Tunghsu Optoelectronic Technology Co., Ltd.
2018 Annual Report
April 2019
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand 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, theperson in charge of the accounting department (the person in charge of the accounting )hereby confirm theauthenticity 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 notconstitute any substantive commitment to the investors by the Company. Investors please be aware of theinvestment risks.The company has already described the risk items existed in details in the report with reference to (IV) possiblerisks of IX Operation Conditions Discussion and Analysis.The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: totalshare of 5,730,250,118 for Base on the Company‘s total share capital, the Company would distribute cashdividend 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.
Table of Contents
I.Important Notice, Table of contents and DefinitionsII. Basic Information of the Company and Financial indexIII. Outline of Company BusinessIV. Management’s Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII. Information about Directors, Supervisors and Senior ExecutivesIX. Administrative structureX. Corporate BondXI. Financial ReportXII. Documents available for inspection
Definition
| Terms to be defined | Refers to | Definition |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People’s Republic of China |
| CSRC | Refers to | China Securities Regulatory Commission |
| SZSE | Refers to | Shenzhen Stock Exchange |
| Tunghsu Group | Refers to | Tunghsu Group Co., Ltd. |
| Baoshi Group | Refers to | Shijiazhuang Baoshi Electronics Group Co., Ltd |
| Tunghsu Optoelectronic , Company, The Company | Refers to | Tunghsu Optoelectronic Technology Co., Ltd. |
| Tunghsu（Yingkou）Optoelectronic | Refers to | Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. |
| Xuhong Optoelectronic | Refers to | Sichuan Xuhong Optoelectronic Technology Co., Ltd. |
| Wuhu Optoelectronic | Refers to | Wuhu Tunghsu Optoelectronic Technology Co., Ltd. |
| 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. |
| Guangxi Sunlong | Refers to | Guangxi Sunlong Automobile Manufacturing Co., Ltd. （Former Guangxi 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 |
II. Basic Information of the Company and Financial index
I. Company Information
| Stock abbreviation | Tunghsu Optoelectronic, Tunghsu B | Stock code | 000413、200413 |
| Stock 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 | ||
| 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 |
| gongxin_dx@126.com | wangqingfei@dong-xu.com |
III. Information disclosure and placed
| Newspapers selected by the Company for information disclosure | China Securities Journal ,Shanghai Securities News,Securities 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/F,A Building,Wantong New Word office Building,No.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 duringthe 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 City,Changling North Road, Guanshanhu District, Guiyang, Guizhou. | Chen Dongyang, Zhang Jin | 2017.10.26-2018.12.31 |
VI. Summary of Accounting Data and Financial IndicatorsIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√Yes □No
Reasons for retrospective restatements:
Business merger under the same control.
| 2018 | 2017 | Changed over last year（％） | 2016 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Operating revenue（Yuan） | 28,211,700,021.12 | 17,336,364,158.13 | 17,276,969,039.03 | 63.29% | 7,632,049,549.25 | 7,631,092,002.07 |
| Net profit attributable to the shareholders of the listed company（Yuan） | 2,163,607,505.39 | 1,743,666,827.25 | 1,730,174,564.57 | 25.05% | 1,303,685,863.90 | 1,301,466,332.10 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | 2,045,875,472.28 | 1,539,583,478.72 | 1,534,569,793.43 | 33.32% | 961,311,896.60 | 961,311,896.60 |
| Net Cash flow generated by business operation（Yuan） | 388,252,004.52 | 1,265,773,428.34 | 1,253,178,511.31 | -69.02% | 748,957,164.24 | 741,861,295.45 |
| 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） | 72,576,122,859.60 | 67,683,329,226.91 | 68,611,332,346.16 | 5.78% | 50,287,380,415.68 | 51,373,374,293.43 |
| Net assets attributable to shareholders of the listed company（Yuan） | 32,521,130,925.14 | 30,922,796,455.46 | 30,941,044,388.04 | 5.11% | 23,286,206,822.68 | 23,325,208,072.11 |
VII.The differences between domestic and international accounting standards1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosedin the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.□ Applicable √Not applicableNilVIII.Main Financial Index by Quarters
In RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 4,665,570,392.15 | 6,464,281,398.73 | 6,133,715,988.34 | 10,948,132,241.90 |
| Net profit attributable to the shareholders of the listed company | 425,984,601.17 | 432,311,487.91 | 456,861,464.93 | 848,449,951.38 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company | 391,131,962.40 | 420,213,516.37 | 440,653,348.34 | 793,876,645.17 |
| Net Cash flow generated by business operation | -1,057,540,776.02 | 1,141,158,063.68 | -599,044,017.62 | 903,678,734.48 |
Whether significant variances exist between the above financial index or the index with its sum and the financialindex 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) | 3,450,757.10 | -69,697.52 | 19,167.58 | |
| Govemment subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 124,464,054.70 | 101,686,984.15 | 356,943,995.55 | |
| 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 | 1,804,209.86 |
| acquiring the investment | ||||
| Gain/loss on entrusting others with investment or asset management | 14,623,990.55 | 59,041,599.98 | ||
| 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 | -11,435,425.33 | 66,046,481.62 | 66,680,503.61 | |
| Income from custodian charge obtained from entrusted operation | 707,547.18 | 8,973,818.33 | 8,022,209.26 | |
| Net amount of non-operating income and expense except the aforesaid items | 10,172,838.56 | -29,905.76 | -9,601,776.32 | |
| Other non-recurring Gains/loss items | 552,086.75 | |||
| Less :Influenced amount of income tax | 20,174,896.94 | 22,693,220.73 | 52,541,535.96 | |
| Influenced amount of minor shareholders’ equity (after tax) | 4,628,919.46 | 17,351,288.93 | 31,172,338.08 | |
| Total | 117,732,033.11 | 195,604,771.14 | 340,154,435.50 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.□ Applicable√ Not applicableNone of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the informationdisclosure 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 PeriodWhether the company needs to comply with the disclosure requirements of the particular industryNo
The Company is a leading manufacturer of optoelectronic display materials and a comprehensive serviceprovider of intelligent manufacturing. In the field of optoelectronic display materials, With a liquid crystal glasssubstrate production capacity ranked first in China and fourth in the world, the Company makes a horizontallayout in cover glass originals, cambered cover glass, optical films, color filters, sapphire and other keyoptoelectronic display materials and stands out with an industrial cluster advantage; in high-end equipmentmanufacturing, the Company takes advantage of the technology spillover effect of its independently developedcomplete-set glass substrate manufacturing equipment to fulfill an in-depth exploration for high-end intelligent
equipment in the optoelectronic industry chain while extending the high-end equipment manufacturing business toa variety of areas and acting as its important income and profit source; in new energy automobile, the Companytakes Sunlong Bus as carrier to spare no effort to promote the development of such sectors as new energy busesand logistics vehicles and work hard to build the new energy automobile business to its another important incomeand profit source; in addition, the Company develops its main businesses in conjunction with its buildinginstallation and electronic communication seen as value-added businesses which supplement its main businesses.I. Optoelectronic Display Materials Business System1. LCD glass substrate businessThe liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, withextremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set ofliquid crystal glass substrate production equipment, the company took the lead in breaking the internationalmonopoly and achieved the home-making of liquid crystal glass substrate. The Company is the only enterprise inChina that masters the two kinds of glass substrate production processes-namely overflow fusion method and thefloating method-at the same time. Currently, the Company possesses four production bases of liquid crystal glasssubstrate respectively located in Zhengzhou, Shijiazhuang, Wuhu and Fuzhou, covering G5, G6, and G8.5TFT-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 inChina and ranks fourth in the world.
2. Other display material businessTo strengthen the competitiveness and profitability of its business of display materials and comply with theOLED 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 andother 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-processhigh-aluminum cover glass substrate original production line with a high-aluminum cover glass substrate originalproduction capacity ranked first in China and third in the world; cambered cover glass is also known as 3D coverglass and characterized by curving flexibility, thinness, transparency, cleanliness, fingerprint resistance, dazzleresistance, weathering resistance, etc. and can promote the touch feelings of intelligent terminal products. Thecambered cover glass production line with a production capacity of nearly 5 million sheets built by the Companyin 2018 has been available for production and sales in batches. Applicable to flexible display, this product is oneof powerful measures taken by the Company to comply with the OLED flexible display development trend; theCompany's optical film products can cover diffusion, reflection, prism, composite prism and other sub-areas andare mainly used in TFT-LCD backlight; color filter is a key component for LCD colorization and the Company'sstaple is G5 color filters; sapphire is extensively applied in LED substrate materials and optical elements amongother 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 applicationprospects 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--industrialapplication of graphene. In the report period, the Company successfully kept pace with University of Manchesterof UK and other famous universities and scientific research institutions in the world regarding industrial
application of graphene and sped up improving development of its own products using graphene byinternationally advanced equipment and technical reserves. Based on such four developed industrial product linesas graphene-based lithium ion battery, graphene electric heating, graphene energy-saving illumination andgraphene anti-corrosion coating, the Company made breakthroughs in techniques of preparation of high-qualitygraphene and its derivative raw materials and kept actively exploring new techniques for preparation of grapheneand other two-dimensional materials. At the moment, the Company's products of industrial application ofgraphene mainly cover all kinds of graphene products, graphene-clad anode materials, graphene-based lithium ionbattery, graphene high-power LED series light, graphene intelligent electric heating, graphene anti-corrosioncoating, graphene-based solid-state flexible lithium ion battery and other products, some of which have beensupplied 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 internationalcomprehensive mold regarding production equipment and technology and becomes China's only company that hasa complete-set liquid crystal glass substrate production process and equipment manufacturing capacity at the sametime. After years of development, the Company has completed an in-depth exploration for high-end intelligentequipment in optoelectronic industry chain and kept developing the business market of high-end equipment with ahigh technology and additional value by the technology spillover effect of its independently developedcomplete-set glass substrate production equipment in the context that equipment substitutes labor and meetsintelligent efficient production in national industrial manufacturing. Step by step, it has become a hi-techequipment 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 andOLED panel display industry. Besides, the Company reached out to intelligent platform robotics expected torender a new driver to steady development of its high-end equipment business through M&A of SanbaoInnovation 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. Atthe moment, Sunlong Bus's new energy automobile products including BEV, hybrid, and fuel cell and other newenergy commercial vehicles are mainly oriented in Mainland China (save Qinghai and Tibet) and sold in batchesto South Korea, Southeast Asia, Middle East, South America, and Africa among other regions. In 2018, SunlongBus was ranked in the eighth place for the eighth time regarding sales; by sub-area, Sunlong's new energyhighway 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 manufacturingin 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, wherein10m and 12m urban hydrogen cell buses were successfully incorporated into List of Recommended Types of NewEnergy 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 theCompany's new energy automobile business.IV. Other businesses1. Construction & installation business
The Company runs its building installation business supplementing its main businesses in a variety of models
such as integrated underground pipe gallery, municipal infrastructure, sponge city, and smart city based on otherkey sectors, provides infrastructure and construction engineering services in new materials, energy-savingenvironmental protection, bridge engineering and other areas and makes intelligent products and quality servicesin 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 Companyintegrates high-end equipment and liquid crystal display materials customer resources and uses its maturemarketing channels to keep increasing import and export channels for liquid crystal display modules, memorychips, high-end peripheral and complete-built-unit electronic products and render quality integrated services forcustomers with personalized needs.
II.Major Changes in Main Assets1.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 applicableⅢ.Analysis On core CompetitivenessWhether the company needs to comply with the disclosure requirements of the particular industryNo
1.Strong ability of independent R & D and innovationBased on years of industrial development and experience, Tunghsu Optoelectronic keeps strengthening itsindependent innovation capacity, highlights cooperation and exchange with famous national and internationalscientific research institutions and specialized universities and colleges, and builds an integrated"industry-university-research" scientific research cooperation mechanism, which has founded a nationalengineering 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&Dsupport to its sustainable development.Till this date, the Company and its holding shareholders have obtained and applied for more than 2,400independent intellectual properties pertaining to liquid crystal glass substrate, high-aluminum float-process coverglass, high-end equipment manufacturing, complete-built-unit manufacturing, graphene product making, etc.Herein the Company's wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, ZhengzhouXufei, Shijiazhuang Xuxin, and Sichuan Xuhong, holding shareholder Tunghsu Group, Beijing University ofTechnology and Wuhan University of Technology worked together to complete projects of "key techniques forhighly uniform ultra-clean glass substrate for optoelectronic display, equipment development andindustrialization" and "complete-set techniques for mass production of high-strength ultra-thin float-processaluminosilicate screen protection glass, application and development" which won the first prize regardingsubstrates 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 locatedat Zhengzhou, Shijiazhuang, Yingkou, Wuhu and Fuzhou for making a full range of G5, G6 and G8.5 TFT-LCDliquid crystal glass substrate products with a mass production capacity steadily ranked in the first place in Chinaand fourth place in the world and production lines for such key optoelectronic display materials as high-aluminumcover glass, color filter and sapphire. As all its production lines are put into production one after another, theCompany has seen a year-on-year rise of market share in national optoelectronic display materials, its scalebenefit 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 inoffering downstream customers and assuring profitability of its key optoelectronic display materials.3. The advantages of integration of endogenous and extension industrial chainsRelying on the controlling shareholder Tunghsu Group’s more-than-20 years’ experience and technologicalaccumulation, the Company, through the endogenous development method, gradually grew into a leadingoptoelectronic 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 theeffect of “1+1>2”, and it has successively carried out the horizontal and vertical industrial chain integration for theoptoelectronic display materials chains and the high-end equipment manufacturing industry chains, thus addingnew 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 establishedfactories in provinces including Hebei, Henan, Anhui, Sichuan, Jiangsu,Fujian and Liaoning , with the industrial
layout having the economies of scale, and for one hand, it has contributed a large amount of tax revenue to localgovernment and provided a large number of jobs, and for another hand, it has maintained close cooperation withmajor customers such as BOE. Upon the M&A of Sunlong Bus, the Company has set out to invest and build newenergy automobile industry bases in Guangxi, Sichuan, Jiangsu and elsewhere and conduct profound cooperationwith the preceding areas.the synergy effect between the company's photoelectric display materials and intelligentmanufacturing business gradually became evident, thus gradually forming the business model with comprehensivesales and synergistic effect, so that the company’s overall risk resistance capacity and comprehensivecompetitiveness have been improved.5. Highly-efficient management and decision-making mechanismSince Tughsu Group became the controlling shareholder, the company's management system has achieved athorough transition from the state-owned enterprise to a private enterprise. The company has continuouslyimproved its incentive system and remuneration system, and the company has garnered a large number of elitesand talents as the company has set up the strict and attractive assessment mechanism, rolled out two employeestock ownership plans and the stock incentives with restrictive-conditions and other flexible and efficient ways tomotivate the talents. Meantime, the management accurately and incisively studied and judged the market trendsand industrial development direction, quickly and flexibly seized opportunities, mobilized the talents andorganized the resources by marketization means, enabling that the company efficiently entered the strategicemerging 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 hascontinuously spawned the productivity for the company, with the advantages becoming more obvious.
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 productionand operation activities and advanced all the work concerning operation plans worked out by its board ofdirectors. In 2018, the Company kept innovating based on the prior results and focused on technicalinnovation to proceed with upgrading and growth of the existing industry. In the context that industrialcollaboration and cluster effect drove each other, the Company further optimized its industry chain layout inoptoelectronic display materials, high-end intelligent manufacturing, new energy automobile and grapheneand 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 implementeda net profit attributable to listed company shareholders of RMB 2.164 billion, up 25.05% compared with2017.(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 thedemand of liquid crystal panels, leading a steady development in its glass substrate business. At the moment, theCompany 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 G8.5liquid crystal glass substrate products and can provide high-quality glass substrate products for downstream panelcustomers with different dimension needs. In compliance with the development trend and technical reform ofjumbo and multi-screen times, the Company effectively yield and output rate of jumbo liquid crystal glasssubstrates, lowers production cost and boosts stable growth of performance. In the report period, the Companytook advantage of strengths of multiple dimensions and types of liquid crystal glass substrate products and fullcoverage 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 salesincome of RMB 4.716 billion in the year. In the report period, the project of "key techniques for highly uniformultra-clean glass substrate for optoelectronic display, equipment development and industrialization" which theCompany's wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, Zhengzhou Xufei, andShijiazhuang Xuxin got involved in won the first prize regarding substrates in the 2018 "National Award forScience 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 thatflexible display screens will boom in the future. In the context, the Company complies with the OLED flexibledisplay screen trend and makes an optimal horizontal layout in high-aluminum cover glass substrate, cambered
cover glass, optical film, color filter and other key optoelectronic display materials that apply to flexible displayarea. In the report period, the Company implemented bulk supply to downstream, which became a newperformance growth point step by step.
In 2018, the Company's wholly-owned subsidiary Xuhong Optoelectronics built and put into production andsales a cover glass production line for cambered display with an annual capacity of nearly 5 million sheets. Its bestproduct "Panda King" cover glass made a significant breakthrough in flexibility--implementing 360° bending andbreaking the international technical monopoly. Characterized by fall resistance, scratch resistance, hightransmittance, high touch sensitivity, etc., "Panda King" won the first prize of 2018 Sichuan Patent Award and wassuccessfully 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, BielOptoelectronics, 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 screenprotection glass, application and development" which Xuhong Optoelectronics got involved in won the secondprize regarding covers in the 2018 "National Award for Science and Technology Progress" awarded by the StateCouncil 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 trialproduction, 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 integratedlinkage, the Company entered into a Manchester with British University of Manchester and UG2M to address keyproblems in product engineering at the current stage and accelerate improving its own product developmentsystem based on worldwide advanced equipment and top technical reserves of University of Manchester. TheCompany established a partnership with UG2M--a British company taking the lead in graphene to jointly driveindustrialization of graphene and technical promotion in this respect and incubate products applied in thegraphene 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 MudanjiangMingshuo 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 itsown outstanding advantages to further promote its mass industrialization which will have a positive impact on thebusiness performance of the Company's graphene business sector. In 2018, the Company's graphene businesssector 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'shigh-end equipment manufacturing in recent years and guided by a good policy environment, the Company hascompleted an in-depth exploration for high-end intelligent equipment in optoelectronic industry chain and shiftedits spending from traditional sectors to strategic emerging sectors and development from the equipmenttechnology market needed to the business market of high-end equipment with a high technology and additionalvalue. Step by step, it has become a hi-tech equipment manufacturer that provides design, R&D, andmanufacturing of high-end intelligent equipment, semiconductor equipment, and automatic production lineequipment for high-end customers in TFT-LCD and OLED panel display industry. The Company spares no effortto foster and develop the high-end intelligent equipment manufacturing seen as a strategic option to seizeeconomic and technological development commanding height in the future. In the report period, the Company
acquired Sanbao Innovation to reach out to intelligent manufacturing service robotics from high-end equipmentmanufacturing. As a result of the industrial upgrading, the Company improved its competitive edge. And in thewake 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 butsteadily rising operating income of RMB 8.388 billion, attributable to orders for high-end equipment includingoptoelectronic 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 downturnOnly the toughest grass can stand strong winds; fire is the test of gold. In review of the 2018 new energy busmarket, in the context of tighter subsidy policy, restricted capacity increase and slowdown in technical updatingand upgrading, emerging and booming Sunlong Bus built a new pattern by its own comprehensive strength in thisround 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, theCompany's hydrogen cell bus won the bid for the Zhangjiakou downtown bus purchase project to provide greentravel services for citizens of Zhangjiakou during the 2022 Beijing-Zhangjiakou Olympic Winter Games and putinto practice the philosophy of green Olympic Winter Games. Till the end of the report period, it covered 8-12mmajor types of hydrogen cell buses, among which, 10m and 12m hydrogen cell city buses were successfullyincorporated into the List of Recommended Types of New Energy Automobiles in Publicity and Application andmany hydrogen cell city buses were displayed at international exhibitions. In the corresponding period, theCompany's wholly-owned subsidiary Guangxi Sunlong became a military supplier of Back Service Department ofCentral Military Commission, driving the Company's new products to be steadily launched on military supplymarket and assuring the Company's strategic development. Besides, the Company is planning a new energyautomobile industry base layout covering East China, West China, South China and North China and building aTunghsu New Energy Automobile Industry Cluster. After this project is completed and put into production, theCompany's new energy automobile business sector will act in line with the situation, boosting development ofChina's new energy automobile industry and driving development of new energy, new materials, Internet ofThings, 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 electroniccommunication business
Building installation engineering business and electronic communication business supplement the Company'smain businesses. In the report period, the Company run its building installation business by providinginfrastructure 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 eachother in a variety of models such as integrated underground pipe gallery, municipal infrastructure, sponge city, andsmart city based on other key sectors to boost its growth. In addition, the Company maintained an ever-risingmomentum in the electronic communication business. Under the industrial collaboration effect, the Companymade use of high-end equipment and liquid crystal display materials customer resources and its mature marketingchannels 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 withpersonalized needs. In 2018, the Company's building installation engineering business and electroniccommunication business implemented an operating income of RMB 5.28 billion and RMB 3.63 billionrespectively.
II. Main business analysis1. GeneralRefer 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 | 28,211,700,021.12 | 100% | 17,276,969,039.03 | 100% | 63.29% |
| On industry | |||||
| Optoelectronic display material | 4,715,995,341.60 | 16.72% | 3,385,250,589.42 | 19.59% | 39.31% |
| Equipment and Technology serves | 8,388,418,369.14 | 29.73% | 7,239,942,351.91 | 41.91% | 15.86% |
| Industrial application of graphene | 181,389,128.68 | 0.64% | 67,322,912.63 | 0.39% | 169.43% |
| New energy vehicle | 4,257,501,557.67 | 15.09% | 2,513,425,799.56 | 14.55% | 69.39% |
| Construction Installation | 5,280,053,280.29 | 18.72% | 1,896,347,858.88 | 10.98% | 178.43% |
| Electronic communication products | 3,629,930,835.74 | 12.87% | 2,141,375,356.27 | 12.39% | 69.51% |
| Other | 1,758,411,508.00 | 6.23% | 33,304,170.36 | 0.19% | 5,179.85% |
| On Products | |||||
| Optoelectronic display material | 4,715,995,341.60 | 16.72% | 3,385,250,589.42 | 19.59% | 39.31% |
| Equipment and Technology serves | 8,388,418,369.14 | 29.73% | 7,239,942,351.91 | 41.91% | 15.86% |
| Industrial application of graphene | 181,389,128.68 | 0.64% | 67,322,912.63 | 0.39% | 169.43% |
| New energy vehicle | 4,257,501,557.67 | 15.09% | 2,513,425,799.56 | 14.55% | 69.39% |
| Construction Installation | 5,280,053,280.29 | 18.72% | 1,896,347,858.88 | 10.98% | 178.43% |
| Electronic communication products | 3,629,930,835.74 | 12.87% | 2,141,375,356.27 | 12.39% | 69.51% |
| Other | 1,758,411,508.00 | 6.23% | 33,304,170.36 | 0.19% | 5,179.85% |
| Area | |||||
| China | 25,855,603,599.82 | 91.65% | 16,240,515,360.46 | 94.00% | 59.20% |
| Hongkong,Macauand Taiwan | 2,005,739,741.59 | 7.11% | 1,007,002,901.40 | 5.83% | 99.18% |
| Overseas | 350,356,679.71 | 1.24% | 29,450,777.17 | 0.17% | 1,089.63% |
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 Profitwith Profit over 10%
√ Applicable □ Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industryNo
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 | 4,715,995,341.60 | 3,745,308,978.44 | 20.58% | 39.31% | 54.72% | -7.91% |
| Equipment and Technology serves | 8,388,418,369.14 | 6,644,128,423.07 | 20.79% | 15.86% | 24.07% | -5.24% |
| New energy vehicle | 4,257,501,557.67 | 3,301,027,932.47 | 22.47% | 69.39% | 64.56% | 2.27% |
| Construction Installation | 5,280,053,280.29 | 4,774,880,498.47 | 9.57% | 178.43% | 173.49% | 1.63% |
| Electronic communication products | 3,629,930,835.74 | 3,542,442,721.95 | 2.41% | 69.51% | 69.52% | -0.01% |
| On Products | ||||||
| Optoelectronic display material | 4,715,995,341.60 | 3,745,308,978.44 | 20.58% | 39.31% | 54.72% | -7.91% |
| Equipment and | 8,388,418,369.14 | 6,644,128,423.07 | 20.79% | 15.86% | 24.07% | -5.24% |
| Technology serves | ||||||||
| New energy vehicle | 4,257,501,557.67 | 3,301,027,932.47 | 22.47% | 69.39% | 64.56% | 2.27% | ||
| Construction Installation | 5,280,053,280.29 | 4,774,880,498.47 | 9.57% | 178.43% | 173.49% | 1.63% | ||
| Electronic communication products | 3,629,930,835.74 | 3,542,442,721.95 | 2.41% | 69.51% | 69.52% | -0.01% | ||
| Area | ||||||||
| Chinese Mailand | 25,855,603,599.82 | 20,954,288,505.47 | 18.96% | 59.20% | 65.10% | -2.89% | ||
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness 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 | 3,745,308,978.44 | 16.14% | 2,420,764,896.51 | 17.70% | 54.72% |
| Equipment and Technology serves | Operation costs | 6,644,128,423.07 | 28.63% | 5,354,959,245.05 | 39.16% | 24.07% |
| Industrial application of graphene | Operation costs | 108,462,263.68 | 0.47% | 27,298,093.82 | 0.20% | 297.33% |
| New energy vehicle | Operation costs | 3,301,027,932.47 | 14.23% | 2,005,947,709.45 | 14.67% | 64.56% |
| Construction Installation | Operation costs | 4,774,880,498.47 | 20.58% | 1,745,898,401.73 | 12.77% | 173.49% |
| Electronic | Operation costs | 3,542,442,721.95 | 15.27% | 2,089,646,020.25 | 15.28% | 69.52% |
| communication products | ||||||
| Other | Operation costs | 1,087,827,974.30 | 4.69% | 29,973,279.43 | 0.22% | 3,529.33% |
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 | 157,598,587.50 | 67.00% | Enterprise consolidation not under the same control | May 30, 2018 | Acquisition of control | 7,659,108.35 | -12,733,040.13 |
| Zhongcheng National construction co., Ltd. | May 30, 2018 | 140,000,000.00 | 70.00% | Enterprise consolidation not under the same control | March 30, 2018 | Acquisition of control | -7,172,706.59 | |
| Huaxi Nanchong Automobile Co., Ltd. | April 4, 2018 | 56,000,000.00 | 100.00% | Enterprise consolidation not under the same control | April 4, 2018 | Acquisition of control |
(2) Consolidation Cost and GoodwillIn RMB
| Consolidation Cost | Shenzhen Sanbao Innovation Intelligence Co., Ltd. | Zhongcheng National construction co., Ltd. | Huaxi Nanchong Automobile Co., Ltd. |
| --Cash | 157,598,587.50 | 39,999,996.00 | 44,800,000.00 |
| --Other account payable | 100,000,004.00 | 11,200,000.00 | |
| Total consolidation cost | 157,598,587.50 | 140,000,000.00 | 56,000,000.00 |
| Less：Reduction: Obtained Definable Net Assets Fair Proportion | 88,710,182.00 | 6,730,432.38 | 83.60 |
| Amount of merging cost which is less than the fair value proportion of obtained net identifiable asset | 68,888,405.50 | 133,269,567.62 | 55,999,916.40 |
(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 | 127,075,645.81 | 127,075,645.81 |
| Account receivable | 203,360.00 | 203,360.00 |
| Inventories | 26,320,943.47 | 18,724,138.92 |
| Fixed assets | 11,205,970.95 | 9,391,876.78 |
| Intangible assets | 53,241,307.46 | 53,849,371.07 |
| Prepayments | 318,723.00 | 318,723.00 |
| Other account receivable | 5,297.05 | 5,297.05 |
| Other current assets | 7,989,608.01 | 7,989,608.01 |
| Deferred income tax asset | 154,125.90 | 2,110.00 |
| Deferred income tax Liabilities | 2,352,724.68 |
| Advance receipts | 410,909.49 | 410,909.49 |
| Employees’ wage payable | 59,926.94 | 59,926.94 |
| Tax payable | 7,677.39 | 7,677.39 |
| Other account payable | 91,280,486.44 | 91,280,486.44 |
| Net assets | 132,403,256.71 | 125,801,130.38 |
| Less：Minority interest | 43,693,074.71 | 41,514,373.03 |
| Acquire net assets | 88,710,182.00 | 84,286,757.35 |
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 | 1,854,947.92 | 1,854,947.92 | 83.60 | 83.60 |
| Fixed assets | 41,040.82 | 44,833.14 | ||
| Intangible assets | 14,204,413.89 |
| Prepayments | 284,956.45 | 284,956.45 |
| Other receivable | 171,120.78 | 171,120.78 | ||
| Other current assets | 28,559.54 | 28,559.54 |
| Deferred income tax asset | 948.08 | |||
| Account payable | 4,200.00 | 4,200.00 |
| Deferred income tax liability | 3,551,103.47 |
| Employees’ wage payable | 1,261,899.22 | 1,261,899.22 | ||
| Other payable | 2,153,881.38 | 2,153,881.38 |
| Net assets | 9,614,903.41 | -1,035,562.77 | 83.60 | 83.60 |
| Less：Minority interest | 2,884,471.03 | -310,668.83 |
| Acquire net assets | 6,730,432.38 | -724,893.94 | 83.60 | 83.60 |
2. Business combination under the same control(1) Business combination under the same control during the reporting period
In RMB10,000
| 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 comparison period | Net profit of the merged party during the comparison period |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 65.00% | Parent Company | June 30,2018 | Pay the consideration and control the operation | 27,289,664.99 | -11,435,425.33 | 16,069,429.21 | -13,043,965.22 |
（2） Consolidation Cost
| Consolidation Cost | Tunghsu (Yingkou) Optoelectronic Display Co., Ltd |
| -Cash | 195,525,500.00 |
（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 | 49,876,382.38 | 85,581,351.01 |
| Notes receivable & account receivable | 26,247,411.94 | 27,508,065.58 |
| 25,751,148.63 | 23,963,131.18 |
| Fixed assets | 330,341,703.53 | 335,451,284.12 |
| Intangible assets | 24,988,633.63 | 25,314,850.99 |
| Prepayments | 498,425.88 | 858,504.05 |
| Other receivable | 32,000.00 | 2,000.00 |
| Other current assets | 75,603,084.09 | 74,056,644.01 |
| Construction in process | 586,201,554.22 | 570,609,032.67 |
| Deferred Income tax assets | 4,807,992.36 | 5,334,663.88 |
| Other non-current assets | 1,985,104.15 | 1,985,104.15 |
| Notes payable & account payable | 30,134,535.09 | 101,667,530.90 |
| Advance Payments | 11,593.50 | 9,537.00 |
| Employees’ wage payable | 296,037.13 | 249,318.39 |
| Tax payable | 1,840,851.65 | 280,315.37 |
| Interest payable | 1,075,377.78 | |
| Other payable | 188,164,916.74 | 124,403,423.83 |
| Non-current liabilities due 1 year | 36,316,392.68 | 36,316,392.68 |
| Long-term loans | 420,000,000.00 | 425,000,000.00 |
| Deferred Income | 84,997,214.64 | 85,655,410.98 |
| Other non-current liabilities | 108,000,000.00 | 108,000,000.00 |
| Net assets | 256,571,899.38 | 268,007,324.71 |
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 28,2018 | Received the consideration, completed the transfer of property rights, lost control | 3,182,206.12 |
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. Subsidiary increased due to new establishment in this period
（1）On March 8,2018,Shenzhen 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 RMB22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment HoldingCo., Ltd.Subscribet and pays RMB 12 million, holding 52.78% of the shares. Jiangxi University of Science andTechnology subscribet and pays RMB 10.7345 million , holding 47.22% of the shares.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30million and the paid-up capital of RMB 2 million.
（3）On May 17,2018, 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 ofRMB 100 million.
（4）On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30million and the paid-up capital of RMB 10,000.（5）On July 26,2018, 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 EquipmentCo., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-AnhuiXuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1000 million and the paid-upcapital of RMB10 million.(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’sReport Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main SupplierInformation of Main Customers
| Total sales amount to top 5 customers (Yuan) | 6,241,919,653.45 |
| 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 | 2,009,430,965.39 | 7.12% |
| 2 | Customer 2 | 1,342,569,568.48 | 4.76% |
| 3 | Customer 3 | 1,079,622,920.16 | 3.83% |
| 4 | Customer 4 | 958,146,403.75 | 3.40% |
| 5 | Customer 5 | 852,149,795.67 | 3.02% |
| Total | -- | 6,241,919,653.45 | 22.13% |
Other Notes :
□ Applicable √Not applicablePrincipal suppliers
| Total purchase of top 5 Suppliers（Yuan） | 4,007,035,725.06 |
| 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 | 1,148,486,354.79 | 5.48% |
| 2 | Supplier 2 | 1,017,794,292.80 | 4.85% |
| 3 | Supplier 3 | 691,932,790.49 | 3.30% |
| 4 | Supplier 4 | 663,319,885.26 | 3.16% |
| 5 | Supplier 5 | 485,502,401.72 | 2.31% |
| Total | -- | 4,007,035,725.06 | 19.11% |
Notes
□ Applicable √Not applicable
3.Expenses
In RMB
| 2018 | 2017 | Increase/Decrease(% | Notes |
| ) | ||||
| Sale expenses | 334,476,301.51 | 209,160,183.73 | 59.91% | Mainly due to the increase in freight costs such as business growth. |
| Administration expenses | 653,479,277.58 | 393,125,009.94 | 66.23% | The main reason for the increase in 2018 compared to 2017 is the increase in labor and depreciation. |
| Financial expenses | 722,695,173.66 | 753,977,500.45 | -4.15% | |
| R & D expenses | 572,089,634.30 | 256,991,555.91 | 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 toR&D spending, wherein the R&D spending on high-end manufacturing increased on account of the Company'sM&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) | 1,735 | 1,397 | 24.19% |
| Proportion of Research and Development persons | 21.98% | 17.61% | 4.37% |
| Amount of Research and Development Investment ( Yuan) | 596,044,201.02 | 385,731,049.90 | 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) | 21,724,530.97 | 15,397,704.97 | 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 theBusiness Income Year on Year□ Applicable √ Not applicableExplanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rateand Its Reasonableness
□ Applicable √ Not applicable5.Cash Flow
In RMB
| Items | 2018 | 2017 | Increase/Decrease(%) |
| Subtotal of cash inflow received from operation activities | 25,914,974,422.73 | 18,081,214,780.67 | 43.33% |
| Subtotal of cash outflow received from operation activities | 25,526,722,418.21 | 16,828,036,269.36 | 51.69% |
| Net cash flow arising from operating activities | 388,252,004.52 | 1,253,178,511.31 | -69.02% |
| Subtotal of cash inflow received from investing activities | 4,760,814,599.23 | 10,891,847,680.49 | -56.29% |
| Subtotal of cash outflow for investment activities | 11,405,238,586.80 | 16,644,954,442.07 | -31.48% |
| Net cash flow arising from investment activities | -6,644,423,987.57 | -5,753,106,761.58 | -15.49% |
| Subtotal cash inflow received from financing activities | 10,927,058,792.58 | 16,584,610,295.08 | -34.11% |
| Subtotal cash outflow for financing activities | 14,874,380,555.60 | 12,487,573,196.50 | 19.11% |
| Net cash flow arising from financing activities | -3,947,321,763.02 | 4,097,037,098.58 | -196.35% |
| Net increase in cash and cash equivalents | -10,198,023,465.21 | -423,591,772.55 | -2,307.51% |
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 applicableIII.Analysis of Non-core Business
√ Applicable □ Not applicable
In RMB
| Amount | Proportion in total profit | Explanation of cause | Sustainable (yes or no) | |
| Investment gains | 80,925,191.79 | 2.96% | Mainly due to the investment income of the joint venture | Sustainable |
| Fair value change gains and losses | 0.00% |
| Asset impairment | 93,480,733.09 | 3.41% | Accounts receivable and impairment of inventories | |
| Non-operating incme | 19,063,270.76 | 0.70% | Occasional income | Not sustainable |
| Non-operating expenses | 8,892,705.00 | 0.32% | Sporadic expenditure | Not sustainable |
| Other incme | 251,303,953.08 | 9.18% | Government subsidy | Partially unsustainable |
III. Condition of Asset and Liabilities1.Condition of Asset Causing Significant Change
In RMB
| End of 2018 | End of 2017 | Proportion increase/decrease | Notes to the significant change | |||
| Amount | Proportion in the total assets(%) | Amount | Proportion in the total assets(%) | |||
| Cash and bank balances | 19,807,094,397.16 | 27.29% | 27,456,759,768.86 | 40.02% | -12.73% | none |
| Accounts receivable | 14,352,781,895.39 | 19.78% | 7,873,419,684.42 | 11.48% | 8.30% | none |
| Inventories | 3,510,786,666.85 | 4.84% | 4,909,570,356.36 | 7.16% | -2.32% | none |
| Real estate Investment | 686,993,881.02 | 0.95% | 58,229,439.86 | 0.08% | 0.87% | none |
| Long-term equity investment | 2,174,347,969.22 | 3.00% | 2,130,640,158.90 | 3.11% | -0.11% | none |
| Fixed assets | 9,634,463,323.77 | 13.27% | 11,379,727,456.13 | 16.59% | -3.32% | none |
| Construction in process | 5,013,941,980.61 | 6.91% | 3,667,972,406.42 | 5.35% | 1.56% | none |
| Short-term loans | 8,361,106,651.33 | 11.52% | 5,712,826,382.20 | 8.33% | 3.19% | none |
| Long-term loans | 2,741,589,600.00 | 3.78% | 5,209,726,250.77 | 7.59% | -3.81% | none |
| Advance payment | 5,215,414,219.51 | 7.19% | 2,021,119,950.95 | 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 PeriodThe restricted assets till the end of the report period are set out as follows:
1. Restricted monetary funds amounted to RMB 4,890,457,106.12;2. The book value of fixed assets arranged with a mortgage or incurred by financial leasing was RMB9,130,840,228.68 till the end of the report period;
3. Intangible assets arranged with a mortgage amounted to RMB 352,121,698.93;4. Construction-in-progress arranged with a mortgage amounted to RMB 3,143,663,638.12;5. Investment real estate as collateral amounted to RMB 678,833,230.08;6. Account receivable as collateral amounted to RMB 455,136,717.34;7.Inventory as collateral amounted to RMB317,769,074.78.IV. Investment situation1. General
√ Applicable □ Not applicable
| Investment Amount in 2018(Yuan) | Investment Amount in 2017(Yuan) | Change rate |
| 6,950,053,928.88 | 9,606,133,252.12 | -27.65% |
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
| Name of the Company Invested | Main Business | Investment Way | Investment Amount | Share Proportion % | Capital Source | Partner | Investment Horizon | Product Type | Progress up to Balance Sheet Date | Anticipated Income | Gain or Less or the Current Investment | Whether to Involve in Lawsuit | Date of Disclosure(Note 5) | Disclosure Index |
| Shenzhen Sanbao Innovation Intelligence Co., Ltd. | High-end intelligent equipment | Purchase | 157,750,000.00 | 67.00% | Self | Lin Lude, Zhuang Yongjun, Shenzhen Sanbao Innovation and Technology Partnership (Limited Partnership) | Long-term | High-end intelligent equipment | Completed | 7,500,000.00 | -8,754,472.52 | No | May 29,2018 | http://www.cninfo.com.cn |
| Tunghsu | Glass subst | Purchase | 195,525,500.0 | 65.00% | Self | Yingkou | Long-term | Glass substrat | Completed | 0.00 | 259,101.72 | No | June 13,201 | http://www.cni |
| （Yingkou）Optoelectronic Display Co., Ltd. | rates | 0 | Coastal Development and Construction Group Co., Ltd., Minmetals (Yingkou) Industrial Park Development Co., Ltd. | es | 8 | nfo.com.cn | ||||||||
| Shanghai Sunlong Bus Co., Ltd. | New energy bus | Increase capital | 2,100,000,000.00 | 100.00% | Rised funds | No | Long-term | New energy bus | Completed | 400,000,000.00 | 433,305,590.26 | No | March 27,2018 | http://www.cninfo.com.cn |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd | Glass cover plate | Increase capital | 800,000,000.00 | 100.00% | Rised funds | No | Long-term | Glass cover plate | Completed | 98,000,000.00 | 116,172,589.38 | No | March 27,2018 | http://www.cninfo.com.cn |
| Tunghsu Kunshan Display Materials Co., Ltd. | Glass substrate | Increase capital | 200,000,000.00 | 90.86% | Rised funds | Kunshan Development Zone Guotou Holdings Co., | Long-term | Glass substrate | Completed | 0.00 | -25,748,415.55 | No | December 8,2018 | http://www.cninfo.com.cn |
| Ltd. | ||||||||||||||
| Total | -- | -- | 3,453,275,500.00 | -- | -- | -- | -- | -- | -- | 505,500,000.00 | 515,234,393.29 | -- | -- | -- |
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period□ Applicable √ Not applicable4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicableNil（2）Investment in Derivatives□ Applicable √ Not applicableNil5.Application of the raised capital√ Applicable □ Not applicable（1）General application of the raised funds√ Applicable □ Not applicable
In 10,000 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 | Accumulative 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 Whereabouts of the Unused Raised Fund | Amount of the Raised Fund with over 2 Years’ Idling |
| 2013 | Directional add-issuance | 503,880 | 25,257.77 | 496,727.3 | 0 | 0 | 0.00% | 14.79 | Not applicable | 0 |
| 2015 | Directional add-issuance | 800,000 | 55,061.01 | 589,306.36 | 0 | 0 | 0.00% | 210,693.64 | Continue to invest | 0 |
| 2015 | Corporate bond | 100,000 | 0 | 100,000 | 0 | 0 | 0.00% | - | 0 | |
| 2016 | Directional add-issuan | 695,000 | 153,260.89 | 201,682.88 | 0 | 0 | 0.00% | 493,317.12 | Continue to invest | 0 |
| ce | ||||||||||
| 2017 | Directional add-issuance | 375,000 | 222,240.77 | 266,440.79 | 19,200 | 19,200 | 0.78% | 108,559.21 | Continue to invest | 0 |
| Total | -- | 2,473,880 | 455,820.44 | 1,654,157.33 | 19,200 | 19,200 | 0.78% | 812,584.76 | -- | 0 |
| Corporate bonds | ||||||||||
| In 2018,The 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 10,000 yuan
| Committed investment projects and investment | Project changed(including partial change) | Total raised capital invested as committed | Total investment after adjustment (1) | Amount infested in the reporting period | Accumulated amount invested at the end of the reporting period(2) | Investment progress ended the reporting period(%)(3)=(2)(1) | Date when the project has reached the predicted applicable 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 | 496,106.4 | 496,106.4 | 25,257.77 | 496,727.3 | 100.13% | December 31,2019 | 2,312.98 | Not applicable | No |
| Project of Production Line for the 5th-Generation CF for TFT-LCD | No | 300,000 | 300,000 | 55,061 | 92,769 | 30.92% | December 31,2019 | Not applicable | No | |
| Acquisition for 100% share rights of Xufei Optoelectronic | No | 177,000 | 177,000 | 0 | 177,000 | 100.00% | December 31,2015 | Yes | No | |
| Acquisition for 100% share rights of Xuxin Optoelectronic | No | 198,000 | 198,000 | 0 | 198,000 | 100.00% | December 31,2015 | Yes | No | |
| To supplement the | No | 125,000 | 125,000 | 0 | 121,537 | 97.23% | Not | No | ||
| circulating fund | applicable | |||||||||
| To supplement the circulating fund（Corporate bonds） | No | 100,000 | 100,000 | 0 | 100,000 | 100.00% | Not applicable | No | ||
| Project of Production Line for the 8.5th-Generation CF for TFT-LCD | No | 695,000 | 695,000 | 153,261 | 201,683 | 29.02% | December 31,2019 | Not applicable | No | |
| New energy bus and logistics vehicle production project | No | 220,000 | 220,000 | 141,132 | 141,132 | 64.15% | December 31,2019 | Not applicable | No | |
| Production of cover glass for curved display | No | 110,000 | 90,800 | 64,138 | 64,138 | 70.64% | December 31,2019 | Not applicable | No | |
| High aluminum silicon cover glass sheet production line upgrade project | Yes | 0 | 19,200 | 16,170 | 16,170 | 84.22% | December 31,2019 | Not applicable | No | |
| Payment for procurement of Sunlong's equity consideration | No | 40,000 | 40,000 | 0 | 40,000 | 100.00% | 0 | Yes | No | |
| Payment transaction fees and intermediary agency fees | No | 5,000 | 5,000 | 800 | 5,000 | 100.00% | Not applicable | No | ||
| Subtotal of Committed investment projects | -- | 2,466,106.4 | 2,466,106.4 | 455,819.77 | 1,654,156.3 | -- | -- | 2,312.98 | -- | -- |
| Investment of excessive raised capital | ||||||||||
| No | No | |||||||||
| Total | -- | 2,466,106.4 | 2,466,106.4 | 455,819.77 | 1,654,156.3 | -- | -- | 2,312.98 | -- | -- |
| 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 | |||||||||
| 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 examined andapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into Investment Project 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 7th board of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund to Replace 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 and adopted “Proposal on Using the Raised Fund to Replace 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 110.7478 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.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 300,000 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 funds from the raised funds RMB 6950 million of “the 8.5th Generation TFT-LCD Glass Substrate Production Line 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 300,000 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 deposited into 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. |
| 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 RMB10,000
| Project after changed | Corresponding original project | Total raised funds plans to invested after changed (1) | Amount actually invested in the period | Accumulative 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 | 19,200 | 16,170.4 | 16,170.4 | 84.22% | December 31,2019 | 0 | Not applicable | No |
| Total | -- | 19,200 | 16,170.4 | 16,170.4 | -- | -- | 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 | ||||||||
| 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 equity1. Sales of major assets□ Applicable √ Not applicableThe 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 | Transaction price(RMB 10,000) | Net profits contributed by the equities to the listed companies from the period-begin to the sold date (RMB 10,000) | Influence of the selling of the Company | Proportion on of the net profits of the contributed amount of the equities selling to the listed companies to the total amo9un | Pricing principles of the equities selling | Whether was the related transaction | Relation ship with the center party | Whether the involved equities all complete ed the ownership transfer | Whether execute as scheduled and if failed, should state the reasons and the adopted measure ments of the company | Disclosure date | Disclosure Index |
| t of the net profits | |||||||||||||
| TunghsuTechnology Group Co., Ltd. | Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | April 28,2018 | 55,000 | -1,487.57 | No | -0.55% | Based on audited net assets | Yes | Same parent company | Yes | Yes | April 14,2018 | http://www.cninfo.com.cn |
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies√ Applicable □ Not applicableSituation 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 Optoelectronic Equipment Technology Co.,Ltd. | Subsidiary | Equipment and technology Service | 1,000,000,000.00 | 13,755,386,995.54 | 2,935,961,082.24 | 3,601,268,014.77 | 1,152,126,380.88 | 993,962,972.35 |
| Tunghsu Construction Group Co., Ltd. | Subsidiary | Construction、Installation | 3,000,000,000.00 | 6,259,440,550.97 | 3,515,093,817.83 | 5,482,287,403.41 | 328,684,486.40 | 271,566,512.31 |
| Beijing Xufeng Real estate Co., Ltd. | Subsidiary | Building and construction Industry | 870,000,000.00 | 1,838,373,077.62 | 755,833,828.16 | 1,084,330,384.90 | 378,362,128.50 | 283,758,478.29 |
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | Subsidiary | Optoelectronic Display material | 1,650,000,000.00 | 4,802,479,829.41 | 2,174,401,242.30 | 1,385,295,105.07 | 106,711,140.46 | 88,567,927.59 |
| ShijiazhuangXuxin Optoelectronic Technology Co., Ltd. | Subsidiary | Glass substrate | 1,906,000,000.00 | 3,309,605,175.07 | 2,181,522,448.03 | 368,078,577.55 | 37,096,592.71 | 38,845,710.75 |
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | Subsidiary | Glass substrate | 2,000,000,000.00 | 4,137,331,483.74 | 2,970,732,149.39 | 1,366,699,357.80 | 66,407,612.97 | 49,196,247.99 |
| Shanghai Sunlong Bus Co., Ltd. | Subsidiary | New Energy Bus | 3,200,000,000.00 | 11,319,107,934.84 | 4,011,771,165.58 | 4,630,605,185.61 | 493,809,850.43 | 433,305,590.26 |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | Subsidiary | Optoelectronic Display material | 1,900,000,000.00 | 3,841,237,025.65 | 2,138,823,072.41 | 543,995,845.38 | 125,562,733.68 | 116,172,589.38 |
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 CompanyI. The Development Trend of the Industry
In optoelectronic display, a rising demand for the size of liquid crystal display screens in the liquid crystal
panel industry drove the size of glass substrate liquid crystal display screens in 2018. Studies show that if displayscreens are enlarged by 1.5 inches in average, capacity of a G8.5 liquid crystal panel production line will beabsorbed. The Company's glass substrate production can match the demand for liquid crystal panels, leading asteady growth in the performance of glass substrate business. In 2019, it is expected that supply of G8.5 liquidcrystal panels and ones with a larger size will predominate and remain major products needed on the consumermarket. IHS Markit predicts that the world's panel display area demand will rise about 6.4% to 228 million m
in2019, laying a solid foundation for the Company's development of business of optoelectronic display materialskerneled by glass substrates.
In new energy bus, the new energy automobile subsidy has plummeted and industrial pattern has been alteredin the wake of variation of the general trend. Nonetheless, driven by market under the policy instruction, SunlongBus--a typical bus company--has emerged and boomed to build a new pattern by its own comprehensive strengthin the bus industry. In 2019, the new energy subsidy policy will heavily tighten by about 50% in averagecompared with it was in 2018. Affected by the current scale benefit and provisions pertaining to tightened subsidypolicy 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 futuredevelopment, 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 displaymaterials 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 technicalinnovation to stabilize its business of optoelectronic display materials kerneled by liquid crystal glass substratewhile further extending and developing its businesses of high-end intelligent manufacturing, new energyautomobile and intelligent graphene application.
