Tunghsu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2019
August 2019
I. Important Notice, Table of Contents and DefinitionsThe 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. Wang Cang, 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 semi-annual report.All the directors attended the board meeting for reviewing the semi-annual Report.The development strategy, operation plan and other forward-looking statements involved in this report will 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 X Operation Conditions Discussion and Analysis.The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Table of Contents
2019 Semi-annual ReportI.Important Notice and DefinitionsII. Corporate Profile and Key Financial IndicatorsIII. Business ProfileIV. Performance 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. Corporate BondsX. Financial ReportXI. 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. |
| 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, Curved glass, 3D 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 | ||
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. Other
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not
√ Applicable □Not applicable
| 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 | http://www.Tunghsuguangdian.cn/ |
| dxgd@dong-xu.com | |
| Provisional announcement of the disclosure of the designated website date.(If any) | January 8,2019 |
| Index of designated website disclosed in interim announcement.(If any) | http://www.cninfo.com.cn |
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For detailsplease find the Annual Report 2018.IV. Summary of Accounting Data and Financial IndicatorsIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √No
| Reporting period | Same period of last year | YoY+/-（%） | |
| Operating Gross income（Yuan） | 8,475,089,222.93 | 11,129,851,790.88 | -23.85% |
| Net profit attributable to the shareholders of the listed company（Yuan） | 844,176,169.98 | 858,296,089.08 | -1.65% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | 778,095,326.66 | 811,345,478.77 | -4.10% |
| Cash flow generated by business operation, net（Yuan） | 594,348,068.16 | 83,617,287.66 | 610.80% |
| Basic earning per share(Yuan/Share) | 0.15 | 0.15 | 0.00% |
| Diluted gains per share(Yuan/Share) | 0.15 | 0.15 | 0.00% |
| Net asset earning ratio（%） | 2.57% | 2.74% | -0.17% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | |
| Gross assets（Yuan） | 71,378,527,997.21 | 72,576,122,859.60 | -1.65% |
| Shareholders’ equity attributable to shareholders of the listed company（Yuan） | 32,994,457,818.10 | 32,521,130,925.14 | 1.46% |
V. Differences between accounting data under domestic and overseas 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 applicable
NilVI. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 14,672,155.64 | |
| Govemment subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 68,408,139.17 | |
| Gain/loss on entrusting others with investment or asset management | 246,200.42 |
| Other non-operating income and expenditure beside for the above items | 7,342,788.31 | |
| Less: Influenced amount of income tax | 12,093,227.86 | |
| Amount of influence of minority interests（After tax） | 12,495,212.36 | |
| Total | 66,080,843.32 | -- |
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 applicable
None 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. Business ProfileⅠ.Main Business the Company is Engaged in During the Report PeriodWhether the company needs to comply with the disclosure requirements of the particular industryNoIn recent years, driven by the strategy of industrial integration and transformation and upgrading, the company hasgradually developed into a leading integrated supplier of intelligent manufacturing in China. The company startedfrom the photoelectric display industry. While maintaining the leading edge of liquid crystal glass substratetechnology, the company horizontally laid out the new material fields represented by photoelectric displaymaterials such as cover glass original sheet, curved glass, optical diaphragm, etc. The industrial cluster ofphotoelectric display materials has outstanding advantages; In the process of graphene industrialization, overseascooperation and integration will accelerate the improvement of the layout, development and sales of grapheneindustrial application products; In the field of high-end equipment manufacturing, the company has become one ofthe stable sources of revenue and profit for the company by virtue of the continuous spillover effect of theself-developed complete set of glass substrate production equipment technology and in-depth exploration andexpansion of numerous extension fields. In the field of new energy vehicles, the company takes Shenlong Bus asthe carrier, combines with the new trend of industrial development, actively arranges and builds new bases,engages in the research and development, manufacturing and sales of new energy buses and logistics vehiclesincluding hydrogen fuel vehicles, and meanwhile strives to continue to develop overseas markets, which isanother important source of income and profit for the company. Construction and installation business andelectronic communication business as value-added business provide beneficial supplement to the company's mainbusiness.I. New material business system
1. Glass substrate original film business
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, 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. Currently, the Company possesses fiveproduction bases of liquid crystal glass substrate respectively located in Zhengzhou, Shijiazhuang, Wuhu Fuzhouand Yingkou covering G5, G6, and G8.5 (compatible with 8.6 generation) TFT-LCD liquid crystal glasssubstrates. In terms of technology research and development, the technical reserve of OLED glass production linehas been completed, which is compatible with LTPS and G8.5 and G10 original chip production. In terms of highgeneration adaptability, light weight, thinness and third generation flexible display technology, it will continue tomaintain great advantages. So far, the company has more than 20 production lines for liquid crystal glasssubstrates (including projects under construction and planned projects), with that the mass production capacitytops first in China and ranks fourth in the world.
2. Other display materials business
In order to enhance the competitiveness and profitability of the display materials business and conform to thedevelopment trend of OLED flexible display, the company has adopted the strategy of horizontally expanding theindustrial chain, and has successively laid out such businesses as cover glass original sheet, curved cover glass,optical diaphragm, color filter, sapphire, etc. The business structure has been optimized and the industrial clustereffect has taken shape. Cover glass is used to protect touch modules and display screens, and is the main rawmaterial for manufacturing touch screens. It is widely used in the application fields of touch screen products, suchas notebook computers, palmtop computers, vehicle-mounted displays, mobile phone screens, digital photo framesand other flat panel display industries. The company has an advanced production line for glass substrates withfloat cover plates, and is the only enterprise in China that has mastered both overflow melting method and floatmethod for large-scale production of glass substrates. Meanwhile, the Company's optical film products, which arethe important material of the display module, can cover the polarizer, diaphragm, tape, graphite sheet, OCA glueand other sub-fields, and those are widely used in TFT-LCD modules and OLED display modules, making theCompany is a stable supplier to BOE-the leading panel manufacturer in China, especially gradually consolidatedthe strategic supplier place to the OLED flexible display material through the introduction and application ofgraphite sheets and OCA rubber products in OLED flexible products. The color filters, which are broadly used inliquid crystal flat panel displays, are essential components for true colorization of display devices, and they are the
upstream supporting materials for LCD panels. The Company will focus on extending the flat panel displayindustry chain to improve the local matching rate of the domestic TFT-LCD industry and reduce the cost ofdomestic TFT-LCD products, which will enhance the competitiveness of China's TFT-LCD industry. The sapphirebusiness focuses on the supply of LED substrates, and the Company possesses the sapphire crystal growth andcomplete processing technology. At present, the Company's main products are 4-inch LED substrate products,which provide the sapphire substrates for downstream LED customers, and it maintains a stable developmenttrend.
3. Industrial application of graphene material
The graphene has excellent characteristics of optics, electricity, heat and mechanics and important applicationprospects in terms of materialogy and energy, etc. and is deemed as a revolutionary new material. The companyhatched a batch of high-tech subsidiaries of graphene industrialization in the graphene field, and formed effectivelinkage with the main business of the company to accelerate the development and application of its own grapheneproducts. Currently, the company's industrial application of graphene materials has formed a product layout withfour industrial product series of graphene-based lithium ion batteries, graphene energy-saving lighting, grapheneelectric heating and graphene anticorrosive coatings as the forerunner, with exploration for innovative applicationsas the development goal. During the reporting period, the research and development and innovation incubationcapabilities of graphene-related products reached a new high. Mingshuo Technology Smart Lamp products, asubsidiary of the company, integrated the independently developed graphene heat dissipation technology, which isfeatured by high light efficiency, high protection, small volume, intelligence and green energy conservation, andrealizes smart city terminal application with lamp caps as carriers. In addition, the company successfully enteredthe laboratory of the University of Manchester Engineering Innovation Center in the UK, and accelerated theresearch and development of key graphene technologies through close cooperation with the world's top grapheneresearch and development resources. With the gradual implementation and transformation of scientific researchachievements in graphene and other fields, a new round of performance growth has started.II. High-end equipment manufacturing businessIn recent years, the development path of intelligent manufacturing has deepened step by step from processautomation to production line automation and intelligent factory. With the prosperity of industrial Internet, theproduction mode of intelligent factory will subvert the traditional manufacturing mode in the future, which is thedevelopment direction of China's high-end equipment manufacturing industry. While realizing the independentresearch and development of the equipment, the company has further promoted the intelligent development of theequipment manufacturing industry. Through continuous self-improvement, the company has accumulatedabundant high-end equipment research and development and manufacturing strength, and has a complete set ofdomestic leading liquid crystal glass substrate production technology. The company has realized the independentdevelopment and manufacture of hardware and software of automatic handling equipment in the panel industry,gradually realized the localization substitution of core process equipment, and steadily expanded the market ofhigh-generation panel production equipment. Currently, the company's high-end equipment business mainlyadopts the system integration production mode, specializing in research, development and production ofphotoelectric display materials, semiconductor field, automatic logistics, automatic control system, customizesspecial equipment supply service, etc. At present, the company has a large number of large customers, groupcustomers and leading enterprises in the industry with demand in the field of intelligence, revsing up theCompany's smart manufacturing production performance improvement.III. New energy automobile businessUnder the reshuffle effect of the industry brought by the new energy subsidy policy, the Company's new energyvehicle sector been steadily increasing, The company strives to build a new force in the industry landscape.Currently, the company's new energy vehicle products mainly cover pure electric city buses, hydrogen fuel cellbuses and hybrid city buses. They are pre-arranged and have the design, production and manufacturingcapabilities of new energy logistics vehicles and new energy sanitation special vehicles. They can be customizedand sold according to customer needs. Currently, hydrogen fuel cell bus is an important direction for thedevelopment of new energy bus. Conforming to this market trend, Shenlong takes the lead in the development ofhydrogen fuel cell bus relying on many years of production experience and strong scientific research ability. Thecompany adopts lightweight design, three-dimensional full-load frame and high charging and dischargingperformance power battery technology, which greatly improves the driving experience and comfort. The power,safety, comfort and stability of the vehicle reach the first-class level in China. Meanwhile, thanks to the national"the belt and road initiative", the overseas new energy bus market is gradually warming up, providing a goodexternal environment for the overseas business development of Sunlong Bus, with products sold in batches to
Southeast Asia, the Middle East, South America and Africa. The start-up and increase-in of the auto financebusiness will make the Company's development of new energy auto industry more healthy and sustainable.IV. Other business system
1. Electrocommunication product business
With the "13th Five-Year Plan" for national infrastructure construction, the company's construction andinstallation business takes smart city construction and green city construction as its direction and engineeringconstruction as its main focus, driving the production and sales of supporting products for smart projects, realizing"smart projects+product integration" and creating a benchmark enterprise for smart construction. The businesscovers smart city, sponge city, municipal infrastructure, underground utility tunnel, industrial plant, landconsolidation and other fields. Relying on the company's core industries, it provides an infrastructure constructionsystem with reasonable layout, complete functions, supporting facilities and green intelligence to lead thedevelopment, so as to make both smart products and quality services, supplement the main business and boost thecompany's development.
2. Electronic communication product business
As a supplement to the company's main business, based on high-quality customer resources such as photoelectricdisplay materials and high-end equipment, the company provides sales services for display materials, memorychips, high-end intelligent electronic competition hosts, liquid crystal screen modules, complete machines andother related products to meet the needs of customers at different levels and provide high-quality customizedproducts and services for customers at different levels.Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | No significant change |
| Fixed assets | No significant change |
| Intangible assets | No significant change |
| Construction in process | No significant change |
| Notes receivable | Notes receivable decreased by 87.76%, mainly due to bills received in 2018 being cashed or endorsed in the first half of 2019. |
| Inventories | Inventory growth of 35.42% was mainly due to the completion of follow-up orders, stock up and the increase in completed and unsettled assets in the construction business sector |
| Long-term receivable | Long-term receivables increased by 68.62%, mainly due to the increase in long-term receivables caused by the increase in installment collection. |
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core CompetitivenessWhether the company needs to comply with the disclosure requirements of the particular industryNoIn Annual Report 2018, the Company disclosed five core competitive forces, namely “strong advantage inindependent research and development and innovation ability”, “scale advantage of core photoelectric displaymaterial”, “integration advantage of endogenous and epitaxial industrial chains”, “synergistic advantages ofmutual dependence of business sectors” and “advantage in efficient management and decision-makingmechanism”. In the first half year of 2019, such core competitive force has been strengthened and deepenedfurther without any other significant change.
IV. Performance Discussion and AnalysisⅠ.GeneralIn the first half of 2019, under the boost of the “steady growth” policy and a series of reform measures, theChinese economy successfully resisted the impact of multiple downside risks, and the economy showed a slowand stable pick-up performance. However, as the uncertainty of Sino-US trade disputes increases, the globaleconomic downturn is obvious, and ensued with zero interest rate or negative interest rate policies, the overalleconomic fundamentals in particular from the second quarter tend to have a striking feature of decline. Under thissituation, the company closely follows the development orientation of national policies, seizes the newconnotation of important strategic opportunities, actively enhances the ability of scientific and technologicalinnovation, revs up the green development, and transforms the pressure of accelerating high-quality economicdevelopment into a driving force, solid develops the industry and deeply focuses on development of the fieldsincluding the high-technology, semiconductor, new materials and equipment manufacturing.During the reporting period, in one respect, the Company solidly cultivated the existing industrial structure,focused on technological innovation, meticulously developed the business and products, promoting developmentthrough R&D, adhere to quality and efficiency, and on the other respect, it optimized management and personnelstructure, reduced the costs and increased the efficiency, thus improving the business performance. In terms ofrefined management, the Company adheres to the “1+5” all-round target incentive mechanism, further highlightsthe strategic leading position of technology and product research and development, and takes the comprehensivebudget management and financial management analysis as a platform, and builds the cadre management systemand the enterprise culture as the cornerstone; with focusing on endogenous development and internal potentialtapping, implementing the enhanced assessment and incentives, and with continuous optimizing of organizationalconfiguration and organizational effectiveness, the increasingly strengthening of external market development andindustrial synergy, it has revved up the capability of revenue generation, profitability, efficiency and corecompetition. In the first half of 2019, all aspects of the Company's production and operation were steadilyadvanced, gained with a certain degree of economic benefits. During the reporting period, the Company achievedthe operating income of 8.475 billion yuan and realized a net profit of 844 million yuan attributable toshareholders.The company's each business development status in the first half of 2019:
1. Photoelectric display material business system
(1) Consolidate the main business to achieve stable development and strengthen the leading position of LCD glasssubstratesFrom the Company's 5th generation of liquid crystal glass substrates to the 8.5th generation of glass substrates, theCompany possesses a total of more than 20 production lines, which provides a full range of glass substrateproducts for downstream panel customers. Utilizing the advantages and fitting the trend, the Company has solidlyimproved the yield of high-generation glass substrate production lines and increased the market share. At present,the Company's products have been widely purchased by mainstream panel companies such as BOE, Shen ChaoOptoelectronics and Longteng Optoelectronics, which are used in various display terminals such as portabledisplay, car LED display, computer and home appliances. During the reporting period, the Company optimizedand adjusted the industrial structure of glass substrates and revved up the technological innovation to furtherconsolidate the Company's core competitiveness in the field of glass substrates.
(2) Distinguished Quality improvement, for providing a solid base to promote the OLED flexible display industryFitting the trends, based on its own technological advantages, the Company has deeply ploughed its technologyresearch and development and innovation, promoting the high-aluminum cover glass substrate products used inthe flexible display field, and it has gradually entered a good position, with the production line has entered aperiod of rapid development and the capacity of high-aluminum cover glass substrate ranked first in China, thirdin the world. During the reporting period, relied on the Company's high-end equipment manufacturing capabilities,the Company's subordinate company-Xu Hong Optoelectronics carried out the independent research anddevelopment, and now it has owned the completely independent intellectual property rights, with a good qualityproduction technology. The product has fully covered the cover glass products ranging from the thickness of
0.1-6mm, with the overall product line has a comprehensive yield of 97%-which far exceeds the industry averageof 80%. The cover glass and curved glass has achieved a balanced ratio, which has become an important step inthe Company's layout of development of OLED display industry.
(3) Active industrial chain extension and distinct industrial cluster effect
The Company's subordinate company-Tengda Optics continues to expand its optical film business scale andmarket share by relying on continuous deepening cooperative relationship with BOE. During the reporting period,in terms of scale, it closely followed the layout of BOE's industry, and built new plants in Chongqing andMianyang to supply BOE. From the product, it had strengthened the research and development capabilities,gradually extended from the TFT product field to the OLED flexible display field, and the number of applicableoptical films was increased sharply, as well as providing BOE with the related materials, thus laying a technicaland market foundation for the Company's sustained and stable development. The Company further put effortsinternally and externally in the color filters and consolidated the market competitiveness. During the reportingperiod, upon the continuous improvement of production line technology and quality level, it actively carried outthe new product development and customer certification. At present, the Company has established stablecooperative relations with customers including INES and IVO. The sapphire products closely followed the LEDindustry on the large-size development trend. During the reporting period, the Company actively implemented thelarge-size product technical transformation, expanded the production capacity of 4-inch substrate products, andtimely met the changes in the product demand structure by downstream customers, thus providing a solid basis forthe Company's stable operation.
(4) Vertically advancing the integration and development, continuing to promote the graphene industrializationBy continuously optimizing the product design, the Company strives to create the star products. As the coreindustry of Tunghsu Optoelectronic' second take-off development, the graphene industry has been strategicallydefined with leading path of various graphene preparation technologies and the realization of high value-addedindustrial application development such as "lampwick". The Company's controlling subsidiary-MingshuoTechnology has become one of the first six companies selected as responding to the national brand strategy-“NewAction for National Brand Engineering and Service Industry by Xinhua News Agency”. Meanwhile, the firstself-developed Industry pioneering-“Graphene cooling LED tube” was awarded the “Aladdin Lamp Award-”which is regarded as the Oscar of the domestic lighting industry-upon its outstanding originality and technologicaladvancement, which was graded first in the review and final review, and its market sales have reached new highs.In addition, the Company's international cooperation with Manda continued to advance and became the firstmember of China's first Manda Graphene Engineering Innovation Center. Cooperated with the team of MandanoAward scientists, by jointly shared the equipment and resources, it has jointly promoted the graphene technologyand incubated the graphene industrialization of related products. Meanwhile, the Company seized thedevelopment opportunities, timely adjusted its development strategy and sales strategy, launched several EMCprojects in a timely manner, and it combined with new opportunities in the capital market for striving for greaterdevelopment of the graphene industry. With the application of relevant key technical achievements, the grapheneindustrialization application sector is expected to maintain a strong growth momentum and to contribute theprofits to the listed company.
2. Smart manufacturing business system
Be honest and faithful and keeping doing a good job in development, continues to steadily develop the equipmentand technologyIn recent years, the Company's high-end smart equipment has been deeply cultivated and steadily developed in thefields of optoelectronic industry chain, semiconductor equipment and other general-purpose equipment, which hasbeen benefited from the integration of two technologies and the promotion of smart manufacturing policies.During the reporting period, the Company consolidated its development strength and achieved the development ofits own equipment technology and industrial upgrading based on the customers’ system requirements for productsand supporting equipment. By utilizing the advanced technology and the complete system of high-end equipmentmanufacturing capabilities, it further promoted the high value-added business, which has gained a good reputationand stable partners in the domestic high-end customer field. The company expands its multi-dimensionalintelligent manufacturing business, develops towards the direction of smart, high-end, green and integrated, andhaving a good lay-out of production of smart robots, thus to further accelerate the deep expansion anddevelopment of high-end smart manufacturing.
3. New energy vehicle business
Forward-looking concept and synergy with the main business, deepen the harmonious development of the newenergy automobile industryUnder the reshuffle effect of the industry brought by the new energy subsidy policy, the Company's new energyvehicle sector has grown substantially and has become a new force in building the industry structure. Under theCompany's forward-looking concept and collaborative development for promoting the energy revolution, it deeplycooperates with Yihuatong to seize the hydrogen fuel bus development opportunities and meanwhile shapes upthe hydrogen fuel cell development technology, thus to further improve the industrial synergy effect of the
Company's new energy vehicle business. During the reporting period, in the 5th batch of “Recommended Modelsfor Promotion and Application of New Energy Vehicles” issued by the Ministry of Industry and InformationTechnology, the number of selected models of Shenlong Bus accounted for a percentage of 21.1% in the totalnumber of selected models, nearly 1/4 of the total number of models and ranked the top place, and also the totalnumber of selected models that meet the latest subsidy technical standards for 2019 ranked second in the industry.In addition, the Company has been actively accelerating the construction of the new energy automobile industrybase, thus to provide a guarantee for the healthy development of the Company's new energy industry cluster.While striving to develop the business, as the scale grew in the business development stage, the Companypromptly started to strengthen the business-related auto finance work, thus laying the foundation for the furtherhealthy development.
4. Other value-added services
Stable and sound development, construction and installation business and electronic communication business areconducive to promote profitabilityAs a supplement to the Company's main business, the construction and installation business involves smart cities,sponge cities, municipal infrastructure, underground integrated pipe corridors, industrial plants, land consolidationand many other fields. With the smart domestic cities development and the continuous improvement ofindustrialization level, the construction and installation business has been increasingly innovated, meanwhilewhich cooperates with other core industries of the Company to expand business space in new materials, energyconservation and environmental protection and other fields to promote the Company’s sustainable developmentwith smart products and quality services. The electronic communication products business continued to growrapidly during the reporting period, and by utilizing the Company's various industry business customer resources,it further broadened the sales and contributed to improve the Company's operating income.II.Main business analysisRefer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.Changes in the financial data
In RMB
| This report period | Same period last year | YOY change（%） | Cause change | |
| Operating income | 8,475,089,222.93 | 11,129,851,790.88 | -23.85% | |
| Operating cost | 6,571,893,216.94 | 9,021,989,897.09 | -27.16% | |
| Sale expenses | 155,812,716.54 | 93,892,692.42 | 65.95% | Mainly due to the increase in sales promotion & marketing |
| Administrative expenses | 282,118,024.57 | 204,871,395.72 | 37.70% | Mainly due to the increased labor costs |
| Financial expenses | 368,090,095.96 | 395,227,116.30 | -6.87% | |
| Income tax expenses | 186,908,717.85 | 282,130,776.24 | -33.75% | Mainly due to the decrease in profit before tax for the current period compared with the previous year |
| R & D Investment | 239,995,337.32 | 193,027,311.57 | 24.33% | |
| Net cash generate by operating activities | 594,348,068.16 | 83,617,287.66 | 610.80% | Mainly due to the increase in sales payment collected |
| Net cash generated by investing activities | -100,846,155.97 | -1,660,557,972.96 | 93.93% | Mainly due to the increase in the recovery of matured deposits and the decrease in investment in fixed assets during the period. |
| Net cash generated by financing activities | -20,827,235.34 | -2,092,134,104.87 | 99.00% | Mainly due to the fund increase by financing in place. |
| Net increase in cash and cash equivalents | 470,382,603.34 | -3,671,727,390.78 | 112.81% |
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Breakdown of main business
In RMB
| Operating revenue | operating costs | Gross profit rate(%) | Increase/decrease of reverse in the same period of the previous year(%) | Increase/decrease of principal business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
| On Industry | ||||||
| Optoelectronic display material | 1,965,002,241.79 | 1,475,046,536.81 | 24.93% | -9.12% | -12.89% | 3.24% |
| Equipment and Technology serves | 3,291,442,406.83 | 2,330,990,248.59 | 29.18% | -10.21% | -19.25% | 7.93% |
| Industrial application of graphene | 62,522,517.77 | 36,518,588.14 | 41.59% | 181.81% | 302.60% | -17.53% |
| New energy vehicle | 653,517,499.98 | 529,402,326.49 | 18.99% | -36.07% | -35.41% | -0.83% |
| Construction Installation | 1,533,873,637.92 | 1,371,263,434.71 | 10.60% | -1.40% | -8.64% | 7.08% |
| Electronic communication products | 669,208,048.08 | 658,461,020.61 | 1.61% | -57.41% | -57.19% | -0.50% |
| On Products | ||||||
| Optoelectronic display material | 1,965,002,241.79 | 1,475,046,536.81 | 24.93% | -9.12% | -12.89% | 3.24% |
| Equipment and Technology serves | 3,291,442,406.83 | 2,330,990,248.59 | 29.18% | -10.21% | -19.25% | 7.93% |
| Industrial application of graphene | 62,522,517.77 | 36,518,588.14 | 41.59% | 181.81% | 302.60% | -17.53% |
| New energy vehicle | 653,517,499.98 | 529,402,326.49 | 18.99% | -36.07% | -35.41% | -0.83% |
| Construction Installation | 1,533,873,637.92 | 1,371,263,434.71 | 10.60% | -1.40% | -8.64% | 7.08% |
| Electronic communication products | 669,208,048.08 | 658,461,020.61 | 1.61% | -57.41% | -57.19% | -0.50% |
| On Area | ||||||
| China | 7,807,204,035.77 | 6,045,900,645.75 | 22.56% | -11.71% | -17.67% | 5.60% |
| Hongkong,Macauand Taiwan | 305,000,622.44 | 303,790,862.26 | 0.40% | -72.05% | -71.30% | -2.59% |
| Overseas | 63,361,694.16 | 51,990,647.34 | 17.95% | -3.19% | 13.70% | -12.19% |
III.Non-core business analysis
□ Applicable √Not applicable
IV. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
| End of Reporting period | End of same period of last year | Change in | Reason for |
| Amount | As a percentage of total assets(%) | percentage(%) | significant change | |||
| Cash and bank balances | 19,608,160,332.91 | 27.47% | 23,794,597,055.80 | 35.68% | -8.21% | |
| Accounts receivable | 11,948,970,007.58 | 16.74% | 9,937,647,168.77 | 14.90% | 1.84% | |
| Inventories | 4,754,313,963.62 | 6.66% | 4,210,883,497.85 | 6.31% | 0.35% | |
| Real estate Investment | 711,680,374.74 | 1.00% | 66,930,130.01 | 0.10% | 0.90% | |
| Long-term equity investment | 2,191,785,865.01 | 3.07% | 2,142,476,783.38 | 3.21% | -0.14% | |
| Fixed assets | 9,043,235,757.53 | 12.67% | 10,938,598,162.98 | 16.40% | -3.73% | |
| Construction in process | 5,511,187,961.75 | 7.72% | 5,387,496,213.47 | 8.08% | -0.36% | |
| Short-term loans | 9,194,934,400.00 | 12.88% | 6,812,784,698.87 | 10.22% | 2.66% | |
| Long-term loans | 3,200,691,400.00 | 4.48% | 3,823,532,289.32 | 5.73% | -1.25% | |
| Intangible assets | 1,114,095,291.45 | 1.56% | 1,149,208,605.35 | 1.72% | -0.16% | |
| Goodwill | 2,702,403,019.28 | 3.79% | 2,840,823,542.00 | 4.26% | -0.47% | |
| Bonds payble | 5,282,105,325.64 | 7.40% | 5,625,817,373.23 | 8.44% | -1.04% |
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
| Items | Amount at year beginning | Gain/loss on fair value change in the reporting period | Cumulative fair value change recorded into equity | Impairment provisions in the reporting period | Purchased amount in the reporting period | Sold amount in the reporting period | Amount at year end |
| Financial assets | |||||||
| 1. Tradable financial assets (excluding derivative financial assets) | 3,000,000.00 | 3,000,000.00 | |||||
| Other Non current financial assets | 243,158,605.30 | 305,000,000.00 | 548,158,605.30 | ||||
| Total | 243,158,605.30 | 308,000,000.00 | 551,158,605.30 | ||||
| Financial Liability | 0.00 | 0.00 | 0.00 | ||||
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √No
3. Restricted asset rights as of the end of this Reporting Period
Restrictions on asset rights at the end of the reporting period are as follows:
The restrictive currency funds are 4,221,140,438.53 yuan, mainly including the security deposit of acceptance bill,the time deposit and the guarantee deposit.The restrictive fixed assets are 10,023,924,207.63 yuan, mainly including the fixed assets formed by set mortgageand finance lease.The restrictive intangible assets are 444,132,103.11 yuan, mainly as the collateral for obtaining loans.The restrictive construction in progress is 2,387,597,640.81 yuan, mainly as the collateral to obtain loans.The restrictive investment real estate is 663,577,011.23 yuan, mainly as the collateral to obtain loans.The restrictive inventory amount is 286,588,819.60 yuan, mainly as the collateral to obtain loans.
The restrictive accounts receivable is 1,739,594,424.68 yuan, mainly is factoring financing.Ⅴ.Investment situation1．External investment
√ Applicable □Not applicable
| Investments made in the reporting period | Investments made in same period of last year | +/- % |
| 2,618,415,914.74 | 3,148,450,556.06 | -16.83% |
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 |
| Tunghsu (Jinzhou) Precision optoelectronic technology co., Ltd. | Photoelectric display material | New establishment | 500,000,000.00 | 100.00% | Self funds | No | long-term | Photoelectric display material | Completed | 0.00 | 0.00 | No | ||
| Tunghsu (Jinzhou) Intelligent material technology co., Ltd. | Photoelectric display material | New establishment | 300,000,000.00 | 100.00% | Self funds | No | Long-term | Photoelectric display material | Completed | 0.00 | 0.00 | No | ||
| Tunghsu (Jinzhou) Intelligent Opteoelectronic Co., Ltd. | Photoelectric display material | New establishment | 300,000,000.00 | 100.00% | Self funds | No | Long-term | Photoelectric display material | Completed | 0.00 | 0.00 | No | ||
| Tunghsu (Jinzhou) Precision Opteoelectronic Co., Ltd. | Photoelectric display material | New establishment | 500,000,000.00 | 100.00% | Self funds | No | Long-term | Photoelectric display material | Completed | 0.00 | 0.00 | No | ||
| Liaonin | Researc | New | 100,00 | 100.00 | Self | No | Long-t | high-en | Compl | 0.00 | -30.00 | No |
| g Tunghsu Sanbao Intelligent Technology Co., Ltd. | h & Development and Manufacturing of Robot and Intelligent Electronic equipment | establishment | 0,000.00 | % | funds | erm | d manufacture | eted | ||||||
| Tunghsu Kunshan Display Materials Co., Ltd. | Photoelectric display material | Increase capital | 400,000,000.00 | 93.40% | Rised funds | Kunshan Development Zone Guotou Holdings Co., Ltd. | Long-term | Photoelectric display material | Completed | 0.00 | -4,185,413.92 | No | March 9,2019 | http://www.cninfo.com.cn |
| Total | -- | -- | 2,100,000,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | -4,185,443.92 | -- | -- | -- |
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □Not applicable
| Security category | Security code | Stock Abbreviation: | Initial investment cost | Mode of accounting measurement | Net carrying amount balance at the beginning of the reporting period | Changes in fair value of the this period | Cumulative fair value changes in equity | Purchase amount in the this period | Sale amount in the this period | Gain/loss of the reporting period | Net carrying amount balance at the end of the reporting period | Accounting items | Source of the shares |
| Bonds | 204004 | GC004 | 3,000,000.00 | FVM | 0 | 0 | 0 | 3,000,000.00 | 0 | 0 | 3,000,000.00 | Transactional financial assets | Self funds |
| Total | 3,000,000.00 | -- | 0 | 0 | 0 | 3,000,000.00 | 0 | 0 | 3,000,000.00 | -- | -- | ||
| Securities Investment Approval Board Announcement | |||||||||||||
| Disclosure Date | |
| Securities Investment Approval Shareholders' Meeting Announcement Disclosure Date (if any) |
（2）Investment in Derivatives
□ Applicable √ Not applicable
NilⅥ. Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
| Company Name | Company type | Sectors engaged in | Registered capital | Total assets | Net assets | Turnover | Operating profit | Net Profit |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co.,Ltd. | Subsidiary | Equipment and technology Service | 2,500,000,000.00 | 18,372,631,984.28 | 3,689,405,492.48 | 2,178,587,816.15 | 885,107,149.25 | 753,444,410.24 |
| Tunghsu Construction Group Co., Ltd. | Subsidiary | Construction | 3,000,000,000.00 | 8,605,204,372.88 | 3,522,915,565.19 | 1,011,103,466.89 | 121,227,209.43 | 89,344,160.05 |
| Wuhu Tunghsu Optoelectronic Technology Co.,Ltd. | Subsidiary | Photoelectric display material | 2,000,000,000.00 | 11,113,701,599.97 | 5,542,854,866.59 | 406,102,687.12 | 55,304,194.88 | 50,621,430.45 |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | Subsidiary | Photoelectric display material | 2,000,000,000.00 | 3,776,575,572.12 | 2,242,805,067.29 | 211,894,433.02 | 66,519,340.47 | 55,981,994.87 |
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
| Name | Mode | Influence |
| Wuhan Tunghsu Optoelectronic Technology Co., Ltd. | Disposition | Based on overall strategic layout planning considerations |
| Zhongcheng Guojian Co., Ltd. | Disposition | Based on overall strategic layout planning considerations |
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2019Estimation of accumulative net profit from the beginning of the year to the end of next report period to be lossprobably or the warning of its material change compared with the corresponding period of the last year andexplanation of reason.
