13）End-of-period guarantee loan is RMB400000000.00 Li Zhaoting and Tunghsu Group provides joint
liability guarantee to the Company.;
（14）End-of-period guarantee loan is RMB100000000.00 Li Zhaoting and Tunghsu Group provides joint
liability guarantee to Shanghai Sunlong Bus Co. Ltd.;
（15）End-of-period guarantee loan is RMB200000000.00 Li Zhaoting and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Zhengzhou Xufei Optoelecronic Technology Co. Ltd.;
（16）End-of-period guarantee loan is RMB200000000.00 Tunghsu Group.provides joint liability guarantee to
the Subsidiary –Shanghai Sunlong Bus Co. Ltd.;
（17）End-of-period guarantee loan is RMB200000000.00 Tunghsu Group provides joint liability guarantee to
the Company.;
（18）End-of-period guarantee loan is RMB250000000.00 Tunghsu Group provides joint liability guarantee to
the Subsidiary –Daosui Group Co. Ltd.;
（19）End-of-period guarantee loan is RMB150000000.00 Tunghsu Group provides joint liability guarantee to
the Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd.;
（20）End-of-period guarantee loan is RMB320000000.00 Tunghsu Group provides joint liability guarantee to
the Subsidiary –Shanghai Sunlong Bus Co. Ltd.;
（21）End-of-period guarantee loan is RMB50000000.00 Tunghsu Group provides joint liability guarantee to
the Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co. Ltd.;
（22）End-of-period guarantee loan is RMB200000000.00 Tunghsu Group provides joint liability guarantee to
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
the Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co. Ltd.;
（23）End-of-period guarantee loan is RMB30000000.00 Subsidiary-Shanghai Sunlong Bus Co. Ltd.provides
joint liability guarantee to the Sub- Subsidiary –Guangxi Sunlong Automobile Manufacturing Co. Ltd.;
(24)End-of-period guarantee loan is RMB55253471.68 Sub-Subsidiary-Shenzhen Xinyingtong Technology
Co. Ltd.provides guarantee with 100% Pledge .;
（25）End-of-period guarantee loan is RMB150000000.00The Company provides joint liability guarantee to
Subsidiary - Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd.;
（26）End-of-period guarantee loan is RMB25000000.00 The Company provides joint liability guarantee to the
sub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co. Ltd.;
（27）End-of-period guarantee loan is RMB49500000.00 The Company provides joint liability guarantee to the
Subsidiary –Tunghsu (Kunshan) Display Co. Ltd.;
（28）End-of-period guarantee loan is RMB20000000.00 The Company and Li Zhaoting provides joint liability
guarantee to the sub-subsidiary –Hunan Tunghsu Delai Electric Technology Co. Ltd.;
（29）End-of-period guarantee loan is RMB10000000.00 The Company provides joint liability guarantee to the
sub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co. Ltd.Note 4: End-of-period pledge loan is RMB2666853417.34:
(1) The Company pledges a loan of RMB 142500000.00 and provides pledge guarantee for Wuhu Tunghsu
Optoelectronic Technology Co. Ltd. with the fixed deposit receipt of RMB 150000000.00.
（2）The Company provides a guarantee of RMB 20000000.00 for the sub-subsidiary Chongqing
Jinghuateng Optoelectronic Technology Co. Ltd. which uses the accounts receivable of RMB 25674800.00 as
pledge.
(3) End-of-period pledge loan is RMB 180000000.00 which is both a guarantee loan and a pledge loan.
Tunghsu Group Co. Ltd. Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd. and Wuhu Tunghsu
Weiyu Medical Apparatus Technology Co. Ltd. a sub-subsidiary of the Company provide joint guarantee; Hunan
Tunghsu Weigao Medical Apparatus Technology Co. Ltd. the grandson company provides pledge guarantee with
fixed deposit receipt of RMB 100 million;
(4) End-of-period pledge loan is RMB 142500000.00. Wuhu Tunghsu Optoelectronic Equipment
Technology Co. Ltd. provides pledge guarantee with the fixed deposit receipt of RMB 150000000.00.
(5) End-of-period pledge loan is RMB 69000000.00. Daosui Group Engineering Co. Ltd. the
sub-subsidiary company provides pledge guarantee with the fixed deposit receipt of RMB 72010000.00;
(6) The pledged loan at the end of the period is RMB 1800000000.00. Li Zhaoting and Shenzhen Oufuyuan
Technology Co. Ltd. hold 75% of the equity of Zhongshan Shenzhong Real Estate Development Co. Ltd. to
provide pledge guarantee.
(7) End-of-period pledge loan is RMB 12853417.34. Suzhou Tengda Optical Technology Co. Ltd. the
sub-subsidiary company provides pledge guarantee with accounts receivable pledge .
(8) End-of-period pledge loan is RMB 300000000.00.Tunghsu Group's loan is both a guarantee loan and a
pledge loan guarantee. Li ZhaotingTunghsu Group Co. Ltd. and Shanghai Sunlong Bus Co. Ltd. provide joint
liability guarantee. Shanghai shenlong bus co. LTD. Provides pledge guarantee for the company with the pledge
of 350 million accounts receivable.
(2) Situation of Overdue Outstanding Short-Term Borrowing
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
27. Financial liabilities measured at fair value through current profit and loss
28. Derivative financial liabilities
□ Applicable√ Not applicable
29.Notes payable & account payable
In RMB
Items Balance in year-end Balance in year-begin
Notes payable 1643167026.68 1063897679.89
Account payable 8632927106.20 4636989039.65
Total 10276094132.88 5700886719.54
（1）List of Notes payable
In RMB
Items Balance in year-end Balance in year-begin
Commercial acceptance 1288410321.68 826294597.49
Bank acceptance bills 354756705.00 237603082.40
Total 1643167026.68 1063897679.89
（2）List of account payable
In RMB
Items Balance in year-end Balance in year-begin
Materials engineering labor payment 6796000151.83 3434306764.15
Project Fouds 1749055669.87 1093739288.73
Transportation expenses 28726403.86 11172407.72
Other 59144880.64 97770579.05
Total 8632927106.20 4636989039.65
（2）Significant accounts payable that aged over one year
In RMB
Items Balance in year-end Balance in year-begin
Sichuan zhongde construction labor
service co. LTD
48000000.00 Unpaid payment term
Beijing Guoxun investment co. Ltd. 41088123.25 Unpaid payment term
Sichuan Chaohang Construction Services 22500000.00 Unpaid payment term
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Co. Ltd. Chengdu Branch
Ningxia tianshun electric power
engineering co. LTD
21052646.58 Unpaid payment term
Xinjiang Anpuneng New Energy
Investment Co. Ltd.
20895884.25 Unpaid payment term
Total 153536654.08 --
30.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 133288930.47 635268325.76
Engineering fund 1268994731.90 1019869237.87
Total 1402283662.37 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
In RMB
Items Amount
Accumulated Incurred Cost 2275075178.00
Accumulated Confirmed Gross Profit 162467492.90
Settlement Amount 2688749974.00
Unliquidated Completed Assets Formed in the Construction
Contract
-251207303.10
Other note
Note: At the end of the period there are no important advance receipts with an age of more than one year.
31. 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 1098774156.49 1068386812.83 235863317.11
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
II. Welfare after waving
of position-fixed
provision scheme
2221388.80 75449849.88 75387578.62 2283660.06
III. Termination benefit 2985525.91 2985525.91
Total 207697362.25 1177209532.28 1146759917.36 238146977.17
（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 965100495.48 953664721.94 169708173.64
2.Employee welfare 54843.85 37806600.30 37724038.16 137405.99
3. Social insurance
premiums
1209437.58 38925976.09 38618326.35 1517087.32
Including：Medical
insurance
1043116.93 33687308.23 33593331.33 1137093.83
Work injury insurance 66261.87 2562329.37 2384798.52 243792.72
Maternity insurance 100058.78 2676338.49 2640196.50 136200.77
4. Public reserves for
housing
986360.29 28309758.40 27377817.94 1918300.75
5.Union funds and staff
education fee
44804730.41 23167792.00 5776294.23 62196228.18
Other 148201.22 5463534.22 5225614.21 386121.23
Total 205475973.45 1098774156.49 1068386812.83 235863317.11
（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 71033325.56 70982835.70 2130682.36
2.Unemployment
insurance
141196.30 4416524.32 4404742.92 152977.70
Total 2221388.80 75449849.88 75387578.62 2283660.06
Other note：Employee benefits payable has no arrears of wages.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
32. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 349650560.67 60982068.15
Enterprise Income tax 307974748.03 170094083.01
Individual Income tax 8509011.91 30271740.75
City Construction tax 13922593.39 7530509.66
Land VAT 101545748.03
House property tax 10701618.07 8631413.12
Land use tax 1534812.83 1802208.59
Educational surtax 10584164.68 6453814.04
Stamp Tax 3930901.55 3666280.55
Other 8818967.96 5547302.09
Total 817173127.12 294979419.96
Other note:
Note: The increase in taxes payable at the end of the period compared with the beginning of the period is mainly
due to the increase in value added tax payable enterprise income tax and land value-added tax.
33.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Interest payable 117554951.58 107195147.20
Dividend payable 35000000.00
Other account payable 1972048725.02 1887520891.88
Total 2089603676.60 2029716039.08
（1）Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans interest of installment and
interest charge
37542540.23 29020856.73
Enterprise bond interest 71935414.10 66833709.29
Short term loan interest payable 8076997.25 11340581.18
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total 117554951.58 107195147.20
- Particulars of significant overdue unpaid interest
Other note：
Nil
（2）Dividends payable
In RMB
Items Balance in year-end Balance in year-begin
Common dividends 35000000.00
Total 35000000.00
Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:
Nil
(3)Other payable
（1）Disclosure by nature
In RMB
Items Balance in year-end Balance in year-begin
Related party current account 632884079.05 475619957.85
Project Current account 558426427.62 575733577.03
Deposit 370070455.32 332956845.59
Individual official borrowing 95995501.74 118851620.51
Government Subsidy 15000000.00 15000000.00
Social security withholding 8526750.21 1823102.07
Engineering fund 55246500.11
Advance funds 10363123.11 33376954.61
Stock right fund 266310044.77 252444235.97
Restricted stock repurchase obligations 4422320.00 4422320.00
Other 10050023.20 22045778.14
Total 1972048725.02 1887520891.88
(2) Other payables with large amount and aging of over one year
Other instructions
Note: other important payables with an aging of more than 1 year at the end of the accounting period are 527931897.61 yuan.The reason for not paying back or carrying forward is that the settlement conditions are not met.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
34. Divided into liability held for sale
35.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 2523290150.75 4196242686.59
Long-term Account payable due within 1
year
1124359280.45 801679582.86
Deferred income due within 1 year 49743433.71 47686487.00
Total 3697392864.91 5045608756.45
36.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
USD exchange 68632000.00 65342000.00
For resale tax 136561128.73 79012267.85
Financing 110000000.00 82800911.12
Total 315193128.73 227155178.97
Other note：
Notes ：In 1993the Group signed the agreement on exchange of US dollars which agreed returning 10000000
US dollars to the Exchange Unit and repossess the RMB58000000.00 exchanged in November 1998 As of
December 31 2018 the Group still consults with the Exchange Unit on the returning of the exchange.
37. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance in year-end Balance in year-begin
Pledge loans 450000000.00 950000000.00
Mortgage loans 3013496417.47 4096235604.06
Guarantee loans 1801383333.28 4359733333.30
Less ：Long-term loan due 1 year -2523290150.75 -4196242686.59
Total 2741589600.00 5209726250.77
Note：
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 1801383333.28 is both the mortgage loan and the guarantee loan reclassified
into the non-current liabilities due within one year RMB 1533383333.28.Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Thereinto: (1) Tunghsu Group Co. Ltd Li Zhaoting and Li Qing provided the joint and several guarantee for the
company's borrowings of RMB 615000000.00 of which RMB 615000000.00 was reclassified to non-current
liabilities due within one year; Tunghsu Group Co. Ltdand Li Zhaoting provided the joint and several guarantee for the
company's borrowings of RMB 218833333.28 Tunghsu Group Li Zhaoting and Li Qing provided the joint and
several guarantee for Company's borrowings of 299550000.00 of which RMB 518383333.28 was reclassified to
non-current liabilities due within one year; Tunghsu Group Tunghsu Optoelectronic Investment Co. Ltd. and Li
Zhaoting provided the joint and several guarantee for the company's borrowings of RMB 400000000.00 of which
RMB 400000000.00 was reclassified to non-current liabilities due within one year; Tunghsu Group provided the
guarantee for RMB 80000000.00 for Sichuan Tunghsu Fanrong Construction Development Co. Ltd. of which RMB
0 was reclassified to non-current liabilities due within one yea
（2）NEG provides joint guarantee for the loan of RMB 188000000.00 of Fuzhou Xufu Optoelectronic
Technology Co. Ltd. the grandson company of which the non-current liabilities reclassified and transferred into
one-year maturity shall be RMB 0.00.Note 3: Mortgage loan RMB 3013496417.47 is both a mortgage loan and a guarantee loan and the
non-current liabilities reclassified and transferred into one-year maturity shall be RMB 989906817.47.Of which: (1) The non-current liabilities reclassified and transferred into one-year maturity in the loan of
RMB 204000000.00 are RMB 136000000.00. The collateral and guarantor of the loan are: a. The 202 mu
state-owned land use right and the plant after the completion of the project are mortgaged by Wuhu Tunghsu
Optoelectronic Technology Co. Ltd. and 2 precious metal platinum passages are provided for mortgage
guarantee; b. The loan guarantor is Wuhu Construction Investment Co. Ltd.
(2) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
1125000000.00 are RMB 375000000.00. The collateral and guarantor of the loan are: a. 8 precious metal
platinum passage assets owned by Wuhu Tunghsu Optoelectronic Technology Co. Ltd. provides mortgage and
guarantee; b. The Company provides joint and several liability guarantee for Wuhu Tunghsu Optoelectronic
Technology Co. Ltd. the subsidiary of the Company.
(3) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
213726400.00 are RMB 375000000.00. The collateral and guarantor of the loan are: a. Tunghsu Group Co.
Ltd. the guarantor provides joint liability guarantee to the Lender for the loan equivalent to RMB 450 million
under the Project and the interest penalty interest compound interest compensation liquidated damages damage
awards and the expenses of the realized creditor's rights thereof; b. The appraisal value of the collateral of the
buildings machinery and equipment on the ground (including 4 precious metal platinum passages) is RMB
1055713019.27.
(4) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB
425000000.00 are RMB 35000000.00. The mortgage and pledge guarantee of the loan are: a. Real estates
(YFQZYZ No. 20150301716 YFQZYZ No. 20150301767 YFQZYZ No. 20150301734 YFQZYZ No.