The Company will continue to push forward G8.5 production construction, enhance production quality andexpand coverage of production process based on the market demand to lay a solid foundation for its majorbusiness of glass substrate. Besides, in compliance with the OLED flexible display screen trend, the Companywill optimize and upgrade techniques in high-aluminum cover glass, cambered glass and sapphire among otherbusinesses, speed up technical innovation, and promote its core competitive edge to further increase the economicbenefit in the OLED flexible display area.
In 2019, on the ground of independent innovation, the Company will continue to enhance its R&D andmanufacturing abilities, give a play to industrial collaboration, and cover the entire intelligent manufacturingindustry 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 scientificresearch 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 willcontinue to carry forward such major efforts as "market development, cost reduction and benefit increase", mainlyinvolving the following work:
1. The Company will improve its G8.5 liquid crystal glass substrate production line construction andeffectively promote the yield of jumbo-sized liquid crystal substrates to lower the production cost and increase itseconomic benefit. Mainly by implementing the Fuzhou Xufu G8.5 Production Line Project and targeting at majornational 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 tostrengths of its peripheral business, increase business channels of optoelectronic display materials and equipment,
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 forwardconstruction of the three new energy automobile industry bases at Nanning, Mianyang and Suqian, build a "newenergy bus Sci-tech industry park" integrating R&D, innovation, manufacturing, promotion and publicity andspeed up completion and commissioning to ensure its sufficient capacity. In addition, the Company will complywith China's "Belt & Road" thought of development, increase international marketing channels and spending insales, and put into practice the green value philosophy of Sunlong Bus and the state-of-the-art new energytechniques.
4. The Company will promote technical R&D in the graphene battery and graphene-related sectors andcombine 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 suchprojects 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 toquickly advance all the work in cambered cover glass, color filter and sapphire production projects. On the otherhand, the Company will develop its industry chain upgrading system, prepared in terms of technology and R&Dfor meeting the market demand for flexible display screens.
6. By its brand strength, the Company will strengthen comprehensive market development ability of eachbusiness and promote the core competitiveness of its main businesses with effort to guarantee a steady growth inits income and profit.Ⅳ. Possible risks
1. Risk of macroeconomic cyclical fluctuationsThe optoelectronic display materials business centered on glass substrate relies on the LCD panelindustry, which is a cyclical industry and a downstream industry to the company. As the prosperity of the panelindustry is affected by the macroeconomic fluctuations, then if the panel price fluctuates sharply due to thedeterioration of the macroeconomic environment or the imbalance between the supply and the demand, thecompany may face the risk of industry downturn.
2. Risk of uncertainty in expected benefits of liquid crystal glass substrate projectAs the company's glass substrate production line projects have the features of large investment amount andlong construction period, then if there is a future risk occurred in the glass substrate industry and the company'sglass substrate production line construction projects can not fully achieve the mass production on schedule, thesales 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 anddownstream 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 whetherthe Company can continue to increase its market share and develop quality customers, indicating an impact on itsbusiness performance.3. Risk of technological upgrading alternativesThe company never stops the technical research and development and technology reserves, and has madebreakthroughs in many areas. However, if the downstream panel display industry undergoes major technologicalchanges and the company fails to achieve timely corresponding technological innovation, then the company willface 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
China is decreasing its new energy automobile subsidy standard, which will bring a certain impact on newenergy automobile product sales of Sunlong Bus in the future. If the new energy automobile subsidy policy istightened or any major adverse change happens to relevant industrial policies, it will cause an unexpected risk tobusiness development of Sunlong Bus in the future.X.Particulars about researches, visits and interviews received in this reporting period1.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 15,2018 | Other | Individual | Hebei Securities Regulatory Bureau Online Reception Day | |
| January 1,2018 | By Phone | Individual | Company telephone records | |
| Reception times | 1,958 | |||
| Reception agency amount | 35 | |||
| Reception personal number | 1,932 | |||
| Number of other objects received | 0 | |||
| Whether to disclose, reveal or disclose non-public material information | No | |||
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reservesFormulation, implementation and adjustment of profit distribution policy of common shares especially cashdividend policy during the reporting period√ Applicable □ Not applicableIn the report period, the common stock dividend distribution program of Tunghsu Optoelectronic was proposed bythe board of directors and approved by the general meeting of shareholders for implementation. Subject to theCompany's profitability, funding condition and future development demand among other factors, the cashdividend distribution program was worked out and approved at the general meeting of shareholders before beingdisclosed 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 intoshare capital in the past three years(with the reporting period inclusive):
1.In 2016,the company total share of 4,939,928,983 shares on December 31,2016 for base on the Company’s totalshare capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 Forevery 10 shares(including tax) , and no reserve would be converted into share capital.2.In 2017,the company total share of 5,730,250,118 shares on December 31,2017 for base on the Company’s totalshare capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 Forevery 10 shares(including tax) , and no reserve would be converted into share capital.3.In 2018,the company total share of 5,730,250,118 shares on December 31,2018 for base on the Company’s totalshare capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 Forevery 10 shares(including tax) , and no reserve would be converted into share capital.Dividend distribution of the latest three years
In RMB
| 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 | 401,117,508.26 | 2,163,607,505.39 | 18.54% | 0.00 | 0.00% | 401,117,508.26 | 18.54% |
| 2017 | 401,117,508.26 | 1,730,174,564.57 | 23.18% | 0.00 | 0.00% | 401,117,508.26 | 23.18% |
| 2016 | 345,795,028.81 | 1,301,466,332.10 | 26.57% | 0.00 | 0.00% | 345,795,028.81 | 26.57% |
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positivehowever not cash dividend distribution proposal has been put forward.□Applicable√ Not applicableII.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) | 5,730,250,118 |
| Cas bonus distribution(RMB)(Tax included) | 401,117,508.26 |
| Cash bonus distrubution n other way(i.e.share buy-backs)(RMB) | 0.00 |
| Total cash bonus(including other ways((RMB) | 401,117,508.26 |
| Distributable profits(RMB) | 467,252,231.11 |
| 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 | |
I. Commitments to fulfill the situation1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, seniormanagement personnel and other related parities.
√ Applicable □ Not applicable
method of profit distribution by cash dividend. 2. Provided that conditions for cash dividend distribution are met, if the Company'soperating income and net profit increase rapidly and the board of directors considers the Company's equity scale and structure to bereasonable, a plan for stock dividend distribution may be proposed and implemented given no impact on the plan for cash dividenddistribution. 3. On the ground that conditions provided by the Company in the articles of association regarding distribution of cashdividend and full withdrawal of surplus accumulation fund are met, the Company makes a profit distribution in every accountingyear in principle; if necessary, the Company may make an interim cash dividend distribution subject to the profitability and fundingdemand. Given sufficient funds, no spending in major technical improvement plans or other investment plans, and satisfaction ofthe Company's fund demand for regular production and operation, the Company's cumulative profit distributed by cash in thefollowing three years will be no less than 30% of the annual average distributive profit incurred in the corresponding period. 4. TheCompany's management and board of directors will abide by relevant laws, regulations and Articles of Association and formulateand submit a 2019 dividend distribution plan to the general meeting of shareholders for approval, according to which, based on thetotal stock of 5,730,250,118 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.
Commitment
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Period of commitment | Fulfillment |
| Commitment on share reform | Shijiazhuang Baoshi Electronics Group Co., Ltd | Share reduction commitment | 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 29,2007 | Long-term effective | Under Fulfillment |
| Commitment in the acquisition report or the report on equity changes | ||||||
| Commitment made upon the assets replacement | Tunghsu Group,Li Zhaoting | Commitments on horizontal competition, 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 20,2017 | Long-term effective | Under Fulfillment |
| 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 Dacheng,Chen Xicheng, Shanghai Huimao Enterprise Management Co., Ltd.; Wang Wenxi, Yao Eqin | Commitments on horizontal competition, 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 20,2017 | Long-term effective | Under Fulfillment |
| 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 Group,Li Zhaoting | Commitments on horizontal competition, 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 20,2017 | Long-term effective | Under Fulfillment |
| the Company/I shall undertake the compensation liability. | |||||
| Chen Dacheng,Chen Xicheng, Shanghai Huimao Enterprise Management Co., Ltd.; Wang Wenxi, Yao Eqin | Commitments on horizontal competition, 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 20,2017 | Long-term effective | Under Fulfillment |
| Mianyang Technology City Development Investment (Group) Co., | Other Commitment | 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 20,2017 | Long-term effective | Under Fulfillment |
| 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 Group,Li Zhaoting | Other Commitment | 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 10,2017 | Long-term effective | Under Fulfillment |
| Gong Xin, Han Zhiguo, Huang Jinliang, Li Zhaoting, Liu | Other Commitment | 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 10,2017 | Long-term effective | Under Fulfil |
| 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 |
| regulations and rules formulated and issued by the securities regulatory authorities such as the CSRC and the Shenzhen Stock Exchange. | |||||
| Tunghsu Group | Other Commitment | 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 10,2017 | Valid period to December 31,2018 | Under Fulfillment |
| Shanghai Huimao Enterprise Management Co., Ltd. | Other Commitment | 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 26,2017 | Long-term effective | Under Fulfillment |
| Tunghsu | Share | The shares of Tunghsu Optoelectronic held by | November | November | Com |
| Group,Tunghsu Technology Group Co., Ltd., Shjiazhuang Baoshi Group | limited commitment | 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. | 30,2017 | 29,2018 | pleted |
| Tunghsu Group, Shanghai Huimao Enterprise Management Co., Ltd | Share limited commitment | 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 30,2017 | November 29,2020 | Under Fulfillment |
| Mianyang Technology City Development Investment（Group）Co., Ltd.; Sichuan Changhong Electric | Share limited commitment | 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 30,2017 | November 29,2018 | Completed |
| 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 commitment | 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 28,2017 | December 28,2020 | Under Fulfillment |
| Minjia Silver Fund Management Co., Ltd.; Beixin Ruifeng Fund Management Co., Ltd. | Share limited commitment | 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 28,2017 | December 28,2018 | Completed |
| Shanghai Huimao Enterprise Management Co., Ltd | Performance commitment and compensation arrangements | 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 30,2017 | December 31,2019 | Under Fulfillment |
| 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 | Performance commitment and compensation arrangements | 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 30,2017 | December 31,2019 | Under Fulfillment | |
| Commitments made upon issuance | Li Zhaoting | Commitmen ts on horizontal competition, 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 22,2011 | Long-term effective | Under Fulfillment |
| 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;Shijiazhuang Baoshi Group; Tunghsu Optoelectronic Investment Co.,m Ltd. | Commitments on horizontal competition, 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 | Under Fulfillment |
| Tunghsu Group | Other commitment | 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 8,2015 | Valid for December 31,2020 | Under Fulfillment |
| Tunghsu Optoelectronic | To raise funds to | In view of: Tunghsu Optoelectronic Technology Co., Ltd. is applying for public | February 10, 2015 | Valid for December | Under |
| Technology Co., Ltd. | use the commitment | 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. | 31,2020 | Fulfillment | |
| Tunghsu Group | Other commitment | 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 | Under Fulfillment |
| 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 Group,Li Zhaoting | Commitments on horizontal competition, 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 | Under Fulfillment |
| 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 commitment | 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 16,2015 | Valid for December 31,2030 | Under Fulfillment |
| Tunghsu | Share | The company, one of the subscription objects, | December16 | Valid for | Unde |
| Group;Changjiang Securities (Shanghai )Asset Management Co., Ltd.;Kunshan Development Zone State Investment Co., Ltd.;Beijing Yingfei Hailin Investment Center (Limited partnership). | limited commitment | 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 16,2018 | r Fulfillment |
| Tunghsu Group,Li Zhaoting | Other Commitment | Not act in excess of authority to interfere the company’s management and operating activities, not encroach on the interests of the company. | February 6,2016 | Valid for December 31,2019 | Completed |
| Li Zhaoting, Zhou Bo,Niu Jianlin, Gong Xin, Lu Guihua, Mu Tiehu, Zhang Shuangcai, Shi Zhiqiang , Liu Wentai,Xiao Zhaoxiong and Zhou Bo | Other Commitment | (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 6,2016 | Valid for December 31,2019 | Under Fulfillment |
| 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 | Commitments on horizontal competition, related transaction and capital occupation | Before June 30, 2018, the entire equity of Tunghsu Yingkou, which is held by Tunghsu Group and is entrusted to the company's management, will be injected into Tunghsu 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 14,2017 | Valid for June30,2018- | Under Fulfillment | |
| Equity incentive commitment | ||||||
| Other commitments made to minority shareholders | Guo Shouwu, Ma Shengjie, Wu Haixia , Shen Wenzhuo and Shen Li | Performance commitment and compensation arrangements | 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 8,2016 | Valid for December 31,2019 | Under Fulfillment |
| 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. | Performance commitment and compensation arrangements | 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 11,2017 | Valid for June 30,2020 | Under Fulfillment |
| Tunghsu Group | Share holdings commitment | The controlling shareholder of the company, Tunghsu Group, has announced its plan of increasing its holding of shares not less than 1% and not exceeding 3% of the company’s current total share capital via buying through the Shenzhen Stock Exchange trading system (i.e. the secondary market) with not less than RMB 500 million and not exceeding RMB1.5 billion in the next six months since the date of the announcement (February 2, 2018). Tunghsu Group promised not to reduce the holdings of the company's shares during the implementation period of this plan of increasing share-holding and during the statutory period. | February 2,2018 | Valid for August 2,2018 | Under Fulfillment |
| Shenzhen Sanbao Innovation and Technology Partnership (limited partnership); Zhuang | Performance commitment and compensation arrangements | 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 29,2018 | Valid for Decemver 31,2020 | Under Fulfillment |
| 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 theforecast period, the company has assets or projects meet the original profit forecast made and the reasonsexplained√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 8,2016 | December 31,2018 | 2,000 | 2,060.8 | Completed | March 9,2016 | Disclosed on cninfo.com.cn.( 2016-030) |
| Shanghai | November | December | 40,000 | 42,523.26 | March | Tunghsu |
| Sunlong Bus Co., Ltd. | 30,2017 | 31,2019 | 21,2017 | 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 30,2017 | December 31,2019 | 9,800 | 9,912.72 | Completed | March 21,2017 | 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 11,2017 | December 31,2019 | 2,000 | 273.65 | Please refer to the statement on the 2018 performance commitment of mingshuo Technology disclosed by the company for details. | May 11,2017 | Disclosed on cninfo.com.cn.( 2017-047) |
| Shenzhen Sanbao Innovation Intelligence Co., Ltd. | May 28,2018 | December 31,2020 | 750 | -875.45 | Not applicable | May 29,2018 | Disclosed on cninfo.com.cn.( 2018-069, 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 performancecommitment for the report year regarding such M&A targets as Xuhong Optoelectronics and Sunlong Bus in theCompany's 2017 related transactions of issuing shares, buying assets by cash and raising supporting funds. In thereport period, both Xuhong Optoelectronics and Sunlong Bus fulfilled the performance commitment. Data detailsare shown in the preceding table.
2. In March 2016, the Company and five natural person shareholders of Shanghai Tanyuan Huigu includingGuo Shouwu, Ma Shengjie, Wu Haixia, Shen Wenzhuo and Shen Li (hereinafter referred to as the undertaker)
entered into a Performance Commitment to make a commitment to the business performance of Shanghai TanyuanHuigu 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 (LimitedPartnership) whose funds were managed by the Company's wholly-owned subsidiary Shenzhen Xuhui InvestmentHolding Limited and holding subsidiary Beijing Tunghsu Huaqing Investment Co., Ltd. entered into an Agreementon Equity Transfer and Capital and Share Increase at Mingshuo (Beijing) Electronic Technology Co., Ltd. withshareholders of MS Technology including Chen Wei, Zhu Lei, Wang Yingchao, Jin Xiuzhen, Jiang Wei, LiHonglei, Beijing Heyiyou Investment Partnership (Limited Partnership) and Qian Xinming regarding matters ofequity transfer and capital and share increase at MS Technology, wherein a commitment was made to the businessperformance in the report period: the audited after-tax net profit in 2018 (or the amount after deduction of thenon-recurring income and loss, whichever lower) is not lower than RMB 20 million. In the report period, MSTechnology implemented RMB 2,736,500 in the after-tax net profit upon deduction of non-recurring income andloss, 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 onEquity Transfer and Capital and Share Increase at Shenzhen Sanbao Innovation Intelligence Co., Ltd. concludedwith shareholders of Sanbao Innovation including Lin Lvde, Zhuang Yongjun and Shenzhen Sanbao InnovationTechnology Partnership (Limited Partnership) (hereinafter referred to as the undertaker), the undertaker made acommitment to profits of Sanbao Innovation in the following three years of their own accord: Sanbao Innovationimplements a cumulative net profit amounting to not lower than RMB 75 million in 2018-2020, wherein theamount of 2018 performance commitment is calculated by actual remaining months upon the completion of thetransaction in the following method: amount of 2018 performance commitment=2018 promised netprofit×(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 -8,754,500 upon deduction of non-recurring income and loss,which was accumulated to the cumulative performance commitment for the following year, not indicating itsfailure 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 appraisalinstitution--Zhongming (Beijing) Assets Appraisal International Co., Ltd. to appraise and test the goodwill ofShanghai 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 expectationshowed no sign of goodwill impairment.
2. Mingshuo Technology failed to fulfill the 2018 business commitment. Through a judgment on the currentbusiness situation of Mingshuo Technology and its development plan and market development trend for the fiveyears to come, no sign of impairment was found in the goodwill incurred through M&A of Mingshuo Technologyin the appraisal test.
3. The 2018 unfulfilled performance of Sanbao Innovation was accumulated to the promised cumulativeperformance for the following year, not indicating its failure to fulfill the performance commitment. Through ajudgment on the current business situation of Sanbao Innovation and its development plan and marketdevelopment trend for the five years to come, no sign of impairment was found in the goodwill incurred throughM&A of Sanbao Innovation in the appraisal test.
IV.Particulars about the non-operating occupation of funds by the controlling shareholder□ Applicable √ Not applicableNilV. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified Auditor’sReport Issued by the CPAs.□ Applicable √ Not applicableVI. Explanation change of the accounting policy, accounting estimate and measurement methods as comparedwith the financial reporting of last year.
√ Applicable □Not applicable
Accounting policy changes due to the implementation of the new Accounting Standards for BusinessEnterprises
On June 26,2018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of GeneralEnterprise 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 andamounts 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 | -538,128,584.84 |
| Account receivable | -7,873,419,684.42 | |
| Notes receivable & account receivable | 8,411,548,269.26 |
| 2 | Interest receivable | -49,456,785.29 |
| Other receivable | 49,456,785.29 | |
| 3 | Notes payable | -1,063,897,679.89 |
| Account payable | -4,636,989,039.65 | |
| Notes payable & account payable | 5,700,886,719.54 | |
| 4 | Interest payable | -107,195,147.20 |
| Dividend payable | -35,000,000.00 | |
| Other payable | 142,195,147.20 | |
| 5 | Management expenses | -256,991,555.91 |
| R & D ecpenses | 256,991,555.91 |
VII. Explanation retrospective restatement due to correction of significant accounting errors in the reportingperiod□Applicable √ Not applicableNilVIII. Explanation change of the consolidation scope as compared with the financial reporting of last year.√ Applicable □Not applicable
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 | 157,598,587.50 | 67.00% | Enterprise consolidation not under the same control | May 30, 2018 | Acquisition of control | 7,659,108.35 | -12,733,040.13 |
| Zhongcheng National construction 1Co., Ltd. | May 30, 2018 | 140,000,000.00 | 70.00% | Enterprise consolidation not under the same control | March 30, 2018 | Acquisition of control | -7,172,706.59 | |
| Huaxi Nanchong Automobile Co., Ltd. | April 4, 2018 | 56,000,000.00 | 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 10,000 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 comparison period | Net profit of the merged party during the comparison period |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 65.00% | Parent Company | June 30,2018 | Pay the consideration and control the operation | 27,289,664.99 | -11,435,425.33 | 16,069,429.21 | -13,043,965.22 |
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 28,2018 | Received the consideration, completed the transfer of property rights, lost control | 3,182,206.12 |
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 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science andTechnology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment HoldingCo., Ltd.Subscribet and pays RMB 12 million, holding 52.78% of the shares. Jiangxi University of Science andTechnology subscribet and pays RMB 10.7345 million , holding 47.22% of the shares.（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-ownedsubsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
million and the paid-up capital of RMB200.00.（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- LuoyangConstruction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital ofRMB 100 million.（4）On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-ownedsubsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30million and the paid-up capital of RMB 100,000;（5）On July 26,2018, 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 EquipmentCo., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-AnhuiXuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capitalof RMB10 million.IX.Engagement/Disengagement of CPAsCPAs currently engaged
| Name of the domestic CPAs | Hebei Guanghua Accounting Firms Co., Ltd.(LLP) |
| Remuneration for domestic accounting firm (RMB10,000) | 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 √ NoCPAs firm for the internal control audit
□ Applicable √ Not applicableX.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicableXI.Relevant Matters of Bankruptcy Reorganization□Applicable √ Not applicableNilXII.Matters of Important Lawsuit and Arbitration□Applicable √ Not applicableNilXIII.Situation of Punishment and Rectification□Applicable √ Not applicableNilXIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers□Applicable √ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or OtherEmployee Incentive Measures
√Applicable □ Not applicable
1. The Company's first session of staff shareholding plan totaled RMB 495.4 million and involved full-amountsubscription of 72,639,296 shares in the Company's 2015 private placement through Changjiang Xingli No.2Directed 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 staffshareholding 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 theassembled fund trust plan of the Zhonghai Trust-Tunghsu Optoelectronic Staff Shareholding Plan, 52,555,280shares of the Company were bought at the secondary market in such methods as centralized bidding and blocktrade, involving the amount of RMB 496,412,100, RMB 9.45/share in average; on December 28, 2017, thetransaction was completed and funds earned were transferred to the account of the assembled fund trust plan. Theduration 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 | Relationship | Type of trade | Subjects of the related transactions | Principle of pricing the related transactions | Price of trade | Amount of trade (Ten Thousands) | Ratio in similar trades | Trading limit approved（Ten Thousands） | Whether over the approved limited or not (Y/N) | Way of payment | Market price of similar trade available | Date of disclosure | Index of information disclosure |
| Beijing Zhonghuan Xinrong Trade Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 19,613.27 | 19,613.27 | 14,543.56 | No | Currency | 19,613.27 | January 27,2018 | http://www.cninfo.com.cn | |
| Huidong Baoan Jinan Real estate Develop | Controlled by the same actual controll | Selling goods and providing services | Construction Engineering | Reference price setting | 31,340.93 | 31,340.93 | 31,340.93 | No | Currency | 31,340.93 | April 20,2018 | http://www.cninfo.com.cn |
| ment Co., Ltd. | er | ||||||||||||
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 29,849.72 | 29,849.72 | 35,000 | No | Currency | 29,849.72 | April 20,2018 | http://www.cninfo.com.cn | |
| Shengzhou Zhexu Real Estate Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 13,213.64 | 13,213.64 | 20,000 | No | Currency | 13,213.64 | April 20,2018 | http://www.cninfo.com.cn | |
| Zhangzhou Shenghua Real Eaeste Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 15,910.00 | 15,910 | 20,000 | No | Currency | 15,910 | April 20,2018 | http://www.cninfo.com.cn | |
| Zhongshan Shenzhong Real Eaeste Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 38,804.29 | 38,804.29 | 38,804.29 | No | Currency | 38,804.29 | April 20,2019 | http://www.cninfo.com.cn | |
| Total | -- | -- | 148,731.85 | -- | 159,688.78 | -- | -- | -- | -- | -- | |||
| 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 | ||||||||||||
| 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 | Relationship | Type of trade | Subjects of the related transactions | Principle of pricing the related transactions | Book value of assets transferred（Ten thousand） | Valuation of transferred assets（Ten thousand）（If any） | Transfer price（Ten thousand） | Way of payment | Transaction gain or loss（Ten thousand） | Date of disclosure | Index of information disclosure |
| TunghsuTechnology Group Co., Ltd. | Same control | Equity transfer | Disposal of subsidiaries | Based on audited net assets | 54,681.78 | 0 | 55,000 | Monetary funds | -318.22 | April 14,2018 | http://www.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 applicableNo such cases in the reporting period.4. Credits and liabilities with related parties□Applicable √ Not applicableNo such cases in the reporting period.5. Other significant related-party transactions□Applicable √ Not applicableNo such cases in the reporting period.XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicableNo 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 RMB10,000
| 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 implementation or not | Guarantee for associated parties (Yes or no) |
| Auto sales mortgage customers | July 14,2018 | 150,000 | 42,510.39 | The joint liability guaranty | No | No | ||
| Total of external guarantee approved in the report term (A1) | 150,000 | Total of external guarantee actually occurred in the report term (A2) | 42,510.39 | |||||
| Total of external guarantee approved as of end of report term (A3) | 150,000 | Total of external guarantee actually occurred as of end of report term (A4) | 42,510.39 | |||||
| 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 | Completed or not | Related guarantee |
| Wuhu Optoelectronic | June 20,2013 | 132,000 | November 12,2013 | 71,250 | The joint liability guaranty | 96 months | No | No |
| Wuhu Optoelectronic | September 27,2013 | 90,000 | February 6,2014 | 41,250 | The joint liability guaranty | 96 months | No | No |
| Wuhu Equipment | April 11,2014 | 150,000 | October 30,2014 | 33,000 | The joint liability | 96 months | No | No |
| guaranty | ||||||||
| Wuhu Optoelectronic | November 18,2016 | 52,300 | December 2,2016 | 43,341.17 | The joint liability guaranty | 72months | No | No |
| Xuhong Optoelectronic | January 11,2018 | 8,000 | February 9,2018 | 8,000 | The joint liability guaranty | 12months | No | No |
| Guangxi Sunlong | March 10,2018 | 5,000 | 0 | No | No | |||
| Sunlong Bus | March 10,2018 | 10,000 | March 27,2018 | 7,000 | The joint liability guaranty | 12months | No | No |
| Sunlong Bus | March 10,2018 | 6,000 | April 2,2018 | 3,000 | The joint liability guaranty | 12months | No | No |
| Sunlong Bus | March 27,2018 | 5,000 | March 30,2018 | 5,000 | The joint liability guaranty | 12months | No | No |
| Guangxi Sunlong | March 27,2018 | 10,000 | 0 | |||||
| Wuhu Optoelectronic | March 27,2018 | 10,000 | March 28,2018 | 10,000 | The joint liability guaranty | 12months | No | No |
| Wuhu Optoelectronic | March 27,2018 | 10,000 | March 27,2018 | 10,000 | The joint liability guaranty | 12months | No | No |
| Wuhu Optoelectronic | April 14,2018 | 7,000 | April 24,2018 | 5,000 | The joint liability guaranty | 12months | No | No |
| Guangxi Sunlong | April 14,2018 | 4,950 | April 28,2018 | 2,500 | The joint liability guaranty | 12months | No | No |
| Zhenzhen Xin Ying Tong | April 14,2018 | 10,000 | 10,000 | The joint liability guaranty | 12months | No | No | |
| Tunghsu （Kunshan） | May 11,2018 | 38,000 | May 14,2018 | 38,000 | The joint liability guaranty | The guarantee period is from the date when the | No | No |
| pledge right is established to the date when all the guaranteed debts under the Finance Lease Contract are paid off. | ||||||||
| Zhengzhou Xufei | June 13,2018 | 5,000 | June 29,2018 | 5,000 | The joint liability guaranty | No | No | |
| Suzhou Tengda | June 13,2018 | 5,000 | June 28,2018 | 2,000 | The joint liability guaranty | No | No | |
| Wuhu Tunghsu | June 16,2018 | 15,000 | June 26,2018 | 15,000 | The joint liability guaranty | No | No | |
| Wuhu Equipment | June 16,2018 | 15,000 | June 29,2018 | 15,000 | The joint liability guaranty | No | No | |
| Suzhou Tengda | July 14,2018 | 2,000 | 0 | |||||
| Shanghai Sunlong | July 14,2018 | 20,000 | 0 | |||||
| Zhengzhou Xufei | July 14,2018 | 20,000 | 0 | |||||
| Tunghsu（Kunshan） | July 14,2018 | 15,000 | July 26,2018 | 4,950 | The joint liability guaranty | No | No | |
| Shenzhen Xin Ying Tong | July 28,2018 | 10,000 | July 28,2014 | 10,000 | The joint liability guaranty | No | No | |
| Guangxi Sunlong | July 28,2018 | 10,000 | September 10,2018 | 5,000 | The joint liability guaranty | No | No | |
| Chongqing Jinghuateng | August 4,2018 | 2,000 | September 26,2018 | 1,000 | The joint liability guaranty | No | No | |
| Zhengzhou Xufei | August | 8,000 | September | 8,000 | The joint | No | No |
| 31,2018 | 18,2018 | liability guaranty | ||||||
| Shanghai Sunlong | September 22,2018 | 4,000 | November 5,2018 | 2,000 | The joint liability guaranty | No | No | |
| Jiangsu Jixing | September 22,2018 | 10,000 | September 30,2018 | 9,235.07 | The joint liability guaranty | No | No | |
| Zhengzhou Xufei | September 22,2018 | 12,000 | September 28,2018 | 12,000 | The joint liability guaranty | No | No | |
| Chongqing Jinghuateng | September 22,2018 | 2,000 | September 27,2018 | 2,000 | The joint liability guaranty | No | No | |
| Hunan Tunghsu Delai | October 20,2018 | 12,000 | December 19,2018 | 2,000 | The joint liability guaranty | No | No | |
| Guangxi Sunlong | October 20,2018 | 30,000 | November 29,2018 | 5,000 | The joint liability guaranty | No | No | |
| Jingsu Tunghsu Yitai | October 20,2018 | 2,000 | 0 | The joint liability guaranty | ||||
| Suzhou Tengda | October 31,2018 | 2,000 | October 31,2018 | 2,000 | The joint liability guaranty | No | No | |
| Chongqing Jinghuateng | October 31,2018 | 2,500 | November 20,2018 | 2,500 | The joint liability guaranty | No | No | |
| Guangxi Sunlong | October 31,2018 | 30,000 | December 28,2018 | 11,000 | The joint liability guaranty | No | No | |
| Suzhou Tengda | November 24,2018 | 2,500 | December 3,2018 | 2,500 | The joint liability guaranty | No | No | |
| Tunghsu （Kunshan） | November 24,2018 | 30,000 | December 11,2018 | 10,000 | The joint liability guaranty | No | No | |
| Zhengzhou Xufei Optoelectronic | December 26,2018 | 202,400 |
| 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 26,2018 | 2,500 | 0 | The joint liability guaranty | No | No | ||
| Total of guarantee for subsidiaries approved in the Period (B1) | 594,850 | Total of actual guarantee for subsidiaries in the Period (B2) | 264,500 | |||||
| Total of guarantee for subsidiaries approved at Period-end (B3) | 1,104,150 | Total of actual guarantee for subsidiaries at Period-end (B4) | 224,685 | |||||
| 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 implementation or not | Guarantee for associated parties (Yes or no) |
| The Company’s total guarantee(i.e.total of the first three main items) | ||||||||
| Total guarantee quota approved in the reporting period（A1+B1+C1） | 744,850 | Total amount of guarantee actually incurred in the reporting period（A2+B2+C2） | 307,010.39 |
| Total guarantee quota already approved at the end of the reporting period（A3+B3+C3） | 1,254,150 | Total balance of the actual guarantee at the end of the reporting period（A4+B4+C4） | 267,195.39 |
| The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+B4+C4）% | 8.22% | ||
| Including： | |||
| Amount of guarantee for shareholders, actual controller and its associated 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 applicableNo 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
XVIII. Social responsibilities1. 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 summary1. On February 2, 2018, Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to FupingCounty, Hebei Province for free in order to realize clean heating in winter. At the same time, it also donated200,000 yuan worth of books. This donation is only the first pilot project, and the scope of donation will beappropriately 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 890,400 yuanand 200,000 yuan worth of books to the central primary school at Gonghui Town, Zhangbei County, HebeiProvince and to center gerocomium at Haojiaying township to help primary school students and widows andorphans 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 thecompany, donated 228,500 yuan to Zhongdang village, which lies at Jiafang Township, Mashan County, GuangxiProvince, so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-strickenvillage in Guangxi: reservoir project of drinking water engineering.4. During the reporting period, Shanghai Sunlong, Jiangsu Jixing and Suzhou Tenda, which are the wholly-ownedsubsidiaries of the company, donated 10,000 yuan, 10,000 yuan and 20,000 yuan respectively for povertyalleviation.3.Major environmental protectionThe Listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection department
Yes
| Company or subsidiary name | Main pollutant and specific pollutant name | Emission way | Emission port number | Emission port distribution condition | Emission concentration (mg/Nm3) | Implemented pollutant emission standards | Total emission | Verified total emission(Tons) | Excessive emission condition |
| Fuzhou Tunghsu Optoelectronic 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/year | 117.1T/year | Not exceeded |
| Fuzhou | Ammoni | 1 | Total | 6.8mg/L | Water quality | 0.87T/ye | 15.6T/ye |
| Tunghsu Optoelectronic 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 Optoelectronic Technology Co., Ltd. | NOX, SO2, particulate matter (melting furnace), particulate matter (ingredients, 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≤700mg/m? SO2≤400mg/m? Granule (melting furnace) ≤50mg/m? Particulate matter (batching, broken glass)≤30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | NOX：82.67tons /year SO2：1.28 tons/year Particulate matter: 2.09 tons/year | NOX：82.67tons/year SO2：8.49 tons/year Particulate matter: 6.23 tons/year | On April 28, 2018, the coordinated monitoring of the air monitoring and measuring tube showed that the company's glass furnace emitted 742mg/m3 of NOX (emission limit: 700 mg/m3 |
| Zhengzhou Xufei Optoelectronic 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-stage 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 |
| 1 chimney for each of the 3 natural gas boilers | second-stage 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 Optoelectronic Technology Co., Ltd. | Sulphur Dioxide | 5 | 1 chimney for the first-stage glass furnace, 1 chimney for the second-stage 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-stage 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 Optoelectronic Technology Co., Ltd. | Particulates | 5 | 1 chimney for the first-stage glass furnace, 1 chimney for the second-stage glass furnace, and 1 chimney for each of the 3 natural gas boilers | Flue gas discharge port of first-stage furnace: 8.44mg/m?. Flue gas discharge port of second-stage furnace: 25.1mg/m? | 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 |
| (GB13271-2014) | |||||||||
| Zhengzhou Xufei Optoelectronic 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 Optoelectronic Technology Co., Ltd. | Ammonia 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）Photoelectric display Co., Ltd. | Wastewater 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 | 6-9 | Integrated Wastewater Discharge Standard of Liaoning Province（DB21/1627-2008） | Wastewater volume 535m3/d | Wastewater volume | No |
| Tunghsu （Yingkou）Photoelectric display Co., Ltd. | Wastewater 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）Photoelectric display Co., Ltd. | Wastewater 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）Photoelectric display Co., Ltd. | Wastewater 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）Photoelectric display Co., Ltd. | Ammonia nitrogen in wastewater | 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 |
| the third sewage treatment plant of Liaoning (Yingkou) coastal industrial base for further treatment. | |||||||||
| Wuhu Tunghsu Optoelectronic 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/m? | SO2≤400 mg/m? | 1.89 t | 4.52 t/a | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | (NOX) | 2 | Between plant 101 and plant 202 | 166 mg/m? | NOX≤700 mg/m? | 33.03 t | 84.76 t/a | No | |
| Wuhu Tunghsu Optoelectronic 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 Optoelectronic 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 0.023tons 0.085tons | 62.442 tons 0.096 tons 0.723tons | 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/m? | DB12/524-2014 Emission Control Standard for Industrial Enterprises Volatile Organic | 0.58吨 | 10.081tons | No |
| 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/m? | GB16297-96 Integrated Emission Standard of Air Pollutants | 0.02tons | 0.333tons | No |
| Tunghsu （Kunshan）Display Material Co., Ltd. | Particulate matter, SO2, NOx | Exhaust gas is discharged through a 25m chimney | 1 | The north roof of the main plant building | 5.62 mg/ m? 0.311 mg/m? 45.32 mg/m? | GB13271-2014 Emission Standard of Air Pollutants for Boiler | 0.0103 tons 0.006 tons0.231tons | 0.231tons0.014 tons 5.361tons | 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/m? | Refer to GB28665-2012 Emission Standard of Steel Rolling Industry | 0.626tons | 2.294tons | 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 | 5.2446tons | 22.774tons | No |
| Jiangsu Jixing New Material Co., Ltd. | SS | 1 | WS-960001 west side of sewage treatment station | ≤150 | GB/T11901—1989 | 0.4995tons | 13.002tons | 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 manufacturing workshop | Emission concentration ≤ 100 mg/m3; Emission rate ≤0.26kg/h | GB16297-1996 | 0.002165tons | 0.206tons | No |
| Shanghai Sunlong | Wastewater: | After the treatment reaches | 1 | Total wastewater | 197mg/L | Integrated Wastewater | / | / | Not exceeded |
| Bus | Chemical 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 | Wastewater: 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 | Wastewater: suspended substance | 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 | Wastewater: petroleum | 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 | Wastewater: Total phosphorus | 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 compounds (VOCs) | When it reaches the standard after the treatment, it will be discharged at high altitude | 4 | West of the plant area | 4.33mg/m? | 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/m? | Emission Standard of Air Pollutants for | 0.00134 | 0.02 | Not exceeded |
| 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/m? | 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/m? | Integrated Emission Standard of Air Pollutants DB31/933-2015 | 1.001 | 1.04 | Not exceeded | |
| Guangxi Sunlong | Chemical oxygen demand, ammonia nitrogen, pH, toluene, xylene, particulate 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 Ammonia nitrogen: 0.18 tons Toluene: 0.042 tons Xylene: 0.04 tons Particulate matter: 0.384 tons | No | No |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | Wastewater, 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 requirements and standards | Integrated Wastewater Discharge Standard (GB8978-1996) and Emisson Standard for Industrial Enterprises Noise at Boundary（GB12348-2008） | Noise: up to standard Wastewater: up to standard after treatment, solid waste (waste cutting | Subject to the requirements of environmental protection standards | No |
| waste: waste cutting liquid shall be recovered and treated by a qualified company | liquid): 0.2 tons | ||||||||
| Changqing Xufu Optoelectronic Technology Co., Ltd. | Domestic sewage | Access to municipal sewage treatment pipe network | 1 | Yingtian Gonggu wastewater pipe network | / | Limits for Surface Water | 0.4350 | 0.4350 | / |
| Chongqing Jinghuateng Optoelecronic Technology Co., Ltd. | Non-methane total hydrocarbon | Be organized | 1 | / | 60 | Emission standard of packaging and printing industry | / | 0.38 | No |
| Suzhou Tengda Opotic Technology Co., Ltd. | Domestic sewage | Access to municipal sewage treatment pipe network | 1 | / | / | Water quality standard for sewage to be discharged into urban sewage drain | / | / | / |
| Hefei Jinghua Optoelectronic Technology Co., Ltd. | Domestic 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 | Underground 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/ m? | Integrated Emission Standard of Air Pollutants (GB16297-1996) secondary standards | 110 mg/ m? | 120mg/ m? | No |
| Chengdu Tunghsu Intelligence Technology | tin and its compounds | Air extraction and exhaust system | 2 | Production Workshop | 0.24mg/ m? | Integrated Emission Standard of Air Pollutants (GB16297-1996) | 3.3 mg/ m? | 8.5 mg/ m? | No |
| 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 m?/h | 20000 m?/h | / |
Entrust financial expected to be unable to recover the principal or impairment might be occurred1.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 withdesigned treatment capacity of 1000t/d, which adopts PH adjustment + secondary concrete sedimentationtreatment process. All production waste water will be collected after treatment and meeting standards anddischarged into Rongyuan sewage treatment plant together with pre-treated sanitary sewage by septic tank foruniform treatment. The waste water treatment station operates normally during the report period and dischargesper 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 mainlyparticulates, sulfur dioxide and nitrogen oxides. In 2015, the company spent a lot of money to establish an SCRdenitration system. Untreated furnace flue gas enters the electrostatic precipitator of the denitration systemthrough the flue. The dedusted flue gas enters the SCR reactor with ammonia water as reductant and V2O5/TiO2as catalyst. Nitrogen oxides in the flue gas are reduced to N2 and then enter the 60-meter-high chimney throughthe 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 isequipped with two flue gas induced draft fans (one for use and one for standby), which adopt double-loop powersupply. The operation personnel of denitration treatment facilities are subject to 4 shifts and 3 rotations to ensurethat the operation personnel are on duty 24 hours a day. The operation management shall be carried out strictly inaccordance with the operation procedures, operation instructions and inspection tour operation instructions, andthe operation parameters shall be monitored in real time to ensure the normal operation rate of denitration systemto 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. Atthe beginning of the factory in 2011, the company installed filter cartridge dust collectors in all silos, broken glassfeeding systems and kiln head feeding ports of the batching workshop to collect the particulate matter generated inthe feeding and batching process. In order to ensure that the discharged particles reach the standard, in February2015, the company collected the exhaust cylinders of all silos into a main pipe, and installed a bag filter to carryout secondary dust removal on the treated residual particles. The dust removal equipment of the company isoperated intermittently. During the gap period, the post personnel clean the filter cartridge and filter bag of thedust removal equipment and carry out regular maintenance to ensure the normal operation of the dust removalequipment 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 and1 6t/h boiler), with nitrogen oxide emission concentration lower than 30mg/m3, which has passed the verification
of Zhengzhou Ecological Environment Bureau.
2) An investment of 790,000 yuan has been invested to install an on-line monitoring system for furnace fluegas to realize the grid connection with Zhengzhou Ecological Environment Bureau.
3) Environmental protection facilities operate continuously and stably throughout the year. There is nounplanned 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. Thewastewater is collected through pipelines, enters the grinding wastewater equalization tank of the wastewatertreatment station, and is pumped into the grinding wastewater treatment system for treatment. The wastewater isdischarged into the sedimentation tank for coagulation sedimentation after being precipitated by steppedprecipitation tank, and finally discharged into the integrated treatment system for further treatment, and thendischarged into the sewage treatment plant of the industrial base for further treatment through the municipal pipenetwork of the industrial base. This project adopts coagulation and sedimentation process to treat grindingwastewater. The design capacity of the grinding wastewater treatment system is 400 m3/d, and the productioncapacity of grinding wastewater in this project is 176m3/d. It is fully capable of treating grinding wastewatergenerated in this project.
2) The cleaning wastewater enters the regulating tank, adjusts its PH value for neutralization treatment, andthen is pumped into the sedimentation tank, and is discharged into the total sewage outlet of the plant area aftersedimentation treatment. The treatment capacity of the cleaning wastewater treatment system in this project is 700m3/d, and the production capacity of the cleaning wastewater in this project is 210 m3/d, which is fully capable oftreating the cleaning wastewater produced in this project.
3) The discharge amount of domestic wastewater in this project is 20 m3/d, including washing, flushing andcanteen drainage. The main pollutants COD, SS, ammonia nitrogen, etc. are designed in the domestic wastewatertreatment system. Oil separation tank+septic tank is adopted for treatment, which has good removal effect on largesuspended solids, animal and plant oil, etc. Septic tank is a common simple biochemical treatment measure forwastewater. It has good and stable treatment effect on domestic sewage.
4) Three-layer anti-seepage measures are adopted for the production workshop, chemical warehouse andground 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-strengthconcrete to ensure the permeability coefficient is less than 1x10-7cm/s, and the water treatment structure shall beconstructed with anti-seepage concrete; Each link of drainage is transported by cement or ceramic anti-seepagepipelines. Except for Green land, the ground of the plant area is all coated with cement plastering anti-seepagehardening. After the anti-seepage and anti-corrosion measures mentioned above are adopted, the pollution effectsof 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 relevantmanagement systems, explicitly requiring the facility usage and operation departments to regularly maintain andservice the facilities. At present, the company's pollution prevention and control facilities are operating normallyand 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 organicwastewater treatment system. At present, all systems except the volatile organic compounds system are installed
with automatic monitoring systems and operate normally. Cuerrently, the automatic monitoring system of thevolatile organic compounds system is not perfect, with certain potential safety hazards. At present, the equipmentresponsible unit is preparing an automatic control improvement scheme to realize real-time monitoring ofequipment operating parameters. During the scheme improvement period, the on-duty personnel conduct regularon-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 52,030 t/a; The expanded sewage treatment station facility wasput into operation in April with an approved wastewater treatment capacity of 147,037 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. Anindustrial 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 theproduction wastewater will be discharged into the municipal sewage pipe network (Yuanshan Road) together withdomestic sewage after reaching the treatment standard and finally into the Bailonggang system. During thereporting 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) istreated by activated carbon adsorption and desorption + catalytic combustion process and discharged at highaltitude after reaching the standard; Online monitoring system (FID) is installed at the discharge port of organicexhaust gas (VOCs) to monitor the emission value in real time; For particulate matter, welding fumes, etc., filtercore filtration technology is adopted to remove dust, and the dust is discharged at high altitude after reaching thestandard; Facilities that need to be heated in the production process shall be natural gas burners. Through theternary internal circulation process, natural gas is efficiently combusted, energy consumption is reduced, andpollutant emission is reduced.9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
1) Construction of pollution prevention and control facilitiesExhaust gas emission and treatment: The coating exhaust gas uses water-filled + activated carbon adsorptiondevice to control volatile organic compounds, toluene, xylene and other atmospheric pollutants. The purifiedexhaust gas is discharged through a 15m high exhaust cylinder. The company has 6 water-filled+activated carbonadsorption devices; Catalytic combustion device is used to control volatile organic compounds, toluene, xyleneand other air pollutants in the coating and drying waste gas. The purified waste gas is discharged through a 15mhigh exhaust cylinder. The company has 3 sets of catalytic combustion device; The putty polishing chamber, glassfiber reinforced plastic polishing chamber and midway polishing chamber adopt the process of installing bag filterat the bottom exhaust channel and the top of the air supply to control atmospheric pollutants such as particulatematters. The collected waste particulate matters after bag filter are respectively discharged through a 15m highexhaust cylinder. The company has a total of 8 bag dust removal devices. The waste gas from paint makeup iscontrolled by activated carbon adsorption devices to control volatile organic compounds, particulate matters andother atmospheric pollutants. The company has 8 sets of activated carbon adsorption devices, and the purifiedwaste gas is discharged through a 15m high exhaust cylinder.
Wastewater discharge and treatment: the company's wastewater mainly consists of domestic wastewater, raintest wastewater and coating circulating wastewater, among which the rain test wastewater is discharged every sixmonths and the coating circulating wastewater is discharged every quarter, the domestic wastewater is treated by
septic tank and mixed with the production wastewater, then enters the plant sewage treatment station for treatmentand 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+biologicalcontact oxidation.
Noise treatment: reasonable layout of high-noise equipment and noise control measures such as soundinsulation, sound absorption and vibration reduction.
Solid waste treatment: the solid wastes generated by the company mainly include general solid wastes such aspaper 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 andstably, regular pollutant monitoring was carried out, and the requirements of the national environmental protectionemission 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 theworkshop, 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 thepipeline of Wuhu Tunghsu Optoelectronic Technology Co., Ltd.. and Wuhu Tunghsu Optoelectronic TechnologyCo., Ltd. takes over Chengdong Sewage Treatment Plant, and it meets the discharge standard after being treatedby buried sewage treatment facilities; 3. Noise pollution prevention and control measures: low-noise andhigh-performance equipment shall be selected, and measures such as foundation construction, wall barrier andgreening barrier shall be taken for these noise sources; 4. Prevention and control measures for solid wastepollution: 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 sanitationdepartment 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 domesticsewage in the plant area is connected to the municipal sewage treatment pipe network, and the domestic sewage isdischarged up to the standard.
12. Chongqing Jinghuateng Optoelectronic Technology Co., LtdSolid 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 isdischarged into the sewage pipe network of the park from the main discharge port, and enters Qingshui River afterbeing treated by Chengdu Cooperative Sewage Treatment Plant, and an obvious signboard is set at the maindischarge port.
2) Exhaust gas: Solder smoke is collected through the exhaust system provided by welding equipment aboveeach area, and finally collected by a 20-meter-high exhaust cylinder and directly discharged, after which, it can
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 environmentalprotection
1. Fuzhou Tunghsu Optoelectronic Technology Co., LtdThe 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 EnvironmentalProtection 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 projectspassed EIA acceptance in 2015 and 2017 respectively. Our company obtained the new sewage permit in 2017 and2012. In 2018, it strictly carried out sewage discharge and various environmental management according to therequirements 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 passedthe Reply of Henan Environmental Protection Department on the Environmental Impact Report of TFT-LCDGlass 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 onEnvironmental Protection Acceptance for the completion of TFT-LCD Glass Substrate Production Line Project ofZhengzhou Xufei Optoelectronic Technology Co., Ltd (YHPY [2011] No. 12).
EIA for Phase II of the roject: On November 2, 2010, Henan Environmental Protection Department approvedthe Reply of Henan Provincial Environmental Protection Department on the Environmental Impact Report ofZhengzhou Xufei Photoelectric Technology Co., Ltd. on the Project of Annual Output of 2.2 Million sq.m. LiquidCrystal Glass Substrate Production Line (YHS [2010] No. 251), and on February 28, 2014, Henan EnvironmentalProtection Department approved the Reply of Zhengzhou Xufei Optoelectronic Technology Co., Ltd. on theApplication for Completion of Environmental Protection Acceptance of the Project of Annual Output of 2.2Million 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 licensesare 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., |
Ltd.
March 2012
| 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 isunderway. The expert review of the environmental impact assessment Three Simultaneities acceptance will becompleted in February 2019. In the preparation of the Three Simultaneities acceptance report, the publicity isexpected to be completed by the end of March 2019. Currently, due to hazardous waste problems (if the wastedeveloper and concentrated waste liquid with high concentration of nitrogen do not conform to the contents of theenvironmental impact report, it needs to be disposed of outside the contract according to the requirements of theenvironmental impact report, with records kept), for the overal acceptance part, the acceptance data cannot besubmitted to the Environmental Protection Bureau. Currently, the application for outsourcing disposal of wastedeveloper and concentrated waste liquid containing high concentration nitrogen has been submitted. Theoutsourcing 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 intelligentproduction lines annually, with the approval document number of YHS [2018] No. 64.