□ Applicable√ Not applicable
X. Risks facing the Company and countermeasures
1. Macroeconomic cyclical fluctuation risk and technology upgrade alternative riskThe Company's optoelectronic display materials business centered on glass substrates, which relied on the LCDpanels in the downstream industry. In recent years, LCD panels have gradually evolved from low-generation tohigh-generation. Due to the gradual saturation demand in the global consumer electronics market, the growth ofthe consumer electronics industry has slowed down, and the competition in LCD panels and upstream glasssubstrates has been intensified, leading to the price of glass substrates decreased. In addition, with the rapiddevelopment of the electronic display industry, other new alternatives of composite materials may be surfaced inthe future, thus if the downstream flat panel display industry undergoes major technological changes and theCompany fails to timely achieve the technological innovation, then the Company will face certain alternative risksbrought by technologies upgrading, and will expose to the risk of a downturn in the industry.
Improvement actions: After years of development, the Company has many times broken through the internationaltechnology blockade upon the strong scientific research strength, realized the home-made of liquid crystal glasssubstrates, and gradually become a leading enterprise in the production of integrated photoelectric displaymaterials and intelligent manufacturing. In recent years, under the multi-round industry-driven model, theCompany has made coordinated development and synergy development, closely tracking and analyzing the trendof macroeconomic situation, predicting the macroeconomic changes, mastering the relevant industry policies andinformation, and timely preventing from the policy risks and industry risks to ensure the efficiency andeffectiveness of the Company's operations, as well as effectively responded to the macroeconomic cyclicalfluctuations. Furthermore, upon the continuous investment in scientific research, the Company has maintained thetechnological advantages in the field of optoelectronic display. In order to cope with the risks of technologysubstitution and to adapt to the development trend and technological changes, the Company will continue toincrease investment in research and development, putting efforts to make constant breakthroughs in the ultra-thinglass, high-temperature glass and OLED carrier glass, thereby effectively improving the core technology level andmarket competitiveness of glass substrates.
2. Risks brought by the continuous decline of subsidies for new-energy vehiclesWith the gradual maturity of the new energy automobile industry, the continuous decline of new energyautomobile subsidies will bring certain impact on the future sales of new energy automobile products. At present,the new energy automobile industry is highly competitive and highly dependent on policy. Although the Companyhas detailedly measured the feasibility of realizing the relevant business plan after the subsidies retreat, Sunlongbus will face the risk of its business performance less-than-expected if there are major adverse changes in therelevant industrial policies in the future. Besides, in recent years, due to the slow global economic recovery,exchange rate fluctuations, changes in the economic pattern and other complex factors, the automobile marketcompetition will be increasingly intensified.
Improvement actions: In the future, the competition in China's auto industry will continue to intensify. Due to thegap between technology and capital, the leading enterprises have strong ability to reduce costs. In the future, the
industry concentration is expected to increase significantly, and the effect of leading position will be increasinglyobvious-that a leading company with the comprehensive advantages of technology, capital, R&D and brand willcontinue to benefit more and the small-scale companies will have limited profit margins. In addition, with thegradual improvement and upgrade of related technologies in power batteries, vehicle manufacturing, chargingpiles, charging stations and so on, the production costs and the unit sales prices will be effectively reduced; thusthe production costs of Shenlong Bus is expected to gradually decline, which will effectively offset the adverseeffects brought by the subsidy retreat policy, and will then drive the demand growth and sales of Shenlong newenergy passenger bus products. In recent years, with the increasing awareness of environmental protection amongChinese people, new energy vehicles have become more and more popular, and new energy vehicles are morelikely to be accepted by the public as a major force for energy conservation and emission reduction. Furthermore,with the continuous deepening development of the “One Belt, One Road” construction-which is deemed as theworld's longest economic corridor across more than 60 countries and regions, the overseas new energy bus marketis likely to have a gradual recovery, thus providing a good external environment for the development of SunlongBus's overseas business. Meanwhile, the building work of the auto finance business was initiated, which not onlysolved the recent operational disturbances, but also mainly solved the difficulties and shortcomings faced in thelong-term scale development.
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| The First provisional shareholders’ General meeting in 2019 | Provisional shareholders’ General meeting | 24.21% | April 19,2019 | April 20,2019 | Announcement No.:2019-024).. Published in China Securities Daily, Securities Times, Shanghai Securities Daily , Securities daily , Hong Kong Commercial Daily and http//.www.cninfo.com.cn. |
| 2018 Shareholders’ general meeting | Annual Shareholders’ General Meeting | 18.93% | May 20,2019 | May 21,2019 | Announcement No.:2019-039).. Published in China Securities Daily, Securities Times, Shanghai Securities Daily , Securities daily , Hong Kong Commercial Daily and http//.www.cninfo.com.cn. |
| The Second provisional shareholders’ General meeting in 2019 | Provisional shareholders’ General meeting | 18.96% | June 14,2019 | June 15,2019 | Announcement No.:2019-047).. Published in China Securities Daily, Securities Times, Shanghai Securities Daily , Securities daily , Hong Kong Commercial Daily and http//.www.cninfo.com.cn. |
| The Third provisional shareholders’ General meeting in 2019 | Provisional shareholders’ General meeting | 19.13% | July 15,2019 | July 16,2019 | Announcement No.:2019-047).. Published in China Securities Daily, Securities Times, Shanghai Securities Daily , Securities daily , Hong Kong Commercial Daily and http//.www.cninfo.com.cn. |
| The Fourth provisional shareholders’ General meeting in 2019 | Provisional shareholders’ General meeting | 19.11% | July 26,2019 | July 27,2019 | Announcement No.:2019-071).. Published in China Securities Daily, Securities Times, Shanghai Securities Daily , Securities daily , Hong Kong Commercial Daily and http//.www.cninfo.com.cn. |
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capitalreserve into share capital.III. 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,senior management personnel and other related parities.
□ Applicable √Not applicable
Not -existent
IV. Particulars about engagement and disengagement of CPAs firmWhether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issuedby CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.VIII. Legal mattersSignificant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√ Applicable □Not applicable
1. The 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.On June 15, 2019, the company disclosed the Suggestive Announcement on the First Phase of Employee StockOwnership Plan 6 months before the expiration of the first phase of employee stock ownership plan according tothe relevant provisions of Shenzhen Stock Exchange's Mainboard Information Disclosure Memorandum No 3 -Equity Incentive and Employee Stock Ownership Plan.
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.On March 2, 2019, the company disclosed the Suggestive Announcement on the Second Phase of Employee StockOwnership Plan 6 months before the expiration of the second phase of employee stock ownership plan accordingto the relevant provisions of Shenzhen Stock Exchange's Mainboard Information Disclosure Memorandum No 3 -Equity Incentive and Employee Stock Ownership Plan.According to the Guidance on Regulating Asset Management Business of Financial Institutions jointly issued bythe People's Bank of China, the Bank of China Insurance Regulatory Commission, the China SecuritiesRegulatory Commission and the State Administration of Foreign Exchange (YF [2018] No.106, hereinafterreferred to as the "New Regulation of Assets"), the "Zhonghai Trust Co., Ltd. - Zhonghai Trust-TunghsuOptoelectronic Collective Funds Trust Plan for Employee Stock Ownership Plan" subscribed for in the secondphase of the Company's Employee Stock Ownership Plan does not meet the requirements of the new regulation onleverage ratio. According to the new asset management regulations and related regulatory requirements, thecompany's second phase of employee stock ownership plan will not be extended. The company disclosed theAnnouncement on the Termination of the Company's Second Phase of Employee Stock Ownership Plan on July27, 2019 in accordance with the relevant provisions of Shenzhen Stock Exchange's Mainboard InformationDisclosure Memorandum No 3 - Equity Incentive and Employee Stock Ownership Plan, the Second Phase ofEmployee Stock Ownership Plan of Tunghsu Photoelectric Technology Co., Ltd. (Draft) and Shenzhen StockExchange's Information Disclosure Guidelines for Listed Companies No.4 - Employee Stock Ownership Plan(Draft for Comments).XII.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 thousand) | Ratio in similar trades | Trading limit approved(ten thousand) | Whether over the approved limit | Way of payment | Market price of similar trade available | Date of disclosure | Index of information disclosure |
| ed or not (Y/N) | |||||||||||||
| Zhongshan Shenzhong Real Eaeste Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 22,971.24 | 22,971.24 | 70,881.1 | No | Currency | 22,971.24 | April 30,2019 | http://www.cninfo.com.cn | |
| Dongguan Real Eaeste Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 9,353.83 | 9,353.83 | 23,822.96 | No | Currency | 9,353.83 | April 30,2019 | http://www.cninfo.com.cn | |
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 8,184.12 | 8,184.12 | 57,164.1 | No | Currency | 8,184.12 | April 30,2019 | http://www.cninfo.com.cn | |
| Huidong Baoan Hongji Real estate Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 7,878.76 | 7,878.76 | 22,686.34 | No | Currency | 7,878.76 | April 30,2019 | http://www.cninfo.com.cn | |
| Chongqing Tunghsu Qide Real estate Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 7,273.87 | 7,273.87 | 1,600 | Yes | Currency | 7,273.87 | April 30,2019 | http://www.cninfo.com.cn | |
| Zhongshan Shenzhong Real Eaeste Investment Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 5,174.76 | 5,174.76 | 500 | No | Currency | 5,174.76 | April 30,2019 | http://www.cninfo.com.cn | |
| Total | -- | -- | 60,836.58 | -- | 176,654.5 | -- | -- | -- | -- | -- | |||
| Details of any sales return of a large amount | Nil | ||||||||||||
| Give the actual situation in the report period where a forecast had been | Nil | ||||||||||||
| made for the total amounts of routine related-party transactions by type to occur in the current period(if any) | |
| 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 sold
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable √ Not applicable
No such cases in the reporting period.XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and otherrelated parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and otherrelated parties during the reporting period.XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant guarantees
√ Applicable □Not applicable
（1）Guarantees
Ten thousands yuan
| External Guarantee (Exclude controlled subsidiaries) | ||||||||
| Name of the Company | Relevant disclosure date/No. of the guaranteed amount | Amount of Guarantee | Date of happening (Date of signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) |
| Auto sales mortgage customers | July 14,2018 | 150,000 | 21,898.34 | The joint liability guaranty | 12 months | No | No | |
| Total of external guarantee approved in the report term (A1) | 0 | Total of external guarantee actually occurred in the report term (A2) | 21,898.34 | |||||
| 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) | 21,898.34 | |||||
| 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 Tunghsu Optoelectronic Technology Co., Ltd. | June 20,2013 | 132,000 | November 12,2013 | 59,375 | The joint liability guaranty | 96 months | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | September 27,2013 | 90,000 | April 8,2014 | 34,375 | The joint liability guaranty | 96 months | No | No |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | April 12,2014 | 150,000 | October 30,2014 | 29,000 | The joint liability guaranty | 96 months | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | November 18,2016 | 52,300 | December 2,2016 | 38,678.63 | The joint liability guaranty | 6 years | No | No |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | December 26, 2017 | 9,500 | July 31, 2018 | 9,500 | The joint liability guaranty | 1 years | No | No |
| Tunghsu（Kunshan）Display Material | May 11,2018 | 38,000 | May 14,2018 | 27,166.67 | The joint liability guaranty | From the effective date of the | No | No |
| Co., Ltd. | guarantee contract to two years after the expiration of the term of performance of the finance lease contract | |||||||
| Tunghsu（Kunshan）Display Material Co., Ltd. | July 14,2018 | 15,000 | July 26,2018 | 4,950 | The joint liability guaranty | 3 years | No | No |
| Chongqing Jinghuateng Optoelectronic Technology Co., Ltd. | August 4,2018 | 1,000 | September 26,2018 | 1,000 | The joint liability guaranty | 1 year | No | No |
| Chongqing Jinghuateng Optoelectronic Technology Co., Ltd. | August 4,2018 | 1,000 | February 7,2018 | 1,000 | The joint liability guaranty | 1 year | No | No |
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | August 31,2018 | 8,000 | September 18,2018 | 8,000 | The joint liability guaranty | 12 months | No | No |
| Jiangsu Jixing New material Co., Ltd. | September 22,2018 | 10,000 | September 30,2018 | 8,458.34 | The joint liability guaranty | 3 years | No | No |
| Shanghai Sunlong | September 22,2018 | 4,000 | November 5,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Zhengzhou Xufei | September 22,2018 | 12,000 | September 28,2018 | 12,000 | The joint liability guaranty | 1 year | No | No |
| Chongqing Jinghua teng | September 22,2018 | 2,000 | September 27,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Hunan Tunghsu Delai | October 20,2018 | 12,000 | December 19,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Guangxi Sunlong | October 20,2018 | 30,000 | November 29,2018 | 5,000 | The joint liability guaranty | No | No | |
| Jiangsu Tunghsu Yitai | October 20,2018 | 2,000 | January 3,2019 | 1,500 | The joint liability guaranty | 1 year | No | No |
| Suzhou Tengda | October 31,2018 | 2,000 | October 31,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Chongqing Jinghua teng | October 31,2018 | 2,500 | November 20,2018 | 2,500 | The joint liability guaranty | 1 year | No | No |
| Guangxi Sunlong | October 31,2018 | 11,000 | December 28,2018 | 11,000 | The joint liability guaranty | 3 years | No | No |
| Guangxi Sunlong | October 31,2018 | 19,000 | January 3,2019 | 9,000 | The joint liability guaranty | 3 years | No | No |
| Suzhou Tengda | November 24,2018 | 2,500 | December 3,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Tunghsu（Kunshan）Display Material Co., Ltd. | November 24, 2018 | 30,000 | December 14,2018 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Shanghai Sunlong | December 26,2018 | 2,500 | January 3,2019 | 2,500 | The joint liability guaranty | 12 months | No | No |
| Tunghsu（Kunshan）Display Material Co., Ltd. | January 17,2019 | 4,950 | 0 | The joint liability guaranty | 24 months | No | No | |
| Shanghai Sunlong | January 17,2019 | 2,990 | 0 | The joint liability guaranty | 6 months | No | No | |
| Guangxi Sunlong | January 26,2019 | 10,000 | January 28,2019 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Guangxi Sunlong | January 26,2019 | 17,000 | March 6,2019 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Zhengzhou Xufei | January 19,2019 | 11,000 | 0 | The joint liability guaranty | 1 year | No | No | |
| Hunan Tunghsu Weitao | March 2,2019 | 5,000 | March 20,2019 | 3,000 | The joint liability guaranty | 1 year | No | No |
| Jiangsu Tunghsu Yitai | March 2,2019 | 3,000 | March 8,2019 | 2,945 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic | March 2,2019 | 6,000 | 0 | The joint liability guaranty | 1 year | No | No | |
| Wuhu Tunghsu Weigao | March 23,2019 | 3,000 | 0 | The joint liability guaranty | 1 year | No | No | |
| Chongqing Jinghuateng | April 4,2019 | 2,000 | April 19,2019 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Hunan Tunghsu Weisheng | April 4,2019 | 2,000 | April 16,2019 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Chenzhou Xuhong Traffic | May 9,2019 | 26,200 | June 6,2019 | 26,200 | The joint liability guaranty | 15 years | No | No |
| Guangxi Sunlong | May 9,2019 | 60,000 | May 21,2019 | 60,000 | The joint liability guaranty | 36 months | No | No |
| Wuhu Tunghsu Optoelectronic Equipment | May 30,2019 | 28,000 | June 17,2019 | 10,500 | The joint liability guaranty | 1 year | No | No |
| Shanghai Sunlong | June 28,2019 | 87,500 | The joint liability guaranty | No | No | |||
| Total of guarantee for subsidiaries | 268,640 | Total of actual guarantee for subsidiaries in the | 140,645 | |||||
| approved in the Period (B1) | Period (B2) | ||
| Total of guarantee for subsidiaries approved at Period-end (B3) | 906,940 | Total of actual guarantee for subsidiaries at Period-end (B4) | 411,648.64 |
| Total approved guarantee amount during the reporting period(A1+B1+C1) | 268,640 | Total amount of guarantee amount in the reporting period(A2+B2+C2) | 162,543.34 |
| Total amount of guarantee approved at the end of the report(A3+B3+C3) | 1,056,940 | Total actual guarantee balance at end of reporting period(A4+B4+C4) | 433,546.98 |
| The proportion of the total amount of actually guarantee in the net assets of the company(A4+B4+C4) | 13.14% | ||
| 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） | 17,000 | ||
| 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） | 17,000 | ||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if any) | Nil | ||
| Explanations on external guarantee against regulated procedures (if any) | Nil | ||
（2）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other significant contracts
□Applicable √ Not applicable
No such cases in the reporting period.XV. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
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 |
| Shanghai Sunlong Bus Co., Ltd. | COD | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 74mg/L | Shanghai Integrated wastewater discharge standard DB31/199-2018 | / | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | Ammonia nitrogen | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 5.63mg/L | Shanghai Integrated wastewater discharge standard | / | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | SS | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 8mg/L | Shanghai Integrated wastewater discharge standard DB31/199-2018 | / | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | Petroleum | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 0.26mg/L | Shanghai Integrated wastewater discharge standard DB31/199-2018 | / | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | TP | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 2.19mg/L | Shanghai Integrated wastewater discharge standard | / | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | VOCs | High-altitude emissions after treatment has reached the standard | 4 | Factory west | 4.906mg/m? | "Automotive Manufacturing (Painting) Air Pollutant Emission Standards" DB32/859-2014 | 8.27t | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | SO2 | High-altitude emissions after treatment has reached the standard | 10 | West part of the middle of Factory | 10.71mg/m? | "Emission Standards for Air Pollutants in Industrial Furnaces" DB31/860-2014 | 0.00115t | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | NO | High-altitude emissions after treatment has reached the standard | 10 | West part of the middle of Factory | 11.375mg/m? | "Emission Standards for Air Pollutants in Industrial Furnaces" DB31/860-2014 | 0.536t | / | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | PM | High-altitude emissions after treatment has reached the standard | 18 | The middle of Factory | 2.669mg/m? | "Integrated Emission Standards for Air Pollutants" DB31/933-2015 | 2.997t | / | Not exceeded |
| Guangxi | Chemical | Continuous | 1 | There is 1 | 45mg/L | Integrated | 0.92t | / | Not |
| Sunlong | oxygen demand | Blowdown | total sewage outlet | Wastewater Discharge Standard Level 3 Standard | exceeded | ||||
| Guangxi Sunlong | Ammonia nitrogen | Continuous Blowdown | 1 | There is 1 total sewage outlet | 2.24 mg/L | Integrated Wastewater Discharge Standard Level 3 Standard | 0.08t | / | Not exceeded |
| Guangxi Sunlong | Toluene | Continuous Blowdown | 31 | 31 exhaust outlets in the painting workshop | 0.135mg/m? | Integrated Wastewater Discharge Standard Level 3 Standard | 0.032t | / | Not exceeded |
| Guangxi Sunlong | Xylene | Continuous Blowdown | 31 | 31 exhaust outlets in the painting workshop | 0.45 mg/m? | Integrated Wastewater Discharge Standard Level 3 Standard | 0.03t | / | Not exceeded |
| Guangxi Sunlong | Particulate matter | Continuous Blowdown | 31 | 31 exhaust outlets in the painting workshop | 3.4 mg/m? | Integrated Wastewater Discharge Standard Level 3 Standard | 0.284t | / | Not exceeded |
| 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 | Not exceeded |
| 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? | Not exceeded |
| Chengdu Tunghsu Intelligence Technology Co., Ltd. | Tin and its compounds | Air extraction and exhaust system | 2 | Production Workshop | 0.24mg/ m? | Integrated Emission Standard of Air Pollutants (GB16297-1996) secondary standards | 3.3 mg/ m? | 8.5 mg/ m? | Not exceeded |
| 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 | 16500 m?/h | 20000 m?/h | Not exceeded |
| Boundary (GB12348-2008) | |||||||||
| Tunghsu （Yingkou）Photoelectric display Co., Ltd. | Wastewater | After treatment, the waste water from the plant area will enter the municipal pipe network of the industrial base through the total discharge outlet and be discharged to the No.3 sewage treatment plant of Liaoning (Yingkou) coastal industrial base for further treatment. | 1 | Near the gate on the east side of the plant area | PH：6-9；COD：52.07mg/L；SS：28.78mg/L；BOD：22.25mg/L；ammonia nitroge：1.31mg/L | Integrated Wastewater Discharge Standard of Liaoning Province（DB21/1627-2008） | Waste water535m?/d；COD：9.93t/a；SS：5.44t/a；BOD：4.24t/a；ammonia nitroge：0.25t/a | Waste water1005.4m?/d；COD：57.21t/a；SS：56.71t/a；BOD：47.64t/a；ammonia nitroge：5.73t/a | Not exceeded |
| 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 | 50mg/L | Integrated Wastewater Discharge Standard GB8978-1997 | 5.48t/a | 117.1t/a | Not exceeded |
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | Ammonia Nitrogen | After the treatment reaches the standard, it enters the urban sewage pipe network | 1 | Total wastewater discharge outlet in southeast corner of plant area | 5mg/L | Water quality standard for sewage to be discharged into urban sewage drain CJ-343-2010 | 0.55t/a | 15.6t/a | Not exceeded |
| 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 | 5.2446t | 7.35t | Not exceeded |
| Jiangsu Jixing New Material | COD | Discharge into the municipal | 1 | WS-960001 west side of sewage | ≤5 | GB/T11901-1989 | 0.325t | 0.735t | Not exceeded |
| Co., Ltd. | sewage treatment plant through the sewage pipe network | treatment station | |||||||
| Jiangsu Jixing New Material Co., Ltd. | Ammonia Nitrogen | 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 | 0.002165t | 0.566t | Not exceeded |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | NOX 、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 | NO2≤700mg/m? NOX ≤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 | Not exceeded |
| Taizhou Enwang New Energy Technology Co., Ltd. | Waste acid | External handling | Nil | Nil | PH 1-3 | / | 70t | 100t | Not exceeded |
| 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 | 4.15 mg/m? | SO2≤400 mg/m? | 0.3 t | 4.52 t/a | Not exceeded |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | (NOX) | After passing through the flue gas treatment system, it is directly discharged | 2 | Between plant 101 and plant 202 | 182.9 mg/m? | NOX≤700 mg/m? | 14.3 t | 84.76 t/a | Not exceeded |
| into the atmosphere. | |||||||||
| 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 | 7 mg/L | COD≤500 mg/L | 4.3 t | 42.5 t/a | Not exceeded |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | NH3 -N) | After neutralization, it enters the Chengdong Sewage Treatment Plant through municipal sewage pipe network | 1 | East side of the east gate of the company | 1.17 mg/L | / | 0.72 t | 2.86 t/a | Not exceeded |
| 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 waste: waste cutting liquid shall be recovered and treated by a qualified company | / | / | 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 liquid): 0.2 tons | Subject to the requirements of environmental protection standards | Not exceeded |
| Zhengzhou Xufei | Nitrogen oxides | The furnace flue gas is discharged after being treated by a bag filter, and the boiler flue gas is | 5 | 1 chimney for the first-stage glass furnace, 1 chimney for the second-stage glass | 一Flue gas discharge port of first-stage furnace: 226mg/m?. Flue gas discharge port of | The flue gas of glass furnace shall be subject to the limit values in Table 2 of Emission | 7.918t/a | 10.014t/a | Not exceeded |
| discharged after being treated by a low-nitrogen burner | furnace, and 1 chimney for each of the 3 natural gas boilers | second-stage furnace: 288mg/m? | 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) | ||||||
| Zhengzhou Xufei | SO2 | 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 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) | 0t/a | 1.387t/a | Not exceeded |
| Zhengzhou Xufei | Particulates | The furnace flue gas is discharged after being treated by a bag filter, and the boiler flue gas is | 5 | 1 chimney for the first-stage glass furnace, 1 chimney for the second-stage glass | 一Flue gas discharge port of first-stage furnace: 4.26mg/m?. Flue gas discharge port of | The flue gas of glass furnace shall be subject to the limit values in Table 2 of Emission | 0.113t/a | \ | Not exceeded |
| discharged after being treated by a low-nitrogen burner | furnace, and 1 chimney for each of the 3 natural gas boilers | second-stage furnace: 3.61mg/m? | 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) | ||||||
| Zhengzhou Xufei | 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 | 9.67mg/L | Implementation of the integrated sewage discharge standard (GB8978-1996) table 4 secondary standards | 3.22t/a | 9.1t/a | Not exceeded |
| Zhengzhou Xufei | Ammonia Nitrogen | 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 | 0.41mg/L | Implementation of the integrated sewage discharge standard (GB8978-1996) table 4 secondary standards | 0.07t/a | 0.13t/a | Not exceeded |
| Chongqing Jinghuateng | Non-methane total hydrocarbon | Be organized | 1 | / | 60 | Emission standard of packaging and printing industry | / | 0.38 | Not exceeded |
Entrust financial expected to be unable to recover the principal or impairment might be occurred
1. 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 with
domestic 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.
2. Guangxi Sunlong Automobile Manufacturing Co., Ltd
In the first half of 2019, the company's environmental protection equipment and facilities operated continuously,reliably and stably, regular pollutant monitoring was carried out, and the requirements of the nationalenvironmental protection emission standard were implemented strictly, to ensure that all kinds of pollutants reachthe standard for emission.
1) Construction of pollution prevention and control facilities
Exhaust 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. Environmental protection equipment and facilitiescontinued to operate steadily, and all kinds of pollution factors met the discharge standards.Wastewater discharge and treatment: the company's wastewater mainly consists of domestic wastewater, rain testwastewater 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 byseptic 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. About 3,000 tons of wastewater are treated in the first half of 2019, and the waste waterpollution factors monitored reach the standard.Noise treatment: reasonable layout of high-noise equipment and noise control measures such as sound insulation,sound absorption and vibration reduction. Noise monitoring at plant boundary is qualified.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.In the first half of 2019, a total of 20 tons of hazardous waste such as paint residue and resin-containing waste aretransferred for disposal, with a harmless disposal rate of 100%.
3. Chengdu Tunghsu Intelligent Technology Co., Ltd
1) Wastewater: All kinds of wastewater can meet the requirements of Grade III standard of Integrated WastewaterDischarge Standard (GB8978-1996) after being treated by corresponding measures. Wastewater is discharged intothe sewage pipe network of the park from the main discharge port, and enters Qingshui River after being treatedby Chengdu Cooperative Sewage Treatment Plant, and an obvious signboard is set at the main discharge port.
2) Exhaust gas: Solder smoke is collected through the exhaust system provided by welding equipment above eacharea, and finally collected by a 20-meter-high exhaust cylinder and directly discharged, after which, it can meetthe 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 thenoise equipment is installed in a closed plant building; Evolutionary exhaust system.
Environmental impact assessment of construction projects and other administrative permission for environmentalprotection
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, and then ispumped 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 and groundof this project, i.e. the bottom layer shall be paved with not less than 30 cm thick concrete for compaction, whosetop shall be paved with 100mm thick concrete, and then hardened with 200mm thick high-strength concrete toensure the permeability coefficient is less than 1x10-7cm/s, and the water treatment structure shall be constructedwith anti-seepage concrete; Each link of drainage is transported by cement or ceramic anti-seepage pipelines.Except for Green land, the ground of the plant area is all coated with cement plastering anti-seepage hardening.After the anti-seepage and anti-corrosion measures mentioned above are adopted, the pollution effects of chemicalwarehouse and production workshop on groundwater can be effectively prevented.
5.Fuzhou Tunghsu Optoelectronic Co., Ltd.
1. Fuzhou Tunghsu optoelectronic operates normally during the whole year and produces main pollution of wastewater. In 2017, it built the rain and sewage diversion system and waste water treatment station with designedtreatment capacity of 1000t/d, which adopts PH adjustment + secondary concrete sedimentation treatment process.All production waste water will be collected after treatment and meeting standards and discharged into Rongyuansewage treatment plant together with pre-treated sanitary sewage by septic tank for uniform treatment. The wastewater treatment station operates normally during the report period and discharges per standards.
6. Jiangsu Jixing New Material Co., Ltd
The existing wastewater treatment facilities of Jiangsu Jixing New Material Co., Ltd are operating normally, withan approved wastewater treatment capacity of 52,030 t/a; The expanded sewage treatment station facility was putinto operation in April with an approved wastewater treatment capacity of 147,037 t/a.
7.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. At thebeginning 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.
8. Taizhou Enwang New Energy Technology Co., Ltd.
There are anti-leakage grooves for the process of producing waste acid and the storage position to prevent wasteacid overflow. Changzhou Longshun Environmental Protection Service Co., Ltd is responsible for its waste aciddisposal.
9. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has a flue gas treatment system, an industrial wastewater treatment station and a septic tank.In orderto 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.
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. Zhengzhou Xufei Optoelectronic Technology Co., ltd
1) Invest 1.094 million yuan to implement ultra-low nitrogen renovation on 3 gas boilers (2 10t/h boilers and 16t/h boiler), with nitrogen oxide emission concentration lower than 30mg/m3, which has passed the verification ofZhengzhou Ecological Environment Bureau.
2) An investment of 790,000 yuan has been invested to install an on-line monitoring system for furnace flue gas torealize the grid connection with Zhengzhou Ecological Environment Bureau.
3) Environmental protection facilities operate continuously and stably throughout the year. There is no unplannedshutdown. All pollutants are discharged stably up to standard. No environmental violations occur.
4）105,500 yuan is invested to install an unorganized emission monitoring system, so as to realize grid-connectedoperation with Zhengzhou Ecological Environment Bureau.5）500 yuan is invested to change the transmission of waste water online monitoring data from by telephone cardto by environmental protection dedicated line.
6）17,000 yuan is invested to review and assess the emergency plan for environmental emergencies.7）57,000 yuan is invested to carry out cleaning production.
12. Chongqing Jinghuateng Optoelectronic Technology Co., Ltd
Water pollution: the existing 2# biochemical pool of Yingtian ? Liangjiang industrial valley standard plantbuilding 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.Solid waste: after centralized collection of domestic waste, it shall be uniformly treated by the district sanitationdepartment. 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.Environmental impact assessment of construction projects and other administrative permission for environmentalprotection
1. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd. strictly implements the environmental impact assessment system and ThreeSimultaneities 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.
2. Guangxi Sunlong Automobile Manufacturing Co., Ltd
Nanning Yuanzheng All-aluminum New Energy Automobile Production Base Project was approved by GuangxiEnvironmental 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.
3.Chengdu Tunghsu Intelligent Technology Co., Ltd.
Documents such as enterprise investment project filing notice (PF Project No.2011-119), request for instructionson environmental standards (PH No.2011-88), approval of environmental standards (CHJF No.2011-204), reviewopinions on environmental impact report (CHJP 2009-406), etc.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
The environmental impact report was approved in February 2012, and the processing environmental protectionacceptance was completed in March 2018. It is qualified upon acceptance.
5. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company strictly implements the environmental impact assessment system and "Three Simultaneities" system,and the construction project is legal and compliant. The project was approved by Fuqing EnvironmentalProtection Bureau in September 2016.
6. 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.
7. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company's "PDP Glass Substrate Project" and "10 million m2 of High-strength and Ultra-thin Display CoverGlass Project" compiled environment impact report form and obtained EIA approval. The two projects passed EIAacceptance in 2015 and 2017 respectively. Our company obtained the new sewage permit in 2017 and 2012. In2019, it strictly carried out sewage discharge and various environmental management according to therequirements of the new sewage permit.
8.Taizhou Enwang New Energy Technology Co., Ltd. The company has environmental assessment permissionfrom Taizhou Environmental Protection Department, and the reply is: THSP [2017] No. 20067.
9. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company's environmental impact assessment and other environmental protection administrative licenses areshown 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 | 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. |
10. Wuhu Tunghsu optoelectronic Equipment Technology Co., Ltd
1) Before the construction of the project, a third party unit shall be entrusted to prepare the environmental impact
assessment report and file it through Wuhu Environmental Protection Bureau (document No.: HH [2013] No.156).
2) Accepted by Wuhu Environmental Protection Bureau (document No: HY [2016] No.190).
11. Zhengzhou Xufei Optoelectronic Technology co., ltd
EIA for Phase I of the project: on August 16, 2009, the Henan Environmental Protection Department passed theReply of Henan Environmental Protection Department on the Environmental Impact Report of TFT-LCD GlassSubstrate Production Line of Zhengzhou Xufei Photoelectric Technology Co., Ltd (YHS [2009] No. 295), and onFebruary 24, 2011, the Henan Environmental Protection Department passed the Opinions on EnvironmentalProtection Acceptance for the completion of TFT-LCD Glass Substrate Production Line Project of ZhengzhouXufei Optoelectronic Technology Co., Ltd (YHPY [2011] No. 12).EIA for Phase II of the roject: On November 2, 2010, Henan Environmental Protection Department approved theReply 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).
12..Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Chongqing Jinghuateng：Yu（Liangjiang）HZ{2017}No.240
Emergency response plan of emergency environmental event
1. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd.'s Plan for Environmental Emergencies of Shanghai Sunlong Bus Co., Ltd. hasbeen 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.
2. Guangxi Sunlong Automobile Manufacturing Co., Ltd
On November 2, 2017, the company entrusted Guangxi Gaobiao Monitoring Co., Ltd. to prepare a plan forenvironmental 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.
3. Chengdu Tunghsu Intelligent Technology Co., Ltd
Chengdu Tunghsu Intelligent Technology Co., Ltd. adheres to the principle of "clean production, emission up tostandard 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.
4. Tunghsu (Yingkou)Optoelectronic Display Co., Ltd.
The company has a sound environmental emergency plan, which mainly includes: environmental pollutionincidents 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. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The 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.
6. Jiangsu Jixing New Material Co., Ltd
Jiangsu Jixing New Material Co., Ltd entrusted a third party to prepare and file the Comprehensive Plan forEnvironmental Emergencies in 2017. The number of the emergency plan is JSJX-YA-2017001 and the versionnumber of the emergency plan is 2017 (1).