F20150301760 YFQZYZ No. 20150301711 YFQZYZ No. 20150301725 YFQZYZ No. 20150301769
YFQZYZ No. 1715047 of Tunghsu (Yingkou) Optoelectronic Technology Co. Ltd.; b. Tunghsu Group Co. Ltd.
shall provide joint liability guarantee for Tunghsu (Yingkou) Optoelectronic Technology Co. Ltd. and provide
pledge guarantee of 40 million shares.
(5) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB
180417.47 are RMB 180417.47. The collateral and guarantor of the loan are: Zeng Jiankai shall provide joint
liability guarantee and vehicle with a value of RMB 729238.00 as collateral.
(6) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
450000000.00 are RMB 150000000.00. The collateral and guarantor of the loan are: a. Shijiazhuang Xuxin
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Optoelectronic Technology Co. Ltd. the mortgagor provides mortgage guarantee with the assets formed by the
mortgagable Project including the land use right plants and other buildings machinery and equipment (including
the three precious metal platinum passages) etc.; b. Tunghsu Group Co. Ltd. and the couple Li Zhaoting and Li
Qing provide joint guarantee.
(7) The amount reclassified and transferred into one-year maturity in the roan of RMB 330000000.00 is
RMB 80000000.00. The collateral and guarantor of the loan are: a. The land use right of WK (Gong) GY 2013
No. 020 WK (Gong) GY 2013 No. 021 and WK (Gong) GY 2014 No. 008 and the fixed assets after the
completion of the project owned by Wuhu Tunghsu Optoelectronic Equipment Technology Co. Ltd. are
mortgaged; b. The Company provides joint liability guarantee for its subsidiary Wuhu Tunghsu Optoelectronic
Equipment Technology Co. Ltd.
Note 4: The pledge loan of RMB 450000000.00 is both a pledge loan and a guarantee loan and the
non-current liabilities reclassified and transferred into one-year maturity shall be RMB 0.00.Of which the loan is RMB 450000000.00. The the loan pledge and the guarantor are: a. The pledge is the
RMB 5 million circulating stocks of Tunghsu Optoelectronic Technology Co. Ltd. held by Tunghsu Group Co.
Ltd. and the full pledge of the equity corresponding to the paid-in contribution of RMB 178750000.00 of
Chengdu Tunghsu Intelligent Technology Co. Ltd. held by Tunghsu Group Co. Ltd.; b. Tunghsu Group Co. Ltd.
and Li Zhaoting provide guarantee.Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.50%.
38. Bonds payable
（1）Bonds payable
In RMB
Items Balance in year-end Balance in year-begin
15 Tunghsu bonds 952223306.45 993310440.39
Mid-term note I 2986250396.83 2981914109.61
Mid -term note II 1692345122.04 1689901540.52
Less：Bond payable due 1 year
Total 5630818825.32 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
9560427
00.00
2015.5.19 5 years
1000000
000.00
9933104
40.39
6308891
3.18
2870166
.06
4395730
0.00
9522233
06.45
Mid-term
note I
3000000
000.00
2016.11.1
7
5 years
3000000
000.00
2981914
109.61
1392800
00.00
4336287
.22
2986250
396.83
Mid -term
note II
1700000
000.00
2016.12.0
2
5 years
1700000
000.00
1689901
540.52
8500000
0.00
2443581
.52
1692345
122.04
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total -- -- --
5700000
000.00
5665126
090.52
2873689
13.18
9650034
.80
4395730
0.00
5630818
825.32
(3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Nil
Notes: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%.
39. Long-term payable
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 2644309592.95 3276308254.44
Total 2644309592.95 3276308254.44
(1) Long-term payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 4441492662.34 4935555693.56
Less：Unconfirmed financing costs 672823788.94 857567856.26
Less：Port due Within 1 year 1124359280.45 801679582.86
Other note
Note: Tunghsu Group Co. Ltd. provides a guarantee of RMB 1047092103.61 for financial lease Tunghsu
Group Co. Ltd. and Li Zhaoting provide a guarantee of RMB 732372469.64 for financial lease and Tunghsu
Group Co. Ltd. Li Zhaoting and Li Qing provide a guarantee of RMB 208000000.00 for financial lease; Yang
Jianzhong Hong Shuping You Shaoguo Li Yan Hu Yongsheng and Li Jun provide a guarantee of RMB
123276502.66 for the financial lease; The Company and Li Zhaoting provide a guarantee of RMB
110316039.24 for financial lease; Subsidiaries of the Company provide RMB 71830000.00 as security deposit
pledge for financing lease; The production lines and machinery and equipment of the subsidiaries of the Company
provide a mortgage of RMB 2148605547.19 for financing lease.
40. Long-term employee salary payable
41. Estimates liabilities
In RMB
Items Balance in year-end Balance in year-begin Rreason
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Lispendens 20944899.84 38543627.93
Product guarantee 78820850.20 117878085.38
Total 99765750.04 156421713.31 --
42.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 601213644.42 143338833.67 46218458.32 698334019.77
Less ：Government
subsidies due within
one year
-36478840.45 -2056946.72 -38535787.17
Not realized after
sale rental return
38763460.00 16348166.82 27555813.56 27555813.26
Less：Unrealized
customer service due
within 1 year rent to
profit or loss
-11207646.55 -11207646.55
Total 592290617.42 157630053.77 73774271.88 676146399.31 --
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
（Landrefund）
25438800.0
0
2244600.00
23194200.0
0
Related to
assets
Grant of
Industry
Revitalizatio
n and
Technology
Reconstructio
n Project
2644444.61 233333.28 2411111.33
Related to
assets
Technical
reconstructio
2666666.65 266666.68 2399999.97
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
n
Grant of
Glass
Substrate
Project
9999999.94 1000000.00 8999999.94
Related to
assets
Industry
Development
Fund
4666666.65 466666.68 4199999.97
Related to
assets
Project
finance
discount
313333.37 31333.32 282000.05
Related to
assets
Grant of
Industry
Revitalizatio
n and
Technology
Reconstructio
n n Project
71668666.7
1
6515333.32
65153333.3
9
Related to
assets
2013
Provincial
strategic
emerging
industries of
special grant
funds
4250000.04 333333.32 3916666.72
Related to
assets
Technology
reconstructio
n on Special
funds
28822333.3
2
2156000.00
26666333.3
2
Related to
assets
Investment
and Subsidiesof “DoubleHundredPlan” Project
granted by
the People's
Government
of Henan
Province
1783333.33 200000.00 1583333.33
Related to
assets
TFT glass
substrate
technology
89166.77 10000.00 79166.77
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
R& D fund
TFT glass
substrate
project
Subsidy
5944444.43 666666.67 5277777.76
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
8322222.23 933333.33 7388888.90
Related to
assets
TFT glass
substrate
project
Subsidy
11888888.9
1
1333333.33
10555555.5
8
Related to
assets
Subsidy
Major
Scientific and
Technical
Projects by
Finance
Bureau of
Zhengzhou
City
594444.43 66666.67 527777.76
Related to
assets
Financial
Supports for
National Key
Industry and
Technical
Transformati
on on
Projects
8322222.23 933333.33 7388888.90
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Granted by
the Municipal
Finance
Bureau
Economic
and
Technologica
l
Development
Zone Finance
Bureau
Industrial
Development
Support Fund
4161111.10 466666.67 3694444.43
Related to
assets
Funds for
Independent
Innovation of
Provincially
Supported
Enterprises
3566666.71 400000.00 3166666.71
Related to
assets
Supporting
Funds on
Finance
Discounts
1188888.91 133333.33 1055555.58
Related to
assets
Funds for
Education
Science and
Culture
Granted by
the Finance
Bureau
891666.71 100000.00 791666.71
Related to
assets
Supporting
Funds for
Industrial
Structure
-adjusting
Projects
Granted by
the Regional
Finance
Bureau
1742222.16 186666.67 1555555.49
Related to
assets
Industry 1004444.42 106666.67 897777.75 Related to
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
discount and
expenses
assets
Financial
discount
3194444.50 333333.33 2861111.17
Related to
assets
Industrial
restructuring
project
financial
funds
3493333.29 320000.00 3173333.29
Related to
assets
Special
Funds for
High-end
Information
Industry
Chain
Granted by
the Finance
Bureau of the
Economic
and
Technologica
l l
Development
Zone
3861111.09 333333.33 3527777.76
Related to
assets
2015 project
equipment
investment
subsidies
29981766.6
0
2291600.16
27690166.4
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 173333.39 2238888.69
Related to
assets
Project
subsidy of
1760000.00 1760000.00
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Chongqing
Liangjiang
New Area
Finance
Bureau
Equipment
subsidy of
Chongqing
Liangjiang
New Area
Finance
Bureau
880000.00 880000.00
Related to
assets
Investment in
the Central
Budget of
Strategic
emerging
Industries
25500000.0
0
2000000.00
23500000.0
0
Related to
assets
The high-tech
zone
appropriates
baseboard
projects
5866666.65 426666.68 5439999.97
Related to
assets
Production
line award
fund
19241899.3
7
1506943.40
17734955.9
7
Related to
assets
Special fund
for the
transformatio
n of scientific
and
technological
achievements
in 2015
6158080.51 635162.01 5522918.50
Related to
assets
G8.5tft-lcd
glass
substrate
manufacturin
g precision
intelligent
digital
workshop
45000000.0
0
3000000.00
42000000.0
0
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
construction
project
Investment in
the Central
Budget of
Strategic
emerging
Industries
3933333.41 799999.92 3133333.49
Related to
assets
2011Key
technical
transformatio
n project
funds
491666.70 99999.96 391666.74
Related to
assets
2011Strategic
emerging
industry
development
funds
565416.70 114999.96 450416.74
Related to
assets
2012Electron
ic
Information
Industry
Development
Assistance
Project
983333.30 200000.04 783333.26
Related to
assets
Subsidies
from the
Bureau of
Finance of
the Economic
and
technological
Development
Zone
9399999.99 800000.02 8599999.97
Related to
assets
2013Strategic
emerging
industry
funds
392777.78 33333.34 359444.44
Related to
assets
Mianyang
Municipal
Bureau of
Finance
236666.66 20000.02 216666.64
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Special funds
Glass
substrate
finishing
production
Transformati
on Project
548333.33 46666.67 501666.66
Related to
assets
Special fund
subsidy for
industrial
development
of municipal
financial
bureau
433888.86 36666.69 397222.17
Related to
assets
2013 fund of
strategic new
industry
3944444.44 333333.34 3611111.10
Related to
assets
Sichuan
Province
Industrial
Transformati
on and
upgrading
Project 2015
18608333.3
5
1449999.98
17158333.3
7
Related to
assets
Special funds
for Industrial
Development
in 2016
39852753.5
4
3202185.31
36650568.2
3
Related to
assets
Technical
Reformation
of key Green
Technology
for Glass
substrate
（840）
8400000.00 140000.00 8260000.00
Related to
assets
Intelligent
manufacturin
g pilot
demonstratio
n project
subsidy fund
（100）
1000000.00 66666.67 933333.33
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Group
transfer
subsidy
(National key
R & D
Program key
basic
Materials
Technology
Promotion
and
industrializati
on Project
2016)
915400.00 915400.00
Related to
assets
Intelligent
Manufacturin
g New Mode
Engineering
Project
3990000.00 3990000.00
Related to
assets
Annual
production of
10 million
square meters
high
aluminum
ultra-thin
display panel
glass items
4700000.00 4700000.00
Related to
assets
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 172000.00 2408000.00
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technical
Transformati
on of
Industrial
Enterprises in
Fuzhou and
supporting
subsidy funds
in Fuqing
City
1290000.00 86000.00 1204000.00
Related to
assets
2018
Industrial
Internet
Innovation
Development
Project and
Intelligent
Manufacturin
g Integrated
Standardizati
on and New
Model
Application
Project
Subsidy
45000000.0
0
1300578.03
43699421.9
7
Related to
assets
The
Development
Bureau of
Economic
and Trade
Development
of Wuhu
Economic
and
technological
Development
Zone in 2017
"Triple
creation"
high-end
equipment
and new
material
13417100.0
0
894473.18
12522626.8
2
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Glass
substrate
production
line
transformatio
n special
funds
30000000.0
0
30000000.0
0
Related to
assets
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 30699.72 823775.50
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
268
Qualification
acquisition
and factory
rental subsidy
45653100.0
0
45653100.0
0
Related to
assets
Special fund
for
automobile
development
114399.00 1800000.00 1914399.00
Related to
assets
Project
subsidy from
the Bureau of
Finance of
the Economic
Development
Zone
6966547.39 588957.03 6377590.36
Related to
assets
National key
R & D
Program key
basic
Materials
Technical
Project
subsidy
2280000.00 2280000.00
Related to
assets
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
2017 Special
Fund for
Industrial
Development
in Economic
Development
5000000.00 289855.07 4710144.93
Related to
assets
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Zone
Intelligent
factory
construction
and
application of
key materials
and
components
for curved
display
9350000.00 9350000.00
Related to
assets
Key new
product
projects
160000.04 39999.96 120000.08
Related to
assets
Financial
allocation for
Strategic
emerging
Industries in
Sichuan
Provinc
3366000.00 306000.00 3060000.00
Related to
assets
Technical
revamping
items of
300000
production
Line of
Pole-less
Lights Ballast
644999.92 86000.04 558999.88
Related to
assets
Intelligent
Engineering
Laboratory of
High
efficiency
Lighting
system
1783333.29 200000.04 1583333.25
Related to
assets
District level
technical
reform
project
subsidy 150
0.00 1500000.00 1500000.00
Related to
assets
The subsidy 1892899.93 5860.37 1887039.56 Related to
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
for the
construction
of the factory
building is
1892900
yuan
assets
Glass
substrate
project
subsidy fund
86971803.6
6
1316392.68
85655410.9
8
Related to
assets
Research and
development
project funds
159
2226000.00 2226000.00
Related d to
income
2017 loan
discount
4.871 million
1127484.71 1127484.71
Related d to
income
Science and
education
support fund
1787595.41 500000.00 2287595.41
Related d to
income
Subsidy for
post
stabilizatio
n
0.00 2833.74 2833.74
Related d to
income
Special funds
for scientific
research 40
400000.00 400000.00
Related d to
income
43.Other Non-current liabilities
In RMB
Items Balance in year-end Balance in year-begin
CDB financing 500000000.00
Yingkou coastal financing 108000000.00 108000000.00
Total 108000000.00 608000000.00
Other note：
Note 1: According to the investment contract signed between Tunghsu Group Co. Ltd. Tunghsu (Yingkou)
Optoelectronic Display Co. Ltd. and Yingkou Coastal Development and Construction Group Co. Ltd. Yingkou
Coastal Development and Construction Group Co. Ltd. has increased the capital of Tunghsu (Yingkou)
Optoelectronic Display Co. Ltd. with RMB 108 million. The Company undertakes all the rights and obligations
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
to be fulfilled by Tunghsu Group with the repurchase no more than RMB 108 million of investment principal of
Yingkou Coastal Development and Construction Group Co. Ltd. and the compensation obligation corresponding
to 1.2%/year investment income involved in total. before June 2024 the equity of Tunghsu Yingkou
corresponding to the registered capital of RMB 108 million will be transferred to the Company after the payment
of the investment principal of RMB 108 million and 1.2%/year investment income is completed.Note 2: According to the investment contract signed between Tunghsu Optoelectronic Technology Co. Ltd.Wuhu Tunghsu Optoelectronic Technology Co. Ltd. Fuzhou Tunghsu Investment Development Co. Ltd. and
China Development Bank Development Fund Co. Ltd. China Development Bank Development Fund Co. Ltd.
has increased the capital of Fuzhou Tunghsu Investment Development Co. Ltd. with RMB 50000.00 million and
enjoyed a fixed annual rate of return. Upon completion of the project Tunghsu Optoelectronic Technology Co.Ltd. will redeem the equity held by China Development Bank Development Fund Co. Ltd. in installments.Pursuant to the relevant agreement the Company redeemed the equity interest held by China Development Bank
Development Fund Co. Ltd. in December 2018.