8. Shanghai Sunlong Bus Co. LtdShanghai 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 forcompletion 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 thecompletion 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 environmentalimpact assessment report and file it through Wuhu Environmental Protection Bureau (document No.: HH [2013]No.156).
2) Accepted by Wuhu Environmental Protection Bureau (document No: HY [2016] No.190).11.Suzhou Tengda Optical Technology Co., Ltd.Wuhuanjian{2013}No.63212.Chongqing Fuda Optoelectronic Technology Co., Ltd.Yu（Liangjiang）HZ［2018］No.09013.Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.Yu（Liangjiang）HZ{2017No.}24014.Hefei Jinghuateng Optoelecrronic Technology Co., Ltd.FDJSZD{2016}No.24815.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), reviewopinions on environmental impact report (CHJP 2009-406), etc.Emergency response plan of emergency environmental event
1. Fuzhou Tunghsu Optoelectronic Technology Co., LtdThe company commissioned a qualified third party to prepare the Plan for Environmental Emergencies of FuzhouTunghsu optoelectronic Technology Co., Ltd. and regularly organize and carry out training and drills of the plan toeffectively improve the enterprises' emergency response capability and disposal capability to environmentalpollution 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 itto Mianyang Environmental Protection Bureau for filing. In 2019, our company will apply to MianyangEnvironmental Protection Bureau to carry out "revision, review and filing of the plan for environmentalemergencies" 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 andexplosion accidents in the plant area; Noise, ingredient dust, outflow of hazardous chemicals, environmentalpollution events caused by radiation source leakage and other environmental pollution events caused by forcemajeure.
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 ofWuhu Tunghsu Optoelectronic Technology Co., Ltd. in accordance with the Risk Classification Method forEnvironmental Emergencies of Enterprises and in combination with the actual situation of Wuhu TunghsuOptelectronic Technology Co., Ltd., which describes the emergency rescue principles, emergency rescueprocedures and emergency rescue measures for environmental emergencies of the company, and is aprogrammatic document and operational guideline for guiding the emergency management of environmentalemergencies of the company. The plan was reported to Wuhu Environmental Protection Bureau for filing inNovember 2015 (for the record: 340207-2015-016-L). After three years, it was reported to Wuhu Environmental
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 versionnumber 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 planhave been organized to effectively improve the enterprises' emergency response and disposal capabilities toenvironmental 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. OnMay 22, 2018, Yongning District Environmental Protection Bureau completed the filing of the plan forenvironmental emergencies of Guangxi Sunlong Automobile Manufacturing Co., Ltd. with the filing number of450109-2018-0002-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 andimproves the environmental system, formulates environmental management formulation, defines the mainresponsibilities of the management organization, analyzes the environmental risks, and collects publicparticipation opinions, which can fully meet the requirements of national and local environmental protection lawsand standards.
Environmental self-monitoring plan
1. Fuzhou Tunghsu Optoelectronic Technology Co., LtdThe company strictly abides by national and local laws, regulations and relevant provisions, and entrusts FujianTuopu Detection Technology Co., Ltd. to carry out monthly detection of the company's wastewater, quarterlydetection of the company's noise, and timely log on to its own monitoring website every month to upload data andinformation such as detection results.
2. Sichuan Xuhong Optoelectronic Technical Co.,LtdAccording 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 outon-line monitoring of the major pollutants nitrogen oxides, sulfur dioxide and particulate matter in furnace fluegas and upload the monitoring data to the national environmental protection platform in real time. For the smokeblackness, hydrogen chloride, fluoride and ingredient particles that cannot be monitored online, a third partyorganization is entrusted to carry out manual monitoring every quarter. For the particulate matter and ammonia
emitted by the factory without organization, a third party organization is entrusted to carry out manual monitoringevery six months. All monitoring data are uploaded to the monitoring iInformation disclosure platform of nationalkey 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 wastewatermanually 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 areformulated and ledgers are established, the whereabouts of wastes are strictly controlled, and wastes are disposedaccording to national standards.
2) The wastewater station is equipped with wastewater online monitoring and dosing equipment to monitorthe pH value of wastewater in real time; In the morning and evening, the pH value of wastewater from the totalsewage outlet is monitored manually to ensure that the wastewater discharge reaches the standard.
5. Wuhu Tunghsu Optoelectronic Technology Co., LtdThe company has 1 set of waste water on-line monitoring system and 1 set of flue gas on-line monitoring systemfor plant 101 and 202 respectively. The monitoring data are uploaded to the municipal environmental monitoringplatform in real time. In addition, the company entrusts a qualified third-party environmental monitoring agencyto carry out quarterly and annual monitoring of the company's plant environment every year and requires themonitoring 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 whetherrelevant environmental indicators meet relevant environmental protection requirements according to monitoringresults. 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 ProtectionBureau to monitor the wastewater discharge status in real time to ensure the discharge reaching the standard; Allexhaust gas treatment systems except the volatile organic compounds system are equipped with automaticmonitoring measures to monitor the running status of the treatment device in real time. Qualified third-party unitsare entrusted to carry out exhaust gas emission testing every year to ensure the standard emission. Currently, thereis no automatic monitoring system in the volatile organic compounds system and there are certain potential safetyhazards. At present, the equipment responsible unit is preparing an automatic control improvement plan. Duringthis period, the personnel on duty will conduct regular on-site inspections to ensure the normal operation of theequipment.
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 CODon-line monitoring equipment, 1 set of PLC system that stops discharging when exceeding the standard, and 1 setof 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 regularlymaintain and check environmental protection equipment.
8. Shanghai Sunlong Bus Co. Ltd
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 theenvironmental 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 andenvironmental 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 WuhuTunghsu Optoelectronic Technology Co., Ltd. with the environmental self-detection scheme adopted. Thecompany will regularly carry out noise detection and wastewater detection, and Wuhu Tunghsu OptoelectronicTechnology 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 ofenvironmental protection facilities.
2) Regularly maintain and service mechanical equipment to prevent environmental pollution caused byequipment failure.
3) Strengthen the operation and management of various pollutant treatment facilities to ensure that pollutantsmeet the standards for discharge.
4) Carry out domestic sewage discharge inspection every year, and arrange a third party to carry out noiseand workshop environment inspection.
12. Chengdu Tunghsu Intelligent Technology Co., Ltd1) Self-monitoring plan of the enterprise: since the company does not have an independent sewage treatmentstation, the management committee provides unified assistance for treatment, and since there is no independentmonitoring 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 andnoise, the qualification testing company (Sichuan Jiuhe Evaluation Company) is invited to conduct annualworkplace hazard factor testing, and issue a written testing report, which shall be filed with the system andmanagement 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 OptoelectroniccTechnology 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 monitoringinformation on the environmental credit evaluation website.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
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 ofconstruction 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 bepublished 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. LtdThe company's unit name, unified social credit code, legal representative, production address, main contents ofproduction 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 andcharacteristic pollutants, their emission methods, number and distribution of emission ports, emissionconcentration, and environmental protection data pollution such as pollutant emission standards implemented arereleased 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 andtheir compounds. The company has invested a lot of money and adopted advanced treatment systems forwastewater, exhaust gas, noise and risk control, which shows that the company attaches great importance toenvironmental protection, and is consistent with the company's image as a green environmental protectionindustry.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 | Commissioned by a qualified third party for disposal | Temporary storage room for hazardous wastes | Painting workshop, assembly workshop, commissioning 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 |
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 capital1.Changes in share capital
In Shares
| Before the change | Increase/decrease（+，-） | After the Change | |||||||
| Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| 1.Shares with conditional subscription | 1,385,624,525 | 24.18% | -769,529,722 | -769,529,722 | 616,094,803 | 10.75% | |||
| 2. State-owned legal person shares | 60,389,095 | 1.05% | -60,389,095 | -60,389,095 | |||||
| 3.Other domestic shares | 1,325,235,430 | 23.13% | -709,140,627 | -709,140,627 | 616,094,803 | 10.75% | |||
| Incl：Domestic legal person shares | 1,323,974,680 | 23.11% | -709,140,627 | -709,140,627 | 614,834,053 | 10.73% | |||
| Domestic Natural Person shares | 1,260,750 | 0.02% | 1,260,750 | 0.02% | |||||
| II.Shares with unconditional subscription | 4,344,625,593 | 75.82% | 769,529,722 | 769,529,722 | 5,114,155,315 | 89.25% | |||
| 1.Common shares in RMB | 4,094,625,592 | 71.46% | 769,529,722 | 769,529,722 | 4,864,155,314 | 84.89% | |||
| 2.Foreign shares in domestic market | 250,000,001 | 4.36% | 250,000,001 | 4.36% | |||||
| III. Total of capital shares | 5,730,250,118 | 100.00% | 5,730,250,118 | 100.00% | |||||
Reasons for share changed
□ Applicable √ Not applicableApproval of Change of Shares□ Applicable √ Not applicableOwnership transfer of share changes□ Applicable √ Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period□ Applicable √ Not applicableOther information necessary to disclose for the company or need to disclosed under requirement from securityregulators□ Applicable √ Not applicable2. 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 | 791,889,488 | 439,882,697 | 352,006,791 | Non-public issue restricted shares of 2015 | 439,882,687 shares will be released on December 19,2018；106,326,446 shares will be released on November 30,2020；245,680,345 shares will be released on December 29,2020. | |
| Tunghsu Optoelectronic Technology Co., Ltd.－The first ESOP | 72,639,296 | 72,639,296 | 0 | Non-public issue restricted shares of 2015 | December 19,2018 | |
| Kunshan Development Zone State-owned Investment Holding Co., Ltd. | 43,988,269 | 43,988,269 | 0 | Non-public issue restricted shares of 2015 | December 19,2018 | |
| Beijing Yingfei Hailin | 29,325,513 | 29,325,513 | 0 | Non-public issue | December 19,2018 |
| 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 | 8,005,865 | 8,005,865 | 0 | Non-public issue restricted shares of 2015 | December 19,2018 | |
| Shanghai Huimao Enterprise Management Co., Ltd. | 262,626,262 | 262,626,262 | In 2017, shares were issued and cash was paid to purchase assets, and matching funds and related transactions were raised | November 30,2020 | ||
| Minsheng Royal Fund Management Co., Ltd－-Ping An Bank-Daye Trust·Zengli 2 single Fund Trust | 97,192,224 | 97,192,224 | 0 | In 2017, shares were issued and cash was paid to purchase assets, and matching funds and related transactions were raised | December 29,2018 | |
| Beixin Ruifeng Fund－China Merchants Bank－Daye Trust－Daye Trust·Profit increase 3 single fund plan | 62,095,032 | 62,095,032 | 0 | In 2017, shares were issued and cash was paid to purchase assets, and matching funds and related transactions were raised | December 29,2018 | |
| Mianyang Technology City Development Investment （Group）Co., Ltd. | 11,380,165 | 11,380,165 | 0 | In 2017, shares were issued and cash was paid to purchase assets, and matching funds and related transactions were raised | December 29,2018 | |
| Sichuan Changhong Elec Co.,Ltd | 5,020,661 | 5,020,661 | 0 | In 2017, shares were issued and cash was paid to purchase assets, and matching funds and related transactions were raised | December 29,2018 | |
| The 40 Shareholders Awarded Stock | 1,260,750 | 1,260,750 | Equity incentive and top management locking | Repurchase cancellation of |
| 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 | 201,000 | 201,000 | 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 | 1,385,624,525 | 769,529,722 | 0 | 616,094,803 | -- | -- |
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 common shareholders at the end of the reporting period | 350,362 | Total shareholders at the end of the month from the date of disclosing the annual report | 357,676 | The total number of preferred shareholders voting rights restored at period-end (if any)(See Notes 8) | 0 | Total preferred shareholders at the end of the month from the date of disclosing the annual report(if any)(See Notes 8) | 0 |
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||
| Shareholders | Nature of shareholder | Proportion 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-owned legal person | 15.97% | 915,064,091 | 352,006,791 | 563,057,300 | Pledge | 799,643,042 | |
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Domestic Non -State-owned legal person | 5.80% | 332,382,171 | 332,382,171 | Pledge | 153,520,000 | ||
| Shanghai Huimao Enterprise Management Co., Ltd. | Domestic Non -State-owned legal person | 4.58% | 262,626,262 | 262,626,262 | 0 | Pledge | 80,240,722 | |
| Minsheng Royal Fund Management Co., Ltd－-Ping An Bank-Daye Trust·Zengli 2 single Fund Trust | Other | 1.70% | 97,192,224 | 97,192,224 | ||||
| Qianhai equity investment fund (limited partnership) | Domestic Non -State-owned legal person | 1.45% | 83,341,345 | 83,341,345 | ||||
| Tunghsu Optoelectronic Technology Co., Ltd.－The first ESOP | Other | 1.27% | 72,639,296 | 72,639,296 | ||||
| Beixin Ruifeng Fund－China Merchants Bank－Daye Trust－ | Other | 1.27% | 62,095,032 | 62,095,032 | ||||
| Daye Trust·Profit increase 3 single fund plan | ||||||||
| Shenzhen Taianer Information Technology Co., Ltd. | Domestic Non -State-owned legal person | 1.07% | 61,165,682 | 61,165,682 | Pledge | 55,265,682 | ||
| Zhonghai Trust Co., Ltd.－ Zhonghai Trust－Tunghsu Optoelectronic ESOP pooled Fund trust | Other | 0.92% | 52,555,280 | 52,555,280 | ||||
| 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% | 48,619,336 | 48,619,336 | ||||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (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 | ||||||||
| 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 | 563,057,300 | RMB Common shares | 563,057,300 |
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | 332,382,171 | RMB Common shares | 332,382,171 |
| Minsheng Royal Fund Management Co., Ltd－-Ping An Bank-Daye Trust·Zengli 2 single Fund Trust | 97,192,224 | RMB Common shares | 97,192,224 |
| Qianhai equity investment fund (limited partnership) | 83,341,345 | RMB Common shares | 83,341,345 |
| Tunghsu Optoelectronic Technology Co., Ltd.－The first ESOP | 72,639,296 | RMB Common shares | 72,639,296 |
| Beixin Ruifeng Fund－China Merchants Bank－Daye Trust－Daye Trust·Profit increase 3 single fund plan | 62,095,032 | RMB Common shares | 62,095,032 |
| Shenzhen Taianer Information Technology Co., Ltd. | 61,165,682 | RMB Common shares | 61,165,682 |
| Zhonghai Trust Co., Ltd.－ Zhonghai Trust－Tunghsu Optoelectronic ESOP pooled Fund trust | 52,555,280 | RMB Common shares | 52,555,280 |
| China Life AMP Asset Management Co., Ltd.－Bohai Bank－Minsheng Trust－China Minsheng Trust-Zhicheng No.192 Tunghsu Optoelectronic Private placement fund trust plan | 48,619,336 | RMB Common shares | 48,619,336 |
| Kunshan Development Zone State-owned Investment Holding Co., Ltd. | 43,988,269 | RMB Common shares | 43,988,269 |
| 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 shareholders of Tunghsu Group Co., Ltd. have relationship and constitute persons taking concerted action. | ||
| 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 unlimitedterms 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 holdingType of controlling shareholder: legal person
| Name of the Controlling shareholder | Legal representative/Leader | Date of incorporation | Organization code | Principal business activities |
| Tunghsu Group Co., Ltd. | Li Zhaoting | November 5,2004 | 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 | |||
| 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 applicableNil3．Information about the controlling shareholder of the CompanyActual controller nature：Domestic natural personActual 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 as a 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
The actual controller controls the company by means of trust or managing the assets in other way□Applicable √Not applicable4.Other corporate shareholder holding over 10% of the Company’s shares□Applicable √Not applicable5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Partyand Other Commitment Subjects□Applicable √Not applicable
VII. Situation of the Preferred Shares
□ Applicable √Not applicableNo preference shares in the Company.
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-begin(share) | Amount of shares increased at the reporting period(share) | Amount of shares decreased at the reporting period(share) | Other changes increase/decrease | Shares held at the year-gain(share) |
| Wang Lipeng | Board chairman | In office | Male | 51 | August 3,2018 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Shuangcai | Independent director | In office | Male | 57 | July 29,2013 | 0 | 0 | 0 | 0 | 0 | |
| Lu Guihua | Independent director | In office | Male | 50 | May 19,2014 | 0 | 0 | 0 | 0 | 0 | |
| Han Zhiguo | Independent director | In office | Male | 55 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Guo Xuan | Director | In office | Male | 53 | August 20,2018 | 0 | 0 | 0 | 0 | 0 | |
| Zhou Yongjie | Director | In office | Male | 38 | August 20,2018 | 0 | 0 | 0 | 0 | 0 | |
| Wang Zhong | Director | In office | Female | 42 | August 20,2018 | 0 | 0 | 0 | 0 | 0 | |
| Guo Chunlin | Chairman of the supervisory committee | In office | Male | 39 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Xu Lingzhi | Supervisor | In office | Female | 52 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Chen Dewei | Supervisor | In office | Male | 55 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Xie Juwen | Supervisor | In office | Male | 41 | July 8,2016 | 0 | 0 | 0 | 0 | 0 |
| Wan Huanhuan | Supervisor | In office | Female | 33 | July 8,2016 | 0 | 0 | 0 | 0 | 0 | |
| Gong Xin | Board secretary | In office | Female | 39 | April 20,2015 | 100,000 | 0 | 0 | 0 | 100,000 | |
| Feng Qiuju | CFO | In office | Female | 41 | July 27,2018 | 0 | 0 | 0 | 0 | 0 | |
| Wang Jianqiang | Deputy General Manager | In office | Male | 53 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Liu Wentai | Deputy General Manager | In office | Male | 48 | July 28,2016 | 125,000 | 0 | 0 | 0 | 125,000 | |
| Wang Junming | Deputy General Manager | In office | Male | 54 | July 28,2016 | 0 | 0 | 0 | 0 | 0 | |
| Li Zhaoting | Board chairman | Dimission | Male | 53 | November 30,2011 | April 25,2018 | |||||
| Wu Jiwei | Board chairman | Dimission | Male | 48 | April 25,2018 | August 3,2018 | |||||
| Huang Jinliang | CFO | Dimission | Male | 39 | April 28,2017 | July 27,2018 | |||||
| Wang Zhonghui | Deputy General Manager | Dimission | Male | 41 | July 28,2016 | December 21,2018 | |||||
| Total | -- | -- | -- | -- | -- | -- | 225,000 | 0 | 0 | 0 | 225,000 |
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 25,2018 | Job change |
| Wu Jiwei | Board chairman | Dimission | August 3,2018 | Personal reasons |
| Huang Jinliang | CFO | Dimission | July 27,2018 | Job change |
| Gong Xin | Director | Engaged | August 3,2018 | Company talent strategy adjustment |
III.Posts holdingThe professional background, working experience and main responsibilities of the current board members,supervisors and senior managers in the company1. Mr. Wang Lipeng, Chinese nationality, was born in 1968, master's degree of Tianjin University. Beginning towork in 1989, he had served as the factory director of the electron gun factory of Shijiazhuang Baoshi ElectronicsGroup Co., Ltd, the general manager of Shijiazhuang Bao Dong Electronics Co., Ltd, the director and the generalmanager 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 degree,Senior Engineer, He had served as Deputy GeneralManager of Shijiazhuang Tractor Plant,Currently, 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 deputygeneral manager and director of the office of Beijing Chengjian Building Materials Industry Co., Ltd, secretary ofthe chairman and director of the office of Ocasia Investment Group Co., Ltd, and currently is the vice presidentand 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 ofHuman Resources of Beijing Huaqi Information (Aigo) Technology Co., Ltd., the Administrative Director ofHuman Resources of Gome Online, the General Manager Assistant and Administrative Director, theAdministrative Director of Human Resources of (Gome) Beijing Dazhong and the Administrative Director ofHuman Resources of (Gome) Zhongguancun Technology Group. She is currently the Senior Vice President ofTunghsu Group and the Executive Vice President of Tunghsu Capital.5.Mr. Zhang Shuangcai, Chinese Nationality, born in 1961, PhD in Management, Business Administrationpostdoctoral, Democratic National Construction Association. He serves as Associate Dean School of Management,Hebei University business professor, World Economic doctoral tutor, accounting, business managementprofessional master tutor. He used to be Baoding CPPCC Standing Committee, representative of 11th People'sCongress 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 Centerfor Economic Research of Hebei Province, Accounting association executive director, executive director ofPrivate Entrepreneur Association of Hebei Province, director of the Private Economic and Financial Committee ofHebei 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 Universityof Finance and Economics Professor of Accounting, Master Instructor, Chinese Certified Public Accountant. Former Tianjin University associate professor, associate professor at the Central University of Finance and professorat the Central University of Finance and Economics, master's and doctoral tutor. ow is Independent Director ofHanvon Technology Co., Ltd., China Minsheng Investment Corp., Ltd., Hebei Iron and Steel Co., Ltd. and thecompany.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 ZhengchenLaw Firm. From September 2006 to September 2013, he had been served as the independent director of
Shijiazhuang Baoshi Electronic Glass Co., Ltd. Since August 2013, he has been served as the independent directorof 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 November2005 to October 2007, he taught at Communication University of China. He joined Tunghsu Group Co. Ltd inOctober 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 ofTunghsu Group Co. Ltd and the general manager and supervisor of risk-control center of board-office headquarterof Tunghsu Group Co. Ltd.10.Mr. Chen Dewei, Chinese nationality, was born in 1964, college degree. Currently, he serves as the generalmanager 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 BeijingUniversity of Technology. He had served as the R & D Engineer and the project leader of Beiren Group, theproject leader and other posts of Sheet-folding Machine Branch of Beiren Group. Currently, he serves as theproject manager of comprehensive office of the company and the employee-representative supervisor of thecompany’s eighth board of supervisors.12.Ms. Wan Huanhuan, was born in July 1985, bachelor degree, professional in accounting of Industrial andCommercial University of Chongqing. She had served as the audit manager of Sino Railway Information GroupCo., Ltd, the business manager of Jiangsu Huaxing Certified Public Accountants and the business specialist ofShenzhen JunZhiYuan Certified Public Accountants. Currently, she serves as the audit manager of the company’saudit supervision department and the employee-representative supervisor of the company’s eighth board ofsupervisors.13.Mr. Wang Jianqiang, Chinese nationality, was born in 1964, university degree, graduated from mechanicalspecialty of Hebei University of Science and Technology. He had served for Shijiazhuang Baoshi ElectronicsGroup 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 8.5generation glass substrate project company.14. Mr. Liu Wentai, Chinese nationality, born in 1969, graduated from chemical-mechanical professional ofQingdao Institute of Chemical Industry, bachelor's degree. He had served as the workshop equipment supervisorof Shijiazhuang Baoshi Electronics Group Co., Ltd, equipment supervisor of maintenance and engineeringdepartment of Shijiazhuang Baoshi Electric Nitrate Co., Ltd, the director of liquid crystal glass research instituteof Tunghsu Group Co., Ltd, the general manger of the thermal engineering department, the vice president ofTunghsu Group with a concurrent post of purchasing director. Currently, he serves as the company’s vice-generalmanager 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 hadserved as the vice-general manager of Henan Anfei Electronic Glass Co. Ltd and the general manager ofZhengzhou Xufei Optoelectronic Technology Co. Ltd. Currently, he serves as Deputy General Manager of theCompany.16. Ms.Gong Xin, Nationality: Chinese, born in 1979, bachelor degree. She once worked in Capital EdgeInvestment and Management as Project Manager of Investment-banking Department, Assistant to Chairman, ViceGeneral Manager and etc. Now Gong is Chief of Securities Department, Company Direcotr and Board Secretaryof the company.17. Ms. Feng Qiuju, graduated from Hunan University with a Bachelor Degree in Accounting, Chinese Certified
Public Accountant. She has served as Financial Controller of Beijing Top Green Grass Co., Ltd., FinancialController of China Century Holding Group Co., Ltd., General Manager and Assistant President (Financial RiskManagement) of Financial Management Center of Tunghsu Group Subsidiary, and currently Office taking inshareholder 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 comprehensive 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 periodby securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives in the reporting periodDecision-making procedures, basis for determination and actual payment of the remuneration to directors ,supervisors and senior executivesThe payments for the company board directors, supervisors and senior managers are determined on the salarymanagement system. The annual payments (including basic wages, bonus, allowance, subsidy, welfare expenseand insurance premium, housing accumulation funds and other pretax net payments paid by the company) paid toboard directors, supervisors and senior managers in 2018 are all based on the salary standard administrationrelated to the job responsibilities, performance appraisal and salary level of the corresponding post. During thereport 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 |
| 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
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) | 8,465 |
| The total number of the in-service staff(person) | 8,606 |
| The total number of staff receiving remuneration in the current period(person) | 8,606 |
| Retired staff with charges paid by the parent company and main subsidiaries (person) | 0 |
| Professional | |
| Category | Number of persons（person） |
| Production | 2,689 |
| Sales | 934 |
| Tech | 3,563 |
| Finance | 259 |
| Administration | 1,161 |
| Total | 8,606 |
| Education | |
| Category | Number of persons（person） |
| Doctor | 8 |
| Master | 264 |
| Bachelor degree | 2,891 |
| Below college diploma | 5,443 |
| Total | 8,606 |
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 positionsand core talents. Make short-term, medium-term and long-term incentive plans. Short-term incentives mainlyinclude payment (annual pay) and profit sharing. Medium-term incentives include equity subscription and optionsubscription. Long-term incentives include employee stock ownership plan and partnership.
3.Training plan
1. Employment training for recruiters: one training is taken per month. Professional learning of recruitersshall 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 operatingphilosophy 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-beprofessionals. 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 professionchannels, provide sub-channel and systematic training separately. Train and reserve administrative personnel tomake performance of company achievable and push the implementation of strategy.4.Outsourcing situation
□ Applicable √ No Applicable
IX. Administrative structure
I. General situation
The company adheres to honest operation, standard operation and performs obligation of informationdisclose required in Company Law, Securities Law, Rule of Stock Exchange Listing in Shenzhen Stock Exchangeand Guideline on Standard Operation of Listing Companies on Main Board in Shenzhen Stock Exchange andother laws and regulations as well as related standard files in order to ensure fairness, timeliness and accuracy ofinformation disclosure.
Based on standard files on listing companies issued by China Securities Regulatory Commission, thecompany constantly adjusts and improves its organizations to ensure completeness, independence andstandardization 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 createdamong authorities, decision-making body, supervising body and administrative personnel, namely clearly defiedpowers and responsibilities, standard operation, mutual coordination and balance of mutual distraction. Separationof positions, clearly defined powers and responsibilities and balance of mutual distraction among differentorganizations 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 servesgeneral meeting of shareholders. During reporting period, 21 meetings were held in Board of Director and 121bills were approved. Special committee is set under Board of Director and 8 meetings were held in 2018. Board ofSupervisors serves all shareholders and 13 meeting were held in reporting period. Above meetings were held inconformity with related regulations of Articles of Association, Rule of Procedure of General Meeting ofShareholders, Rule of Procedure of Board of Director, Rule of Procedure of Board of Supervisor. Above meetingswere convened, held and voted reasonably and legally while resolutions were all legal and valid, so the meetingsplay 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 therelevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevantprovisions of CSRC.II. Independence and Completeness in business, personnel , assets, organization and financeThe controlling shareholder of the company has the standard behavior and hasn‘t directly or indirectly interferedthe 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 holdingshareholders.1. Human resource: Management on labor, personnel and wages by the company is independent from holding
shareholders. Senior managers all receive payments in the company; none of them receive payment from or servein controlling shareholder's entities.2. Finance: An independent financial management department and accounting system have been established. Aformal financial management system has been set up for independent financial decisions. An independent bankaccount has been opened for independent tax payment in accordance with the law. No accountant worksimultaneously in controlling shareholder's entities.3. Assets: The property rights of company's assets are clear and complete. Production system and supportingfacilities independent from holding shareholders have been built up, and free use and embezzlement of corporateassets 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 ofDirectors, Board of Supervisors and internal organizations operate independently and no affiliation exists betweenholding shareholders and functional departments. All the holding shareholders participate in corporate decisions inaccordance with legal procedures and have caused no influence on the independence of the corporate operationand management.5. Business: The company operates independently with complete business structure as well as independentproduction, sale and financial systems. The company operates and manages independently in accordance with thestatutory scope of business, and no shareholders will directly or indirectly control and intervene in the supply andsale. Complete and independent business has been maintained with major shareholders.
III. Competition situations of the industry
□Applicable e √Not applicableIV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period1.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 26,2018 | January 27,2018 | Announcement No.2018—011,China 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 26,2018 | March 27,2018 | Announcement No.2018—028,China 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 25,2018 | April 26,2018年 | Announcement No.2017—052,China Securities Daily, Securities Time, Shanghai Securities News ,Securities |
| 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 10,2018 | May 11,2018 | Announcement No.2018—059,China 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 28,2018 | June 29,2018 | Announcement No.2017—087,China 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 30,2018 | July 31,2018 | Announcement No.2018—100,China 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 20,2018 | August 21,2018 | Announcement No.2018—117,China 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 15,2018 | November 16,2018 | Announcement No.2018—133,China 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 10,2018 | December 11,2018 | Announcement No.2018—147,China 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 25,2018 | December 26,2019 | Announcement No.2018—155,China 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
V. Duty performance of independent Directors1. 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 Communication | 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 Twice2.Objection of independent directors on some relevant issuesObjection of independent directors on some relevant issues□ Yes √NoIndependent directors proposed no objection against the relevant matters in the reporting period.3. Other notes to duty performance of independent directorsHas an independent director’s advice to the Company been accepted√Yes □NoExplanation 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 andregulations 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 theprovisions 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 developmentdecisions 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, raisemoney deposit associated with use, finance companies, supplement directors, accounting policy changes, relatedparty transactions, to increase commitment subject changes, raise funds use and replacement, raise funds investmentproject change, company executives change, company public offering of A shares, convertible corporate bonds andaudit opinions issued by the independent directors, which has effectively ensured the impartiality and objectivity ofdecision-making of the Board of Directors, maintained the whole interests of the company and the legitimate rightsof miedium and small shareholders, and played a positive role in the company‘s standard operation and healthydevelopment.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting period1.Performance of duties of the Nomination CommitteeIn 2018, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews andmake recommendations on the company’s Candidate for additional director and new CFO candidates as per theprovisions of “Implementation Rules of Nomination Committee of the Board of Directors”.2.Performance of Remuneration and Appraisal CommitteeIn 2018, Remuneration and Appraisal Committee under the Board of Directors have conscientiously performedtheir 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 AppraisalCommittee under the Board of Directors”.3. Performance of Audit CommitteeIn 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, businessengagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and thefinancial accounting statements issued by the certified accountants, and supervised the certified accountants tosubmit the audit report within the appointment time. At the same time, the Audit Committee believes that thecertified accountants have strictly followed the provisions of the independent audit rules from CPAs to performthe audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated competence isqualified, and the financial accounting statements audited by the certified accountants shall reflect the true,accurate and complete financial condition.4. Performance of Strategy CommitteeIn accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of theBoard and Articles of Incorporation, Strategy Committee of the company is diligent and dutiful in fulfilling itsduties and carrying out its work in 2018. It mainly focuses on the discussion and revision of strategic developmentplanning of the company.VII. Work of the supervisory CommitteeDid the supervisory Committee find any risk existing in performing the supervision activities in the reportingperiod□Yes √NoThe supervisory Committee has no objection against any matters under supervision in the reporting periodVIII. Assessment and incentive Mechanism for Senior executives
The company puts store by performance evaluation of administrative personnel, so the company graduallyimproves evaluation and inspiration mechanism of administrative personnel and builds improved paymentmanagement system and performance management system and finally found payment and evaluation committeeunder Board of Director, which is in charge of evaluating administrative personnel. Performance evaluation has aclose influence on payment of administrative personnel. The company makes a scientific and effective inspiration
mechanism.IX. Internal control situations1. Specific situations on major defects of internal control discovered during report period□ Yes √ No2.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 or dismissal of cadres in important positions, arrangement of major projects and 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 |
| 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. |
| 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 |
| 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 |
| 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 29,2019 |
| 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 √NoDoes the internal control audit report issued by the CPAs agree with the self-assessment report of the Board ofDirectors√Yes □No
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or withoutpayment in full at maturity on the approval date for annual report disclosedYesI. Basic information of the corporate bonds
| Bond Name | Abbreviated Bond Name | Code | Issue Date | Date Due | Bond Balance(RMB10,000) | 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 19,2015 | May 19,2020 | 95,200 | 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 60,000,000.00 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 439,573 declared put-back of "15 Tunghsu Bonds", with the put-back amount of RMB 46,594,738.00 (including interest), and the remaining 9,560,427 custodian bonds. | ||||||
II. Information about the bond trustee and credit rating agency
| Bond trustee: | |||||||
| Name | Guangzhou Securities Co., Ltd. | Business Address | 19,20/F, Main Tower , Guangzhou International Finance Center, No.5 Zhujiang West Road, | Contacts | Shi Jianhua, Yan Xiangjun | Tel | 020-88836999 |
| 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(RMB10,000) | 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 thecompany’s 2016 Annual Report.
By tracking and rating the long-term credit status of the main body of the company and corporate bondspublicly 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 onwww.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 outwithin 2 months after the company’s disclosure of 2018 annual report. Also, the United Rating Co.,Ltd shall carryout 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 repaymentRepayment PlanI. Payment of the interest1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 ofeach year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working dayafter the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, theinterest 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 otherrelated institutions. The concrete information of the interest payment will be specified in the Interest PaymentAnnouncement 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 therelevant tax should be paid.II. The repayment of the principal1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise theputtable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bondsbeing sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall bepostponed to the first working day after the original day, and there is no need to pay interest in the deferredperiod)2. The repayment of the principal of the bonds will be handled through the bond registration institution and otherrelated institutions. The concrete information of repayment of the principal of the bonds will be specified in thePrincipal Repayment Announcement issued on the media designated by CSRC, with in accordance with therelevant state regulations.Safeguard measures for the repaymentI. A designated special department in charge of the repayment workingThe company designated its finance department to take the lead in the coordination work for repayment of thebonds and the finance department shall coordinate other relevant departments to schedule the demanded funds forthe repayment of the bonds in every year’s financial budget, for ensuring the repayment of the interest andprincipal of the bonds is timely, guaranteeing the bond-holder’s interest. The company will set up a working teamfor repayment 15days before the day that is the interest paying day or principal repaying day of the bonds, withthe personnel of the finance department being included, to specially in charge of the work of paying the interest ofthe bonds and the repayment of the principal.II. Establishing Meeting Rules for Bond-holdersAccording to the provisions specified in the Pilot Approach, the company with bond trustee has established theMeeting 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 theBond-holders, which provided a reasonable institutional arrangement for the timely and full payment to theinterest and the principal of the corporate bonds.III. Making the full use of the bond trusteeAccording to the requirements specified in the Pilot Approach, the company has adopted the institution of bondtrustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement ofBond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders tosupervise the relevant information about the company and take all necessary measures to protect the legitimateinterest of the bond-holders when the interest or principal of the bonds cannot be repaid in time. The companyshall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management, beingcooperative when the bond trustee performance its duties, and regularly submit the report of commitmentfulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bondtrustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Management.Ⅳ. Strictly fulfilling the obligation of information disclosureThe company shall adhere to the information disclosure principles of authentic, accurate and completed, makingthe information of the company’s repaying ability and use of the raised funds to be supervised by the bond trusteeand shareholders, for preventing the risk of repayment. According to the Agreement of Bond EntrustedManagement and relevant regulations, the company shall release the information of major issues, which includebut not limited to the following contents: (1) According to the Prospectus and agreement with the registeredtrustee institution, the company shall transfer the maturity interest payment or principal to the account designatedby the registered trustee institution; (2) By estimate or in fact, the company cannot fully repay the interest orprincipal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guaranteecontract for external or other major contracts may have significant adverse effects of repaying the interest andprincipal of the bonds; (4) A severe loss occurred or expected to occur, and the loss exceeds 10% of the net assetaudited in the last accounting year; (5) Occurrence of capital reduction, merger, division, dissolution, file forbankruptcy, entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of theamount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accountingyear; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in thelast accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change thestipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of therelevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others maysignificantly impact the repaying of the interest and principal or circumstances specified by laws, administrativeregulations and stipulations by the CSRC or exchange.Ⅴ. Setting up the capital management plan and strictly implementing the planAfter the issuance of the bonds, the company shall further reinforce the company’s assets and liabilitiesmanagement, liquidity management, use management of the raised funds, funds management and so forthaccording to the company’s debt structure. Also, the company will set up monthly and yearly funds use plan basedon the maturity of repaying the interest and principal, ensuring on-schedule, timely and full-amount preparing ofthe 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 thegeneral meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of thebonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutionsand make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capitalexpenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries andbonuses of the directors and senior management personnel; (4) No transferring of principal responsible personneland so on.VI. Information about the bond-holder meeting during the reporting periodThere 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 InterimReport on the Entrusted Management of Major Events of 2015 Corporate Bond of Tunghsu Optoelectronic (on thechange of Directors and Chairman) were released on May 10, 2018 and August 9, 2018 respectively, and the
Company was visited on the spot in December 2018 to review the bank reconciliation of the special account forraised 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 RMB10,000
| Items | 2018 | 2017 | Rate of change in the same period |
| Earnings before interest, tax, depreciation and amortization | 489,789.49 | 444,259.47 | 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 lastyear√Applicable □ Not applicableThe current ratio decreases by 56.48%, mainly due to the increase of RMB 2.6 billion in short-term borrowings atthe 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 torecover 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 periodThe company 8th Board of Directors approved the application to National Association of Financial MarketInstitutional Investors (NAFMII) for registration and issuance of less than 4.7 billion medium term note onSeptember 8, 2016. The extraordinary general shareholders’ meeting was convoked on September 26, 2016 andapproved the program concerning the proposed registration and issuance of the medium term note. The mediumterm note in 2016 was 4.7 billion in two periods including the first period with two types of (3+2 years) and 5 yearstotaling 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 paymenttogether with the principal cashing for the last period. The interest payment period has not expires within the reportperiod and the interest accrued was RMB 224,280,000.00 .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 issuedtoward the public 1 billion bones on May 19, 2015 , the first period bond interest 60,000,000.00 was paid in full
amount on schedule in 2016, and the first period bond interest 43,957,300.00 was paid in full amount on schedule in2018.X.Information about the bank credit obtaining and use, as well as repayment of the bank loans during thereporting period
The balance of the total amount of the short-term and long-term loans is RMB11,102,696,251.33, increasedRMB605,143,618.36 compared with the end of year 2017, which mainly because of the need of the production andoperation and the construction of projects. The company strictly conformed to requests of bank loans to use thefunds 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 ofthe bonds during the reporting period
During the reporting period, there is no use of corporate bonds to raise funds, and the company has strictlyfulfilled its commitment that the bond raised funds will not be directly or indirectly invested in the real estatedevelopment business, and will not be used to increase the capital of subsidiaries engaged in the real estatebusiness or lend money to them.
XII.Major events occurred during the reporting periodNilXIII. Whether the corporate bonds have a guarantor□ Yes √No
XI. Financial Report
I. Audit report
| Type of auditing opinion | Standard report without qualified opinion |
| Date for signing the auditor’s report | April 29,2019 |
| 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. OpinionWe 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, theCompany’s and consolidated income statements, the Company’s and consolidated cash flow statements, theCompany’s and consolidated statements of changes in shareholders’ equity for the year then ended, as well as thenotes to the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations ofAccounting Standards for Business Enterprises in all significant aspects which gave a true and fair view of theconsolidated and parent financial position of the Company as at 31 December 2018 and the consolidated andparent 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 Accountantsin China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we areindependent of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled ourother ethical responsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained 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 inour audit of the financial statements of the current period. These matters were addressed in the context of our auditof the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters.
We confirm that the following matters are the key audit matters that need to be communicated in theaudit 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 thefinancial statements.
Tunghsu Optoelectronic recognized operating income of 28,211.7 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 thecompletion progress according to the proportion of the accumulated actual cost to the estimated total cost underthe condition that relevant projects can be reliably estimated. The estimated total cost of the budget contractinvolves significant accounting estimation and judgment. The estimation and judgment are influenced by existingexperience and judgment on the future market. The rationality of the management's estimation and judgment onthe estimated total cost will have a significant impact on the recognition of the income of relevant projects ofTunghsu Optoelectronic; Meanwhile, the sales revenue of products accounts for a large proportion of theoperating revenue of Tunghsu Optoelectronic;
Therefore, we will recognize the estimated cost of the construction contract and the recognition ofproduct sales income as key audit matters.
2. Audit response
(1) For the recognition of product sales income, the main auditing procedures we implement are asfollows:
Understand and evaluate the rationality and effectiveness of management's design of key internalcontrols related to revenue recognition; (Check whether the accounting policies for income recognition conform tothe 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 ofTunghsu Optoelectronic, and conduct confirmation and visits to important customers to confirm the occurrence ofproduct sales income;
For the product sales revenue recognized before and after the balance sheet of TunghsuOptoelectronic, check the documents such as transportation documents and customer acceptance documents toevaluate 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 haveimplemented are as follows:
Understand and evaluate the rationality and operational effectiveness of the management's keyinternal control design related to project contract budgeting and revenue recognition;
Using sampling method, compare and analyze the actual total cost of completed projects with theestimated total cost of the contract made by the management on whether there are abnormal differences, so as tojudge whether the management effectively manages the contract budget dynamically;
Compare and analyze the estimated total cost of unfinished projects with the historical actual cost ofsimilar completed projects, and evaluate the management's experience and ability in making such accountingestimate;
By sampling method, check the compilation basis of the estimated total cost of TunghsuOptoelectronic and evaluate the rationality of the estimated total cost;
Obtain company income calculation details and execute recalculation procedures to determine theaccuracy 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 relevantinformation disclosure.
As of December 31, 2018, the book value of goodwill in the consolidated financial statements ofTunghsu Optoelectronic was RMB 2835.6726 million, and the provision for goodwill impairment that had beenmade was RMB 10.1634 million. Management performs an impairment test on goodwill at the end of each yearand adjusts the book value of goodwill based on the results of the impairment test. The results of the goodwillimpairment 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 bymanagement's judgments on the future market and the economic environment. The use of different estimates andassumptions will have a significant impact on estimating the recoverable value of goodwill. Because the goodwillarising from the acquisition of 100% equity interest in Shanghai Sunlong Bus Co., Ltd. amounted to RMB2443.6274 million, Net carrying amount accounting for 86.17% of the goodwill in the consolidated statementbecause of its huge amount. Therefore, we took the impairment measurement of the goodwill arising from theacquisition 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 impairmentassessment;
(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 developmenttrend of the macro-economy and the industry; evaluate the assumptions and methods used by management inestimating the recoverable value of assets; evaluate and test the assumptions and valuation methods made byTunghsu Optoelectronic in assessing whether goodwill is impaired as of December 31, 2018, determination ofasset groups related to goodwill, cash flow forecasts and other data and parameters used, and evaluate otherimportant 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 andcalculation formula are reasonable, and review and calculate the appraisal data. At the same time, interview theappraiser, including the purpose and scope of the appraisal report issued, its independence, the selection ofappraisal 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 informationcomprises information of the Company's annual report in 2018, but excludes the financial statements and ourauditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation identified above and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit, or otherwise appears to be materiallymisstated.
If, based on the work we have performed on the other information that we obtained prior to the dateof this auditor's report, we conclude that there is a material misstatement of this other information, we are requiredto 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 withthe requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and fordesigning, implementing and maintaining internal control that is necessary to ensure that the financial statementsare free from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing theCompany's ability to continue as a going concern, disclosing matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company or to cease operations, orhas no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reportingprocess.
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 wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includesour opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with the audit standards will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected 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 maintainprofessional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting 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 auditprocedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management ofthe Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the relateddisclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
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 thedisclosures, and whether the financial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements and bear all liability forthe opinion.
We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit matters, including any significant deficiencies in internalcontrol that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and other mattersthat 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 mattersthat were of most significance in the audit of the financial statements of the current period and are therefore thekey audit matters. We describe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh 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: RMB1.Consolidated Balance sheetPrepared by: Tunghsu Optoelectronic Technology Co., Ltd.