7. Sichuan Xuhong Optoelectronic Technology Co., Ltd.
There are natural gas, hydrogen, liquefied petroleum gas, diesel and other risk substances in the company, so inDecember 2015, the company organized and formulated the Plan for Environmental Emergencies and submitted it
to Mianyang Environmental Protection Bureau for filing. In 2019, our company will apply to MianyangEnvironmental Protection Bureau to carry out "revision, review and filing of the plan for environmentalemergencies" according to relevant management requirements.
8. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
According to the relevant requirements of the Emergency Response Law of the People's Republic of China, WuhuTunghsu Optoelectronic Technology Co., Ltd. has compiled the Plan for Environmental Emergencies of WuhuTunghsu 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 EnvironmentalProtection Bureau for filing again in September 2018 as required (for the record: 340207-2018-044-L).
9. Zhengzhou Xufei Optoelectronic Technology co., ltd
The Company's emergency plan for environmental emergencies, which passes the expert group review, and theemergency plans for hazardous waste accidents, environmental abnormalities in wastewater discharge, radiationsources and exhaust emissions are reviewed.
10.Chongqing Xufuda Optoelectronic Technology Co., Ltd.
The corresponding Emergency Plan Management System has been formulated, and all personnel have beentrained, and emergency plan team members have been publicized.
11.Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
The corresponding Emergency Plan Management System has been formulated, and all personnel have beentrained, and emergency plan team members have been publicized.
Environmental self-monitoring plan
1. 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.
2. Guangxi Sunlong Automobile Manufacturing Co., Ltd
The preparation of the environmental self-monitoring plan is completed on April 30, 2019 and is filed withNanning Municipal Bureau of Ecological Environment. Meanwhile, relevant monitoring data is filled in on amonthly basis on the national pollution source monitoring and management sharing platform as required.
3. Chengdu Tunghsu Intelligent Technology Co., Ltd
Since the company does not have an independent sewage treatment station, the management committee providesunified assistance for treatment, and since there is no independent monitoring equipment and facilities for wastegas and noise, manual instruments are usually used for monitoring. Since the company does not have the expertiseto monitor exhaust gas and noise, the qualification testing company (Sichuan Jiuhe Evaluation Company) isinvited to conduct annual workplace hazard factor testing, and issue a written testing report, which shall be filedwith the system and management committee.
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 monitor the pHvalue of wastewater in real time; In the morning and evening, the pH value of wastewater from the total sewageoutlet is monitored manually to ensure that the wastewater discharge reaches the standard.
5. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The 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.
6. Jiangsu Jixing New Material Co., Ltd
Hardware facilities: In addition to the PH real-time monitoring equipment installed in the sewage treatment stationof Jiangsu Jixing New Material Co., Ltd, 2 sets of PH real-time monitoring equipment, 1 set of COD on-line
monitoring equipment, 1 set of PLC system that stops discharging when exceeding the standard, and 1 set ofreal-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 treatmentof wastewater and exhaust gas, and entrusts a real-time monitoring equipment maintenance unit to regularlymaintain and check environmental protection equipment.
7. Sichuan Xuhong Optoelectronic Technical Co.,Ltd
According to the national environmental protection management requirements, the company has prepared aself-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 ammoniaemitted 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.
8. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has 1 set of waste water on-line monitoring system and 1 set of flue gas on-line monitoring 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.
9. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd
As Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu Tunghsu OptoelectronicTechnology 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.
10. 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 isoutsourced 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.
11.Chongqing 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 by equipmentfailure.
3) Strengthen the operation and management of various pollutant treatment facilities to ensure that pollutants meetthe standards for discharge.
4) Carry out domestic sewage discharge inspection every year, and arrange a third party to carry out noise andworkshop environment inspection.Other environmental information to be disclosed
1. Shanghai Sunlong Bus Co. Ltd
The 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.
2.Guangxi Sunlong Automobile Manufacturing Co., Ltd
On May 16, 2019, the company completed the application for the pollution discharge permit and preparedquarterly and annual pollution discharge permit implementation report according to the requirements of thepollution discharge permit.
3. 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.
4. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
1) The environmental self-monitoring information disclosure website of Fuzhou Tunghsu OptoelectroniccTechnology 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
5. Jiangsu Jixing New Material Co., Ltd
Website of EIA report form full publication for sapphire intelligent production line:http://www.212200.com.Pollution discharge permit of Jiangsu Jixing new material Co.,Ltd.：3211822016000043A，Validity：From August1, 2019 to July 31, 2020.
6. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company publicized the acquisition of the company's environmental protection administrative licensingprocedures, pollution discharge information, solid waste management, environmental risks and monitoringinformation on the environmental credit evaluation website.
7. 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.
8. Zhengzhou Xufei Optoelectronic Technology Co., ltd
Environmental protection credit information management system for enterprises and institutions in Henanprovince, environmental information disclosure system in Henan province, Air pollution source informationfilling system and provincial pollution source self-monitoring systemOther information related to environmental protectionHazardous 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 | Waste residue 900-252-12 | Entrust a qualified third party for disposal | Dangerous waste temporary storage | Painting workshop, assembly shop, commissioning workshop | / | 8.46 | 14.74 | 8.72 |
| Waste thinner 900-252-12 | 2.55 | 3.25 | 2.04 | |||||
| Waste adhesive sealant 900-014-13 | 6.34 | 9.36 | 1.83 | |||||
| Waste empty barrel 900-041-49 | 10.09 | 11.27 | 0.71 | |||||
| Waste rag 900-041-49 | 0 | 0 | 1.3 | |||||
| Used mineral oil 900-218-08 | 0 | 0 | 0.4 | |||||
| Waste activated carbon 900-041-49 | 15.12 | 0 | 20.67 | |||||
| Waste filter 900-041-49 | 0.27 | 0 | 2.52 |
2.Overview of the annual targeted poverty alleviation
(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On January 24, 2019, Shanghai Sunlong Bus Co., Ltd., a wholly-owned subsidiary of the company, donated abus worth 303,000 yuan to Shanghai Private Wenqi Middle School in order to help the future development ofeducation and in response to the "Promoting Education by All Industries" campaign launched by the OverseasChinese Affairs Office of Minhang District, Shanghai. To provide transportation for teachers and students ofWenqi Middle School to participate in social practice activities and to facilitate travel, to offer love and practicalassistance for educational development with practical actions.
2. On February 21, 2019, the company's controlling subsidiary Huzhou Mingshuo Technology actively respondedto the charity donation and assistance activities of the Nanxun District Committee of Huzhou City on the "ThreeYears for Low-income People to Be Well-off", donating a special fund of 50,000 yuan to help needy people so thatall the people in the district can share the fruits of reform and development.
3. In the first half of 2019, the company's controlling subsidiaries Hunan Tunghsu Weigao Medical DeviceTechnology Co., Ltd. and Suzhou Tengda Optical Technology Co., Ltd. responded positively to the call of thestate and actively participated in charitable fund-raising activities such as "poverty eradication for a better future",donating 10,000 yuan and 5,000 yuan respectively to help the poor.XVI.Other material events
□Applicable √ Not applicable
No such cases in the reporting period.XVII. Material events of subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal ShareholdersI.Changes in share capital
1. 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 | 616,094,803 | 10.75% | 616,094,803 | 10.75% | |||||
| 3.Other domestic shares | 616,094,803 | 10.75% | 616,094,803 | 10.75% | |||||
| Incl：Domestic legal person shares | 614,834,053 | 10.73% | 614,834,053 | 10.73% | |||||
| Domestic Natural Person shares | 1,260,750 | 0.02% | 1,260,750 | 0.02% | |||||
| II.Shares with unconditional subscription | 5,114,155,315 | 89.25% | 5,114,155,315 | 89.25% | |||||
| 1.Common shares in RMB | 4,864,155,314 | 84.89% | 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 applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence 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 applicable
Other information necessary to disclose for the company or need to disclosed under requirement from securityregulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II. Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
| Total number of common shareholders at the end of the | 371,574(includ ing 354,540 shareholdders hoding A shares and | Total number of preferred shareholders that had restored the | 0 |
| reporting period | 17,034 shareholders holding B shares) | voting right at the end of the reporting period (if any) (note 8) | ||||||||
| 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 | 775,563,042 | |||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Domestic Non -State-owned legal person | 5.80% | 332,382,171 | 332,382,171 | ||||||
| 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 | 1.63% | 93,363,625 | -3,828,599 | 93,363,625 | |||||
| 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－Daye Trust·Profit increase 3 single fund plan | Other | 1.08% | 62,095,032 | 62,095,032 | ||||||
| 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 | ||||||
| Kunshan Development Zone State-owned Investment Holding Co., Ltd. | State-owned legal person | 0.73% | 41,838,269 | -2,150,000 | 41,838,269 | |||||
| Yang Haihui | Domestic natural person | 0.55% | 31,767,200 | 31,767,200 | ||||||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable)（See Notes 3） | Among the top 10 shareholders, Kunshan Development Zone State-owned Investment Holding Co., Ltd. and Tunghsu Optoelectronic Technology Co., Ltd.－The first ESOP became the top 10 shareholders of the company by participating in the subscription of the company's non-public share issuance in 2015-and the sale-restricted period for those shares held is 36 months, that is, from December 16,2015 to December 17, 2018. Among the top 10 shareholders, Shenzhen Taianer Information Technology Co., Ltd. became the top 10 shareholders of the company by participating in the subscription of the company's non-public share issuance in 2016-and the sale-restricted period for those shares held is 12 months, that is, from August 26,,2016 to August 25, 2017. Among the top 10 shareholders, Shanghai Huimao Enterprise Management Co., Ltd, Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2 Single Fund Trust, and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli No.3 Single Fund Plan became the top 10 shareholders of the company by participating in the subscription of shares of the company's 2017 Non-public Share Issuance and Paying Cash to Purchase Assets and Raising Matching Funds and The Related Transaction, with that: the shares held by Shanghai Huihao Enterprise Management Co., Ltd has a sale-restricted period of 36 months, namely from November 30, 2017 - November 29, 2020; and the shares held by Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2 Single Fund Trust and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli No.3 Single Fund Plan have a sale-restricted period of 12 months, namely from December 29, 2017 to December 28, 2018. | |||||||||
| Explanation on shareholders participating in the margin trading business | Among the top ten shareholders , Tunghsu Group , Baoshi Group and Yang Haihui have relationship and constitute persons taking concerted action. The company does not know whether there is relationship between other 7 shareholders or whether they are persons taking concerted action defined in Administrative Measures Relating to Acquisitions of Listed Companies. | |||||||||
| Shareholding of top 10 shareholders of unrestricted shares | ||||||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | ||||||||
| Share type | Quantity | |||||||||
| 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 | 93,363,625 | RMB Common shares | 93,363,625 | |||||||
| 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 | |||||||
| Kunshan Development Zone State-owned Investment Holding Co., Ltd. | 41,838,269 | RMB Common shares | 41,838,269 | |||||||
| Yang Haihui | 31,767,200 | RMB Common shares | 31,767,200 | |||||||
| Hong Kong Securities Clearing Co. Ltd | 30,984,310 | RMB Common shares | 30,984,310 | |||||||
| Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | Among the top 10 shareholders of unrestricted tradable shares and the top 10 shareholders of common shares, Tunghsu Group Co., Ltd. has a concerted action relationship with Shijiazhuang Baoshi Electric Group Co., Ltd. and Yang Haihui. |
| Notes to the shareholders involved in financing securities (if any)(See Notes 4) | Not applicable |
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Companyhave no buy –back agreement dealing in reporting period.IV. Change of the controlling shareholder or the actual controllerChange of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
VIII. Information about Directors, Supervisors and Senior ExecutivesI. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specificinformation please refer to the 2018 Annual Report.II. Changes in directors, supervisors and senior management staffs
□Applicable √Not applicable
No changes happened to any of the directors, supervisors, or executives in the report period. For details pleaserefer to the Annual Report 2018.
IX. Corporate BondWhether the company has corporate bonds that have been publicly issued and listed on the stock exchange, andnot yet due or due but not folly cashed on the approval date of annual reportYes
1. Basic information of the corporate bonds
| Bond Name | Abbreviated Bond Name | Code | Issue Date | Date Due | Bond Balance(RMB’0000) | Interest Rate | Method of repayment of the principal and interest payment |
| 2015- corporate bond of Tunghsu Optoelectronic Technology Co., Ltd | 15 Tunghsu bonds | 112243 | May 19,2015 | May 19,2020 | 95,355.8 | 6.80% | Interest paid every year, the principal will be repaid with the last unpaid interest in one time as the bond due |
| Listed place or Transaction place for the corporate bonds | Shenzhen Stock Exchange | ||||||
| Arrangement of investor’s eligibility | Investor’s put table right | ||||||
| Information about interest paid and bonds honored during the reporting period | The fourth period bond interest 65,010,903.60 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 | Not applicable | ||||||
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, Tianhe District Guangzhou City | Contacts | Shi Jianhua, Yan Xiangjun | Tel | 020-88836999 | |
| The credit rating agency who follow up and rate the corporate bonds in the reporting period: | ||||||||
| Name | United Rating Co.,Ltd | Business Address | Room 508 Ailiyuan Apartment, No.38 Water Park North Road, Nankai District, Tianjin City | |||||
| During the report period, the bond trustee, credit rating agency employed by the company that have changed, reasons for the change, performing procedures, relevant influence on investors, etc ( if applicable) | Not applicable | |||||||
III. Information about the use of the funds raised by issuing corporate bonds
| The information of the use of the funds raised by issuing corporate bonds and related implementation procedure | Using the funds raised by issuing corporate bonds strictly conforming to the purpose stipulated by Rules of Management and Use of the Raised Funds and the Prospectus, and implemented the corresponding approval procedures |
| Ending balance of the year(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 bondsOn June 21, 2019, United Ratings Co., Ltd. issued trace rating report LHPZ [2019] No.1273 based on thecompany’s 2018. Annual Report.By tracking and rating the long-term credit status of the main body of thecompany and corporate bonds publicly issued by the company, the rating results is determined as the long-termcredit rating AA+，and its outlook is "Steady". The credit rating of "15 Tunghsu Bonds" issued by TunghsuOptooelectric Technology Co., Ltd. is AA+. (For details, please refer to the "Tracking Rating Announcement" ofthe company disclosed on www.cninfo.com on June 25, 2019)V. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repaymentRepayment PlanI. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.Every payment of interest shall not be charged on interest after the interest paying day and the principal shall notbe 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 principal
1. 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 bond
trustee, 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 EntrustedManagement.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. CommitmentsAccording 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 periodThe bond trustee has been continuously following up the company’s credit status, 2018 Entrusted ManagementReport of 2015 Corporate Bonds of Tunghsu Optoelectronic on May 22, 2019.VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting period
Ten Thousands yuan
| Items | As at the end of the reporting period | As at the end of last year | YoY+/-（%）he same period |
| Current ratio | 168.15% | 167.08% | 1.07% |
| Debt ratio | 52.41% | 53.95% | -1.54% |
| Quick ratio | 126.72% | 131.58% | -4.86% |
| Reporting period | The same period of last year | At the same time rate of change | |
| EBITDA interest coverage ratio | 3.51 | 3.44 | 2.03% |
| 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 applicable
IX. The company fails to repay the debt
□ Applicable √ Not applicable
No such cases in the reporting period.X. Information about the repayment of interest and principal for other bonds or debt financing instruments
1. Bonds issuing, interest payment and cashing within the report period
The 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 .
2. Unmatured bonds issuing, interest payment and cashing in previous yearsAs approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635, the company issuedtoward the public 1 billion bones on May 19, 2015. and the fourth period bond interest 65,010,903.6 was paid in fullamount on schedule in the reporting period.
XI.Information about the bank credit obtaining and use, as well as repayment of the bank loans during thereporting periodThe balance of the total amount of the short-term and long-term loans is RMB12,395,625,800.00, increasedRMB1,292,929,548.67 compared with the end of year 2018, 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.
XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuanceof the bonds during the reporting periodDuring 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.XIII.Major events occurred during the reporting periodNilXIV. Whether the corporate bonds have a guarantor
□ Yes √No
X. Financial ReportI. Audit reportHas this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.II. Financial statementsCurrency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by: Tunghsu Optoelectronic Technology Co., Ltd.
June 30,2019
In RMB
| Items | June 30,2019 | December 31,2018 |
| Current asset： | ||
| Cash and bank balances | 19,608,160,332.91 | 19,807,094,397.16 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 3,000,000.00 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 61,194,310.70 | 499,781,503.17 |
| Account receivable | 11,948,970,007.58 | 14,352,781,895.39 |
| Financing of receivables | ||
| Prepayments | 5,058,031,101.05 | 5,215,414,219.51 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 1,180,820,462.92 | 1,125,991,020.55 |
| Including：Interest receivable | 97,484,985.07 | 56,811,961.67 |
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventories | 4,754,313,963.62 | 3,510,786,666.85 |
| Contract assets | ||
| Assets held for sales | 119,355,435.58 | 119,355,435.58 |
| Non-current asset due within 1 year | ||
| Other current asset | 792,954,051.81 | 809,360,778.49 |
| Total of current assets | 43,526,799,666.17 | 45,440,565,916.70 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed |
| Debt investment | ||
| Available for sale of financial assets | 243,158,605.30 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | 580,792,364.92 | 344,430,815.68 |
| Long term share equity investment | 2,191,785,865.01 | 2,174,347,969.22 |
| Other equity instruments investment | ||
| Other non-current financial assets | 548,158,605.30 | |
| Property investment | 711,680,374.74 | 686,993,881.02 |
| Fixed assets | 9,043,235,757.53 | 9,634,463,323.77 |
| Construction in progress | 5,511,187,961.75 | 5,013,941,980.61 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 1,114,095,291.45 | 1,146,949,745.14 |
| Development expenses | 50,589,620.23 | 37,122,235.94 |
| Goodwill | 2,702,403,019.28 | 2,835,672,586.90 |
| Long-germ expenses to be amortized | 24,320,539.97 | 21,884,204.82 |
| Deferred income tax asset | 572,545,713.26 | 533,094,627.68 |
| Other non-current asset | 4,800,933,217.60 | 4,463,496,966.82 |
| Total of non-current assets | 27,851,728,331.04 | 27,135,556,942.90 |
| Total of assets | 71,378,527,997.21 | 72,576,122,859.60 |
| Current liabilities | ||
| Short-term loans | 9,194,934,400.00 | 8,361,106,651.33 |
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | 1,545,392,945.94 | 1,643,167,026.68 |
| Account payable | 6,458,794,541.00 | 8,632,927,106.20 |
| Advance receipts | 1,834,097,832.98 | 1,402,283,662.37 |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 154,026,466.39 | 238,146,977.17 |
| Tax payable | 611,921,439.66 | 817,173,127.12 |
| Other account payable | 2,492,921,065.31 | 2,089,603,676.60 |
| Including：Interest payable | 202,034,241.49 | 117,554,951.58 |
| Dividend payable | 401,117,508.26 | |
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract Liabilities |
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 3,290,141,668.70 | 3,697,392,864.91 |
| Other current liability | 303,821,093.64 | 315,193,128.73 |
| Total of current liability | 25,886,051,453.62 | 27,196,994,221.11 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 3,200,691,400.00 | 2,741,589,600.00 |
| Bond payable | 5,282,105,325.64 | 5,630,818,825.32 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | 1,703,412,663.14 | 2,644,309,592.95 |
| Long-term remuneration payable to staff | ||
| Expected liabilities | 92,169,224.93 | 99,765,750.04 |
| Deferred income | 683,720,240.53 | 676,146,399.31 |
| Deferred income tax liability | 50,271,341.82 | 55,192,983.97 |
| Other non-current liabilities | 508,000,000.00 | 108,000,000.00 |
| Total non-current liabilities | 11,520,370,196.06 | 11,955,823,151.59 |
| Total of liability | 37,406,421,649.68 | 39,152,817,372.70 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 21,816,238,799.56 | 21,786,233,393.78 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | -29,175.80 | -29,175.80 |
| Special reserve | 12,877,156.81 | 12,614,331.35 |
| Surplus reserves | 245,507,019.95 | 245,507,019.95 |
| Common risk provision | ||
| Retained profit | 5,194,036,219.58 | 4,750,977,557.86 |
| Total of owner’s equity belong to the parent company | 32,994,457,818.10 | 32,521,130,925.14 |
| Minority shareholders’ equity | 977,648,529.43 | 902,174,561.76 |
| Total of owners’ equity | 33,972,106,347.53 | 33,423,305,486.90 |
| Total of liabilities and owners’ equity | 71,378,527,997.21 | 72,576,122,859.60 |
Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Wang Cang
2. Balance sheet of the Parent Company
In RMB
| Items | June 30,2019 | December 31, 2018 |
| Current asset： | ||
| Cash and bank balances | 6,365,489,664.34 | 9,732,302,654.23 |
| Transactional financial assets | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 50,000.00 | |
| Account receivable | 159,080,478.35 | 176,563,926.23 |
| Financing of receivables | ||
| Prepayments | 102,252,178.91 | 2,008,364.11 |
| Other account receivable | 8,980,213,046.51 | 6,281,675,319.27 |
| Including：Interest receivable | 27,122,805.61 | 7,521,489.86 |
| Dividend receivable | 500,000,000.00 | 500,000,000.00 |
| Inventories | 181,088,528.76 | 269,759,580.95 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current asset due within 1 year | ||
| Other current asset | 148,973.38 | 148,973.38 |
| Total of current assets | 15,788,272,870.25 | 16,462,508,818.17 |
| Non-current assets： | ||
| Debt investment | ||
| Available for sale of financial assets | 129,500,056.00 | |
| Other investment on bonds | ||
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 28,666,925,896.68 | 26,504,735,200.89 |
| Other equity instruments investment | ||
| Other non-current financial assets | 429,500,056.00 | |
| Property investment | ||
| Fixed assets | 153,180,310.07 | 160,867,244.63 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 9,165,533.60 | 9,339,387.26 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 143,264,158.31 | 119,964,967.85 |
| Other non-current asset | ||
| Total of non-current assets | 29,402,035,954.66 | 26,924,406,856.63 |
| Total of assets | 45,190,308,824.91 | 43,386,915,674.80 |
| Current liabilities | ||
| Short-term loans | 5,269,000,000.00 | 4,278,000,000.00 |
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 7,284,844.84 | 11,500,796.58 |
| Advance receipts | 1,580,498.78 | 1,991,498.78 |
| Contract Liabilities | ||
| Employees’ wage payable | 4,481,839.86 | 4,484,401.86 |
| Tax payable | 10,425,916.65 | 17,959,833.09 |
| Other account payable | 5,411,174,537.35 | 3,656,725,253.66 |
| Including：Interest payable | 170,142,763.88 | 97,197,464.99 |
| Dividend payable | 401,117,508.26 | |
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 1,568,557,987.37 | 1,533,383,333.28 |
| Other current liability | ||
| Total of current liability | 12,272,505,624.85 | 9,504,045,117.25 |
| Non-current liabilities： | ||
| Long-term loan | 496,000,000.00 | |
| Bond payable | 4,682,105,325.64 | 5,630,818,825.32 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | ||
| Deferred income | ||
| Deferred income tax liability | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 5,178,105,325.64 | 5,630,818,825.32 |
| Total of liability | 17,450,610,950.49 | 15,134,863,942.57 |
| 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 | 21,832,453,907.50 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserves | 226,517,795.62 | 226,517,795.62 |
| Retained profit | -45,101,626.70 | 467,252,231.11 |
| Total of owners’ equity | 27,739,697,874.42 | 28,252,051,732.23 |
| Total of liabilities and owners’ equity | 45,190,308,824.91 | 43,386,915,674.80 |
3.Consolidated Income Statement
In RMB
| Item | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 8,475,089,222.93 | 11,129,851,790.88 |
| Incl：Business income | 8,475,089,222.93 | 11,129,851,790.88 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 7,645,968,690.88 | 10,087,183,529.27 |
| Incl：Business cost | 6,571,893,216.94 | 9,021,989,897.09 |
| 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 | 46,727,113.64 | 186,096,120.70 |
| Sales expense | 155,812,716.54 | 93,892,692.42 |
| Administrative expense | 282,118,024.57 | 204,871,395.72 |
| R & D expense | 221,327,523.23 | 185,106,307.04 |
| Financial expenses | 368,090,095.96 | 395,227,116.30 |
| Including：Interest expense | 588,567,514.28 | 595,740,917.45 |
| Interest income | 228,977,031.09 | 198,162,232.24 |
| Add：Other income | 222,651,739.17 | 108,362,056.52 |
| Investment gain（“-”for loss） | 22,050,338.04 | 23,706,518.19 |
| Including: investment gains from affiliates | 17,437,895.79 | 11,836,624.48 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Gains from currency exchange | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | -9,667,362.72 | |
| Impairment loss of assets | -1,753,608.15 | -1,058,589.31 |
| Assets disposal income | -664,826.45 | |
| III. Operational profit（“-”for loss） | 1,062,401,638.39 | 1,173,013,420.56 |
| Add ：Non-operational income | 7,919,928.18 | 5,945,896.93 |
| Less: Non-operating expense | 2,315,427.97 | 2,767,812.01 |
| IV. Total profit(“-”for loss) | 1,068,006,138.60 | 1,176,191,505.48 |
| Less：Income tax expenses | 186,908,717.85 | 282,130,776.24 |
| V. Net profit | 881,097,420.75 | 894,060,729.24 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | 881,097,420.75 | 894,060,729.24 |
| 2.Termination of operating net profit |
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | 844,176,169.98 | 858,296,089.08 |
| 2.Minority shareholders’ equity | 36,921,250.77 | 35,764,640.16 |
| VI. Net after-tax of other comprehensive income | 14,095.23 | |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 7,752.38 | |
| （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. | ||
| 3. Changes in the fair value of investments in other equity instruments | ||
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 7,752.38 | |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2. Changes in the fair value of investments in other debt obligations | ||
| 3.Gains and losses from changes in fair value available for sale financial assets | ||
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8. Translation differences in currency financial statements | 7,752.38 | |
| 9.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | 6,342.85 | |
| VII. Total comprehensive income | 881,097,420.75 | 894,074,824.47 |
| Total comprehensive income attributable | 844,176,169.98 | 858,303,841.46 |
| to the owner of the parent company | ||
| Total comprehensive income attributable minority shareholders | 36,921,250.77 | 35,770,983.01 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.15 | 0.15 |
| (II)Diluted earnings per share | 0.15 | 0.15 |
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB0.00, last period the combined party realized RMB0.00.Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Wang Cang
4. Income statement of the Parent Company
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I. Income from the key business | 118,328,629.33 | 55,315,982.40 |
| Incl：Business cost | 104,268,766.04 | 38,492,540.23 |
| Business tax and surcharge | 3,986,637.43 | 2,172,697.75 |
| Sales expense | ||
| Administrative expense | 16,722,075.57 | 24,293,737.94 |
| R & D expense | 1,697,882.99 | |
| Financial expenses | 144,058,883.12 | 251,600,276.69 |
| Including：Interest expenses | 342,536,623.00 | 353,696,339.28 |
| Interest income | 199,514,566.78 | 102,176,773.07 |
| Add：Other income | 50,000.00 | |
| Investment gain（“-”for loss） | 17,437,895.79 | 5,131,289.44 |
| Including: investment gains from affiliates | 11,835,887.67 | |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | 3,579.22 | |
| Impairment loss of assets | 241.00 | 7,901,312.69 |
| Assets disposal income | ||
| II. Operational profit（“-”for loss） | -134,913,899.81 | -264,013,293.46 |
| Add ：Non-operational income | 378,359.80 | 671.41 |
| Less：Non -operational expenses | 0.15 | |
| III. Total profit(“-”for loss) | -134,535,540.01 | -264,012,622.20 |
| Less：Income tax expenses | -23,299,190.46 | -1,269,693.27 |
| IV. Net profit | -111,236,349.55 | -262,742,928.93 |
| 1.Net continuing operating profit | -111,236,349.55 | -262,742,928.93 |
| 2.Termination of operating net profit | ||
| V. Net after-tax 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. | ||
| 3. Changes in the fair value of investments in other equity instruments | ||
| 4. Changes in the fair value of the company’s credit risks | ||
| 5.Other | ||
| （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. Changes in the fair value of investments in other debt obligations | ||
| 3. Gains and losses from changes in fair value available for sale financial assets | ||
| 4. Other comprehensive income arising from the reclassification of financial assets | ||
| 5.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 6. Allowance for credit impairments in investments in other debt obligations | ||
| 7. Reserve for cash flow hedges | ||
| 8. Translation differences in currency financial statements | ||
| 9.Other | ||
| VI. Total comprehensive income | -111,236,349.55 | -262,742,928.93 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5. Consolidated Cash flow statement
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 12,538,427,324.24 | 9,938,756,230.71 |
| 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 | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received by agent in securities trading | ||
| Tax returned | 159,124,487.52 | 89,994,925.74 |
| Other cash received from business operation | 568,920,464.24 | 730,551,299.36 |
| Sub-total of cash inflow | 13,266,472,276.00 | 10,759,302,455.81 |
| Cash paid for purchasing of merchandise and services | 10,469,678,168.19 | 8,162,424,567.65 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase for Outgoing call loan | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 547,688,074.54 | 608,921,172.96 |
| Taxes paid | 647,487,169.76 | 568,158,273.01 |
| Other cash paid for business activities | 1,007,270,795.35 | 1,336,181,154.53 |
| Sub-total of cash outflow from business activities | 12,672,124,207.84 | 10,675,685,168.15 |
| Net cash generated from /used in operating activities | 594,348,068.16 | 83,617,287.66 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 1,251,030,000.00 | |
| Cash received as investment gains | 13,923,452.07 | |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 139,400.00 | 1,339,040.00 |
| Net cash received from disposal of subsidiaries or other operational units | 393,727,652.59 | |
| Other investment-related cash received | 1,340,340,013.92 | 200,000,000.00 |
| Sub-total of cash inflow due to investment activities | 1,340,479,413.92 | 1,860,020,144.66 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 597,463,088.90 | 2,686,335,621.99 |
| Cash paid as investment | 300,000,000.00 | 408,243,324.50 |
| Net increase of loan against pledge |
| Net cash received from subsidiaries and other operational units | 107,762,094.14 | |
| Other cash paid for investment activities | 543,862,480.99 | 318,237,076.99 |
| Sub-total of cash outflow due to investment activities | 1,441,325,569.89 | 3,520,578,117.62 |
| Net cash flow generated by investment | -100,846,155.97 | -1,660,557,972.96 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 125,000,000.00 | 4,169,500.00 |
| Including: Cash received as investment from minor shareholders | 125,000,000.00 | 4,169,500.00 |
| Cash received as loans | 4,372,774,810.00 | 3,146,840,211.91 |
| Cash received from bond placing | ||
| Other financing –related cash received | 1,873,790,909.69 | 565,785,278.10 |
| Sub-total of cash inflow from financing activities | 6,371,565,719.69 | 3,716,794,990.01 |
| Cash to repay debts | 5,130,065,194.65 | 4,528,169,601.04 |
| Cash paid as dividend, profit, or interests | 680,941,043.24 | 640,756,867.95 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 581,386,717.14 | 640,002,625.89 |
| Sub-total of cash outflow due to financing activities | 6,392,392,955.03 | 5,808,929,094.88 |
| Net cash flow generated by financing | -20,827,235.34 | -2,092,134,104.87 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -2,292,073.51 | -2,652,600.61 |
| V.Net increase of cash and cash equivalents | 470,382,603.34 | -3,671,727,390.78 |
| Add: balance of cash and cash equivalents at the beginning of term | 14,916,637,291.04 | 25,114,660,756.25 |
| VI ..Balance of cash and cash equivalents at the end of term | 15,387,019,894.38 | 21,442,933,365.47 |
6. Cash flow statement of the Parent Company
In RMB
| Items | Semi-annual of 2019 | Semi-annual of 2018 |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 84,884,151.99 | 63,990,000.00 |
| Tax returned | 13,719.30 | |
| Other cash received from business operation | 1,224,517,860.73 | 330,847,011.69 |
| Sub-total of cash inflow | 1,309,402,012.72 | 394,850,730.99 |
| Cash paid for purchasing of merchandise and services | 2,016,245.08 | 33,858,206.35 |
| Cash paid to staffs or paid for staffs | 8,802,854.34 | 16,144,890.38 |
| Taxes paid | 30,828,754.47 | 3,755,213.45 |
| Other cash paid for business activities | 920,560,919.47 | 217,407,719.04 |
| Sub-total of cash outflow from business activities | 962,208,773.36 | 271,166,029.22 |
| Net cash generated from /used in operating activities | 347,193,239.36 | 123,684,701.77 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 1,770,000,000.00 | |
| Cash received as investment gains | 678,923,452.07 | |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow due to investment activities | 2,448,923,452.07 | |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | ||
| Cash paid as investment | 2,141,300,000.00 | 2,617,565,500.00 |
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 19,435,140,168.74 | 12,759,192,480.99 |
| Sub-total of cash outflow due to investment activities | 21,576,440,168.74 | 15,376,757,980.99 |
| Net cash flow generated by investment | -21,576,440,168.74 | -12,927,834,528.92 |
| III. Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 1,741,000,000.00 | 580,000,000.00 |
| Cash received from bond placing | ||
| Other financing –related ash received | 17,708,836,513.48 | 10,804,871,140.21 |
| Sub-total of cash inflow from financing activities | 19,449,836,513.48 | 11,384,871,140.21 |
| Cash to repay debts | 1,322,383,333.28 | 2,276,373,966.68 |
| Cash paid as dividend, profit, or interests | 264,269,240.71 | 348,534,414.26 |
| Other cash paid for financing activities | 750,000.00 | |
| Sub-total of cash outflow due to financing activities | 1,587,402,573.99 | 2,624,908,380.94 |
| Net cash flow generated by financing | 17,862,433,939.49 | 8,759,962,759.27 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | -3,366,812,989.89 | -4,044,187,067.88 |
| Add: balance of cash and cash equivalents at the beginning of term | 9,732,302,654.23 | 11,224,359,236.39 |
| VI ..Balance of cash and cash equivalents at the end of term | 6,365,489,664.34 | 7,180,172,168.51 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | Semi-annual of 2019 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capita | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 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 | 32,521,130,925.14 | 902,174,561.76 | 33,423,305,486.90 | |||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 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 | 32,521,130,925.14 | 902,174,561.76 | 33,423,305,486.90 | |||||
| III.Changed in the current year | 30,005,405.78 | 262,825.46 | 443,058,661.72 | 473,326,892.96 | 75,473,967.67 | 548,800,860.63 | |||||||||
| （1）Total comprehensive income | 844,176,169.98 | 844,176,169.98 | 36,921,250.77 | 881,097,420.75 | |||||||||||
| （II）Investment or decreasing of capital by owners | 30,005,405.78 | 30,005,405.78 | 38,682,277.03 | 68,687,682.81 | |||||||||||
| 1．Ordinary Shares invested by shareholders | 30,005,405.78 | 30,005,405.78 | 38,682,277.03 | 68,687,682.81 | |||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | |||||||||||||||
| （III）Profit allotment | -401,117,508.26 | -401,117,508.26 | -401,117,508.26 | ||||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -401,117,508.26 | -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 comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | 262,825.46 | 262,825.46 | -129,560.13 | 133,265.33 | |||||||||||
| 1. Provided this year | 2,075,391.67 | 2,075,391.67 | 2,075,391.67 | ||||||||||||
| 2．Used this term | -1,812,566.21 | -1,812,566.21 | -129,560.13 | -1,942,126.34 | |||||||||||
| （VI）Other | |||||||||||||||
| IV. Balance at the end of this term | 5,730,250,118.00 | 21,816,238,799.56 | 4,422,320.00 | -29,175.80 | 12,877,156.81 | 245,507,019.95 | 5,194,036,219.58 | 32,994,457,818.10 | 977,648,529.43 | 33,972,106,347.53 |
Amount in last year
In RMB
| Items | Semi-annual of 2018 | ||||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| share Capita | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profit | Other | Subtotal | |||||
| preferred stock | Sustainable debt | Other | |||||||||||||
| I.Balance at the end of last year | 5,730,250, | 21,987,405,2 | 4,422,320.00 | -4,518.45 | 1,983,921.21 | 224,133,824. | 3,010,372,29 | 30,949,718,5 | 1,219,031,326. | 32,168,749,868 | |||||
| 118.00 | 20.42 | 86 | 6.37 | 42.41 | 49 | .90 | |||||||||
| Add: Change of accounting policy | |||||||||||||||
| Correcting of previous errors | |||||||||||||||
| Merger of entities under common control | |||||||||||||||
| Other | |||||||||||||||
| II.Balance at the beginning of current year | 5,730,250,118.00 | 21,987,405,220.42 | 4,422,320.00 | -4,518.45 | 1,983,921.21 | 224,133,824.86 | 3,010,372,296.37 | 30,949,718,542.41 | 1,219,031,326.49 | 32,168,749,868.90 | |||||
| III.Changed in the current year | -193,677,513.88 | 7,752.38 | 6,552.46 | 457,178,580.81 | 263,515,371.77 | -444,517,148.17 | -181,001,776.40 | ||||||||
| （1）Total comprehensive income | 7,752.38 | 858,296,089.08 | 858,303,841.46 | 35,764,640.16 | 894,068,481.62 | ||||||||||
| （II）Investment or decreasing of capital by owners | -270,364.11 | -270,364.11 | 4,169,500.00 | 3,899,135.89 | |||||||||||
| 1．Ordinary Shares invested by shareholders | 4,169,500.00 | 4,169,500.00 | |||||||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||||
| 3．Amount of shares paid and accounted as owners’ equity | |||||||||||||||
| 4．Other | -270,364.11 | -270,364.11 | -270,364.11 | ||||||||||||
| （III）Profit allotment | -401,117,508.27 | -401,117,508.27 | -401,117,508.27 | ||||||||||||
| 1.Providing of surplus reserves | |||||||||||||||
| 2.Providing of common risk provisions | |||||||||||||||
| 3．Allotment to the owners (or shareholders) | -401,117,508.27 | -401,117,508.27 | -401,117,508.27 | ||||||||||||
| 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 comprehensive income carry-over retained earnings | |||||||||||||||
| 6．Other | |||||||||||||||
| (V). Special reserves | 6,552.46 | 6,552.46 | 6,552.46 | ||||||||||||
| 1. Provided this year | 6,552.46 | 6,552.46 | 6,552.46 | ||||||||||||
| 2．Used this term | |||||||||||||||
| （VI）Other | -193,407,149.77 | -193,407,149.77 | -484,451,288.33 | -677,858,438.10 | |||||||||||
| IV. Balance at the end of this term | 5,730,250,118.00 | 21,793,727,706.54 | 4,422,320.00 | 3,233.93 | 1,990,473.67 | 224,133,824.86 | 3,467,550,877.18 | 31,213,233,914.18 | 774,514,178.32 | 31,987,748,092.50 |
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | Semi-annual of 2019 | |||||||||||
| Share capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | ||||||||||
| I.Balance at the end of last year | 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 | ||||||
| Add: Change of accounting policy | ||||||||||||
| Correcting of previous errors | ||||||||||||
| Other | ||||||||||||
| II.Balance at the beginning of current year | 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 | ||||||
| III.Changed in the current year | -512,353,857.81 | -512,353,857.81 | ||||||||||
| （I）Total comprehensive income | -111,236,349.55 | -111,236,349.55 | ||||||||||
| (II) Investment or decreasing of capital by owners | ||||||||||||
| 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 | ||||||||||||
| （III）Profit allotment | -401,117,508.26 | -401,117,508.26 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 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 |
| comprehensive income carry-over retained earnings | ||||||||||||
| 6．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 | -45,101,626.70 | 27,739,697,874.42 |
Amount in last year
In RMB
| Items | Semi-annual of 2018 | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Retained profit | Other | 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 | -27,531,923.63 | -663,860,437.20 | -691,392,360.83 | |||||||||
| （I）Total comprehensive income | -262,742,928.93 | -262,742,928.93 | ||||||||||
| (II) Investment or decreasing of capital by owners | -27,531,923.63 | -27,531,923.63 | ||||||||||
| 1．Ordinary Shares invested by shareholders | -27,531,923.63 | -27,531,923.63 | ||||||||||
| 2．Holders of other equity instruments invested capital | ||||||||||||
| 3.Amount of shares paid and accounted as | ||||||||||||
| owners’ equity | ||||||||||||
| 4．Other | ||||||||||||
| （III）Profit allotment | -401,117,508.27 | -401,117,508.27 | ||||||||||
| 1.Providing of surplus reserves | ||||||||||||
| 2．Allotment to the owners (or shareholders) | -401,117,508.27 | -401,117,508.27 | ||||||||||
| 3．Other | ||||||||||||
| (IV) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | ||||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | ||||||||||||
| 3．Making up losses by surplus reserves. | ||||||||||||
| 4.Change amount of defined benefit plans that carry forward Retained earnings | ||||||||||||
| 5．Other comprehensive income carry-over retained earnings | ||||||||||||
| 6．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 | 21,833,675,749.27 | 4,422,320.00 | 205,144,600.53 | 12,150,546.39 | 27,776,798,694.19 |
III. Brief introduction of the CompanyApproved 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 stocklimited company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang
Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua 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 RMB1806 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
thBoard of Directors and the Regulatory Approval No. [2015] 2270 by China SecuritiesRegulatory 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
thBoard 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, After the repurchase of shares was cancelled, the share capital waschanged to RMB 3,835,000,526.00.According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to Tunghsu Optoelectronic
Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved in the 7th boardof the forty-eight meeting and the first extraordinary shareholders' general meeting，it is approved that thecompany issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued stocks isless than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and themodified 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, 2019, 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.