44.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
Total shares
5730250118.
00
5730250118.
00
45. Other equity instruments
46. Capital reserves
In RMB
Items Year-beginning balance Increase in the current
period
Decrease in the current
period
Year-end balance
Share premium 21947720231.34 4475242.57 197484455.39 21754711018.52
Other capital reserves 31522375.26 31522375.26
Total 21979242606.60 4475242.57 197484455.39 21786233393.78
Other exlanation including changes and reasons for changes：
Changes in capital reserve: The merger of Tunghsu (Yingkou) Optoelectronic Display Co. Ltd. under the same
control in the current period results in a decrease of RMB 195525500.00 in capital reserve; the non-proportional
capital increase to Tunghsu (Kunshan) Display Material Co. Ltd. in the current period results in a decrease of
RMB558955.39 in capital reserve; the non-proportional capital increase to Chenzhou Xuhong Transportation
Construction Co. Ltd. the grandson company in the current period results in an increase of RMB 1881000.00 in
capital reserve; the non-proportional capital increase to Shenzhen Xinyingtong Technology Co. Ltd. the grandson
company in the current period results in a decrease of RMB 1400000.00 in capital reserve; the non-proportional
capital increase to Beijing Xujiang Technology Co. Ltd. the grandson company in the current period results in an
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
increase of RMB 1002082.92 in capital reserve; the disposal of Xuyou Electronic Material Technology (Wuxi)
Co. Ltd. a subsidiary in the current period results in an increase of RMB 1592159.65 in capital reserve.
47.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
48. 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
2.Other comprehensive income
reclassifiable to profit or loss in
subsequent periods
-4518.45 -42240.07 -24657.35 -17582.72
-29175.8
0
Balance form the translation of
foreign currency financial statements
-4518.45 -42240.07 -24657.35 -17582.72
-29175.8
0
Total of Other comprehensive income -4518.45 -42240.07 -24657.35 -17582.72
-29175.8
0
49. 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 38527044.56 27896634.42 12614331.35
Total 1983921.21 38527044.56 27896634.42 12614331.35
50. Surplus reserve
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Items Year-beginning balance Increase in the current
period
Decrease in the current
period
Year-end balance
Statutory surplus reserve 224133824.86 21373195.09 245507019.95
Total 224133824.86 21373195.09 245507019.95
51. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
beginning
3009860755.82 1823695278.31
Total adjustment of retained earnings at the
beginning of the year
-155097190.92
Retained earnings after adjustments at the year
end
3009860755.82 1668598087.39
Add: Net profit attributable to owners of the
Company for the period
2163607505.39 1730174564.57
Less: Appropriation to statutory surplus reserve 21373195.09 36089754.38
Common stock dividend payable 401117508.26 352822141.76
Retained earnings at the year end 4750977557.86 3009860755.82
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 -155097190.92
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
52. Business income Business cost
In RMB
Items
Amount of current period Amount of previous period
Income Cost Income Cost
Main business 27532911433.28 22666699476.31 17245606616.24 13644514366.81
Other business 678788587.84 537379316.07 31362422.79 29973279.43
Total 28211700021.12 23204078792.38 17276969039.03 13674487646.24
53. Business tax and subjoin
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 33810482.30 25979433.14
Education surcharge 23159424.99 17674597.83
Property tax 16876028.18 12698590.04
Land use tax 21346497.10 21300624.63
vehicle and vessel usage tax 132583.31 32274.84
Stamp tax 13856742.20 12325654.26
Land VAT 124554237.34
Other 3747803.74 4059111.33
Total 237483799.16 94070286.07
Other note：
54.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare insurance 92273371.89 58561217.08
Shipment 90294560.21 63453918.97
Travel 20406607.49 8645322.33
Business expenses 25334960.74 8067708.92
Quality inspection certification fee 355243.12 400656.64
Consultancy services 23399717.86 10178128.46
car expenses 22148062.40 6054493.14
Low value consumables and repairs 4482483.49 970196.52
Office fee 5349463.64 4311147.89
Depreciation 1264353.73 837982.02
Advertising 10333401.71 6800911.81
Product sales guarantee fee 32639764.21 27469125.70
Other 6194311.02 13409374.25
Total 334476301.51 209160183.73
55. Administrative expenses
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Items Amount of current period Amount of previous period
Wage and additional cost 288091860.23 180518516.88
Business expenses 16030918.90 6808507.59
Labor protect fee 2722389.79 1944101.86
Office fees 25841772.52 25043067.11
Travel fees 17009388.53 9719098.91
Publicize Fees 8345441.30 7383473.36
Miscellaneous charges 8035086.41 1946988.14
Depreciation accumulative 144145302.18 62962111.58
Low value consumables and repair costs 24488949.88 10288171.00
Consultation fees 53847915.52 51079357.72
Miscellaneous charges 45502177.92 26010092.75
Equity incentive cost -3685060.00
Other 19418074.40 13106583.04
Total 653479277.58 393125009.94
Other note：
Note: The increase in 2018 compared with 2017 is mainly due to the increases in labor and depreciation.In RMB
Items Amount of current period Amount of previous period
Labor cost 204666344.41 84414093.62
Material expenses 220667309.89 109611282.99
Test inspection fee 86313301.06 28773748.12
Hydropower and gas charge 14396778.76 13647405.72
Depreciation expenses 23882733.08 12320763.99
Amortization of Intangible assets 4322047.03 1256897.08
Other 17841120.07 6967364.39
Total 572089634.30 256991555.91
57. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 1204287050.60 1142316421.06
Less：Interest income 506083846.24 442489241.64
Exchange gains and losses -23199230.78 18458150.08
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Commission charge 21943537.39 5619616.01
Note discount rate 7137552.53 14514160.04
Financing 18000000.00 14509424.87
Other 610110.16 1048970.03
Total 722695173.66 753977500.45
58. Asset impairment loss
In RMB
Items Amount of current period Amount of previous period
I. Bad debt loss 54879882.12 45785385.37
II. Losses for falling price of inventory 28437407.36 9198134.09
XIII.Goodwill impairment loss 10163443.61
Total 93480733.09 54983519.46
Other note
Note: The increase in 2018 compared with 2017 is mainly due to the increase in inventory depreciation loss and
goodwill impairment loss.
59.Other gains
In RMB
Items Amount of this period Amount of last period
Government subsidy 250713869.96 352095131.45
Personal income tax fee 590083.12
Total 251303953.08 352095131.45
60. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
method
64366051.65 4663254.00
Disposal of investment income from long-term
equity investments
1935149.59
Financing income 14623990.55 59041599.98
Total 80925191.79 63704853.98
Other note
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Investment income from disposal of long-term equity investment: The investment income generated by the
disposal of Xuyou Electronic Material Technology (Wuxi) Co. Ltd. a subsidiary is RMB 3182206.12. The
investment income generated by the current liquidation of the partnership of Tunghsu (Deyang) Graphene
Industrial Development Fund the joint venture is RMB -1195383.73. The investment income generated after
the grandson disposes of the current liquidation of Tunghsu Technology Co. Ltd. is RMB -51672.80.
61. Fair value change income
62. Assets disposal income
In RMB
Source Amount of current period Amount of previous period
Non-current assets disposal gains and
losses
1515607.51
Including：Income from disposal of fixed
assets
1515607.51
Total 1515607.51
63. 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
Government Subsidy 203256.52 1646890.81 203256.52
Unpayable amount 1100000.00 1100000.00
Net fine income 200053.96 200053.96
Insurance premium 10799394.15 10799394.15
Other 6760566.13 1922171.57 6760566.13
Total 19063270.76 3569062.38 19063270.76
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
Whether
special
subsidies
Amount of
current
period
Amount of
previous
period
Assets-relate
d/income
–related
Housing Finance Subsidy Grants No No 1546890.81 Related to
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
maintenance
subsidies
bureau of
suqian
economic and
technological
development
zone
obtained due
to the country
encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
income
Land tax
return
Coastal
industry base
Subsidy
Grants
obtained due
to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
No No 100000.00
Related to
income
Research
funds
China
Building
Materials
Design
Institute
Subsidy
Grants
obtained due
to research
and
development
technical
renovation
and
transformatio
n etc.No No 153262.52
Related to
income稳岗补贴
Social
security
bureau
Subsidy
A subsidy
obtained due
to
undertaking
the state’s
safeguarding
for protection
for a certain
utility or
No No 29994.00
Related to
income
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
socially
necessary
product
supply or
price control
function.Tax
incentives
Tax bureau Award
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 20000.00
Related to
income
Total 203256.52 1646890.81
64.Non-Operation expense
In RMB
Items
Amount of current period Amount of previous period The amount of non-operating
gains & lossed
Donation expense 2764006.00 695000.00 2764006.00
Penalty 2526929.14 753616.36 2526929.14
Non current assets disposal loss 1660746.89 65061.78 1660746.89
Other 1941022.97 895094.66 1941022.97
Total 8892705.00 2408772.80 8892705.00
65. Income tax
(1) Details of income tax
In RMB
Items Amount of current period Amount of previous period
Current Income tax 486169741.93 419418513.13
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Deferred income tax -17166200.53 -83183922.77
Total 469003541.40 336234590.36
（2）Accounting profit and tax expense adjustment process
InRMB
Items Amount of current period
Total profit 2737831627.58
Income tax expense at statutory / applicable tax rates 410674744.19
Effect of different tax rates applicable to subsidiaries 53321675.38
Effect of non-taxable income -5732239.03
The influence of R & D expenses deduction -14980132.99
Effect of non-taxable income 24827760.53
Affect the use of deferred tax assets early unconfirmed
deductible losses
-320369.80
The current period does not affect the deferred tax assets
recognized deductible temporary differences or deductible loss
17547779.09
Tax preferences -41462810.37
Changes in tax rate resulting in changes in the balance of
deferred income tax assets/liabilities at the beginning of the
period
25127134.40
Income tax expense 469003541.40
66 .Other comprehensive income
Refer to section XI Notes VII 485 for details.
67.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 72580223.31 140642106.05
Government subsidy 285674986.53 182198655.37
Deposits income 341556036.47 898714597.84
Advances fund 95881327.96 128508839.16
Withholding VAT refund 244105762.29
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Personal official loans 49113531.62 42487900.06
Collection of funds 12042902.50
Insurance claims 9121325.00
Other 2674019.34 1232168.84
Total 1112750115.02 1393784267.32
(2)Other cash paid related to operation activities
In RMB
Items Amount of current period Amount of previous period
Donation expenses 3003932.05 164100.97
Petty cash 37390022.00 39765728.35
Deposit 384336174.24 1032128416.85
Period expenses paid in cash 572602133.37 365453243.31
Total 997332261.66 1437511489.48
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Investment 200000000.00 50000000.00
Cash and cash equivalents of the
subsidiary on the date of acquisition after
deducting the monetary investments paid
for the acquisition
51681062.80
Fixed deposit 1402500000.00
Current account 463061030.00 9004080.00
Total 2065561030.00 110685142.80
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Short-term Financing 113658549.30 9940000000.00
Fixed deposit 3751750000.00 1352500000.00
Investment 200000000.00 50000000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Current account 449402614.89 29503800.00
Total 4514811164.19 11372003800.00
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
Interest income 426148446.55 252390350.30
Finance lease 533750000.00 2502800000.00
Factoring financing 27199088.88 100000000.00
Fixed deposit 157000000.00
Current account 481240420.45 3224325632.86
Total 1625337955.88 6079515983.16
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Bank charges 37017570.05 39217775.67
Finance lease deposit 47666666.66
Factoring financing 17199088.88
Finance lease 984205977.49 693258375.43
Acquisition of minority equity payments 571040000.00
Sunlong No private funds 31979671.29
Current account 856657166.48 2476041407.56
Total 2448920714.02 3305362985.49
68. 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
2268828086.18 1920899021.88
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Add: Impairment loss provision of assets
93480733.09 54983519.46
Depreciation of fixed assets oil and gas
assets and consumable biological assets
858753519.46
1003010229.32
Amortization of intangible assets 88543387.92 29493603.50
Amortization of long-term deferred expenses 8479266.12 10640874.16
Loss on disposals of fixed assets intangible
assets and other long-term assets ("-" for
gains)
-1515607.51
Loss on write-off of fixed assets 1660746.89 65061.78
Financial cost 823755233.08 882333791.42
Investment losses -80925191.79 -63704853.98
Decrease in deferred income tax assets -6306027.61 -81706028.32
Increased in deferred income tax liabilities -10860172.92 -1477894.45
Decrease in inventories 799334364.53 -701656101.00
Decease in operating receivables -10076576343.39 -2798458529.59
Increase in operating payables 5621600010.47 998755817.13
Cash flows from operating activities 388252004.52 1253178511.31
2.Significant investment and financing
activities not affecting cash flows
-- --
Fixed assets acquired under financial leasing 525209012.42 3234833741.02
3．Changes in cash and cash equivalents： -- --
Ending balance of cash 14916637291.04 25114660756.25
Less: Beginning balance of cash 25114660756.25 25538252528.80
Net increase of cash and cash equivalents -10198023465.21 -423591772.55
(2) Cash paid for acquiring subsidiaries and other business units
In RMB
Items Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
in the Current Period Paid in the Current Period
313924083.50
Including： --
Shenzhen Sanbao Innovation Intelligence Co. Ltd. 33598587.50
Zhongcheng National construction co. Ltd. 39999996.00
Huaxi Nanchong Automobile Co. Ltd. 44800000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu（Yingkou）Optoelectronic Display Co. Ltd. 195525500.00
Less：Cash or Cash Equivalent Owned by Subsidiary on the
Purchasing Date
4930677.33
Including： --
Shenzhen Sanbao Innovation Intelligence Co. Ltd. 3075645.81
Zhongcheng National construction co. Ltd. 1854947.92
Huaxi Nanchong Automobile Co. Ltd. 83.60
Tunghsu（Yingkou）Optoelectronic Display Co. Ltd.