December 31,2018
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 19,807,094,397.16 | 27,456,759,768.86 |
| Settlement provisions | ||
| Outgoing call loan | ||
| Financial assets measured at fair value |
| with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable & Account receivable | 14,852,563,398.56 | 8,411,548,269.26 |
| Including：Notes receivable | 499,781,503.17 | 538,128,584.84 |
| Account receivable | 14,352,781,895.39 | 7,873,419,684.42 |
| Prepayments | 5,215,414,219.51 | 2,021,119,950.95 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 1,125,991,020.55 | 1,094,347,121.61 |
| Including：Interest receivable | 56,811,961.67 | 49,456,785.29 |
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 3,510,786,666.85 | 4,909,570,356.36 |
| Assets held for sales | 119,355,435.58 | 213,034,435.58 |
| Non-current asset due within 1 year | ||
| Other current asset | 809,360,778.49 | 2,559,947,333.75 |
| Total of current assets | 45,440,565,916.70 | 46,666,327,236.37 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Disposable financial asset | 243,158,605.30 | 100,000,056.00 |
| Expired investment in possess | ||
| Long-term receivable | 344,430,815.68 | 143,988,866.91 |
| Long term share equity investment | 2,174,347,969.22 | 2,130,640,158.90 |
| Property investment | 686,993,881.02 | 58,229,439.86 |
| Fixed assets | 9,634,463,323.77 | 11,379,727,456.13 |
| Construction in progress | 5,013,941,980.61 | 3,667,972,406.42 |
| Productive biological assets | ||
| Gas & petrol | ||
| Gas & petrol | 1,146,949,745.14 | 1,001,796,110.02 |
| Intangible assets | 37,122,235.94 | 15,397,704.97 |
| Development expenses | 2,835,672,586.90 | 2,587,678,140.99 |
| Long-germ expenses to be amortized | 21,884,204.82 | 26,538,304.02 |
| Deferred income tax asset | 533,094,627.68 | 526,633,526.09 |
| Other non-current asset | 4,463,496,966.82 | 306,402,939.48 |
| Total of non-current assets | 27,135,556,942.90 | 21,945,005,109.79 |
| Total of assets | 72,576,122,859.60 | 68,611,332,346.16 |
| Current liabilities | ||
| Short-term loans | 8,361,106,651.33 | 5,712,826,382.20 |
| 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 | 10,276,094,132.88 | 5,700,886,719.54 |
| Advance payment | 1,402,283,662.37 | 1,655,137,563.63 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 238,146,977.17 | 207,697,362.25 |
| Tax payable | 817,173,127.12 | 294,979,419.96 |
| Other account payable | 2,089,603,676.60 | 2,029,716,039.08 |
| Including：Interest payable | 117,554,951.58 | 107,195,147.20 |
| Dividend payable | 35,000,000.00 | |
| 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 | 3,697,392,864.91 | 5,045,608,756.45 |
| Other current liability | 315,193,128.73 | 227,155,178.97 |
| Total of current liability | 27,196,994,221.11 | 20,874,007,422.08 |
| Non-current liabilities： | ||
| Long-term loan | 2,741,589,600.00 | 5,209,726,250.77 |
| Bond payable | 5,630,818,825.32 | 5,665,126,090.52 |
| Including：preferred stock |
| Sustainable debt | ||
| Long-term payable | 2,644,309,592.95 | 3,276,308,254.44 |
| Long-term payable Employees' remuneration | ||
| Expected liabilities | 99,765,750.04 | 156,421,713.31 |
| Deferred income | 676,146,399.31 | 592,290,617.42 |
| Deferred income tax liability | 55,192,983.97 | 60,149,328.74 |
| Other non-current liabilities | 108,000,000.00 | 608,000,000.00 |
| Total non-current liabilities | 11,955,823,151.59 | 15,568,022,255.20 |
| Total of liability | 39,152,817,372.70 | 36,442,029,677.28 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 21,786,233,393.78 | 21,979,242,606.60 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | -29,175.80 | -4,518.45 |
| Special reserves | 12,614,331.35 | 1,983,921.21 |
| Surplus reserves | 245,507,019.95 | 224,133,824.86 |
| Common risk provision | ||
| Retained profit | 4,750,977,557.86 | 3,009,860,755.82 |
| Total of owner’s equity belong to the parent company | 32,521,130,925.14 | 30,941,044,388.04 |
| Minority shareholders’ equity | 902,174,561.76 | 1,228,258,280.84 |
| Total of owners’ equity | 33,423,305,486.90 | 32,169,302,668.88 |
| Total of liabilities and owners’ equity | 72,576,122,859.60 | 68,611,332,346.16 |
Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Gao Feipeng2. Balance sheet of the Parent Company
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 9,732,302,654.23 | 11,224,359,236.39 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable & account receivable | 176,613,926.23 | 24,037,262.59 |
| Including：Notes receivable | 50,000.00 | 200,000.00 |
| Account receivable | 176,563,926.23 | 23,837,262.59 |
| Prepayments | 2,008,364.11 | 16,902,375.19 |
| Other account receivable | 6,281,675,319.27 | 5,497,581,593.85 |
| Including：Interest receivable | 7,521,489.86 | 41,868,921.15 |
| Dividend receivable | 500,000,000.00 | 665,000,000.00 |
| Inventories | 269,759,580.95 | 509,283,364.38 |
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 148,973.38 | 1,220,148,973.38 |
| Total of current assets | 16,462,508,818.17 | 18,492,312,805.78 |
| Non-current assets： | ||
| Available for sale of financial assets | 129,500,056.00 | 100,000,056.00 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 26,504,735,200.89 | 23,020,364,897.17 |
| Property investment | ||
| Fixed assets | 160,867,244.63 | 44,669,881.93 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Intangible assets | 9,339,387.26 | 9,687,094.58 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 119,964,967.85 | 58,105,970.47 |
| Other non-current asset | 1,381,400.00 | |
| Total of non-current assets | 26,924,406,856.63 | 23,234,209,300.15 |
| Total of assets | 43,386,915,674.80 | 41,726,522,105.93 |
| Current liabilities | ||
| Short-term loans | 4,278,000,000.00 | 2,760,000,000.00 |
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable& account payable | 11,500,796.58 | 15,219,920.86 |
| Advance payment | 1,991,498.78 | 421,587.90 |
| Employees’ wage payable | 4,484,401.86 | 4,061,413.48 |
| Tax payable | 17,959,833.09 | 28,150,779.48 |
| Advance payment | 3,656,725,253.66 | 503,617,925.37 |
| Employees’ wage payable | 97,197,464.99 | 79,827,566.10 |
| Tax payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 1,533,383,333.28 | 2,769,233,333.30 |
| Other current liability | ||
| Total of current liability | 9,504,045,117.25 | 6,080,704,960.39 |
| Non-current liabilities： | ||
| Long-term loan | 1,512,500,000.00 | |
| Bond payable | 5,630,818,825.32 | 5,665,126,090.52 |
| 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 | 5,630,818,825.32 | 7,177,626,090.52 |
| Total of liability | 15,134,863,942.57 | 13,258,331,050.91 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instruments | ||
| Including：preferred stock |
| Sustainable debt | ||
| Capital reserves | 21,832,453,907.50 | 21,861,207,672.90 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserves | 226,517,795.62 | 205,144,600.53 |
| Retained profit | 467,252,231.11 | 676,010,983.59 |
| Total of owners’ equity | 28,252,051,732.23 | 28,468,191,055.02 |
| Total of liabilities and owners’ equity | 43,386,915,674.80 | 41,726,522,105.93 |
3.Consolidated income statement
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 28,211,700,021.12 | 17,276,969,039.03 |
| Incl：Business income | 28,211,700,021.12 | 17,276,969,039.03 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 25,817,783,711.68 | 15,436,795,701.80 |
| Incl：Business cost | 23,204,078,792.38 | 13,674,487,646.24 |
| 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 | 237,483,799.16 | 94,070,286.07 |
| Sales expenses | 334,476,301.51 | 209,160,183.73 |
| Administrative expenses | 653,479,277.58 | 393,125,009.94 |
| R & D expenses | 572,089,634.30 | 256,991,555.91 |
| Financial expenses | 722,695,173.66 | 753,977,500.45 |
| Including：Interest expenses | 1,204,287,050.60 | 1,142,316,421.06 |
| Interest income | 506,083,846.24 | 442,489,241.64 |
| Asset impairment loss | 93,480,733.09 | 54,983,519.46 |
| Add：Other income | 251,303,953.08 | 352,095,131.45 |
| Investment gain（“-”for loss） | 80,925,191.79 | 63,704,853.98 |
| Incl: investment gains from affiliates | 64,366,051.65 | 4,663,254.00 |
| Gains from change of fir value （“-”for loss） | ||
| Gains from currency exchange（“-”for loss） | ||
| Assets disposal income | 1,515,607.51 | |
| III. Operational profit（“-”for loss） | 2,727,661,061.82 | 2,255,973,322.66 |
| Add ：Non-operational income | 19,063,270.76 | 3,569,062.38 |
| Less：Non business expenses | 8,892,705.00 | 2,408,772.80 |
| IV.Total profit(“-”for loss) | 2,737,831,627.58 | 2,257,133,612.24 |
| Less：Income tax expenses | 469,003,541.40 | 336,234,590.36 |
| V. Net profit | 2,268,828,086.18 | 1,920,899,021.88 |
| 1.Net continuing operating profit | 2,268,828,086.18 | 1,920,899,021.88 |
| 2.Termination of operating net profit | ||
| Net profit attributable to the owners of parent company | 2,163,607,505.39 | 1,730,174,564.57 |
| Minority shareholders’ equity | 105,220,580.79 | 190,724,457.31 |
| VI. Net after-tax of other comprehensive income | -42,240.07 | -8,409.93 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | -24,657.35 | -4,518.45 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | -24,657.35 | -4,518.45 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | -24,657.35 | -4,518.45 |
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | -17,582.72 | -3,891.48 |
| VII. Total comprehensive income | 2,268,785,846.11 | 1,920,890,611.95 |
| Total comprehensive income attributable to the owner of the parent company | 2,163,582,848.04 | 1,730,170,046.12 |
| Total comprehensive income attributable minority shareholders | 105,202,998.07 | 190,720,565.83 |
| 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 net profit of RMB -11,435,425.33, last period the combined party realized RMB-13,043,965.22.Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Gao Feipeng4. Income statement of the Parent Company
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 192,196,941.80 | 224,036,245.36 |
| Incl：Business cost | 152,993,440.70 | 157,850,832.08 |
| Business tax and surcharge | 6,644,502.15 | 5,861,889.82 |
| Sales expenses | ||
| Administrative expenses | 39,463,721.23 | 36,146,618.59 |
| R & D expenses | 8,322,311.54 | 4,750,475.24 |
| Financial expenses | 379,774,437.36 | 440,687,806.43 |
| Including：Interest expenses | 645,866,773.53 | 715,302,441.40 |
| Interest income | 275,451,910.63 | 277,294,157.23 |
| Asset impairment loss | 10,403,118.18 | 953,612.93 |
| Add：Other income | 5,000.00 | |
| Investment gain（“-”for loss） | 556,448,607.09 | 728,710,908.36 |
| Including: Investment gains from affiliates | 64,362,875.25 | 4,680,716.60 |
| Gains from change of fir value | ||
| Assets disposal income | -83,936.54 | |
| II. Operational profit（“-”for loss） | 150,960,081.19 | 306,500,918.63 |
| Add ：Non-operational income | 1,125,858.13 | 3,258.50 |
| Less：Non business expenses | 212,985.83 | |
| III.Total profit(“-”for loss) | 151,872,953.49 | 306,504,177.13 |
| Less：Income tax expenses | -61,858,997.38 | -54,393,366.62 |
| IV. Net profit（“-”for net loss） | 213,731,950.87 | 360,897,543.75 |
| 1.Net continuing operating profit | 213,731,950.87 | 360,897,543.75 |
| 2.Termination of operating net profit | ||
| V.Net of profit of other comprehensive income | ||
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets |
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II）Other comprehensive income that will be reclassified into profit or loss. | ||
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | 213,731,950.87 | 360,897,543.75 |
| 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 | 24,460,106,952.41 | 16,319,362,118.18 |
| 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 |
| 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 | 342,117,355.30 | 368,068,395.17 |
| Other cash received from business operation | 1,112,750,115.02 | 1,393,784,267.32 |
| Sub-total of cash inflow | 25,914,974,422.73 | 18,081,214,780.67 |
| Cash paid for purchasing of merchandise and services | 22,506,440,909.95 | 13,863,864,085.75 |
| 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 | 1,148,904,118.69 | 675,531,188.29 |
| Taxes paid | 874,045,127.91 | 851,129,505.84 |
| Other cash paid for business activities | 997,332,261.66 | 1,437,511,489.48 |
| Sub-total of cash outflow from business activities | 25,526,722,418.21 | 16,828,036,269.36 |
| Net Cash flow generated by business operation | 388,252,004.52 | 1,253,178,511.31 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | 2,287,107,423.40 | 10,720,000,000.00 |
| Cash received as investment gains | 14,623,990.55 | 61,158,304.69 |
| Net cash retrieved from disposal of | 1,342,541.78 | 4,233.00 |
| fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | 392,179,613.50 | |
| Other investment-related cash received | 2,065,561,030.00 | 110,685,142.80 |
| Sub-total of cash inflow due to investment activities | 4,760,814,599.23 | 10,891,847,680.49 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 5,397,726,636.77 | 2,120,419,910.48 |
| Cash paid as investment | 1,100,017,546.00 | 2,743,196,945.39 |
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | 392,683,239.84 | 409,333,786.20 |
| Other cash paid for investment activities | 4,514,811,164.19 | 11,372,003,800.00 |
| Sub-total of cash outflow due to investment activities | 11,405,238,586,80 | 16,644,954,442.07 |
| Net cash flow generated by investment | -6,664,423,987.57 | -5,753,106,761.58 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 29,782,250.00 | 4,089,127,645.26 |
| Incl: Cash received as investment from minor shareholders | 29,000,000.00 | 381,127,660.00 |
| Cash received as loans | 9,271,938,586.70 | 6,415,966,666.66 |
| Cash received from bond placing | ||
| Other financing –related ash received | 1,625,337,955.88 | 6,079,515,983.16 |
| Sub-total of cash inflow from financing activities | 10,927,058,792.58 | 16,584,610,295.08 |
| Cash to repay debts | 10,790,796,153.46 | 7,676,192,931.29 |
| Cash paid as dividend, profit, or interests | 1,634,663,688.12 | 1,506,017,279.72 |
| Incl: Dividend and profit paid by subsidiaries to minor shareholders | 35,000,000.00 | 30,000,000.00 |
| Other cash paid for financing activities | 2,448,920,714.02 | 3,305,362,985.49 |
| Sub-total of cash outflow due to financing activities | 14,874,380,555.60 | 12,487,573,196.50 |
| Net cash flow generated by financing | -3,947,321,763.02 | 4,097,037,098.58 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 5,470,280.86 | -20,700,620.86 |
| V.Net increase of cash and cash equivalents | -10,198,023,465,21 | -423,591,772.55 |
| Add: balance of cash and cash equivalents at the beginning of term | 25,114,660,756.25 | 25,538,252,528.80 |
| VI ..Balance of cash and cash equivalents at the end of term | 14,916,637,291.04 | 25,114,660,756.25 |
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 | 72,531,777.31 | 257,729,472.43 |
| Tax returned | ||
| Other cash received from business operation | 727,597,222.22 | |
| Sub-total of cash inflow | 72,531,777.31 | 985,326,694.65 |
| Cash paid for purchasing of merchandise and services | 39,022,885.88 | 499,508,106.89 |
| Cash paid to staffs or paid for staffs | 23,420,776.83 | 12,003,112.70 |
| Taxes paid | 17,690,820.97 | 13,008,194.55 |
| Other cash paid for business activities | 12,832,370.74 | 704,986,879.59 |
| Sub-total of cash outflow from business activities | 92,966,854.42 | 1,229,506,293.73 |
| Net Cash flow generated by business operation | -20,435,077.11 | -244,179,599.08 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | 2,788,307,423.40 | 10,720,000,000.00 |
| Cash received as investment gains | 678,923,452.07 | 631,146,896.47 |
| 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 |
| Other investment-related cash received | 18,756,644,994.40 | 4,090,240,995.50 |
| Sub-total of cash inflow due to investment activities | 22,223,875,869.87 | 15,441,387,891.97 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 56,199.61 | 108,600.00 |
| Cash paid as investment | 4,234,000,000.00 | 8,020,648,977.50 |
| Net cash received from subsidiaries and other operational units | 817,834,645.97 | |
| Other cash paid for investment activities | 20,503,969,862.86 | 16,271,549,676.04 |
| Sub-total of cash outflow due to investment activities | 25,555,860,708.44 | 24,292,307,253.54 |
| Net cash flow generated by investment | -3,331,984,838.57 | -8,850,919,361.57 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 3,707,999,985.26 | |
| Cash received as loans | 4,858,000,000.00 | 4,241,666,666.66 |
| Cash received from bond placing | ||
| Other financing –related ash received | 10,928,715,830.12 | 241,954,213.63 |
| Sub-total of cash inflow from financing activities | 15,786,715,830.12 | 8,191,620,865.55 |
| Cash to repay debts | 6,132,307,300.02 | 3,730,033,333.36 |
| Cash paid as dividend, profit, or interests | 1,020,777,853.83 | 1,044,754,330.46 |
| Other cash paid for financing activities | 6,773,267,342.75 | 49,565,032.84 |
| Sub-total of cash outflow due to financing activities | 13,926,352,496.60 | 4,824,352,696.66 |
| Net cash flow generated by financing | 1,860,363,333.52 | 3,367,268,168.89 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 433,490.39 | |
| V.Net increase of cash and cash equivalents | -1,492,056,582.16 | -5,727,397,301.37 |
| Add: balance of cash and cash equivalents at the beginning of term | 11,224,359,236.39 | 16,951,756,537.76 |
| VI ..Balance of cash and cash equivalents at the end of term | 9,732,302,654.23 | 11,224,359,236.39 |
7. Consolidated Statement on Change in Owners’ EquityAmount in this period
In RMB
| Items | Amount in this period | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 5,730,250,118.00 | 21,979,242,606.60 | 4,422,320.00 | -4,518.45 | 1,983,921.21 | 224,133,824.86 | 3,009,860,755.82 | 1,228,258,280.84 | 32,169,302,668.88 | ||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under common control | |||||||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 5,730,250,118.00 | 21,979,242,606.60 | 4,422,320.00 | -4,518.45 | 1,983,921.21 | 224,133,824.86 | 3,009,860,755.82 | 1,228,258,280.84 | 32,169,302,668.88 | ||||
| III.Changed in the current year | -193,009,212.82 | -24,657.35 | 10,630,410.14 | 21,373,195.09 | 1,741,116,802.04 | -326,083,719.08 | 1,254,002,818.02 | ||||||
| （1）Total comprehensive income | -24,657.35 | 2,163,607,505.39 | 105,202,998.07 | 2,268,785,846 .11 | |||||||||
| （II）Investment or decreasing of capital by owners | 2,516,287.18 | 38,810,610.28 | 41,326,897.46 | ||||||||||
| 1．Ordinary Shares invested by Shar | 39,734,500.00 | 39,734,500.00 | |||||||||||
| eholders | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||
| 4．Other | 2,516,287.18 | -923,889.72 | 1,592,397.46 | ||||||||||
| （III）Profit allotment | 21,373,195.09 | -422,490,703.35 | -401,117,508.26 | ||||||||||
| 1.Providing of surplus reserves | 21,373,195.09 | -21,373,195.09 | |||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) | -401,117,508.26 | -401,117,508.26 | |||||||||||
| 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 |
| 5．Other | |||||||||||||
| (V). Special reserves | 10,630,410.14 | 7,169,363.61 | 17,799,773.75 | ||||||||||
| 1. Provided this year | 38,527,044.56 | 7,324,978.46 | 45,852,023.02 | ||||||||||
| 2．Used this term | -27,896,634.42 | -155,614.85 | -28,052,249.27 | ||||||||||
| （VI）Other | -195,525,500.00 | -477,266,691.04 | -672,792,191.04 | ||||||||||
| IV. Balance at the end of this term | 5,730,250,118.00 | 21,786,233,393.78 | 4,422,320.00 | -29,175.80 | 12,614,331.35 | 245,507,019.95 | 4,750,977,557.86 | 902,174,561.76 | 33,423,305,486.90 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last year | 4,939,928,983.00 | 16,338,960,810.89 | 4,422,320.00 | 188,044,070.48 | 1,823,695,278.31 | 1,093,061,728.31 | 24,379,268,550.99 | ||||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under common control | 194,098,440.35 | -155,097,190.92 | 91,021,359.68 | 130,022,609.11 | |||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 4,939,928,983.00 | 16,533,059,251.24 | 4,422,320.00 | 188,044,070.48 | 1,668,598,087.39 | 1,184,083,087.99 | 24,509,291,160.10 | ||||||
| III.Changed in the | 790,32 | 5,446,1 | -4,518.4 | 1,983,9 | 36,089, | 1,341,2 | 44,175, | 7,660,0 | |||||
| current year | 1,135.00 | 83,355.36 | 5 | 21.21 | 754.38 | 62,668.43 | 192.85 | 11,508.78 | |||||
| （1）Total comprehensive income | -4,518.45 | 1,730,174,564.57 | 190,724,457.31 | 1,920,894,503.43 | |||||||||
| （II）Investment or decreasing of capital by owners | 790,321,135.00 | 6,683,065,275.65 | 382,886,041.50 | 7,856,272,452.15 | |||||||||
| 1．Ordinary Shares invested by shareholders | 790,321,135.00 | 6,728,522,710.65 | 382,886,041.50 | 7,901,729,887.15 | |||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||
| 4．Other | -45,457,435.00 | -45,457,435.00 | |||||||||||
| （III）Profit allotment | 36,089,754.38 | -388,911,896.14 | -35,000,000.00 | -387,822,141.76 | |||||||||
| 1.Providing of surplus reserves | 36,089,754.38 | -36,089,754.38 | |||||||||||
| 2.Providing of common risk provisions | |||||||||||||
| 3．Allotment to the owners (or shareholders) | -352,822,141.76 | -35,000,000.00 | -387,822,141.76 | ||||||||||
| 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 | |||||||||||||
| 5．Other | |||||||||||||
| (V). Special reserves | 1,983,921.21 | 1,906,120.38 | 3,890,041.59 | ||||||||||
| 1. Provided this year | 38,971,707.64 | 1,906,120.38 | 40,877,828.02 | ||||||||||
| 2．Used this term | -36,987,786.43 | -36,987,786.43 | |||||||||||
| （VI）Other | -1,236,881,920.29 | -496,341,426.34 | -1,733,223,346.63 | ||||||||||
| IV. Balance at the end of this term | 5,730,250,118.00 | 21,979,242,606.60 | 4,422,320.00 | -4,518.45 | 1,983,921.21 | 224,133,824.86 | 3,009,860,755.82 | 1,228,258,280.84 | 32,169,302,668.88 |
8.Statement of change in owner’s Equity of the Parent CompanyAmount in this period
In RMB
| Items | Amount in this period | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 5,730,250,118.00 | 21,861,207,672.90 | 4,422,320.00 | 205,144,600.53 | 676,010,983.59 | 28,468,191,055.02 | |||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 5,730,250,118.00 | 21,861,207,672.90 | 4,422,320.00 | 205,144,600.53 | 676,010,983.59 | 28,468,191,055.02 | |||||
| III.Changed in the current year | -28,753,765.40 | 21,373,195.09 | -208,758,752.48 | -216,139,322.79 | |||||||
| （I）Total comprehensive income | 213,731,950.87 | 213,731,950.87 | |||||||||
| (II) Investment or decreasing of capital by owners | -28,753,765.40 | -28,753,765.40 | |||||||||
| 1．Ordinary Shares invested by shareholders | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | |||||||||||
| 4．Other | -28,753,7 | -28,753,7 | |||||||||
| 65.40 | 65.40 | ||||||||||
| （III）Profit allotment | 21,373,195.09 | -422,490,703.35 | -401,117,508.26 | ||||||||
| 1.Providing of surplus reserves | 21,373,195.09 | -21,373,195.09 | |||||||||
| 2．Allotment to the owners (or shareholders) | -401,117,508.26 | -401,117,508.26 | |||||||||
| 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 | 5,730,250,118.00 | 21,832,453,907.50 | 4,422,320.00 | 226,517,795.62 | 467,252,231.11 | 28,252,051,732.23 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 4,939,928,983.00 | 15,130,191,736.27 | 4,422,320.00 | 169,054,846.15 | 696,998,223.03 | 20,931,751,468.45 | |||||
| Add: Change of accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 4,939,928,983.00 | 15,130,191,736.27 | 4,422,320.00 | 169,054,846.15 | 696,998,223.03 | 20,931,751,468.45 | |||||
| III.Changed in the current year | 790,321,135.00 | 6,731,015,936.63 | 36,089,754.38 | -20,987,239.44 | 7,536,439,586.57 | ||||||
| （I）Total comprehensive income | 360,897,543.75 | 360,897,543.75 | |||||||||
| (II) Investment or decreasing of capital by owners | 790,321,135.00 | 6,731,015,936.63 | 7,521,337,071.63 | ||||||||
| 1．Ordinary Shares invested by shareholders | 790,321,135.00 | 6,728,522,710.65 | 7,518,843,845.65 | ||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | |||||||||||
| 4．Other | 2,493,225.98 | 2,493,225.98 | |||||||||
| （III）Profit | 36,089,75 | -381,884,783.1 | -345,795, | ||||||||
| allotment | 4.38 | 9 | 028.81 | ||||||||
| 1.Providing of surplus reserves | 36,089,754.38 | -36,089,754.38 | |||||||||
| 2．Allotment to the owners (or shareholders) | -345,795,028.81 | -345,795,028.81 | |||||||||
| 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 | 5,730,250,118.00 | 21,861,207,672.90 | 4,422,320.00 | 205,144,600.53 | 676,010,983.59 | 28,468,191,055.02 |
III. Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of TunghsuOptoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company” or “Tunghsu Optoelectronic”）(JiTi Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
limited company jointly established by Shijiazhuang Kinescope General Factory (transformed into ShijiazhuangBaoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua HebeiImport and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par valueof 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 stockequity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the totalnumber 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 DomesticallyListed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (Bshares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with theApproval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (ZhengJian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 millionshares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Companyincreased to RMB 383 million.According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen JianXu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC"), the Companyprivately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per shareon April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of theCompany was changed to RMB 903.00 million.The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Tunghsu 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 Glass 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 ofassociation 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 RMB1,806 million applied to add by the company should be transferred into theshare capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2,709million after changed.As per the provisions of “Restricted Stock Incentive Plan of Tunghsu Optoelectronic Technology Co., Ltd. (Draft)” andits summary proposal approved after the second temporary shareholders’ resolution in 2014, the company hasimplemented the stock option incentive to grant 41 people the restricted stocks of RMB3,080,000.00 with the price ofRMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3.08million and the capital reserve of RMB 8,870,400.00, and the share capital is RMB2,712,080,000.00 after changed.Under the provisions of “Proposal on Repurchase of Part of Domestic Listed Foreign Shares (Share B)” approved afterthe second temporary shareholders’ resolution in 2014, the company has repurchased 49,999,999.00 B shares releasedoutside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, thecompany shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, andthe share capital is RMB2,662,080,001.00 after changed.Referring to the resolutions determined on the 27
th
Meeting of the 7
th
Board of Directors of the company, the 31
st
Meeting of the 7
th
Board of Directors, the 1
st
General Meeting of Extraordinary Shareholders in 2015, the 38
th
Meeting of the 7
th
Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Tunghsu PhotoelectricTechnology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. Theplanned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number ofthe stock is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approvedon the 43
rd
Meeting of the 7
th
Board of Directors of the company convened on October 29, 2015, the companyplans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equityincentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financialleasing are considered as operating leasing
According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to TunghsuOptoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolvedin 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 1,104,928,457.00 privately. The planned number of privately issuedstocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, andthe modified equity capital is 4,939,928,983.00 yuan.
According to the company's eleventh meeting of the eighth Board of Directors held on March 20, 2017, theeighteenth 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 AssetPurchase and Raising Matching Funds by CSRC (Zhen Jian Xu Ke [2017] No. 1841 Doc), approved that thecompany shall issue 262,626,262 shares to Shanghai Huimao Enterprise Management Co., Ltd (hereinafterreferred to as "Shanghai Huimao"), 106,326,446 shares to Tunghsu Group Co., Ltd (hereinafter referred to as"Tunghsu Group"), 11,380,165 shares to Mianyang Science and Technology City Development Investment(Group) Co., Ltd (hereinafter referred to as "Mianyang Science and Technology Group") and 5,020,661 shares toSichuan Changhong Electric Appliance Co., Ltd (hereinafter referred to as "Sichuan Changhong") for purchasingthe underlying assets; and approved that the Company shall raise no more than RMB 3,750,000,000 of matchingfunds by the company’s non-public share issuance. The Company actually issued 385,353,534.00 shares forpurchasing the assets, The issue price per share is 9.90 yuan; and issued 404,967,601.00 shares for raising thematching funds, The issue price per share is 9.26 yuan;thus the capital stock after the change became RMB5,730,250,118.00.As of June 30, 2018, Registered capital : RMB 5,730,250,118.00, 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 ofDirectors on April 29, 2019.
The company's business scope: investing in the project investments with its own funds; research anddevelopment of machinery equipment and electronic products; manufacturing and production-processdevelopment of various non-standard equipments and components; processing and sales of electronic products forgrinding machine (excluding public safety equipment and devices); self operated and agent import and exportbusiness of various commodities and technologies; computer system integration, software development, technicalconsulting; installation of electrical and mechanical equipment (not including pre-licensing ones), engineering
advice. (All of the above scope, excluded those prohibited or restricted by laws, regulations and State Councildecisions; 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 bythe company, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of thecompany increased by 33 and decreased by 2 companies year on year at this reporting period, see details at Note8“Change of consolidation scope.IV.Basis for the preparation of financial statements1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the actualtransactions 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 ofAccounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the AccountingStandards for Business Enterprises”, “China Accounting Standards” or “CAS”)，Rules for Preparation Conventionof Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in2014) by China Securities Regulatory Commission.In accordance with Accounting Standards for Business Enterprises, the Company has adopted the accrual basis ofaccounting. Except for certain financial instruments, the Company adopts the historical cost as the principle ofmeasurement in the financial statements. The valuation will be made according to the lower one between theamount of on-sales non-current assets after fair value deducts the predicted costs and the original book valuewhich conforms to the condition of being on-sales. When assets are impaired, provisions for asset impairment aremade 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 errorsWhether the Company needs to comply with the disclosure requirements for specific industriesNoSpecific accounting policies and accounting estimates are indicated as follows:
Nil1. Statement on compliance with accounting standards for business EnterprisesThe financial statements prepared are in line with the requirements in enterprise accounting standards in line withof system, and have truly and completely reflected of the financial status in December31, 2018, operational results, cash flow, and other relevant information of 2018.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..fromJanuary 1 to December 31 as one accounting year.
3. The operating cycleThe normal business cycle refers to the period starting from assets purchased for processing to cash or cashequivalents converted. The Company uses a 12-month operating cycle as liquidity classification criteria for itsassets and liabilities.4. Currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatments for a business combinations under common control and under non common controlThe term "business combination" refers to a transaction or event combining two or more separate enterprises intoone reporting entity. Business combinations are classified into business combinations involving enterprises undercommon control and business combinations not involving enterprises under common control.(1) A business combination involving enterprises under common controlA business combination involving enterprises under common control is a business combination in which all of thecombining 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, theparty obtaining the control right over other enterprises involved in the combination on the combination date is thecombining party, while other enterprises involved in the combination is the combined party. The combination dateis 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 combiningentities at the date of the combination. The difference between the carrying amount of the net assets obtained andthe carrying amount of the consideration paid for the combination [the aggregate face value of shares issued asconsideration] is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorbthe 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 areincurred.（2）A business combination not involving enterprises under common controlA business combination not involving enterprises under common control is a business combination in which all ofthe combining enterprises are not ultimately controlled by the same party or parties before and after thecombination. For the business combination not involving enterprises under common control, the party obtainingthe control right over other enterprises involved in the combination on the combination date is the combiningparty, while other enterprises involved in the combination is the combined party. The combination date is the dateon which one combining enterprise obtains control of other combining enterprises.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilitiesincurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree, theintermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancyservices and other associated administrative expense attributable to the business combination are charged to profitor loss when they are incurred. The costs of issuing equity or debt securities as a part of the consideration for theacquisition are included in the carrying amounts of these equity or debt securities upon initial recognition. Thecontingent costs as a part of the consideration for the acquisition are included in the cost of combination on fairvalues at the acquisition date, and will be adjusted if any new situation incurred or further evidence provided in 12months subsequent to acquisition date, then the goodwill will be adjusted accordingly. The acquiree’s identifiableassets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet therecognition criteria are measured at fair value at the acquisition date. Where the cost of combination exceeds theacquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is treated as an asset andrecognised as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of theacquiree’s identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of theacquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. Ifafter that reassessment, the cost of combination is still less than the acquirer’s interest in the fair value of theacquiree’s identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss forthe current period.The deductible temporary difference from the acquiree not recognized as deferred tax assets on the acquisitiondate, will be recognized as deferred tax assets, if in 12 months subsequent to acquisition date, there is newinformation indicating that relative situation exists and the economic benefit associated with the deductibletemporary difference will flow to the Company, the goodwill will be reduced accordingly. If the goodwill is lessthan 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 makejudgement on whether those transactions are regard as “Package deal” based on “No. 5 Notice on Explanation onAccounting Standards for Business Enterprises by the Ministry of Finance" (CAIKUAI [2012] No.19) and Article51 of "Accounting Standards for Business Enterprises No. 33: Consolidated Financial Statement". If it is regardedas “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 heldbefore the acquisition date and the cost of new investment on acquisition date. When the stock equity held beforethe acquisition date involving other consolidated incomes, at the disposal date, other consolidated incomes relatedto this investment shall be subjected to accounting treatment (i.e. except the corresponding share accounted byequity 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 theacquiree for the direct disposal of relevant assets or liabilities.
In consolidated financial statement, the share equity held before the acquisition date shall be measured againaccording to the fair value of this share equity on the acquisition date, the balance of the fair value and its bookvalue shall be counted in the current investment income; when the share equity held before the acquisition dateinvolving other consolidated incomes, other consolidated incomes related shall be subjected to accountingtreatment (i.e. except the corresponding share accounted by equity method in the change due to remeasurementand setting of net indebtedness or net assets of benefit plan, the remaining shall be transferred to the currentinvestment income of the acquisition date) on the same basis as that adopted by the acquiree for the direct disposalof 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 managementdecisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stopcovering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the businessperformance and the cash flow before the disposal date have been properly covered in the consolidated profitstatement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, theopening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increasedthrough the business combination under non-common control, the business performance and the cash flow afterthe acquisition date have been properly included in the consolidated profit statement and the consolidated cashflow statement, and the opening balance and the comparison balance of the consolidated financial statement shallnot be adjusted. For the subsidiaries increased through the business combination under common control, thebusiness performance and the cash flow from the beginning of current combination period to the combination datehave been properly included in the consolidated profit statement and the consolidated cash flow statement, and thecomparison balance of the consolidated financial statement shall be adjusted simultaneously.
When preparing the consolidated financial statement, the necessary adjustment shall be made according to theaccounting policy of the company and the financial statement of the subsidiaries during the fiscal period if theaccounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For thesubsidiaries acquired through the business combination under non-common control, the financial statement shallbe 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 ofthe consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiariesshall be respectively as the minority equity and the minority interest income and individually listed under theshareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion fromthe net profit or loss in current period shall be as “minority interest income” and listed under the net profit in theconsolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiariesundertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minorityshareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons,the remaining equity should be measured again according to the fair value on the control lost date. The differenceof the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assetsportion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall berecorded into the current investment income after the control lost. Other comprehensive returns relevant to theoriginal subsidiary shares investment shall be disposed through the accounting treatment on the same basis of thedirect disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest aretransferred into the current investment incomes, with the exception of the changes caused by the net liabilities orthe 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 forBusiness 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 thecontrol right lost, the company should respectively dispose all the transactions if belong to the package deal. Aslong as the terms, conditions and economic influence on all the transactions of the disposal of the equityinvestment in the subsidiary meet one status below, it usually shows that the multiple transactions matters shouldbe conducted the accounting treatment as the package deal: ① these transactions are made simultaneously orunder the consideration of the influence each other. ② these transactions shall be as the whole to achieve onecomplete business results. ③ one transaction occurs depending on the appearance of other one transaction atleast. ④ one transaction is economic under the consideration with other transactions even if it is not economicwhen 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). Forthe package deal from the transactions after the disposal of equity investment in the subsidiary till the control rightlost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for theaccounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relativeto the disposal price and the disposal investment before the control right lost, shall be recognized as othercomprehensive incomes in the consolidated financial treatment and transferred into the current profits and losseswhen the control lost.7. Accounting treatment for classification and co-operation of joint arrangementJoint arrangement is an arrangement whereby two or more parties have joint control. The Company classified thejoint arrangement into co-operation arrangement and joint venture according to the right and obligation involvingin the joint arrangement. Under co-operation, the Company has joint control and rights to the relevant assets andliability of the arrangement. Under joint venture, the Company only has joint control and rights to the net assets ofthe arrangement.
The company adopts equity method to calculate investment to joint enterprises by referring to accounting policiesstated 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 liabilitiesjointly 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 incurredbased on share proportions.When the Company invests, sells or purchase assets (the asset does not constitute a business, the same below), toor from the co-operation, the Company only recognizes the profit or loss belong to other joint parties beforeselling those assets to third party. If those assets are impaired in compliance with Accounting Standards forBusiness Enterprises No.8-Assets impairment, the Company should recognize loss for all the invested or soldassets to co-operation. For the assets purchased from co-operation, the Company should recognize loss based onshare proportion.8. Cash and cash equivalentCash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, andshort-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to aninsignificant 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 theforeign currency amount by the spot exchange rate on the transaction dates, while the foreign currency exchangebusiness or transactions relating to foreign currency exchange are recorded in the functional currency by applyingto 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. Theexchange gains or losses arising from occurrence of transactions and exchange of currencies are recognized inprofit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowingdenominated in foreign currency that qualifies for capitalization are capitalized as part of the cost of the qualifiedasset during the capitalization period; (2) exchange differences arising from changes in the carrying amounts ofavailable-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 functionalcurrency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remainunchanged. Foreign currency non-monetary items measured at fair value are re-converted at the spot exchangerate on the date the fair value is determined. Difference between the re-converted functional currency amount andthe original functional currency amount is treated as changes in fair value (including changes of exchange rate)and is recognized in profit and loss or as other comprehensive income.
(3) Conversion of financial statements denominated in foreign currencies
As an accounting treatment in respect to a foreign operation, if there are monetary items relating to the investmentto 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 foreignoperation 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 sheetdate. Equity items, excluding retained earnings, are converted to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses of foreign operation are converted to Renminbi at the rates thatapproximate the spot exchange rates at the transaction dates. The beginning balance of retained earnings is theprior year ending balance of retained earning converted, while the ending balance of retained earnings is sum totalof converted items of income statement. The resulting conversion differences are recognized in othercomprehensive income. The conversion differences accumulated in shareholders’ equity with respect to a foreignoperation 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 thespot exchange rate at the transaction date. The effect of foreign exchange fluctuation is treated as recociling itemthat 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 transferredto profit or loss in the period when the foreign operation is fully or partially disposed or lost control over theforeign operation due to other causes.Disposing investment in a foreign operation without losing control, the conversion differences accumulated inshareholder’s equity associated with the disposing part is transferred to minority stockholder’s interest. Disposinginvestment in a foreign operation which is joint venture enterprise, the conversion differences accumulated inshareholder’s equity associated with the disposing part is transferred to profit or loss in the disposing period withthe disposing proportion.10. Financial instrumentsFinancial assets and financial liabilities are recognized when the Company becomes a party to the contractualprovisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Forfinancial assets and financial liabilities at fair value through profit or loss, transaction costs are recognized inprofit and loss for the current period. For other financial assets and financial liabilities, transaction costs areincluded 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 transactionbetween market participants at the measurement date. If an active market exists for specific financial assets orliabilities, quoted prices in active markets for identical assets or liabilities are used as fair value. Quoted prices inan active market refers to the prices which are readily available regularly in exchange markets, brokers, industryassociations and other pricing institutions and represents the prices at which the assets or liabilities are traded inan arm length transaction in the marketplace. If an active market does not exist, the Company uses valuationmodel to determine the fair value. Valuation model takes into account quoted price for identical or similar assetsor liabilities between familiar and willing parties, quoted price for similar assets or liabilities in an active market,discounted cash flow method and options pricing model.(2) Classification, Recognition and Measurement of Financial Assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Oninitial recognition, the Company's financial assets are classified into one of the four categories, including financialassets at fair value through profit or loss, held-to-maturity investments, loans and receivables, andavailable-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 designatedupon initial recognition as at fair value through profit or loss.
A financial asset held for trading is the financial asset that meets one of the following conditions: A the financialasset is acquired for the purpose of selling it in a short term; B. the financial asset is a part of a group ofidentifiable financial instruments that are collectively managed, and there is objective evidence indicating that theenterprise 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 aderivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quotedprice 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 initialrecognition, as financial assets or financial liabilities at fair value through profit or loss and of which the variationis included in the current profits and losses: A. The designation is able to eliminate or obviously reduce thediscrepancies in the recognition or measurement of relevant gains or losses arising from the different basis ofmeasurement of the financial assets or financial liabilities; B. The official written documents on risk managementor 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 willbe 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 orlosses related to financial assets at fair value through profit or loss and dividend or interest income related to thosefinancial assets are recognized in profit or loss for the current period.②Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturity 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 thecurrent period.The effective interest method is a method of calculating the amortized cost of a financial asset or a financialliability (or a group of financial assets or financial liabilities) and of allocating the interest income or interestexpense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactlydiscounts estimated future cash flows through the expected life of the financial asset or financial liability or, whereappropriate, 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 contractualterms of the financial asset or financial liability (without considering future credit losses), and also considers allfees paid or received between the parties to the contract giving rise to the financial asset and financial liability thatare an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.③ Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin 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 orloss arising from derecognition, impairment or amortization is recognized in profit or loss for the current period.④ Available-for-sale financial assetsAvailable-for-sale financial assets include non-derivative financial assets that are designated on initial recognitionas available for sale, and financial assets that are not classified as financial assets at fair value through profit orloss, 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 costat period end, which is the initially recognized amount of financial asset or financial liability deducting the alreadypaid principal, plus or minus the accumulated amount of amortization incurred from amortizing the balancebetween the initially recognized amount and the amount of the maturity date by adopting the actual interest ratemethod and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments inequity instruments is the initially recognized amount at acquisition.Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising fromchanges in the fair value are recognized as other comprehensive income and included in the capital reserve, exceptthat impairment losses and exchange differences related to amortized cost of financial assets are recognized inprofit or loss, until the financial assets are derecognized, at which time the gains or losses are released andrecognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an activemarket and whose fair value cannot be reliably measured and derivative financial assets that are linked to andmust 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-salefinancial assets are held, are recognized in investment income.Impairment of Available-for-sale financial assets
If all the related information considered indicates that the decline in fair value of available-for-sale financial assetsis significant or non-temporary decline, impairment incurred for available-for-sale financial assets. Significantdecline refers to accumulated decline in fair value exceed 20%; non-temporary decline refers to continuousdecline in fair value more than 12 months.When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair valuepreviously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. Theamount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between theacquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairmentloss 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 objectiveevidence of a recovery in value of the financial assets which can be related objectively to an event occurring afterthe impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal ofimpairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while theamount 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 inan active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked toand must be settled by delivery of such an unquoted equity instrument, the impairment loss on such financial assetis not reversed once it is recognized.(3) Transfer and measurement of financial assetsThe Company derecognizes a financial asset only when: ① the contractual rights to the cash flows from thefinancial asset expire; or ② it transfers the financial asset and substantially all the risks and rewards ofownership of the asset to another entity; or ③ it transfers the financial asset, neither transfers nor retainssubstantially 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 financialasset, and retains its control of the financial asset, it recognizes the financial asset to the extent of its continuinginvolvement in the transferred financial asset and recognized an associated liability. The extent of the enterprise'scontinuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of thetransferred 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 thetransfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized inprofit or loss.
If the transfer of partial financial asset satisfies the derecognition criteria, the entire book value of the transferredfinancial asset shall, between the portion whose recognition has been stopped and the portion whose recognitionhas not been stopped, be apportioned according to their respective relative fair value and the difference betweenthe amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The bookvalue of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whoserecognition has been stopped, and the portion of the accumulative amount of the changes in the fair valueoriginally recorded in the owner's equities which is corresponding to the portion whose recognition has beenstopped.In terms of financial assets sold with recourse or financial assets transferred by endorsement, the Company shalldetermine 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 thefinancial asset to the transferee, it shall stop recognizing the financial asset. If it retained substantially all of therisks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. Ifthe 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 assetsin 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 orloss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at theirfair values. For the financial liabilities at fair value through profit or loss, the transaction expenses thereof shall bedirectly recorded into the profit or loss of the current period; for other financial liabilities, the transaction expensesthereof shall be included into the initially recognized amount.① Financial liabilities at fair value through profit or lossThe transactional financial liabilities and designated financial liabilities at fair value through profit or loss areclassified under the same criteria as the transactional financial assets and designated financial assets at fair valuethrough profit or loss.On subsequent measurement of financial liabilities at fair value through profit or loss, gain or loss arising fromchanges in fair value and dividends and interests related to the financial liabilities are recognized in the profit orloss of the current period.② Other Financial Liability
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument(without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequentlymeasured at cost. Other financial liabilities are subsequently measured at amortized cost using the effectiveinterest method, with gain or loss arising from derecognition or amortization recognized in profit or loss.(5) Derecognition of financial liabilitiesThe Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or partof it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replacethe original financial liability with a new financial liability with substantially different terms is accounted for as anextinguishment 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 thecarrying 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 liabilitiesWhen the Company has a legal right that is currently enforceable to set off the recognized financial assets andfinancial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle thefinancial liability simultaneously, financial assets and financial liabilities are offset with the net amounts presentedon the balance sheet. Otherwise, financial assets and financial liabilities are separately presented on the balancesheet without offsetting.
(7) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deductingall of its liabilities. Equity instruments issued (including refinanced), repurchased, sold or cancelled by theCompany 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 receivableThe 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 |
(2)The accounts receivable of bad debt provisions made by credit risk Group
determined and provision for bad debts shall be made accordingto the difference between the present value of its future cash flowand its book value. For the accounts receivable whoseimpairment is not proved by separate test, such accountsreceivable, together with those with insignificant single-itemamount, are divided into some groups based on similarcharacteristics of credit risks. For these groups of accountsreceivable, provision for bad debts shall be made according tothe regulation mentioned in "(2) provision for bad debts shall bemade for accounts receivable on group basis".Name
| 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 applicableIn 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 |
| 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. InventoriesWhether the company needs to comply with the disclosure requirements of the particular industryNo(1)Classification of InventoriesThis enterprise's inventories is classified as raw materials, works in process, finished products, circulationmaterials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,development cost,etc.(2) Obtaining and Measurement of InventoriesThe perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall bemeasured 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 goodsshall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materialsshall 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 shallmake the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss ondecline in value of inventories on the ground of each item of inventories. If the factors causing any write-down ofthe inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provisionfor 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 costsof 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 commercialnon-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meetingtwo of the following conditions, the book value will be divided into on-sales category: (1) When a certainnon-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance withthe 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 acquiringapproval from relevant authorities or supervision departments according to relevant provision requirement , hasacquired its approval ).The Company will be specifically for dividing the non-current assets or disposal group which are acquired fromreselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated conditionthat the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likelyto meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or
remeasured and divided into on-sales category on balance sheet date, if its book value is higher than the netamount after fair value deducts selling expense, the book value will be written down to the net amount after fairvalue deducts selling expense, and the written-down amount will be confirmed as assets impairment losses andcounted into the current profits and losses, and the impairment provision with on-sales assets will be withdrawnin the meanwhile. For the on-sales disposal group’s confirmed amount of loss of asset impairment, the book valueof goodwill will be deducted first, and its book value will then be deducted proportionally according to the bookvalue’s percentages of all non-current assets in the disposal group which can be adopted by the measurementstipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, DisposalGroups and Operation Termination
If any increment occurs in the net amount after the on-sales non-current assets on the subsequent balancesheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred backwithin the amount of asset impairment losses confirmed after being divided into on-sales category, and the amounttransferred back will be counted into the current profits and losses. There will be no restitution for assetimpairment losses confirmed before being divided into on-sales category. The amount deducted previously ofon-sales disposal group shall be recovered, and when after being divided into on-sales category, it will betransferred back within the amount of impairment confirmed by non-current assets by the means of the measurestipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, DisposalGroups and Operation Termination, and the amount transferred back will be counted into the current profits andlosses. There will be no restitution for the book value of goodwill which has been deducted and for assetimpairment losses confirmed before being divided into on-sales category which can be adopted by the measurestipulation of this principle.
No depreciation and amortization will be made in the non-current assets which are on sales or in the disposalgroup. Confirmation will continue to be made in the debt interest in on-sales disposal group as well as otherexpenses.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-salescategory, the Company will not continue to divide it into on-sales category or remove the non-current assets fromthe 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 thesituation where book value is supposed not to be divided into on-sales category and adjustment is made indepreciation, 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 andlosses which are yet to be confirmed into the current profits and losses.14.Long-term Equity Investment
Long-term equity investments refer to all investments that are the Company with control of, joint control of, orsignificant influence over, an investee. The Company accounted investments that are the Company withoutcontrol of, joint control of, or significant influence over, an investee as financial assets available-for-sale orfinancial 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 whendecisions about the relevant activities require the unanimous consent of the parties sharing control. Significantinfluence refers to the power to participate in the financial and operating policy decisions of the investee but is notcontrol 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 makespayment in cash, transfers non-cash assets or bear its debts, it shall, on the date of combination, regard the share ofthe book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equityinvestment. 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 againstthe capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. If theconsideration 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 thelong-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, whilethe difference between the initial cost of the long-term equity investment and total face value of the shares issuedshall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall beadjusted. Business combination under common control achieved in stages by several transactions shall determinewhether the transactions belong to one package. If the transactions belong to one package, the Companyaccounted these transactions as one transaction with control of the investee. If the transactions do not belong toone package, on the date of combination, the Company shall regard the share of the book value of the owner'sequity of the merged enterprise as the initial cost of the long-term equity investment. The difference between theinitial cost of the long-term equity investment and the sum of book value of long-term equity investments prior tothe combination and the book value of consideration paid at the date of combination in order to achieve control ofthe investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retainedearnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arisingfrom equity investment under equity method before the combination date or recognized with available-for-salefinancial assets.
For business combination under different control, the Company accounts initial cost of long-term equityinvestment as combination costs on the acquisition date. Combination costs refer to the fair values, on theacquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theacquirer. Business combination under different control achieved in stages by several transactions, shall determinewhether the transactions belong to one package. If the transactions belong to one package, the Company accountsthese transactions as one transaction with control of, joint control of, significant influence over, the investee. If thetransactions do not belong to one package, the initial cost of long-term equity shall be accounted under costmethod and recognized amount shall be the sum of book value of long-term equity investment before acquisitionand cost of additional investment. For equity investments previously accounted under equity method, othercomprehensive income related to these investments does not change. For equity investments previously accountedas financial assets available for sale, difference between fair value and book value and accumulated changes infair value originally recorded in other comprehensive income shall be transferred to profit or loss of currentperiod.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 equityinvestment obtained by other means shall be initially recognized at cost.The cost shall be ascertained inaccordance with the provisions as follows: (a) The initial cost of a long-term equity investment obtained bymaking payment in cash shall be the purchase cost which is actually paid; (b) The initial cost of a long-term equityinvestment 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 investmentcontract or agreement; (d) The initial cost of a long-term investment obtained by the exchange of non-monetaryassets shall be the fair value or book value of transferred assets. (e) The initial cost of a long-term investment shallbe the fair value of the long-term investment; etc. The initial cost also consists of the expenses directly relevant tothe obtainment of the long term equity investment, taxes and other necessary expenses. Long-term equityinvestment which, due to additional investment, can exercise significant influence over, joint control of, but notcontrol of, the investees, shall recognize its cost as the sum of fair value of long-term equity investment beforeadditional investment and cost of additional investment according to Accounting Standard for BusinessEnterprises 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), significantinfluence over the investees shall be accounted under equity method. Besides, long-term equity investments whichare 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 ordisinvestments shall make an adjustment to the cost of long-term equity investment. The investment incomerecognized by the Company shall be limited to the dividends or profits declared to distribute by the invested entity,
except dividends or profits declared in the consideration paid to acquire the investees.(2) A long-term equity investment accounted under the equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds theCompany’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, no adjustmentis made to the initial investment cost. Where the initial investment cost is less than the Company’s share of the fairvalue of the investee’s identifiable net assets at the time of acquisition, the difference is recognized in profit orloss 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 comprehensiveincome made by the investee as investment income and other comprehensive income respectively, and adjust thecarrying amount of the long-term equity investment accordingly; The carrying amount of the investment isreduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed tothe 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 ofthe long-term equity investment is adjusted accordingly. The Company recognizes its share of the investee's netprofit or loss after making appropriate adjustments based on the fair value of the investee’s individual separatelyidentifiable assets, etc. at the acquisition date. Where the accounting policies and accounting period adopted bythe investee are not consistent with those of the Company, the Company shall adjust the financial statements ofthe investee to conform to its own accounting policies and accounting period, and recognize investment incomeand other comprehensive income based on the adjusted financial statements. For the Company's transactions withits associates and joint ventures where assets contributed or sold does not constitute a business, unrealizedintra-group profits or losses are recognized as investment income or loss to the extent that those attributable to theCompany's proportionate share of interest are eliminated. However, unrealized losses resulting from theCompany's transactions with its associates and joint ventures which represent impairment losses on the transferredassets are not eliminated. When the assets invested by the Company to associates or joint ventures constitute anoperation, and the investors thereafter own long-term equity investment without control of the Company, fairvalue of the operation invested shall be accounted as cost of additional long-term equity investments, anddifference between initial recognized cost of additional long-term equity investments and its book value shall beaccounted in the profit or loss of current period. When the assets sold by the Company to associates or jointventures constitute an operation, the difference between consideration paid and book value of the operation shallbe recorded in profit or loss of current period. When the assets bought by the Company from associates or jointventures constitute an operation, gain or loss related shall be recognized according to Accounting Standard forBusiness Enterprises No.20-Business Combination.
The Company discontinues recognizing its share of net losses of the investee after the carrying amount of thelong-term equity investment together with any long-term interests that in substance form part of its net investmentin the investee is reduced to zero. If the Company has incurred obligations to assume additional losses of theinvestee, a provision is recognized according to the expected obligation, and recorded as investment loss for theperiod. Where net profits are subsequently made by the investee, the Company resumes recognizing its share ofthose 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 equityinvestments due to acquisition of non-controlling shares and attributable share of invested entity’s identifiable netassets accumulated since acquisition date (or consolidation date) at shareholding ratio after acquisition, shalladjust capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.(4) Disposal of long-term equity investments
In consolidated financial statements, when parent company partially disposes long-term equity investmentsin subsidiaries without losing control, the difference between proceeds received and attributable share of investedentity’s identifiable net assets related to such investments sold, shall be recorded in shareholder’s equity; whenparent company partially disposes long-term equity investments in subsidiaries with control lost, adjustments shallbe made in accordance to Note V 6 (2).Under other circumstances, for disposal of long-term equity investment, the Company shall derecognize suchinvestment and recognize in profit or loss the difference between the proceeds received, and the carrying amountof the investment in the associates and joint ventures.