Tung Financial statements and notes to the financial statements approved at the 3rd meeting of the 9th Board ofDirectors on August 30, 2019.
The company's business scope: investing in the project investments with its own funds; research and developmentof machinery equipment and electronic products; manufacturing and production-process development of variousnon-standard equipments and components; processing and sales of electronic products for grinding machine(excluding public safety equipment and devices); self operated and agent import and export business of variouscommodities and technologies; computer system integration, software development, technical consulting;installation of electrical and mechanical equipment (not including pre-licensing ones), engineering advice. (All ofthe above scope, excluded those prohibited or restricted by laws, regulations and State Council decisions; mattersneeding approval by other departments can be operated after the approval).On June 30, 2019, 25 subsidiaries and 97 sub-subsidiaries were included in the consolidation scope by thecompany, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the companyincreased by 7 companies year on year at this reporting period（Including：12 new Sub-subsidiaries companieswere added, 2 were disposed of and 3 were cancelled）, see details at Note 8“Change of consolidation scope.IV.Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the 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 of
measurement 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 Net carryingamount which conforms to the condition of being on-sales. When assets are impaired, provisions for assetimpairment are made in accordance with relevant requirements.
2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period, andhasn’t the major issues impacting on the sustainable operation ability.
V. The company's major accounting policies, accounting estimates and prior errorsSpecific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement on compliance with accounting standards for business EnterprisesThe Company state: the financial statements prepared are in line with the requirements in enterprise accounting standards in line with of system, and have truly and completely reflected of the financial status in June30,2019 , operational results, cash flow, and other relevant information of January –June 2019.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from January1 to December 31 as one accounting year.
3. The operating cycle
The normal business cycle refers to the period starting from assets purchased for processing to cash or cashequivalents converted. The Company uses a 12-month operating cycle as liquidity classification criteria for its
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 control
A 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 less
than the deductible temporary difference, the difference will be charged into profit or loss in current period.For a business combination involving enterprise not under common control and achieved in stages, it should 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 Net carrying amount of equityinvestment held before the acquisition date and the cost of new investment on acquisition date. When the stockequity held before the acquisition date involving other consolidated incomes, at the disposal date, otherconsolidated incomes related to this investment shall be subjected to accounting treatment (i.e. except thecorresponding share accounted by equity method in the change due to remeasurement and setting of netindebtedness or net assets of benefit plan, the remaining shall be transferred to the current investment income) onthe same basis as that adopted by the acquiree for the direct disposal of relevant assets or liabilities.In consolidated financial statement, the share equity held before the acquisition date shall be measured againaccording to the fair value of this share equity on the acquisition date, the balance of the fair value and its Netcarrying amount shall be counted in the current investment income; when the share equity held before theacquisition date involving other consolidated incomes, other consolidated incomes related shall be subjected toaccounting treatment (i.e. except the corresponding share accounted by equity method in the change due toremeasurement and setting of net indebtedness or net assets of benefit plan, the remaining shall be transferred tothe current investment income of the acquisition date) on the same basis as that adopted by the acquiree for thedirect disposal of relevant assets or liabilities.
6. Preparation on consolidation financial statements
(1) Preparation on consolidation financial statements
The company starts to include the actual control right to the net assets and the production and 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.
(2) Method of preparing consolidated financial statements
Meanwhile, for the subsidiaries increased through the business combination under non-common control, thebusiness performance and the cash flow after the acquisition date have been properly included in the consolidatedprofit statement and the consolidated cash flow statement, and the opening balance and the comparison balance ofthe consolidated financial statement shall not be adjusted. For the subsidiaries increased through the businesscombination under common control, the business performance and the cash flow from the beginning of currentcombination period to the combination date have been properly included in the consolidated profit statement andthe consolidated cash flow statement, and the comparison balance of the consolidated financial statement shall beadjusted 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 subsidiaries
shall 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 III, 14“Long-term Equity Investment” or Notes III, 10 “Financial Instruments”.For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till 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 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 22 (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 equivalent
Cash 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 instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities or equityinstruments of other parties. When the company becomes a party to a financial instrument contract, a financialasset or financial liability is recognized.Financial assets and financial liabilities are measured at fair value upon initial recognition: ① For financial assetsand financial liabilities measured at fair value, whose changes are included in current profits and losses, relevanttransaction costs are directly included in current profits and losses; ② For other types of financial assets andfinancial liabilities, relevant transaction costs are included in the initial recognition amount.If a financial asset or financial liability meets one of the following conditions, it indicates that the purpose ofholding the financial asset or bearing the financial liability is transactional: ① The purpose of obtaining therelevant financial asset or bearing the relevant financial liability is mainly to sell or repurchase in the near future;
② Relevant financial assets or financial liabilities are part of the identifiable portfolio of financial instrumentsunder centralized management at the time of initial recognition, and there is objective evidence indicating thatthere is a short-term profit pattern in the near future; ③ Relevant financial assets or financial liabilities arederivatives, except derivatives that meet the definition of financial guarantee contract and derivatives designatedas effective hedging instruments.
(1) Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified into financial assets measuredby amortized cost, financial assets measured by fair value and whose changes are included in other comprehensiveincome, and financial assets measured by fair value and whose changes are included in current profits and lossesaccording to the company's business mode of managing financial assets and the contractual cash flowcharacteristics of financial assets. Subsequent measurement of financial assets depends on their classification.
①Financial assets measured at amortized cost
The financial assets that meet the following conditions at the same time are classified as financial assets measuredin amortized cost: The business mode for managing the financial assets is aimed at collecting the contract cashflow; The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is onlythe payment of principal and interest based on the amount of outstanding principal. The Company recognizesinterest income for such financial assets according to the effective interest rate method. Gains or losses arisingfrom derecognition of such financial assets and losses arising from impairment are directly included in currentprofits and losses.
②Financial assets measured at fair value and changes included in other comprehensive incomeThe financial assets that meet the following conditions at the same time are classified as financial assets measuredat fair value and whose changes are included in other comprehensive income: The business mode for managingthe financial assets of the Company is aimed at both collecting the contractual cash flow and selling the financialassets; The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is onlythe payment of principal and interest based on the amount of outstanding principal. Such financial assets aremeasured at fair value and their changes are included in other comprehensive gains, but impairment losses orgains, exchange gains and losses and interest income calculated according to the actual interest rate method areincluded in current profits and losses. When such financial assets are derecognized, the changes in fair valueaccumulated in other comprehensive income will be carried forward to the current profits and losses.
③Financial assets measured at fair value and changes included in current profits and lossesThe above-mentioned financial assets measured in amortized cost and financial assets other than those measuredat fair value with changes included in other comprehensive income are classified as financial assets measured at
fair value with changes included in current profits and losses. At the time of initial recognition, in order toeliminate or significantly reduce accounting mismatch, financial assets can be designated as financial assetsmeasured at fair value with changes included in the current profits and losses. In regard with such financial assets,fair value is adopted for subsequent measurement, and all changes in fair value are included in current profits andlosses.When the company changes its business mode of managing financial assets, it will reclassify all relevant financialassets affected.
(2) Classification and measurement of financial liabilities
The Company's financial liabilities are classified into: financial liabilities measured at amortized cost and financialliabilities measured at fair value with changes recorded in current profits and losses upon initial recognition.Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured atfair value at the time of initial measurement with changes included in current profits and losses: ① Thedesignation can eliminate or significantly reduce accounting mismatch; ② According to the company's riskmanagement or investment strategy stated in official written documents, the financial liability portfolio orfinancial asset and financial liability portfolio is managed and evaluated on the basis of fair value, and reported tokey management personnel within the company on this basis. Once the designation is made, it cannot be revoked.Financial liabilities designated to be measured at fair value with changes included in current profits and losses areincluded in other comprehensive income. The amount of changes in fair value caused by changes in the company'sown credit risk is included in other comprehensive income; Other changes in fair value are included in currentprofits and losses. When the financial liability is derecognized, the accumulated gains or losses previouslyincluded in other comprehensive income are transferred out of other comprehensive income and included inretained income.
(3) Derecognition of financial assets and financial liabilities
Financial assets that meet one of the following conditions shall be derecognized:
① Termination of the contractual right to receive cash flow from the financial asset;
② The financial asset has been transferred, and the Company has transferred almost all risks and rewards on theownership of the financial asset to the transferee;
③ The financial asset has been transferred. Although the Company has neither transferred nor retained almost allrisks and rewards on the ownership of the financial asset, it has given up its control over the financial asset.If the current obligation of a financial liability (or part thereof) has been discharged, the Company shall terminatethe recognition of the financial liability (or part thereof).
(4) Impairment of financial assets
1) For financial assets measured in amortized cost, financial assets measured at fair value with changes includedin other comprehensive income, the Company recognizes loss reserves on the basis of expected credit losses.The Company takes into account reasonable and reliable information on historical events, current situation andfuture economic situation forecasts, and uses the risk of default as the weight to calculate the probability weightedamount of the present value of the difference between the cash flow receivable from the contract and the cash flowexpected to be received to confirm the expected credit loss.On each balance sheet date, the Company separately measures the expected credit losses of financial instrumentsat different stages. If the credit risk of financial instruments has not increased significantly since the initialconfirmation, it is in the first stage. The Company measures the loss reserve according to the expected credit lossin the next 12 months; If the credit risk of a financial instrument has increased significantly since its initialrecognition but no credit impairment has occurred, it is in the second stage. The Company measures the lossreserve according to the expected credit loss of the financial instrument throughout the duration; If a financialinstrument has suffered credit impairment since its initial recognition, it is in the third stage. The Companymeasures the loss reserve according to the expected credit loss of the instrument throughout the duration.For financial instruments with low credit risk on the balance sheet date, the Company assumes that their creditrisk has not increased significantly since the initial confirmation, and measures the loss reserve according to theexpected credit loss in the next 12 months.For financial instruments in the first and second stages and with low credit risk, the Company calculates interestincome based on the book balance before deducting impairment provisions and the actual interest rate. Forfinancial instruments in the third stage, the interest income shall be calculated according to their book balanceminus the amortized cost after impairment provision and the actual interest rate.The Company determines the expected credit losses of relevant financial instruments according to the followingmethods:
① For financial assets, credit loss is the present value of the difference between the contract cash flow to becollected by the company and the cash flow expected to be collected;
② For lease receivables, credit loss is the present value of the difference between the contract cash flow to becollected by the company and the cash flow expected to be collected;
③ For withdrawn loan commitments, the credit loss shall be the present value of the difference between thecontractual cash flow to be collected by the enterprise and the cash flow expected to be collected when the holderof the loan commitment withdraws the corresponding loan. The Company's estimation of the expected credit lossof the loan commitment shall be consistent with its expectation of the withdrawal of the loan commitment.
④ For a financial guarantee contract, credit loss shall be the estimated amount of payment made by the enterpriseto the contract party for credit loss incurred, less the present value of the difference between the amount theenterprise expects to collect from the contract party, the debtor or any other party.
⑤ For financial assets that have suffered credit impairment on the balance sheet date but are not purchased orincurred credit impairment, credit loss is the difference between the book balance of the financial asset and thepresent value of the estimated future cash flow discounted at the original actual interest rate.
2) For receivables, regardless of whether there is any significant financing component, the Company considers allreasonable and reliable information, including forward-looking information, estimates the expected credit loss ofreceivables in a single or combined way, and adopts a simplified model of expected credit loss, and alwaysmeasures the loss reserve according to the expected credit loss throughout the duration. The accrual method is asfollows:
① At the end of the period, an impairment test shall be conducted separately for receivables that have objectiveevidence of impairment. Impairment losses shall be recognized and provision for bad debts shall be madeaccording to the difference between the present value of the estimated future cash flow and its Net carryingamount.
② When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, theCompany divides the receivables portfolio according to the credit risk characteristics and calculates the expectedcredit loss based on the portfolio. For receivables classified as risk portfolios, the Company refers to theexperience of historical credit losses and calculates the expected credit losses based on the current situation andthe forecast of future economic conditions. The Company will include the accrued or reversed loss reserves intothe current profits and losses.
(5) Transfer of financial assets
If the company has transferred almost all risks and rewards in the ownership of the financial asset to the transferee,the confirmation of the financial asset shall be terminated; If almost all risks and rewards on the ownership of afinancial asset are retained, the financial asset shall continue to be recognized.If the Company neither transfers nor retains almost all risks and rewards in the ownership of financial assets, itshall be handled according to the following situations respectively: If the control over the financial assets is notretained by the company, the recognition of the financial assets shall be terminated, and the rights and obligationsarising from or retained in the transfer shall be separately recognized as assets or liabilities; If the control over thefinancial asset is retained by the company, the relevant financial asset shall continue to be recognized according tothe extent that it continues to be involved in the transferred financial asset, and the relevant liabilities shall berecognized accordingly.
11.Notes receivble
Please refer to section 12 Accounts Receivable for details
12.Account receivable
For accounts receivable, refer to the description of impairment of financial assets in Section 10 and FinancialInstruments (4):
(1)The accounts receivable of bad debt provisions made by credit risk Group
| Name | Withdrawing Method |
| Aging Group | Aging Analysis Method |
| Other Group | Other method |
In Group ,Accounts on age basis in the portfolio：
| 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 other method for bad debt provision：
| 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,etc. | 0.00% | 0.00% |
13. Financing of receivables
Not applicable
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other receivablesDetermination method of expected credit loss of other receivables and accounting treatment methodSame as 12, "Accounts Receivable"
15. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1)Classification of Inventories
This 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 Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured bytheir actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall bemeasured with the weighted average method when they are being sent out. Low-value consumption goods shall bewritten off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall berecorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall makethe 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 of
the 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.
16. Contract assets
Not applicable
17.Contract cost
Not applicable
18. Held-for-sale assets
The Company will retrieve its Net carrying amount by means of selling assets (including the exchange ofcommercial non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, andwhen meeting two of the following conditions, the Net carrying amount will be divided into on-sales category:
(1) When a certain non-monetary assets or a certain disposal group sells such kind of assets in similar transactionsin accordance with the convention , assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment,predicting that selling will be completed within one year.( The selling, which can only be sold after 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 remeasuredand divided into on-sales category on balance sheet date, if its Net carrying amount is higher than the net amountafter fair value deducts selling expense, the Net carrying amount 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 Netcarrying amount of goodwill will be deducted first, and its Net carrying amount will then be deductedproportionally according to the Net carrying amount’s percentages of all non-current assets in the disposal groupwhich can be adopted by the measurement stipulations of Accounting Standards for Business Enterprises NO.42-On-sales Non-current Assets, Disposal Groups and Operation TerminationIf any increment occurs in the net amount after the on-sales non-current assets on the subsequent balance sheetdate 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 Net carrying amount 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-sales category,the Company will not continue to divide it into on-sales category or remove the non-current assets from theon-sales disposal group, and the valuation will be made according to the lower one between two of followings:
(1)Net carrying amount before being divided into on-sales category, and the amount of money after being underthe situation where Net carrying amount is supposed not to be divided into on-sales category and adjustment ismade in depreciation, amortization or impairment which should have been confirmed. （2）Recoverable amount.When derecognizing the on-sales non-current assets or disposal group, the Company will count the gains andlosses which are yet to be confirmed into the current profits and losses.
19.Creditor's rights investment
Not applicable
20.Other Creditor's rights investment
Not applicable
21.Long-term account receivable
Determination method and accounting treatment method of expected credit loss of Long-term receivablesSame as 12, "Accounts Receivable"
22.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 without controlof, joint control of, or significant influence over, an investee as financial assets available-for-sale or financialassets at fair value through profit or loss. Please refer to Note III 10 “Financial instruments” for detail.Joint control refers to the contractually agreed sharing of control of an arrangement, which exists only 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 Net carrying amount of the stockholder's equity of the merged enterprise as the initial cost of the long-termequity investment. The difference between the initial cost of the long-term equity investment and the payment incash, non-cash assets transferred as well as the Net carrying amount of the debts borne by the merging party shalloffset against the capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall beadjusted. If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date ofcombination, regard the share of the Net carrying amount of the stockholder's equity of the merged enterprise asthe initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as thecapital stock, while the difference between the initial cost of the long-term equity investment and total face valueof the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, theretained earnings shall be adjusted. Business combination under common control achieved in stages by severaltransactions shall determine whether the transactions belong to one package. If the transactions belong to onepackage, the Company accounted these transactions as one transaction with control of the investee. If thetransactions do not belong to one package, on the date of combination, the Company shall regard the share of theNet carrying amount of the owner'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 sum of Net carryingamount of long-term equity investments prior to the combination and the Net carrying amount of considerationpaid at the date of combination in order to achieve control of the investees shall offset against the capital reserve.If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. No accounting treatment willbe made for the other comprehensive income arising from equity investment under equity method before thecombination date or recognized with available-for-sale financial 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 Net carrying amount of long-term equity investment beforeacquisition and cost of additional investment. For equity investments previously accounted under equity method,
other comprehensive income related to these investments does not change. For equity investments previouslyaccounted as financial assets available for sale, difference between fair value and Net carrying amount andaccumulated changes in fair value originally recorded in other comprehensive income shall be transferred to profitor loss of current period.The direct cost for the business combination of the combining party shall, including the expenses for audit,assessment and legal services, be recorded into the profits and losses at the current period.
Besides the long-term equity investments formed by business combination, the initial cost of a long-term 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 Net carrying amount of transferred assets. (e) The initial cost of a long-terminvestment shall be the fair value of the long-term investment; etc. The initial cost also consists of the expensesdirectly relevant to the obtainment of the long term equity investment, taxes and other necessary expenses.Long-term equity investment which, due to additional investment, can exercise significant influence over, jointcontrol of, but not control of, the investees, shall recognize its cost as the sum of fair value of long-term equityinvestment before additional investment and cost of additional investment according to Accounting Standard forBusiness Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Subsequent Measurement and Recognition Method
Long-term equity investments which are the Company with joint control of (excluding joint operation), 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 Net carrying amount
shall be accounted in the profit or loss of current period. When the assets sold by the Company to associates orjoint ventures constitute an operation, the difference between consideration paid and Net carrying amount of theoperation shall be recorded in profit or loss of current period. When the assets bought by the Company fromassociates or joint ventures constitute an operation, gain or loss related shall be recognized according toAccounting Standard for Business Enterprises No.20-Business Combination.The Company discontinues recognizing its share of net losses of the investee after the carrying amount of 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 equity investmentsdue to acquisition of non-controlling shares and attributable share of invested entity’s identifiable net assetsaccumulated since acquisition date (or consolidation date) at shareholding ratio after acquisition, shall adjustcapital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
(1) Disposal of long-term equity investments
In consolidated financial statements, when parent company partially disposes long-term equity investments insubsidiaries 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 III 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 after disposalshall 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 disposal shallnot change. The Company shall account for proportionate amount previously recognized in other comprehensiveincome, arising from according equity method or recognition and measurement standard of financial instrumentsbefore control of investees, in relation to that investment on the same basis as would have been required if theinvestee had directly disposed of the related assets or liabilities. The amount in other comprehensive income shallbe 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 previously
recognized 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, retainedshares shall be accounted for under recognition and measurement standard of financial instruments and differencebetween fair value and carrying amount shall be recorded in current period profit or loss. The Company shallaccount for amount previously recognized in other comprehensive income arising from equity method in relationto that investment on the same basis as would have been required if the investee had directly disposed of therelated 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.
23. Investment real estate
The measurement mode of investment propertyThe measurement by the cost methodDepreciation or amortization methodInvestment property refers to the properties held for the purpose of generating rent and/or capital appreciation.The company’s investment property includes the land use right rented and the constructions leased.The Company makes initial measurement at the costs that the properties is acquired and records as part of 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.
24. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental 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 | 5 | 3.17 |
| the real estate title certificate or land use right certificate) or 30 years in case of no period of title | ||||
| Kiln | Straight-line method | 5 | 5 | 19 |
| Platinum passage | Straight-line method | 3 | 95.50 | 1.5 |
| Glass flat-panel and other equipment | Straight-line method | 15 | 5 | 6.33 |
| other equipment | Straight-line method | 10 | 5 | 9.5 |
| Transportation equipment | Straight-line method | 5 | 5 | 19 |
| Temporary equipment | Straight-line method | According to the length of the project | 0 | |
| Testing, quality inspection, office equipment, tools and other tool | Straight-line method | 5 | 5 | 19 |
The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost has nolosses. Hence, the channel has a higher rate of net residual value.Thereinto, the fixed asset whose asset impairment provision has been withdrawn should also have its accumulatedamount deducted to count and confirm the depreciation rate.When the year of the fixed asset comes to an end, the Company will review its service life, net residual value anddepreciation 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)Cognizance evidence and pricing method of financial leasing fixed assetsFixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that theownership could be obtained upon lease expiration; otherwise, the Company chooses the shorter of the leaseperiod and the remaining useful life to depreciate the assets.When the year of the fixed asset comes to an end, the Company will review its service life, net residual value anddepreciation 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.
(4)Charge for Major Overhaul
The Company conducts regular checking on major overhaul fee incurred in the fixed asset, and any parts of thefee that have unambiguous evidence to indicate they conform with the condition for confirming fixed asset will becounted into the fixed asset costs, otherwise into the profit and loss of the current period. During the intervalperiod of regular major overhaul, the fixed asset will be depreciated as before.
25. Construction in progress
The 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.
26. Borrowing expenses
Borrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses, exchangedifferences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to the acquisition,construction or production of qualifying asset are capitalized when expenditures for such asset and borrowingcosts are incurred and activities relating to the acquisition, construction or production of the asset that arenecessary 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 or
sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing, the amount of the capitalized interest is the actualinterest 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 a specific-purposeborrowing denominated in foreign currency are capitalized as part of the cost of the qualifying asset. Theexchange 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 to beacquired, constructed or produced through a long period of time, in order to become ready for its intended use orsale.If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowingcost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the specialborrowings times the capitalization rate of the used general borrowings, which is determined by the weightedaverage interest rate of the general borrowings.
27. Biological assets
Not applicable
28. Oil-gas assets
Not applicable
29. Assets of the right to use
Not applicable
30.Intangible assets
1. 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 Net carrying amount of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into 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 development
expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,the project will enter the development stage.
31. Impairment of the long-term assets
Fixed 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.
32.Long-term amortizable expenses
Long-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
33.Constract Liabilities
Not applicable
34 Employees’ Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ services 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 off
entirely 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 benefits
Post-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 benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourageemployees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation,post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for thedisabled, long-term profit sharing plans etc.
35. Lease liabilities
Not applicable
36. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;B. Fulfillment of the obligations that lead to cash flow out of the Company;C. The amount of the obligations that can be measured reliably.If it is expected that a third party can compensate for all or partial expenditures to pay off the 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 Net carrying amount of the recognized liabilities.
37. 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 fairvalue by reference to the quotation prevailing in the active market. For those that there is no active market for, theoptions 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 latestnumber changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity ofestimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
38.Preferred shares, perpetual capital securities and other financial instrumentsNot applicable
39.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industryNoWhether implemented new revenue guidelines
□ Yes √ No
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflowof capital has nothing to do with the economic interests of the owner of investment. The company involved in income, including revenue from selling goods, income of labor ,transferring assets use right andConstruction contract income.
(1) Merchandise sales
The merchandises will be transferred to the purchaser when they meet with both the major risk and reward of themerchandise ownership; The Company will no longer keep the continuous management right which is usuallyrelated to the ownership, and no longer carry out valid control on the merchandises sold; The amount of incomecan be reliably calculated; Relevant economic interest can inflow; Relevant costs incurred or about to incur can bereliably 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 havetheir 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 whenthe goods are delivered to the customer and invoiced according to the contract.; Those which are engaged inexport sales business will have their revenue recognized when receiving the export certificate(customsdeclaration).
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue can be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the transaction 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, the sale 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 is able toflow into the enterprise, and costs related to the property management service can be reliably calculated, therealization of property management income will be confirmed.
(3) Use Rights of Assets on Alienation
The right of using transferred asset includes lease earning, intermediate business income, interest income andusage fee income.When the right of use the transferred asset can, at the same time, conform with the condition that relevant interestincome is likely to inflow and the income amount can be reliably calculated, the income of the right of use thetransferred asset can be confirmed. The interest income will be counted and confirmed according to the time andactual 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 relatedto 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.
40.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
Government subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from 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 loss bystages 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 the
recognized 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.
41. Deferred income tax assets/Deferred income tax liability
The balance between the Net carrying amount and the tax basis of some items of assets and liabilities, as well asthe temporary differences issued as the balance between the Net carrying amount and the tax basis of the tax basisitems that unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shallbe determined as the deferred income tax assets and the deferred income tax liabilities in accordance with thebalance sheet 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 Net carrying amount of the deferred income tax assets shall be re-checked at the balance sheet date. The Netcarrying amount of the deferred income tax assets shall be written-down if it is unlikely to obtain sufficienttaxable income in the future to deduct the benefit of the deferred tax assets and the written-down amount shall becarried forward if it is likely to obtain sufficient taxable income.
42.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as 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 Leases
At 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.
43. Other significant accounting policies and estimates
（1）Discontinued Operation
①Discontinued 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 capitalreserve (share premium).