Add： Cash or cash equivalents paid in the current period for
business combinations in the previous period
83689833.67
Including： --
Shijiazhuang Xuxin Optoelectronic Technology Co. Ltd. 17670558.47
Jiangsu Tengda Optics Technology Co. Ltd. 20019275.20
Changzhou Hongsheng Public Transportation Construction
Development Co. Ltd.
8000000.00
Guangxi Sunlong Automobile Co. Ltd. 38000000.00
Obtain the net cash paid by the subsidiary 392683239.84
(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
550103761.40
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co. Ltd. 550000000.00
Tunghsu Technology Co. Ltd. 103761.40
Less：Cash and cash equivalents held by a controlling subsidiary 157924147.90
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co. Ltd. 157924147.90
Tunghsu Technology Co. Ltd.Including： --
Net cash received from disposal subsidiaries 392179613.50
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-beginning
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
I. Cash
14916637291.04 25114660756.25
Including: cash in treasury
2593055.78 2461658.94
Bank savings could be used at any time 14914044235.26 24971467452.68
Other monetary capital could be used at any
time
140731644.63
III. Balance of cash and cash equivalents at
the period end
14916637291.04 25114660756.25
69. 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.:
70. The assets with the ownership or use right restricted
In RMB
Items Closing book value Causation of limitation
Monetary funds 4890457106.12 Mainly term deposits and deposits
Inventory 317769074.78 Mortgage loans
Fixed assets 9130840228.68
Set up the mortgage and the fixed assets of
the financial lease
Intangible assets 352121698.93 Pledge loans
Construction in progress 3143663638.12 Pledge loans
Investment property 678833230.08 Pledge loans
Account receivable 455136717.34 Factoring financing
Total 18968821694.05 --
71. 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 6526979.25 6.8632 44795960.10
Euro 6016.60 7.8473 47214.06
HKD 10379.45 0.8762 9094.97
JPY 563299791.60 0.0619 34860934.19
Account receivable -- --
Including：USD 53519866.68 6.8632 367317549.01
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Euro 1490.00 7.8473 11692.48
HKD 23697714.31 0.8762 20763937.29
JPY 981801683.00 0.0619 60760760.76
Long-term loans -- --
Including：USD 5000000.00 6.8632 34316000.00
Euro
HKD
Notes payable
Including：USD 5015000.00 6.8632 34418948.00
Interest payable
Including：USD 170737.09 6.86 1171802.79
Short-term loans
Including：USD 8407370.00 6.8632 57701461.78
Account payable
Including：USD 75451654.63 6.8632 517839796.09
Euro 2680492.77 7.8473 21034630.92
HKD 28442325.26 0.8762 24921165.40
JPY 234698455.00 0.0619 14521991.37
GBP 1230210.14 8.6762 10673549.18
(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
72. Hedging
Disclosure of hedging items and related hedging instruments qualitative and quantitative information on hedged
risks in accordance with the hedging category:
73.Govemment subsidy
1）Government subsidies confirmed in current period
In RMB
Type Amount Items
Amount included in current
profit or loss
Project subsidy of Chongqing
Liangjiang New Area Finance
1760000.00 Deferred income
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Bureau
Equipment subsidy of
Chongqing Liangjiang New
Area Finance Bureau
880000.00 Deferred income
Project subsidy for industrial
internet innovation
development project and
integrated standardization and
new mode application of
intelligent manufacturing in
2018
45000000.00 Deferred income
Special fund for glass substrate
production line transformation
30000000.00 Deferred income
Subsidy for qualification
acquisition and plant rental
45653100.00 Deferred income
Special fund for automobile
development
1800000.00 Deferred income
Special fund for industrial
development in Economic
Development Zone in 2017
5000000.00 Deferred income
Intelligent factory construction
and application project of key
materials and components for
curved display
9350000.00 Deferred income
Subsidy for district-level
technical transformation
projects150
1500000.00 Deferred income
Subsidy for plant construction:
RMB 1892900
1892899.93 Deferred income
Science and education support
fund
500000.00 Deferred income
Subsidy for post stabilization 2833.74 Deferred income
Special fund for scientific and
technological achievement
transformation in 2015
635162.01 Other income 635162.01
1.9 Receive Jinshan Talent
subsidy fund
500000.00 Other income 500000.00
3.12 CCB receives the science
and technology innovation
award of the Science and
100000.00 Other income 100000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology Bureau
3.1 Receive the award for
promoting industrial towns in
2017
80000.00 Other income 80000.00
3.16 CCB receives the first
batch of patent funds from the
Science and Technology Bureau
in 2018
15000.00 Other income 15000.00
2017 provincial intellectual
property management system
performance evaluation award
10000.00 Other income 10000.00
4.8 CCB receives the incentive
funds for outsourcing
implementation from the
Finance Bureau
50000.00 Other income 50000.00
5.31 CCB receives the reward
funds for the implementation of
the enterprise standards
10000.00 Other income 10000.00
The second batch of patent
special funds in 2018
6000.00 Other income 6000.00
5.31 CCB receives reward
funds for academician
workstation
100000.00 Other income 100000.00
Subsidy for "Double-hundred
Plans" project investment of
Henan Provincial People's
Government
200000.00 Other income 200000.00
Budget for complete set of
technology research and
development of TFT glass
substrate
10000.00 Other income 10000.00
Subsidy for TFT glass substrate
project
666666.67 Other income 666666.67
Subsidy for technology
transformation project
investment within budget of
National Development and
Reform Commission and
Ministry of Industry and
Information Technology
933333.33 Other income 933333.33
Subsidy for TFT glass substrate 1333333.33 Other income 1333333.33
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
project.Special fund for major science
and technology of Zhengzhou
Municipal Finance Bureau
66666.67 Other income 66666.67
Fund for national key industries
and technical transformation
project support of Municipal
Finance Bureau
933333.33 Other income 933333.33
Fund for industrial development
support of Economic and
Technological Development
Zone Finance Bureau
466666.67 Other income 466666.67
Fund for provincial supporting
independent innovation of
enterprises
400000.00 Other income 400000.00
Fund for financial discount
support
133333.33 Other income 133333.33
UNESCO fund of Finance
Bureau
100000.00 Other income 100000.00
Supporting fund for industrial
restructuring projects of District
Finance Bureau
186666.67 Other income 186666.67
Industrial interest discount and
budget
106666.67 Other income 106666.67
Financial discount of
state-owned assets holding
operation limited company in
Henan Province
333333.33 Other income 333333.33
The first batch of financial
funds for industrial
restructuring projects in 2013
320000.00 Other income 320000.00
Special fund for high-end
information industry chain of
Economic and Technological
Development Zone Finance
Bureau
333333.33 Other income 333333.33
Subsidy fund for investment in
project equipment in 2015
2291600.16 Other income 2291600.16
The second batch of funds for
accepted provincial industrial
173333.39 Other income 173333.39
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
adjustment projects in 2011 and
2012 of Zhengzhou Municipal
Finance Bureau
Occupational injury prevention
fee of Zhengzhou Municipal
Social Security Bureau in
January
30000.00 Other income 30000.00
Unemployment insurance and
post stabilization subsidy of
Zhengzhou Municipal Social
Security Bureau
215600.00 Other income 215600.00
College student probation
subsidy of Zhengzhou
Municipal Finance Bureau
246000.00 Other income 246000.00
Special subsidy for Zhengzhou
opening-up in 2017
200000.00 Other income 200000.00
Patent subsidy of Zhengzhou
Economic and Technological
Development Zone
Administrative Committee
14400.00 Other income 14400.00
Patent subsidy of Zhengzhou
Economic and Technological
Development Zone
Administrative Committee
22800.00 Other income 22800.00
Subsidy funds after R&D
expenses in 2017
2000000.00 Other income 2000000.00
Corporate licensed patent
funding in 2017
46400.00 Other income 46400.00
Service charge for returning
three generations
8816.64 Other income 8816.64
Subsidy for post stabilization 10553.00 Other income 10553.00
New subsidy for specialization 250000.00 Other income 250000.00
Subsidy for post stabilization 17946.00 Other income 17946.00
Enterprise Technology
Innovation Project -
Engineering Technology
Research Center
50000.00 Other income 50000.00
Industrial transformation and
upgrading support
50000.00 Other income 50000.00
Accelerate the transformation 30000.00 Other income 30000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
and upgrading of enterprises to
improve quality and efficiency
support
Investment in strategic
emerging industry projects
within the budget of the central
government
799999.92 Other income 799999.92
Fund for municipal key
technological transformation
projects in 2011
99999.96 Other income 99999.96
Fund for strategic emerging
industry development
promotion in 2011
114999.96 Other income 114999.96
Projects supported by the
electronic information industry
development fund in 2012
200000.04 Other income 200000.04
Subsidy of Economic and
Technological Development
Zone Finance Bureau
800000.02 Other income 800000.02
Glass substrate finishing
achievement transformation
project
46666.67 Other income 46666.67
Industrial transformation and
upgrading projects in Sichuan
Province in 2015
1449999.98 Other income 1449999.98
Fund for strategic emerging
industries in 2013
33333.34 Other income 33333.34
Special fund of Mianyang
Municipal Finance Bureau
20000.02 Other income 20000.02
Special fund subsidy for
industrial development of
Municipal Finance Bureau
36666.69 Other income 36666.69
Funds allocated by the
Economic Development Zone
Government on behalf of the
Provincial Finance Department
for strategic emerging industries
in 2013
333333.34 Other income 333333.34
Special fund for industrial
development in Economic
Development Zone in 2016
3202185.31 Other income 3202185.31
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Subsidy for project of
Economic Development Zone
Finance Bureau
588957.03 Other income 588957.03
Special fund for industrial
development in Economic
Development Zone in 2017
289855.07 Other income 289855.07
(Municipal supporting) funds
for talent introduction project
200000.00 Other income 200000.00
Major innovative products 1000000.00 Other income 1000000.00
Encourage technological
transformation of enterprises in
2017
500000.00 Other income 500000.00
First batch of patent subsidies in
2018
16000.00 Other income 16000.00
Provincial patent subsidy fund 8400.00 Other income 8400.00
Additional expenditure for the
talent introduction in 2017
120000.00 Other income 120000.00
Provincial patent award in 2017 150000.00 Other income 150000.00
Patent subsidy 21260.00 Other income 21260.00
Provincial intellectual property
project (high strength glass
version conversion project) in
2018
200000.00 Other income 200000.00
National project of talent and
expert introduction in 2018
500000.00 Other income 500000.00
Group transfer payment subsidy
(key basic materials technology
upgrading and industrialization
special project of the state key
research and development plan
in 2016)
91540.00 Other income 91540.00
Enterprise recruitment subsidy 3000.00 Other income 3000.00
First batch of provincial
intellectual property funds in
2018
50000.00 Other income 50000.00
Fund subsidy for civil-military
integration
20000.00 Other income 20000.00
Subsidy for technological
transformation and innovation
80000.00 Other income 80000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
achievements in 2017
Subsidy for enterprise post
stability in 2018
60561.00 Other income 60561.00
Promote benefit up the step:
enterprises with warehousing
taxes breaking through RMB 20
million
105000.00 Other income 105000.00
Land tax refund for coastal
industrial bases
500000.00 Other income 500000.00
Patent subsidy of Yingkou
Science and Technology Bureau
17100.00 Other income 17100.00
Subsidy fund for glass substrate
project
1316392.68 Other income 1316392.68
Patent subsidy 5000.00 Other income 5000.00
Tax refund 63490000.00 Other income 63490000.00
Provincial science and
technology award in 2018
60000.00 Other income 60000.00
Subsidy for construction of
demonstration activity room of
party committee
200000.00 Other income 200000.00
Municipal science and
technology plan project fund of
Wuhu Science And Technology
Bureau
210000.00 Other income 210000.00
The third batch of "5111"
industrial team support funds of
Wuhu Municipal CPC
Committee Organization
Department
100000.00 Other income 100000.00
Technical standard award of
Wuhu Economic and
Technological Development
Zone Finance Bureau
30000.00 Other income 30000.00
Trademark registration award of
Wuhu Economic and
Technological Development
Zone Finance Bureau
600.00 Other income 600.00
Provincial culture
demonstration enterprise funds
of Wuhu Economic and
10000.00 Other income 10000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technological Development
Zone Finance Bureau
Strategic emerging industries
talent support of Wuhu Human
Resources and Social Security
Bureau
100000.00 Other income 100000.00
Independent innovation subsidy
of Wuhu Economic
Development Zone Finance
Bureau
400000.00 Other income 400000.00
Independent innovation award
of Wuhu Economic and
Technological Development
Zone Finance Bureau
200000.00 Other income 200000.00
Independent innovation policy -
patent award of Wuhu
Economic and Technological
Development Zone Finance
Bureau
106250.00 Other income 106250.00
Government subsidy 240000.00 Other income 240000.00
Post stability subsidy of
development zone in 2018 of
Wuhu Social Insurance Center
219999.00 Other income 219999.00
Training and identification
subsidy of Wuhu Economic and
Technological Development
Zone Finance Bureau
126000.00 Other income 126000.00
Industrial transformation and
upgrading funds of Finance
Division of Ministry of Industry
and Information Technology
6742100.00 Other income 6742100.00
Construction funds for building
strong province in 2018 of
Wuhu Economic and
Technological Development
Zone Finance Bureau
3000000.00 Other income 3000000.00
Provincial foreign trade subsidy
of Wuhu Economic and
Technological Development
Zone Finance Bureau
189300.00 Other income 189300.00
Subsidy for infrastructure (land 2244600.00 Other income 2244600.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
refund)
Industrial revitalization and
technological transformation
projects
233333.28 Other income 233333.28“Subsidy for "Three Majors andOne Innovation" emerging
industries
894473.18 Other income 894473.18
Technical modifications 266666.68 Other income 266666.68
Subsidy fund for glass substrate
project
1000000.00 Other income 1000000.00
Industrial development fund 466666.68 Other income 466666.68
Financial discount of project 31333.32 Other income 31333.32
Subsidy for industrial
revitalization and technological
transformation projects
6515333.32 Other income 6515333.32
Special fund subsidy for
provincial strategic emerging
industries
333333.32 Other income 333333.32
Special fund for technological
transformation
2156000.00 Other income 2156000.00
Fund for strategic emerging
industry development projects
2000000.00 Other income 2000000.00
Funds allocated by High-tech