In terms of long-term equity investments accounted under equity method, the accounting method afterdisposal shall not change. The Company shall account for proportionate amount previously recognized in othercomprehensive income in relation to that investment on the same basis as would have been required if the investeehad directly disposed of the related assets or liabilities. The Company shall also reclassify to current period profitor loss the proportion of changes in shareholders’ equity that had previously been recognized excluding changesarising 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 disposalshall not change. The Company shall account for proportionate amount previously recognized in othercomprehensive income, arising from according equity method or recognition and measurement standard offinancial instruments before control of investees, in relation to that investment on the same basis as would havebeen required if the investee had directly disposed of the related assets or liabilities. The amount in othercomprehensive 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 ofindividual financial statements, if the Company with retained shares after disposal can still joint control, orinfluence over, the investee, the Company shall account for the investment under equity method and retainedshares shall be adjusted as would have been required if the retained shares had been recorded on initial recognitionunder 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 offinancial instruments and recognize in profit or loss difference between the fair value of any retained shares andcarrying amount of the investment at the date of control lost. The Company shall account for amount previouslyrecognized in other comprehensive income, arising from according equity method or recognition andmeasurement standard of financial instruments before control of investee in relation to that investment on thesame basis as would have been required if the investee had directly disposed of the related assets or liabilities. Ifequity method is used before control, the Company shall also reclassify to current period profit or loss changes inshareholders’ equity that had previously been recognized excluding changes arising from net gain or loss, othercomprehensive income, profit or loss. If retained shares are accounted under equity method, other comprehensiveincome and changes in shareholders’ equity shall be transferred to current period profit or loss proportionally; ifretained shares are accounted under cost method, other comprehensive income and changes in shareholders’equity shall be transferred to current period profit or loss at once.
When the Company ceases to joint control or influence over investee due to partial disposal of its shares,retained shares shall be accounted for under recognition and measurement standard of financial instruments anddifference between fair value and carrying amount shall be recorded in current period profit or loss. The Companyshall account for amount previously recognized in other comprehensive income arising from equity method inrelation to that investment on the same basis as would have been required if the investee had directly disposed ofthe related assets or liabilities. The Company shall also reclassify to current period profit or loss the proportion ofchanges in shareholders’ equity that had previously been recognized excluding changes arising from net gain orloss, other comprehensive income, profit or loss.When the Company ceases to control an investee due to partially dispose its shares by stages, if transactionsbelong to one package, each transaction shall be accounted for as one event which lead to control cease. Prior tocontrol lost, the difference between proceeds received and carrying amount of investment sold shall be recorded inother comprehensive income first and transferred to current period profit or loss when control lost.15. Investment real estateThe measurement mode of investment propertyThe measurement by the cost methodDepreciation or amortization method
Investment property refers to the properties held for the purpose of generating rent and/or capital appreciation. The company’sinvestment 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 theproperty costs the subsequent expenses that could bring economic benefit inflows and be measured reliably whileother subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized inaccordance with the relevant regulations for fixed assets or intangible assets.16. Fixed assets(1) Recognition criteria for fixed assetsFixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental toothers, 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 tothe Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation methods
| Type | Detail | Estimated useful Life | Estimated residual value rate | Depreciation rate(%) |
| House and Building | Straight-line method | Over the period of title (the period specified on the real estate title certificate or land use right certificate) or 30 years in case of no period | 5 | 3.17 |
| of title | ||||
| Kiln | Straight-line method | 5 | 5 | 19 |
| Platinum passage | Straight-line method | 3 | 95.50 | 1.5 |
| Glass flat-panel and other equipment | Straight-line method | 15 | 5 | 6.33 |
| other equipment | Straight-line method | 10 | 5 | 9.5 |
| Transportation equipment | Straight-line method | 5 | 5 | 19 |
| Temporary equipment | Straight-line method | According to the length of the project | 0 | |
| Testing, quality inspection, office equipment, tools and other tool | Straight-line method | 5 | 5 | 19 |
The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost hasno 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 itsaccumulated 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 valueand depreciation method. Should there be any differences between the estimated amount of service life and theinitially estimated one, adjustment will be made for the service life; Should there be any differences between theestimated amount of net residual value and the initially estimated one, adjustment will be made for the estimatedone.
(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 whenthey meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of theleased assets shall be transferred to the Company. ② The Company has the option to purchase the asset at a pricethat is expected to be sufficiently lower than the fair value at the date of the option becomes exercisable for it tobe reasonably certain, at the inception of the lease, that the option will be exercised. (3) the lease term accountsfor a substantial proportion of the useful life of the leased asset, notwithstanding that the ownership will not betransferred; ④ At the inception of lease, the present value of minimum lease payments amount to substantiallyall of the fair value of leased asset. ⑤ Leased assets are of a specialized nature that only the Company can usethem without major modifications. Forthe fixed assets that are under finance leases, if the ownership of theleasedassets can be reasonably determined at the end of the lease term, thedepreciation shall be made within theservice life of such leased assets;otherwise the depreciation shall be made for a shorter period between theleaseterm and the remaining service life of such leased assets. (4) Major repair expenses: The major repairexpenses incurred by the Company in carrying out regular inspections of fixed assets, if there is conclusive
evidence showing that they meet the conditions for recognition of fixed assets, are included in the cost of fixedassets, while those that do not meet the conditions for recognition of fixed assets are included in the profits andlosses of the current period. Fixed assets are under depreciation during regular overhaul intervals.17. Constructionin progress17 Whether the Company needs to comply with the disclosure requirements for specific industriesNoThe costs of construction in progress include all necessary project expenditures, the borrowing expenses thatshould 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 expensesBorrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses,exchange differences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to theacquisition, construction or production of qualifying asset are capitalized when expenditures for such asset andborrowing costs are incurred and activities relating to the acquisition, construction or production of the asset thatare necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costsceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use orsale. 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 theactual interest expense incurred on that borrowing for the period less any bank interest earned from depositing theborrowed funds before being used on the asset or any investment income on the temporary investment of thosefunds. Where funds are borrowed under general-purpose borrowings, the Company determines the amount ofinterest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of theexcess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. Thecapitalization 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 aspecific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifyingasset. The exchange differences related to the principal and interest on foreign currency borrowings other than aspecific-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 tobe acquired, constructed or produced through a long period of time, in order to become ready for its intended useor sale.If general borrowings are used to purchase, construct or produce the capitalization eligible assets, theborrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of thespecial borrowings times the capitalization rate of the used general borrowings, which is determined by theweighted average interest rate of the general borrowings.
19.Biological Assets20.Oil & Gas assets21.Intangible assets1. Valuation Method, Service Life and Impairment Test of Intangible AssetsThe Company makes initial measurements on intangible assets in terms of the costs and determines the useful lifewhen obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available foruse, the Company adopts the amortization method that reflects realization of the expected economic benefits, orthe straight-line amortization method if unable reliably to determine how to realize the expected economicbenefits; 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 alimited 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 Companyrecords the book value of such assets all in current profit and loss.2. Accounting Policy of Internal Research and Development ExpenditureThe expenditures for internal research and development projects of an enterprise shall be classified into researchexpenditures 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 isfeasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the productgenerated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is usedinternally, it can be proven that it is useful; with necessary technical and financial resources and other resources tocomplete the development of the intangible assets and the intangible assets can be used or sold; the developmentexpense 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.
22. Impairment of the long-term assetsFixed assets, construction in progress, intangible assets with finite useful lives, investment properties measuredusing the cost model and long-term equity investments in subsidiaries, joint ventures and associates are tested forimpairment if there is any indication that an asset may be impaired at the balance date. If there is an indication thatthe 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 testedeach 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 carryingamount, a provision for impairment and an impairment loss are recognized for the amount by which the asset’scarrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value lesscosts to sell and the present value of the future cash flows expected to be derived from the asset. Fair value shallbe determined as the price as stipulated in the sales agreement in the orderly transaction. Where there is no salesagreement but there is an active market of assets, fair value shall be determined as the quoted price in activemarket for identical assets or liabilities. Where there is no sales agreement and no active market of assets, fairvalue shall be estimated according to the best information available. The disposal expenses shall include therelevant legal expenses, relevant taxes, truckage as well as the direct expenses for bringing the assets into amarketable state. The present value of the expected future cash flow of an asset shall be determined by thediscounted cash with an appropriate discount rate, on the basis of the expected future cash flow generated duringthe continuous use or final disposal of an asset. Provision for asset impairment is determined and recognized onthe individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallestgroup 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 ofgoodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from thesynergies of the business combination. If the result of the test indicates that the recoverable amount of an assetgroup or group of asset groups, including the goodwill allocated, is lower than its carrying amount, thecorresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount ofgoodwill that is allocated to the asset group or group of asset groups, and then deducted from the carryingamounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts ofother assets.Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in thesubsequent periods.23.Long-term amortizable expensesLong-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficialperiod of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
24 Employees’ Remuneration(1) Accounting methods for short-term compensationEmployee remuneration refers to all kinds of rewards or compensations given in return for employees’ services oremployment termination. It includes short-term compensation, post-employment benefits, demission benefits andother 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 offentirely in the twelve months following the reporting year the employees have provided their services, whichexcludes those given for employment termination. Short-term compensation includes payroll, bonus, allowancesand subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birthinsurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profitshare plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-termcompensation incurred during the accounting period that the employees provide their services and records incurrent profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefitsPost-employment benefits are mainly defined contribution plans, which include basic pension, unemploymentinsurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and losswhen incurred.
(3) Accounting methods for demission benefitsDemission benefits are the compensations paid to terminate employment before expiration or encourageemployees to accept lay-off.
(4) Accounting methods for other long-term employee benefitsOther 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 thedisabled, long-term profit sharing plans etc.25. Estimated LiabilitiesThe 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 recognizedestimated liabilities, the compensation can be recognized separately as assets only when the Company is sure toreceive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
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
nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measuredFor the services that start and end during the same accounting year, the revenue shall be recognized uponcompletion; if the services end in a different accounting year and the service transaction results can be measuredreliably, 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 incurredand 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 thecosts incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be treated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that have occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not expected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is recognized.Contract or agreement entered into with other companies, including the sale of goods when providing services, thesale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the sale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales ofgoods and rendering of services can not be distinguished, or can be distinguished but can not be measured separately, 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 isable 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 AlienationThe right of using transferred asset includes lease earning, intermediate business income, interest income andusage fee income.
When the right of use the transferred asset can, at the same time, conform with the condition that relevantinterest income is likely to inflow and the income amount can be reliably calculated, the income of the right of usethe transferred asset can be confirmed. The interest income will be counted and confirmed according to the timeand actual interest rate of the enterprise’s monetary capital used by others; The charge for use will be counted andconfirmed 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 andcontract costs will be confirmed by the contract’s completion percentage on the balance sheet date. The contract’scompletion percentage will be confirmed by the proportion that the accumulated contract costs actually incurredoccupies the predicted total contract cost
That the result of construction contract can be reliably estimated refers to that the following can be conformedwith at the same time: 1)The total income of contract can be reliably calculated; 2)The economic interest related
to the contract has major possibility to flow into the enterprise; 3)The contract costs actually incurred can beclearly distinguished and reliably calculated; 4)The completion progress of contract and the costs which still needsto 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 contractincome will be confirmed according to the actual contract costs which can be recoverable, and the contract costswill be confirmed the contract fee at its current period; The contract costs which can not be recoverable will beconfirmed 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 feerelated 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 asthe current fee.
The accumulated cost of the construction contract which has incurred, the accumulated gross profit (loss) has beenconfirmed, and the payment amount which has been settled will be presented as the net amount after offset in thebalance 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 tobe settled.The part, where the sum that the payment amount settled of the construction contract is more than theaccumulated cost incurred and the accumulated gross profit (loss) confirmed, will be presented as the one whichhas been settled but yet to be completed.29.Governmental subsidy(1)Basis and accounting methods for assets related government subsidiesGovernment subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from thegovernment, not including the capital into which the government invests as a investor who has relevant ownershipinterest. 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 theamount receivable. Those which related to non-monetary assets will be measured according to fair value; For anyfair 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 lossby stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If thepertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocatedpertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and therecognized government grant needs to be refunded, then it shall write down the carrying amount of the relevantdeferred income and the excess part shall be included in the current profit and loss.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to IncomeThe government grants pertinent to income that are used to compensate the relevant costs or losses of thesubsequent period of the enterprise are recognized as deferred income and are credited to the current profit or lossfor the period when the relevant costs, expenses or losses are recognized; those government grants used forcompensating the related expenses or losses incurred to the enterprise shall be directly included in the current profitsand losses.For the government subsidy which includes both the assets related part and the income related part, the differentparts are treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy relatedto the income.
Government subsidies related to the daily activities of the company shall be included in other earnings inaccordance with the substance of the economic business. Government subsidies not related to the daily activitiesof 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 thetemporary differences issued as the balance between the book value and the tax basis of the tax basis items thatunrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall bedetermined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balancesheet debt law.Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of anasset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profitand taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not berecognized. 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 suchdifferences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall notbe recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferredincome tax liabilities caused by taxable temporary differences.Deductible temporary differences related to the initial recognition of an asset or liability in a transaction thatneither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductibleloss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as fordeductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if suchdifferences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct thedeductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not berecognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred incometax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income thatcan 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 duringsubsequent years shall be recognized within the limit of likely obtained future taxable income that can be used todeduct the deductible loss and tax reduction.As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall bemeasured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-offrelevant liabilities at the balance sheet date.The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in thefuture to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it islikely to obtain sufficient taxable income.31.Operational leasing（1）Accounting of operational leasingThe Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as afinance 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 lossover the lease term on a straight-line basis.(2) Accounting Method for Financing LeasesAt the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and thepresent value of the minimum lease payments shall be regarded as the recorded value of the leased assets and anamount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leasedassets of payables. The balance between the recorded amount of the leased asset and the recorded amount of thepayable 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 bedistinguished 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 anindependent 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 thestock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail tosubmit a written application to the Board in the prescribed period shall be deemed as voluntarily give up theunlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after therepurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within theunlocking period, the restricted stock with the unlocking application qualification in the current period cannot beunlocked 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, theCompany’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part ofprice paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offsetthe capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price paid tostock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital
reserve (share premium).33.Change of main accounting policies and estimations(1)Change of main accounting policies
√ Applicable □ Not applicable
| 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 businessenterprises
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 inthe 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 | -538,128,584.84 | |
| Account receivable | -7,873,419,684.42 | |
| Notes receivable & account receivable | +8,411,548,269.26 |
| 2 | Interest receivable | -49,456,785.29 |
| Other account receivable | +49,456,785.29 | |
| 3 | Notes payable | -1,063,897,679.89 |
| Account payable | -4,636,989,039.65 | |
| Notes payable & Account payable | +5,700,886,719.54 | |
| 4 | Interest payable | -107,195,147.20 |
| Dividend payable | -35,000,000.00 | |
| Other account payable | +142,195,147.20 |
| 5 | Administration expenses | -256,991,555.91 |
| R & D expenses | +256,991,555.91 |
(2) Change of main accounting estimations
□Applicable√ Not applicable
34.Other1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written incurrent profit and loss except those for reputation adjustment in enterprise combination or trades directly countedinto 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 amountis 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 thetemporary 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 tradeis not enterprise combination and it neither influences accounting profit nor amount of payable tax when ithappens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, jointenterprises and associated enterprises. The temporary difference return time may be controlled and may not returnin foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income taxliabilities according to applicable tax between expected recovered assets and paid liabilities, and also the companywill reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date ofbalance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If itwas unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it waslikely 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 andDistributing and Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issuedby Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized inimproving 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 assetand is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is readyto put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it asequivalent accumulated depreciation.
3. Judgement and Estimation for Significant Accounting
During the process of applying accounting policies, due to to inherent uncertainties in business activities, the
Company requires judgement, estimation and assumption for the book value of the report items which can not bemeasured accurately. Such judgement, estimation and assumption is made basing on the previous experience ofthe Company’s management as well as the consideration of other relevant factors. And the reported amount ofrevenue, cost and asset, as well as the disclosure of balance sheet date and the liability will be influenced by suchjudgement, estimation and assumption; However, there may be differences between the actual result caused by theuncertainties of such estimation and the current estimation of the Company’s management, thereby significantadjustment 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 basedon going concern. The changes of accounting estimation only influence those which are influenced at the currentperiod, and of which the influence number will be confirmed at that current period; For those changes which haveinfluence both at the current period and the future period, the influence number of them will be confirmed at thatcurrent period and the future period.
On balance sheet date, the significant fields where the Company needs to make judgement, estimation andassumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction ContractWhen the result of construction contract can be estimated reliably, the Company will confirm the contract revenueon balance sheet date by adopting Percentage of Completion Method. The percentage of completion will beconfirmed according to Article 28-Revenue Recognition Principle in Note V and it will be totalized in eachaccounting 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 thecontract. The project management will make judgement mainly by means of previous experience and work. Thetotal predicted revenue and total cost of the contract, as well as the estimation changes of contract execution resultwill probably have effect on the operation revenue, the operation cost at the current changing period or at thesubsequent period, as well as the profits and losses during that period, and significant influence is likely to beformed 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 policyfor accounts receivable. Impairment of accounts receivable is based on the assessment of the recoverability ofaccounts receivable. The identification of impairment of accounts receivable requires management's judgment andestimation. The difference between the actual result and the original estimate will affect the book value ofaccounts receivable and the provision or reversal of bad debt provision for accounts receivable during the periodin 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 realizablevalue, 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 thesaleability of inventories and their net realizable value. Identification of impairment of inventories requiresmanagement to make judgments and estimates on the basis of obtaining conclusive evidence and considering thepurpose of holding the inventory and the influence of events after the balance sheet date. The difference betweenthe actual result and the original estimate will affect the book value of inventory and provision or reversal ofinventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortization
After considering the salvage value of investment real estate, fixed assets and intangible assets, the companyshall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularlyreviews the service life to determine the amount of depreciation and amortization expenses to be included in eachreporting period. The service life is determined by the Company based on past experience of similar assets andcombined with expected technical updates. If there has been a significant change in previous estimates, thedepreciation 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 willrecognize deferred income tax assets for all unused tax losses. This requires the management of the company touse a large number of judgments to estimate the time and the amount of future taxable profits, and combine the taxplanning 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 andcalculation of some transactions. It requires the approval of the tax authorities on whether some items can belisted as deductible in the profit before tax. If there is a difference between the final recognized result of thesetaxation matters and the originally estimated amount, the difference will have an impact on the income tax and thedeferred income tax of that period with the final recognition being made.
VI. Taxation1.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 Preference① On September 11, 2018,The 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 forhigh-tech enterprises for three years since 2018.②On July 20, 2017,Wuhu Tunghsu Optoelectronic Technology Co., Ltd. was rated as the national high-techenterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%enterprise tax rate applicable for high-tech enterprises for three years since 2017.
③On October 21, 2016,Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.④On November 21, 2016,Shijiazhuang Tunghsu Optoelectronic Equipment Technology Co., Ltd. was rated as thenational high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, theCompany adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⑤On November 29, 2018,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.⑥On November 21, 2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.⑦On November 30, 2016,Jiangsu Jixing New Material Co., Ltd. was rated as the national high-tech enterprisewith validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprisetax rate applicable for high-tech enterprises for three years since 2016.⑧On November 24, 2016,Shanghai Tanyuan Huigu New Material Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑨On December 1, 2016,Mingshuo(Beijing) Electric Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑩On October 25, 2017,Beijing Xutan New Material Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2017.
⑾On November 17, 2017,Suzhou Tengda Optical Technology Co., Ltd. was rated as the national high-techenterprise 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, 2016,Sichuan Xuhong Optoelectronic Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒀On November 24, 2016,Shanghai Sunlong Bus Co., Ltd. was rated as the national high-tech enterprisewith validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2016.
⒁On December 8, 2016,Chengdu Tunghsu Intelligence Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 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 of15% for the strategy of developing the western region and is exempted from the 40% tax share that originallybelongs 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’sCircular on the Continuation and Revision of Certain Policies Concerning the Promotion of the OpenDevelopment of the Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy, enjoys thecorporate income tax at the rate of 15% for the strategy of developing the western region and is exempted fromthe 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 Finance,State Administration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scale,Low-profit Enterprises” (Cai Shui [2011] No. 117) and the 28
th
clause of “The People's Republic of ChinaEnterprise Income Tax Law”- that the small profit-making enterprise that meets the requirements enjoys areduction 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 theState Taxation Administration on Issues Concerning Tax Policies Related to the Further Implementation of theWestern 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 theFurther Implementation of the Strategy for the Development of the Western Region (Announcement of the StateAdministration No.12, 2012), Announcement of the State Taxation Administration on Implementing the IssuesConcerning 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, theenterprise income tax rate may be reduced and paid at 15% for those enterprises located in the western regionwhose main business is the industrial projects specified in the Catalogue of Encouraged Industries in the WesternRegion and whose main business income accounts for more than 70% of the total enterprise income in the currentyear. In 2018, Tunghsu Construction Co., Ltd. shall enjoy this policy and pay enterprise income tax at the rate of15%.
?On October 12, 2018,Tunghsu(Yingkou) Optoelectronic Display Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
?On November 124, 2018,Chongqing Jinghuateng Optoelectronic Technology Co., Ltd. was rated as thenational high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, theCompany adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
?On November 30, 2018,Huzhou Mingshuo Optoelectronic Technology Co., Ltd. was rated as the nationalhigh-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2018.
3.OtherVII. Notes of consolidated financial statement1. Cash and Bank Balances
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash | 2,593,055.78 | 2,461,658.94 |
| Bank deposit | 19,285,678,472.37 | 26,666,668,936.88 |
| Other monetary assets | 518,822,869.01 | 787,629,173.04 |
| Total | 19,807,094,397.16 | 27,456,759,768.86 |
| Including：Total amount deposited abroad | 2,307,958.14 | 15,577,823.27 |
Other note
Note 1: The decrease of monetary fund at the end of the period compared with the beginning of the period ismainly 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 RMB4,890,457,106.12. Themain types are l/c and acceptance bill deposit, time deposit certificate, pledged deposit certificate and letter ofguarantee deposit.2.Financial assets measured at fair value through current profit and loss3.Derivative financial assets
□Applicable √ Not applicable
4.Notes receivable & account receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Notes receivable | 499,781,503.17 | 538,128,584.84 |
| Account receivable | 14,352,781,895.39 | 7,873,419,684.42 |
| Total | 14,852,563,398.56 | 8,411,548,269.26 |
（1）Notes receivable
（1）Classification Notes receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 142,810,310.93 | 267,121,031.99 |
| Trade acceptance | 356,971,192.24 | 271,007,552.85 |
| Total | 499,781,503.17 | 538,128,584.84 |
（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 balancesheet date
In RMB
| Items | Amount derecognized as at December 31,2018 | Amount underecognized as at January 1,2018 |
| Bank acceptance | 1,074,945,963.88 | |
| Trade acceptance | 350,505,600.00 | |
| Total | 1,074,945,963.88 | 350,505,600.00 |
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract oragreement
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.
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 | 154,637,381.31 | 1.06% | 154,637,381.31 | 100.00% | 175,782,084.76 | 2.16% | 175,782,084.76 | 100.00% | ||
| Account receivables with provision for bad debt made on a portfolio with similar risk credit characteristics basis | 14,450,540,744.24 | 98.94% | 97,758,848.85 | 0.68% | 14,352,781,895.39 | 7,975,776,808.83 | 97.84% | 102,357,124.41 | 1.28% | 7,873,419,684.42 |
| Total | 14,605,178,125.55 | 100.00% | 252,396,230.16 | 1.73% | 14,352,781,895.39 | 8,151,558,893.59 | 100.00% | 278,139,209.17 | 3.41% | 7,873,419,684.42 |
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. | 136,922,651.00 | 136,922,651.00 | 100.00% | Not expected to be recovered as a result of litigation |
| Korea Sunlong Bus Co.Ltd | 17,714,730.31 | 17,714,730.31 | 100.00% | Uncollectible |
| Total | 154,637,381.31 | 154,637,381.31 | -- | -- |
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 | |||
| Within credit period | 8,737,320,986.99 | ||
| Within 1 year after credit period | 1,070,531,899.41 | 53,526,594.96 | 5.00% |
| Subtotal within 1 year | 9,807,852,886.40 | 53,526,594.96 | 5.00% |
| 1-2 years | 189,920,028.18 | 18,992,002.82 | 10.00% |
| 2-3 years | 35,279,812.36 | 10,583,943.71 | 20.00% |
| Over 3 years | 20,711,170.96 | 14,656,307.36 | |
| 3-4 years | 10,708,702.83 | 5,354,351.42 | 30.00% |
| 4-5 years | 2,335,040.62 | 1,634,528.43 | 50.00% |
| Over 5years | 7,667,427.51 | 7,667,427.51 | 70.00% |
| Total | 10,053,763,897.90 | 97,758,848.86 | 100.00% |
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio□Applicable √Not applicableReceivable accounts on which had debt provisions are provided by other ways in the portfolioC.Accounts receivable of combinational withdrawing bad debt provision by Other methods
| Group Name | Amount in year-end | Provisionfor bad debt |
| State subsidy. Local subsidy | 2,810,817,714.40 |
| Other Group | 1,585,959,131.94 | |
| Total | 4,396,776,846.34 |
Continued：
| Group Name | Amount in year- beginning | Provision for bad debts |
| State subsidy. Local subsidy | 2,160,997,954.00 |
| Other Group | 254,753,079.36 |
| Total | 2,415,751,033.36 |
（2）Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision during the reporting period was of RMB116,848,675.65;Theamount of the reversed or collected part during the reporting period was of RMB55,997,072.38.（3）The current accounts receivable written-offs situation
In RMB
| Items | Amount written-offs |
| Accounts receivable written-offs | 86,594,582.28 |
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) |
| Korea sunlong Bus Co.Ltd | Goods | 33,605,450.90 | Unexpected to recover | Relevant approval procedures have been implemented | No |
| Siam Standard Energy Co.,Ltd | Goods | 29,683,695.30 | Unexpected to recover | Relevant approval procedures have been implemented | No |
| Foshan Sanshui Yuejing Automobile Transportation Co., Ltd. | Goods | 5,695,816.45 | Bankruptcy of the enterprise is not expected to be recovered. | Relevant approval procedures have been implemented | No |
| Total | -- | 68,984,962.65 | -- | -- | -- |
Account receivable verification instructions:
Note: the company has completed the related examination and approval procedures for the accounts receivable actually written off inthe current period
（4）The ending balance of account receivables owed by the imputation of the top five partiesThe total receivable amount of top five closing balances collected by the debtors in the current reporting period isRMB1,861,131,011.67, which accounts for 12.74% of the total receivables. The total amount of closing balancefor corresponding accrued bad-debt provision is RMB2,204,560.00.
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 accountsreceivable
NilOther note：
Note 1: the increase of accounts receivable at the end of the period compared with the beginning of the period is caused by theincrease 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(%) | |
| Within 1 year | 4,876,126,216.78 | 93.49% | 1,771,543,035.64 | 87.65% |
| 1-2 years | 146,513,615.36 | 2.81% | 196,545,999.45 | 9.73% |
| 2-3 years | 148,601,980.13 | 2.85% | 27,318,669.74 | 1.35% |
| Over 3 years | 44,172,407.24 | 0.85% | 25,712,246.12 | 1.27% |
| Total | 5,215,414,219.51 | -- | 2,021,119,950.95 | -- |
Note：
Note Note: the prepayment amount of 220,285,693.73 yuan with aging over 1 year and significant amount is notcarried 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 RMB1,860,688,593.47 , 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 | 56,81196.67 | 49,456,785.29 |
| Other receivable | 1,069,179,058.88 | 1,044,890,336.32 |
| Total | 1,125,991,020.55 | 1,094,347,121.61 |
（1）Interest receivable
（1）Classification Interest receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Fixed deposit | 56,811,961.67 | 49,456,785.29 |
| Total | 56,811,961.67 | 49,456,785.29 |
（2）Important overdue interestOther note：
Nil
(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 | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other Accounts receivable of individually withdrawing bad debt provision with significant individual amount | 9,056,821.74 | 0.83% | 9,056,821.74 | 100.00% | ||||||
| Other receivables subject to provision for bad debts on credit risk characteristics basis | 1,075,686,445.89 | 98.19% | 19,934,834.82 | 1.85% | 1,055,751,611.07 | 1,080,821,148.37 | 98.85% | 35,930,812.05 | 3.32% | 1,044,890,336.32 |
| Other Accounts receivable of individually withdrawing bad debt provision with non-significant individual amount | 19,817,716.37 | 1.81% | 6,390,268.56 | 32.25% | 13,427,447.81 | 3,471,143.41 | 0.32% | 3,471,143.41 | 100.00% | |
| Total | 1,095,504,162.26 | 100.00% | 26,325,103.38 | 2.40% | 1,069,179,058.88 | 1,093,349,113.52 | 100.00% | 48,458,777.20 | 4.43% | 1,044,890,336.32 |
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 | |||
| Within credit period | 270,308,778.79 | ||
| Within 1 year after credit period | 33,176,078.81 | 1,658,803.94 | 5.00% |
| Subtotal Within 1 year | 303,484,857.60 | 1,658,803.94 | 5.00% |
| 1-2 years | 48,822,292.15 | 4,882,229.21 | 10.00% |
| 2-3 years | 26,135,402.05 | 7,840,620.61 | 30.00% |
| Over 3 years | 9,516,681.87 | 5,553,181.06 | |
| 3-4 years | 7,896,375.72 | 3,948,187.86 | 50.00% |
| 4-5 years | 51,043.17 | 35,730.22 | 70.00% |
| Over 5 years | 1,569,262.98 | 1,569,262.98 | 100.00% |
| Total | 387,959,233.67 | 19,934,834.82 |
Note：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicableOther 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. | 1,886,873.28 | 462,229.61 | 24.50 | Estimated recoverable amount |
| Shenzhen Haisheng Transportation Service Co., Ltd. | 2,765,624.60 | 1,103,381.59 | 39.90 | Estimated recoverable amount |
| Shenzhen Xinguangtong Automobile Transportation Co., Ltd | 2,519,037.04 | 1,148,020.60 | 45.57 | Estimated recoverable amount |
| Datong Longtuo Travel Co., Ltd. | 1,969,899.05 | 571,507.85 | 29.01 | Estimated recoverable amount |
| Harbin Tianlu Automobile Leasing Co., Ltd. | 1,866,499.22 | 801,693.19 | 42.95 | Estimated recoverable amount |
| Xuchang Yuntong Bus Travel Co., Ltd. | 1,478,721.26 | 802,334.27 | 54.26 | Estimated recoverable amount |
| Datong Longlu Travel Co.,Ltd. | 1,274,996.21 | 20,059.22 | 1.57 | Estimated recoverable amount |
| Huhehaote Juding Automobile Sales Co., Ltd. | 1,105,311.68 | 144,270.58 | 13.05 | Estimated recoverable amount |
| Other | 4,950,754.03 | 1,336,771.65 | 27.00 | Estimated recoverable amount |
| Total | 19,817,716.37 | 6,390,268.56 | 32.25 |
（2）Bad debt provision accrual collected or switch backBad debt provision accrual was RMB22,110,365.98, the account collected or switches back amounting toRMB30,868,265.50.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 | 13,375,774.30 |
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 | 3,471,143.41 | Expected unrecoverable | Confirm bad debt according to the report - Foshan Sanshui yuejing | No |
| Korea Sunlong Bus Co.Ltd | Current account | 9,904,630.89 | Expected unrecoverable | According to the company's examination and approval report to confirm the loss of South Korea Sunlong bad debt | No |
| Total | -- | 13,375,774.30 | -- | -- | -- |
Note：
(4) Other account receivables category by nature of money
In RMB
| Nature | Ending book balance | Beginning book balance |
| Current account | 305,650,872.46 | 283,565,756.25 |
| Deposit | 621,344,394.44 | 507,704,264.31 |
| Personal official borrowing | 59,482,116.20 | 84,988,267.52 |
| Persona Returnable Insurance | 5,863,292.04 | 2,564,564.43 |
| Export tax refunds | 1,037,409.54 | 6,453,137.37 |
| Advance payment | 55,633,246.16 | 129,922,874.94 |
| Project fund | 37,831,545.08 | 68,529,879.43 |
| Other | 8,661,286.34 | 9,620,369.27 |
| Total | 1,095,504,162.26 | 1,093,349,113.52 |
（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 | 200,000,000.00 | 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 | 83,188,661.00 | Within credit period | 7.59% | |
| Chongqing Haolong Platinum Industry Co., Ltd. | Enterprises fund transfers | 50,163,611.11 | Within credit period | 4.58% | |
| Tibet transportation Dept. | Deposit | 30,305,918.60 | 1-2 years | 2.77% | |
| Chengdu Dingyang Technology Co., Ltd. | Deposit | 25,024,900.25 | Within 1 year:20,672,055.62 yuan, the rest are 1-2 years | 2.28% | |
| Total | -- | 388,683,090.96 | -- | 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 accountsreceivableNil
Other note：
Nil7.InventoryWhether the Company needs to comply with the disclosure requirements for specific industriesNo
（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 | 1,011,195,380.28 | 39,101,593.48 | 972,093,786.80 | 2,210,317,909.51 | 23,802,249.09 | 2,186,515,660.42 |
| Processing products | 144,788,638.36 | 144,788,638.36 | 243,932,972.44 | 243,932,972.44 | ||
| Stock goods | 675,474,531.36 | 21,859,006.00 | 653,615,525.36 | 457,130,464.91 | 9,080,902.13 | 448,049,562.78 |
| Completed but unsettled assets caused by construction contract | 1,200,764,859.02 | 1,200,764,859.02 | 760,198,642.91 | 760,198,642.91 | ||
| Development product | 317,769,074.78 | 317,769,074.78 | ||||
| Commissioned processing material | 33,093,172.93 | 435,243.31 | 32,657,929.62 | 60,471,813.36 | 1,443,698.36 | 59,028,115.00 |
| Commissioned materials | 6,883,551.21 | 6,883,551.21 | 13,306,134.19 | 13,306,134.19 | ||
| land arrangement | 182,213,301.70 | 182,213,301.70 | 10,346,187.21 | 10,346,187.21 | ||
| Development cost | 1,188,193,081.41 | 1,188,193,081.41 | ||||
| Total | 3,572,182,509.64 | 61,395,842.79 | 3,510,786,666.85 | 4,943,897,205.94 | 34,326,849.58 | 4,909,570,356.36 |
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information DisclosureGuidelines 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 DisclosureGuidelines No.11 - listed companies engaged in jweelry related business" disclosure requirements
No
(2) Inventory depreciation reserve
In RMB
| Items | Beginning of term | Increased in current period | Decreased in current period | End of term | ||
| Provision | Other | Transferred back | Other | |||
| Raw materials | 23,802,249.09 | 15,299,344.39 | 39,101,593.48 | |||
| Stock goods | 9,080,902.13 | 14,146,518.02 | 1,368,414.15 | 21,859,006.00 | ||
| Processing prodects | 1,443,698.36 | 1,008,455.05 | 435,243.31 | |||
| Total | 34,326,849.58 | 29,445,862.41 | 2,376,869.20 | 61,395,842.79 | ||
Notes 1：Basis of provision for inventory revaluation reserve was cost and net realizable value, and reason ofinventory 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 balanceThe end of the development cost includes interest capitalization of 32,101,989,.83 yuan.(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
| Items | Amount |
| Accumulated Incurred Cost | 8,396,256,236.64 |
| Accumulated Confirmed Gross Profit | 844,504,632.54 |
| Settlement Amount | 8,039,996,010.16 |
| Unliquidated Completed Assets Formed in the Construction Contract | 1,200,764,859.02 |
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 depreciation reserve |
| Tunghsu International Center | 2015.12.29 | 2018.10.16 | 220,000.00 | 1,188,193,081.41 | |||
| Including： Capital interest | 101,544,263.19 | ||||||
| Total | 1,188,193,081.41 |
（5）Development Product
| Name | Completion time | Opening | Increased in this | Decreased in this | Ending balance | Depreciation |
| balance | period | period | reserve |
| Tunghsu International Center | 2018/10/16 | 1,459,295,506.43 | 1,141,526,431.65 | 317,769,074.78 | ||
| Including： Capital interest | 125,233,711.67 | 93,131,721.84 | 32,101,989.83 |
Note 2: Note 2: For details of Mortages of end-of-period, please refer to Note 70 of Consolidated FinancialStatements
8. Holding assets for sale
In RMB
| Items | End book value | Fair value | Estimated disposal cost | Estimated disposal time |
| Holding assets for sale | 119,355,435.58 | 119,355,435.58 | December 31,2019 | |
| Total | 119,355,435.58 | 119,355,435.58 | -- |
Other note：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co., Ltd. acquires Sub-SubsidiaryMingshuo (Beijing) Electric Technology Co., Ltd., and the acquisition agreement stipulates that: Mingshuo (Beijing) Electric Technology Co., Ltd.’s original subsidiary, Mingshuo (Beijing) Trade Co., Ltd., Huzhou Mingwang Lighting 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 InvestmentDevelopment Co., Ltd.,Sichuan Panxi Lingshan Travel Investment Huanshun real estate Co., Ltd. Subei HexingWater Co., Ltd. was stripped after the acquisition, Sold on 31 December 2019.9. Non current assets due within one year10. Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| USD exchange | 58,000,000.00 | 58,000,000.00 |
| Prepayment of income tax | 663,642,694.01 | 1,281,947,333.75 |
| Short –term Financing | 87,718,084.48 | 1,220,000,000.00 |
| Total | 809,360,778.49 | 2,559,947,333.75 |
Other note：
Note: The decrease at the end of the period compared with the beginning of the period is mainly due to thedecrease in short-term financial management, advance payment and taxes to be deducted.
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 | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
| Cost measured | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
| Total | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
（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 shareholding in investees% | Cash dividends for the year | ||||||
| Balance of term | Increase | Balance of term | Increase | Decrease | End of term | |||||
| Beijing Yihuatong Technology Co., Ltd. | 100,000,056.00 | 100,000,056.00 | 5.51% | |||||||
| Beijing Shenwei Lixing Auto Service Co., Ltd. | 29,500,000.00 | 29,500,000.00 | 16.50% | |||||||
| China Metallurgical investment fund management (Beijing) Co., Ltd. | 113,658,549.30 | 113,658,549.30 | ||||||||
| Total | 100,000,056.00 | 143,158,549.30 | 243,158,605.30 | -- |
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fairvalue or non temporary decline but not related to impairment provision
Other note:
Notes 1: On July 10, 2017, the Company subscribed for 1,282,052.00 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 theconsideration of RMB 100,000,056.00. After the subscription, the company holds 5.51% stake of Beijing YihuatongTechnology 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 TuLiying 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 ismeasured at cost.Note 3: Tunghsu Construction Group Co., Ltd., a wholly-owned subsidiary of the company (hereinafter referred toas "Tunghsu Construction"), participates in the subscription of the Hengshui Funan New District Municipal PipeRack Project Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafterreferred to as "Hengshui Pipe Rack Fund") and Hengshui Funan New District Municipal Road ProjectGovernment-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. HengshuiPipe Rack Fund has a total scale of 386.0271 million yuan, of which Tunghsu Construction contributed 200million yuan in cash and China Metallurgical Tiangong Group Co., Ltd. contributed 186.0271 million yuan incash. Hengshui Road Fund has a total scale of 64.6776 million yuan, of which Tunghsu Construction contributed40 million yuan in cash and MCC Tiangong Group Co., Ltd. contributed 24.6776 million yuan in cash. BothHengshui 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 investment13. 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 | 347,225,434.05 | 2,794,618.37 | 344,430,815.68 | 143,988,866.91 | 143,988,866.91 | 6%-7.6% 45.78% | |
| installment | |||||||
| Total | 347,225,434.05 | 2,794,618.37 | 344,430,815.68 | 143,988,866.91 | 143,988,866.91 | -- |
(2) Long-term account receivables recognition terminated due to transfer of financial assetsNil(3) Long-term account receivables transferred and assets & liability formed by its continuous involvementNilOther noteNil14. Long-term equity investment
In RMB
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Addition investment | Deduction investment | Gains/loss under equity method | Other comprehensive income adjustments | Other changes in equity | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associates | |||||||||||
| Tunghsu Group Finance Co., Ltd. | 2,004,062,204.94 | 52,198,290.80 | 2,056,260,495.74 | ||||||||
| Tunghsu (Deyang) Graphene Industry Development Fund Partnership (LP) | 20,436,738.11 | 20,502,807.13 | 66,069.02 | ||||||||
| Zibo Bus service Co., Ltd. | 32,678,813.57 | 9,137,725.63 | 41,816,539.20 | ||||||||
| CUHK | 73,306,96 | 2,963,966 | 76,270,93 | ||||||||
| international business factoring co., Ltd | 8.08 | .20 | 4.28 | ||||||||
| Subtotal | 2,130,484,724.70 | 20,502,807.13 | 64,366,051.65 | 2,174,347,969.22 | |||||||
| Total | 2,130,484,724.70 | 20,502,807.13 | 64,366,051.65 | 2,174,347,969.22 |
Other note
Note 1: Tunghsu (Deyang) Graphene Industry Development Fund Partnership (Limited Partnership), the jointventure, was liquidated in November 2018.Note 2: The long-term equity investment at the beginning of the period includes the investment of RMB155,434.20 in the subsidiary Tunghsu Technology Co., Ltd. which has decided to be cancelled. The decrease at theend 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 | 58,843,742.66 | 58,843,742.66 | ||
| 2.Increase in the current period | 650,839,934.77 | 650,839,934.77 | ||
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | 650,839,934.77 | 650,839,934.77 | ||
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 709,683,677.43 | 709,683,677.43 | ||
| II. Accumulated amortization | ||||
| 1.Opening balance | 614,302.80 | 614,302.80 | ||
| 2.Increased amount of the period | 22,075,493.61 | 22,075,493.61 | ||
| (1) Withdrawal | 1,311,370.70 | 1,311,370.70 | ||
| （2）Other transfers | 20,764,122.91 | 20,764,122.91 | ||
| 3.Decrease in the reporting period | ||||
| （1）Disposal | ||||
| （2）Other out | ||||
| 4.Closing balance | 22,689,796.41 | 22,689,796.41 | ||
| 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 | 686,993,881.02 | 686,993,881.02 | ||
| 2.Book value of the period-begin | 58,229,439.86 | 58,229,439.86 |
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Other note:
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 ofConsolidated Financial Statements16. Fixed assets
In RMB
| Items | End of term | Beginning of term |
| Fixed assets | 9,634,463,323.77 | 11,379,727,456.13 |
| Total | 9,634,463,323.77 | 11,379,727,456.13 |
(1) List of fixed assets
In RMB
| Items | House, building | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1. Balance at period-beginning | 2,113,818,494.63 | 11,507,750,402.79 | 122,144,132.07 | 185,704,090.92 | 13,929,417,120.41 |
| 2.Increase in the current period | 10,207,180.25 | 246,913,236.99 | 12,199,683.44 | 17,281,305.55 | 286,601,406.23 |
| (1) Purchase | 3,461,826.41 | 102,143,588.91 | 11,778,832.81 | 14,896,843.09 | 132,281,091.22 |
| （2）Transferred from construction in progress | 6,745,353.84 | 135,659,667.72 | 420,850.63 | 154,608.75 | 142,980,480.94 |
| (3)Increased of Enterprise Combination | 9,109,980.36 | 2,229,853.71 | 11,339,834.07 | ||
| 3.Decreased amount of the period | 55,773,182.12 | 1,490,329,299.95 | 5,451,335.92 | 8,506,417.41 | 1,560,060,235.40 |
| （1）Disposal | 1,643,394.46 | 31,261,718.03 | 2,172,216.69 | 2,555,836.20 | 37,633,165.38 |
| （2）Investment real estate transfer | 54,129,787.66 | 54,129,787.66 | |||
| （3）Transfer of project under construction | 1,423,046,991.10 | 1,423,046,991.10 | |||
| （4）Decreased of Enterprise consolidation | 34,979,102.26 | 3,224,838.34 | 3,917,061.15 | 42,121,001.75 | |
| （5）Other decrease | 1,041,488.56 | 54,280.89 | 2,033,520.06 | 3,129,289.51 |
| 4.Closing balance | 2,068,252,492.76 | 10,264,334,339.83 | 128,892,479.59 | 194,478,979.06 | 12,655,958,291.24 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 404,808,570.47 | 2,013,275,887.71 | 57,491,501.47 | 73,521,319.79 | 2,549,097,279.44 |
| 2.Increased amount of the period | 72,379,067.98 | 748,514,807.63 | 14,306,694.96 | 22,334,400.51 | 857,534,971.08 |
| （1）Withdrawal | 72,379,067.98 | 748,456,500.83 | 14,306,694.96 | 22,299,885.01 | 857,442,148.78 |
| (2) Combined to increase | 58,306.80 | 34,515.50 | 92,822.30 | ||
| 3.Decreased amount of the period | 20,267,629.35 | 360,768,003.71 | 1,457,400.78 | 3,236,634.05 | 385,729,667.89 |
| （1）Disposal or scrap | 711,850.91 | 22,966,383.95 | 1,057,436.73 | 943,282.86 | 25,678,954.45 |
| （2）Investment real estate transfer | 19,555,778.44 | 19,555,778.44 | |||
| （3）Transferred from construction in progress | 336,099,776.16 | 336,099,776.16 | |||
| Combined to reduce | 660,355.04 | 345,683.16 | 259,831.13 | 1,265,869.33 | |
| （4）Other decrease | 1,041,488.56 | 54,280.89 | 2,033,520.06 | 3,129,289.51 | |
| 4.Closing balance | 456,920,009.10 | 2,401,022,691.63 | 70,340,795.65 | 92,619,086.25 | 3,020,902,582.63 |
| III. Impairment provision | |||||
| 1.Opening balance | 36,444.84 | 555,940.00 | 592,384.84 | ||
| 2.Increase in the reporting period | |||||
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | |||||
| （1）Disposal | |||||
| 4. Closing balance | 36,444.84 | 555,940.00 | 592,384.84 |
| IV. Book value | |||||
| 1.Book value of the period-end | 1,611,332,483.66 | 7,863,275,203.36 | 57,995,743.94 | 101,859,892.81 | 9,634,463,323.77 |
| 2.Book value of the period-begin | 1,709,009,924.16 | 9,494,438,070.24 | 64,096,690.60 | 112,182,771.13 | 11,379,727,456.13 |
(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 | 1,438,000,000.00 | 397,112,850.07 | 1,040,887,149.93 | |
| Total | 1,438,000,000.00 | 397,112,850.07 | 1,040,887,149.93 |
(4) Fixed assets leased in the operating leases(5) Fixed assets without certificate of title completed
In RMB
| Items | Net carrying amount | Reason |
| Substation | 249,637.97 | Processing |
| Boiler room | 3,700,833.84 | Processing |
Other note:
Note 1: For details of the mortgage right of fixed assets at the end of the period and the restrictions on financialleasing, please refer to Note 70 of the Consolidated Financial Statements（6）Liquidation of fixed assets17. Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance |
| Project under construction | 5,013,940,816.82 | 3,667,972,406.42 |
| Engineering Materials | 1,163.79 | |
| Total | 5,013,941,980.61 | 3,667,972,406.42 |
(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 | 2,258,254,792.65 | 2,258,254,792.65 | 1,992,039,147.54 | 1,992,039,147.54 | ||
| Wuhan LCD glass substrate production line project | 14,645,209.52 | 14,645,209.52 | 14,645,209.52 | 14,645,209.52 | ||
| Kunshan Color film project | 617,456,517.49 | 617,456,517.49 | 363,976,794.49 | 363,976,794.49 | ||
| Polarizer project | 763,009,412.48 | 763,009,412.48 | ||||
| Surface display cover glass | 125,655,703.76 | 125,655,703.76 | 15,954,258.93 | 15,954,258.93 | ||
| High aluminum silicon cover glass sheet production line upgrade project | 1,003,879,240.41 | 1,003,879,240.41 | ||||
| Glass substrate production line with annual output of 1.65 million (G5) TFT-LCD | 570,129,313.14 | 570,129,313.14 | 414,857,526.62 | 414,857,526.62 | ||
| New energy bus and logistics vehicle production project | 147,947,403.38 | 147,947,403.38 | 0.00 | 0.00 | ||
| Other | 290,617,845.99 | 290,617,845.99 | 118,135,266.36 | 118,135,266.36 | ||
| Total | 5,028,586,026.34 | 14,645,209.52 | 5,013,940,816.82 | 3,682,617,615.94 | 14,645,209.52 | 3,667,972,406.42 |
(2)Changes of significant construction in progress
In RMB
| Name | Budget | Amount | Increase | Transferr | Other | Balance | Proporti | Progress | Capitaliz | Includin | Capitaliz | Source |
| at year beginning | at this period | ed to fixed assets | decrease | in year-end | on(%) | of work | ation of interest accumulated balance | g：Current amount of capitalization of interest | ation of interest ratio（%) | of funds | ||
| Wuhu LCD glass substrate production line project | 7,576,520,000.00 | 1,992,039,147.54 | 266,215,645.11 | 2,258,254,792.65 | 96.66% | 96.66% | 800,297,668.32 | 83,615,883.39 | IPO funds | |||
| Kunshan Color film project | 3,115,500,000.00 | 363,976,794.49 | 253,479,723.00 | 617,456,517.49 | 21.30% | 21.30% | IPO funds | |||||
| Surface display cover glass | 1,497,380,000.00 | 15,954,258.93 | 109,701,444.83 | 125,655,703.76 | 12.18% | 12.18% | 13,715,701.19 | IPO funds | ||||
| High aluminum silicon cover glass sheet production line upgrade project | 1,300,000,000.00 | 1,003,879,240.41 | 1,003,879,240.41 | 85.44% | 85.44% | IPO funds | ||||||
| New energy bus and logistics vehicle production project | 2,955,074,600.00 | 147,947,403.38 | 147,947,403.38 | 10.41% | 10.41% | IPO funds | ||||||
| Annual output | 981,050,000.00 | 414,857,526.62 | 155,271,786.52 | 570,129,313.14 | 109.17% | 95.00% | 56,702,556.91 | 23,550,311.10 | Other |
| 1.65 million (G5) TFT-LCD glass substrate production line | ||||||||||||
| Pilot production line project for thick film substrates | 126,490,000.00 | 120,788,399.94 | 120,788,399.94 | 95.49% | 100.00% | Other | ||||||
| Polarizer project | 2,200,000,000.00 | 763,009,412.48 | 15,793,220.47 | 778,802,632.95 | Other | |||||||
| Total | 19,752,014,600.00 | 3,549,837,140.06 | 2,073,076,863.66 | 120,788,399.94 | 778,802,632.95 | 4,723,322,970.83 | -- | -- | 870,715,926.42 | 107,166,194.49 | -- |
（3）Impairment provision of construction projects18. 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 | 1,163.79 | 1,163.79 | ||||
| Total | 1,163.79 | 1,163.79 | ||||
Other note:
Note 1: For details of the mortgage at the end of the construction in progress, see Note 70 of the consolidatedfinancial statements.