44.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 |
| On April 30, 2019, the Ministry of Finance issued the Notice on Revising and Issuing the Format of Financial Statements for General Enterprises in 2019 (CK [2019] No.6), which revised the format of financial statements for general enterprises | The company will hold the 3rd meeting of Ninth board meeting and the 2nd meeing of ninth meeing board of supervisors on August 30,2019 to review and approve the Notices on the change of accounting |
| and is applicable to the interim financial statements and annual financial statements for non-financial enterprises in 2019 and the financial statements for subsequent periods that implement the Accounting Standards for Enterprises. | policy. | |
| On March 31, 2017, the Ministry of Finance issued revised Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments (CK [2017] No.7), Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets (CK [2017] No.8) and Accounting Standards for Business Enterprises No.24-Hedge Accounting (CK [2017] No.9). The revised Accounting Standards for Business Enterprises No.37-Presentation of Financial Instruments (CK [2017] No.14) (collectively referred to as "New Financial Instrument Standards") was issued on May 2, 2017, requiring domestic listed enterprises to implement it from January 1, 2019. The revised Accounting Standards for Business Enterprises No.7-Exchange of Non-monetary Assets (CK [2019] No.8) is implemented on June 10, 2019, and the revised Accounting Standards for Business Enterprises No.12-Debt Restructuring (CK [2019] No.9) is implemented on June 17, 2019. | The company will hold the 3rd meeting of Ninth board meeting and the 2nd meeing of ninth meeing board of supervisors on August 30,2019 to review and approve the Notices on the change of accounting policy. |
Accounting policy changes arising from the implementation of the new accounting standards for businessenterprisesOn April 30, 2019,The Ministry of Finance issued the Notice on Amending the Format of Financial Statements ofGeneral Enterprises in 2019 (CK No. [2019] 6.)The impact of the company's implementation of this accounting policy on the items and amounts presented in theprevious financial statements is as follows：
| Name of affected item in the statements | Affected amount of December 31, 2018 / 2018 Increase + / decrease - - |
| Notes receivable | +499,781,503.17 |
| Account receivable | +14,352,781,895.39 |
| Notes receivable & account receivable | -14,852,563,398.56 |
| Notes payable | +1,643,167,026.68 |
| Account payable | +8,632,927,106.20 |
| Notes payable & Account payable | -10,276,094,132.88 |
(2) Change of main accounting estimations
□Applicable√ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New StandardsGoverning Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated balance sheet
In RMB
| Items | December 31, 2018 | January 1, 2019 | Adjustment amount |
| Current asset： | |||
| Cash and bank balances | 19,807,094,397.16 | 19,807,094,397.16 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | 499,781,503.17 | 499,781,503.17 | |
| Account receivable | 14,352,781,895.39 | 14,352,781,895.39 | |
| Financing of receivables | |||
| Prepayments | 5,215,414,219.51 | 5,215,414,219.51 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other account receivable | 1,125,991,020.55 | 1,125,991,020.55 | |
| Including：Interest receivable | 56,811,961.67 | 56,811,961.67 | |
| Dividend receivable | |||
| Repurchasing of financial assets | |||
| Inventories | 3,510,786,666.85 | 3,510,786,666.85 | |
| Contract assets | |||
| Assets held for sales | 119,355,435.58 | 119,355,435.58 | |
| Non-current asset due within 1 year | |||
| Other current asset | 809,360,778.49 | 809,360,778.49 | |
| Total of current assets | 45,440,565,916.70 | 45,440,565,916.70 | |
| Non-current assets： | |||
| Loans and payment on other’s behalf disbursed | |||
| Debt investment | |||
| Available for sale of financial assets | 243,158,605.30 | -243,158,605.30 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable | 344,430,815.68 | 344,430,815.68 | |
| Long term share equity investment | 2,174,347,969.22 | 2,174,347,969.22 | |
| Other equity instruments |
| investment | |||
| Other non-current financial assets | 243,158,605.30 | 243,158,605.30 | |
| Property investment | 686,993,881.02 | 686,993,881.02 | |
| Fixed assets | 9,634,463,323.77 | 9,634,463,323.77 | |
| Construction in progress | 5,013,941,980.61 | 5,013,941,980.61 | |
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 1,146,949,745.14 | 1,146,949,745.14 | |
| Development expenses | 37,122,235.94 | 37,122,235.94 | |
| Goodwill | 2,835,672,586.90 | 2,835,672,586.90 | |
| Long-germ expenses to be amortized | 21,884,204.82 | 21,884,204.82 | |
| Deferred income tax asset | 533,094,627.68 | 533,094,627.68 | |
| Other non-current asset | 4,463,496,966.82 | 4,463,496,966.82 | |
| Total of non-current assets | 27,135,556,942.90 | 27,135,556,942.90 | |
| Total of assets | 72,576,122,859.60 | 72,576,122,859.60 | |
| Current liabilities | |||
| Short-term loans | 8,361,106,651.33 | 8,361,106,651.33 | |
| Loan from Central Bank | |||
| Borrowing funds | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | 1,643,167,026.68 | 1,643,167,026.68 | |
| Account payable | 8,632,927,106.20 | 8,632,927,106.20 | |
| Advance receipts | 1,402,283,662.37 | 1,402,283,662.37 | |
| Selling of repurchased financial assets | |||
| Deposit taking and interbank deposit | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees’ wage payable | 238,146,977.17 | 238,146,977.17 | |
| Tax payable | 817,173,127.12 | 817,173,127.12 | |
| Other account payable | 2,089,603,676.60 | 2,089,603,676.60 | |
| Including：Interest payable | 117,554,951.58 | 117,554,951.58 | |
| Dividend payable | |||
| Fees and commissions payable |
| Reinsurance fee payable | |||
| Contract Liabilities | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 3,697,392,864.91 | 3,697,392,864.91 | |
| Other current liability | 315,193,128.73 | 315,193,128.73 | |
| Total of current liability | 27,196,994,221.11 | 27,196,994,221.11 | |
| Non-current liabilities： | |||
| Reserve fund for insurance contracts | |||
| Long-term loan | 2,741,589,600.00 | 2,741,589,600.00 | |
| Bond payable | 5,630,818,825.32 | 5,630,818,825.32 | |
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | 2,644,309,592.95 | 2,644,309,592.95 | |
| Long-term remuneration payable to staff | |||
| Expected liabilities | 99,765,750.04 | 99,765,750.04 | |
| Deferred income | 676,146,399.31 | 676,146,399.31 | |
| Deferred income tax liability | 55,192,983.97 | 55,192,983.97 | |
| Other non-current liabilities | 108,000,000.00 | 108,000,000.00 | |
| Total non-current liabilities | 11,955,823,151.59 | 11,955,823,151.59 | |
| Total of liability | 39,152,817,372.70 | 39,152,817,372.70 | |
| 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 | 21,786,233,393.78 | |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 | |
| Other comprehensive income | -29,175.80 | -29,175.80 | |
| Special reserve | 12,614,331.35 | 12,614,331.35 | |
| Surplus reserves | 245,507,019.95 | 245,507,019.95 | |
| Common risk provision | |||
| Retained profit | 4,750,977,557.86 | 4,750,977,557.86 | |
| Total of owner’s equity belong to the parent company | 32,521,130,925.14 | 32,521,130,925.14 | |
| Minority shareholders’ equity | 902,174,561.76 | 902,174,561.76 | |
| Total of owners’ equity | 33,423,305,486.90 | 33,423,305,486.90 | |
| Total of liabilities and owners’ equity | 72,576,122,859.60 | 72,576,122,859.60 |
NotesAccording to the Accounting Standards for Business Enterprises No.22-Recognition and Measurement ofFinancial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises No.23-Transfer ofFinancial Assets (CK [2017] No.8), the Accounting Standards for Business Enterprises No.24-Hedge Accounting(CK [2017] No.9), Accounting Standard for Business Enterprises No.37-Presentation of Financial Instruments
(CK [2017] No.14) (hereinafter referred to as the new financial instruments standards) issued by the Ministry ofFinance in 2017, in combination with the company's business mode of managing financial assets and thecontractual cash flow characteristics of financial assets, the original available-for-sale financial assets are adjustedto be accounted for as financial assets measured at fair value with changes included in current profits and losses.Since the period is more than one year, it is listed as "other non-current financial assets" in the report.Balance sheet of Parent Company
In RMB
| Items | December 31, 2018 | January 1, 2019 | Adjustment amount |
| Current asset： | |||
| Cash and bank balances | 9,732,302,654.23 | 9,732,302,654.23 | |
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | 50,000.00 | 50,000.00 | |
| Account receivable | 176,563,926.23 | 176,563,926.23 | |
| Financing of receivables | |||
| Prepayments | 2,008,364.11 | 2,008,364.11 | |
| Other account receivable | 6,281,675,319.27 | 6,281,675,319.27 | |
| Including：Interest receivable | 7,521,489.86 | 7,521,489.86 | |
| Dividend receivable | 500,000,000.00 | 500,000,000.00 | |
| Inventories | 269,759,580.95 | 269,759,580.95 | |
| Contract assets | |||
| Assets held for sales | |||
| Non-current asset due within 1 year | |||
| Other current asset | 148,973.38 | 148,973.38 | |
| Total of current assets | 16,462,508,818.17 | 16,462,508,818.17 | |
| Non-current assets： | |||
| Debt investment | |||
| Available for sale of financial assets | 129,500,056.00 | -129,500,056.00 | |
| Other investment on bonds | |||
| Expired investment in possess | |||
| Long-term receivable | |||
| Long term share equity investment | 26,504,735,200.89 | 26,504,735,200.89 | |
| Other equity instruments investment | |||
| Other non-current financial assets | 129,500,056.00 | 129,500,056.00 | |
| Property investment | |||
| Fixed assets | 160,867,244.63 | 160,867,244.63 |
| Construction in progress | |||
| Production physical assets | |||
| Oil & gas assets | |||
| Use right assets | |||
| Intangible assets | 9,339,387.26 | 9,339,387.26 | |
| Development expenses | |||
| Goodwill | |||
| Long-germ expenses to be amortized | |||
| Deferred income tax asset | 119,964,967.85 | 119,964,967.85 | |
| Other non-current asset | |||
| Total of non-current assets | 26,924,406,856.63 | 26,924,406,856.63 | |
| Total of assets | 43,386,915,674.80 | 43,386,915,674.80 | |
| Current liabilities | |||
| Short-term loans | 4,278,000,000.00 | 4,278,000,000.00 | |
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Account payable | 11,500,796.58 | 11,500,796.58 | |
| Advance receipts | 1,991,498.78 | 1,991,498.78 | |
| Contract Liabilities | |||
| Employees’ wage payable | 4,484,401.86 | 4,484,401.86 | |
| Tax payable | 17,959,833.09 | 17,959,833.09 | |
| Other account payable | 3,656,725,253.66 | 3,656,725,253.66 | |
| Including：Interest payable | 97,197,464.99 | 97,197,464.99 | |
| Dividend payable | |||
| Liabilities held for sales | |||
| Non-current liability due within 1 year | 1,533,383,333.28 | 1,533,383,333.28 | |
| Other current liability | |||
| Total of current liability | 9,504,045,117.25 | 9,504,045,117.25 | |
| Non-current liabilities： | |||
| Long-term loan | |||
| Bond payable | 5,630,818,825.32 | 5,630,818,825.32 | |
| Including：preferred stock | |||
| Sustainable debt | |||
| Lease liability | |||
| Long-term payable | |||
| Long-term remuneration |
| payable to staff | |||
| Expected liabilities | |||
| Deferred income | |||
| Deferred income tax liability | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 5,630,818,825.32 | 5,630,818,825.32 | |
| Total of liability | 15,134,863,942.57 | 15,134,863,942.57 | |
| 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 | 21,832,453,907.50 | |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 | |
| Other comprehensive income | |||
| Special reserve | |||
| Surplus reserves | 226,517,795.62 | 226,517,795.62 | |
| Retained profit | 467,252,231.11 | 467,252,231.11 | |
| Total of owners’ equity | 28,252,051,732.23 | 28,252,051,732.23 | |
| Total of liabilities and owners’ equity | 43,386,915,674.80 | 43,386,915,674.80 |
Notes
According to the Accounting Standards for Business Enterprises No.22-Recognition and Measurement ofFinancial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises No.23-Transfer ofFinancial Assets (CK [2017] No.8), the Accounting Standards for Business Enterprises No.24-Hedge Accounting(CK [2017] No.9), Accounting Standard for Business Enterprises No.37-Presentation of Financial Instruments(CK [2017] No.14) (hereinafter referred to as the new financial instruments standards) issued by the Ministry ofFinance in 2017, in combination with the company's business mode of managing financial assets and thecontractual cash flow characteristics of financial assets, the original available-for-sale financial assets are adjustedto be accounted for as financial assets measured at fair value with changes included in current profits and losses.Since the period is more than one year, it is listed as "other non-current financial assets" in the report.
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New StandardsGoverning Financial Instruments or Leases
√ Applicable □Not applicable
From January 1, 2019, the company starts to implement the new financial instrument standards. This accountingpolicy change does not involve retrospective adjustment of previous years and does not affect the company'srelevant financial indicators in 2018.
45.Other
1. 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 amount iscalculated by adjusting pre-tax accounting profit specified in related tax laws.The company confirms deferred income tax by adopting liability method in Balance Sheet based on the temporary
difference between Net carrying amount 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, exceptthe temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade isnot enterprise combination and it neither influences accounting profit nor amount of payable tax when it happens.B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint enterprises andassociated enterprises. The temporary difference return time may be controlled and may not return in foreseeablefuture.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 Net carrying amount of the deferred income tax assets. Ifit was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while itwas likely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be writtendown.
2. Safety production expenses
The company counts and draws safety production expenses specified in Notification on Printing and Distributingand Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issued by Ministryof Finance and State Administration of Work Safety. Safety production expenses is specialized in improving safeproduction.Safety production expense is counted into related product’s cost or current profit and loss. At the same time, it isalso counted into specialized reserve. In case the safety production expense to be delivered is used in expense, wedirectly consume specialized reserve. In case safety production expense to be delivered belongs to fixed asset andis spent in construction in-process, confirm it as fixed asset when the project is completed safely and is ready toput 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, theCompany requires judgement, estimation and assumption for the Net carrying amount of the report items whichcan not be measured accurately. Such judgement, estimation and assumption is made basing on the previousexperience of the Company’s management as well as the consideration of other relevant factors. And the reportedamount of revenue, cost and asset, as well as the disclosure of balance sheet date and the liability will beinfluenced by such judgement, estimation and assumption; However, there may be differences between the actualresult caused by the uncertainties of such estimation and the current estimation of the Company’s management,thereby significant adjustment will be made for the assets influenced in the coming future and the indebted Netcarrying amount.The Company will periodically recheck the above-mentioned judgement, estimation and assumption based ongoing 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 Contract
When 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 26-Revenue Recognition Principle in Note III 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. The
total 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 Net carrying amountof accounts receivable and the provision or reversal of bad debt provision for accounts receivable during theperiod in which the estimate is changed.
(3) Inventory falling price preparation
According to the inventory accounting policy, the Company measures the lower of cost and net realizable value,and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value, obsolete andunsalable. The depreciation of inventories to net realizable value is based on the assessment of the saleability ofinventories and their net realizable value. Identification of impairment of inventories requires management tomake judgments and estimates on the basis of obtaining conclusive evidence and considering the purpose ofholding the inventory and the influence of events after the balance sheet date. The difference between the actualresult and the original estimate will affect the Net carrying amount 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 company shallaccrue depreciation and amortization on a straight-line basis over its useful life. The Company regularly reviewsthe 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. Taxation
1.Main categories and rates of taxes
| Taxes | Tax references | Applicable tax rates |
| VAT | Sales revenue | 3%,10%,11%,16%,17% |
| Consumption tax | Sales of taxable consumer goods or sales of taxable consumer goods. | Not applicable |
| 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% |
2.Tax Preference
① 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 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 2016.⑩On October 25, 2017,Beijing Xutan New Material 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.?On 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.?On 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.?On November 24, 2016,Shanghai Sunlong Bus Co., Ltd. was rated as the national high-tech enterprise withvalidity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise taxrate applicable for high-tech enterprises for three years since 2016.?On December 8, 2016,Chengdu Tunghsu Intelligence 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 2016.?Daosui Group Tibet Construction Development Co., Ltd, based on the “Notice of the People's Government ofTibet 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%.?Guangxi Sunlong Automobile Manufacturing Co., Ltd, based on the Guangxi People’s Government’s Circularon the Continuation and Revision of Certain Policies Concerning the Promotion of the Open Development of the
Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy, enjoys the corporate income tax at therate of 15% for the strategy of developing the western region and is exempted from the 40% tax share thatoriginally belongs to the local place, thus actually implementing the income tax rate of 9%.?Harbin Sunlong New Energy Automobile Sales Co., Ltd, based on the “Notice of Ministry of Finance, StateAdministration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scale,Low-profit Enterprises” (Cai Shui [2011] No. 117) and the 28
thclause 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%.?On October 12, 2018,Tunghsu(Yingkou) Optoelectronic Display 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 2018.?On November 12, 2018,Chongqing Jinghuateng 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.?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.? On November 30, 2018,Jiangsu Tunghsu Yitai Intelligence Equipment 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.Other
VII. Notes of consolidated financial statement
1. Cash and Bank Balances
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash | 3,242,652.56 | 2,593,055.78 |
| Bank deposit | 19,052,380,592.27 | 19,263,011,567.36 |
| Other monetary assets | 552,537,088.08 | 541,489,774.02 |
| Total | 19,608,160,332.91 | 19,807,094,397.16 |
| Including：Total amount deposited abroad | 3,087,696.74 | 2,307,958.14 |
Other noteNote :The amount of restricted cash and bank balances by the end of the period is RMB 4,221,140,438.53. The maintypes are acceptance bill deposit, time deposit certificate and letter of guarantee deposit.
2. Transactional financial assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| Financial assets measured at fair value through profit or loss | 3,000,000.00 | |
| Of which ： | ||
| National debt | 3,000,000.00 | |
| Of which ： | ||
| Total | 3,000,000.00 |
Other notes
3.Derivative financial assets
4. Notes receivable
（1）Classification Notes receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 53,936,785.03 | 142,810,310.93 |
| Trade acceptance | 7,257,525.67 | 356,971,192.24 |
| Total | 61,194,310.70 | 499,781,503.17 |
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（%） | |||
| Of which ： | ||||||||||
| Accrual of bad debt provision by portfolio | 61,194,310.70 | 100.00% | 0.00% | 61,194,310.70 | 499,781,503.17 | 100.00% | 0.00% | 499,781,503.17 | ||
| Of which ： | ||||||||||
| Bank acceptance | 53,936,785.03 | 88.14% | 0.00% | 53,936,785.03 | 142,810,310.93 | 28.57% | 0.00% | 142,810,310.93 | ||
| Trade acceptance | 7,257,525.67 | 11.86% | 0.00% | 7,257,525.67 | 356,971,192.24 | 71.43% | 0.00% | 356,971,192.24 | ||
| Total | 61,194,310.70 | 100.00% | 0.00% | 61,194,310.70 | 499,781,503.17 | 100.00% | 0.00% | 499,781,503.17 | ||
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the period -end
（4）Notes receivable endorsed or discounted by the Company but not expired on the balance sheet date
In RMB
| Items | Amount derecognized as at June 30,2019 | Amount underecognized as at January 1,2019 |
| Bank acceptance | 627,570,099.33 | |
| Total | 627,570,099.33 |
（5）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract oragreement
（6）The actual write-off of notes receivable for the current period
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
| Category | Year-end balance | Year-beginning balance | ||||||||
| Book balance | Bad debt provision | Net carrying amount | Book balance | Bad debt provision | Net carrying amount | |||||
| Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | |||
| Accrual of bad debt provision by single item: | 136,922,651.00 | 1.11% | 136,922,651.00 | 100.00% | 154,637,381.31 | 1.06% | 154,637,381.31 | 100.00% | ||
| Of which ： | ||||||||||
| Accounts receivable of individually withdrawing bad debt provision with significant individual amount | 136,922,651.00 | 1.11% | 136,922,651.00 | 100.00% | 154,637,381.31 | 1.06% | 154,637,381.31 | 100.00% | ||
| Accrual of bad debt provision by portfolio: | 12,055,004,373.50 | 98.88% | 106,034,365.92 | 0.88% | 11,948,970,007.58 | 14,450,540,744.24 | 98.94% | 97,758,848.85 | 0.68% | 14,352,781,895.39 |
| Of which ： | ||||||||||
| Aging portfolio | 8,171,983,020.04 | 67.03% | 106,034,365.92 | 1.31% | 8,065,948,654.12 | 10,053,763,897.90 | 68.84% | 97,758,848.85 | 0.97% | 9,956,005,049.05 |
| Other portfolio | 3,883,021,353.46 | 31.85% | 0.00% | 3,883,021,353.46 | 4,396,776,846.34 | 30.10% | 0.00% | 4,396,776,846.34 | ||
| Total | 12,191,927,024.50 | 100.00% | 242,957,016.92 | 1.99% | 11,948,970,007.58 | 14,605,178,125.55 | 100.00% | 252,396,230.16 | 1.73% | 14,352,781,895.39 |
Accrual of bad debt provision by single item:
Accounts receivable of individually withdrawing bad debt provision with significant individual amoun
In RMB
| Name | Year-end balance | |||
| 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 |
| Total | 136,922,651.00 | 136,922,651.00 | -- | -- |
Accrual of bad debt provision by portfolio:Aging portfolio
In RMB
| Name | Year-end balance | ||
| Account receivable | Provision for bad debts | Proportion% | |
| Within 1 year | 7,956,250,771.37 | 63,821,064.11 | 5.00% |
| Including：Within credit period | 6,679,829,489.21 | ||
| Within 1 year after credit period | 1,276,421,282.16 | 63,821,064.11 | 5.00% |
| 1-2 years | 151,196,081.03 | 15,119,608.10 | 10.00% |
| 2-3 years | 40,372,867.23 | 12,111,860.17 | 30.00% |
| 3-4 years | 17,671,758.75 | 8,835,879.38 | 50.00% |
| 4-5 years | 1,151,958.32 | 806,370.82 | 70.00% |
| Over 5years | 5,339,583.34 | 5,339,583.34 | 100.00% |
| Total | 8,171,983,020.04 | 106,034,365.92 | -- |
Notes：
Accrual of bad debt provision by portfolio:Other portfolio
In RMB
| Name | Year-end balance | ||
| Account receivable | Provision for bad debts | Proportion% | |
| State subsidy. Local subsidy | 2,607,988,744.40 | 0.00% | |
| Other portfolio | 1,275,032,609.06 | 0.00% | |
| Total | 3,883,021,353.46 | -- | |
Notes：
Accrual of bad debt provision by portfolio:
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model of
□Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Amount in year-end |
| Within 1 year（Including 1 year） | 7,956,250,771.37 |
| Including :Within credit period | 6,679,829,489.21 |
| Within 1 year after credit period | 1,276,421,282.16 |
| 1-2 years | 151,196,081.03 |
| 2-3 years | 40,372,867.23 |
| Over 3 years | 24,163,300.41 |
| 3-4 years | 17,671,758.75 |
| 4-5 years | 1,151,958.32 |
| Over 5years | 5,339,583.34 |
| Total | 8,171,983,020.04 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | |||
| Accounts receivable | 252,396,230.16 | 49,129,548.56 | 38,025,481.94 | 20,543,279.86 | 242,957,016.92 |
| Total | 252,396,230.16 | 49,129,548.56 | 38,025,481.94 | 20,543,279.86 | 242,957,016.92 |
（3）The current accounts receivable written-offs situation
In RMB
| Items | Amount written-offs |
| Accounts receivable written-offs | 20,543,279.86 |
| Total | 20,543,279.86 |
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) |
| Chunghua Picture tubes Ltd. | Goods | 17,714,730.31 | Unexpected to recover | Relevant approval procedures have been implemented | No |
| Total | -- | 17,714,730.31 | -- | -- | -- |
Notes:
(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 isRMB1,183,640,240.01, which accounts for 9.71% of the total receivables.
(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 accountsreceivableNilOther note：
Nil
6. Financing of receivables
Increase or decrease of financing backed by accounts receivable and changes in fair value thereof □ Applicable √Not applicable
□Applicable √Not applicable
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model of
□Applicable √Not applicable
7. Prepayments
（1）Disclosed by aging:
In RMB
| Aging | Amount in year-end | Amount in year- beginning | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within 1 year | 4,698,227,254.97 | 92.89% | 4,876,126,216.78 | 93.49% |
| 1-2 years | 150,067,570.31 | 2.97% | 146,513,615.36 | 2.81% |
| 2-3 years | 144,015,871.16 | 2.85% | 148,601,980.13 | 2.85% |
| Over 3 years | 65,720,404.61 | 1.05% | 44,172,407.24 | 0.85% |
| Total | 5,058,031,101.05 | -- | 5,215,414,219.51 | -- |
Notes : The amount of Prepayment is RMB 218,959,984.38 which is more than one year and of significantamount. The reason for the non-carry-over is that the settlement conditions have not been met.
（2）The ending balance of Prepayments owed by the imputation of the top five partiesNote 1：As of June 30, 2019, the total amount of the top five companies in advance payments is RMB
1,814,305,700.80 , accounting for 35.87% of the total ending balance of prepayments of advance payments.
8. Other accounts receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Interest receivable | 97,484,985.07 | 56,811,961.67 |
| Other receivable | 1,083,335,477.85 | 1,069,179,058.88 |
| Total | 1,180,820,462.92 | 1,125,991,020.55 |
（1）Interest receivable
（1）Classification Interest receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Fixed deposit | 97,484,985.07 | 56,811,961.67 |
| Total | 97,484,985.07 | 56,811,961.67 |
（2）Important overdue interest
Other note：
Nil3）Bad-debt provision
□ Applicable √ Not applicable
(2).Dividend receivable
1）Significant Dividend receivable aged over 1 year2）Bad-debt provision
□ Applicable √ Not applicable
（3）Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
| Nature | Closing book balance | Opening book balance |
| Current account | 281,119,911.18 | 305,650,872.46 |
| Deposit | 619,141,141.17 | 621,344,394.44 |
| Personal official borrowing | 69,050,830.36 | 59,482,116.20 |
| Persona Returnable Insurance | 7,298,593.08 | 5,863,292.04 |
| Export tax refunds | 248,013.42 | 1,037,409.54 |
| Advance payment | 64,665,782.43 | 55,633,246.16 |
| Project fund | 61,369,130.44 | 37,831,545.08 |
| Other | 5,190,118.23 | 8,661,286.34 |
| Total | 1,108,083,520.31 | 1,095,504,162.26 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 26,325,103.38 | 26,325,103.38 | ||
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
| Withdrawn in the current period | 844,122.57 | 844,122.57 | ||
| Return in the current period | 2,421,183.49 | 2,421,183.49 | ||
| 2 Balance as at June 30,2019 | 24,748,042.46 | 24,748,042.46 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 466,071,151.64 |
| Within credit period | 425,673,877.39 |
| Within 1 year after credit period | 40,397,274.25 |
| 1-2 years | 51,003,459.69 |
| 2-3 years | 26,885,298.01 |
| Over 3 years | 4,759,995.32 |
| 3-4 years | 2,659,687.10 |
| 4-5 years | 431,045.24 |
| Over 5 years | 1,669,262.98 |
| Total | 548,719,904.66 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Other account receivable | 26,325,103.38 | 844,122.57 | 2,421,183.49 | 24,748,042.46 |
| Total | 26,325,103.38 | 844,122.57 | 2,421,183.49 | 24,748,042.46 |
4) Other Receivables with Actual Verification in the Reporting Period
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 |
| Sichuan City Construction No.5 Infrastructure Development Co., Ltd. | Deposit | 200,000,000.00 | 1-2 year:80 million yuan, 2-3 years:120 million yuan | 18.05% | |
| Chongqing Haolong Platinum Industry Co., Ltd. | Fund transfers | 50,163,611.11 | Within credit period | 1.71% | |
| Chengdu Dingyang Technology Co., Ltd. | Deposit | 28,457,837.45 | Within 1 year:23,904,992.82 Yuan, the rest are 1-2 years | 4.53% | |
| Tibet transportation Dept. | Deposit | 26,872,981.40 | 2-3 years | 2.43% | |
| Shandong Expressway Global financial leasing co., Ltd. | Deposit | 19,000,000.00 | 1-2 years | 2.57% | |
| Total | -- | 324,494,429.96 | -- | 29.28% |
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assetsNil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accountsreceivableNil
Other note：
Nil
9.Inventory
Whether implemented new revenue guidelines
□ Yes √No
（1）Category of Inventory
In RMB
| Items | Closing book balance | Opening book balance | ||||
| Book balance | Provision for inventory impairment | Net carrying amount | Book balance | Provision for inventory impairment | Net carrying amount | |
| Raw materials | 1,717,814,957.85 | 40,854,718.49 | 1,676,960,239.36 | 1,011,195,380.28 | 39,101,593.48 | 972,093,786.80 |
| Processing products | 168,292,684.88 | 168,292,684.88 | 144,788,638.36 | 144,788,638.36 | ||
| Stock goods | 740,835,189.03 | 21,859,006.00 | 718,976,183.03 | 675,474,531.36 | 21,859,006.00 | 653,615,525.36 |
| Completed but unsettled assets caused by construction contract | 1,424,919,491.55 | 1,424,919,491.55 | 1,200,764,859.02 | 1,200,764,859.02 | ||
| Development product | 317,769,074.78 | 317,769,074.78 | 317,769,074.78 | 317,769,074.78 | ||
| Commissioned processing material | 67,539,591.87 | 435,243.31 | 67,104,348.56 | 33,093,172.93 | 435,243.31 | 32,657,929.62 |
| Commissioned materials | 15,034,723.49 | 15,034,723.49 | 6,883,551.21 | 6,883,551.21 | ||
| land arrangement | 365,257,217.97 | 365,257,217.97 | 182,213,301.70 | 182,213,301.70 | ||
| Total | 4,817,462,931.42 | 63,148,967.80 | 4,754,313,963.62 | 3,572,182,509.64 | 61,395,842.79 | 3,510,786,666.85 |
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 requirementsNo
(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 | 39,101,593.48 | 3,615,362.28 | 1,861,754.13 | 483.14 | 40,854,718.49 | |
| Stock goods | 21,859,006.00 | 21,859,006.00 | ||||
| Commissioned processing material | 435,243.31 | 435,243.31 | ||||
| Total | 61,395,842.79 | 3,615,362.28 | 1,861,754.13 | 483.14 | 63,148,967.80 | |
(3) Explanation on inventories with capitalization of borrowing costs included at ending balanceNil
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
| Items | Amount |
| Accumulated Incurred Cost | 8,468,913,099.99 |
| Accumulated Confirmed Gross Profit | 916,817,995.65 |
| Settlement Amount | 7,960,811,604.09 |
| Unliquidated Completed Assets Formed in the Construction Contract | 1,424,919,491.55 |
Other notesNil
10.Contact assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model ofexpected credit loss:
□ Applicable √ Not applicable
11. Holding assets for sale
In RMB
| Items | Ending carrying amount | Impairment provision | Ending carrying value | Fair value | Estimated disposal cost | Estimated disposal time |
| Holding assets for sale | 119,355,435.58 | 119,355,435.58 | 119,355,435.58 | December 31, 2019 | ||
| Total | 119,355,435.58 | 119,355,435.58 | 119,355,435.58 | -- |
Other notesNotes: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.