Zone for substrate projects
426666.68 Other income 426666.68
Reward fund for production line 1506943.40 Other income 1506943.40
Green key technological
transformation of glass
substrate (840)
140000.00 Other income 140000.00
Subsidy fund for intelligent
manufacturing pilot
demonstration project (100)
66666.67 Other income 66666.67
Fund for CSCEC International
Project 159
2226000.00 Other income 2226000.00
Special fund for scientific
research 40
400000.00 Other income 400000.00
Project fund subsidy 6824000.00 Other income 6824000.00
Municipal patent application
funds in 2018
500.00 Other income 500.00
Subsidies for input-output 1400.00 Other income 1400.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
surveyors in Statistical Bureau
Receive the bonus for new flat
panel display glass substrate
technology achievement
transformation and
industrialization
80000.00 Other income 80000.00
Seagull Plan 999980.01 Other income 999980.01
Funds for technological
innovation projects of key
industries in Kunshan in 2018
89000.00 Other income 89000.00
Key industry projects of
Science and Technology Bureau
200000.00 Other income 200000.00
Receive patent subsidy of
Shanghai Intellectual Property
Office
7232.00 Other income 7232.00
Subsidy for additional training
in education
34464.00 Other income 34464.00
Subsidy for education costs
with additional training of
Human Resources and Social
Security Bureau
101616.00 Other income 101616.00
Receive subsidy for VOC
governance of Shanghai
Minhang District
Environmental Protection
Bureau
110000.00 Other income 110000.00
Acceptance balance of key
projects of zhangjiang special
fund
500000.00 Other income 500000.00
Acceptance funds for science
and technology projects
40000.00 Other income 40000.00
Acceptance balance of key
projects of Zhangjiang special
fund
500000.00 Other income 500000.00
The fourth batch of domestic
intellectual property funds
17800.00 Other income 17800.00
Reward for plant construction 30699.72 Other income 30699.72
Budget subsidy for science and
technology projects
300000.00 Other income 300000.00
Subsidy for enterprise post 74146.00 Other income 74146.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
stability
Recommended catalogue
subsidy
63000000.00 Other income 63000000.00
Steady growth subsidy 1000000.00 Other income 1000000.00
Hi-tech subsidy 100000.00 Other income 100000.00
Subsidy for project R&D of
Technology Center
200000.00 Other income 200000.00
Probation subsidy 3600.00 Other income 3600.00
Reward fund for science and
technology award
100000.00 Other income 100000.00
Down payment for planned
projects
210000.00 Other income 210000.00
Patent budget subsidy of
Nanxun District Science and
Technology Bureau
16800.00 Other income 16800.00
Special budget subsidy of
Nanxun District Science and
Technology Bureau
50000.00 Other income 50000.00
Special budget subsidy of
Huzhou Finance Bureau
100000.00 Other income 100000.00
Subsidy for talent development
in Nanxun District
1000000.00 Other income 1000000.00
Tax incentive 50000.00 Other income 50000.00
Subsidy for post stabilization 5376.32 Other income 5376.32
The second quarter growth
support of Enterprise Service
Center
300000.00 Other income 300000.00
New warehousing support of
modern service industry
100000.00 Other income 100000.00
The third quarter growth
support of Service Center
100000.00 Other income 100000.00
Talent subsidy 31500.00 Other income 31500.00
Integrated standardization
project of intelligent
manufacturing in 2016
2550000.00 Other income 2550000.00
Subsidy allocated by industrial
development for building strong
province
4620000.00 Other income 4620000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Integrated standardization
project of intelligent
manufacturing in 2016
3990000.00 Other income 3990000.00
Provincial key R&D project
funds in 2017
900000.00 Other income 900000.00
VAT refund in 2017 1590000.00 Other income 1590000.00
Provincial technology
enterprises warehousing award
in 2017 of Suqian Development
Zone Finance Bureau
123300.00 Other income 123300.00
Provincial financial funds for
research and development
expenses in 2017 of Suqian
Development Zone Finance
Bureau
203100.00 Other income 203100.00
Provincial innovation coupon
cashout fund in 2016 of Suqian
Development Zone Finance
Bureau
150000.00 Other income 150000.00
special bonus for municipal
industry introducing science
and technology innovation in
2017 of Suqian Development
Zone Finance Bureau
150000.00 Other income 150000.00
One-off award for talent
introduction in Suqian City in
2017
10000.00 Other income 10000.00
Municipal patent subsidy in
Suqian City in 2017
20500.00 Other income 20500.00
Subsidy fund for technological
transformation of industrial
enterprises in Fuzhou City
172000.00 Other income 172000.00
Fuqing supporting subsidy for
technological transformation of
industrial enterprises in Fuzhou
City
86000.00 Other income 86000.00
G8.5 TFT-LCD glass substrate
precision intelligent
manufacturing digital workshop
construction project
3000000.00 Other income 3000000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Project subsidy for industrial
internet innovation
development project and
integrated standardization and
new mode application of
intelligent manufacturing in
2018
1300578.03 Other income 1300578.03
Special fund for utilization of
foreign capital in 2017
300000.00 Other income 300000.00
Award for increasing
production and efficiency in the
first quarter of 2018
343000.00 Other income 343000.00
Award for city-wide industrial
steady growth increased
production and efficiency in
2017
610000.00 Other income 610000.00
Award for policy upgrading
scale industrial enterprises in
2017
200000.00 Other income 200000.00
New material insurance subsidy 2922323.47 Other income 2922323.47
Award for increasing
production and efficiency
71500.00 Other income 71500.00
Urban bus subsidy of Municipal
Finance Bureau
1508400.00 Other income 1508400.00
Key new product projects 39999.96 Other income 39999.96
Financial fund for strategic
emerging industries in Sichuan
Province
306000.00 Other income 306000.00
Technical transformation
project of 300000 sets of
electrodeless lamp ballast
production line
86000.04 Other income 86000.04
Intelligent Engineering
Laboratory of High Efficiency
Lighting System
200000.04 Other income 200000.04
First batch of science and
technology plans in 2018 (key
new products of the province)
300000.00 Other income 300000.00
District science and technology
plan
20000.00 Other income 20000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Interest subsidy for working
capital loans
210000.00 Other income 210000.00
Industrial enterprise support 400000.00 Other income 400000.00
Dynamic monitoring of
unemployment
1200.00 Other income 1200.00
Government subsidy for post
stability
47132.90 Other income 47132.90
Reward and subsidy for
enterprise operation (tax refund)
14424000.00 Other income 14424000.00
Employment subsidy 16800.00 Other income 16800.00
Special support project fund for
safety production
50000.00 Other income 50000.00
Subsidy fund for sales income 6924000.00 Other income 6924000.00
Post-subsidy bonus for
high-tech enterprises
50000.00 Other income 50000.00
Subsidy for booth fee of China
Industrial Expo
50000.00 Other income 50000.00
Subsidy fund for Health
Literacy Promotion Action in
2018
10000.00 Other income 10000.00
Subsidy of Family Planning
Bureau
10000.00 Other income 10000.00
Bonus for automobile in the
consumption month
2392000.00 Other income 2392000.00
Budget for emergency
management standardization
construction demonstration site
10000.00 Other income 10000.00
Subsidy fund for supporting key
industries
200000.00 Other income 200000.00
Subsidy for plant construction:
RMB 1892900
5860.37 Other income 5860.37
Subsidy for statistical primary
construction
2000.00 Other income 2000.00
Special advanced
manufacturing industry
development project in
Minhang District in 2018
535000.00 Other income 535000.00
Small and medium-sized
enterprise technology
120000.00 Other income 120000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
innovation plan project in
Minhang District
Shanghai technology-based
small and medium-sized
enterprise technology
innovation fund project
200000.00 Other income 200000.00
Science and technology award 5600.00 Other income 5600.00
Feasibility study budget 153262.52 Non- operating income 153262.52
Subsidy for post stabilization 29994.00 Non- operating income 29994.00
Tax incentive 20000.00 Non- operating income 20000.00
（2）Government subsidy return
□ Applicable √Not applicable
74. Other
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in 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
157598587.
00
67.00%
Merger of
non-identical
controlled
enterprises
May 302018
Acquisition
of controlled
7659108.35
-12733040.1
3
Zhongcheng
National
construction
co. Ltd.March
302018
140000000.
00
70.00%
Merger of
non-identical
controlled
enterprises
March
302018
Acquisition
of controlled
-7172706.59
Huaxi Bus
Co. Ltd.
April 42018
56000000.0
0
100.00%
Merger of
non-identical
controlled
April 42018
Acquisition
of controlled
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
enterprises
Other note：
（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 157598587.50 39999996.00 44800000.00
Contingent fair value 100000004.00
Other 11200000.00
Consolidation Cost 157598587.50 140000000.00 56000000.00
Less：Reduction: Obtained
Definable Net Assets Fair
Proportion
88710182.00 6730432.38 83.60
Goodwill/ The Consolidation
Cost is Less Than the Obtained
Definable Net Assets Fair
Proportion
68888405.50 133269567.62 55999916.40
(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
Cash and bank
balances
127075645.81 127075645.81 1854947.92 1854947.92 83.60 83.60
Account
receivable
203360.00 203360.00
Inventory 26320943.47 18724138.92
Fixed assets 11205970.95 9391876.78 41040.82 44833.14
Intangible asset 53241307.46 53849371.07 14204413.89
Prepayments 318723.00 318723.00 284956.45 284956.45
Other receivable 5297.05 5297.05 171120.78 171120.78
Other current
assets
7989608.01 7989608.01 28559.54 28559.54
Deferred Income
tax assets
154125.90 2110.00 948.08
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Account payable 4200.00 4200.00
Deferred Income
tax Liabilities
2352724.68 3551103.47
Advance
Payments
410909.49 410909.49
Employees’ wage
payable
59926.94 59926.94 1261899.22 1261899.22
Tax payable 7677.39 7677.39
Other account
payable
91280486.44 91280486.44 2153881.38 2153881.38
Net assets 132403256.71 125801130.38 9614903.41 -1035562.77 83.60 83.60
Less：Minority
equity
43693074.71 41514373.03 2884471.03 -310668.83
Acquire net assets 88710182.00 84286757.35 6730432.38 -724893.94 83.60 83.60
(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
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
of the year to
the date of
the merger
Net profit of
the combined
party from
the beginning
of the year to
the date of
the merger
Income of the
merged party
during the
comparison
period
Net profit of
the combined
party during
the period of
comparison
Tunghsu（Yingkou）
Optoelectroni
c Display
Co. Ltd.
65.00%
Same parent
company
June 302018
Pay
consideration
control
operation
27289664.9
9
-11435425.3
3
16069429.2
1
-13043965.2
2
（2） Consolidation Cost
In RMB
Consolidation Cost Tunghsu(Yingkou)Optoelectronic Display Co. Ltd.
--Cash 195525500.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(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
25751148.63 23963131.18
Fixed assets 330341703.53 335451284.12
Intangible assets 24988633.63 25314850.99
Prepayments 498425.88 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 4807992.36 5334663.88
Other non-current assets 1985104.15 1985104.15
Account payable 30134535.09 101667530.90
Advance Payments 11593.50 9537.00
Employees’ wage payable 296037.13 249318.39
Tax payable 1840851.65 280315.37
Other payable 188164916.74 125478801.61
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 256571899.38 268007324.71
Less：Minority equity 89800164.78 93802563.65
Acquire net assets 166771734.60 174204761.06
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
the
disposal
of the
investme
nt
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
Xuyou
Electroni
c
Materials
Technolo
gy
(Wuxi)
Co. Ltd.
550000
000.00
51.00% Sell
April
282018
Received
consider
ation and
lost
control
318220
6.12
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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:
New important subsidiaries in the current period
（1）On March 82018Shenzhen Xuhui Investment Holding Co. Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co. Ltd. with the registered capital of RMB
22.7345 million and the paid-up capital of RMB 22.7345 million. Of which Shenzhen Xuhui Investment Holding
Co. Ltd.Subscribet and pays RMB 12 million holding 52.78% of the shares.
subscribet of RMB 316.1197 million and Holding 90% of the shares;Xiji Traffic Construction Co. Ltd. subscribet
and pays RMB 35.1244 million holding 10% of the sharesJiangxi University of Science and Technology
subscribet and pays RMB 10.7345 million holding 47.22% of the shares.
（2）On March 232018 Mingshuo(Beingjing )Electronic Technology Co. Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB30
million and the paid-up capital of RMB 0.00.
（3）On May 172018 Tunghsu Constructtion Group Co. Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co. Ltd . With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 162018 Mingshuo(Beijing)Electronic Technology Co. Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co. Ltd. With the registered capital of RMB 30
million and the paid-up capital of RMB 10000
（5）On July 262018 Jiangsu Yitai Intelligent Equipment Co. Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co. Ltd. With the registered capital of RMB 20 million Jiangsu Tunghsu Yitai Intelligent Equipment
Co. Ltd. holds 51% of the shares Liu Yang holds 32% of the shares Xiajinlong holds 17% of the shares.
（6）November 62018 Tunghsu Optoelectronic Technology Co. Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co. Ltd. With the registered capital of RMB 1 million and the paid-up capital
of RMB10 million.
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
Photoelectric
display material
81.26% Establish
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shijiazhuang
Hebei Province
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
Beijing
206 2/F Building
2BNo.80
Industrial
application of
70.00% Establish
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology Co.Ltd.Xingshikou Road
Haidian District
Beijing
graphene
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 Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu
Construction
Group Co. Ltd.Sichuan
No.21 15
Building No.181
Erhuan Road
Jinniu District
Chengdu
Building Installing 100.00%
Non control
combination
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
Tunghsu
Optoelectronic
EU.C.V
Holland
Strawinskylaan
909 1077XX
Amsterdam the
Netherlands
Overseas investment
management
100.00% Establish
Anhui Xuan
Optoelectronic
Technology Co.Ltd.
Chuzhou
No.155 Quanjiao
Road Chuzhou
Anhui
Photoelectric
display material
100.00% Establish
Jiangsu xuheng
new material co.
LTD
JiangSu
9 F. main
building
recreation and
sports center
no.36 hanjing
avenue yunlong
district xuzhou
city
Research and
development of new
material technology
100.00% Establish
Note：It is filled in according to the sum of the shareholding proportion of each enterprise in the Group to these
subsidiaries
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
（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% 15261279.63 127875221.16
Daosui Group
Engineering Co. Ltd.