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 | 887,528,257.12 | 23,582,996.80 | 150,931,868.85 | 7,755,063.97 | 87,050,298.13 | 1,156,848,484.87 |
| 2.Increase in the current period | 145,458,869.94 | 66,657,413.82 | 14,204,413.89 | 12,316,749.51 | 238,637,447.16 | |
| (1) Purchase | 145,458,869.94 | 2,234,200.42 | 12,316,749.51 | 160,009,819.87 | ||
| （2）Internal R & D | ||||||
| （3）Increased of Enterprise Combination | 53,688,713.40 | 14,204,413.89 | 67,893,127.29 | |||
| (4)Investor investment | 10,734,500.00 | 10,734,500.00 | ||||
| 3.Decreased amount of the period | 5,632,373.72 | 5,632,373.72 | ||||
| （1）Disposal | ||||||
| （2）Investment real estate transfer | 5,632,373.72 | 5,632,373.72 | ||||
| 4. Balance at | 1,027,354,753.34 | 90,240,410.62 | 165,136,282.74 | 20,071,813.48 | 87,050,298.13 | 1,389,853,558.31 |
| period-end | ||||||
| II. Accumulated amortization | ||||||
| 1. Balance at period-beginning | 76,219,489.09 | 3,138,879.85 | 28,677,985.20 | 2,965,954.66 | 44,050,066.05 | 155,052,374.85 |
| 2. Increase in the current period | 22,744,757.95 | 5,204,892.49 | 15,878,742.46 | 2,331,780.50 | 42,899,609.40 | 89,059,782.80 |
| (1) Withdrawal | 22,744,757.95 | 4,688,497.61 | 15,878,742.46 | 2,331,780.50 | 42,899,609.40 | 88,543,387.92 |
| （2）Increased of Enterprise Combination | 447,405.94 | 447,405.94 | ||||
| （3）Investment | 68,988.94 | 68,988.94 | ||||
| 3.Decreased amount of the period | 1,208,344.48 | 1,208,344.48 | ||||
| （1）Disposal | ||||||
| （2）Investment real estate transfer | 1,208,344.48 | 1,208,344.48 | ||||
| 4. Balance at period-end | 97,755,902.56 | 8,343,772.34 | 44,556,727.66 | 5,297,735.16 | 86,949,675.45 | 242,903,813.17 |
| 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 | 929,598,850.78 | 81,896,638.28 | 120,579,555.08 | 14,774,078.32 | 100,622.68 | 1,146,949,745.14 |
| period -end | ||||||
| 2.Book value at period-beginning | 811,308,768.03 | 20,444,116.95 | 122,253,883.65 | 4,789,109.31 | 43,000,232.08 | 1,001,796,110.02 |
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion ofthe balance of intangible assets 0.00%⑵Details of Land use right failed to accomplish certification of propertyOther 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 financialstatements.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. | 3,883,495.16 | 7,260,906.60 | 2,557,863.40 | 8,586,538.36 | ||||
| Jingang Robot | 3,361,420.59 | 3,361,420.59 | ||||||
| Warehouse robot | 2,855,282.54 | 2,855,282.54 | ||||||
| Companion robot (desktop) | 2,900,641.21 | 2,900,641.21 | ||||||
| EASSupply chain system | 2,236,772.24 | 2,236,772.24 | ||||||
| Landscape street lamp design project | 2,141,940.99 | 1,673,576.37 | 3,815,517.36 | |||||
| Magnolia lamp design | 762,432.49 | 762,432.49 | ||||||
| project | ||||||||
| Low voltage distribution system project | 2,055,487.81 | 2,055,487.81 | ||||||
| High voltage distribution system project | 3,096,837.78 | 3,096,837.78 | ||||||
| Intelligent photovoltaic junction box | 914,598.09 | 914,598.09 | ||||||
| Vehicle charging pile Project | 519,955.68 | 803,963.60 | 519,955.68 | 803,963.60 | ||||
| Energy storage project | 2,022,956.97 | 2,022,956.97 | ||||||
| Development of main Control system for AC charging pile | 5,522,571.93 | 5,522,571.93 | ||||||
| Research on an efficient LED module street lamp | 3,903,701.39 | 3,903,701.39 | ||||||
| Chinese style courtyard lamp design project | 1,663,986.67 | 1,663,986.67 | ||||||
| Flexible battery | 1,456,310.68 | 1,456,310.68 | ||||||
| Other | 15,529.37 | 15,529.37 | ||||||
| Total | 15,397,704.97 | 33,654,663.19 | 11,930,132.22 | 37,122,235.94 |
22. Goodwill(1) Original book value of goodwill
In RMB
| Investees/ Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Business Combination | Purchase | Disposal | ||||
| Mingshuo（Beijing）Electric Technology Co., Ltd. | 32,783,882.96 | 32,783,882.96 | ||||
| Chenzhou Hongcheng Public Traffic Constriction Development Co., Ltd. | 10,163,443.61 | 10,163,443.61 | ||||
| Daosui Group Engineering Co., Ltd. | 40,095,298.31 | 40,095,298.31 | ||||
| Chuanglian Huatai(HK) Co., Ltd. | 722,450.89 | 722,450.89 | ||||
| Suzhou Tengda Optics Technology Co., Ltd. | 82,350,192.94 | 82,350,192.94 | ||||
| Guangxi Sunlong Automobile Manufacturing Co., Ltd . | 55,664,910.37 | 55,664,910.37 | ||||
| Shanghai Tanyuan Huigu New Material Co., Ltd. | 33,935,384.57 | 33,935,384.57 | ||||
| Shanghai Sunlong Bus Co., Ltd. | 2,331,962,577.34 | 2,331,962,577.34 | ||||
| Zhongcheng National construction co., Ltd. | 133,269,567.62 | 133,269,567.62 | ||||
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 68,888,405.50 | 68,888,405.50 | ||||
| Huaxi Nanchong Automobile Co., Ltd. | 55,999,916.40 | 55,999,916.40 | ||||
| Total | 2,587,678,140.99 | 258,157,889.52 | 2,845,836,030.51 |
（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. | 10,163,443.61 | 10,163,443.61 | ||||
| Total | 10,163,443.61 | 10,163,443.61 | ||||
Relevant information about the asset group or asset group combination in which goodwill residesThe asset group or asset group combination related to goodwill impairment test is that can benefit from thesynergistic effect of business merger. The test scope at the balance sheet date is the assets and liabilities involvedin 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 businessdue to the short merger and acquisition. Therefore, goodwill impairment test was carried out with ShanghaiSunlong and Guangxi Sunlong Automobile Manufacturing Co., Ltd. (hereinafter referred to as "GuangxiSunlong"), 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 managementconducted goodwill impairment test with Shanghai Sunlong, Guangxi Sunglong and Huaxi Nanchong AutomobileCo., 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 periodgrowth rate, profit margin, discount rate and forecast period when forecasting the present value future cash flow)and the recognition method of goodwill impairment lossThe recoverable amounts for asset group and asset group combination are based on the three-to five-year
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 operatingperiod up to 2036.The discount rate adopted by the management of the company is the pre-tax interest rate reflecting the timevalue of the current market currency and the specific risks of the relevant asset group. Different asset groups arelocated 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 disposalvalue) of the asset minus the disposal expenses due to the future disposal of Zhongcheng National construction co., Ltd.Ltd..Impact of goodwill impairment testZhongming International Asset Appraisal (Beijing) Co., Ltd. evaluated and confirmed the present value of thefuture 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 ofgoodwill impairment.Confirmed in the appraisal report (ZMPBZ [2019] No. 0009), Suzhou Tengda shows no sign of goodwillimpairment.Confirmed in the appraisal report (ZMPBZ [2019] No. 0010), Sanbao Innovation shows no sign of goodwillimpairment.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 goodwillimpairment.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 goodwillimpairment.
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. isRMB 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 | 20,884,579.02 | 12,415,384.73 | 7,862,496.12 | 8,590,217.81 | 16,847,249.82 |
| NEG Technology Use fee | 5,653,725.00 | 616,770.00 | 5,036,955.00 | ||
| Total | 26,538,304.02 | 12,415,384.73 | 8,479,266.12 | 8,590,217.81 | 21,884,204.82 |
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 | 343,092,733.65 | 64,950,015.23 | 361,268,489.05 | 72,770,445.79 |
| Not realized the internal profit | 2,085,646,185.70 | 313,672,923.77 | 2,184,199,412.75 | 350,253,995.33 |
| Deductible loss | 813,056,144.42 | 123,065,344.84 | 434,657,411.04 | 65,723,232.54 |
| Deferred income difference | 99,944,032.99 | 14,878,382.57 | 73,641,000.14 | 11,046,150.02 |
| Non-identical control enterprise | 9,424,416.78 | 909,279.99 | 8,652,114.93 | 783,147.37 |
| Projected liability | 20,944,899.84 | 5,236,224.96 | 38,543,627.93 | 9,635,906.98 |
| Advance quality margin | 78,820,850.20 | 10,382,456.32 | 117,878,085.38 | 16,420,648.06 |
| Total | 3,450,929,263.58 | 533,094,627.68 | 3,218,840,141.22 | 526,633,526.09 |
(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 | 293,849,152.24 | 54,572,072.64 | 349,818,170.15 | 60,149,328.74 |
| Depreciation difference due to different tax law and accounting depreciation period | 4,198,490.69 | 620,911.33 | ||
| Total | 298,047,642.93 | 55,192,983.97 | 349,818,170.15 | 60,149,328.74 |
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
| 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 | 533,094,627.68 | 526,633,526.09 | ||
| Deferred income liabilities | 55,192,983.97 | 60,149,328.74 |
(4)Details of income tax assets not recognized
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Deductible losses | 152,606,559.26 | 74,905,668.59 |
| Fixed assets depreciation reserves | 0.00 | 36,444.84 |
| Provision for impairment of construction projects | 14,645,209.52 | 14,645,209.52 |
| Bad debt provision | 86,413.68 | 86,413.68 |
| Total | 167,338,182.46 | 89,673,736.63 |
(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 | 15,649.80 | |
| 2019 | 386,221.54 | 436,608.64 | |
| 2020 | 3,751,170.54 | 3,751,170.54 | |
| 2021 | 22,199,323.24 | 32,084,711.54 | |
| 2022 | 27,911,201.66 | 38,617,528.07 | |
| 2023 | 98,358,642.28 | ||
| Total | 152,606,559.26 | 74,905,668.59 | -- |
25 .Other non-current assets
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Prepaid land fund | 6,590,000.00 | |
| Prepaid engineering equipment | 4,463,496,966.82 | 299,812,939.48 |
| Total | 4,463,496,966.82 | 306,402,939.48 |
26.Short –term loans（1）Short-term loans by category
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pledge loan | 2,666,853,417.34 | 320,666,279.80 |
| Mortgage loan | 1,847,600,000.00 | 374,600,000.00 |
| Guarantee loan | 3,589,753,471.68 | 4,997,500,000.00 |
| Credit loan | 256,899,762.31 | 20,060,102.40 |
| Total | 8,361,106,651.33 | 5,712,826,382.20 |
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 847,600,000.00.
Including: (1) End-of-period mortgage loan is RMB 110,000,000.00 which is both a guarantee loan and amortgage loan. Tunghsu Group Co., Ltd., the Company and its subsidiary Shanghai Sunlong Bus Co., Ltd. provideguarantee for Guangxi Sunlong Automobile Manufacturing Co., Ltd., the grandson company; the collateral is theinspection line workshop, warehouse and No. 1 production workshop located at No. 99 Puxing Avenue, YongningDistrict, Nanning City, numbered as No. 0243831, 0243689, 0137166 of Gui (2018) Nanning Real Estate Right;
(2) End-of -period mortgage loan is RMB 49,600,000.00 which is both a guarantee loan and a mortgage loan.Tunghsu Construction Group Co., Ltd. and Yang Jianzhong provide joint liability guarantee for Daosui GroupEngineering Co., Ltd., the grandson company. The collateral is the No. 384 construction land (HGY (2012) Z) andNo. 200700980 real estates (HYZ No.200700980) located at No. 66 Yingbin Road, Huaying City.
(3) End-of-period mortgage loan is RMB 110,000,000.00. The collateral is the machinery and equipment ofthe subsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd. and the land and real estate corresponding to thefirst production line;
(4) End-of -period mortgage loan is RMB 98,000,000.00 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 ZhudingInvestment Development Group Co., Ltd., the mortgagor, will mortgage the house and other fixtures (J (2018) HReal Estate No. 0050316) located in No. 115 office property, Yangfangdian, Haidian District, Beijing.
(5) End-of-period guarantee loan is RMB 480,000,000.00. Li Zhaoting provides joint and several guaranteesfor the Company. All parcel number 33010801200000004 residential lands and parcel number33010801200000006 commercial lands of Hangzhou Yuanbang Real Estate Development Co., Ltd. located inKanshan Town, Xiaoshan District, Hangzhou City, Zhejiang Province, serve as the second order mortgageguarantee for the state-owned transfer of land use right. The first floor of Binjiang Huayue Phase III apartmentbuilding 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 1,000,000,000.00.
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 alsopledged 100% shares of its subsidiary Beijing Xufeng Real Estate Co., Ltd., which provides mortgage on its ownland.
Note 3: The guarantee loan is RMB 3,589,753,471.68:
Of which: (1) End-of-period guarantee loan is RMB 210,000,000.00, The Company and Li Zhaoting providesjoint liability guarantee for the Company;（2）End-of-period guarantee loan is RMB 100,000,000.00, The company provides joint liability guarantee to theSub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;（3）End-of-period guarantee loan is RMB 25,000,000.00, The company and Li Zhaoting provides joint liabilityguarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;（4）End-of-period guarantee loan is RMB 20,000,000.00, The company provides joint liability guarantee to theSub-Subsidiary –Suzhou Tengda Optics Technology Co., Ltd.;（5）End-of-period guarantee loan is RMB 205,000,000.00, The company provides joint liability guarantee to theSubsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;（6）End-of-period guarantee loan is RMB 95,000,000.00, The company provides joint liability guarantee to theSubsidiary –Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;（7）End-of-period guarantee loan is RMB 50,000,000.00, The company provides joint liability guarantee to theSubsidiary –Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
(8) End-of-period guarantee loan is RMB 80,000,000.00, Tunghsu Group Co., Ltd. and Li Zhaoting providejoint guarantee for Sichuan Xuhong Optoelectronic Technology Co., Ltd.;（9）End-of-period guarantee loan is RMB 50,000,000.00, The Company provides joint liability guarantee to thesubsidiary -Shanghai Sunlong Bus Co., Ltd;（10）End-of-period guarantee loan is RMB100,000,000.00, The Company and Tunghsu Group provides jointliability guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;（11）End-of-period guarantee loan is RMB45,000,000.00, The Company and Tunghsu Group provides jointliability guarantee to the sub-subsidiary –Suzhou Tengda Optics Technology Co., Ltd.;（12）End-of-period guarantee loan is RMB200,000,000.00, The Company and Tunghsu Group provides jointliability guarantee to the Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;（13）End-of-period guarantee loan is RMB400,000,000.00, Li Zhaoting and Tunghsu Group provides jointliability guarantee to the Company.;（14）End-of-period guarantee loan is RMB100,000,000.00, Li Zhaoting and Tunghsu Group provides jointliability guarantee to Shanghai Sunlong Bus Co., Ltd.;（15）End-of-period guarantee loan is RMB200,000,000.00, Li Zhaoting and Tunghsu Group provides jointliability guarantee to the Subsidiary –Zhengzhou Xufei Optoelecronic Technology Co., Ltd.;（16）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group.provides joint liability guarantee tothe Subsidiary –Shanghai Sunlong Bus Co., Ltd.;（17）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee tothe Company.;（18）End-of-period guarantee loan is RMB250,000,000.00, Tunghsu Group provides joint liability guarantee tothe Subsidiary –Daosui Group Co., Ltd.;（19）End-of-period guarantee loan is RMB150,000,000.00, Tunghsu Group provides joint liability guarantee tothe Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;（20）End-of-period guarantee loan is RMB320,000,000.00, Tunghsu Group provides joint liability guarantee tothe Subsidiary –Shanghai Sunlong Bus Co., Ltd.;（21）End-of-period guarantee loan is RMB50,000,000.00, Tunghsu Group provides joint liability guarantee tothe Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;（22）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;（23）End-of-period guarantee loan is RMB30,000,000.00, Subsidiary-Shanghai Sunlong Bus Co., Ltd.providesjoint liability guarantee to the Sub- Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
(24)End-of-period guarantee loan is RMB55,253,471.68, Sub-Subsidiary-Shenzhen Xinyingtong TechnologyCo., Ltd.provides guarantee with 100% Pledge .;（25）End-of-period guarantee loan is RMB150,000,000.00,The Company provides joint liability guarantee toSubsidiary - Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;（26）End-of-period guarantee loan is RMB25,000,000.00, The Company provides joint liability guarantee to thesub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;（27）End-of-period guarantee loan is RMB49,500,000.00, The Company provides joint liability guarantee to theSubsidiary –Tunghsu (Kunshan) Display Co., Ltd.;（28）End-of-period guarantee loan is RMB20,000,000.00, The Company and Li Zhaoting provides joint liabilityguarantee to the sub-subsidiary –Hunan Tunghsu Delai Electric Technology Co., Ltd.;（29）End-of-period guarantee loan is RMB10,000,000.00, The Company provides joint liability guarantee to thesub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Note 4: End-of-period pledge loan is RMB2,666,853,417.34:
(1) The Company pledges a loan of RMB 142,500,000.00 and provides pledge guarantee for Wuhu TunghsuOptoelectronic Technology Co., Ltd. with the fixed deposit receipt of RMB 150,000,000.00.
（2）The Company provides a guarantee of RMB 20,000,000.00 for the sub-subsidiary ChongqingJinghuateng Optoelectronic Technology Co., Ltd. which uses the accounts receivable of RMB 25,674,800.00 aspledge.
(3) End-of-period pledge loan is RMB 180,000,000.00 which is both a guarantee loan and a pledge loan.Tunghsu Group Co., Ltd., Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu TunghsuWeiyu Medical Apparatus Technology Co., Ltd., a sub-subsidiary of the Company, provide joint guarantee; HunanTunghsu Weigao Medical Apparatus Technology Co., Ltd., the grandson company, provides pledge guarantee withfixed deposit receipt of RMB 100 million;
(4) End-of-period pledge loan is RMB 142,500,000.00. Wuhu Tunghsu Optoelectronic EquipmentTechnology Co., Ltd. provides pledge guarantee with the fixed deposit receipt of RMB 150,000,000.00.
(5) End-of-period pledge loan is RMB 69,000,000.00. Daosui Group Engineering Co., Ltd., thesub-subsidiary company, provides pledge guarantee with the fixed deposit receipt of RMB 72,010,000.00;
(6) The pledged loan at the end of the period is RMB 1,800,000,000.00. Li Zhaoting and Shenzhen OufuyuanTechnology Co., Ltd. hold 75% of the equity of Zhongshan Shenzhong Real Estate Development Co., Ltd. toprovide pledge guarantee.
(7) End-of-period pledge loan is RMB 12,853,417.34. Suzhou Tengda Optical Technology Co., Ltd., thesub-subsidiary company, provides pledge guarantee with accounts receivable pledge .
(8) End-of-period pledge loan is RMB 300,000,000.00.Tunghsu Group's loan is both a guarantee loan and apledge loan guarantee. Li Zhaoting,Tunghsu Group Co., Ltd. and Shanghai Sunlong Bus Co., Ltd. provide jointliability guarantee. Shanghai shenlong bus co., LTD. Provides pledge guarantee for the company with the pledgeof 350 million accounts receivable.
(2) Situation of Overdue Outstanding Short-Term Borrowing
27. Financial liabilities measured at fair value through current profit and loss28. Derivative financial liabilities
□ Applicable√ Not applicable
29.Notes payable & account payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Notes payable | 1,643,167,026.68 | 1,063,897,679.89 |
| Account payable | 8,632,927,106.20 | 4,636,989,039.65 |
| Total | 10,276,094,132.88 | 5,700,886,719.54 |
（1）List of Notes payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Commercial acceptance | 1,288,410,321.68 | 826,294,597.49 |
| Bank acceptance bills | 354,756,705.00 | 237,603,082.40 |
| Total | 1,643,167,026.68 | 1,063,897,679.89 |
（2）List of account payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Materials engineering labor payment | 6,796,000,151.83 | 3,434,306,764.15 |
| Project Fouds | 1,749,055,669.87 | 1,093,739,288.73 |
| Transportation expenses | 28,726,403.86 | 11,172,407.72 |
| Other | 59,144,880.64 | 97,770,579.05 |
| Total | 8,632,927,106.20 | 4,636,989,039.65 |
（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 | 48,000,000.00 | Unpaid payment term |
| Beijing Guoxun investment co., Ltd. | 41,088,123.25 | Unpaid payment term |
| Sichuan Chaohang Construction Services | 22,500,000.00 | Unpaid payment term |
| Co., Ltd. Chengdu Branch | ||
| Ningxia tianshun electric power engineering co. LTD | 21,052,646.58 | Unpaid payment term |
| Xinjiang Anpuneng New Energy Investment Co., Ltd. | 20,895,884.25 | Unpaid payment term |
| Total | 153,536,654.08 | -- |
30.Advance account
（1）Advance account
In RMB
| Items | Closing balance | Opening balance |
| Goods | 133,288,930.47 | 635,268,325.76 |
| Engineering fund | 1,268,994,731.90 | 1,019,869,237.87 |
| Total | 1,402,283,662.37 | 1,655,137,563.63 |
(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 theperiod
In RMB
| Items | Amount |
| Accumulated Incurred Cost | 2,275,075,178.00 |
| Accumulated Confirmed Gross Profit | 162,467,492.90 |
| Settlement Amount | 2,688,749,974.00 |
| Unliquidated Completed Assets Formed in the Construction Contract | -251,207,303.10 |
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 | 205,475,973.45 | 1,098,774,156.49 | 1,068,386,812.83 | 235,863,317.11 |
| II. Welfare after waving of position-fixed provision scheme | 2,221,388.80 | 75,449,849.88 | 75,387,578.62 | 2,283,660.06 |
| III. Termination benefit | 2,985,525.91 | 2,985,525.91 | ||
| Total | 207,697,362.25 | 1,177,209,532.28 | 1,146,759,917.36 | 238,146,977.17 |
（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 | 158,272,400.10 | 965,100,495.48 | 953,664,721.94 | 169,708,173.64 |
| 2.Employee welfare | 54,843.85 | 37,806,600.30 | 37,724,038.16 | 137,405.99 |
| 3. Social insurance premiums | 1,209,437.58 | 38,925,976.09 | 38,618,326.35 | 1,517,087.32 |
| Including：Medical insurance | 1,043,116.93 | 33,687,308.23 | 33,593,331.33 | 1,137,093.83 |
| Work injury insurance | 66,261.87 | 2,562,329.37 | 2,384,798.52 | 243,792.72 |
| Maternity insurance | 100,058.78 | 2,676,338.49 | 2,640,196.50 | 136,200.77 |
| 4. Public reserves for housing | 986,360.29 | 28,309,758.40 | 27,377,817.94 | 1,918,300.75 |
| 5.Union funds and staff education fee | 44,804,730.41 | 23,167,792.00 | 5,776,294.23 | 62,196,228.18 |
| Other | 148,201.22 | 5,463,534.22 | 5,225,614.21 | 386,121.23 |
| Total | 205,475,973.45 | 1,098,774,156.49 | 1,068,386,812.83 | 235,863,317.11 |
（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 | 2,080,192.50 | 71,033,325.56 | 70,982,835.70 | 2,130,682.36 |
| 2.Unemployment insurance | 141,196.30 | 4,416,524.32 | 4,404,742.92 | 152,977.70 |
| Total | 2,221,388.80 | 75,449,849.88 | 75,387,578.62 | 2,283,660.06 |
Other note：Employee benefits payable has no arrears of wages.
32. Taxes payable
In RMB
| Items | Closing balance | Opening balance |
| VAT | 349,650,560.67 | 60,982,068.15 |
| Enterprise Income tax | 307,974,748.03 | 170,094,083.01 |
| Individual Income tax | 8,509,011.91 | 30,271,740.75 |
| City Construction tax | 13,922,593.39 | 7,530,509.66 |
| Land VAT | 101,545,748.03 | |
| House property tax | 10,701,618.07 | 8,631,413.12 |
| Land use tax | 1,534,812.83 | 1,802,208.59 |
| Educational surtax | 10,584,164.68 | 6,453,814.04 |
| Stamp Tax | 3,930,901.55 | 3,666,280.55 |
| Other | 8,818,967.96 | 5,547,302.09 |
| Total | 817,173,127.12 | 294,979,419.96 |
Other note:
Note: The increase in taxes payable at the end of the period compared with the beginning of the period is mainlydue 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 | 117,554,951.58 | 107,195,147.20 |
| Dividend payable | 35,000,000.00 | |
| Other account payable | 1,972,048,725.02 | 1,887,520,891.88 |
| Total | 2,089,603,676.60 | 2,029,716,039.08 |
（1）Interest payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term loans interest of installment and interest charge | 37,542,540.23 | 29,020,856.73 |
| Enterprise bond interest | 71,935,414.10 | 66,833,709.29 |
| Short term loan interest payable | 8,076,997.25 | 11,340,581.18 |
| Total | 117,554,951.58 | 107,195,147.20 |
- 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 | 35,000,000.00 | |
| Total | 35,000,000.00 |
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 | 632,884,079.05 | 475,619,957.85 |
| Project Current account | 558,426,427.62 | 575,733,577.03 |
| Deposit | 370,070,455.32 | 332,956,845.59 |
| Individual official borrowing | 95,995,501.74 | 118,851,620.51 |
| Government Subsidy | 15,000,000.00 | 15,000,000.00 |
| Social security withholding | 8,526,750.21 | 1,823,102.07 |
| Engineering fund | 55,246,500.11 | |
| Advance funds | 10,363,123.11 | 33,376,954.61 |
| Stock right fund | 266,310,044.77 | 252,444,235.97 |
| Restricted stock repurchase obligations | 4,422,320.00 | 4,422,320.00 |
| Other | 10,050,023.20 | 22,045,778.14 |
| Total | 1,972,048,725.02 | 1,887,520,891.88 |
(2) Other payables with large amount and aging of over one year
Other instructionsNote: other important payables with an aging of more than 1 year at the end of the accounting period are 527,931,897.61 yuan.The reason for not paying back or carrying forward is that the settlement conditions are not met.
34. Divided into liability held for sale35.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 | 2,523,290,150.75 | 4,196,242,686.59 |
| Long-term Account payable due within 1 year | 1,124,359,280.45 | 801,679,582.86 |
| Deferred income due within 1 year | 49,743,433.71 | 47,686,487.00 |
| Total | 3,697,392,864.91 | 5,045,608,756.45 |
36.Other current liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| USD exchange | 68,632,000.00 | 65,342,000.00 |
| For resale tax | 136,561,128.73 | 79,012,267.85 |
| Financing | 110,000,000.00 | 82,800,911.12 |
| Total | 315,193,128.73 | 227,155,178.97 |
Other note：
Notes ：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000US dollars to the Exchange Unit and repossess the RMB58,000,000.00 exchanged in November 1998, As ofDecember 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 | 450,000,000.00 | 950,000,000.00 |
| Mortgage loans | 3,013,496,417.47 | 4,096,235,604.06 |
| Guarantee loans | 1,801,383,333.28 | 4,359,733,333.30 |
| Less ：Long-term loan due 1 year | -2,523,290,150.75 | -4,196,242,686.59 |
| Total | 2,741,589,600.00 | 5,209,726,250.77 |
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 1,801,383,333.28 is both the mortgage loan and the guarantee loan, reclassifiedinto the non-current liabilities due within one year RMB 1,533,383,333.28.
Thereinto: (1) Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing provided the joint and several guarantee for thecompany's borrowings of RMB 615,000,000.00, of which RMB 615,000,000.00 was reclassified to non-currentliabilities due within one year; Tunghsu Group Co., Ltd,and Li Zhaoting provided the joint and several guarantee for thecompany's borrowings of RMB 218,833,333.28, Tunghsu Group , Li Zhaoting and Li Qing provided the joint andseveral guarantee for Company's borrowings of 299,550,000.00, of which RMB 518,383,333.28 was reclassified tonon-current liabilities due within one year; Tunghsu Group, Tunghsu Optoelectronic Investment Co., Ltd. and LiZhaoting provided the joint and several guarantee for the company's borrowings of RMB 400,000,000.00, of whichRMB 400,000,000.00 was reclassified to non-current liabilities due within one year; Tunghsu Group provided theguarantee for RMB 80,000,000.00 for Sichuan Tunghsu Fanrong Construction Development Co., Ltd., of which RMB0 was reclassified to non-current liabilities due within one yea
（2）NEG provides joint guarantee for the loan of RMB 188,000,000.00 of Fuzhou Xufu OptoelectronicTechnology Co., Ltd., the grandson company, of which the non-current liabilities reclassified and transferred intoone-year maturity shall be RMB 0.00.
Note 3: Mortgage loan RMB 3,013,496,417.47 is both a mortgage loan and a guarantee loan, and thenon-current liabilities reclassified and transferred into one-year maturity shall be RMB 989,906,817.47.
Of which: (1) The non-current liabilities reclassified and transferred into one-year maturity in the loan ofRMB 204,000,000.00 are RMB 136,000,000.00. The collateral and guarantor of the loan are: a. The 202 mustate-owned land use right and the plant after the completion of the project are mortgaged by Wuhu TunghsuOptoelectronic Technology Co., Ltd., and 2 precious metal platinum passages are provided for mortgageguarantee; 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 RMB1,125,000,000.00 are RMB 375,000,000.00. The collateral and guarantor of the loan are: a. 8 precious metalplatinum passage assets owned by Wuhu Tunghsu Optoelectronic Technology Co., Ltd. provides mortgage andguarantee; b. The Company provides joint and several liability guarantee for Wuhu Tunghsu OptoelectronicTechnology Co., Ltd., the subsidiary of the Company.
(3) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB213,726,400.00 are RMB 375,000,000.00. 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 millionunder the Project and the interest, penalty interest, compound interest, compensation, liquidated damages, damageawards and the expenses of the realized creditor's rights thereof; b. The appraisal value of the collateral of thebuildings, machinery and equipment on the ground (including 4 precious metal platinum passages) is RMB1,055,713,019.27.
(4) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB425,000,000.00 are RMB 35,000,000.00. 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 providepledge guarantee of 40 million shares.
(5) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB180,417.47 are RMB 180,417.47. The collateral and guarantor of the loan are: Zeng Jiankai shall provide jointliability guarantee and vehicle with a value of RMB 729,238.00 as collateral.
(6) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB450,000,000.00 are RMB 150,000,000.00. The collateral and guarantor of the loan are: a. Shijiazhuang Xuxin
Optoelectronic Technology Co., Ltd., the mortgagor, provides mortgage guarantee with the assets formed by themortgagable Project, including the land use right, plants and other buildings, machinery and equipment (includingthe three precious metal platinum passages), etc.; b. Tunghsu Group Co., Ltd. and the couple Li Zhaoting and LiQing provide joint guarantee.
(7) The amount reclassified and transferred into one-year maturity in the roan of RMB 330,000,000.00 isRMB 80,000,000.00. The collateral and guarantor of the loan are: a. The land use right of WK (Gong) GY 2013No. 020, WK (Gong) GY 2013 No. 021 and WK (Gong) GY 2014 No. 008 and the fixed assets after thecompletion of the project owned by Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. aremortgaged; b. The Company provides joint liability guarantee for its subsidiary Wuhu Tunghsu OptoelectronicEquipment Technology Co., Ltd.
Note 4: The pledge loan of RMB 450,000,000.00 is both a pledge loan and a guarantee loan, and thenon-current liabilities reclassified and transferred into one-year maturity shall be RMB 0.00.
Of which, the loan is RMB 450,000,000.00. The the loan pledge and the guarantor are: a. The pledge is theRMB 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 178,750,000.00 ofChengdu 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 | 952,223,306.45 | 993,310,440.39 |
| Mid-term note I | 2,986,250,396.83 | 2,981,914,109.61 |
| Mid -term note II | 1,692,345,122.04 | 1,689,901,540.52 |
| Less：Bond payable due 1 year | ||
| Total | 5,630,818,825.32 | 5,665,126,090.52 |
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetualcapital securities that classify as financial liability)
In RMB
| 15 Tunghsu bonds | 956,042,700.00 | 2015.5.19 | 5 years | 1,000,000,000.00 | 993,310,440.39 | 63,088,913.18 | 2,870,166.06 | 43,957,300.00 | 952,223,306.45 | ||
| Mid-term note I | 3,000,000,000.00 | 2016.11.17 | 5 years | 3,000,000,000.00 | 2,981,914,109.61 | 139,280,000.00 | 4,336,287.22 | 2,986,250,396.83 | |||
| Mid -term note II | 1,700,000,000.00 | 2016.12.02 | 5 years | 1,700,000,000.00 | 1,689,901,540.52 | 85,000,000.00 | 2,443,581.52 | 1,692,345,122.04 |
| Total | -- | -- | -- | 5,700,000,000.00 | 5,665,126,090.52 | 287,368,913.18 | 9,650,034.80 | 43,957,300.00 | 5,630,818,825.32 |
(3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilitiesThe 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 43,957,300.00, 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 | 2,644,309,592.95 | 3,276,308,254.44 |
| Total | 2,644,309,592.95 | 3,276,308,254.44 |
(1) Long-term payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term payable | 4,441,492,662.34 | 4,935,555,693.56 |
| Less：Unconfirmed financing costs | 672,823,788.94 | 857,567,856.26 |
| Less：Port due Within 1 year | 1,124,359,280.45 | 801,679,582.86 |
Other note
Note: Tunghsu Group Co., Ltd. provides a guarantee of RMB 1,047,092,103.61 for financial lease, TunghsuGroup Co., Ltd. and Li Zhaoting provide a guarantee of RMB 732,372,469.64 for financial lease, and TunghsuGroup Co., Ltd., Li Zhaoting and Li Qing provide a guarantee of RMB 208,000,000.00 for financial lease; YangJianzhong, Hong Shuping, You Shaoguo, Li Yan, Hu Yongsheng and Li Jun provide a guarantee of RMB123,276,502.66 for the financial lease; The Company and Li Zhaoting provide a guarantee of RMB11,0316,039.24 for financial lease; Subsidiaries of the Company provide RMB 71,830,000.00 as security depositpledge for financing lease; The production lines and machinery and equipment of the subsidiaries of the Companyprovide a mortgage of RMB 2,148,605,547.19 for financing lease.40. Long-term employee salary payable41. Estimates liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin | Rreason |
| Lispendens | 20,944,899.84 | 38,543,627.93 | |
| Product guarantee | 78,820,850.20 | 117,878,085.38 | |
| Total | 99,765,750.04 | 156,421,713.31 | -- |
42.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Govemment Subsidy | 601,213,644.42 | 143,338,833.67 | 46,218,458.32 | 698,334,019.77 | |
| Less ：Government subsidies due within one year | -36,478,840.45 | -2,056,946.72 | -38,535,787.17 | ||
| Not realized after sale rental return | 38,763,460.00 | 16,348,166.82 | 27,555,813.56 | 27,555,813.26 | |
| Less：Unrealized customer service due within 1 year rent to profit or loss | -11,207,646.55 | -11,207,646.55 | |||
| Total | 592,290,617.42 | 157,630,053.77 | 73,774,271.88 | 676,146,399.31 | -- |
Details of government subsidies
In RMB
| Items | Beginning of term | New subsidy in current period | Amount transferred to non-operational income | Other income recorded in the current period | Amount of cost deducted in the current period | Other changes | End of term | Asset-relatedorincome-related |
| Grant of Government Infrastructure（Land refund） | 25,438,800.00 | 2,244,600.00 | 23,194,200.00 | Related to assets | ||||
| Grant of Industry Revitalizatio n and Technology Reconstructio n Project | 2,644,444.61 | 233,333.28 | 2,411,111.33 | Related to assets | ||||
| Technical reconstructio | 2,666,666.65 | 266,666.68 | 2,399,999.97 | Related to assets |
| n | ||||||||
| Grant of Glass Substrate Project | 9,999,999.94 | 1,000,000.00 | 8,999,999.94 | Related to assets | ||||
| Industry Development Fund | 4,666,666.65 | 466,666.68 | 4,199,999.97 | Related to assets | ||||
| Project finance discount | 313,333.37 | 31,333.32 | 282,000.05 | Related to assets | ||||
| Grant of Industry Revitalizatio n and Technology Reconstruction n Project | 71,668,666.71 | 6,515,333.32 | 65,153,333.39 | Related to assets | ||||
| 2013 Provincial strategic emerging industries of special grant funds | 4,250,000.04 | 333,333.32 | 3,916,666.72 | Related to assets | ||||
| Technology reconstruction on Special funds | 28,822,333.32 | 2,156,000.00 | 26,666,333.32 | Related to assets | ||||
| Investment and Subsidies of “Double Hundred Plan” Project granted by the People's Government of Henan Province | 1,783,333.33 | 200,000.00 | 1,583,333.33 | Related to assets | ||||
| TFT glass substrate technology | 89,166.77 | 10,000.00 | 79,166.77 | Related to assets |
| R& D fund | ||||||||
| TFT glass substrate project Subsidy | 5,944,444.43 | 666,666.67 | 5,277,777.76 | Related to assets | ||||
| Investment and Subsidies within Budget for Technological Transformation Project by National Development and Reform Commission and the Ministry of Industry and Information Technology | 8,322,222.23 | 933,333.33 | 7,388,888.90 | Related to assets | ||||
| TFT glass substrate project Subsidy | 11,888,888.91 | 1,333,333.33 | 10,555,555.58 | Related to assets | ||||
| Subsidy Major Scientific and Technical Projects by Finance Bureau of Zhengzhou City | 594,444.43 | 66,666.67 | 527,777.76 | Related to assets | ||||
| Financial Supports for National Key Industry and Technical Transformation on Projects | 8,322,222.23 | 933,333.33 | 7,388,888.90 | Related to assets |
| Granted by the Municipal Finance Bureau | ||||||||
| Economic and Technological Development Zone Finance Bureau Industrial Development Support Fund | 4,161,111.10 | 466,666.67 | 3,694,444.43 | Related to assets | ||||
| Funds for Independent Innovation of Provincially Supported Enterprises | 3,566,666.71 | 400,000.00 | 3,166,666.71 | Related to assets | ||||
| Supporting Funds on Finance Discounts | 1,188,888.91 | 133,333.33 | 1,055,555.58 | Related to assets | ||||
| Funds for Education, Science and Culture Granted by the Finance Bureau | 891,666.71 | 100,000.00 | 791,666.71 | Related to assets | ||||
| Supporting Funds for Industrial Structure -adjusting Projects Granted by the Regional Finance Bureau | 1,742,222.16 | 186,666.67 | 1,555,555.49 | Related to assets | ||||
| Industry | 1,004,444.42 | 106,666.67 | 897,777.75 | Related to |
| discount and expenses | assets | |||||||
| Financial discount | 3,194,444.50 | 333,333.33 | 2,861,111.17 | Related to assets | ||||
| Industrial restructuring project financial funds | 3,493,333.29 | 320,000.00 | 3,173,333.29 | Related to assets | ||||
| Special Funds for High-end Information Industry Chain Granted by the Finance Bureau of the Economic and Technological l Development Zone | 3,861,111.09 | 333,333.33 | 3,527,777.76 | Related to assets | ||||
| 2015 project equipment investment subsidies | 29,981,766.60 | 2,291,600.16 | 27,690,166.44 | Related to assets | ||||
| Zhengzhou City Finance Bureau in 2011 and 2012 has been the acceptance of the provincial industrial structure adjustment project the second batch of funds | 2,412,222.08 | 173,333.39 | 2,238,888.69 | Related to assets | ||||
| Project subsidy of | 1,760,000.00 | 1,760,000.00 | Related to assets |
| Chongqing Liangjiang New Area Finance Bureau | ||||||||
| Equipment subsidy of Chongqing Liangjiang New Area Finance Bureau | 880,000.00 | 880,000.00 | Related to assets | |||||
| Investment in the Central Budget of Strategic emerging Industries | 25,500,000.00 | 2,000,000.00 | 23,500,000.00 | Related to assets | ||||
| The high-tech zone appropriates baseboard projects | 5,866,666.65 | 426,666.68 | 5,439,999.97 | Related to assets | ||||
| Production line award fund | 19,241,899.37 | 1,506,943.40 | 17,734,955.97 | Related to assets | ||||
| Special fund for the transformation of scientific and technological achievements in 2015 | 6,158,080.51 | 635,162.01 | 5,522,918.50 | Related to assets | ||||
| G8.5tft-lcd glass substrate manufacturing precision intelligent digital workshop | 45,000,000.00 | 3,000,000.00 | 42,000,000.00 | Related to assets |
| construction project | ||||||||
| Investment in the Central Budget of Strategic emerging Industries | 3,933,333.41 | 799,999.92 | 3,133,333.49 | Related to assets | ||||
| 2011Key technical transformation project funds | 491,666.70 | 99,999.96 | 391,666.74 | Related to assets | ||||
| 2011Strategic emerging industry development funds | 565,416.70 | 114,999.96 | 450,416.74 | Related to assets | ||||
| 2012Electronic Information Industry Development Assistance Project | 983,333.30 | 200,000.04 | 783,333.26 | Related to assets | ||||
| Subsidies from the Bureau of Finance of the Economic and technological Development Zone | 9,399,999.99 | 800,000.02 | 8,599,999.97 | Related to assets | ||||
| 2013Strategic emerging industry funds | 392,777.78 | 33,333.34 | 359,444.44 | Related to assets | ||||
| Mianyang Municipal Bureau of Finance | 236,666.66 | 20,000.02 | 216,666.64 | Related to assets |
| Special funds | ||||||||
| Glass substrate finishing production Transformation Project | 548,333.33 | 46,666.67 | 501,666.66 | Related to assets | ||||
| Special fund subsidy for industrial development of municipal financial bureau | 433,888.86 | 36,666.69 | 397,222.17 | Related to assets | ||||
| 2013 fund of strategic new industry | 3,944,444.44 | 333,333.34 | 3,611,111.10 | Related to assets | ||||
| Sichuan Province Industrial Transformation and upgrading Project 2015 | 18,608,333.35 | 1,449,999.98 | 17,158,333.37 | Related to assets | ||||
| Special funds for Industrial Development in 2016 | 39,852,753.54 | 3,202,185.31 | 36,650,568.23 | Related to assets | ||||
| Technical Reformation of key Green Technology for Glass substrate（840） | 8,400,000.00 | 140,000.00 | 8,260,000.00 | Related to assets | ||||
| Intelligent manufacturing pilot demonstration project subsidy fund（100） | 1,000,000.00 | 66,666.67 | 933,333.33 | Related to assets |
| Group transfer subsidy (National key R & D Program, key basic Materials Technology Promotion and industrialization Project, 2016) | 915,400.00 | 915,400.00 | Related to assets | |||||
| Intelligent Manufacturing New Mode Engineering Project | 3,990,000.00 | 3,990,000.00 | Related to assets | |||||
| Annual production of 10 million square meters high aluminum ultra-thin display panel glass items | 4,700,000.00 | 4,700,000.00 | Related to assets | |||||
| 2017 funds for technological Transformation of Electronic Information Industry | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Subsidy fund for technical transformation of industrial enterprises in Fuzhou | 2,580,000.00 | 172,000.00 | 2,408,000.00 | Related to assets |
| Technical Transformation of Industrial Enterprises in Fuzhou and supporting subsidy funds in Fuqing City | 1,290,000.00 | 86,000.00 | 1,204,000.00 | Related to assets | ||||
| 2018 Industrial Internet Innovation Development Project and Intelligent Manufacturing Integrated Standardization and New Model Application Project Subsidy | 45,000,000.00 | 1,300,578.03 | 43,699,421.97 | 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 | 13,417,100.00 | 894,473.18 | 12,522,626.82 | Related to assets |
| Glass substrate production line transformation special funds | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Tunghsu group limited transfer to project five funds | 150,400.00 | 150,400.00 | Related to assets | |||||
| China National Building Material International Engineering Group Co., Ltd. transferred funds for 11-625 projects | 496,000.00 | 496,000.00 | Related to assets | |||||
| Bengbu Glass Industry Design and Research Institute Co., Ltd., China Building Materials Co., Ltd., transferred to indirect funds (subject 4) | 521,000.00 | 521,000.00 | Related to assets | |||||
| Factory building construction award 877,500 | 854,475.22 | 30,699.72 | 823,775.50 | Related to assets |
| Qualification acquisition and factory rental subsidy | 45,653,100.00 | 45,653,100.00 | Related to assets | |||||
| Special fund for automobile development | 114,399.00 | 1,800,000.00 | 1,914,399.00 | Related to assets | ||||
| Project subsidy from the Bureau of Finance of the Economic Development Zone | 6,966,547.39 | 588,957.03 | 6,377,590.36 | Related to assets | ||||
| National key R & D Program key basic Materials Technical Project subsidy | 2,280,000.00 | 2,280,000.00 | Related to assets | |||||
| Financial subsidy for the major scientific and technological achievements transformation project of "High Aluminium cover Glass complete Technology" | 1,000,000.00 | 1,000,000.00 | Related to assets | |||||
| 2017 Special Fund for Industrial Development in Economic Development | 5,000,000.00 | 289,855.07 | 4,710,144.93 | Related to assets |
| Zone | ||||||||
| Intelligent factory construction and application of key materials and components for curved display | 9,350,000.00 | 9,350,000.00 | Related to assets | |||||
| Key new product projects | 160,000.04 | 39,999.96 | 120,000.08 | Related to assets | ||||
| Financial allocation for Strategic emerging Industries in Sichuan Provinc | 3,366,000.00 | 306,000.00 | 3,060,000.00 | Related to assets | ||||
| Technical revamping items of 300,000 production Line of Pole-less Lights Ballast | 644,999.92 | 86,000.04 | 558,999.88 | Related to assets | ||||
| Intelligent Engineering Laboratory of High efficiency Lighting system | 1,783,333.29 | 200,000.04 | 1,583,333.25 | Related to assets | ||||
| District level technical reform project subsidy 150 | 0.00 | 1,500,000.00 | 1,500,000.00 | Related to assets | ||||
| The subsidy | 1,892,899.93 | 5,860.37 | 1,887,039.56 | Related to |
| for the construction of the factory building is 1,892,900 yuan | assets | |||||||
| Glass substrate project subsidy fund | 86,971,803.66 | 1,316,392.68 | 85,655,410.98 | Related to assets | ||||
| Research and development project funds 159 | 2,226,000.00 | 2,226,000.00 | Related d to income | |||||
| 2017 loan discount 4.871 million | 1,127,484.71 | 1,127,484.71 | Related d to income | |||||
| Science and education support fund | 1,787,595.41 | 500,000.00 | 2,287,595.41 | Related d to income | ||||
| Subsidy for post stabilization | 0.00 | 2,833.74 | 2,833.74 | Related d to income | ||||
| Special funds for scientific research 40 | 400,000.00 | 400,000.00 | Related d to income |
43.Other Non-current liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| CDB financing | 500,000,000.00 | |
| Yingkou coastal financing | 108,000,000.00 | 108,000,000.00 |
| Total | 108,000,000.00 | 608,000,000.00 |
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., YingkouCoastal 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
to be fulfilled by Tunghsu Group, with the repurchase no more than RMB 108 million of investment principal ofYingkou Coastal Development and Construction Group Co., Ltd. and the compensation obligation correspondingto 1.2%/year investment income involved in total. before June 2024, the equity of Tunghsu Yingkoucorresponding to the registered capital of RMB 108 million will be transferred to the Company after the paymentof 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. andChina 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 50,000.00 million andenjoyed 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 BankDevelopment 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 | 5,730,250,118.00 | 5,730,250,118.00 | |||||
45. Other equity instruments46. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 21,947,720,231.34 | 4,475,242.57 | 197,484,455.39 | 21,754,711,018.52 |
| Other capital reserves | 31,522,375.26 | 31,522,375.26 | ||
| Total | 21,979,242,606.60 | 4,475,242.57 | 197,484,455.39 | 21,786,233,393.78 |
Other exlanation, including changes and reasons for changes：
Changes in capital reserve: The merger of Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. under the samecontrol in the current period results in a decrease of RMB 195,525,500.00 in capital reserve; the non-proportionalcapital increase to Tunghsu (Kunshan) Display Material Co., Ltd. in the current period results in a decrease ofRMB558,955.39 in capital reserve; the non-proportional capital increase to Chenzhou Xuhong TransportationConstruction Co., Ltd., the grandson company, in the current period results in an increase of RMB 1,881,000.00 incapital reserve; the non-proportional capital increase to Shenzhen Xinyingtong Technology Co., Ltd., the grandsoncompany, in the current period results in a decrease of RMB 1,400,000.00 in capital reserve; the non-proportionalcapital increase to Beijing Xujiang Technology Co., Ltd., the grandson company, in the current period results in an
increase of RMB 1,002,082.92 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 1,592,159.65 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 | 4,422,320.00 | 4,422,320.00 | ||
| Total | 4,422,320.00 | 4,422,320.00 |
48. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | ||||
| Amount for the period before income tax | Less：Previously recognized in profit or loss in other comprehensive income | Less：Income tax | After - tax attributable to the parent company | After - tax attributable to minority shareholders | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | -4,518.45 | -42,240.07 | -24,657.35 | -17,582.72 | -29,175.80 | ||
| Balance form the translation of foreign currency financial statements | -4,518.45 | -42,240.07 | -24,657.35 | -17,582.72 | -29,175.80 | ||
| Total of Other comprehensive income | -4,518.45 | -42,240.07 | -24,657.35 | -17,582.72 | -29,175.80 | ||
49. Special reserves
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Safety production cost | 1,983,921.21 | 38,527,044.56 | 27,896,634.42 | 12,614,331.35 |
| Total | 1,983,921.21 | 38,527,044.56 | 27,896,634.42 | 12,614,331.35 |
50. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 224,133,824.86 | 21,373,195.09 | 245,507,019.95 | |
| Total | 224,133,824.86 | 21,373,195.09 | 245,507,019.95 |
51. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | 3,009,860,755.82 | 1,823,695,278.31 |
| Total adjustment of retained earnings at the beginning of the year | -155,097,190.92 | |
| Retained earnings after adjustments at the year end | 3,009,860,755.82 | 1,668,598,087.39 |
| Add: Net profit attributable to owners of the Company for the period | 2,163,607,505.39 | 1,730,174,564.57 |
| Less: Appropriation to statutory surplus reserve | 21,373,195.09 | 36,089,754.38 |
| Common stock dividend payable | 401,117,508.26 | 352,822,141.76 |
| Retained earnings at the year end | 4,750,977,557.86 | 3,009,860,755.82 |
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 affectedbeginning 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 profitsare RMB -155,097,190.92(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 | 27,532,911,433.28 | 22,666,699,476.31 | 17,245,606,616.24 | 13,644,514,366.81 |
| Other business | 678,788,587.84 | 537,379,316.07 | 31,362,422.79 | 29,973,279.43 |
| Total | 28,211,700,021.12 | 23,204,078,792.38 | 17,276,969,039.03 | 13,674,487,646.24 |
53. Business tax and subjoin
In RMB
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 33,810,482.30 | 25,979,433.14 |
| Education surcharge | 23,159,424.99 | 17,674,597.83 |
| Property tax | 16,876,028.18 | 12,698,590.04 |
| Land use tax | 21,346,497.10 | 21,300,624.63 |
| vehicle and vessel usage tax | 132,583.31 | 32,274.84 |
| Stamp tax | 13,856,742.20 | 12,325,654.26 |
| Land VAT | 124,554,237.34 | |
| Other | 3,747,803.74 | 4,059,111.33 |
| Total | 237,483,799.16 | 94,070,286.07 |
Other note：
54.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage and welfare insurance | 92,273,371.89 | 58,561,217.08 |
| Shipment | 90,294,560.21 | 63,453,918.97 |
| Travel | 20,406,607.49 | 8,645,322.33 |
| Business expenses | 25,334,960.74 | 8,067,708.92 |
| Quality inspection certification fee | 355,243.12 | 400,656.64 |
| Consultancy services | 23,399,717.86 | 10,178,128.46 |
| car expenses | 22,148,062.40 | 6,054,493.14 |
| Low value consumables and repairs | 4,482,483.49 | 970,196.52 |