12. Non-current assets due within 1 year
13. Other current assets
Whether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Year-end balance | Year-beginning balance |
| USD exchange | 58,000,000.00 | 58,000,000.00 |
| Prepayment of income tax | 734,954,051.81 | 663,642,694.01 |
| Short –term Financing | 87,718,084.48 | |
| Total | 792,954,051.81 | 809,360,778.49 |
Other notes
14.Creditor's rights investment
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other notes
15.Other creditor's rights investment
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
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 installment | 583,727,340.31 | 2,934,975.39 | 580,792,364.92 | 347,225,434.05 | 2,794,618.37 | 344,430,815.68 | 6%-7.6%、45.78% |
| Total | 583,727,340.31 | 2,934,975.39 | 580,792,364.92 | 347,225,434.05 | 2,794,618.37 | 344,430,815.68 | -- |
Provision for bad debts
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 2,794,618.37 | |||
| Balance as at January 1, 2019 in current | —— | —— | —— | —— |
| Withdrawn in the current period | 909,253.33 | |||
| Return in the current period | 768,896.31 | |||
| 2 Balance as at June 30,2019 | 2,934,975.39 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assetsNil
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-termaccounts receivableNilOther notesNil
17. Long-term equity investment
In RMB
| Investees | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provision | |||||||
| Additional investment | Decrease in investment | Profits and losses on investments Recognized under | Other comprehensive income | Changes in other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| the equity method | |||||||||||
| I. Joint ventures | |||||||||||
| II. Associates | |||||||||||
| CUHK international business factoring co., Ltd | 76,270,934.28 | -1,211,117.11 | 75,059,817.17 | ||||||||
| Tunghsu Group Finance Co., Ltd. | 2,056,260,495.74 | 16,642,259.43 | 2,072,902,755.17 | ||||||||
| Zibo Bus service Co., Ltd. | 41,816,539.20 | 2,006,753.47 | 43,823,292.67 | ||||||||
| Subtotal | 2,174,347,969.22 | 17,437,895.79 | 2,191,785,865.01 | ||||||||
| Total | 2,174,347,969.22 | 17,437,895.79 | 2,191,785,865.01 | ||||||||
Other notes
18. Other equity instruments investment
19.Other non-current assets
In RMB
| Items | End of term | Beginning of term |
| Equity Instrument investment | 548,158,605.30 | 243,158,605.30 |
| Total | 548,158,605.30 | 243,158,605.30 |
| Unit | Book balance | |||
| Balance of term | Increase | Decrease | End of term | |
| Beijing Yihuatong Technology Co., Ltd. | 100,000,056.00 | 100,000,056.00 | ||
| Beijing Shenwei Lixing Auto Service Co., Ltd. | 29,500,000.00 | 29,500,000.00 | ||
| Subei Mongolian Autonomous County Kangrun Water Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||
| Nanning Beichuang Shenxu Investment Partnership (Limited Partnership) | 300,000,000.00 | 300,000,000.00 | ||
| China Metallurgical investment fund management (Beijing) Co., Ltd. | 113,658,549.30 | 113,658,549.30 | ||
| Total | 243,158,605.30 | 305,000,000.00 | - | 548,158,605.30 |
20. 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 | 709,683,677.43 | 709,683,677.43 | ||
| 2.Increase in the current period | 38,880,651.22 | 4,104,625.69 | 42,985,276.91 | |
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | 38,880,651.22 | 4,104,625.69 | 42,985,276.91 | |
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 748,564,328.65 | 4,104,625.69 | 752,668,954.34 | |
| II. Accumulated amortization | ||||
| 1.Opening balance | 22,689,796.41 | 22,689,796.41 | ||
| 2.Increased amount of the period | 17,975,168.49 | 323,614.70 | 18,298,783.19 | |
| (1) Withdrawal | 16,022,855.79 | 77,337.16 | 16,100,192.95 | |
| （2）Inventory\Fixed assets\ Transferred from construction in progress | 1,952,312.70 | 246,277.54 | 2,198,590.24 | |
| 3.Decrease in the reporting period | ||||
| （1）Disposal | ||||
| （2）Other out | ||||
| 4.Closing balance | 40,664,964.90 | 323,614.70 | 40,988,579.60 | |
| 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. Net carrying amount | ||||
| 1.Net carrying amount of the period-end | 707,899,363.75 | 3,781,010.99 | 711,680,374.74 | |
| 2.Net carrying amount of | 686,993,881.02 | 686,993,881.02 |
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
21. Fixed assets
In RMB
the period-beginItems
| Items | End of term | Beginning of term |
| Fixed assets | 9,043,235,757.53 | 9,634,463,323.77 |
| Total | 9,043,235,757.53 | 9,634,463,323.77 |
(1) List of fixed assets
In RMB
| Items | House, building | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1. Balance at period-beginning | 2,068,252,492.76 | 10,264,334,339.83 | 128,892,479.59 | 194,478,979.06 | 12,655,958,291.24 |
| 2.Increase in the current period | 54,863,365.67 | 1,202,257,608.24 | 1,607,700.67 | 11,388,984.12 | 1,270,117,658.70 |
| (1) Purchase | 5,108,402.78 | 180,112,090.38 | 1,607,700.67 | 6,512,309.88 | 193,340,503.71 |
| （2）Transferred from construction in progress | 49,754,962.89 | 1,022,145,517.86 | 4,876,674.24 | 1,076,777,154.99 | |
| (3)Increased of Enterprise Combination | |||||
| 3.Decreased amount of the period | 38,880,651.22 | 1,917,567,756.12 | 445,192.62 | 3,120,542.01 | 1,960,014,141.97 |
| （1）Disposal | 82,051.63 | 445,192.62 | 3,076,721.71 | 3,603,965.96 | |
| （2）Investment real estate transfer | 38,880,651.22 | 38,880,651.22 | |||
| （3）Transfer of project under construction | 1,917,485,704.49 | 43,820.30 | 1,917,529,524.79 | ||
| 4.Closing balance | 2,084,235,207.21 | 9,549,024,191.95 | 130,054,987.64 | 202,747,421.17 | 11,966,061,807.97 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 456,920,009.10 | 2,401,022,691.63 | 70,340,795.65 | 92,619,086.25 | 3,020,902,582.63 |
| 2.Increased amount of the period | 35,262,359.23 | 351,365,932.03 | 6,477,375.32 | 10,336,884.13 | 403,442,550.71 |
| （1）Withdrawal | 35,262,359.23 | 351,365,932.03 | 6,477,375.32 | 10,336,884.13 | 403,442,550.71 |
| 3.Decreased amount of the | 1,952,312.70 | 498,384,857.33 | 405,203.84 | 1,369,093.87 | 502,111,467.74 |
| period | |||||
| （1）Disposal or scrap | 2,275,989.67 | 405,203.84 | 1,369,093.87 | 4,050,287.38 | |
| （2）Investment real estate transfer | 1,952,312.70 | 1,952,312.70 | |||
| （3）Transferred from construction in progress | 496,108,867.66 | 496,108,867.66 | |||
| 4.Closing balance | 490,230,055.63 | 2,254,003,766.33 | 76,412,967.13 | 101,586,876.51 | 2,922,233,665.60 |
| 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. Net carrying amount | |||||
| 1.Net carrying amount of the period-end | 1,594,005,151.58 | 7,294,983,980.78 | 53,086,080.51 | 101,160,544.66 | 9,043,235,757.53 |
| 2.Net carrying amount of the period-begin | 1,611,332,483.66 | 7,863,275,203.36 | 57,995,743.94 | 101,859,892.81 | 9,634,463,323.77 |
(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
| Items | Original Net carrying amount | Accumulated depreciation | Provision for impairment | Net carrying amount |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | 1,438,000,000.00 | 475,370,628.44 | 962,629,371.56 |
(4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
（6）Liquidation of fixed assets
Other notesNotes 1.For details of restrictions on the use of end-of-term ownership, please refer to Note 81 of ConsolidatedFinancial Statements.
22. Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance |
| Project under construction | 5,511,187,961.75 | 5,013,940,816.82 |
| Engineering Materials | 1,163.79 | |
| Total | 5,511,187,961.75 | 5,013,941,980.61 |
(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 | 2,270,829,930.27 | 2,270,829,930.27 | 2,258,254,792.65 | 2,258,254,792.65 | ||
| Wuhan LCD glass substrate production line project | 14,645,209.52 | 14,645,209.52 | ||||
| Kunshan Color film project | 651,235,159.65 | 651,235,159.65 | 617,456,517.49 | 617,456,517.49 | ||
| Surface display cover glass | 151,484,912.58 | 151,484,912.58 | 125,655,703.76 | 125,655,703.76 | ||
| High aluminum silicon cover glass sheet production line upgrade project | 1,003,879,240.41 | 1,003,879,240.41 | ||||
| New energy bus and logistics vehicle production project | 148,790,705.98 | 148,790,705.98 | 147,947,403.38 | 147,947,403.38 | ||
| Yingkou(G5) TFT-LCD -LCD Glass substrate production line | 583,439,179.40 | 583,439,179.40 | 570,129,313.14 | 570,129,313.14 | ||
| Xufei LCD glass substrate production line | 1,180,282,639.89 | 1,180,282,639.89 | ||||
| Other | 525,125,433.98 | 525,125,433.98 | 290,617,845.99 | 290,617,845.99 | ||
| Total | 5,511,187,961.75 | 5,511,187,961.75 | 5,028,586,026.34 | 14,645,209.52 | 5,013,940,816.82 | |
(2)Changes of significant construction in progress
In RMB
| Name | Budget | Amount at year beginning | Increase at this period | Transferred to fixed assets | Other decrease | Balance in year-end | Proportion(%) | Progress of work | Capitalization of interest accumulated balance | Including：Current amount of capitalization of interest | Capitalization of interest ratio（%) | Source of funds |
| Wuhu LCD glass substrate production line project | 7,576,520,000.00 | 2,258,254,792.65 | 61,261,918.69 | 48,686,781.07 | 2,270,829,930.27 | 97.47% | 97.47% | 834,365,677.14 | 34,068,008.82 | IPO funds | ||
| Kunshan Color film project | 3,115,500,000.00 | 617,456,517.49 | 33,778,642.16 | 651,235,159.65 | 22.38% | 22.38% | IPO funds | |||||
| Surface display cover glass | 1,497,380,000.00 | 125,655,703.76 | 25,829,208.82 | 151,484,912.58 | 13.87% | 13.87% | 13,700,587.69 | IPO funds | ||||
| High aluminum silicon cover glass sheet production line upgrade project | 1,300,000,000.00 | 1,003,879,240.41 | 12,617,722.65 | 1,016,496,963.06 | 0.00 | 86.41% | 100% | IPO funds | ||||
| New energy bus and logistics vehicle production project | 2,955,074,600.00 | 147,947,403.38 | 843,302.60 | 148,790,705.98 | 10.24% | 10.24% | IPO funds | |||||
| Yingkou(G5) TFT-LCD -LCD Glass substrate production line | 981,050,000.00 | 570,129,313.14 | 17,147,285.03 | 3,837,418.77 | 583,439,179.40 | 110.92% | 95.00% | 67,799,598.58 | 11,097,041.67 | Other | ||
| Xufei LCD glass substrate production line | 1,571,260,000.00 | 1,180,282,639.89 | 1,180,282,639.89 | 85.00% | 85.00% | Other | ||||||
| Total | 18,996,784,600.00 | 4,723,322,970.83 | 1,331,760,719.84 | 1,069,021,162.90 | 4,986,062,527.77 | -- | -- | 915,865,863.41 | 45,165,050.49 | -- |
（3）Impairment provision of construction projects
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 notes
Note 1: For details of the mortgage at the end of the construction in progress, see Note 81 of the consolidatedfinancial statements.
23. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25.Right-to-use assets
Not applicable
26. Intangible assets
(1) Information
In RMB
| Items | Land use right | Patent right | Non patent technology | Software | Right of trade mark | Other | Total |
| I. Original price | |||||||
| 1. Balance at period-beginning | 1,027,354,753.34 | 90,240,410.62 | 165,136,282.74 | 19,937,982.42 | 87,050,298.13 | 133,831.06 | 1,389,853,558.31 |
| 2.Increase in the current period | 2,160,438.49 | 5,681,106.14 | 763,846.46 | 8,605,391.09 | |||
| (1) Purchase | 2,641,114.83 | 763,846.46 | 3,404,961.29 | ||||
| （2）Internal R & D | 2,160,438.49 | 3,039,991.31 | 5,200,429.80 | ||||
| （3）Increased of Enterprise Combination | |||||||
| (4)Investor investment | |||||||
| 3.Decreased amount of the period | 4,104,625.69 | 14,445,166.67 | 13,600.00 | 18,563,392.36 | |||
| （1）Disposal | |||||||
| (2)Investment real estate transfer | 4,104,625.69 | 4,104,625.69 | |||||
| (3)Fewer mergers | 14,445,166.67 | 13,600.00 | 14,458,766.67 | ||||
| 4. Balance at period-end | 1,023,250,127.65 | 92,400,849.11 | 150,691,116.07 | 25,605,488.56 | 87,050,298.13 | 897,677.52 | 1,379,895,557.04 |
| II. Accumulated amortization | |||||||
| 1. Balance at period-beginning | 97,755,902.56 | 8,343,772.34 | 44,556,727.66 | 5,280,107.78 | 86,949,675.45 | 17,627.38 | 242,903,813.17 |
| 2. Increase in the current period | 11,888,037.37 | 3,827,498.71 | 7,052,692.00 | 1,716,008.46 | 93,165.63 | 23,444.47 | 24,600,846.64 |
| (1) Withdrawal | 11,888,037.37 | 3,827,498.71 | 7,052,692.00 | 1,716,008.46 | 93,165.63 | 23,444.47 | 24,600,846.64 |
| （2）Increased of Enterprise Combination | |||||||
| 3.Decreased amount of the period | 246,277.54 | 1,444,516.68 | 13,600.00 | 1,704,394.22 | |||
| （1）Disposal | |||||||
| （2）Investment real estate transfer | 246,277.54 | 246,277.54 | |||||
| （3） Decreased of Enterprise Combination | 1,444,516.68 | 13,600.00 | 1,458,116.68 | ||||
| 4. Balance at period-end | 109,397,662.39 | 12,171,271.05 | 50,164,902.98 | 6,982,516.24 | 87,042,841.08 | 41,071.85 | 265,800,265.59 |
| 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 | |||||||
| IV.Net carrying amount | |||||||
| 1.Net carrying amount at period -end | 913,852,465.26 | 80,229,578.06 | 100,526,213.09 | 18,622,972.32 | 7,457.05 | 856,605.67 | 1,114,095,291.45 |
| 2.Net carrying amount at period-beginning | 929,598,850.78 | 81,896,638.28 | 120,579,555.08 | 14,657,874.64 | 100,622.68 | 116,203.68 | 1,146,949,745.14 |
At the end of this year, the ratio of intangible assets formed through internal R & D of the company to the balanceof intangible assets is 0.38⑵Details of Land use right failed to accomplish certification of property
Other notes:
Notis 1:The certificate of property right has been completed by the end of the current periodNotes 2:For details of the ending mortgage of intangible assets, see Note 81 of the consolidated financialstatements.
27..Development expenses
In RMB
| Items | Beginning balance | Increase in the period | Decrease in period | Ending balance | ||||
| EASSupply chain system | 2,236,772.24 | 803,219.07 | 3,039,991.31 | |||||
| Landscape street lamp design project | 3,815,517.36 | 3,815,517.36 | ||||||
| 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 | ||||||
| Vehicle charging pile Project | 803,963.60 | 803,963.60 | ||||||
| Ultrasonic heat dissipation LED lamp | 1,038,745.23 | 1,038,745.23 | ||||||
| LED ceiling lamp | 1,174,301.73 | 1,174,301.73 | ||||||
| Research on an efficient LED module street lamp | 2,028,914.41 | 2,028,914.41 | ||||||
| Intelligent street lamp (R & D) | 1,153,781.02 | 1,153,781.02 | ||||||
| A kind of easy unloading device for Mould | 1,271,781.24 | 1,271,781.24 | ||||||
| Application of Metal Phosphate as anode material for Lithium Ion Battery, etc. | 8,586,538.36 | 5,084,320.24 | 2,146,634.59 | 1,028,116.84 | 10,496,107.17 | |||
| flexible cell | 1,456,310.68 | 1,456,310.68 | ||||||
| Jingang Robot | 3,361,420.59 | 48,577.42 | 3,312,843.17 | |||||
| Warehouse robot | 2,855,282.54 | 3,243,248.78 | 6,098,531.32 | |||||
| Companion robot (desktop) | 2,900,641.21 | 3,284,134.54 | 6,184,775.75 | |||||
| Other | 15,529.37 | 662,062.09 | 13,803.90 | 663,787.56 | ||||
| Total | 37,122,235.94 | 19,744,508.35 | 5,200,429.80 | 1,076,694.26 | 50,589,620.23 |
Other notes
28. Goodwill
(1) Original Net carrying amount of goodwill
In RMB
| Investees/ Item | Beginning balance | Increase | Decrease | Ending balance | ||
| 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 Guojian Co., Ltd. | 133,269,567.62 | 133,269,567.62 | ||||
| Shenzhen Sanbao Innovation Intelligent Co., | 68,888,405.50 | 68,888,405.50 | ||||
| Ltd. | ||||||
| Huaxi Nanchong Automobile Co., Ltd. | 55,999,916.40 | 55,999,916.40 | ||||
| Total | 2,845,836,030.51 | 133,269,567.62 | 2,712,566,462.89 |
（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 | ||||
29.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 | 16,847,249.82 | 6,261,909.32 | 3,517,189.17 | 19,591,969.97 | |
| NEG Technology Use fee | 5,036,955.00 | 308,385.00 | 4,728,570.00 | ||
| Total | 21,884,204.82 | 6,261,909.32 | 3,825,574.17 | 24,320,539.97 |
30.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 | 360,994,145.72 | 68,071,164.97 | 343,092,733.65 | 64,950,015.23 |
| Not realized the internal profit | 2,036,649,487.27 | 305,814,781.13 | 2,085,646,185.70 | 313,672,923.77 |
| Deductible loss | 1,082,508,038.76 | 169,384,777.19 | 813,056,144.42 | 123,065,344.84 |
| Deferred income difference | 93,162,059.57 | 13,913,113.58 | 99,944,032.99 | 14,878,382.57 |
| Non-identical control enterprise | 8,663,249.92 | 840,472.95 | 9,424,416.78 | 909,279.99 |
| Projected liability | 20,944,899.84 | 5,236,224.96 | 20,944,899.84 | 5,236,224.96 |
| Advance quality margin | 71,224,325.09 | 9,285,178.48 | 78,820,850.20 | 10,382,456.32 |
| Total | 3,674,146,206.17 | 572,545,713.26 | 3,450,929,263.58 | 533,094,627.68 |
(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 | 288,623,558.81 | 49,531,110.49 | 293,849,152.24 | 54,572,072.64 |
| Depreciation difference due to different tax law and accounting depreciation period | 4,141,445.56 | 740,231.33 | 4,198,490.69 | 620,911.33 |
| Total | 292,765,004.37 | 50,271,341.82 | 298,047,642.93 | 55,192,983.97 |
(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 | 572,545,713.26 | 533,094,627.68 | ||
| Deferred income liabilities | 50,271,341.82 | 55,192,983.97 |
(4)Details of income tax assets not recognized
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Deductible losses | 197,016,306.55 | 152,606,559.26 |
| Bad debr provision | 86,413.68 | 86,413.68 |
| Provision for impairment of construction projects | 14,645,209.52 | |
| Total | 197,102,720.23 | 167,338,182.46 |
(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 | 386,221.54 | ||
| 2019 | 814,800.28 | 3,751,170.54 | |
| 2020 | 20,184,416.87 | 22,199,323.24 | |
| 2021 | 27,821,173.04 | 27,911,201.66 | |
| 2022 | 95,966,731.78 | 98,358,642.28 | |
| 2023 | 52,229,184.58 | ||
| Total | 197,016,306.55 | 152,606,559.26 | -- |
Other notes31 .Other non-current assetsWhether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Prepaid engineering equipment | 4,800,933,217.60 | 4,463,496,966.82 |
| Total | 4,800,933,217.60 | 4,463,496,966.82 |
Other notes
32.Short –term borrowings
（1）Short-term borrowings by category
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pledge borrowings | 2,398,884,400.00 | 2,666,853,417.34 |
| Mortgage borrowings | 3,181,100,000.00 | 1,847,600,000.00 |
| Guarantee borrowings | 3,465,450,000.00 | 3,589,753,471.68 |
| Credit borrowings | 149,500,000.00 | 256,899,762.31 |
| Total | 9,194,934,400.00 | 8,361,106,651.33 |
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 RMB3,181,100,00.00:
Including（1）End-of-period mortgage loan is RMB 498,000,000.00 which is both a guarantee loan and a mortgageloan. Tunghsu Group Co., Ltd. and Li Zhaoting provide joint liability guarantee for the Company. TunghsuZhuding Investment Development Group Co., Ltd., the mortgagor, will mortgage the house and other fixtures (J(2018) H Real Estate No. 0050316) located in No. 115 office property, Yangfangdian, Haidian District, Beijing.
(2) End-of-period guarantee loan is RMB 480,000,000.00. Li Zhaoting provides joint and several guarantees forthe Company. All parcel number 33010801200000004 residential lands and parcel number 33010801200000006commercial lands of Hangzhou Yuanbang Real Estate Development Co., Ltd. located in Kanshan Town, XiaoshanDistrict, Hangzhou City, Zhejiang Province, serve as the second order mortgage guarantee for the state-ownedtransfer of land use right. The first floor of Binjiang Huayue Phase III apartment building and the first floor ofBinjiang Huayue Phase III office building of Anhui Meisheng Real Estate Co., Ltd. are located in No.368 BaoheAvenue, Baohe District, Hefei City, Anhui Province serve as the mortgage guarantee.
(3) The mortgage loan at the end of the period is 1,000,000,000.00. Tunghsu Group Co., Ltd. and Li Zhaotingprovides joint guarantee for the company. The company also pledged 100% shares of its subsidiary BeijingXufeng Real Estate Co., Ltd. and the land owned by its subsidiary Beijing Xufeng Real Estate Co., Ltd.;
(4) End-of-period guarantee loan is RMB 480,000,000.00. Li Zhaoting provides joint and several guarantees forthe Company. All parcel number 33010801200000004 residential lands and parcel number 33010801200000006commercial lands of Hangzhou Yuanbang Real Estate Development Co., Ltd. located in Kanshan Town, XiaoshanDistrict, Hangzhou City, Zhejiang Province, serve as the second order mortgage guarantee for the state-ownedtransfer of land use right. The first floor of Binjiang Huayue Phase III apartment building and the first floor ofBinjiang Huayue Phase III office building of Anhui Meisheng Real Estate Co., Ltd. are located in No.368 BaoheAvenue, Baohe District, Hefei City, Anhui Province serve as the mortgage guarantee.
(5) End-of-period mortgage loan is RMB 110,000,000.00. The collateral is the machinery and equipment of thesubsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd. and the land and real estate corresponding to thefirst production line;
(6) End-of-period mortgage loan is RMB 110,000,000.00 which is both a guarantee loan and a mortgage loan.Tunghsu Group Co., Ltd., the Company and its subsidiary Shanghai Sunlong Bus Co., Ltd. provide guarantee forGuangxi Sunlong Automobile Manufacturing Co., Ltd., the grandson company; the collateral is the inspection lineworkshop, warehouse and No. 1 production workshop located at No. 99 Puxing Avenue, Yongning District,Nanning City, numbered as No. 0243831, 0243689, 0137166 of Gui (2018) Nanning Real Estate Right;
(7) End-of-period mortgage loan is RMB53,100,000.00 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 Sub subsidiary. The collateral is the No. 384 construction land (HGY (2012) Z) and No.200700980 real estates (HYZ No.200700980) located at No. 66 Yingbin Road, Huaying City.
（8）The end-of-period pledge loan is 450,000,000.00 yuan, and Tunghsu Group held 24% equity pledge ofGEMSY Group; The real estate and land under the name of Jiangsu Jixing New Material Co., Ltd are with
property certificate numbers of YF Zi No. 81800980, 81800981, 81800982, and the land certificate numbers ofNo. 10482, 10483, 10484, 10485, 10486, 10487 provided mortgage guarantee; Real estate under the name ofSichuan Xuhong Photoelectric Technology Co., Ltd is with a title certificate No: C (2017) MYSBDCQ No.0029780, which provides mortgage guarantee; Real estate under Fuzhou Tunghsu Optoelectronic Technology Co.,Ltd. is with the certificate number of M (2018) FQSBDCQ No.004823, which provides mortgage guarantee; Realestate under Chengdu Tunghsu Intelligent Technology Co., Ltd. is with a title certificate No.: C (2018)PDQBDCQ No. 0095711, which provides mortgage guarantee;Note 3: The guarantee loan is RMB 3,465,450,000.00:
Including：（1）End-of-period guarantee loan is RMB 111,000,000.00, Tunghsu Group Co., Ltd. provides joint andseveral liability guarantee for the Company ;
（2）End-of-period guarantee loan is RMB 200,000,000.00, The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd;
（3）End-of-period guarantee loan is RMB 50,000,000.00, The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（4）End-of-period guarantee loan is RMB150,000,000.00, Tunghsu Group provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（5）End-of-period guarantee loan is RMB250,000,000.00, Tunghsu Group provides joint liability guarantee to the
Sub-Subsidiary –Daosui Group Co., Ltd.;
（6）End-of-period guarantee loan is RMB200,000,000.00, The Company and Li Zhaoting provides joint liability
guarantee to the Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
（7）End-of-period guarantee loan is RMB40,000,000.00, The Company,Tunghsu Group provides joint liability
guarantee to the Sub- Subsidiary –Suzhou Tengda Zhengzhou Xufei Optics Technology Co., Ltd.;
（8）End-of-period guarantee loan is RMB300,000,000.00, Tunghsu Group provides joint liability guarantee to the
Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（9）End-of-period guarantee loan is RMB20,000,000.00, Tunghsu Group provides joint liability guarantee to theSubsidiary –Shanghai Sunlong Bus Co., Ltd.;
（10）End-of-period guarantee loan is RMB100,000,000.00, Tunghsu Group , Li Zhaoting provides joint liabilityguarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（11）End-of-period guarantee loan is RMB30,000,000.00, Subsidiary-Shanghai Sunlong Bus Co., Ltd.provides
joint liability guarantee to the Sub- Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（12）End-of-period guarantee loan is RMB50,000,000.00, Tunghsu Group provides joint liability guarantee to theSubsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（13）End-of-period guarantee loan is RMB50,000,000.00, The Company provides joint liability guarantee to theSubsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（14）End-of-period guarantee loan is RMB20,000,000.00, The Company and Li Zhaoting provide the maximum
guarantee for the subsidiary Hunan Tunghsu Delai Electronic Technology Co., Ltd.;
（15）End-of-period guarantee loan is RMB10,000,000.00, The company provides guarantee tothe Sub Subsidiary-Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（16）End-of-period guarantee loan is RMB25,000,000.00, The company provides guarantee tothe Sub-Subsidiary-
Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（17）End-of-period guarantee loan is RMB100,000,000.00, The Company provides joint liability guarantee to the
Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
(18)End-of-period guarantee loan is RMB100,000,000.00, Tunghsu Group ,the Company and
Subsidiary-Shanghai Sunlong Bus Co., Ltd. provides joint liability guarantee to the Sub-Subsidiary –GuangxiSunlong Automobile Manufacturing Co., Ltd.;
（19）End-of-period guarantee loan is RMB1,025,000,000.00, The Company provides joint liability guarantee to theSubsidiary –Shanghai Sunlong Bus Co., Ltd.;
（20）End-of-period guarantee loan is RMB100,000,000.00, Tunghsu Group and Li Zhaoting provides joint
liability guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（21）End-of-period guarantee loan is RMB130,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
(22) The Company provides a guarantee of 30 million yuan for its grandson company, Hunan Tunghsu Weigao
Medical Device Technology Co., Ltd, and at the same time, the grandson company, Hunan Tunghsu WeigaoMedical Device Technology Co., Ltd uses accounts receivable of 75,161,821.14 yuan as pledge;Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（23）End-of-period guarantee loan is RMB30,000,000.00, The Company provides joint liability guarantee to the
Sub-Subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（24）End-of-period guarantee loan is RMB20,000,000.00, The Company provides joint liability guarantee to the
Sub-Subsidiary –Hunan Tunghsu Weisheng Inteligence Technology Co., Ltd
（25）End-of-period guarantee loan is RMB44,450,000.00, The Company provides joint liability guarantee to the
Sub-Subsidiary –Jiangsu Tunghsu Yitai Inteligence Equipment Co., Ltd
（26）End-of-period guarantee loan of RMB 280,000,000.00, dongxu group co., LTD and li zhaoting provide jointliability guarantee for subsidiary zhengzhou xufei photoelectric technology co., LTDNote 4: End-of-period pledge loan is RMB2,398,884,400.00:
(1) Li Zhaoting and Shenzhen Oufuyuan Technology Co., Ltd. hold 75% equity pledge of Zhongshan ShenzhongReal Estate Development Co., Ltd. to provide joint liability guarantee of RMB 1,800,000,000.00.
(2) The end-of-period pledge loan is 300,000,000.00 yuan. For Tunghsu Group Guarantee, Li Zhaoting's PersonalGuarantee and Guarantee of Shanghai Shenlong Bus Co., Ltd., Tunghsu Optoelectronics holds 58% of the sharesof Shanghai Sunlong Bus Co., Ltd. as collateral;
(3) The end-of-period pledge loan is 30,884,400.00 yuan, and Sub-subsidiary- Shenzhen Xinyingtong TechnologyCo., Ltd. pledged 100% deposit to provide guarantee.
(4)The end-of-period pledge loan was 150,000,000.00 yuan. For Tunghsu Group Guarantee, Li Zhaoting PersonalGuarantee, Guarantee of Guangxi Shenlong Auto Manufacturing Co., Ltd. Tunghsu Optoelectronics holds 58%of the shares of Shanghai Sunlong Bus Co., Ltd. as collateral;
(5) The Company provides a guarantee of RMB 20,000,000.00 for the subsidiary Chongqing JinghuatengOptoelectronic Technology Co., Ltd. which uses the accounts receivable of RMB 25,674,800.00 as pledge;
(6) The end-of-period pledge loan is 90,000,000.00 yuan, which is both a guaranteed loan and a pledged loan.Tunghsu Group Co., Ltd., the Company and its subsidiary Shanghai Sunlong Bus Co., Ltd. provide guarantee forthe grandson company, Guangxi Sunlong Automobile Manufacturing Co., Ltd.; Guangxi Sunlong AutomobileManufacturing Co., Ltd., the Sub-subsidiary, provided pledge guarantee with 100,000,000.00 yuan time depositcertificate.
(7) The end-of-period pledge loan is 8,000,000.00 yuan, which is pledged by 2 patent certificates of the subsidiaryHuzhou Mingshuo Photoelectric Technology Co., Ltd., for a new phase change material composition, with apatent number of ZL201310714156.1, and a heat conductive silicone grease composition, with a patent number ofZL201210119361.9.
33. Transactional financial liabilities
34. Derivative financial liability
35.Notes payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Commercial acceptance | 154,452,979.00 | 354,756,705.00 |
| Bank acceptance bills | 1,390,939,966.94 | 1,288,410,321.68 |
| Total | 1,545,392,945.94 | 1,643,167,026.68 |
36. Account payable
（1）List of account payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Material fund and Engineering Labour service | 3,839,200,037.22 | 6,796,000,151.83 |
| Engineering funds | 2,543,119,697.99 | 1,749,055,669.87 |
| Transportation expenses | 11,647,378.64 | 28,726,403.86 |
| Other | 64,827,427.15 | 59,144,880.64 |
| Total | 6,458,794,541.00 | 8,632,927,106.20 |
（2）Significant accounts payable that aged over one year
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Beijing Guoxun investment co., Ltd. | 41,088,123.25 | Unpaid payment term |
| 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 |
| Qinghai Construction & installation Engineering Co., Ltd. | 19,006,049.20 | Unpaid payment term |
| Sichuan Yilong city construction co., ltd. Ke Zhou branch | 8,415,000.00 | Unpaid payment term |
| Total | 110,457,703.28 | -- |
37. Advance from customers
Whether implemented new revenue guidelines
□ Yes √No
(1) List of advance from customers
In RMB
| Items | Closing balance | Opening balance |
| Goods | 339,866,862.89 | 133,288,930.47 |
| Engineering fund | 1,494,230,970.09 | 1,268,994,731.90 |
| Total | 1,834,097,832.98 | 1,402,283,662.37 |
(2) Accounts payable with major amount and aging of over one year
(3)Information of unliquidated completed assets formed in the construction contract at the end of the period
38.Contract liabilities
39. 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 | 235,863,317.11 | 436,967,426.67 | 520,938,717.39 | 151,892,026.39 |
| II. Welfare after waving of position-fixed provision scheme | 2,283,660.06 | 40,040,282.86 | 40,605,874.12 | 1,718,068.80 |
| III. Termination benefit | 11,560,344.89 | 11,143,973.69 | 416,371.20 | |
| Total | 238,146,977.17 | 488,568,054.42 | 572,688,565.20 | 154,026,466.39 |
（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, | 169,708,173.64 | 377,101,853.63 | 460,750,395.93 | 86,059,631.34 |
| allowances and subsidies | ||||
| 2.Employee welfare | 137,405.99 | 12,550,058.07 | 12,657,668.56 | 29,795.50 |
| 3. Social insurance premiums | 1,517,087.32 | 20,751,623.48 | 21,045,444.72 | 1,223,266.08 |
| Including：Medical insurance | 1,137,093.83 | 18,110,212.74 | 18,204,744.71 | 1,042,561.86 |
| Work injury insurance | 243,792.72 | 1,098,021.20 | 1,213,010.02 | 128,803.90 |
| Maternity insurance | 136,200.77 | 1,543,389.54 | 1,627,689.99 | 51,900.32 |
| 4. Public reserves for housing | 1,918,300.75 | 16,816,501.65 | 18,217,506.12 | 517,296.28 |
| 5.Union funds and staff education fee | 62,196,228.18 | 7,252,493.91 | 5,733,132.27 | 63,715,589.82 |
| Other | 386,121.23 | 2,494,895.93 | 2,534,569.79 | 346,447.37 |
| Total | 235,863,317.11 | 436,967,426.67 | 520,938,717.39 | 151,892,026.39 |
（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 | 2,130,682.36 | 36,925,506.77 | 37,397,676.42 | 1,658,512.71 |
| 2.Unemployment insurance | 152,977.70 | 3,114,776.09 | 3,208,197.70 | 59,556.09 |
| Total | 2,283,660.06 | 40,040,282.86 | 40,605,874.12 | 1,718,068.80 |
40. Taxes payable
In RMB
| Items | Closing balance | Opening balance |
| VAT | 191,328,836.79 | 349,650,560.67 |
| Enterprise Income tax | 283,877,459.79 | 307,974,748.03 |
| Individual Income tax | 10,747,903.73 | 8,509,011.91 |
| City Construction tax | 5,750,907.26 | 13,922,593.39 |
| Land VAT | 99,050,016.88 | 101,545,748.03 |
| House property tax | 8,984,992.63 | 10,701,618.07 |
| Land use tax | 1,513,468.97 | 1,534,812.83 |
| Educational surtax | 5,023,311.50 | 10,584,164.68 |
| Stamp Tax | 606,367.93 | 3,930,901.55 |
| Other | 5,038,174.18 | 8,818,967.96 |
| Total | 611,921,439.66 | 817,173,127.12 |
41.Other payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Interest payable | 202,034,241.49 | 117,554,951.58 |
| Dividend payable | 401,117,508.26 | |
| Other account payable | 1,889,769,315.56 | 1,972,048,725.02 |
| Total | 2,492,921,065.31 | 2,089,603,676.60 |
（1）Interest payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term loans interest of installment and interest charge | 22,047,586.88 | 37,542,540.23 |
| Enterprise bond interest | 160,788,325.16 | 71,935,414.10 |
| Short term loan interest payable | 19,198,329.45 | 8,076,997.25 |
| Total | 202,034,241.49 | 117,554,951.58 |
（2）Dividends payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Common dividends | 401,117,508.26 | |
| Total | 401,117,508.26 |
(3)Other payable
1）Disclosure by nature
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Current account | 806,351,870.24 | 632,884,079.05 |
| Project Current account | 604,352,980.73 | 558,426,427.62 |
| Deposit | 319,706,081.62 | 370,070,455.32 |
| Individual official borrowing | 41,634,194.91 | 95,995,501.74 |
| Government Subsidy | 15,000,000.00 | 15,000,000.00 |
| Social security withholding | 7,647,710.80 | 8,526,750.21 |
| Advance funds | 7,921,620.45 | 10,363,123.11 |
| Stock right fund | 71,923,529.95 | 266,310,044.77 |
| Restricted stock repurchase obligations | 4,422,320.00 | 4,422,320.00 |
| Other | 10,809,006.86 | 10,050,023.20 |
| Total | 1,889,769,315.56 | 1,972,048,725.02 |
(2) Other payables with large amount and aging of over one year
Other notesThe amount of important other accounts payable over one year at the end of the period is 483905338.77 yuan.Outstanding or uncarried forward reason is that settlement conditions have not been met.