49.00% 12848583.00 86002179.03
Shanghai Tanyuan Huigu
New Material
Technology Co. Ltd.
49.50% 10138966.40 63373844.58
Shenzhen Sanbao
Innovation Intelligent
Co. Ltd.
33.00% -4201903.25 39491171.47
Tunghsu (Yingkou)
Optoelectronic Display
Co. Ltd.
35.00% 90685.60 93893249.25
(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..
875591
098.65
556167
620.87
143175
8719.52
924168
474.44
188000
000.00
111216
8474.44
646709
574.39
423862
686.32
107057
2260.71
601135
214.70
188000
000.00
789135
214.70
Daosui
Group
Engineer
ing Co.Ltd.
216750
9492.45
202708
811.48
237021
8303.93
207326
7879.04
121889
831.33
219515
7710.37
170323
5393.81
212928
263.97
191616
3657.78
165202
0253.77
129832
585.29
178185
2839.06
Shanghai 549197 894624 144382 159881 366037. 163541 298778 845346 114412 647759 389647. 686724
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tanyuan
Huigu
New
Material
Technolo
gy Co.
Ltd.
12.81 17.94 130.75 24.61 32 61.93 54.31 00.13 454.44 8.47 55 6.02
Shenzhe
n Sanbao
Innovati
on
Intellige
nt Co.
Ltd.
547277
02.15
713026
61.35
126030
363.50
534255
3.57
101759
3.35
636014
6.92
Tunghsu
(Yingko
u)
Optoelec
tronic
Display
Co. Ltd.
325578
183.83
110410
4232.11
142968
2415.94
579076
971.21
582339
018.30
116141
5989.51
211969
695.83
938694
935.81
115066
4631.64
264001
895.95
618655
410.98
882657
306.93
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..
134687874
9.65
38153199.0
7
38153199.0
7
691769381.
35
431614395.
70
41290334.2
5
41290334.2
5
-72064807.1
6
Daosui
Group
Engineering
Co. Ltd.
186170306
5.12
26141288.1
2
26141288.1
2
-193439024.
46
314838576.
30
3830635.45 3830635.45
65139015.2
1
Shanghai
Tanyuan
Huigu New
Material
Technology
Co. Ltd.
88995675.6
1
20482760.4
0
20482760.4
0
8168288.19
17171660.2
7
23827340.6
2
23827340.6
2
6575862.80
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Shenzhen
Sanbao
Innovation
Intelligent
Co. Ltd.
7659108.35
-12733040.1
3
-12733040.1
3
-11678623.7
0
Tunghsu
(Yingkou)
Optoelectroni
c Display
Co. Ltd.
147376006.
85
259101.72 259101.72
61789360.0
2
16069429.2
1
-13043965.2
2
-13043965.2
2
-7604917.03
2. Equity in joint venture arrangement or associated enterprise
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
Tunghsu Group
Finance Co. Ltd.
Hebei
Shijiazhuang
Hebei
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
Dongxu group finance co. LTD Dongxu group finance co. LTD
Current assets 3045452313.85 2682394584.48
Non-current assets 28093049900.77 9907461970.78
Total of assets 31138502214.62 12589856555.26
Current liabilities 25997850975.29 7579701042.91
Total of Liabilities 25997850975.29 7579701042.90
Attributable to shareholders of the parent
company
5140651239.33 5010155512.35
Share of net assets calculated by stake 2056260495.73 2004062204.94
Book value of equity investment in
associates
2056260495.73 2004062204.94
Business income 520973281.19 123282711.28
Net profit 130495726.98 10155512.35
Total comprehensive income 130495726.98 10155512.35
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
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 118087473.48 126422519.76
The total number of shares in each of the
following shares
-- --
--Net 12167760.85 601000.00
Total comprehensive income 12167760.85 601000.00
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 VII. In the notes to the consolidated
financial statements 71 foreign currency monetary items.XI. Disclosure of fair value
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
zone Shijiazhuang
Investment
production and R &
D etc.
36.8 billion 15.97% 21.85%
Explanation on parent company of the enterprise
During the reporting period the paid-in capital of the parent company changed as follows：
Items Opening balance Indrease Decerease Closing balance
Paid-in capital 21800000000.00 15000000000.00 36800000000.00
Ultimate controller of the Company is Li Zhaoting
Other note
Nil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
Zibo Bus Co. Ltd. Associated enterprise
Other note
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. A joint venture of the parent company
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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
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
Beijing Zhonghuan Xinrong Trade Co. Ltd. Controlled by the same actual controller
Tunghsu Chuanzhi（Beijing）Cultural Media Co. Ltd. Controlled by the same actual controller
Tunghsu International Investment Group Co. Ltd. Controlled by the same actual controller
Tunghsu KechuangTechnology Industry Development Co. Ltd. Controlled by the same actual controller
Fujian Tunghsu Qiming Real Estate Co. Ltd. Controlled by the same actual controller
Hangzhou Yuanbang Real Estate Development Co. Ltd. Controlled by the same actual controller
Shijiazhuang Tunghsu Medical Equipment Co. Ltd. Controlled by the same actual controller
Tibet Tunghsu Electric Power Engineering Co. Ltd. Controlled by the same actual controller
Zhangzhou Nanrong Real Estate Development Co. Ltd. Controlled by the same actual controller
Zhongshan Shenzhong Real Estate Development Co. Ltd. Controlled by the same actual controller
Zhongshan Shenzhong Real Estate Investment Co. Ltd Controlled by the same actual controller
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Honghai Environmental Protection Technology Co.Ltd. Controlled by the same actual controller
Jinzhou Xulong New Material Co. Ltd. Controlled by the same actual controller
Tunghsu Lantian New Energy Co. Ltd. Controlled by the same actual controller
Huizhou Dexin Real Estate Co. Ltd. Controlled by the same actual controller
Xudong Machinery Industry Co. Ltd. Controlled by the same actual controller
Tunghsu (HK) Holding Co. Ltd. Controlled by the same actual controller
Zhongshan Donghong Real Estate Development Co. Ltd. Controlled by the same actual controller
Anhui Tunghsu Dangtu Solar Energy Technology Co. Ltd. Controlled by the same actual controller
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Related parties
Content of related
transaction
Amount of current
period
Amount of previous
period
Over the trading limit
or not?
Amount of last period
Chengdu China
Optoelectronic
Technology Co.Ltd.Glass substrate
semi-finished
product
20000000.00
Shijiazhuang
Baoshi Zhonghe
Steel Plastic Shape
Co. Ltd.
Doors and
windows
8963488.82 289743.58
Chengdu China
Optoelectronic
Technology Co.Ltd.
Equipment
Material
1064512.80
Chengdu Taiyisi
Technology Co.Ltd.
Equipment
Material
361965.81
Tunghsu Honghai
Environmental
Protection
Technology
Co.Ltd.
Combustion
machine
340517.24
Anhui Tunghsu
Dabieshan
Camellia Oi 48364.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Agricultural
Science &
Technology Co.Ltd.Shijiazhuang Bofa
Mechanical
Equipment Co. Ltd
A frame 568390.00
Shijiazhuang
Baoshi Electronic
vacuum Glass Co.Ltd.
Electromechanical
equipment
1196581.20
Shijiazhuang
Baoshi Electronic
Group Co. Ltd.
Energy 908190.45 792773.07
Shijiazhuang
Baoshi Electronic
Group Co. Ltd.Security fee 630779.00
Total 32883620.32 2281685.65
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Anhui Tunghsu Kangtu Solar
Energy Technology Co. Ltd.
Spares 274310.34
Beijing Hexie Guanglu
Technology Co. Ltd.
Construction 287179.49
Beijing Zhonghuan Xinrong
Trade Co. Ltd.
Construction 196132742.57
Chengdu Taiyisi Technology
Co. Ltd.
Construction 23131.62
Chengdu China Optoelectronic
Technology Co. Ltd.
Construction 14647.38
Chengdu China Optoelectronic
Technology Co. Ltd.Traction roll project 611459.82 1851454.70
Chengdu China Optoelectronic
Technology Co. Ltd.Sales of alkyne 3439.66
Dongguan Yijiu Real Estate
Development Co. Ltd.
Construction 7435707.37
Tunghsu North Real Estate Construction 54568.04
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
(Beijing) Co. Ltd.
Tunghsu North Real Estate
(Beijing) Co. Ltd.
Alkyne 71503.37
Tunghsu
Chuangzhi(Beijing)Cultural
Media Co. Ltd.Robot 175862.12
Tunghsu International
Investment Group Co. Ltd.Spares 8892.24
Tunghsu Group Equity custody income 235849.06
Tunghsu Group Construction 648458.60
Tunghsu Group Glass 34482.76
Tunghsu Group Lamps 8717.94
Tunghsu Group Spares 253922.41
Tunghsu Group Equipment 20085470.09
Tunghsu Kechuang Technology
Industry Development Co. Ltd.Spares 247586.21
Tunghsu Technology
Development Co. Ltd.
Construction 9771017.46
Tunghsu Technology Group
Co. Ltd.
Efficient lightbulb 811.97 5384.62
Tunghsu Lantian New
EnergyCo. Ltd.
Graphene 39490909.09 34102.56
Fujian Tunghsu Real Estate Co.
Ltd.
Construction 9178396.21
Fujian Tunghsu Qiming Real
Estate Co. Ltd.
Sales of alkyne 33456.70
Guangdong Huakai Real Estate
Development Co. Ltd.
Construction 46479358.32 50231982.84
Hangzhou Yuanbang Real
Estate Development Co. Ltd.
Spares 3008.62
Hunan Baoan Hongji Real
Estate Development Co. Ltd.
Construction 28799566.55
Huiyin Gold Control Asset
Management Co. Ltd.
Construction 387177.52
Huidong Baoan Hongji Real
Estate Development Co. Ltd.
Construction 80564662.74
Huidong Baoan Jinan Real Construction 313409269.67
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Estate Development Co. Ltd.
Jinzhou Xulong New Material
Co. Ltd.
Construction 2334172.94
Kunming Tunghsu Qiming
Investment Development Co.Ltd.
Construction 472417467.35 57628263.37
Kunming Tunghsu Qiming
Investment Development Co.Ltd.
15474.14
Shanghai Anxuan Automation
Technology Co. Ltd.Part 184745.94
Shenzhen Hongji Property
Management Co. Ltd.
Construction 263333.34
Shengzhou Zhexu Real Estate
Co. Ltd.
Construction 132136363.64
Shengzhou Zhexu Real Estate
Co. Ltd.
Sales of alkyne 20520.34
Shijiazhuang Baoshi
Large-diameter plastic tube Co.ltd.
Construction 594000.00
Shijiazhuang Bofa Mechanical t
Co. Ltd.
A frame 7285897.44
Ningxia Xutang New Material
Technology Co. Ltd.Sales material 11964.11
Shijiazhuang Tunghsu Medical
Equipment Co. Ltd.
Construction 3636363.60
Tibet Tunghsu Electric Power
Engineering Co. Ltd.
Speres 3275.86
Tibet Financial Leasing Co.Ltd.Graphene 5115.39
Tibet Xuri Capital Management
Co. Ltd.
Robot 8448.28
Yixian Xuhua Park
Construction Development Co.
Ltd.
Construction 58744654.57 41574488.29
Yinchuan Fengxiang Street
Comprehensive Construction
Management Co. Ltd.
Construction 52741795.14 336755509.90
Zhangzhou Nancai Real Estate Construction 3517.24
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Development Co. Ltd.
Zhangzhou Nanrong Real
Estate Development Co. Ltd.
Alkene 6879.31
Zhangzhou Shenghua Real
Estate Development Co. Ltd.
Construction 159100004.55
Zhangzhou Shenghua Real
Estate Development Co. Ltd.
Spares 8732.98
Zhongshan Shenzhong
Zhangzhou Shenghua Real
Estate Development Co. Ltd.
Construction 388042917.70
Zhongshan Shenzhong Real
Estate Investment Co.Ltd.
Construction 51747572.82
Chongqing Tunghsu Qide Real
Estate Co. Ltd.
Construction 72347034.55
Huizhou Dexin Real Estate Co.Ltd.
Construction 84628947.48
Total 2211283426.74 517812524.19
Note
Nil
（2）Related trusteeship or contracting
Related custody/contracting situation statement
Nil
Related management/out of the package situation
Nil
(3) Information of related lease
Related lease situation description
Nil
（4）Status of related party guarantee
As a guarantor for the company
In RMB
Guarantor Guarantee amount Start date End date
Execution accomplished
or not
As a secured party for the company
In RMB
Guarantor Guarantee amount Start date End date
Execution accomplished
or not
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Group Co. Ltd.and its 40 million shares
of Tunghsu
Optoelectronics
Technology Co. Ltd.
425000000.00 November 72016 June 202024 No
Tunghsu Group Li
Zhaoting
17792407.79 June 162016 June 162019 No
Tunghsu Group、LiZhaoting、Li Qing
300000000.00 April 12014 April 112022 No
Tunghsu Group、 LiZhaoting、Li Qing
150000000.00 April 222015 April 112022 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
100000000.00 March 272018 March 272019 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
100000000.00 March 282018 March 282019 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
110000000.00 December 282018 December 282019 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
70000000.00 March 272018 March 152019 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
30000000.00 April 22018 March 152019 No
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
60000000.00 March 12018 March 12019 No
Tunghsu Optoelectronic
Technology Co. Ltd.Tunghsu Group
50000000.00 March 302018 March 292019 No
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
92350746.73 September 302018 September 292021 No
Tunghsu Optoelectronic
Investment Co. Ltd.Tunghsu Group Li
Zhaoting Tunghsu
Optoelectronic
1000000000.00 December 72018 December 62019 No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Technology Co. Ltd.Tunghsu Group 50000000.00 July 262018 July 262019 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 Li
Zhaoting Li Qing
115000000.00 October 312017 October 312019 No
Tunghsu Group Li
Zhaoting
98000000.00 July 72017 July 62019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co. Ltd.
20000000.00 September 262018 September 262019 No
Tunghsu Group Li
Zhaoting Tunghsu
Optoelectronic
Technology Co. Ltd.
25000000.00 December 32018 December 22019 No
Tunghsu Group Li
Zhaoting Tunghsu
Optoelectronic
Technology Co. Ltd.
400000000.00 November 302016 November 302019 No
Tunghsu Group Li
Zhaoting
200000000.00 May 272016 May 262019 No
Tunghsu Group Li
Zhaoting
100000000.00 March 32017 March 22019 No
Tunghsu Group Li
Zhaoting
136301749.37 November 72017 November 72020 No
Tunghsu Group Li
Zhaoting
180000000.00 November 102017 November 152022 No
Tunghsu Group Li
Zhaoting Tunghsu
Optoelectronic
Technology Co. Ltd.