| Office fee | 5,349,463.64 | 4,311,147.89 |
| Depreciation | 1,264,353.73 | 837,982.02 |
| Advertising | 10,333,401.71 | 6,800,911.81 |
| Product sales guarantee fee | 32,639,764.21 | 27,469,125.70 |
| Other | 6,194,311.02 | 13,409,374.25 |
| Total | 334,476,301.51 | 209,160,183.73 |
55. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage and additional cost | 288,091,860.23 | 180,518,516.88 |
| Business expenses | 16,030,918.90 | 6,808,507.59 |
| Labor protect fee | 2,722,389.79 | 1,944,101.86 |
| Office fees | 25,841,772.52 | 25,043,067.11 |
| Travel fees | 17,009,388.53 | 9,719,098.91 |
| Publicize Fees | 8,345,441.30 | 7,383,473.36 |
| Miscellaneous charges | 8,035,086.41 | 1,946,988.14 |
| Depreciation accumulative | 144,145,302.18 | 62,962,111.58 |
| Low value consumables and repair costs | 24,488,949.88 | 10,288,171.00 |
| Consultation fees | 53,847,915.52 | 51,079,357.72 |
| Miscellaneous charges | 45,502,177.92 | 26,010,092.75 |
| Equity incentive cost | -3,685,060.00 | |
| Other | 19,418,074.40 | 13,106,583.04 |
| Total | 653,479,277.58 | 393,125,009.94 |
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 | 204,666,344.41 | 84,414,093.62 |
| Material expenses | 220,667,309.89 | 109,611,282.99 |
| Test inspection fee | 86,313,301.06 | 28,773,748.12 |
| Hydropower and gas charge | 14,396,778.76 | 13,647,405.72 |
| Depreciation expenses | 23,882,733.08 | 12,320,763.99 |
| Amortization of Intangible assets | 4,322,047.03 | 1,256,897.08 |
| Other | 17,841,120.07 | 6,967,364.39 |
| Total | 572,089,634.30 | 256,991,555.91 |
57. Financial expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 1,204,287,050.60 | 1,142,316,421.06 |
| Less：Interest income | 506,083,846.24 | 442,489,241.64 |
| Exchange gains and losses | -23,199,230.78 | 18,458,150.08 |
| Commission charge | 21,943,537.39 | 5,619,616.01 |
| Note discount rate | 7,137,552.53 | 14,514,160.04 |
| Financing | 18,000,000.00 | 14,509,424.87 |
| Other | 610,110.16 | 1,048,970.03 |
| Total | 722,695,173.66 | 753,977,500.45 |
58. Asset impairment loss
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Bad debt loss | 54,879,882.12 | 45,785,385.37 |
| II. Losses for falling price of inventory | 28,437,407.36 | 9,198,134.09 |
| XIII.Goodwill impairment loss | 10,163,443.61 | |
| Total | 93,480,733.09 | 54,983,519.46 |
Other noteNote: The increase in 2018 compared with 2017 is mainly due to the increase in inventory depreciation loss andgoodwill impairment loss.59.Other gains
In RMB
| Items | Amount of this period | Amount of last period |
| Government subsidy | 250,713,869.96 | 352,095,131.45 |
| Personal income tax fee | 590,083.12 | |
| Total | 251,303,953.08 | 352,095,131.45 |
60. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 64,366,051.65 | 4,663,254.00 |
| Disposal of investment income from long-term equity investments | 1,935,149.59 | |
| Financing income | 14,623,990.55 | 59,041,599.98 |
| Total | 80,925,191.79 | 63,704,853.98 |
Other note
Investment income from disposal of long-term equity investment: The investment income generated by thedisposal of Xuyou Electronic Material Technology (Wuxi) Co., Ltd., a subsidiary is RMB 3,182,206.12. Theinvestment income generated by the current liquidation of the partnership of Tunghsu (Deyang) GrapheneIndustrial Development Fund, the joint venture, is RMB -1,195,383.73. The investment income generated afterthe grandson disposes of the current liquidation of Tunghsu Technology Co., Ltd. is RMB -51,672.80.61. Fair value change income62. Assets disposal income
In RMB
| Source | Amount of current period | Amount of previous period |
| Non-current assets disposal gains and losses | 1,515,607.51 | |
| Including：Income from disposal of fixed assets | 1,515,607.51 | |
| Total | 1,515,607.51 |
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 | 203,256.52 | 1,646,890.81 | 203,256.52 |
| Unpayable amount | 1,100,000.00 | 1,100,000.00 | |
| Net fine income | 200,053.96 | 200,053.96 | |
| Insurance premium | 10,799,394.15 | 10,799,394.15 | |
| Other | 6,760,566.13 | 1,922,171.57 | 6,760,566.13 |
| Total | 19,063,270.76 | 3,569,062.38 | 19,063,270.76 |
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-related/income –related |
| Housing | Finance | Subsidy | Grants | No | No | 1,546,890.81 | Related to |
| 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 | 100,000.00 | Related to income | |
| Research funds | China Building Materials Design Institute | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | No | No | 153,262.52 | 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 | 29,994.00 | Related to income |
| 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 | 20,000.00 | Related to income | |
| Total | 203,256.52 | 1,646,890.81 |
64.Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Donation expense | 2,764,006.00 | 695,000.00 | 2,764,006.00 |
| Penalty | 2,526,929.14 | 753,616.36 | 2,526,929.14 |
| Non current assets disposal loss | 1,660,746.89 | 65,061.78 | 1,660,746.89 |
| Other | 1,941,022.97 | 895,094.66 | 1,941,022.97 |
| Total | 8,892,705.00 | 2,408,772.80 | 8,892,705.00 |
65. Income tax
(1) Details of income tax
In RMB
| Items | Amount of current period | Amount of previous period |
| Current Income tax | 486,169,741.93 | 419,418,513.13 |
| Deferred income tax | -17,166,200.53 | -83,183,922.77 |
| Total | 469,003,541.40 | 336,234,590.36 |
（2）Accounting profit and tax expense adjustment process
InRMB
| Items | Amount of current period |
| Total profit | 2,737,831,627.58 |
| Income tax expense at statutory / applicable tax rates | 410,674,744.19 |
| Effect of different tax rates applicable to subsidiaries | 53,321,675.38 |
| Effect of non-taxable income | -5,732,239.03 |
| The influence of R & D expenses deduction | -14,980,132.99 |
| Effect of non-taxable income | 24,827,760.53 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -320,369.80 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 17,547,779.09 |
| Tax preferences | -41,462,810.37 |
| Changes in tax rate resulting in changes in the balance of deferred income tax assets/liabilities at the beginning of the period | 25,127,134.40 |
| Income tax expense | 469,003,541.40 |
66 .Other comprehensive incomeRefer 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 | 72,580,223.31 | 140,642,106.05 |
| Government subsidy | 285,674,986.53 | 182,198,655.37 |
| Deposits income | 341,556,036.47 | 898,714,597.84 |
| Advances fund | 95,881,327.96 | 128,508,839.16 |
| Withholding VAT refund | 244,105,762.29 |
| Personal official loans | 49,113,531.62 | 42,487,900.06 |
| Collection of funds | 12,042,902.50 | |
| Insurance claims | 9,121,325.00 | |
| Other | 2,674,019.34 | 1,232,168.84 |
| Total | 1,112,750,115.02 | 1,393,784,267.32 |
(2)Other cash paid related to operation activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Donation expenses | 3,003,932.05 | 164,100.97 |
| Petty cash | 37,390,022.00 | 39,765,728.35 |
| Deposit | 384,336,174.24 | 1,032,128,416.85 |
| Period expenses paid in cash | 572,602,133.37 | 365,453,243.31 |
| Total | 997,332,261.66 | 1,437,511,489.48 |
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Investment | 200,000,000.00 | 50,000,000.00 |
| Cash and cash equivalents of the subsidiary on the date of acquisition after deducting the monetary investments paid for the acquisition | 51,681,062.80 | |
| Fixed deposit | 1,402,500,000.00 | |
| Current account | 463,061,030.00 | 9,004,080.00 |
| Total | 2,065,561,030.00 | 110,685,142.80 |
（4）Other Cash payable related to investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Short-term Financing | 113,658,549.30 | 9,940,000,000.00 |
| Fixed deposit | 3,751,750,000.00 | 1,352,500,000.00 |
| Investment | 200,000,000.00 | 50,000,000.00 |
| Current account | 449,402,614.89 | 29,503,800.00 |
| Total | 4,514,811,164.19 | 11,372,003,800.00 |
（5）Other cash received in relation to financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest income | 426,148,446.55 | 252,390,350.30 |
| Finance lease | 533,750,000.00 | 2,502,800,000.00 |
| Factoring financing | 27,199,088.88 | 100,000,000.00 |
| Fixed deposit | 157,000,000.00 | |
| Current account | 481,240,420.45 | 3,224,325,632.86 |
| Total | 1,625,337,955.88 | 6,079,515,983.16 |
（6）Other Cash payable related to Financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Bank charges | 37,017,570.05 | 39,217,775.67 |
| Finance lease deposit | 47,666,666.66 | |
| Factoring financing | 17,199,088.88 | |
| Finance lease | 984,205,977.49 | 693,258,375.43 |
| Acquisition of minority equity payments | 571,040,000.00 | |
| Sunlong No private funds | 31,979,671.29 | |
| Current account | 856,657,166.48 | 2,476,041,407.56 |
| Total | 2,448,920,714.02 | 3,305,362,985.49 |
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 | 2,268,828,086.18 | 1,920,899,021.88 |
| Add: Impairment loss provision of assets | 93,480,733.09 | 54,983,519.46 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 858,753,519.46 | 1,003,010,229.32 |
| Amortization of intangible assets | 88,543,387.92 | 29,493,603.50 |
| Amortization of long-term deferred expenses | 8,479,266.12 | 10,640,874.16 |
| Loss on disposals of fixed assets, intangible assets and other long-term assets ("-" for gains) | -1,515,607.51 | |
| Loss on write-off of fixed assets | 1,660,746.89 | 65,061.78 |
| Financial cost | 823,755,233.08 | 882,333,791.42 |
| Investment losses | -80,925,191.79 | -63,704,853.98 |
| Decrease in deferred income tax assets | -6,306,027.61 | -81,706,028.32 |
| Increased in deferred income tax liabilities | -10,860,172.92 | -1,477,894.45 |
| Decrease in inventories | 799,334,364.53 | -701,656,101.00 |
| Decease in operating receivables | -10,076,576,343.39 | -2,798,458,529.59 |
| Increase in operating payables | 5,621,600,010.47 | 998,755,817.13 |
| Cash flows from operating activities | 388,252,004.52 | 1,253,178,511.31 |
| 2.Significant investment and financing activities not affecting cash flows | -- | -- |
| Fixed assets acquired under financial leasing | 525,209,012.42 | 3,234,833,741.02 |
| 3．Changes in cash and cash equivalents： | -- | -- |
| Ending balance of cash | 14,916,637,291.04 | 25,114,660,756.25 |
| Less: Beginning balance of cash | 25,114,660,756.25 | 25,538,252,528.80 |
| Net increase of cash and cash equivalents | -10,198,023,465.21 | -423,591,772.55 |
(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 | 313,924,083.50 |
| Including： | -- |
| Shenzhen Sanbao Innovation Intelligence Co., Ltd. | 33,598,587.50 |
| Zhongcheng National construction co., Ltd. | 39,999,996.00 |
| Huaxi Nanchong Automobile Co., Ltd. | 44,800,000.00 |
| Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. | 195,525,500.00 |
| Less：Cash or Cash Equivalent Owned by Subsidiary on the Purchasing Date | 4,930,677.33 |
| Including： | -- |
| Shenzhen Sanbao Innovation Intelligence Co., Ltd. | 3,075,645.81 |
| Zhongcheng National construction co., Ltd. | 1,854,947.92 |
| 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 | 83,689,833.67 |
| Including： | -- |
| Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. | 17,670,558.47 |
| Jiangsu Tengda Optics Technology Co., Ltd. | 20,019,275.20 |
| Changzhou Hongsheng Public Transportation Construction Development Co., Ltd. | 8,000,000.00 |
| Guangxi Sunlong Automobile Co., Ltd. | 38,000,000.00 |
| Obtain the net cash paid by the subsidiary | 392,683,239.84 |
(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 | 550,103,761.40 |
| Including： | -- |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 550,000,000.00 |
| Tunghsu Technology Co., Ltd. | 103,761.40 |
| Less：Cash and cash equivalents held by a controlling subsidiary | 157,924,147.90 |
| Including： | -- |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 157,924,147.90 |
| Tunghsu Technology Co., Ltd. | |
| Including： | -- |
| Net cash received from disposal subsidiaries | 392,179,613.50 |
（4）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-beginning |
| I. Cash | 14,916,637,291.04 | 25,114,660,756.25 |
| Including: cash in treasury | 2,593,055.78 | 2,461,658.94 |
| Bank savings could be used at any time | 14,914,044,235.26 | 24,971,467,452.68 |
| Other monetary capital could be used at any time | 140,731,644.63 | |
| III. Balance of cash and cash equivalents at the period end | 14,916,637,291.04 | 25,114,660,756.25 |
69. Note of statement of changes in the owner's equityExplain "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 | 4,890,457,106.12 | Mainly term deposits and deposits |
| Inventory | 317,769,074.78 | Mortgage loans |
| Fixed assets | 9,130,840,228.68 | Set up the mortgage and the fixed assets of the financial lease |
| Intangible assets | 352,121,698.93 | Pledge loans |
| Construction in progress | 3,143,663,638.12 | Pledge loans |
| Investment property | 678,833,230.08 | Pledge loans |
| Account receivable | 455,136,717.34 | Factoring financing |
| Total | 18,968,821,694.05 | -- |
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 | 6,526,979.25 | 6.8632 | 44,795,960.10 |
| Euro | 6,016.60 | 7.8473 | 47,214.06 |
| HKD | 10,379.45 | 0.8762 | 9,094.97 |
| JPY | 563,299,791.60 | 0.0619 | 34,860,934.19 |
| Account receivable | -- | -- | |
| Including：USD | 53,519,866.68 | 6.8632 | 367,317,549.01 |
| Euro | 1,490.00 | 7.8473 | 11,692.48 |
| HKD | 23,697,714.31 | 0.8762 | 20,763,937.29 |
| JPY | 981,801,683.00 | 0.0619 | 60,760,760.76 |
| Long-term loans | -- | -- | |
| Including：USD | 5,000,000.00 | 6.8632 | 34,316,000.00 |
| Euro | |||
| HKD | |||
| Notes payable | |||
| Including：USD | 5,015,000.00 | 6.8632 | 34,418,948.00 |
| Interest payable | |||
| Including：USD | 170,737.09 | 6.86 | 1,171,802.79 |
| Short-term loans | |||
| Including：USD | 8,407,370.00 | 6.8632 | 57,701,461.78 |
| Account payable | |||
| Including：USD | 75,451,654.63 | 6.8632 | 517,839,796.09 |
| Euro | 2,680,492.77 | 7.8473 | 21,034,630.92 |
| HKD | 28,442,325.26 | 0.8762 | 24,921,165.40 |
| JPY | 234,698,455.00 | 0.0619 | 14,521,991.37 |
| GBP | 1,230,210.14 | 8.6762 | 10,673,549.18 |
(2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosedabout its principal business place, function currency for bookkeeping and basis for the choice. In case of anychange in function currency, the cause should be disclosed.□ Applicable √ Not applicable72. HedgingDisclosure of hedging items and related hedging instruments, qualitative and quantitative information on hedgedrisks in accordance with the hedging category:
73.Govemment subsidy1）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 | 1,760,000.00 | Deferred income |
| Bureau | |||
| Equipment subsidy of Chongqing Liangjiang New Area Finance Bureau | 880,000.00 | Deferred income | |
| Project subsidy for industrial internet innovation development project and integrated standardization and new mode application of intelligent manufacturing in 2018 | 45,000,000.00 | Deferred income | |
| Special fund for glass substrate production line transformation | 30,000,000.00 | Deferred income | |
| Subsidy for qualification acquisition and plant rental | 45,653,100.00 | Deferred income | |
| Special fund for automobile development | 1,800,000.00 | Deferred income | |
| Special fund for industrial development in Economic Development Zone in 2017 | 5,000,000.00 | Deferred income | |
| Intelligent factory construction and application project of key materials and components for curved display | 9,350,000.00 | Deferred income | |
| Subsidy for district-level technical transformation projects150 | 1,500,000.00 | Deferred income | |
| Subsidy for plant construction: RMB 1,892,900 | 1,892,899.93 | Deferred income | |
| Science and education support fund | 500,000.00 | Deferred income | |
| Subsidy for post stabilization | 2,833.74 | Deferred income | |
| Special fund for scientific and technological achievement transformation in 2015 | 635,162.01 | Other income | 635,162.01 |
| 1.9 Receive Jinshan Talent subsidy fund | 500,000.00 | Other income | 500,000.00 |
| 3.12 CCB receives the science and technology innovation award of the Science and | 100,000.00 | Other income | 100,000.00 |
| Technology Bureau | |||
| 3.1 Receive the award for promoting industrial towns in 2017 | 80,000.00 | Other income | 80,000.00 |
| 3.16 CCB receives the first batch of patent funds from the Science and Technology Bureau in 2018 | 15,000.00 | Other income | 15,000.00 |
| 2017 provincial intellectual property management system performance evaluation award | 10,000.00 | Other income | 10,000.00 |
| 4.8 CCB receives the incentive funds for outsourcing implementation from the Finance Bureau | 50,000.00 | Other income | 50,000.00 |
| 5.31 CCB receives the reward funds for the implementation of the enterprise standards | 10,000.00 | Other income | 10,000.00 |
| The second batch of patent special funds in 2018 | 6,000.00 | Other income | 6,000.00 |
| 5.31 CCB receives reward funds for academician workstation | 100,000.00 | Other income | 100,000.00 |
| Subsidy for "Double-hundred Plans" project investment of Henan Provincial People's Government | 200,000.00 | Other income | 200,000.00 |
| Budget for complete set of technology research and development of TFT glass substrate | 10,000.00 | Other income | 10,000.00 |
| Subsidy for TFT glass substrate project | 666,666.67 | Other income | 666,666.67 |
| Subsidy for technology transformation project investment within budget of National Development and Reform Commission and Ministry of Industry and Information Technology | 933,333.33 | Other income | 933,333.33 |
| Subsidy for TFT glass substrate | 1,333,333.33 | Other income | 1,333,333.33 |
| project. | |||
| Special fund for major science and technology of Zhengzhou Municipal Finance Bureau | 66,666.67 | Other income | 66,666.67 |
| Fund for national key industries and technical transformation project support of Municipal Finance Bureau | 933,333.33 | Other income | 933,333.33 |
| Fund for industrial development support of Economic and Technological Development Zone Finance Bureau | 466,666.67 | Other income | 466,666.67 |
| Fund for provincial supporting independent innovation of enterprises | 400,000.00 | Other income | 400,000.00 |
| Fund for financial discount support | 133,333.33 | Other income | 133,333.33 |
| UNESCO fund of Finance Bureau | 100,000.00 | Other income | 100,000.00 |
| Supporting fund for industrial restructuring projects of District Finance Bureau | 186,666.67 | Other income | 186,666.67 |
| Industrial interest discount and budget | 106,666.67 | Other income | 106,666.67 |
| Financial discount of state-owned assets holding operation limited company in Henan Province | 333,333.33 | Other income | 333,333.33 |
| The first batch of financial funds for industrial restructuring projects in 2013 | 320,000.00 | Other income | 320,000.00 |
| Special fund for high-end information industry chain of Economic and Technological Development Zone Finance Bureau | 333,333.33 | Other income | 333,333.33 |
| Subsidy fund for investment in project equipment in 2015 | 2,291,600.16 | Other income | 2,291,600.16 |
| The second batch of funds for accepted provincial industrial | 173,333.39 | Other income | 173,333.39 |
| adjustment projects in 2011 and 2012 of Zhengzhou Municipal Finance Bureau | |||
| Occupational injury prevention fee of Zhengzhou Municipal Social Security Bureau in January | 30,000.00 | Other income | 30,000.00 |
| Unemployment insurance and post stabilization subsidy of Zhengzhou Municipal Social Security Bureau | 215,600.00 | Other income | 215,600.00 |
| College student probation subsidy of Zhengzhou Municipal Finance Bureau | 246,000.00 | Other income | 246,000.00 |
| Special subsidy for Zhengzhou opening-up in 2017 | 200,000.00 | Other income | 200,000.00 |
| Patent subsidy of Zhengzhou Economic and Technological Development Zone Administrative Committee | 14,400.00 | Other income | 14,400.00 |
| Patent subsidy of Zhengzhou Economic and Technological Development Zone Administrative Committee | 22,800.00 | Other income | 22,800.00 |
| Subsidy funds after R&D expenses in 2017 | 2,000,000.00 | Other income | 2,000,000.00 |
| Corporate licensed patent funding in 2017 | 46,400.00 | Other income | 46,400.00 |
| Service charge for returning three generations | 8,816.64 | Other income | 8,816.64 |
| Subsidy for post stabilization | 10,553.00 | Other income | 10,553.00 |
| New subsidy for specialization | 250,000.00 | Other income | 250,000.00 |
| Subsidy for post stabilization | 17,946.00 | Other income | 17,946.00 |
| Enterprise Technology Innovation Project - Engineering Technology Research Center | 50,000.00 | Other income | 50,000.00 |
| Industrial transformation and upgrading support | 50,000.00 | Other income | 50,000.00 |
| Accelerate the transformation | 30,000.00 | Other income | 30,000.00 |
| and upgrading of enterprises to improve quality and efficiency support | |||
| Investment in strategic emerging industry projects within the budget of the central government | 799,999.92 | Other income | 799,999.92 |
| Fund for municipal key technological transformation projects in 2011 | 99,999.96 | Other income | 99,999.96 |
| Fund for strategic emerging industry development promotion in 2011 | 114,999.96 | Other income | 114,999.96 |
| Projects supported by the electronic information industry development fund in 2012 | 200,000.04 | Other income | 200,000.04 |
| Subsidy of Economic and Technological Development Zone Finance Bureau | 800,000.02 | Other income | 800,000.02 |
| Glass substrate finishing achievement transformation project | 46,666.67 | Other income | 46,666.67 |
| Industrial transformation and upgrading projects in Sichuan Province in 2015 | 1,449,999.98 | Other income | 1,449,999.98 |
| Fund for strategic emerging industries in 2013 | 33,333.34 | Other income | 33,333.34 |
| Special fund of Mianyang Municipal Finance Bureau | 20,000.02 | Other income | 20,000.02 |
| Special fund subsidy for industrial development of Municipal Finance Bureau | 36,666.69 | Other income | 36,666.69 |
| Funds allocated by the Economic Development Zone Government on behalf of the Provincial Finance Department for strategic emerging industries in 2013 | 333,333.34 | Other income | 333,333.34 |
| Special fund for industrial development in Economic Development Zone in 2016 | 3,202,185.31 | Other income | 3,202,185.31 |
| Subsidy for project of Economic Development Zone Finance Bureau | 588,957.03 | Other income | 588,957.03 |
| Special fund for industrial development in Economic Development Zone in 2017 | 289,855.07 | Other income | 289,855.07 |
| (Municipal supporting) funds for talent introduction project | 200,000.00 | Other income | 200,000.00 |
| Major innovative products | 1,000,000.00 | Other income | 1,000,000.00 |
| Encourage technological transformation of enterprises in 2017 | 500,000.00 | Other income | 500,000.00 |
| First batch of patent subsidies in 2018 | 16,000.00 | Other income | 16,000.00 |
| Provincial patent subsidy fund | 8,400.00 | Other income | 8,400.00 |
| Additional expenditure for the talent introduction in 2017 | 120,000.00 | Other income | 120,000.00 |
| Provincial patent award in 2017 | 150,000.00 | Other income | 150,000.00 |
| Patent subsidy | 21,260.00 | Other income | 21,260.00 |
| Provincial intellectual property project (high strength glass version conversion project) in 2018 | 200,000.00 | Other income | 200,000.00 |
| National project of talent and expert introduction in 2018 | 500,000.00 | Other income | 500,000.00 |
| Group transfer payment subsidy (key basic materials technology upgrading and industrialization special project of the state key research and development plan in 2016) | 91,540.00 | Other income | 91,540.00 |
| Enterprise recruitment subsidy | 3,000.00 | Other income | 3,000.00 |
| First batch of provincial intellectual property funds in 2018 | 50,000.00 | Other income | 50,000.00 |
| Fund subsidy for civil-military integration | 20,000.00 | Other income | 20,000.00 |
| Subsidy for technological transformation and innovation | 80,000.00 | Other income | 80,000.00 |
| achievements in 2017 | |||
| Subsidy for enterprise post stability in 2018 | 60,561.00 | Other income | 60,561.00 |
| Promote benefit up the step: enterprises with warehousing taxes breaking through RMB 20 million | 105,000.00 | Other income | 105,000.00 |
| Land tax refund for coastal industrial bases | 500,000.00 | Other income | 500,000.00 |
| Patent subsidy of Yingkou Science and Technology Bureau | 17,100.00 | Other income | 17,100.00 |
| Subsidy fund for glass substrate project | 1,316,392.68 | Other income | 1,316,392.68 |
| Patent subsidy | 5,000.00 | Other income | 5,000.00 |
| Tax refund | 63,490,000.00 | Other income | 63,490,000.00 |
| Provincial science and technology award in 2018 | 60,000.00 | Other income | 60,000.00 |
| Subsidy for construction of demonstration activity room of party committee | 200,000.00 | Other income | 200,000.00 |
| Municipal science and technology plan project fund of Wuhu Science And Technology Bureau | 210,000.00 | Other income | 210,000.00 |
| The third batch of "5111" industrial team support funds of Wuhu Municipal CPC Committee Organization Department | 100,000.00 | Other income | 100,000.00 |
| Technical standard award of Wuhu Economic and Technological Development Zone Finance Bureau | 30,000.00 | Other income | 30,000.00 |
| 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 | 10,000.00 | Other income | 10,000.00 |
| Technological Development Zone Finance Bureau | |||
| Strategic emerging industries talent support of Wuhu Human Resources and Social Security Bureau | 100,000.00 | Other income | 100,000.00 |
| Independent innovation subsidy of Wuhu Economic Development Zone Finance Bureau | 400,000.00 | Other income | 400,000.00 |
| Independent innovation award of Wuhu Economic and Technological Development Zone Finance Bureau | 200,000.00 | Other income | 200,000.00 |
| Independent innovation policy - patent award of Wuhu Economic and Technological Development Zone Finance Bureau | 106,250.00 | Other income | 106,250.00 |
| Government subsidy | 240,000.00 | Other income | 240,000.00 |
| Post stability subsidy of development zone in 2018 of Wuhu Social Insurance Center | 219,999.00 | Other income | 219,999.00 |
| Training and identification subsidy of Wuhu Economic and Technological Development Zone Finance Bureau | 126,000.00 | Other income | 126,000.00 |
| Industrial transformation and upgrading funds of Finance Division of Ministry of Industry and Information Technology | 6,742,100.00 | Other income | 6,742,100.00 |
| Construction funds for building strong province in 2018 of Wuhu Economic and Technological Development Zone Finance Bureau | 3,000,000.00 | Other income | 3,000,000.00 |
| Provincial foreign trade subsidy of Wuhu Economic and Technological Development Zone Finance Bureau | 189,300.00 | Other income | 189,300.00 |
| Subsidy for infrastructure (land | 2,244,600.00 | Other income | 2,244,600.00 |
| refund) | |||
| Industrial revitalization and technological transformation projects | 233,333.28 | Other income | 233,333.28 |
| “Subsidy for "Three Majors and One Innovation" emerging industries | 894,473.18 | Other income | 894,473.18 |
| Technical modifications | 266,666.68 | Other income | 266,666.68 |
| Subsidy fund for glass substrate project | 1,000,000.00 | Other income | 1,000,000.00 |
| Industrial development fund | 466,666.68 | Other income | 466,666.68 |
| Financial discount of project | 31,333.32 | Other income | 31,333.32 |
| Subsidy for industrial revitalization and technological transformation projects | 6,515,333.32 | Other income | 6,515,333.32 |
| Special fund subsidy for provincial strategic emerging industries | 333,333.32 | Other income | 333,333.32 |
| Special fund for technological transformation | 2,156,000.00 | Other income | 2,156,000.00 |
| Fund for strategic emerging industry development projects | 2,000,000.00 | Other income | 2,000,000.00 |
| Funds allocated by High-tech Zone for substrate projects | 426,666.68 | Other income | 426,666.68 |
| Reward fund for production line | 1,506,943.40 | Other income | 1,506,943.40 |
| Green key technological transformation of glass substrate (840) | 140,000.00 | Other income | 140,000.00 |
| Subsidy fund for intelligent manufacturing pilot demonstration project (100) | 66,666.67 | Other income | 66,666.67 |
| Fund for CSCEC International Project 159 | 2,226,000.00 | Other income | 2,226,000.00 |
| Special fund for scientific research 40 | 400,000.00 | Other income | 400,000.00 |
| Project fund subsidy | 6,824,000.00 | Other income | 6,824,000.00 |
| Municipal patent application funds in 2018 | 500.00 | Other income | 500.00 |
| Subsidies for input-output | 1,400.00 | Other income | 1,400.00 |
| surveyors in Statistical Bureau | |||
| Receive the bonus for new flat panel display glass substrate technology achievement transformation and industrialization | 80,000.00 | Other income | 80,000.00 |
| Seagull Plan | 999,980.01 | Other income | 999,980.01 |
| Funds for technological innovation projects of key industries in Kunshan in 2018 | 89,000.00 | Other income | 89,000.00 |
| Key industry projects of Science and Technology Bureau | 200,000.00 | Other income | 200,000.00 |
| Receive patent subsidy of Shanghai Intellectual Property Office | 7,232.00 | Other income | 7,232.00 |
| Subsidy for additional training in education | 34,464.00 | Other income | 34,464.00 |
| Subsidy for education costs with additional training of Human Resources and Social Security Bureau | 101,616.00 | Other income | 101,616.00 |
| Receive subsidy for VOC governance of Shanghai Minhang District Environmental Protection Bureau | 110,000.00 | Other income | 110,000.00 |
| Acceptance balance of key projects of zhangjiang special fund | 500,000.00 | Other income | 500,000.00 |
| Acceptance funds for science and technology projects | 40,000.00 | Other income | 40,000.00 |
| Acceptance balance of key projects of Zhangjiang special fund | 500,000.00 | Other income | 500,000.00 |
| The fourth batch of domestic intellectual property funds | 17,800.00 | Other income | 17,800.00 |
| Reward for plant construction | 30,699.72 | Other income | 30,699.72 |
| Budget subsidy for science and technology projects | 300,000.00 | Other income | 300,000.00 |
| Subsidy for enterprise post | 74,146.00 | Other income | 74,146.00 |
| stability | |||
| Recommended catalogue subsidy | 63,000,000.00 | Other income | 63,000,000.00 |
| Steady growth subsidy | 1,000,000.00 | Other income | 1,000,000.00 |
| Hi-tech subsidy | 100,000.00 | Other income | 100,000.00 |
| Subsidy for project R&D of Technology Center | 200,000.00 | Other income | 200,000.00 |
| Probation subsidy | 3,600.00 | Other income | 3,600.00 |
| Reward fund for science and technology award | 100,000.00 | Other income | 100,000.00 |
| Down payment for planned projects | 210,000.00 | Other income | 210,000.00 |
| Patent budget subsidy of Nanxun District Science and Technology Bureau | 16,800.00 | Other income | 16,800.00 |
| Special budget subsidy of Nanxun District Science and Technology Bureau | 50,000.00 | Other income | 50,000.00 |
| Special budget subsidy of Huzhou Finance Bureau | 100,000.00 | Other income | 100,000.00 |
| Subsidy for talent development in Nanxun District | 1,000,000.00 | Other income | 1,000,000.00 |
| Tax incentive | 50,000.00 | Other income | 50,000.00 |
| Subsidy for post stabilization | 5,376.32 | Other income | 5,376.32 |
| The second quarter growth support of Enterprise Service Center | 300,000.00 | Other income | 300,000.00 |
| New warehousing support of modern service industry | 100,000.00 | Other income | 100,000.00 |
| The third quarter growth support of Service Center | 100,000.00 | Other income | 100,000.00 |
| Talent subsidy | 31,500.00 | Other income | 31,500.00 |
| Integrated standardization project of intelligent manufacturing in 2016 | 2,550,000.00 | Other income | 2,550,000.00 |
| Subsidy allocated by industrial development for building strong province | 4,620,000.00 | Other income | 4,620,000.00 |
| Integrated standardization project of intelligent manufacturing in 2016 | 3,990,000.00 | Other income | 3,990,000.00 |
| Provincial key R&D project funds in 2017 | 900,000.00 | Other income | 900,000.00 |
| VAT refund in 2017 | 1,590,000.00 | Other income | 1,590,000.00 |
| Provincial technology enterprises warehousing award in 2017 of Suqian Development Zone Finance Bureau | 123,300.00 | Other income | 123,300.00 |
| Provincial financial funds for research and development expenses in 2017 of Suqian Development Zone Finance Bureau | 203,100.00 | Other income | 203,100.00 |
| Provincial innovation coupon cashout fund in 2016 of Suqian Development Zone Finance Bureau | 150,000.00 | Other income | 150,000.00 |
| special bonus for municipal industry introducing science and technology innovation in 2017 of Suqian Development Zone Finance Bureau | 150,000.00 | Other income | 150,000.00 |
| One-off award for talent introduction in Suqian City in 2017 | 10,000.00 | Other income | 10,000.00 |
| Municipal patent subsidy in Suqian City in 2017 | 20,500.00 | Other income | 20,500.00 |
| Subsidy fund for technological transformation of industrial enterprises in Fuzhou City | 172,000.00 | Other income | 172,000.00 |
| Fuqing supporting subsidy for technological transformation of industrial enterprises in Fuzhou City | 86,000.00 | Other income | 86,000.00 |
| G8.5 TFT-LCD glass substrate precision intelligent manufacturing digital workshop construction project | 3,000,000.00 | Other income | 3,000,000.00 |
| Project subsidy for industrial internet innovation development project and integrated standardization and new mode application of intelligent manufacturing in 2018 | 1,300,578.03 | Other income | 1,300,578.03 |
| Special fund for utilization of foreign capital in 2017 | 300,000.00 | Other income | 300,000.00 |
| Award for increasing production and efficiency in the first quarter of 2018 | 343,000.00 | Other income | 343,000.00 |
| Award for city-wide industrial steady growth, increased production and efficiency in 2017 | 610,000.00 | Other income | 610,000.00 |
| Award for policy upgrading scale industrial enterprises in 2017 | 200,000.00 | Other income | 200,000.00 |
| New material insurance subsidy | 2,922,323.47 | Other income | 2,922,323.47 |
| Award for increasing production and efficiency | 71,500.00 | Other income | 71,500.00 |
| Urban bus subsidy of Municipal Finance Bureau | 1,508,400.00 | Other income | 1,508,400.00 |
| Key new product projects | 39,999.96 | Other income | 39,999.96 |
| Financial fund for strategic emerging industries in Sichuan Province | 306,000.00 | Other income | 306,000.00 |
| Technical transformation project of 300,000 sets of electrodeless lamp ballast production line | 86,000.04 | Other income | 86,000.04 |
| Intelligent Engineering Laboratory of High Efficiency Lighting System | 200,000.04 | Other income | 200,000.04 |
| First batch of science and technology plans in 2018 (key new products of the province) | 300,000.00 | Other income | 300,000.00 |
| District science and technology plan | 20,000.00 | Other income | 20,000.00 |
| Interest subsidy for working capital loans | 210,000.00 | Other income | 210,000.00 |
| Industrial enterprise support | 400,000.00 | Other income | 400,000.00 |
| Dynamic monitoring of unemployment | 1,200.00 | Other income | 1,200.00 |
| Government subsidy for post stability | 47,132.90 | Other income | 47,132.90 |
| Reward and subsidy for enterprise operation (tax refund) | 14,424,000.00 | Other income | 14,424,000.00 |
| Employment subsidy | 16,800.00 | Other income | 16,800.00 |
| Special support project fund for safety production | 50,000.00 | Other income | 50,000.00 |
| Subsidy fund for sales income | 6,924,000.00 | Other income | 6,924,000.00 |
| Post-subsidy bonus for high-tech enterprises | 50,000.00 | Other income | 50,000.00 |
| Subsidy for booth fee of China Industrial Expo | 50,000.00 | Other income | 50,000.00 |
| Subsidy fund for Health Literacy Promotion Action in 2018 | 10,000.00 | Other income | 10,000.00 |
| Subsidy of Family Planning Bureau | 10,000.00 | Other income | 10,000.00 |
| Bonus for automobile in the consumption month | 2,392,000.00 | Other income | 2,392,000.00 |
| Budget for emergency management standardization construction demonstration site | 10,000.00 | Other income | 10,000.00 |
| Subsidy fund for supporting key industries | 200,000.00 | Other income | 200,000.00 |
| Subsidy for plant construction: RMB 1,892,900 | 5,860.37 | Other income | 5,860.37 |
| Subsidy for statistical primary construction | 2,000.00 | Other income | 2,000.00 |
| Special advanced manufacturing industry development project in Minhang District in 2018 | 535,000.00 | Other income | 535,000.00 |
| Small and medium-sized enterprise technology | 120,000.00 | Other income | 120,000.00 |
| innovation plan project in Minhang District | |||
| Shanghai technology-based small and medium-sized enterprise technology innovation fund project | 200,000.00 | Other income | 200,000.00 |
| Science and technology award | 5,600.00 | Other income | 5,600.00 |
| Feasibility study budget | 153,262.52 | Non- operating income | 153,262.52 |
| Subsidy for post stabilization | 29,994.00 | Non- operating income | 29,994.00 |
| Tax incentive | 20,000.00 | Non- operating income | 20,000.00 |
（2）Government subsidy return
□ Applicable √Not applicable
74. OtherVIII.Changes of consolidation scope1.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 | 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 Chuangxin Intelligent Co., Ltd. | May 30,2018 | 157,598,587.00 | 67.00% | Merger of non-identical controlled enterprises | May 30,2018 | Acquisition of controlled | 7,659,108.35 | -12,733,040.13 |
| Zhongcheng National construction co., Ltd. | March 30,2018 | 140,000,000.00 | 70.00% | Merger of non-identical controlled enterprises | March 30,2018 | Acquisition of controlled | -7,172,706.59 | |
| Huaxi Bus Co., Ltd. | April 4,2018 | 56,000,000.00 | 100.00% | Merger of non-identical controlled | April 4,2018 | Acquisition of controlled |
Other note：
（2）Consolidation Cost and Goodwill
In RMB
enterprises
Consolidation Cost
| Consolidation Cost | Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. | Zhongcheng National construction co., Ltd. | Huaxi Bus Co., Ltd. |
| --Cash | 157,598,587.50 | 39,999,996.00 | 44,800,000.00 |
| Contingent fair value | 100,000,004.00 | ||
| Other | 11,200,000.00 | ||
| Consolidation Cost | 157,598,587.50 | 140,000,000.00 | 56,000,000.00 |
| Less：Reduction: Obtained Definable Net Assets Fair Proportion | 88,710,182.00 | 6,730,432.38 | 83.60 |
| Goodwill/ The Consolidation Cost is Less Than the Obtained Definable Net Assets Fair Proportion | 68,888,405.50 | 133,269,567.62 | 55,999,916.40 |
(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 | 127,075,645.81 | 127,075,645.81 | 1,854,947.92 | 1,854,947.92 | 83.60 | 83.60 |
| Account receivable | 203,360.00 | 203,360.00 | ||||
| Inventory | 26,320,943.47 | 18,724,138.92 | ||||
| Fixed assets | 11,205,970.95 | 9,391,876.78 | 41,040.82 | 44,833.14 | ||
| Intangible asset | 53,241,307.46 | 53,849,371.07 | 14,204,413.89 | |||
| Prepayments | 318,723.00 | 318,723.00 | 284,956.45 | 284,956.45 | ||
| Other receivable | 5,297.05 | 5,297.05 | 171,120.78 | 171,120.78 | ||
| Other current assets | 7,989,608.01 | 7,989,608.01 | 28,559.54 | 28,559.54 | ||
| Deferred Income tax assets | 154,125.90 | 2,110.00 | 948.08 | |||
| Account payable | 4,200.00 | 4,200.00 | ||||
| Deferred Income tax Liabilities | 2,352,724.68 | 3,551,103.47 | ||||
| Advance Payments | 410,909.49 | 410,909.49 | ||||
| Employees’ wage payable | 59,926.94 | 59,926.94 | 1,261,899.22 | 1,261,899.22 | ||
| Tax payable | 7,677.39 | 7,677.39 | ||||
| Other account payable | 91,280,486.44 | 91,280,486.44 | 2,153,881.38 | 2,153,881.38 | ||
| Net assets | 132,403,256.71 | 125,801,130.38 | 9,614,903.41 | -1,035,562.77 | 83.60 | 83.60 |
| Less：Minority equity | 43,693,074.71 | 41,514,373.03 | 2,884,471.03 | -310,668.83 | ||
| Acquire net assets | 88,710,182.00 | 84,286,757.35 | 6,730,432.38 | -724,893.94 | 83.60 | 83.60 |
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair valuemeasured againWhether there is a transaction that through multiple transaction step by step to realize enterprises merger andgaining the controlduring the reporting period□ Yes √ No2. 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）Optoelectronic Display Co., Ltd. | 65.00% | Same parent company | June 30,2018 | Pay consideration, control operation | 27,289,664.99 | -11,435,425.33 | 16,069,429.21 | -13,043,965.22 |
（2） Consolidation Cost
In RMB
| Consolidation Cost | Tunghsu(Yingkou)Optoelectronic Display Co., Ltd. |
| --Cash | 195,525,500.00 |
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
| Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. | ||
| Merger date | End of previous period | |
| Cash and bank balances | 49,876,382.38 | 85,581,351.01 |
| Account receivable | 26,247,411.94 | 27,508,065.58 |
| 25,751,148.63 | 23,963,131.18 | |
| Fixed assets | 330,341,703.53 | 335,451,284.12 |
| Intangible assets | 24,988,633.63 | 25,314,850.99 |
| Prepayments | 498,425.88 | 858,504.05 |
| Other receivable | 32,000.00 | 2,000.00 |
| Other current assets | 75,603,084.09 | 74,056,644.01 |
| Construction in process | 586,201,554.22 | 570,609,032.67 |
| Deferred Income tax assets | 4,807,992.36 | 5,334,663.88 |
| Other non-current assets | 1,985,104.15 | 1,985,104.15 |
| Account payable | 30,134,535.09 | 101,667,530.90 |
| Advance Payments | 11,593.50 | 9,537.00 |
| Employees’ wage payable | 296,037.13 | 249,318.39 |
| Tax payable | 1,840,851.65 | 280,315.37 |
| Other payable | 188,164,916.74 | 125,478,801.61 |
| Non-current liabilities due 1 year | 36,316,392.68 | 36,316,392.68 |
| Long-term loans | 420,000,000.00 | 425,000,000.00 |
| Deferred Income | 84,997,214.64 | 85,655,410.98 |
| Other non- current liabilities | 108,000,000.00 | 108,000,000.00 |
| Net assets | 256,571,899.38 | 268,007,324.71 |
| Less：Minority equity | 89,800,164.78 | 93,802,563.65 |
| Acquire net assets | 166,771,734.60 | 174,204,761.06 |
3. Counter purchaseBasic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities ofthe listed companies whether constituted a business and its basis, the determination of the combination costs, theamount and calculation of adjusted rights and interests in accordance with the equity transaction process.4. The disposal of subsidiaryWhether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
| Name | Equity disposal price | Equity disposal ratio | Disposal of equity | Loss of control point | Determining the basis for the loss of control | The difference between the disposal price and the share of the subsidiary's net assets at the level of the consolidated financial statement corresponding to the disposal of the investment | Proportion of remaining stocks at the date of loss of control | The book value of the remaining equity at the date of loss of control | The fair value of the remaining equity at the date of loss of control | Regaining gains or losses arising from re-measurement of the remaining equity at fair value | Determination of the fair value of the remaining equity at the date of loss of control rights and its main assumptions | The amount of other comprehensive income related to the atomic company's equity investment transferred to investment profit and loss |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 550,000,000.00 | 51.00% | Sell | April 28,2018 | Received consideration and lost control | 3,182,206.12 | 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
reporting period□ Yes √ No5. Other reasons for the changes in combination scopeNotes 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 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science andTechnology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment HoldingCo., 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. subscribetand pays RMB 35.1244 million, holding 10% of the shares,Jiangxi University of Science and Technologysubscribet and pays RMB 10.7345 million , holding 47.22% of the shares.（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-ownedsubsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30million and the paid-up capital of RMB 0.00.（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- LuoyangConstruction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital ofRMB 100 million.（4）On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-ownedsubsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30million and the paid-up capital of RMB 10,000（5）On July 26,2018, 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 EquipmentCo., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-AnhuiXuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capitalof 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 | |
| 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 Road,Donghu 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 Area,Kunshan | Photoelectric display material | 88.89% | Establish | |
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | Zhengzhou | 66,No 3 Jingnan Road, Econornic & Technology Development Zone, Zhengzhou | Photoelectric display material | 100.00% | Control combination | |
| Shijiazhuang Xuxin Optoelectronic Technology Co.,Ltd. | Shijiazhuang | No.377,ZhujiangRoad, High-tech Area, Shijiazhuang, Hebei | Photoelectric display material | 100.00% | Control combination | |
| Beijing Xutan New Material | Beijing | 206, 2/F, Building 2B,No.80, | Industrial application of | 70.00% | Establish |
| 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)12/F,No.1, 6-3 Building, Autornobile Museum East Road, Fengtai District, Beijing | Investment | 70.00% | Establish | |
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | Fuzhou | (072) Room 109,Supervision 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 floor,Management Committee of Jiangbei Industry Zone,Anhui Prov | Equipment and technical services | 100.00% | Establish | |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | Shanghai | Room 02, 2/F,No.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-Hongkong Cooperation Zone, Shenzhen | Investment | 100.00% | Establish |
| 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 thesesubsidiaries
（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% | 15,261,279.63 | 127,875,221.16 | |
| Daosui Group Engineering Co., Ltd. | 49.00% | 12,848,583.00 | 86,002,179.03 | |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 49.50% | 10,138,966.40 | 63,373,844.58 | |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 33.00% | -4,201,903.25 | 39,491,171.47 | |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 35.00% | 90,685.60 | 93,893,249.25 |
(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 Liabilities | Non current liabilities | Total liabilities | Current assets | Non current assets | Total assets | Current Liabilities | Non current liabilities | Total liabilities | |
| Fuzhou Xufu Optoelectronic Technology Co., Ltd.. | 875,591,098.65 | 556,167,620.87 | 1,431,758,719.52 | 924,168,474.44 | 188,000,000.00 | 1,112,168,474.44 | 646,709,574.39 | 423,862,686.32 | 1,070,572,260.71 | 601,135,214.70 | 188,000,000.00 | 789,135,214.70 |
| Daosui Group Engineering Co., Ltd. | 2,167,509,492.45 | 202,708,811.48 | 2,370,218,303.93 | 2,073,267,879.04 | 121,889,831.33 | 2,195,157,710.37 | 1,703,235,393.81 | 212,928,263.97 | 1,916,163,657.78 | 1,652,020,253.77 | 129,832,585.29 | 1,781,852,839.06 |
| Shanghai | 54,919,7 | 89,462,4 | 144,382, | 15,988,1 | 366,037. | 16,354,1 | 29,877,8 | 84,534,6 | 114,412, | 6,477,59 | 389,647. | 6,867,24 |
| Tanyuan Huigu New Material Technology Co., Ltd. | 12.81 | 17.94 | 130.75 | 24.61 | 32 | 61.93 | 54.31 | 00.13 | 454.44 | 8.47 | 55 | 6.02 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 54,727,702.15 | 71,302,661.35 | 126,030,363.50 | 5,342,553.57 | 1,017,593.35 | 6,360,146.92 | ||||||
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 325,578,183.83 | 1,104,104,232.11 | 1,429,682,415.94 | 579,076,971.21 | 582,339,018.30 | 1,161,415,989.51 | 211,969,695.83 | 938,694,935.81 | 1,150,664,631.64 | 264,001,895.95 | 618,655,410.98 | 882,657,306.93 |
In RMB
| Name | Amount of current period | Amount of previous period | ||||||
| Business income | Net profit | Total Comprehensive income | Cash flows from operating activities | Business income | Net profit | Total Comprehensive income | Cash flows from operating activities | |
| Fuzhou Xufu Optoelectronic Technology Co., Ltd.. | 1,346,878,749.65 | 38,153,199.07 | 38,153,199.07 | 691,769,381.35 | 431,614,395.70 | 41,290,334.25 | 41,290,334.25 | -72,064,807.16 |
| Daosui Group Engineering Co., Ltd. | 1,861,703,065.12 | 26,141,288.12 | 26,141,288.12 | -193,439,024.46 | 314,838,576.30 | 3,830,635.45 | 3,830,635.45 | 65,139,015.21 |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 88,995,675.61 | 20,482,760.40 | 20,482,760.40 | 8,168,288.19 | 17,171,660.27 | 23,827,340.62 | 23,827,340.62 | 6,575,862.80 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 7,659,108.35 | -12,733,040.13 | -12,733,040.13 | -11,678,623.70 | ||||
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 147,376,006.85 | 259,101.72 | 259,101.72 | 61,789,360.02 | 16,069,429.21 | -13,043,965.22 | -13,043,965.22 | -7,604,917.03 |
2. Equity in joint venture arrangement or associated enterprise3. 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 | 3,045,452,313.85 | 2,682,394,584.48 |
| Non-current assets | 28,093,049,900.77 | 9,907,461,970.78 |
| Total of assets | 31,138,502,214.62 | 12,589,856,555.26 |
| Current liabilities | 25,997,850,975.29 | 7,579,701,042.91 |
| Total of Liabilities | 25,997,850,975.29 | 7,579,701,042.90 |
| Attributable to shareholders of the parent company | 5,140,651,239.33 | 5,010,155,512.35 |
| Share of net assets calculated by stake | 2,056,260,495.73 | 2,004,062,204.94 |
| Book value of equity investment in associates | 2,056,260,495.73 | 2,004,062,204.94 |
| Business income | 520,973,281.19 | 123,282,711.28 |
| Net profit | 130,495,726.98 | 10,155,512.35 |
| Total comprehensive income | 130,495,726.98 | 10,155,512.35 |
(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 | 118,087,473.48 | 126,422,519.76 |
| The total number of shares in each of the following shares | -- | -- |
| --Net | 12,167,760.85 | 601,000.00 |
| Total comprehensive income | 12,167,760.85 | 601,000.00 |
X. The risk related financial instrumentsThe 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 ofrisk management objectives and policies, and assumes the ultimate responsibility for the risk managementobjectives and policies. The Business Management Department of the Company reviews the effectiveness of theperformed programs as well as the rationality of risk management objectives and policies through monthly workstatement submitted by the Functional Department.The objective of the Company’s engagement in risk management is to obtain a proper balance between the risksand benefits, reduce the risks’ negative impact on the Company's operating performance to the lowest level andmaximize the interests of shareholders and other equity investors. Based on the risk management objectives, thebasic 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 supervisevarious risks to control the risks within a limited range.