42. Divided into liability held for sale
43.Non-current liabilities due within 1 year
In RMB
| Items | Closing balance | Opening balance |
| Long-term loans due within 1 year | 1,561,148,956.04 | 2,523,290,150.75 |
| Bond payable due within 1 year | 953,557,987.37 | |
| Long-term Account payable due within 1 year | 775,434,725.29 | 1,124,359,280.45 |
| Deferred earnings due within one year | 49,743,433.71 | |
| Total | 3,290,141,668.70 | 3,697,392,864.91 |
Other notes：
Note 1: Non-current liabilities due within one year was decreased at the end of the period, The main reason is thedecrease in borrowings due within one year.Note 2: long-term loans due within one year could be referred to Note VII,48.Note 3: long-term account receivable due within one year could be referred to Note VII,45.
44. Other current-liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Balance in year-end | Balance in year-begin |
| USD exchange | 68,747,000.00 | 68,632,000.00 |
| For resale tax | 133,074,093.64 | 136,561,128.73 |
| Financing | 102,000,000.00 | 110,000,000.00 |
| Total | 303,821,093.64 | 315,193,128.73 |
45. Long-term loan
(1) Category of long-term loan
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pledge loans | 469,750,000.00 | 450,000,000.00 |
| Mortgage loans | 2,531,090,356.04 | 3,013,496,417.47 |
| Guarantee loans | 1,761,000,000.00 | 1,801,383,333.28 |
| Less ：Long-term loan due 1 year | -1,561,148,956.04 | -2,523,290,150.75 |
| Total | 3,200,691,400.00 | 2,741,589,600.00 |
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 1,761,000,000.00 is both the mortgage loan and the guarantee loan, reclassified intothe non-current liabilities due within one year RMB 637,358,000.00.Including：（1） Tunghsu Group Co., Ltd., Li Zhaoting and Li Qing provide joint and several liability guarantee forthe Company's loan of 115,000,000.00 yuan, of which 115,000,000.00 yuan is classified as non-current liabilitiesdue within one year; Tunghsu Group Co., Ltd. and Li Zhaoting provide the Company with a joint and severalliability guarantee of 96,000,000.00 yuan, of which 96,000,000.00 yuan is reclassified as non-current liabilitiesdue within one year; Tunghsu Group Co., Ltd., Tunghsu Optoelectronic Investment Co., Ltd. and Li Zhaotingprovide joint and several liability guarantee for the Company's 400,000,000.00 yuan, of which 400,000,000.00yuan is reclassified as the non-current liabilities due within one year; Tunghsu Group Co., Ltd., its subsidiariesLiaoning Tunghsu Sanbao Intelligent Technology Co., Ltd. and Li Zhaoting provide joint and several liabilityguarantee for the Company's loan of 500,000,000.00 yuan, of which 4,000,000.00 yuan is reclassified asnon-current liabilities due within one year; Tunghsu Group Co., Ltd. provides joint and several liability guaranteefor the grandson company Sichuan Tunghsu Fanrong Construction and Development Co., Ltd. on 200,000,000.00yuan;
(2) Japan Electric Nitrous Co., Ltd. provides joint and several liability guarantee for the loan of 188,000,000.00yuan of the Sub-susidiaries- Fuzhou Xufu Optoelectronic Technology Co., Ltd., of which 22,358,000.00 yuan isreclassified as non-current liabilities due within one year; (3) The Company provides joint and several liability
guarantee for the Sub-susidiaries -Chenzhou Xuhong Transportation Construction Co., Ltd. on 262,000,000.00yuan, while Chenzhou Huashun Automobile Transportation Co., Ltd. provides counter guarantee, of which 0.00yuan is reclassified as non-current liabilities due within one year.Note 3: The mortgage loan of 2,531,090,356.04 yuan is both mortgage loan and guarantee loan. It is reclassifiedinto non-current liabilities of 921,840,956.04 yuan due within one year.Including：(1) The non-current liabilities reclassified and transferred into one-year maturity in the loan of136,000,000.00 yuan are 68,000,000.00 yuan. 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 937,500,000.00yuan are 375,000,000.00 yuan. The collateral and guarantor of the loan are: a. 8 precious metal platinum passageassets owned by Wuhu Tunghsu Optoelectronic Technology Co., Ltd. provides mortgage and guarantee; b. TheCompany provides joint and several liability guarantee for Wuhu Tunghsu Optoelectronic Technology Co., Ltd.,the subsidiary of the Company.
(3) The non-current liabilities reclassified and transferred into one-year maturity in the loan of 420,000,000.00yuan are 35,000,000.00 yuan. The mortgage and pledge guarantee of the loan are: a. Real estates YFQZYZ No.20150301716, etc. of Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd.; b. Tunghsu Group Co., Ltd. shallprovide joint liability guarantee for Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd. c. It provides pledgeguarantee of 40 million shares.
(4) The non-current liabilities reclassified and transferred into one-year maturity in the loan of 91,556.04 yuan are91,556.04 yuan. The collateral and guarantor of the loan are: Zeng Jiankai shall provide joint liability guaranteeand vehicle with a value of RMB 729,238.00 as collateral;
(5) The non-current liabilities reclassified and transferred into one-year maturity in the roan of 375,000,000.00yuan are 150,000,000.00 yuan. The collateral and guarantor of the loan are: a. Shijiazhuang Xuxin OptoelectronicTechnology Co., Ltd., the mortgagor, provides mortgage guarantee with the assets formed by the mortgagableProject, including the land use right, plants and other buildings, machinery and equipment (including the threeprecious metal platinum passages), etc.; b. Tunghsu Group Co., Ltd. and the couple Li Zhaoting and Li Qingprovide joint and several liability guarantee.
(6) The amount reclassified and transferred into one-year maturity in the roan of 290,000,000.00 yuan is80,000,000.00 yuan. 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.
(7) The non-current liabilities reclassified and transferred into one-year maturity in the roan of 372,498,800.00yuan are 213,749,400.00 yuan. The collateral and guarantor of the loan are: a. Tunghsu Group Co., Ltd., theguarantor, provides joint liability guarantee to the Lender for the loan equivalent to RMB 450 million under theProject and the interest, penalty interest, compound interest, compensation, liquidated damages, damage awardsand the expenses of the realized creditor's rights thereof; b. The appraisal value of the collateral of the buildings,machinery and equipment on the ground (including 4 precious metal platinum passages) is 1,055,713,019.27yuan.Note 4: The pledge loan of 469,750,000.00 yuan is both a pledge loan and a guarantee loan, and the non-currentliabilities reclassified and transferred into one-year maturity shall be 1,950,000.00 yuan.Of which (1) For the loan of 450,000,000.00, the loan pledge and the guarantor are: a. The pledge is the RMB 5million circulating stocks of Tunghsu Optoelectronic Technology Co., Ltd. held by Tunghsu Group Co., Ltd. andthe full pledge of the equity corresponding to the paid-in contribution of 178,750,000.00 yuan of ChengduTunghsu Intelligent Technology Co., Ltd. held by Tunghsu Group Co., Ltd.; b. Tunghsu Group Co., Ltd. and LiZhaoting provide guarantee;
(2) For the loan of 19,750,000.00 yuan, the pledge and guarantor of the loan are: a. The pledge is the accountsreceivable of 84,330,000.00 yuan used by Huzhou Mingshuo Optoelectronic Technology Co., Ltd.; B. TunghsuGroup Co., Ltd. provides guarantee.Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.50%.
46. Bonds payable
（1）Bonds payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| 15 Tunghsu bonds | 953,557,987.37 | 952,223,306.45 |
| Mid-term note I | 2,988,490,963.78 | 2,986,250,396.83 |
| Mid -term note II | 1,693,614,361.86 | 1,692,345,122.04 |
| Convertible bonds | 600,000,000.00 | |
| Less：Bond payable due 1 year | -953,557,987.37 | |
| Total | 5,282,105,325.64 | 5,630,818,825.32 |
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetualcapital securities that classify as financial liability)
In RMB
| Boond name | Par value | Date of issue | Bond period | Issued amount | Opening balance | Issue of current period | Interest withdrawn as per par value | Amortization of preminum or discount | Current repayment | Ending balance |
| 15 Tunghsu bonds | 956,042,700.00 | 2015.5.19 | 5 years | 1,000,000,000.00 | 952,223,306.45 | 60,000,000.00 | 1,334,680.92 | 953,557,987.37 | ||
| Mid-term note I | 3,000,000,000.00 | 2016.11.17 | 5 years | 3,000,000,000.00 | 2,986,250,396.83 | 139,280,000.00 | 2,240,566.95 | 2,988,490,963.78 | ||
| Mid -term note II | 1,700,000,000.00 | 2016.12.02 | 5 years | 1,700,000,000.00 | 1,692,345,122.04 | 85,000,000.00 | 1,269,239.82 | 1,693,614,361.86 | ||
| Convertible bonds | 600,000,000.00 | 2019.5.21 | 3 years | 600,000,000.00 | 600,000,000.00 | 4,224,996.01 | 600,000,000.00 | |||
| Less：Bond payable due 1 year | 956,042,700.00 | 1,000,000,000.00 | -953,557,987.37 | |||||||
| Total | -- | -- | -- | 7,300,000,000.00 | 5,630,818,825.32 | 600,000,000.00 | 288,504,996.01 | 4,844,487.69 | 5,282,105,325.64 |
(3) Note to conditions and time of share transfer of convertible bonds
Guangxi Sunlong Automobile Manufacturing Co., Ltd., a subsidiary of the Company, issued 600 million yuan ofnon-public convertible bonds on May 21, 2019. According to the prospectus for Non-public Issuance ofConvertible Corporate Bonds of Guangxi Sunlong Automobile Manufacturing Co., Ltd., the number of bondsissued is not more than 600 million yuan, totaling 6 million bonds, with the face value of each bond of 100 yuan,which are issued at face value.; The issuance period shall not exceed 36 months; The coupon rate is 6.25%, theinterest will be paid in installments and principal will be repaid at maturity.
Term of conversion: After 33 months from the expiration of the issuance period, the holder can convert each bond(100 yuan) into the equity of 160 yuan for the issuer at a ratio of 160.
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debtNilNotes: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%.
47. Lease liability
48. Long-term payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term payable | 1,703,412,663.14 | 2,644,309,592.95 |
| Total | 1,703,412,663.14 | 2,644,309,592.95 |
(1) Long-term payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term payable | 2,731,286,982.05 | 4,441,492,662.34 |
| Less：Unconfirmed financing costs | 252,439,593.62 | 672,823,788.94 |
| Less：Port due Within 1 year | 775,434,725.29 | 1,124,359,280.45 |
Other notesNote: Tunghsu Group Co., Ltd. provides a guarantee of RMB 933,547,888.88 for financial lease, Tunghsu GroupCo., Ltd. and Li Zhaoting provide a guarantee of RMB 930,371,262.5 for financial lease, Tunghsu Group ,YangJianzhong and Hong Shuping provide a guarantee of RMB 102,905,470.25 for the financial lease; Subsidiaries ofthe Company provide RMB 295,583,333.32 as security deposit pledge for financing lease; Sub-Subsidiaries of theCompany provide RMB 35,880,000.00 as security deposit pledge for financing leaseThe production lines and machinery and equipment of the subsidiaries of the Company provide a mortgage ofRMB 177,639,027.10 for financing lease. A subsidiary of the company obtained 168 electric bus batteries underfinancial lease, totaling 255,360,000.00 yuan.
（2）Specific payable
49. Long-term employee salary payable
（1）Long-term employee salary payable
（2）Changes of defined benefit plans
50. Estimates liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Balance in year-end | Balance in year-begin | Rreason |
| Lispendens | 20,944,899.84 | 20,944,899.84 | |
| Product guarantee | 71,224,325.09 | 78,820,850.20 |
| Total | 92,169,224.93 | 99,765,750.04 | -- |
51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Govemment Subsidy | 659,798,232.60 | 51,826,087.17 | 27,904,079.24 | 683,720,240.53 | |
| Not realized after sale rental return | 16,348,166.71 | 16,348,166.71 | |||
| Total | 676,146,399.31 | 51,826,087.17 | 44,252,245.95 | 683,720,240.53 | -- |
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） | 20,949,600.00 | 1,122,300.00 | 2,244,600.00 | 22,071,900.00 | Related to assets | |||
| Grant of Industry Revitalizatio n and Technology Reconstructio n Project | 2,177,778.05 | 116,666.64 | 233,333.28 | 2,294,444.69 | Related to assets | |||
| Technical reconstruction | 2,133,333.29 | 133,333.33 | 266,666.68 | 2,266,666.64 | Related to assets | |||
| Grant of Glass Substrate Project | 7,999,999.94 | 500,000.00 | 1,000,000.00 | 8,499,999.94 | Related to assets | |||
| Industry Development Fund | 3,733,333.29 | 233,333.33 | 466,666.68 | 3,966,666.64 | Related to assets | |||
| Project finance discount | 250,666.73 | 15,666.67 | 31,333.32 | 266,333.38 | Related to assets | |||
| Grant of Industry Revitalizatio n and Technology Reconstruction n Project | 58,638,000.07 | 3,257,666.67 | 6,515,333.32 | 61,895,666.72 | Related to assets | |||
| 2013 Provincial strategic emerging industries of special grant funds | 3,583,333.40 | 166,666.67 | 333,333.32 | 3,750,000.05 | Related to assets | |||
| Technology | 24,510,333.32 | 1,078,000.00 | 2,156,000.00 | 25,588,333.32 | Related to |
| reconstruction on Special funds | assets | |||||||
| Investment and Subsidies of “Double Hundred Plan” Project granted by the People's Government of Henan Province | 1,383,333.33 | 100,000.02 | 200,000.00 | 1,483,333.31 | Related to assets | |||
| TFT glass substrate technology R& D fund | 69,166.77 | 4,999.98 | 10,000.00 | 74,166.79 | Related to assets | |||
| TFT glass substrate project Subsidy | 4,611,111.06 | 333,333.36 | 666,666.70 | 4,944,444.40 | 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 | 6,455,555.57 | 466,666.68 | 933,333.33 | 6,922,222.22 | Related to assets | |||
| TFT glass substrate project Subsidy | 9,222,222.25 | 666,666.66 | 1,333,333.33 | 9,888,888.92 | Related to assets | |||
| Subsidy Major Scientific and Technical Projects by Finance Bureau of Zhengzhou City | 461,111.09 | 33,333.36 | 66,666.67 | 494,444.40 | Related to assets | |||
| Financial Supports for National Key Industry and Technical Transformation on Projects Granted by the Municipal Finance Bureau | 6,455,555.57 | 466,666.68 | 933,333.33 | 6,922,222.22 | Related to assets |
| Economic and Technological Development Zone Finance Bureau Industrial Development Support Fund | 3,227,777.76 | 233,333.34 | 466,666.67 | 3,461,111.09 | Related to assets | |||
| Funds for Independent Innovation of Provincially Supported Enterprises | 2,766,666.71 | 199,999.98 | 400,000.00 | 2,966,666.73 | Related to assets | |||
| Supporting Funds on Finance Discounts | 922,222.25 | 66,666.66 | 133,333.33 | 988,888.92 | Related to assets | |||
| Funds for Education, Science and Culture Granted by the Finance Bureau | 691,666.71 | 49,999.98 | 100,000.00 | 741,666.73 | Related to assets | |||
| Supporting Funds for Industrial Structure -adjusting Projects Granted by the Regional Finance Bureau | 1,368,888.82 | 93,333.36 | 186,666.67 | 1,462,222.13 | Related to assets | |||
| Industry discount and expenses | 791,111.08 | 53,333.34 | 106,666.67 | 844,444.41 | Related to assets | |||
| Financial discount | 2,527,777.84 | 166,666.68 | 333,333.33 | 2,694,444.49 | Related to assets | |||
| Industrial restructuring project financial funds | 2,853,333.29 | 160,000.02 | 320,000.00 | 3,013,333.27 | Related to assets | |||
| Special Funds for High-end Information Industry Chain Granted by the Finance Bureau of the Economic and Technological l Development Zone | 3,194,444.43 | 166,666.68 | 333,333.33 | 3,361,111.08 | Related to assets | |||
| 2015 project | 25,398,566.28 | 1,145,800.02 | 2,291,600.16 | 26,544,366.42 | Related to |
| equipment investment subsidies | 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 | 2,065,555.29 | 86,666.64 | 173,333.40 | 2,152,222.05 | Related to assets | |||
| Project subsidy of Chongqing Liangjiang New Area Finance Bureau | 1,760,000.00 | 1,760,000.00 | Related to assets | |||||
| 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 | 21,500,000.00 | 1,000,000.00 | 2,000,000.00 | 22,500,000.00 | Related to assets | |||
| The high-tech zone appropriates baseboard projects | 5,013,333.29 | 213,333.33 | 426,666.68 | 5,226,666.64 | Related to assets | |||
| Production line award fund | 16,228,012.57 | 753,471.70 | 1,506,943.40 | 16,981,484.27 | Related to assets | |||
| Special fund for the transformation of scientific and technological achievements in 2015 | 4,887,756.76 | 317,580.90 | 635,161.74 | 5,205,337.60 | Related to assets | |||
| G8.5tft-lcd glass substrate manufacturing precision intelligent digital workshop construction project | 42,000,000.00 | 1,500,000.00 | 40,500,000.00 | Related to assets | ||||
| Investment in the Central | 2,333,333.56 | 399,999.96 | 799,999.93 | 2,733,333.53 | Related to assets |
| Budget of Strategic emerging Industries | ||||||||
| 2011Key technical transformation project funds | 291,666.78 | 49,999.98 | 99,999.96 | 341,666.76 | Related to assets | |||
| 2011Strategic emerging industry development funds | 335,416.78 | 57,499.98 | 114,999.96 | 392,916.76 | Related to assets | |||
| 2012Electronic Information Industry Development Assistance Project | 583,333.22 | 100,000.02 | 200,000.04 | 683,333.24 | Related to assets | |||
| Subsidies from the Bureau of Finance of the Economic and technological Development Zone | 7,799,999.93 | 400,000.02 | 800,000.04 | 8,199,999.95 | Related to assets | |||
| 2013Strategic emerging industry funds | 326,110.98 | 16,666.68 | 33,333.46 | 342,777.76 | Related to assets | |||
| Mianyang Municipal Bureau of Finance Special funds | 196,666.64 | 10,000.02 | 20,000.00 | 206,666.62 | Related to assets | |||
| Glass substrate finishing production Transformation Project | 454,999.98 | 23,333.34 | 46,666.68 | 478,333.32 | Related to assets | |||
| Special fund subsidy for industrial development of municipal financial bureau | 360,555.45 | 18,333.36 | 36,666.72 | 378,888.81 | Related to assets | |||
| 2013 fund of strategic new industry | 3,277,777.74 | 166,666.68 | 333,333.36 | 3,444,444.42 | Related to assets | |||
| Sichuan Province Industrial Transformation and upgrading Project 2015 | 15,708,333.41 | 724,999.98 | 1,449,999.96 | 16,433,333.39 | Related to assets |
| Special funds for Industrial Development in 2016 | 33,448,382.99 | 1,601,092.62 | 3,202,185.24 | 35,049,475.61 | Related to assets | |||
| Technical Reformation of key Green Technology for Glass substrate（840） | 7,700,000.00 | 280,000.00 | 560,000.00 | 7,980,000.00 | Related to assets | |||
| Intelligent manufacturing pilot demonstration project subsidy fund（100） | 866,666.66 | 33,333.34 | 66,666.67 | 899,999.99 | 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 | 88,666.68 | 3,901,333.32 | Related to assets | ||||
| Annual production of 10 million square meters high aluminum ultra-thin display panel glass items | 4,700,000.00 | 104,444.44 | 4,595,555.56 | Related to assets | ||||
| 2017 funds for technological Transformation of Electronic Information Industry | 30,000,000.00 | 666,666.68 | 29,333,333.32 | Related to assets | ||||
| Subsidy fund for technical transformation of industrial enterprises in Fuzhou | 2,408,000.00 | 86,000.00 | 2,322,000.00 | Related to assets | ||||
| Technical Transformati | 1,204,000.00 | 43,000.00 | 1,161,000.00 | Related to assets |
| on of Industrial Enterprises in Fuzhou and supporting subsidy funds in Fuqing City | ||||||||
| 2018 Industrial Internet Innovation Development Project and Intelligent Manufacturing Integrated Standardization and New Model Application Project Subsidy | 1,880,000.00 | 45,301.20 | 1,834,698.80 | Related to assets | ||||
| 2018 Industrial Enterprise technological Transformation subsidy Fund Fuqing Local supporting Grant | 940,000.00 | 17,090.91 | 922,909.09 | Related to assets | ||||
| 2018 Industrial Internet Innovation Development Project and Intelligent Manufacturing Integrated Standardization and New Model Application Project Subsidy | 43,699,421.97 | 1,560,693.66 | 42,138,728.31 | 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 | 11,628,153.54 | 447,236.64 | 894,473.28 | 12,075,390.18 | Related to assets |
| material | ||||||||
| Glass substrate production line transformation special funds | 30,000,000.00 | 3,000,000.00 | 27,000,000.00 | 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 | 793,075.77 | 30,570.16 | 30,699.73 | 793,205.34 | 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 | 1,914,399.00 | 1,914,399.00 | Related to assets | |||||
| Project subsidy from the Bureau of Finance of the Economic Development Zone | 5,788,633.30 | 294,478.50 | 588,957.06 | 6,083,111.86 | Related to assets | |||
| National key R & D Program key basic Materials Technical | 2,280,000.00 | 2,280,000.00 | Related to assets |
Projectsubsidy
Grouptransfersubsidy(National keyR & D Plan,key basicMaterialsTechnologyPromotionandindustrialization keySpecialProject 2016)
| 117,100.00 | 117,100.00 | Related to assets |
| 13,200.00 | 13,200.00 | Related to assets | ||||||
| 2018 Special funds for technological transformation | 600,000.00 | 600,000.00 | Related to assets | |||||
| Program Excellence Project Funding Allowance. | 400,000.00 | 400,000.00 | Related to assets | |||||
| 2019 Provincial Science and Technology Plan | 2,000,000.00 | 2,000,000.00 | Related to assets | |||||
| National key R & D Program key basic Materials Technical Project subsidy | 7,340,000.00 | 7,340,000.00 | Related to assets | |||||
| Financial subsidy for the major scientific and technological achievements transformation project of "High Aluminium cover Glass | 1,000,000.00 | 33,333.32 | 966,666.68 | Related to assets |
| complete Technology" | ||||||||
| 2017 Special Fund for Industrial Development in Economic Development Zone | 4,275,362.32 | 217,391.28 | 434,782.61 | 4,492,753.65 | Related to assets | |||
| 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 | 80,000.10 | 20,000.06 | 39,999.98 | 100,000.02 | Related to assets | |||
| Financial allocation for Strategic emerging Industries in Sichuan Provinc | 2,754,000.00 | 153,000.00 | 306,000.00 | 2,907,000.00 | Related to assets | |||
| Technical revamping items of 300,000 production Line of Pole-less Lights Ballast | 472,999.84 | 43,000.02 | 86,000.04 | 515,999.86 | Related to assets | |||
| Intelligent Engineering Laboratory of High efficiency Lighting system | 1,383,333.21 | 100,000.02 | 200,000.04 | 1,483,333.23 | Related to assets | |||
| District level technical reform project subsidy 150 | 1,500,000.00 | 1,500,000.00 | Related to assets | |||||
| The subsidy for the construction of the factory building is 1,892,900 yuan | 1,816,715.17 | 8,096.93 | 70,324.39 | 1,878,942.63 | Related to assets | |||
| Glass substrate project subsidy fund | 84,339,018.30 | 658,196.34 | 1,316,392.68 | 84,997,214.64 | Related to assets | |||
| Science and education | 2,287,595.41 | 2,287,595.41 | Related to assets |
| support fund | ||||||||
| Subsidy for post stabilization | 2,833.74 | 2,833.74 | Related to assets |
52.Other Non-current liabilities
Whether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Shangao Zhuoyue Financing | 400,000,000.00 | |
| Yingkou coastal financing | 108,000,000.00 | 108,000,000.00 |
| Total | 508,000,000.00 | 108,000,000.00 |
Other notesNote 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 obligationsto 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.2: According to the capital increase and stock expansion agreement signed by Tunghsu Photoelectric TechnologyCo., Ltd., Shanghai Shenlong Bus Co., Ltd. and Shangao (Yantai) Zhuoyue Investment Center (limitedpartnership), Shangao (Yantai) Zhuoyue Investment Center (limited partnership) has increased the capital ofShanghai Shenlong Bus Co., Ltd. by 400 million yuan. Two years later, Tunghsu PhotoelectricTechnology Co.,Ltd. will determine the repurchase price based on the audited net assets per share of Shanghai Shenlong Bus Co.,Ltd.
53.Stock capital
In RMB
| Balance Year-beginning | Increase/decrease this time (+ , - ) | Balance year-end | |||||
| Issuing of new share | Bonus shares | Transferred from reserves | Other | Subtotal | |||
| Total shares | 5,730,250,118.00 | 5,730,250,118.00 | |||||
54. Other equity instruments
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual BondOutstanding at the End of the Period
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End of thePeriod
55. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current | Year-end balance |
| period | period | |||
| Share premium | 21,754,711,018.52 | 30,005,405.78 | 21,816,238,799.56 | |
| Other capital reserves | 31,522,375.26 | 31,522,375.26 | ||
| Total | 21,786,233,393.78 | 30,005,405.78 | 21,816,238,799.56 |
Other exlanation, including changes and reasons for changes：
The main reason is the increase in capital reserve caused of Introduction of investors of the subsidiary companyWeiyu of Wuhu Tunghsu Photoelectric Equipment Technology Co., Ltd.
56.Treasury stock
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| The obligation to repurchase equity incentive | 4,422,320.00 | 4,422,320.00 | ||
| Total | 4,422,320.00 | 4,422,320.00 |
57. Other comprehensive income
In RMB
| Items | Year-beginning balance | Amount of current period | Year-end balance | |||||
| Amount incurred before income tax | Less：Amount transferred into profit and loss in the current period that recognied into other comprehensive income in prior period | Less：Prior period included in other composite income transfer to retained income in the current period | Less：Income tax expenses | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | -29,175.80 | -29,175.80 | ||||||
| Balance form the translation of foreign currency financial statements | -29,175.80 | -29,175.80 | ||||||
| Total of Other comprehensive income | -29,175.80 | -29,175.80 | ||||||
58. Special reserves
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Safety production cost | 12,614,331.35 | 2,075,391.67 | 1,812,566.21 | 12,877,156.81 |
| Total | 12,614,331.35 | 2,075,391.67 | 1,812,566.21 | 12,877,156.81 |
59. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current | Year-end balance |
| period | period | |||
| Statutory surplus reserve | 245,507,019.95 | 245,507,019.95 | ||
| Total | 245,507,019.95 | 245,507,019.95 |
60. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | 4,750,977,557.86 | 3,009,860,755.82 |
| Retained earnings after adjustments at the year end | 4,750,977,557.86 | 3,009,860,755.82 |
| Add: Net profit attributable to owners of the Company for the period | 844,176,169.98 | 2,163,607,505.39 |
| Less: Appropriation to statutory surplus reserve | 21,373,195.09 | |
| Common stock dividend payable | 401,117,508.26 | 401,117,508.26 |
| Common stock dividends converted to shares | 5,194,036,219.58 | 4,750,977,557.86 |
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 0.00
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 8,175,566,352.37 | 6,401,682,155.35 | 9,999,123,145.77 | 8,447,438,316.36 |
| Other business | 299,522,870.56 | 170,211,061.59 | 1,130,728,645.11 | 574,551,580.73 |
| Total | 8,475,089,222.93 | 6,571,893,216.94 | 11,129,851,790.88 | 9,021,989,897.09 |
Whether implemented new revenue guidelines
□ Yes √No
Other notes
62. Business tax and subjoin
In RMB
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 11,762,133.66 | 13,771,482.99 |
| Education surcharge | 8,444,523.53 | 10,156,508.49 |
| Property tax | 12,524,959.32 | 6,512,792.08 |
| Land use tax | 9,661,644.39 | 10,858,460.78 |
| vehicle and vessel usage tax | 57,245.66 | 39,819.43 |
| Stamp tax | 2,760,842.32 | 4,395,608.94 |
| Land VAT | 357,537.50 | 140,193,026.84 |
| Other | 1,158,227.26 | 168,421.15 |
| Total | 46,727,113.64 | 186,096,120.70 |
Other notesThe decrease in the current period compared with the same period last year is mainly due to the realization ofsales income of Beijing Xufeng Real Estate Co., Ltd., a subsidiary of the previous period, and the increase in landvalue-added tax
63.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage and welfare insurance | 39,543,142.17 | 32,420,959.74 |
| Shipment | 46,954,680.10 | 25,834,245.26 |
| Travel | 17,795,433.29 | 7,538,832.95 |
| Business expenses | 14,498,461.05 | 8,817,205.59 |
| Office fee | 5,001,103.44 | 3,923,420.20 |
| Consumables and repairs | 1,298,294.17 | 562,745.82 |
| Depreciation | 807,590.31 | 730,676.07 |
| Advertising | 2,880,968.06 | 963,064.93 |
| Consultancy services | 15,297,062.04 | 6,399,309.05 |
| \Technology Services | 8,290,060.23 | 3,967,469.34 |
| Other | 3,445,921.68 | 2,734,763.47 |
| Total | 155,812,716.54 | 93,892,692.42 |
64. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage and additional cost | 141,870,875.73 | 82,041,857.60 |
| Business expenses | 8,386,889.15 | 7,359,258.97 |
| Labor protect fee | 762,086.89 | 1,128,621.91 |
| Office fees | 7,209,981.58 | 6,110,342.22 |
| Travel fees | 6,119,421.21 | 8,120,703.11 |
| Publicize Fees | 5,973,770.82 | 3,787,328.88 |
| Miscellaneous charges | 8,227,361.97 | 7,514,986.97 |
| Depreciation accumulative | 40,297,337.40 | 39,025,365.01 |
| Low value consumables and repair costs | 9,388,453.22 | 3,471,887.09 |
| Consultation fees | 30,543,975.24 | 21,680,834.70 |
| Miscellaneous charges | 18,514,104.80 | 17,785,438.11 |
| Other | 4,823,766.56 | 6,844,771.15 |
| Total | 282,118,024.57 | 204,871,395.72 |
65. R&D Expense
In RMB
| Items | Amount of current period | Amount of previous period |
| Labor cost | 98,420,080.80 | 95,137,006.74 |
| Material expenses | 81,502,054.72 | 61,686,515.46 |
| Test inspection fee | 12,928,490.64 | 6,905,691.51 |
| Hydropower and gas charge | 9,625,875.56 | 5,292,844.69 |
| Depreciation expenses | 8,263,939.04 | 6,786,419.52 |
| Amortization of Intangible assets | 5,510,235.32 | 4,088,319.47 |
| Other | 5,076,847.15 | 5,209,509.65 |
| Total | 221,327,523.23 | 185,106,307.04 |
66. Financial expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 588,567,514.28 | 595,740,917.45 |
| Less：Interest income | 228,977,031.09 | 198,162,232.24 |
| Net interest expenses | 359,590,483.19 | 397,578,685.21 |
| Exchange gains and losses | -2,865,260.20 | -11,686,449.38 |
| Commission charge | 3,125,586.70 | 2,132,029.71 |
| Note discount rate | 1,161,678.46 | 4,213,453.93 |
| Financing | 5,747,000.00 | 2,829,302.85 |
| Other | 1,330,607.81 | 160,093.98 |
| Total | 368,090,095.96 | 395,227,116.30 |
67.Other gains
In RMB
| Items | Amount of this period | Amount of last period |
| Government subsidy | 222,438,371.95 | 108,362,056.52 |
| Personal income tax fee | 213,367.22 | |
| Total | 222,651,739.17 | 108,362,056.52 |
68. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 17,437,895.79 | 11,836,624.48 |
| Disposal of investment income from long-term equity investments | 4,366,241.83 | -2,053,558.36 |
| Financing income | 246,200.42 | 13,923,452.07 |
| Total | 22,050,338.04 | 23,706,518.19 |
69.Net exposure hedging income
70. Gains on the changes in the fair value
71. Credit impairment loss
In RMB
| Items | Amount of this period | Amount of last period |
| Loss of bad debts in other receivables | 1,577,060.92 | |
| Loss of bad debts in Long-term receivable | -140,357.02 | |
| Loss of bad accounts receivable | -11,104,066.62 | |
| Total | -9,667,362.72 |
72. Losses from asset impairment
Whether implemented new revenue guidelines
□ Yes √No
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Bad debt loss | 5,903,665.15 | |
| II.Losses for falling price of inventory | -1,753,608.15 | -6,962,254.46 |
| Total | -1,753,608.15 | -1,058,589.31 |
73. Assets disposal income
In RMB
| Source | Amount of current period | Amount of previous period |
| Non-current assets disposal gains and losses | -664,826.45 | |
| Including：Income from disposal of fixed assets | -664,826.45 | |
| Total | -664,826.45 |
74. Non-Operation income
In RMB
| Items | Amount of current period | Amount of previous period | Recorded in the amount of the non-recurring gains and losses |
| Debt restructuring gains | 484,207.00 | ||
| Government Subsidy | 320,000.00 | ||
| Net fine income | 5,241,663.64 | 95,955.07 | 5,241,663.64 |
| Other | 2,678,264.54 | 5,045,734.86 | 2,678,264.54 |
| Total | 7,919,928.18 | 5,945,896.93 | 7,919,928.18 |
Government subsidy reckoned into current gains/losses
In RMB
| Subsidy items | Issuing body | Issuing reason | Nature | Whether the impact of subsidies on the current profit and loss | Whhether special subsidies | Amount of current period | Amount of previous period | Assets-related/income –related |
| Special fund for utilization of foreign capital in 2017 | Fuqing Municipal Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in | No | No | 300,000.00 | Related to income |
| accordance with the national policies and regulations) | ||||||||
| Listing subsidy | Huzhou Municipal Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 20,000.00 | Related to income |
75.Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Donation expense | 368,000.00 | 268,500.00 | 368,000.00 |
| Non current assets disposal loss | 184,895.35 | 184,895.35 | |
| Penalty | 1,310,728.37 | 2,038,214.22 | 1,310,728.37 |
| Other | 451,804.25 | 461,097.79 | 451,804.25 |
| Total | 2,315,427.97 | 2,767,812.01 | 2,315,427.97 |
76. Income tax
(1) Details of income tax
In RMB
| Items | Amount of current period | Amount of previous period |
| Current Income tax | 231,281,445.58 | 266,217,607.40 |
| Deferred income tax | -44,372,727.73 | 15,913,168.84 |
| Total | 186,908,717.85 | 282,130,776.24 |
（2）Accounting profit and tax expense adjustment process
InRMB
| Items | Amount of current period |
| Total profit | 1,068,006,138.60 |
| Income tax expense at statutory / applicable tax rates | 160,200,920.79 |
| Effect of different tax rates applicable to subsidiaries | 26,039,381.37 |
| Income tax adjustments on prior periods | -2,191,187.78 |
| Effect of non-taxable income | -2,615,684.37 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -1,238,518.44 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -4,527,416.27 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 11,241,222.55 |
| Income tax expense | 186,908,717.85 |
77 .Other comprehensive incomeRefer to Notes 57.