40000000.00 February 92018 February 82019 No
Tunghsu Group Li
Zhaoting Tunghsu
Optoelectronic
Technology Co. Ltd.
40000000.00 February 122018 February 112019 No
Tunghsu Group Li
Zhaoting
206466015.69 November 62017 November 62020 No
Tunghsu Group Li 200000000.00 June 262018 June 242019 No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Zhaoting
Tunghsu Group Li
Zhaoting
80000000.00 September 182018 September 182019 No
Tunghsu Group Li
Zhaoting
40000000.00 September 282018 September 272019 No
Tunghsu Group Li
Zhaoting
80000000.00 September 302018 September 272019 No
Tunghsu Group 200000000.00 June 82018 June 82019 No
Tunghsu Group 45000000.00 May 282018 May 282019 No
Tunghsu Group 135000000.00 June 272018 June 272019 No
Tunghsu Group 46225932.79 October 122018 October 122021 No
Tunghsu Group 30000000.00 July 262018 March 202020 No
Tunghsu Group 50000000.00 November 12018 June 202020 No
Tunghsu Group 54306914.36 May 252016 May 202019 No
Tunghsu Group Li
Zhaoting
200000000.00 November 262018 November 262019 No
Tunghsu Group Li
Zhaoting
98000000.00 November 62018 November 62019 No
Tunghsu Group Li
Zhaoting
200000000.00 November 262018 November 252019 No
Tunghsu Group Li
Zhaoting
100000000.00 December 112018 December 112019 否
Tunghsu Group 85000000.00 September 182017 September 152022 No
Tunghsu Group 170000000.00 September 182017 September 152022 No
Tunghsu Group 170000000.00 September 182017 September 152022 No
Tunghsu Group 85000000.00 Septemer 182017 September 152022 No
Tunghsu Group 170000000.00 October 312017 September 152022 No
Tunghsu Group 170000000.00 October 312017 September 152022 No
Tunghsu Group 100000000.00 July 112018 July 102019 No
Tunghsu Group 200000000.00 September 272018 September 262019 No
Tunghsu Group 20000000.00 November 52018 November 52019 No
Tunghsu Group 100000000.00 December 112018 December 102019 No
Tunghsu Group 345000000.00 January 282013 January 272021 No
Tunghsu Group 27742800.00 January 282013 January 272021 No
Tunghsu Group Li
Zhaoting
133782675.98 May 312016 May 302021 No
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Group 50000000.00 February 72018 December 62019 No
Tunghsu Group 50000000.00 December 42018 December 42019 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
299550000.00 June 72016 June 72019 No
Tunghsu Group Li
Zhaoting
450000000.00 September 302016 September 292021 No
Tunghsu Group 200000000.00 March 152018 March 152019 No
Tunghsu Group 450000000.00 June 132018 June 132019 No
Tunghsu Group 250000000.00 July 282018 July 282019 No
Tunghsu Group 10000000.00 September 262018 September 252019 No
Li Zhaoting 480000000.00 December 212018 December 212019 No
Li Zhaoting 1800000000.00 October 162018 October 152019 No
Tunghsu Group 100000000.00 April 52017 March 142018 Yes
Tunghsu Group 100000000.00 June 192017 March 142018 Yes
Tunghsu Group 45000000.00 April 1 2017 March 232018 Yes
Tunghsu Group 45000000.00 April 102017 March 312018 Yes
Tunghsu Group Li
Zhaoting Li Qing
150000000.00 May 262016 April 262018 Yes
Tunghsu Group Li
Zhaoting Li Qing
159000049.50 June 82016 April 82018 Yes
Tunghsu Group Li
Zhaoting Li Qing
40999950.50 June 21 2016 April 212018 Yes
Tunghsu Group Li
Zhaoting
38000000.00 April 202017 April 192018 Yes
Tunghsu Group Li
Zhaoting
20000000.00 June 302017 June 292018 Yes
Tunghsu Group Li
Zhaoting
22000000.00 July 72017 July 62018 Yes
Tunghsu Group 10000000.00 June 202017 April 252018 Yes
Tunghsu Group 30000000.00 June 202017 Aprlil 202018 Yes
Tunghsu Group Li
Zhaoting Li Qing
387700000.00 April 292016 April 282018 Yes
Tunghsu Group 100000000.00 May 172016 May 172018 Yes
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Group 100000000.00 May 202016 May 202018 Yes
Tunghsu Group Li
Zhaoting Li Qing
150000000.00 May 192016 May 182018 Yes
Tunghsu Group 81500000.00 May 262016 May 262018 Yes
Tunghsu Group 40000000.00 May 92017 May 82018 Yes
Tunghsu Group 160000000.00 May 112017 May 102018 Yes
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
75000000.00 May 312017 May 312018 Yes
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
30000000.00 June 92017 June 92018 Yes
Tunghsu Group Li
Zhaoting
400000000.00 August 152017 June 292018 Yes
Tunghsu Group 100000000.00 July 72017 July 62018 Yes
Tunghsu Group 20000000.00 July 262017 July 62018 Yes
Tunghsu Group 100000000.00 July 312017 July 302018 Yes
Tunghsu Group Li
Zhaoting
30000000.00 May 222018 May 222019 Yes
Tunghsu Group Li
Zhaoting
400000000.00 August 152017 August 152018 Yes
Tunghsu Group Li
Zhaoting
50000000.00 August 32017 August 22018 Yes
Tunghsu Group 199000000.00 February 242017 August 232018 Yes
Tunghsu Group 50000000.00 August 242017 August 242018 Yes
Tunghsu Group Li
Zhaoting
80000000.00 October 202015 October 152018 Yes
Tunghsu Group 204000000.00 March 292017 September 282018 Yes
Tunghsu Group Li
Zhaoting
42000000.00 April 102018 October 102018 Yes
Tunghsu Group Li
Zhaoting
38000000.00 April 112018 October 112018 Yes
Tunghsu Group 97000000.00 April 272017 October 262018 Yes
Li Zhaoting 400000000.00 October 192017 October 192018 Yes
Tunghsu Group Li
Zhaoting
200000000.00 October 262017 October 262018 Yes
Tunghsu Group 25000000.00 October 192017 October 192018 Yes
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu Group 50000000.00 October 122017 October 102018 Yes
Tunghsu Group 100000000.00 October 262017 October 262018 Yes
Tunghsu Group 25000000.00 October 202017 October 192018 Yes
Tunghsu Group 100000000.00 September 262013 April 112022 Yes
Tunghsu Group Li
Zhaoting
200000000.00 November 302017 November 302018 Yes
Tunghsu Group 50000000.00 November 12017 November 12018 Yes
Tunghsu Group 20000000.00 November 162017 November 152018 Yes
Tunghsu Group 50000000.00 December 12017 November 302018 Yes
Tunghsu Group Li
Zhaoting
100000000.00 November 132017 November 122018 Yes
Tunghsu Group 220000000.00 March 172016 March 172028 Yes
Tunghsu Group 280000000.00 June 162016 June 162028 Yes
Tunghsu Group 50000000.00 December 282017 December 272018 Yes
Tunghsu Group 200000000.00 December 222017 December 222018 Yes
Li Zhaoting 560000000.00 December 152017 December 152018 Yes
Tunghsu Group 100000000.00 January 312018 December 312018 Yes
Tunghsu Group Li
Zhaoting Li Qing
200000000.00 December 272016 December 272018 Yes
Tunghsu Group Li
Zhaoting Li Qing
200000000.00 December 292016 December 292018 Yes
Tunghsu Group Li
Zhaoting Li Qing
100000000.00 December 232016 December 232018 Yes
Tunghsu Group 200000000.00 December 152016 December 152018 Yes
Tunghsu Group 100000000.00 December 292017 December 272018 Yes
Tunghsu Group Li
Zhaoting
166666666.66 January 62017 January 62019 Yes
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
142500000.00 June 262018 January 262019 Yes
Tunghsu Optoelectronic
Technology Co. Ltd. Li
Zhaoting
150000000.00 June 262018 January 262019 Yes
Dong xu group co. LTD 445000000.00 January 282013 January 272021 None
Dong xu group co. LTD 34316000.00 January 282013 January 272021 None
Hangzhou yuanbang real
estate development co.
480000000.00
December 212018 December212019
None
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
LTD
Tunghsu Group Li
Zhaoting
20000000.00
December 292018
December182019 None
Dong xu group co. LTD 50000000.00 November 292018 Novemberr282019 None
Dong xu group co. LTD
Li Zhaoting
20833333.28
January 062017
January062019 None
Note
Nil
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content
Amount of current period Amount of previous period
Tunghsu Technology Group
Co. Ltd.
51% equity of Xuyou
Electronic Materials
Technology (Wuxi) Co. Ltd.
550000000.00
Total 550000000.00
(7) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
personnel
817.48 837.29
（8）Other related transactions
（5）Fund settlement business
As approved by the resolution of the shareholders' meeting of the Company the Company and Tunghsu Group
Finance Co. Ltd. (hereinafter referred to as "Tunghsu Finance Company") carried out partial capital settlement
business. As of December 31 2018 the capital settlement between the Company and its subsidiaries and Tunghsu
Finance Company was as follows:
Name Opening balance Increase in the current
period
Interest receivable or
payable (-)
I. Deposits stored in Tunghsu Finance Company 5838232555.01 73647041005.91 71365240006.18
II. Acceptance bill stored in Tunghsu Finance Company
III. Entrusting Tunghsu Finance Company to issue
acceptance bill
IV. Carry out bill discounting to Tunghsu Finance Company
V. Loan from Tunghsu Finance Company
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
VI. Handling non-recourse factoring of accounts receivable
to Tunghsu Finance Company
Continue
Name Closing balance Interest receivable or payable (-)
I. Deposits stored in Tunghsu Finance Company 8120033554.74 135922815.23
II. Acceptance bill stored in Tunghsu Finance Company
III. Entrusting Tunghsu Finance Company to issue acceptance bill
IV. Carry out bill discounting to Tunghsu Finance Company
V. Loan from Tunghsu Finance Company
VI. Handling non-recourse factoring of accounts receivable to
Tunghsu Finance Company
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 China
Optoelectronic
Technology Co. Ltd.
874842.20 629722.6
Account receivable
Hebei Baoshi Energy
saving lighting
technology Co. Ltd.
43600.00
Account receivable
Guangdong Huakai
Real Estate
Development Co.
Ltd.
30096793.88 19184644.15
Account receivable
Jinzhou Xulong
Solar Energy
Technology Co. Ltd.
2449198.07 2449198.07
Account receivable
Kunming Tunghsu
Qiming Investment
Development Co.
Ltd.
247253556.82 29110261.39
Account receivable
Yinchuan Fengxiang
Street
Comprehensive
Construction
Management Co.
107844476.63 173363844.40
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.
Account receivable
Anhui Tunghsu
Kangtu Solar Energy
Technology Co. Ltd.
222740.00
Account receivable
Baoan Hongji Real
Estate Group Co.
Ltd.
35392973.72
Account receivable
Beijing Hexie
Guanglu Technology
Co. Ltd.
138000.00
Account receivable
Beijing Zhonghuan
Xinrong Trade Co.Ltd.
215747350.00
Account receivable
Dongguan Yijiu Real
Estate Development
Co. Ltd.
996344.71
Account receivable
Tunghsu Chuangzhi
（Beijing）Cultural
Media Co. Ltd.
204000.00
Account receivable
Tunghsu Technology
Development Co.
Ltd.
4133892.00
Account receivable
Fujian Tunghsu
Qiming Real Estate
Co. Ltd.
3389184.77
Account receivable
Hunan Baoan Hongji
Real Estate
Development Co.
Ltd.
19459762.15
Account receivable
Huidong Baoan
Hongji Real Estate
Development Co.
Ltd.
32810756.93
Account receivable
Huidong Ban Jinan
Real Estate
Development Co.
Ltd.
256023829.26
Account receivable
Huizhou Dexin Real
Estate Co. Ltd.
67266007.88
Account receivable Shanghai Anxuan 109032.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Automation
Technology Co. Ltd.
Account receivable
Shenzhen Hongji
Property
Management Co.Ltd.
15405.00
Account receivable
Shengzhou Zhexu
Real Estate Co. Ltd.
85658187.65
Account receivable
Tibet Xuri Capital
Management Co.Ltd.
9800.00
Account receivable
Zhangzhou
Shenghua Real
Estate Development
Co. Ltd.
128070429.45
Account receivable
Zhongshan
Shenzhong Real
Estate Development
Co. Ltd.
193677332.40
Account receivable
Zhongshan
Shenzhong Real
Estate Development
Co. Ltd.
42197817.95
Account receivable
Chongqing Tunghsu
Qide Real Estate
Co. Ltd.
57086524.08
Prepayments
Hebei Baoshi Energy
saving lighting
technology Co. Ltd.
60000.00 60000.00
Prepayments
Hebei Decoration
Printing Machinery
Co. Ltd.
835680.87 835680.87
Prepayments
Tunghsu Technology
Group Co. Ltd.
4000.00
Prepayments
Zhongshan
Shenzhong Real
Estate Development
Co. Ltd.
1347924.53
Other receivable
Huidong Baoan
Hongji Real Estate
Development Co.
4020000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.Other receivable
Huizhou Dexin Real
Estate Co. Ltd.
500000.00
Other receivable
Chongqing Tunghsu
Qide Real Estate
Co. Ltd.
1050000.00
Other non-current
assets
Shijiazhuang Baoshi
Electronic vacuum
Glass Co. Ltd.
420000.00
Other non-current
assets
Tunghsu Group 73876642.13 132132857.44
（2）Payables
In RMB
Name Related party Book balance at year end Book balance at year beginning
Account payable
Shijiazhuang Bofa Machinery
Co. Ltd.
55444.45
Account payable
Shijiazhuang Baoshi Xuming
Pipe Co. Ltd.
14948.00 14948.00
Account payable
Shijiazhuang Baoshi Electronic
vacuum Glass Co. Ltd.
6344.16 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.
3483519.11 30296.40
Account payable
Shijiazhuang Xuling Electronic
Technology Co. Ltd.
1320164.09 1320164.09
Account payable
Tunghsu Honghai
Environmental Protection
Technology Co. Ltd.
276500.00
Advance revenue Tunghsu Group 47075980.50 46176000.00
Advance revenue
Chengdu China Optoelectronic
Technology Co. Ltd.
Advance revenue
Yixian Xuhua Garden
Construction Development Co.
Ltd.
110259360.60 3852318.00
Advance revenue Hangzhou Yuanbang Real 100000000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Estate Development Co. Ltd.