1. Credit RiskCredit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to performits obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company wouldmake an evaluation on new customers’ credit risk before signing new contracts, which includes external creditrating and bank reference letter (when available) under certain circumstances. The Company sets quota on creditsale 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 quarterlyaudits of existing customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoringthe customer's credit risk, according to the customer's credit characteristics of its grouping. Customers who arerated as "high risk" will be placed on the restricted customer list and the company will be able to credit it in thenext period, subject to additional approval, otherwise it must be required to pay the corresponding payment inadvance.
2. Market RiskThe market risk of financial instruments refers to the risk that the fair value or future cash flow of the financialinstruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchange
risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments wouldfluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes fromshort-term bank loans. The Company meets various short-term financing needs through establishing goodbank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guaranteethe sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interestrate 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 wouldfluctuate due to the market price changes. The Company would match the foreign currency incomes and expensesas far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financialassets and liabilities in the total assets, there’s no forward foreign exchange contract or currency swap contractsigned by the Company in January 2018- 2017.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financialliabilities priced by US dollar, Yen, Euro and GBP . For the amount of foreign currency financial assets andforeign currency financial liabilities converted into RMB, please refer to Note VII. In the notes to the consolidatedfinancial statements, 71 foreign currency monetary items.XI. Disclosure of fair valueXII.Related parties and related-party transactions1. 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 enterpriseDuring the reporting period, the paid-in capital of the parent company changed as follows：
| Items | Opening balance | Indrease | Decerease | Closing balance |
| Paid-in capital | 21,800,000,000.00 | 15,000,000,000.00 | 36,800,000,000.00 |
Ultimate controller of the Company is Li ZhaotingOther noteNil
2.Subsidiary of the EnterpriseSee details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.3.Cooperative enterprise and joint ventureSee Notes IX.Other cooperative enterprise and joint venture that have related transaction with the Company in the Period oroccurred 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 |
| 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 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 servicesAcquisition 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 | 20,000,000.00 | |||
| Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. | Doors and windows | 8,963,488.82 | 289,743.58 | ||
| Chengdu China Optoelectronic Technology Co., Ltd. | Equipment Material | 1,064,512.80 | |||
| Chengdu Taiyisi Technology Co., Ltd. | Equipment Material | 361,965.81 | |||
| Tunghsu Honghai Environmental Protection Technology Co.,Ltd. | Combustion machine | 340,517.24 | |||
| Anhui Tunghsu Dabieshan | Camellia Oi | 48,364.00 |
| Agricultural Science & Technology Co., Ltd. | |||||
| Shijiazhuang Bofa Mechanical Equipment Co., Ltd | A frame | 568,390.00 | |||
| Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | Electromechanical equipment | 1,196,581.20 | |||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Energy | 908,190.45 | 792,773.07 | ||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Security fee | 630,779.00 | |||
| Total | 32,883,620.32 | 2,281,685.65 |
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 | 274,310.34 | |
| Beijing Hexie Guanglu Technology Co., Ltd. | Construction | 287,179.49 | |
| Beijing Zhonghuan Xinrong Trade Co., Ltd. | Construction | 196,132,742.57 | |
| Chengdu Taiyisi Technology Co., Ltd. | Construction | 23,131.62 | |
| Chengdu China Optoelectronic Technology Co., Ltd. | Construction | 14,647.38 | |
| Chengdu China Optoelectronic Technology Co., Ltd. | Traction roll project | 611,459.82 | 1,851,454.70 |
| Chengdu China Optoelectronic Technology Co., Ltd. | Sales of alkyne | 3,439.66 | |
| Dongguan Yijiu Real Estate Development Co., Ltd. | Construction | 7,435,707.37 | |
| Tunghsu North Real Estate | Construction | 54,568.04 |
| (Beijing) Co., Ltd. | |||
| Tunghsu North Real Estate (Beijing) Co., Ltd. | Alkyne | 71,503.37 | |
| Tunghsu Chuangzhi(Beijing)Cultural Media Co., Ltd. | Robot | 175,862.12 | |
| Tunghsu International Investment Group Co., Ltd. | Spares | 8,892.24 | |
| Tunghsu Group | Equity custody income | 235,849.06 | |
| Tunghsu Group | Construction | 648,458.60 | |
| Tunghsu Group | Glass | 34,482.76 | |
| Tunghsu Group | Lamps | 8,717.94 | |
| Tunghsu Group | Spares | 253,922.41 | |
| Tunghsu Group | Equipment | 20,085,470.09 | |
| Tunghsu Kechuang Technology Industry Development Co., Ltd. | Spares | 247,586.21 | |
| Tunghsu Technology Development Co., Ltd. | Construction | 9,771,017.46 | |
| Tunghsu Technology Group Co., Ltd. | Efficient lightbulb | 811.97 | 5,384.62 |
| Tunghsu Lantian New EnergyCo., Ltd. | Graphene | 39,490,909.09 | 34,102.56 |
| Fujian Tunghsu Real Estate Co., Ltd. | Construction | 9,178,396.21 | |
| Fujian Tunghsu Qiming Real Estate Co., Ltd. | Sales of alkyne | 33,456.70 | |
| Guangdong Huakai Real Estate Development Co., Ltd. | Construction | 46,479,358.32 | 50,231,982.84 |
| Hangzhou Yuanbang Real Estate Development Co., Ltd. | Spares | 3,008.62 | |
| Hunan Baoan Hongji Real Estate Development Co., Ltd. | Construction | 28,799,566.55 | |
| Huiyin Gold Control Asset Management Co., Ltd. | Construction | 387,177.52 | |
| Huidong Baoan Hongji Real Estate Development Co., Ltd. | Construction | 80,564,662.74 | |
| Huidong Baoan Jinan Real | Construction | 313,409,269.67 |
| Estate Development Co., Ltd. | |||
| Jinzhou Xulong New Material Co., Ltd. | Construction | 2,334,172.94 | |
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Construction | 472,417,467.35 | 57,628,263.37 |
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | 15,474.14 | ||
| Shanghai Anxuan Automation Technology Co., Ltd. | Part | 184,745.94 | |
| Shenzhen Hongji Property Management Co., Ltd. | Construction | 263,333.34 | |
| Shengzhou Zhexu Real Estate Co., Ltd. | Construction | 132,136,363.64 | |
| Shengzhou Zhexu Real Estate Co., Ltd. | Sales of alkyne | 20,520.34 | |
| Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. | Construction | 594,000.00 | |
| Shijiazhuang Bofa Mechanical t Co., Ltd. | A frame | 7,285,897.44 | |
| Ningxia Xutang New Material Technology Co., Ltd. | Sales material | 11,964.11 | |
| Shijiazhuang Tunghsu Medical Equipment Co., Ltd. | Construction | 3,636,363.60 | |
| Tibet Tunghsu Electric Power Engineering Co., Ltd. | Speres | 3,275.86 | |
| Tibet Financial Leasing Co., Ltd. | Graphene | 5,115.39 | |
| Tibet Xuri Capital Management Co., Ltd. | Robot | 8,448.28 | |
| Yixian Xuhua Park Construction Development Co., Ltd. | Construction | 58,744,654.57 | 41,574,488.29 |
| Yinchuan Fengxiang Street Comprehensive Construction Management Co., Ltd. | Construction | 52,741,795.14 | 336,755,509.90 |
| Zhangzhou Nancai Real Estate | Construction | 3,517.24 |
| Development Co., Ltd. | |||
| Zhangzhou Nanrong Real Estate Development Co., Ltd. | Alkene | 6,879.31 | |
| Zhangzhou Shenghua Real Estate Development Co., Ltd. | Construction | 159,100,004.55 | |
| Zhangzhou Shenghua Real Estate Development Co., Ltd. | Spares | 8,732.98 | |
| Zhongshan Shenzhong Zhangzhou Shenghua Real Estate Development Co., Ltd. | Construction | 388,042,917.70 | |
| Zhongshan Shenzhong Real Estate Investment Co.,Ltd. | Construction | 51,747,572.82 | |
| Chongqing Tunghsu Qide Real Estate Co., Ltd. | Construction | 72,347,034.55 | |
| Huizhou Dexin Real Estate Co., Ltd. | Construction | 84,628,947.48 | |
| Total | 2,211,283,426.74 | 517,812,524.19 |
Note
Nil（2）Related trusteeship or contractingRelated custody/contracting situation statementNilRelated management/out of the package situationNil(3) Information of related leaseRelated lease situation descriptionNil（4）Status of related party guaranteeAs 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 Group Co., Ltd. and its 40 million shares of Tunghsu Optoelectronics Technology Co., Ltd. | 425,000,000.00 | November 7,2016 | June 20,2024 | No |
| Tunghsu Group , Li Zhaoting | 17,792,407.79 | June 16,2016 | June 16,2019 | No |
| Tunghsu Group、Li Zhaoting、Li Qing | 300,000,000.00 | April 1,2014 | April 11,2022 | No |
| Tunghsu Group、 Li Zhaoting、Li Qing | 150,000,000.00 | April 22,2015 | April 11,2022 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 100,000,000.00 | March 27,2018 | March 27,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 100,000,000.00 | March 28,2018 | March 28,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 110,000,000.00 | December 28,2018 | December 28,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 70,000,000.00 | March 27,2018 | March 15,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 30,000,000.00 | April 2,2018 | March 15,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Li Zhaoting | 60,000,000.00 | March 1,2018 | March 1,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Tunghsu Group | 50,000,000.00 | March 30,2018 | March 29,2019 | No |
| Tunghsu Optoelectronic Technology Co., Ltd., Li Zhaoting | 92,350,746.73 | September 30,2018 | September 29,2021 | No |
| Tunghsu Optoelectronic Investment Co., Ltd., Tunghsu Group, Li Zhaoting, Tunghsu Optoelectronic | 1,000,000,000.00 | December 7,2018 | December 6,2019 | No |
| Technology Co., Ltd. | ||||
| Tunghsu Group | 50,000,000.00 | July 26,2018 | July 26,2019 | No |
| Tunghsu Group | 95,000,000.00 | March 19,2018 | March 12,2019 | No |
| Tunghsu Group | 90,000,000.00 | April 12,2018 | April 2,2019 | No |
| Tunghsu Group | 15,000,000.00 | June 12,2018 | May 7,2019 | No |
| Tunghsu Group , Li Zhaoting, Li Qing | 115,000,000.00 | October 31,2017 | October 31,2019 | No |
| Tunghsu Group , Li Zhaoting | 98,000,000.00 | July 7,2017 | July 6,2019 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 20,000,000.00 | September 26,2018 | September 26,2019 | No |
| Tunghsu Group, Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 25,000,000.00 | December 3,2018 | December 2,2019 | No |
| Tunghsu Group, Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 400,000,000.00 | November 30,2016 | November 30,2019 | No |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | May 27,2016 | May 26,2019 | No |
| Tunghsu Group, Li Zhaoting | 100,000,000.00 | March 3,2017 | March 2,2019 | No |
| Tunghsu Group, Li Zhaoting | 136,301,749.37 | November 7,2017 | November 7,2020 | No |
| Tunghsu Group, Li Zhaoting | 180,000,000.00 | November 10,2017 | November 15,2022 | No |
| Tunghsu Group, Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 40,000,000.00 | February 9,2018 | February 8,2019 | No |
| Tunghsu Group, Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 40,000,000.00 | February 12,2018 | February 11,2019 | No |
| Tunghsu Group, Li Zhaoting | 206,466,015.69 | November 6,2017 | November 6,2020 | No |
| Tunghsu Group, Li | 200,000,000.00 | June 26,2018 | June 24,2019 | No |
| Zhaoting | ||||
| Tunghsu Group, Li Zhaoting | 80,000,000.00 | September 18,2018 | September 18,2019 | No |
| Tunghsu Group, Li Zhaoting | 40,000,000.00 | September 28,2018 | September 27,2019 | No |
| Tunghsu Group, Li Zhaoting | 80,000,000.00 | September 30,2018 | September 27,2019 | No |
| Tunghsu Group | 200,000,000.00 | June 8,2018 | June 8,2019 | No |
| Tunghsu Group | 45,000,000.00 | May 28,2018 | May 28,2019 | No |
| Tunghsu Group | 135,000,000.00 | June 27,2018 | June 27,2019 | No |
| Tunghsu Group | 46,225,932.79 | October 12,2018 | October 12,2021 | No |
| Tunghsu Group | 30,000,000.00 | July 26,2018 | March 20,2020 | No |
| Tunghsu Group | 50,000,000.00 | November 1,2018 | June 20,2020 | No |
| Tunghsu Group | 54,306,914.36 | May 25,2016 | May 20,2019 | No |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | November 26,2018 | November 26,2019 | No |
| Tunghsu Group, Li Zhaoting | 98,000,000.00 | November 6,2018 | November 6,2019 | No |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | November 26,2018 | November 25,2019 | No |
| Tunghsu Group, Li Zhaoting | 100,000,000.00 | December 11,2018 | December 11,2019 | 否 |
| Tunghsu Group | 85,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 170,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 170,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 85,000,000.00 | Septemer 18,2017 | September 15,2022 | No |
| Tunghsu Group | 170,000,000.00 | October 31,2017 | September 15,2022 | No |
| Tunghsu Group | 170,000,000.00 | October 31,2017 | September 15,2022 | No |
| Tunghsu Group | 100,000,000.00 | July 11,2018 | July 10,2019 | No |
| Tunghsu Group | 200,000,000.00 | September 27,2018 | September 26,2019 | No |
| Tunghsu Group | 20,000,000.00 | November 5,2018 | November 5,2019 | No |
| Tunghsu Group | 100,000,000.00 | December 11,2018 | December 10,2019 | No |
| Tunghsu Group | 345,000,000.00 | January 28,2013 | January 27,2021 | No |
| Tunghsu Group | 27,742,800.00 | January 28,2013 | January 27,2021 | No |
| Tunghsu Group, Li Zhaoting | 133,782,675.98 | May 31,2016 | May 30,2021 | No |
| Tunghsu Group | 50,000,000.00 | February 7,2018 | December 6,2019 | No |
| Tunghsu Group | 50,000,000.00 | December 4,2018 | December 4,2019 | No |
| Tunghsu Group , Li Zhaoting , Li Qing | 200,000,000.00 | May 15,2017 | May 15,2019 | No |
| Tunghsu Group , Li Zhaoting , Li Qing | 300,000,000.00 | June 2,2017 | June 2,2019 | No |
| Tunghsu Group , Li Zhaoting , Li Qing | 299,550,000.00 | June 7,2016 | June 7,2019 | No |
| Tunghsu Group , Li Zhaoting | 450,000,000.00 | September 30,2016 | September 29,2021 | No |
| Tunghsu Group | 200,000,000.00 | March 15,2018 | March 15,2019 | No |
| Tunghsu Group | 450,000,000.00 | June 13,2018 | June 13,2019 | No |
| Tunghsu Group | 250,000,000.00 | July 28,2018 | July 28,2019 | No |
| Tunghsu Group | 10,000,000.00 | September 26,2018 | September 25,2019 | No |
| Li Zhaoting | 480,000,000.00 | December 21,2018 | December 21,2019 | No |
| Li Zhaoting | 1,800,000,000.00 | October 16,2018 | October 15,2019 | No |
| Tunghsu Group | 100,000,000.00 | April 5,2017 | March 14,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | June 19,2017 | March 14,2018 | Yes |
| Tunghsu Group | 45,000,000.00 | April 1, 2017 | March 23,2018 | Yes |
| Tunghsu Group | 45,000,000.00 | April 10,2017 | March 31,2018 | Yes |
| Tunghsu Group ,Li Zhaoting, Li Qing | 150,000,000.00 | May 26,2016 | April 26,2018 | Yes |
| Tunghsu Group ,Li Zhaoting, Li Qing | 159,000,049.50 | June 8,2016 | April 8,2018 | Yes |
| Tunghsu Group ,Li Zhaoting, Li Qing | 40,999,950.50 | June 21, 2016 | April 21,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 38,000,000.00 | April 20,2017 | April 19,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 20,000,000.00 | June 30,2017 | June 29,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 22,000,000.00 | July 7,2017 | July 6,2018 | Yes |
| Tunghsu Group | 10,000,000.00 | June 20,2017 | April 25,2018 | Yes |
| Tunghsu Group | 30,000,000.00 | June 20,2017 | Aprlil 20,2018 | Yes |
| Tunghsu Group, Li Zhaoting, Li Qing | 387,700,000.00 | April 29,2016 | April 28,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | May 17,2016 | May 17,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | May 20,2016 | May 20,2018 | Yes |
| Tunghsu Group, Li Zhaoting, Li Qing | 150,000,000.00 | May 19,2016 | May 18,2018 | Yes |
| Tunghsu Group | 81,500,000.00 | May 26,2016 | May 26,2018 | Yes |
| Tunghsu Group | 40,000,000.00 | May 9,2017 | May 8,2018 | Yes |
| Tunghsu Group | 160,000,000.00 | May 11,2017 | May 10,2018 | Yes |
| Tunghsu Optoelectronic Technology Co., Ltd. Li Zhaoting | 75,000,000.00 | May 31,2017 | May 31,2018 | Yes |
| Tunghsu Optoelectronic Technology Co., Ltd. Li Zhaoting | 30,000,000.00 | June 9,2017 | June 9,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 400,000,000.00 | August 15,2017 | June 29,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | July 7,2017 | July 6,2018 | Yes |
| Tunghsu Group | 20,000,000.00 | July 26,2017 | July 6,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | July 31,2017 | July 30,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 30,000,000.00 | May 22,2018 | May 22,2019 | Yes |
| Tunghsu Group , Li Zhaoting | 400,000,000.00 | August 15,2017 | August 15,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 50,000,000.00 | August 3,2017 | August 2,2018 | Yes |
| Tunghsu Group | 199,000,000.00 | February 24,2017 | August 23,2018 | Yes |
| Tunghsu Group | 50,000,000.00 | August 24,2017 | August 24,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 80,000,000.00 | October 20,2015 | October 15,2018 | Yes |
| Tunghsu Group | 204,000,000.00 | March 29,2017 | September 28,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 42,000,000.00 | April 10,2018 | October 10,2018 | Yes |
| Tunghsu Group , Li Zhaoting | 38,000,000.00 | April 11,2018 | October 11,2018 | Yes |
| Tunghsu Group | 97,000,000.00 | April 27,2017 | October 26,2018 | Yes |
| Li Zhaoting | 400,000,000.00 | October 19,2017 | October 19,2018 | Yes |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | October 26,2017 | October 26,2018 | Yes |
| Tunghsu Group | 25,000,000.00 | October 19,2017 | October 19,2018 | Yes |
| Tunghsu Group | 50,000,000.00 | October 122017 | October 10,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | October 26,2017 | October 26,2018 | Yes |
| Tunghsu Group | 25,000,000.00 | October 20,2017 | October 19,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | September 26,2013 | April 11,2022 | Yes |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | November 30,2017 | November 30,2018 | Yes |
| Tunghsu Group | 50,000,000.00 | November 1,2017 | November 1,2018 | Yes |
| Tunghsu Group | 20,000,000.00 | November 16,2017 | November 15,2018 | Yes |
| Tunghsu Group | 50,000,000.00 | December 1,2017 | November 30,2018 | Yes |
| Tunghsu Group, Li Zhaoting | 100,000,000.00 | November 13,2017 | November 12,2018 | Yes |
| Tunghsu Group | 220,000,000.00 | March 17,2016 | March 17,2028 | Yes |
| Tunghsu Group | 280,000,000.00 | June 16,2016 | June 16,2028 | Yes |
| Tunghsu Group | 50,000,000.00 | December 28,2017 | December 27,2018 | Yes |
| Tunghsu Group | 200,000,000.00 | December 22,2017 | December 22,2018 | Yes |
| Li Zhaoting | 560,000,000.00 | December 15,2017 | December 15,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | January 31,2018 | December 31,2018 | Yes |
| Tunghsu Group, Li Zhaoting, Li Qing | 200,000,000.00 | December 27,2016 | December 27,2018 | Yes |
| Tunghsu Group, Li Zhaoting, Li Qing | 200,000,000.00 | December 29,2016 | December 29,2018 | Yes |
| Tunghsu Group, Li Zhaoting, Li Qing | 100,000,000.00 | December 23,2016 | December 23,2018 | Yes |
| Tunghsu Group | 200,000,000.00 | December 15,2016 | December 15,2018 | Yes |
| Tunghsu Group | 100,000,000.00 | December 29,2017 | December 27,2018 | Yes |
| Tunghsu Group, Li Zhaoting | 166,666,666.66 | January 6,2017 | January 6,2019 | Yes |
| Tunghsu Optoelectronic Technology Co., Ltd., Li Zhaoting | 142,500,000.00 | June 26,2018 | January 26,2019 | Yes |
| Tunghsu Optoelectronic Technology Co., Ltd., Li Zhaoting | 150,000,000.00 | June 26,2018 | January 26,2019 | Yes |
| Dong xu group co. LTD | 445,000,000.00 | January 28,2013 | January 27,2021 | None |
| Dong xu group co. LTD | 34,316,000.00 | January 28,2013 | January 27,2021 | None |
| Hangzhou yuanbang real estate development co. | 480,000,000.00 | December 21,2018 | December,21,2019 | None |
| LTD | ||||
| Tunghsu Group, Li Zhaoting | 20,000,000.00 | December 29,2018 | December,18,2019 | None |
| Dong xu group co. LTD | 50,000,000.00 | November 29,2018 | Novemberr28,2019 | None |
| Dong xu group co. LTD, Li Zhaoting | 20,833,333.28 | January 06,2017 | January,06,2019 | None |
NoteNil
(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. | 550,000,000.00 | |
| Total | 550,000,000.00 |
(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 GroupFinance Co., Ltd. (hereinafter referred to as "Tunghsu Finance Company") carried out partial capital settlementbusiness. As of December 31, 2018, the capital settlement between the Company and its subsidiaries and TunghsuFinance Company was as follows:
| Name | Opening balance | Increase in the current period | Interest receivable or payable (-) |
| I. Deposits stored in Tunghsu Finance Company | 5,838,232,555.01 | 73,647,041,005.91 | 71,365,240,006.18 |
| 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 |
| 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 | 8,120,033,554.74 | 135,922,815.23 |
| 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. | 874,842.20 | 629,722.6 | ||
| Account receivable | Hebei Baoshi Energy saving lighting technology Co., Ltd. | 43,600.00 | |||
| Account receivable | Guangdong Huakai Real Estate Development Co., Ltd. | 30,096,793.88 | 19,184,644.15 | ||
| Account receivable | Jinzhou Xulong Solar Energy Technology Co., Ltd. | 2,449,198.07 | 2,449,198.07 | ||
| Account receivable | Kunming Tunghsu Qiming Investment Development Co., Ltd. | 247,253,556.82 | 29,110,261.39 | ||
| Account receivable | Yinchuan Fengxiang Street Comprehensive Construction Management Co., | 107,844,476.63 | 173,363,844.40 | ||
| Ltd. | |||||
| Account receivable | Anhui Tunghsu Kangtu Solar Energy Technology Co., Ltd. | 222,740.00 | |||
| Account receivable | Baoan Hongji Real Estate Group Co., Ltd. | 35,392,973.72 | |||
| Account receivable | Beijing Hexie Guanglu Technology Co., Ltd. | 138,000.00 | |||
| Account receivable | Beijing Zhonghuan Xinrong Trade Co., Ltd. | 215,747,350.00 | |||
| Account receivable | Dongguan Yijiu Real Estate Development Co., Ltd. | 996,344.71 | |||
| Account receivable | Tunghsu Chuangzhi（Beijing）Cultural Media Co., Ltd. | 204,000.00 | |||
| Account receivable | Tunghsu Technology Development Co., Ltd. | 4,133,892.00 | |||
| Account receivable | Fujian Tunghsu Qiming Real Estate Co., Ltd. | 3,389,184.77 | |||
| Account receivable | Hunan Baoan Hongji Real Estate Development Co., Ltd. | 19,459,762.15 | |||
| Account receivable | Huidong Baoan Hongji Real Estate Development Co., Ltd. | 32,810,756.93 | |||
| Account receivable | Huidong Ban Jinan Real Estate Development Co., Ltd. | 256,023,829.26 | |||
| Account receivable | Huizhou Dexin Real Estate Co., Ltd. | 67,266,007.88 | |||
| Account receivable | Shanghai Anxuan | 109,032.00 |
| Automation Technology Co., Ltd. | |||||
| Account receivable | Shenzhen Hongji Property Management Co., Ltd. | 15,405.00 | |||
| Account receivable | Shengzhou Zhexu Real Estate Co., Ltd. | 85,658,187.65 | |||
| Account receivable | Tibet Xuri Capital Management Co., Ltd. | 9,800.00 | |||
| Account receivable | Zhangzhou Shenghua Real Estate Development Co., Ltd. | 128,070,429.45 | |||
| Account receivable | Zhongshan Shenzhong Real Estate Development Co., Ltd. | 193,677,332.40 | |||
| Account receivable | Zhongshan Shenzhong Real Estate Development Co., Ltd. | 42,197,817.95 | |||
| Account receivable | Chongqing Tunghsu Qide Real Estate Co., Ltd. | 57,086,524.08 | |||
| Prepayments | Hebei Baoshi Energy saving lighting technology Co., Ltd. | 60,000.00 | 60,000.00 | ||
| Prepayments | Hebei Decoration Printing Machinery Co., Ltd. | 835,680.87 | 835,680.87 | ||
| Prepayments | Tunghsu Technology Group Co., Ltd. | 4,000.00 | |||
| Prepayments | Zhongshan Shenzhong Real Estate Development Co., Ltd. | 1,347,924.53 | |||
| Other receivable | Huidong Baoan Hongji Real Estate Development Co., | 4,020,000.00 |
| Ltd. | |||||
| Other receivable | Huizhou Dexin Real Estate Co., Ltd. | 500,000.00 | |||
| Other receivable | Chongqing Tunghsu Qide Real Estate Co., Ltd. | 1,050,000.00 | |||
| Other non-current assets | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 420,000.00 | |||
| Other non-current assets | Tunghsu Group | 73,876,642.13 | 132,132,857.44 |
（2）Payables
In RMB
| Name | Related party | Book balance at year end | Book balance at year beginning |
| Account payable | Shijiazhuang Bofa Machinery Co., Ltd. | 55,444.45 | |
| Account payable | Shijiazhuang Baoshi Xuming Pipe Co., Ltd. | 14,948.00 | 14,948.00 |
| Account payable | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 6,344.16 | 6,344.16 |
| Account payable | Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd | 533,942.80 | 533,942.80 |
| Account payable | Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. | 3,483,519.11 | 30,296.40 |
| Account payable | Shijiazhuang Xuling Electronic Technology Co., Ltd. | 1,320,164.09 | 1,320,164.09 |
| Account payable | Tunghsu Honghai Environmental Protection Technology Co., Ltd. | 276,500.00 | |
| Advance revenue | Tunghsu Group | 47,075,980.50 | 46,176,000.00 |
| Advance revenue | Chengdu China Optoelectronic Technology Co., Ltd. | ||
| Advance revenue | Yixian Xuhua Garden Construction Development Co., Ltd. | 110,259,360.60 | 3,852,318.00 |
| Advance revenue | Hangzhou Yuanbang Real | 100,000,000.00 |
| Estate Development Co., Ltd. | |||
| Advance revenue | Zhongshan Donghong Real Estate Development Co., Ltd. | 3,318,850.80 | |
| Other payable | Jinzhou Xuguang New Material Technology Co., Ltd. | ||
| Other payable | Baoshi Group | 722,000.00 | 722,000.00 |
| Other payable | Tunghsu Group | 275,490,964.33 | 470,099,941.55 |
| Other payable | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 4,768,691.30 | 4,700,985.30 |
| Other payable | Shijiazhuang Baoshi Xuming Pipe Co., Ltd. | 97,031.00 | 97,031.00 |
| Other payable | Tunghsu Optoelectronic Investment Co., Ltd. | ||
| Other payable | Chengdu China Optoeelctronic Technology Co., Ltd. | 6,850.92 | |
| Other payable | Huidong Baoan Jinan Real Estate Development Co., Ltd. | 4,008,400.00 | |
| Other payable | Tibet Xuri Capital Management Co., Ltd. | 8,000,000.00 | |
| Other payable | Tunghsu (HK) Holding Co., Ltd. | 782,250.00 | |
| Other payable | Zhongshan Shenzhong Real Estate Development Co., Ltd. | 339,000,000.00 |
7. Related party commitment
Nil
XIII. Stock payment1. The Stock payment overall situation
□ Applicable √ Not applicable2. The Stock payment settled by equity□ Applicable √ Not applicable3. The Stock payment settled by cash□ Applicable √ Not applicable4. Modification and termination of the stock payment
Nil
5.Other
Nil
XIV. Commitments1.Importance commitment eventsImportant 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 inproject compensation and the interest from August 1, 2011. The No. 2370 Case of (2017) CHUAN 1130MINCHU of the People's Court of Shunqing District of Nanchong City was held at 15:30 on July 26th, 2017, andthe 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, thecourt 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 14,040. DaosuiCompany appealed, with a court held at 9:30 am on March 4, 2019 and waiting for the result of the secondinstance.
(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 RockEngineering Branch of Sichuan Nanchong Hongcheng Construction Engineering Co., Ltd., Litigation Request:
Litigation request: Daosui Group Engineering Co., Ltd. pays 4,260,061 yuan for on-site material equipment andinterest on January 23, 2011; Road&bridge International Co., Ltd. and the third party bear joint responsibility forpayment within the scope of 2,75,721.63 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 onJuly 27th, 2017, and the case was transferred to the Intermediate People’s Court of Chengdu for railwaytransportation. 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 theDefendant to supplement data, First instance judgment result: Daosui paid RMB 2,300,720.63 and interest and
bore the acceptance fee of RMB 21,591.00, and Nanchong Hongcheng Construction Company assumed joint andseveral 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'srequest: immediate repayment of the loan principal amount of 3.3 million yuan and interests of 726,000 yuanduring the period, overdue interests and penalty interests, etc.; a total of 80,000 yuan for lawyers’ fees, travelexpenses, property preservation guarantees, etc. The plaintiff's request: immediate repayment of the loan principalof 2.7 million yuan and interest of 972,000 yuan during the period, overdue interest and penalty interest, etc.;payment of legal fees, travel expenses, property preservation guarantee fees, etc., totaling 50,000 yuan. ThePeople’s Court of Nanan District, Chongqing City accepted and issued the No. 5009 and No.5010 notice ofrespondence to action of (2017)YU 0108 ZI to Daosui Group on February 5,2018. (2017) Yu 0108 Zi No. 5009first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 3.3 millionand 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) Yu0108 Zi No. 5010 first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount ofRMB 2.7 million and interest, Daosui Company appealed, second instance judgment result: abrogated the firstinstance judgment, remanded it to the court of first instance for retrial, and now it is in the remanding and retrialstage.
(4) Non-governmental loan dispute, plaintiff: Ye Pingyuan, defendant: He Yuanyuan and Daosui Group.Plaintiff requests: immediate repayment of loan principal of 2,700,000.00 yuan and interest of 972,000.00 yuan,overdue interest and default interest, etc.; Payment of 50,000.00 yuan in legal fees, travel expenses and propertypreservation guarantee fees for realizing creditor's rights. The Nan'an District People's Court of Chongqingaccepted 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 RMB3,850,838.84. Pleadings, summons, notice of respondence to action, notice of evidence sent by Shunqing DistrictCourt in Nanchong City were received on July 30, 2018. The Company filed application for jurisdiction objectionon July 31, 2018. and The written verdict sent by Shunqing District Court in Nanchong City was received onSeptember 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 sentby Chengdu Railway Court were received on November 29, 2018. It was scheduled to be heard at 2:30 p.m. onDecember 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 RMB103,000,000 Yuan, and the owners raised objections to jurisdiction. The first instance ruling was arbitrated byBeijing Arbitration Commission, and Daosui Group Engineering Co., Ltd. appealed. Through judgment of theSupreme Court, it decided to be arbitrated by Beijing Arbitration Commission on September 27, 2016. The case isin a state of suspension, waiting for the Company to apply for arbitration from Beijing Arbitration Commission. Inthe same year, Daosui Group Engineering Co., Ltd. counterclaimed AZ-1 and AZ-2 parts except for the qualityguarantee deposit. After the counterclaim, the owner filed an objection to jurisdiction and the first instance judgedto be arbitrated by Beijing Arbitration Commission. The Company appealed, and the second instance of theSupreme Court judged to be prosecuted by Inner Mongolia High Court in July, 2017. On September 10, 2017, thecomplaint was resubmitted. Inner Mongolia High Court accepted the case and has not held a court until the
reporting date.
(7). Shanghai Sunlong Bus Co., Ltd. provides foreign guarantees to banks or financial leasing companies forcar buyers who purchase cars through financial leasing. As of December 31, 2018, the amount of foreignguarantees is RMB425,103,861.08（2）The Company have no significant contingency to disclose, also should be statedThe was no significant contingency in the Company.3.OtherNilXV. Post-balance-sheet events1. Significant events had not adjusted2. Profit distribution
| The profit or dividend to be distributed | 401,117,508.26 |
| Profits or dividends declared after deliberation and approval | 401,117,508.26 |
3. Sales return4.Notes of ohter significant events1. In April 2019, Tunghsu Construction Group Co., Ltd. signed a equity transfer framework agreement. to transfer70% of the equity of Zhongcheng National construction co., Ltd. held at an estimated price of RMB 140 million.XVI. Other signifiant enentsXVII. Notes s of main items in financial reports of parent company1.Notes receivable & account receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Notes receivable | 50,000.00 | 200,000.00 |
| Account receivable | 176,563,926.23 | 23,837,262.59 |
| Total | 176,613,926.23 | 24,037,262.59 |
（1）Notes receivable
（1）Classification Notes receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 50,000.00 | 200,000.00 |
| Total | 50,000.00 | 200,000.00 |
（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 balancesheet date
In RMB
| Items | Amount derecognized as at December 31,2018 | Amount underecognized as at January 1,2018 |
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract oragreement
（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 | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Account receivables provided bad debt provision in credit risk groups | 176,852,788.81 | 100.00% | 288,862.58 | 0.16% | 176,563,926.23 | 24,456,691.50 | 100.00% | 619,428.91 | 2.53% | 23,837,262.59 |
| Total | 176,852,788.81 | 100.00% | 288,862.58 | 0.16% | 176,563,926.23 | 24,456,691.50 | 100.00% | 619,428.91 | 2.53% | 23,837,262.59 |
Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable √ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
| Aging | Amount in year-end | ||
| Account reivable | Provision for bad debts | Proportion% | |
| Within item 1 year | |||
| Within credit period | 82,500,000.00 | ||
| Within 1 year after credit period | |||
| Wubtotal within 1 year | 82,500,000.00 | ||
| 4-5 years | 34,668.39 | 24,267.87 | 70.00% |
| Over 5 yers | 264,594.71 | 264,594.71 | 100.00% |
| Total | 82,799,263.10 | 288,862.58 | |
Note：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicableReceivable 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 | 94,053,525.71 |
Continued：
| Group Name | Year-beginning balance | Provision for bad debts |
| Other group | 23,220,877.08 |
（2）Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of thereversed or collected part during the reporting period was of RMB330,566.33.Where the current bad debts back or recover significant amounts:Nil（3）The current accounts receivable write-offs situationThe important write-off of accounts receivable：
Note：
Nil
（4）The ending balance of other receivable owed by the imputation of the top five partiesThe total receivable amount of top five closing balances collected by the debtors in the current reporting period isRMB169,546,593.20, which accounts for 95.87%% of the total receivables. The total amount of closing balancefor corresponding accrued bad-debt provision is RMB0.00.（5）Account receivable which terminate the recognition owning to the transfer of the financial assetsNil(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivableNil
Other note：
Nil
4.Other accounts receivable
In RMB
| Items | Balance in year-end | Balance in year- beginning |
| Interest receivable | 7,521,489.86 | 41,868,921.15 |
| Dividend receivable | 500,000,000.00 | 665,000,000.00 |
| Other | 5,774,153,829.41 | 4,790,712,672.70 |
| Total | 6,281,675,319.27 | 5,497,581,593.85 |
（1）Interest receivable
1) Classification of interest receivable
In RMB
| Items | Balance in year-end | Balance in year- beginning |
| Fixed deposit | 7,521,489.86 | 41,868,921.15 |
| Total | 7,521,489.86 | 41,868,921.15 |
2) Important overdue interestNilOther note：
Nil
（2）Dividend receivable
1) Dividend receivable
In RMB
| Items | Balance in year-end | Balance in year- beginning |
| Wuhu Tunghsu Equipment Technology Co., Ltd. | 500,000,000.00 | 665,000,000.00 |
| Total | 500,000,000.00 | 665,000,000.00 |
（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 | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other account receivables provided bad debt provision in credit risk groups | 5,775,788,977.98 | 100.00% | 1,635,148.57 | 0.03% | 5,774,153,829.41 | 4,792,302,782.16 | 100.00% | 1,590,109.46 | 0.03% | 4,790,712,672.70 |
| Total | 5,775,788,977.98 | 100.00% | 1,635,148.57 | 0.03% | 5,774,153,829.41 | 4,792,302,782.16 | 100.00% | 1,590,109.46 | 0.03% | 4,790,712,672.70 |
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.□Applicable √Not applicableOther 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 | 469,830.82 | 23,491.54 | 5.00% |
| Subtotal within 1 year | 469,830.82 | 23,491.54 | 5.00% |
| Over 3 years | 1,686,460.99 | 1,611,657.03 | |
| 4-5 years | 249,346.55 | 174,542.59 | 70.00% |
| Over 5 years | 1,437,114.44 | 1,437,114.44 | 100.00% |
| Total | 2,156,291.81 | 1,635,148.57 |
Note：
Nil
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicableOther 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 backBad debt provision accrual was RMB45,039.11, 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 | 29,065,478.16 | 31,693,666.66 |
| Personal Official borrowing | 163,295.56 | 159,109.89 |
| Related current account | 5,743,653,445.32 | 4,728,633,349.92 |
| Current account | 28,846,088.84 | |
| Persona Returnable Insurance | 603,814.14 | 446,555.34 |
| Other | 2,302,944.80 | 2,524,011.51 |
| Total | 5,775,788,977.98 | 4,792,302,782.16 |
(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 | 2,210,541,471.94 | Within credit period | 38.27% |
| Optoelectronic Technology Co., Ltd. | |||||
| Shanghai Sunlong Bus Co., Ltd. | Current account | 1,533,274,072.27 | Within credit period | 26.55% | |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | Current account | 1,269,060,118.34 | Within credit period | 21.97% | |
| Fuzhou Xufu Optoelectronic Technology Co., Ltd. | Current account | 282,538,999.97 | Within 1 year after credit period | 4.89% | |
| 0.00% | |||||
| Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. | Current account | 179,448,608.11 | 1-2 years | 3.11% | |
| Total | -- | 5,474,863,270.63 | -- |
(6) Accounts receivable involved with government subsidiesNil(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 accountsreceivableNilOther note：
Nil3.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 | 24,708,559,881.51 | 378,172,649.84 | 24,330,387,231.67 | 21,269,035,359.71 | 378,172,649.84 | 20,890,862,709.87 |
| Investment in joint ventures and associates | 2,174,347,969.22 | 2,174,347,969.22 | 2,129,502,187.30 | 2,129,502,187.30 | ||
| Total | 26,882,907,850.7 | 378,172,649.84 | 26,504,735,200.8 | 23,398,537,547.0 | 378,172,649.84 | 23,020,364,897.1 |
| 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. | 290,900,000.00 | 290,900,000.00 | ||||
| Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd | 1,966,568,609.92 | 1,966,568,609.92 | ||||
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | 1,791,853,741.58 | 1,791,853,741.58 | ||||
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | 1,221,178,272.58 | 800,000,000.00 | 2,021,178,272.58 | |||
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | 4,711,064,000.00 | 4,711,064,000.00 | ||||
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | 1,745,000,000.00 | 1,745,000,000.00 | ||||
| Wuhan Tunghsu Optoelectronic Technology Co., Ltd. | 3,247,200.00 | 3,247,200.00 | ||||
| Fuzhou Xufu Optoelectronic | 24,000,000.00 | 24,000,000.00 |
| Technology Co., Ltd. | ||||||
| Shenzhen Xuhui Investment Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Xuyou Electric Material Technology（Wuxi）Co., Ltd. | 570,628,050.30 | 570,628,050.30 | ||||
| Tunghsu（Yingkou）Optoelectroinc Display Co., Ltd. | 166,771,734.60 | 166,771,734.60 | ||||
| Shijiazhuang Colour Bulb Co., Ltd | 439,341,956.80 | 439,341,956.80 | 378,172,649.84 | |||
| Jiangsu Jixing New Material Co., Ltd. | 222,345,300.00 | 75,000,000.00 | 297,345,300.00 | |||
| Tunghsu（Kunshan）Display Material Co., Ltd. | 800,000,000.00 | 200,000,000.00 | 1,000,000,000.00 | |||
| Beijing Xutan New Material Technology Co., Ltd. | 10,500,000.00 | 10,500,000.00 | ||||
| Beijing Xufeng Real Estate Co., Ltd. | 470,000,000.00 | 470,000,000.00 | ||||
| Tunghsu Construction Group Co.,Ltd. | 3,000,453,728.53 | 3,000,453,728.53 | ||||
| Shanghai Sunlong Bus Co., Ltd. | 3,800,000,000.00 | 2,100,000,000.00 | 5,900,000,000.00 | |||
| Shenzhen Sanbao Chuangxin Inteligent Co., Ltd. | 157,598,587.50 | 157,598,587.50 | ||||
| Beijing Tunghsu Huaqing Investment Co., | 3,500,000.00 | 3,500,000.00 |
| Ltd. | ||||||
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 73,454,500.00 | 73,454,500.00 | ||||
| Taizhou Tunghsu graphene Industry Investment Fund Management Center | 25,000,000.00 | 25,000,000.00 | ||||
| Fuzhou Tunghsu Investment Development Co., Ltd. | 500,000,000.00 | 500,000,000.00 | ||||
| Anhui Xuan Optolectronic Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
| Tunghsu Optoelectronic EU.C.V(Holland) | 782,250.00 | 782,250.00 | ||||
| Total | 21,269,035,359.71 | 4,010,152,572.10 | 570,628,050.30 | 24,708,559,881.51 | 378,172,649.84 |
（2）Investment to joint ventures and associated enterprises
In RMB
| Name | Opening balance | Increase /decrease in reporting period | Closing balance | Closing balance of impairment provision | |||||||
| Add investment | Decreased investment | Gain/loss of Investment | Adjustment of other comprehensive income | Other equity changes | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| Tunghsu Group Finance Co., Ltd. | 2,004,062,204.94 | 52,198,290.80 | 2,056,260,495.74 | ||||||||
| Tunghsu(Deyang)Graphene Development Fund Partnership（LP） | 19,454,200.71 | 19,517,093.33 | 62,892.62 | ||||||||
| Zibo Bus Co., Ltd. | 32,678,813.57 | 9,137,725.63 | 41,816,539.20 | ||||||||
| Zhongda Chengxin International Commercial Factoring Co., Ltd. | 73,306,968.08 | 2,963,966.20 | 76,270,934.28 | ||||||||
| Subtotal | 2,129,502,187.30 | 19,517,093.33 | 64,362,875.25 | 2,174,347,969.22 | |||||||
| Total | 2,129,502,187.30 | 19,517,093.33 | 64,362,875.25 | 2,174,347,969.22 |
（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 | 127,730,245.51 | 92,810,680.07 | 188,688,625.35 | 135,848,152.08 |
| Other business | 64,466,696.29 | 60,182,760.63 | 35,347,620.01 | 22,002,680.00 |
| Total | 192,196,941.80 | 152,993,440.70 | 224,036,245.36 | 157,850,832.08 |
5. Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Income from long-term equity investment measured by adopting the cost method | 479,371,949.70 | 665,000,000.00 |
| Investment loss through disposal of long-term equity investment | 64,362,875.25 | 4,680,716.60 |
| Disposal of long-term equity investment income | -1,209,669.93 | |
| Financing income | 13,923,452.07 | 59,030,191.76 |
| Total | 556,448,607.09 | 728,710,908.36 |
XVIII. Supplementary Information1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/Losses on the disposal of non-current assets | 3,450,757.10 | |
| 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 | 124,464,054.70 | |
| Gains and losses from assets under trusted investment or Management | 14,623,990.55 | |
| Net gain/loss of current term from consolidation of subsidiaries under common control from beginning of term to the consolidation date | -11,435,425.33 | |
| Entrusted with the operating of the trust to obtain fee income | 707,547.18 | |
| Other non-operating income and expenditure beside for the above items | 10,172,838.56 | |
| Other gains or losses satisfying the definition of extraordinary gains or losses | 552,086.75 | |
| Less: Influenced amount of income tax | 20,174,896.94 | |
| Amount of influence of minority interests（After tax） | 4,628,919.46 |
| Total | 117,732,033.11 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosurefor Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.□ Applicable √ Not applicable2 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 andChinese accounting standards□ Applicable √Not applicable(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accountingstandards, for audit data adjusting differences had been foreign audited, should indicate the name of theforeign institutions
XII. Documents available for inspection1.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 organ3.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 thenewspapers as designated by China Securities Regulatory Commission.
【Note】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chineseversion shall prevail.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman: Wang Lipeng
Issue day approved by the Board of Directors：April 29,2019