Advance revenue
Zhongshan Donghong Real
Estate Development Co. Ltd.
3318850.80
Other payable
Jinzhou Xuguang New Material
Technology Co. Ltd.Other payable Baoshi Group 722000.00 722000.00
Other payable Tunghsu Group 275490964.33 470099941.55
Other payable
Shijiazhuang Baoshi Electronic
vacuum Glass Co. Ltd.
4768691.30 4700985.30
Other payable
Shijiazhuang Baoshi Xuming
Pipe Co. Ltd.
97031.00 97031.00
Other payable
Tunghsu Optoelectronic
Investment Co. Ltd.Other payable
Chengdu China Optoeelctronic
Technology Co. Ltd.
6850.92
Other payable
Huidong Baoan Jinan Real
Estate Development Co. Ltd.
4008400.00
Other payable
Tibet Xuri Capital Management
Co. Ltd.
8000000.00
Other payable
Tunghsu (HK) Holding Co.Ltd.
782250.00
Other payable
Zhongshan Shenzhong Real
Estate Development Co. Ltd.
339000000.00
7. Related party commitment
Nil
XIII. Stock payment
1. The Stock payment overall situation
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
□ 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
Nil
5.Other
Nil
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
Important commitments not required to be disclosed by the company as of December 31 2018
2. Contingency
(1).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. The case was
handed over to the Chengdu Intermediate People’s Court for Railway Transportation. On December 18 2017 the
court accepted the case for the first instance and informed the Plaintiff and the Defendant to supplement data First
instance judgment result: Daosui paid RMB 1.5 million and bore the acceptance fee of RMB 14040. Daosui
Company appealed with a court held at 9:30 am on March 4 2019 and waiting for the result of the second
instance.
(2). 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 275721.63 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. The case was handed over to the Chengdu Intermediate People’s Court for Railway Transportation.
On December 18 2017 the court accepted the case for the first instance and informed the Plaintiff and the
Defendant to supplement data First instance judgment result: Daosui paid RMB 2300720.63 and interest and
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
bore the acceptance fee of RMB 21591.00 and Nanchong Hongcheng Construction Company assumed joint and
several liabilities. Daosui Company has appealed and is now waiting for the judgment result.
(3) 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 February 52018. (2017) Yu 0108 Zi No. 5009
first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 3.3 million
and interest Daosui Company appealed second instance judgment result: abrogated the first instance judgment
remanded it to the court of first instance for retrial and now it is in the remanding and retrial stage. (2017) Yu
0108 Zi No. 5010 first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of
RMB 2.7 million and interest Daosui Company appealed second instance judgment result: abrogated the first
instance judgment remanded it to the court of first instance for retrial and now it is in the remanding and retrial
stage.
(4) Non-governmental loan dispute plaintiff: Ye Pingyuan defendant: He Yuanyuan and Daosui Group.
Plaintiff requests: immediate repayment of loan principal of 2700000.00 yuan and interest of 972000.00 yuan
overdue interest and default interest etc.; Payment of 50000.00 yuan in legal fees travel expenses and property
preservation guarantee fees for realizing creditor's rights. The Nan'an District People's Court of Chongqing
accepted the case and issued the No.5010 notice of respondence to action on February 5 2018 to Daosui Group.
(5) Construction project contract disputes，Plaintiff: Nanchong Jian'an Labor Service Co. Ltd. Defendant:
Road and Bridge International Co. Ltd. Third party: Daosui Group. Plaintiff's request: Payment of RMB
3850838.84. Pleadings summons notice of respondence to action notice of evidence sent by Shunqing District
Court in Nanchong City were received on July 30 2018. The Company filed application for jurisdiction objection
on July 31 2018. and The written verdict sent by Shunqing District Court in Nanchong City was received on
September 26 2018: The case was transferred to Chengdu Railway Transportation Court for trial. Pleadings
summons notice of respondence to action notice of evidence and notice of members of the collegiate bench sent
by Chengdu Railway Court were received on November 29 2018. It was scheduled to be heard at 2:30 p.m. on
December 19 2018 and is now waiting for the judgment of first instance.
(6). In March 2016 Daosui Group Engineering Co. Ltd. filed a lawsuit to the owner of Inner Mongolia
Zhunxing Heavy-duty Highway Co. Ltd. for payable quality guarantee deposit totaling amount of RMB
103000000 Yuan and the owners raised objections to jurisdiction. The first instance ruling was arbitrated by
Beijing Arbitration Commission and Daosui Group Engineering Co. Ltd. appealed. Through judgment of the
Supreme Court it decided to be arbitrated by Beijing Arbitration Commission on September 27 2016. The case is
in a state of suspension waiting for the Company to apply for arbitration from Beijing Arbitration Commission. In
the same year Daosui Group Engineering Co. Ltd. counterclaimed AZ-1 and AZ-2 parts except for the quality
guarantee deposit. After the counterclaim the owner filed an objection to jurisdiction and the first instance judged
to be arbitrated by Beijing Arbitration Commission. The Company appealed and the second instance of the
Supreme Court judged to be prosecuted by Inner Mongolia High Court in July 2017. On September 10 2017 the
complaint was resubmitted. Inner Mongolia High Court accepted the case and has not held a court until the
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
reporting date.
(7). Shanghai Sunlong Bus Co. Ltd. provides foreign guarantees to banks or financial leasing companies for
car buyers who purchase cars through financial leasing. As of December 31 2018 the amount of foreign
guarantees is RMB425103861.08
（2）The Company have no significant contingency to disclose also should be stated
The was no significant contingency in the Company.
3.Other
Nil
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
The profit or dividend to be distributed 401117508.26
Profits or dividends declared after deliberation and approval 401117508.26
3. Sales return
4.Notes of ohter significant events
1. In April 2019 Tunghsu Construction Group Co. Ltd. signed a equity transfer framework agreement. to transfer
70% of the equity of Zhongcheng National construction co. Ltd. held at an estimated price of RMB 140 million.
XVI. Other signifiant enents
XVII. Notes s of main items in financial reports of parent company
1.Notes receivable & account receivable
In RMB
Items Year-end balance Year-beginning balance
Notes receivable 50000.00 200000.00
Account receivable 176563926.23 23837262.59
Total 176613926.23 24037262.59
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
（1）Notes receivable
（1）Classification Notes receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 50000.00 200000.00
Total 50000.00 200000.00
（2）Notes receivable pledged by the Company at the period -end
In RMB
Items Amount
（3）Notes 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 December
312018
Amount underecognized as at January
12018
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
（2）Account receivable
（1）Account receivable classified by category
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
176852
788.81
100.00%
288862.
58
0.16%
1765639
26.23
24456
691.50
100.00%
619428.9
1
2.53%
23837262.
59
Total
176852
788.81
100.00%
288862.
58
0.16%
1765639
26.23
24456
691.50
100.00%
619428.9
1
2.53%
23837262.
59
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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 82500000.00
Within 1 year after credit period
Wubtotal within 1 year 82500000.00
4-5 years 34668.39 24267.87 70.00%
Over 5 yers 264594.71 264594.71 100.00%
Total 82799263.10 288862.58
Note：
In the groups accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
B In the groups accounts receivable adopting other methods to accrue bad debt provision
Group Name Year-end balance Provision for bad debts
Other group 94053525.71
Continued：
Group Name Year-beginning balance Provision for bad debts
Other group 23220877.08
（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 RMB330566.33.Where the current bad debts back or recover significant amounts:Nil
（3）The current accounts receivable write-offs situation
The important write-off of accounts receivable：
Note：
Nil
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
（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
RMB169546593.20 which accounts for 95.87%% 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
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
Other note：
Nil
4.Other accounts receivable
In RMB
Items Balance in year-end Balance in year- beginning
Interest receivable 7521489.86 41868921.15
Dividend receivable 500000000.00 665000000.00
Other 5774153829.41 4790712672.70
Total 6281675319.27 5497581593.85
（1）Interest receivable
1) Classification of interest receivable
In RMB
Items Balance in year-end Balance in year- beginning
Fixed deposit 7521489.86 41868921.15
Total 7521489.86 41868921.15
2) Important overdue interest
Nil
Other note：
Nil
（2）Dividend receivable
1) Dividend receivable
In RMB
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Items Balance in year-end Balance in year- beginning
Wuhu Tunghsu Equipment Technology
Co. Ltd.
500000000.00 665000000.00
Total 500000000.00 665000000.00
（2）Significant dividend receivable aged over 1 year
Other note：
Nil
(3)Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Category
Balance in year-end Balance 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(
%)
Other account
receivables provided
bad debt provision in
credit risk groups
577578
8977.98
100.00%
163514
8.57
0.03%
5774153
829.41
47923
02782.
16
100.00%
1590109
.46
0.03%
47907126
72.70
Total
577578
8977.98
100.00%
163514
8.57
0.03%
5774153
829.41
47923
02782.
16
100.00%
1590109
.46
0.03%
47907126
72.70
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□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
Within 1 year after credit period 469830.82 23491.54 5.00%
Subtotal within 1 year 469830.82 23491.54 5.00%
Over 3 years 1686460.99 1611657.03
4-5 years 249346.55 174542.59 70.00%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Over 5 years 1437114.44 1437114.44 100.00%
Total 2156291.81 1635148.57
Note：
Nil
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
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB45039.11 the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debt provision：Nil
(3)The actual write-off other accounts receivable
Note：
Nil
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Deposit 29065478.16 31693666.66
Personal Official borrowing 163295.56 159109.89
Related current account 5743653445.32 4728633349.92
Current account 28846088.84
Persona Returnable Insurance 603814.14 446555.34
Other 2302944.80 2524011.51
Total 5775788977.98 4792302782.16
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Name Nature Closing balance Aging
Proportion of the
total year end
balance of the
accounts
receivable(%)
Closing balance of
bad debt provision
Wuhu Tunghsu Current account 2210541471.94 Within credit period 38.27%
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Optoelectronic
Technology Co. Ltd.Shanghai Sunlong
Bus Co. Ltd.
Current account 1533274072.27 Within credit period 26.55%
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co. Ltd.
Current account 1269060118.34 Within credit period 21.97%
Fuzhou Xufu
Optoelectronic
Technology Co. Ltd.
Current account 282538999.97
Within 1 year after
credit period
4.89%
0.00%
Shijiazhuang Xuxin
Optoelectronic
Technology Co. Ltd.
Current account 179448608.11 1-2 years 3.11%
Total -- 5474863270.63 --
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other note：
Nil
3.Long-term equity investment
In RMB
Items
Year-end balance Year-Beginning balance
Book Balance
Impairment
provision
Book value Book Balance
Impairment
provision
Book value
Investment in
subsidiaries
24708559881.5
1
378172649.84
24330387231.6
7
21269035359.7
1
378172649.84
20890862709.8
7
Investment in
joint ventures and
associates
2174347969.22 2174347969.22 2129502187.30 2129502187.30
Total 26882907850.7 378172649.84 26504735200.8 23398537547.0 378172649.84 23020364897.1
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
3 9 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 3247200.00
Fuzhou Xufu
Optoelectronic
24000000.00 24000000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
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.
166771734.60 166771734.60
Shijiazhuang
Colour Bulb Co.
Ltd
439341956.80 439341956.80 378172649.84
Jiangsu Jixing
New Material Co.Ltd.
222345300.00 75000000.00 297345300.00
Tunghsu（Kunshan）
Display Material
Co. Ltd.
800000000.00 200000000.00 1000000000.00
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 2100000000.00 5900000000.00
Shenzhen Sanbao
Chuangxin
Inteligent Co. Ltd.
157598587.50 157598587.50
Beijing Tunghsu
Huaqing
Investment Co.
3500000.00 3500000.00
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Ltd.Shanghai Tanyuan
Huigu New
Material
Technology Co.Ltd.
73454500.00 73454500.00
Taizhou Tunghsu
graphene Industry
Investment Fund
Management
Center
25000000.00 25000000.00
Fuzhou Tunghsu
Investment
Development Co.
Ltd.
500000000.00 500000000.00
Anhui Xuan
Optolectronic
Technology Co.Ltd.
10000000.00 10000000.00
Tunghsu
Optoelectronic
EU.C.V(Holland)
782250.00 782250.00
Total
21269035359.7
1
4010152572.10 570628050.30
24708559881.5
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
Tunghsu
Group
Finance
Co. Ltd.
2004062
204.94
5219829
0.80
2056260
495.74
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Tunghsu(
Deyang)
Graphen
e
Develop
ment
Fund
Partners
hip（LP）
1945420
0.71
1951709
3.33
62892.62
Zibo Bus
Co. Ltd.
3267881
3.57
9137725
.63
4181653
9.20
Zhongda
Chengx
in
Internat
ional
Comm
ercial
Factori
ng Co.
Ltd.
7330696
8.08
2963966
.20
7627093
4.28
Subtotal
2129502
187.30
1951709
3.33
6436287
5.25
2174347
969.22
Total
2129502
187.30
1951709
3.33
6436287
5.25
2174347
969.22
（3）Other notes
4.Business income and Business cost
In RMB
Items
Amount of current period Amount of previous period
Income Cost Income Cost
Main business 127730245.51 92810680.07 188688625.35 135848152.08
Other business 64466696.29 60182760.63 35347620.01 22002680.00
Total 192196941.80 152993440.70 224036245.36 157850832.08
5. Investment income
In RMB
Items Amount of current period Amount of previous period
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Income from long-term equity investment
measured by adopting the cost method
479371949.70 665000000.00
Investment loss through disposal of
long-term equity investment
64362875.25 4680716.60
Disposal of long-term equity investment
income
-1209669.93
Financing income 13923452.07 59030191.76
Total 556448607.09 728710908.36
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
3450757.10
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
124464054.70
Gains and losses from assets under trusted
investment or Management
14623990.55
Net gain/loss of current term from
consolidation of subsidiaries under common
control from beginning of term to the
consolidation date
-11435425.33
Entrusted with the operating of the trust to
obtain fee income
707547.18
Other non-operating income and expenditure
beside for the above items
10172838.56
Other gains or losses satisfying the definition
of extraordinary gains or losses
552086.75
Less: Influenced amount of income tax 20174896.94
Amount of influence of minority interests
（After tax）
4628919.46
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
Total 117732033.11 --
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.
6.83% 0.38 0.38
Net profit attributable to the
Common stock shareholders of
Company after deducting of
non-recurring gain/loss.
6.44% 0.36 0.36
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
Tunghsu Optoelectronic Technology Co. Ltd. 2018 Annual Report
XII. Documents available for inspection
1.The original 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 Legal representative of the Company
financial controller and the person in charge of accounting organ
3.Original audit report seal with accounting firms and signature and seal from CPA;
4.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.【Note】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：April 292019
沪公网安备31011802005267号