78.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 | 17,952,132.76 | 2,562,489.64 |
| Government subsidy | 95,537,184.98 | 61,907,216.56 |
| Deposits income | 428,460,518.83 | 638,622,319.42 |
| Other | 26,970,627.67 | 27,459,273.74 |
| Total | 568,920,464.24 | 730,551,299.36 |
(2)Other cash paid related to operation activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Deposit | 667,549,135.01 | 1,021,839,493.62 |
| Petty cash | 45,890,764.66 | 9,329,418.54 |
| Travel expenses | 19,457,400.77 | 20,052,329.77 |
| Period expenses paid in cash | 274,373,494.91 | 284,959,912.60 |
| Total | 1,007,270,795.35 | 1,336,181,154.53 |
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Fixed deposit | 1,121,010,000.00 | 200,000,000.00 |
| Short-term financing | 219,330,013.92 | |
| Total | 1,340,340,013.92 | 200,000,000.00 |
（4）Other Cash payable related to investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Current account | 123,910,471.26 | 317,956,820.99 |
| Deposit | 120,014,093.45 | |
| At the date of disposal, the company's book cash was greater than the cash received for disposal. | 1,660,110.29 | |
| Short-term financing | 98,424,142.25 | |
| Fixed deposit | 102,860,933.44 | |
| Equity payments paid to the former shareholders of the pre-acquired subsidiary | 96,992,730.30 | |
| Other | 280,256.00 | |
| Total | 543,862,480.99 | 318,237,076.99 |
（5）Other cash received in relation to financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest income | 164,395,034.45 | 210,076,517.70 |
| Finance lease | 280,000,000.00 | |
| Debt financing | 1,025,920,000.00 | |
| Current account | 683,475,875.24 | 75,708,760.40 |
| Total | 1,873,790,909.69 | 565,785,278.10 |
（6）Other Cash payable related to Financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Bank charges | 66,267.88 | 2,106,071.31 |
| Credit deposit | 4,076,591.14 | |
| Bank Financing expenses | 1,250,000.00 | 1,900,000.00 |
| Finance lease | 566,862,486.56 | 299,742,705.14 |
| Current account | 13,207,962.70 | 332,177,258.30 |
| Total | 581,386,717.14 | 640,002,625.89 |
79. 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 | 881,097,420.75 | 894,060,729.24 |
| Add: Impairment loss provision of assets | 11,420,970.87 | 1,058,589.31 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 419,542,743.66 | 475,906,123.13 |
| Amortization of intangible assets | 24,600,846.64 | 42,850,991.09 |
| Amortization of long-term deferred expenses | 3,825,574.17 | 10,182,574.85 |
| Loss on disposals of fixed assets, intangible assets and other long-term assets ("-" for gains) | 664,826.45 | |
| Loss on write-off of fixed assets | 184,895.35 | |
| Financial cost | 434,556,225.47 | 588,837,294.67 |
| Investment losses | -22,050,338.04 | -23,706,518.19 |
| Decrease in deferred income tax assets | -39,451,085.58 | 23,648,059.15 |
| Increased in deferred income tax liabilities | -4,921,642.15 | 2,146,288.22 |
| Decrease in inventories | -1,243,527,296.77 | 703,598,779.36 |
| Decease in operating receivables | 2,382,171,230.52 | -16,508,886,465.22 |
| Increase in operating payables | -2,253,101,476.73 | 13,873,256,015.60 |
| Cash flows from operating activities | 594,348,068.16 | 83,617,287.66 |
| 2.Significant investment and financing activities not affecting cash flows | -- | -- |
| 3．Changes in cash and cash equivalents： | -- | -- |
| Ending balance of cash | 15,387,019,894.38 | 21,442,933,365.47 |
| Less: Beginning balance of cash | 14,916,637,291.04 | 25,114,660,756.25 |
| Net increase of cash and cash equivalents | 470,382,603.34 | -3,671,727,390.78 |
(2) Cash paid for acquiring subsidiaries and other business units
In RMB
| 金额 | |
| Including： | -- |
| Including： | -- |
| Add： Cash or cash equivalents paid in the current period for business combinations in the previous period | 96,992,730.30 |
| Including： | -- |
| Guangxi Sunlong Automobile Manufacture Co., Ltd. | 91,992,730.30 |
| Suzhou Tengda Optics Technology Co., Ltd. | 5,000,000.00 |
| Obtain the net cash paid by the subsidiary | 96,992,730.30 |
(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 | 0.00 |
| Including： | -- |
| WuhanTunghsu Optoelectronic Technology Co., Ltd. | 0.00 |
| Cheng Construction Co., Ltd. | 0.00 |
| Less：Cash and cash equivalents held by a controlling subsidiary | 1,660,110.29 |
| Including： | -- |
| WuhanTunghsu Optoelectronic Technology Co., Ltd. | 1,558,524.13 |
| Zhongcheng Guojian Co., Ltd. | 101,586.16 |
| Including： | -- |
| Net cash received from disposal subsidiaries | -1,660,110.29 |
（4）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-beginning |
| I. Cash | 15,387,019,894.38 | 14,916,637,291.04 |
| Including: cash in treasury | 3,242,652.56 | 2,593,055.78 |
| Bank savings could be used at any time | 15,383,782,402.29 | 14,914,044,235.26 |
| III. Balance of cash and cash equivalents at the period end | 15,387,019,894.38 | 14,916,637,291.04 |
| Including： Use of restricted cash and cash equivalents by parent companies or subsidiaries within the group | 4,221,140,438.53 | 4,890,457,106.12 |
80. Note of statement of changes in the owner's equity
81. The assets with the ownership or use right restricted
In RMB
| Items | Closing Net carrying amount | Causation of limitation |
| Cash and bank balances | 4,221,140,438.53 | Mainly for acceptance of bill of exchange security, time deposit certificate and guarantee bond, etc. |
| Inventory | 286,588,819.60 | Mortgage loans |
| Fixed assets | 10,023,924,207.63 | Set up the mortgage and the fixed assets of the financial lease |
| Intangible assets | 444,132,103.11 | Pledge loans |
| Construction in progress | 2,387,597,640.81 | Pledge loans |
| Investment property | 663,577,011.23 | Pledge loans |
| Account receivable | 1,739,594,424.68 | Factoring financing |
| Total | 19,766,554,645.59 | -- |
82. 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 | 2,816,715.22 | 6.8747 | 19,364,072.36 |
| Euro | 8,576.60 | 7.8170 | 67,043.29 |
| HKD | 3,553,929.94 | 0.8797 | 3,126,391.98 |
| yen | 77,501,332.59 | 0.0638 | 4,945,825.03 |
| Account receivable | -- | -- | |
| Including：USD | 27,138,595.64 | 6.8747 | 186,569,703.46 |
| Euro | |||
| HKD | 3,619,241.20 | 0.8797 | 3,183,846.48 |
| yen | 1,077,297,872.00 | 0.0638 | 68,748,841.00 |
| Long-term loans | -- | -- | |
| Including：USD | 4,000,000.00 | 6.8747 | 27,498,800.00 |
| Euro | |||
| HKD | |||
| Account payable | |||
| Including：USD | 17,526,645.22 | 6.8747 | 120,490,427.92 |
| Euro | 14,538,916.21 | 7.8170 | 113,650,708.05 |
| HKD | 906,708.76 | 0.8797 | 797,631.70 |
| YEN | 290,863,606.91 | 0.0638 | 18,561,751.94 |
| GBP | 1,418,980.38 | 8.7113 | 12,361,163.79 |
(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 applicable
83. Hedging
84.Govemment subsidy
1）Government subsidies confirmed in current period
In RMB
| Type | Amount | Items | Amount included in current profit or loss |
| Subsidy fund for technological transformation of industrial enterprises in 2018 | 1,880,000.00 | Deferred income | 45,301.20 |
| Industrial enterprise technical transformation subsidy funds for Fuqing local supporting subsidy in 2018 | 940,000.00 | Deferred income | 17,090.91 |
| 117,100.00 | Deferred income |
| 13,200.00 | Deferred income | ||
| Special fund for technological transformation in 2018 | 600,000.00 | Deferred income | |
| Project fund subsidy for Excellence Plan | 400,000.00 | Deferred income | |
| Provincial science and technology plan in 2019 | 2,000,000.00 | Deferred income | |
| Special fund for provincial industrial development | 7,340,000.00 | Deferred income | |
| Special fund for scientific and technological achievement transformation in 2015 | 317,580.90 | Other income | 317,580.90 |
| Award for industry-intensive towns in 2018 | 15,000.00 | Other income | 15,000.00 |
| Award for industry-intensive towns in 2018 | 80,000.00 | Other income | 80,000.00 |
| Labor and employment management center post stabilization subsidy | 33,098.25 | Other income | 33,098.25 |
| Development and reform and economic information industry awards | 50,000.00 | Other income | 50,000.00 |
| Investment and Subsidies of “Double Hundred Plan” Project granted by the People's Government of Henan Province | 100,000.02 | Other income | 100,000.02 |
| TFT glass substrate technology R& D fund | 4,999.98 | Other income | 4,999.98 |
| TFT glass substrate project Subsidy | 333,333.36 | Other income | 333,333.36 |
| Investment and Subsidies within Budget for Technological Transformation Project by National Development and Reform Commission and the Ministry of Industry and Information Technology | 466,666.68 | Other income | 466,666.68 |
| TFT glass substrate project Subsidy | 666,666.66 | Other income | 666,666.66 |
| Subsidy Major Scientific and Technical Projects by Finance Bureau of Zhengzhou City | 33,333.36 | Other income | 33,333.36 |
| Financial Supports for National Key Industry and Technical Transformation on Projects Granted by the Municipal Finance Bureau | 466,666.68 | Other income | 466,666.68 |
| Economic and Technological Development Zone Finance Bureau Industrial Development Support Fund | 233,333.34 | Other income | 233,333.34 |
| Funds for Independent Innovation of Provincially Supported Enterprises | 199,999.98 | Other income | 199,999.98 |
| Supporting Funds on Finance Discounts | 66,666.66 | Other income | 66,666.66 |
| Funds for Education, Science and Culture Granted by the Finance Bureau | 49,999.98 | Other income | 49,999.98 |
| Supporting Funds for Industrial Structure -adjusting Projects Granted by the Regional Finance Bureau | 93,333.36 | Other income | 93,333.36 |
| Industry discount and expenses | 53,333.34 | Other income | 53,333.34 |
| Henan State-owned assets holding Operation Co., Ltd. Financial discount | 166,666.68 | Other income | 166,666.68 |
| The first batch of financial funds of industrial structure adjustment project in 2013. | 160,000.02 | Other income | 160,000.02 |
| Special Funds for High-end Information Industry Chain Granted by the Finance Bureau of the Economic and Technological l Development Zone | 166,666.68 | Other income | 166,666.68 |
| 2015 project equipment investment subsidies | 1,145,800.02 | Other income | 1,145,800.02 |
| Zhengzhou City Finance Bureau in 2011 and 2012 has been the acceptance of the provincial industrial structure adjustment project the second batch of funds | 86,666.64 | Other income | 86,666.64 |
| Received new material insurance money from the Chinese people's property insurance | 1,895,092.94 | Other income | 1,895,092.94 |
| After receiving the research and development expenses of Zhengzhou science and technology enterprises in 2018, special funds will be subsidized | 6,000,000.00 | Other income | 6,000,000.00 |
| Received patent grant from Zhengzhou Economic and Technological Development Zone Management Committee | 18,400.00 | Other income | 18,400.00 |
| High-tech enterprise subsidy in 2018 | 200,000.00 | Other income | 200,000.00 |
| Investment in strategic emerging industry projects within the budget of the central government | 399,999.96 | Other income | 399,999.96 |
| Fund for municipal key technological transformation projects in 2011 | 49,999.98 | Other income | 49,999.98 |
| Fund for strategic emerging industry development promotion in 2011 | 57,499.98 | Other income | 57,499.98 |
| Projects supported by the electronic information industry development fund in 2012 | 100,000.02 | Other income | 100,000.02 |
| Subsidy of Economic and Technological Development Zone Finance Bureau | 400,000.02 | Other income | 400,000.02 |
| Glass substrate finishing achievement transformation project | 23,333.34 | Other income | 23,333.34 |
| Industrial transformation and upgrading projects in Sichuan Province in 2015 | 724,999.98 | Other income | 724,999.98 |
| Fund for strategic emerging industries in 2013 | 16,666.68 | Other income | 16,666.68 |
| Special fund of Mianyang Municipal Finance Bureau | 10,000.02 | Other income | 10,000.02 |
| Special fund subsidy for industrial development of Municipal Finance Bureau | 18,333.36 | Other income | 18,333.36 |
| Funds allocated by the Economic Development Zone Government on behalf of the Provincial Finance Department for strategic emerging industries in 2013 | 166,666.68 | Other income | 166,666.68 |
| Special fund for industrial development in Economic Development Zone in 2016 | 1,601,092.62 | Other income | 1,601,092.62 |
| Subsidy for project of Economic Development Zone Finance Bureau | 294,478.50 | Other income | 294,478.50 |
| Special fund for industrial development in Economic Development Zone in 2017 | 217,391.28 | Other income | 217,391.28 |
| Transformation project of high strength and ultrathin aluminosilicate touch screen glass production based on float process | 33,333.32 | Other income | 33,333.32 |
| Intelligent manufacturing new mode project | 88,666.68 | Other income | 88,666.68 |
| Cover glass project for ultra-thin aluminum displays with an annual output of 10 million square meters | 104,444.44 | Other income | 104,444.44 |
| Provincial industrial development in 2018 | 550,000.00 | Other income | 550,000.00 |
| Disaster relief for industrial development in flood season | 135,200.00 | Other income | 135,200.00 |
| Special project for technical transformation of electronic information industry in 2017 | 666,666.68 | Other income | 666,666.68 |
| Second batch for Economic Development Zone in 2018 -patent subsidy | 81,000.00 | Other income | 81,000.00 |
| Development of science and technology in the Economic Development Zone in 2018 | 200,000.00 | Other income | 200,000.00 |
| Patent subsidy | 9,000.00 | Other income | 9,000.00 |
| Land tax refund for coastal industrial bases | 300,000.00 | Other income | 300,000.00 |
| Subsidy fund for glass substrate project | 658,196.34 | Other income | 658,196.34 |
| Foreign trade funds for business development in 2018 | 30,000.00 | Other income | 30,000.00 |
| Provincial-level intellectual property rights compliance award supplement in 2018 | 20,000.00 | Other income | 20,000.00 |
| Subsidy for infrastructure (land refund) | 1,122,300.00 | Other income | 1,122,300.00 |
| Industrial revitalization and technological transformation projects | 116,666.64 | Other income | 116,666.64 |
| Subsidy for "Three Majors and One Innovation" emerging industries | 447,236.64 | Other income | 447,236.64 |
| Technological transformation | 133,333.33 | Other income | 133,333.33 |
| Subsidy fund for glass substrate project | 500,000.00 | Other income | 500,000.00 |
| Industrial development fund | 233,333.33 | Other income | 233,333.33 |
| Financial discount of project | 15,666.67 | Other income | 15,666.67 |
| Subsidy for industrial revitalization and technological transformation projects | 3,257,666.67 | Other income | 3,257,666.67 |
| Special fund subsidy for provincial strategic emerging industries | 166,666.67 | Other income | 166,666.67 |
| Special fund for technological transformation | 1,078,000.00 | Other income | 1,078,000.00 |
| Fund for strategic emerging industry development projects | 1,000,000.00 | Other income | 1,000,000.00 |
| Funds allocated by High-tech Zone for substrate projects | 213,333.33 | Other income | 213,333.33 |
| Reward fund for production line | 753,471.70 | Other income | 753,471.70 |
| Green key technological transformation of glass substrate (840) | 280,000.00 | Other income | 280,000.00 |
| Subsidy fund for intelligent manufacturing pilot demonstration project (100) | 33,333.34 | Other income | 33,333.34 |
| Subsidy for district-level technical transformation projects: 150 | 1,500,000.00 | Other income | 1,500,000.00 |
| Reward fund for product research and development | 86,464.80 | Other income | 86,464.80 |
| Recommended catalogue subsidy | 400,000.00 | Other income | 400,000.00 |
| Incentive funds for offshore R&D institutions in 2018 | 35,000,000.00 | Other income | 35,000,000.00 |
| Trainee subsidy | 67,200.00 | Other income | 67,200.00 |
| Incentive funds for offshore R&D institutions in 2018 | 294,000.00 | Other income | 294,000.00 |
| Special funds for science and technology for municipal industry guiding funds in 2018 | 720,000.00 | Other income | 720,000.00 |
| Provincial industrial transformation funds in 2018 | 450,000.00 | Other income | 450,000.00 |
| Provincial industry prospective projects allocated by year in 2018 | 300,000.00 | Other income | 300,000.00 |
| Provincial subsidy for enterprise research and development expenses in 2018 | 300,000.00 | Other income | 300,000.00 |
| Discount on loans | 607,800.00 | Other income | 607,800.00 |
| Economic growth support in the fourth quarter of 2018 | 400,000.00 | Other income | 400,000.00 |
| Funding for research and development in 2017 | 57,000.00 | Other income | 57,000.00 |
| Wangcheng Economic Development Zone Enterprise Compliance Award | 160,000.00 | Other income | 160,000.00 |
| Tax revenue return | 1,084,000.00 | Other income | 1,084,000.00 |
| Research fees for the 13th five-year plan | 21,400.00 | Other income | 21,400.00 |
| Direct Funds of China Building Materials International Engineering Group Co., Ltd. (4-110) (Topic 3) | 72,000.00 | Other income | 72,000.00 |
| Drawback. | 94,685,000.00 | Other income | 94,685,000.00 |
| Tax incentives | 13,353,000.00 | Other income | 13,353,000.00 |
| High-tech enterprise subsidy | 50,000.00 | Other income | 50,000.00 |
| Tax revenue reward | 56.72 | Other income | 56.72 |
| Tax incentives in 2018 | 1,345,800.00 | Other income | 1,345,800.00 |
| Tax incentives in 2018 | 160,000.00 | Other income | 160,000.00 |
| Tax incentives in 2018 | 400,000.00 | Other income | 400,000.00 |
| Tax incentives | 110,000.00 | Other income | 110,000.00 |
| Industry-incentive park award | 50,000.00 | Other income | 50,000.00 |
| Industrial support fund | 1,117,500.00 | Other income | 1,117,500.00 |
| Subsidy fund for technological transformation of industrial enterprises in Fuzhou City | 86,000.00 | Other income | 86,000.00 |
| Fuqing supporting subsidy for technological transformation of industrial enterprises in Fuzhou City | 43,000.00 | Other income | 43,000.00 |
| G8.5 TFT-LCD glass substrate precision intelligent manufacturing digital workshop construction project | 1,500,000.00 | Other income | 1,500,000.00 |
| Project subsidy for industrial internet innovation development project and integrated standardization and new mode application of intelligent manufacturing in 2018 | 1,560,693.66 | Other income | 1,560,693.66 |
| Import awards in 2018 | 200,000.00 | Other income | 200,000.00 |
| Urban bus subsidy of Municipal Finance Bureau | 6,232,555.60 | Other income | 6,232,555.60 |
| Key new product projects | 20,000.06 | Other income | 20,000.06 |
| Financial fund for strategic emerging industries in Sichuan Province | 153,000.00 | Other income | 153,000.00 |
| Technical transformation project of 300,000 sets of electrodeless lamp ballast production line | 43,000.02 | Other income | 43,000.02 |
| Intelligent Engineering Laboratory of High Efficiency Lighting System | 100,000.02 | Other income | 100,000.02 |
| Tax return for Huaying City Finance Bureau in 2016 and 2017 | 1,894,975.00 | Other income | 1,894,975.00 |
| The surtax in the first quarter and the tax reduction policy for small-scale taxpayers in the current period are applicable, with a reduction rate of 50% | 1,004.17 | Other income | 1,004.17 |
| Tax Preferences | 1,106.78 | Other income | 1,106.78 |
| financial aid | 25,800.00 | Other income | 25,800.00 |
| Dynamic monitoring subsidy for unemployment | 300.00 | Other income | 300.00 |
| Subsidy for post stabilization | 2,833.74 | Other income | 2,833.74 |
| Employment subsidy | 7,650.00 | Other income | 7,650.00 |
| Subsidy fund for sales income | 15,348,600.00 | Other income | 15,348,600.00 |
| Spring festival solatium in 2019 | 50,000.00 | Other income | 50,000.00 |
| Bonus for automobile in the consumption month | 8,126,000.00 | Other income | 8,126,000.00 |
| Plant building award is 875,500 yuan | 30,570.01 | Other income | 30,570.01 |
| Plant counstruction Subsidy is 1.8929 million | 8,096.93 | Other income | 8,096.93 |
| Plant relocation | 167,498.60 | Other income | 167,498.60 |
| Plant relocation | 100,000.00 | Other income | 100,000.00 |
| Small-to-regular | 1,118,390.00 | Other income | 1,118,390.00 |
| Patent award | 2,400.00 | Other income | 2,400.00 |
| Huzhou special award | 350,000.00 | Other income | 350,000.00 |
| Special fund for glass substrate production line transformation | 3,000,000.00 | Other income | 3,000,000.00 |
（2）Government subsidy return
□ Applicable √Not applicable
Other notes
85.Other
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
(1)Enterprise consolidation not under the same control in reporting period
(2)Consolidation Cost and Goodwill
(3) The identifiable assets and liabilities of acquiree at purchase date
(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 √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value ofliabilities of the acquiree at acquisition date or closing period of the merge
（6）Other notes
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
(2)Consolidation Cost
(3) The identifiable assets and liabilities of acquiree at purchase date
3. Counter purchase
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
| Name | Equity disposal price | Equity disposal ratio | Disposal of equity | Loss of control point | Determining the basis for the loss of | The difference between the | Proportion of remaining stocks at the | The Net carrying amount of the remainin | The fair value of the remaining equity | Regaining gains or losses arising from | Determination of the fair value of the | The amount of other comprehensive |
| control | 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 | date of loss of control | g equity at the date of loss of control | at the date of loss of control | re-measurement of the remaining equity at fair value | remaining equity at the date of loss of control rights and its main assumptions | income related to the atomic company's equity investment transferred to investment profit and loss | |||||
| Wuhan Tunghsu Optoelectronic | 3,247,200.00 | 100.00% | Sell | January 1, 2019 | Received consideration and lost control | 14,292,343.65 | 0.00% | 0.00 | 0.00 | 0.00 | 0 | 0.00 |
| Zhongcheng Guojian Co., Ltd. | 40,000,000.00 | 70.00% | Sell | June 28, 2019 | Received consideration and lost control | 46,123,113.92 | 0.00% | 0.00 | 0.00 | 0.00 | 0 | 0.00 |
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)and relevant information:
For details of newly established companies in the first half of 2019, see Section 10.9, Interests in Other Subjects 1.
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
| Subsidiary | Main operation | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shijiazhuang Colour Bulb Co., Ltd. | Shijiazhuang | 9 Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province | Photoelectric display material | 81.26% | Establish | |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | Wuhu | No.36, Daowei 2 Road, Wanchun Street , Wuhu Economy Technology Development Zone | Photoelectric display material | 100.00% | Establish | |
| Anhui Xuan Optoelectronic Technology Co., Ltd. | Chu Zhou | No.155, Quanjiao Road, Chuzhou City, Anhui | 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 | 93.40% | 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 Technology Co., Ltd. | Beijing | 206, 2/F, Building 2B,No.80, Xingshikou Road, Haidian District, Beijing | Industrial application of graphene | 70.00% | Establish | |
| Jiangsu Jixing New Material Co., Ltd. | Jiangsu | New Material Industry Zone, Youfang Town, | Photoelectric display material | 100.00% | Non control combination | |
| Yangzhong City | ||||||
| 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 | Holland | Strawinskylaan 909, 1077XX | Overseas investment | 100.00% | Establish |
| EU.C.V | Amsterdam, the Netherlands | management | |
| Liaoning Tunghsu Sanbao Intelligent Technology Co., Ltd. | Liaoning |
| R&D and manufacturing of robots and intelligent electronic devices | 100.00% | Establish | ||||
| Tunghsu (Jinzhou) Precision optoelectronic technology co., Ltd. | Liaoning |
| Photoelectric display material | 100.00% | Establish | ||||
| Tunghsu(Jinzhou)Intelligent Material Technology Co., Ltd. | Liaoning |
| Photoelectric display material | 100.00% | Establish | ||||
| Tunghsu(Jinzhou)Intelligent Optoelectronic Co., Ltd. | Liaoning |
| Photoelectric display material | 100.00% | Establish | ||||
| Tunghsu (Jinzhou) Precision optoelectronic technology co., Ltd. | Liaoning |
| Photoelectric display material | 100.00% | Establish | ||||
| Jiangsu Xuheng New Material Co., Ltd. | Jiangsu | 9/f, Main Buiding, Document & Sport Center, No.36, Hanjing Road, Yunlong District , Xuzhou | Research and development of new material technology | 100.00% | Establish |
Other notesNote：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% | 11,483,840.30 | 171,278,962.83 | |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 49.50% | -2,017,362.75 | 61,356,481.82 | |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 33.00% | -839,568.37 | 38,651,603.09 | |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 35.00% | 5,054,759.48 | 98,948,008.73 | |
| Mingshuo(Bingjing) Electric Technology Co., Ltd. | 49.00% | 1,089,016.63 | 44,648,671.14 |
(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.. | 718,665,733.80 | 558,110,514.19 | 1,276,776,247.99 | 768,576,322.32 | 165,642,000.00 | 934,218,322.32 | 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 |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 40,480,483.42 | 89,434,282.66 | 129,914,766.08 | 7,919,288.39 | 0.00 | 7,919,288.39 | 54,919,712.81 | 89,462,417.94 | 144,382,130.75 | 15,988,124.61 | 366,037.32 | 16,354,161.93 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 247,394,096.21 | 73,000,304.55 | 320,394,400.76 | 205,831,517.94 | 0.00 | 205,831,517.94 | 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. | 354,672,768.37 | 1,111,321,730.39 | 1,465,994,498.76 | 605,288,687.74 | 577,997,214.64 | 1,183,285,902.38 | 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 |
| Mingshuo(Bingjing) Electric Technology Co., Ltd. | 128,041,529.66 | 20,123,273.35 | 148,164,803.01 | 37,598,624.26 | 19,446,441.73 | 57,045,065.99 | 101,793,806.44 | 17,369,725.88 | 119,163,532.32 | 28,619,836.48 | 1,646,441.73 | 30,266,278.21 |
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.. | 733,704,143.44 | 22,967,680.59 | 22,967,680.59 | -218,101,968.20 | 632,696,266.30 | 16,136,539.17 | 16,136,539.17 | -15,703,750.76 |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 515,312.82 | -4,012,863.37 | -4,012,863.37 | 6,280,920.96 | 488,093.83 | -6,566,421.86 | -6,566,421.86 | 12,587,728.47 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 9,455,781.22 | -2,483,775.04 | -2,483,775.04 | 188,723,924.64 | 736,964.91 | -1,101,997.15 | -1,101,997.15 | -730,374.74 |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 93,477,028.23 | 14,442,169.95 | 14,442,169.95 | 196,156,030.58 | 27,289,664.99 | -9,555,668.76 | -9,555,668.76 | -13,351,591.23 |
| Mingshuo(Bingjing) Electric Technology Co., Ltd. | 40,975,003.35 | 2,222,482.91 | 2,222,482.91 | -35,672,127.99 | 21,763,105.18 | 2,186,907.76 | 2,186,907.76 | -41,296,984.35 |
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity ofthe parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
| Name of Subsidiary | Main Places of Operation | Registration Place | Nature of Business | Shareholding Ratio (%) | Obtaining Method | |
| direct | indirect | |||||
| Yudean Finance | Guangzhou | Guangzhou | Finance | 40.00% | Equity method | |
（2）Main financial information of Significant joint venture
(3) Main financial information of significant associated enterprise
In RMB
| Closing balance/This period | Opening balance/Last period | |
| Current assets | 951,887,221.50 | 3,045,452,313.85 |
| Non-current assets | 27,694,836,725.65 | 28,093,049,900.77 |
| Total of assets | 28,646,723,947.15 | 31,138,502,214.62 |
| Current liabilities | 23,464,467,059.26 | 25,997,850,975.29 |
| Total liabilities | 23,464,467,059.26 | 25,997,850,975.29 |
| Attributable to shareholders of the parent company | 5,182,256,887.89 | 5,140,651,239.33 |
| Share of net assets calculated by stake | 2,072,902,755.16 | 2,056,260,495.73 |
| Net carrying amount of equity investment in associates | 2,072,902,755.16 | 2,056,260,495.73 |
| Business income | 155,760,250.37 | 105,115,733.62 |
| Net profit | 41,605,648.56 | 16,178,088.57 |
| Total comprehensive income | 41,605,648.56 | 16,178,088.57 |
(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 Net carrying amount | 118,883,109.84 | 118,087,473.48 |
| The total number of shares in each of the following shares | -- | -- |
| --Net profit | 795,636.36 | 5,365,389.05 |
| Total comprehensive income | 795,636.36 | 5,365,389.05 |
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer fundsto the Company
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statementsRelated notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instrumentsThe company's main financial instruments include loans, accounts receivable, accounts payable and othernon-current financial assets. For detailed descriptions of various financial instruments, please refer to the relevantitems in the notes to the consolidated statement items in Section 10.7 of this note. The Company adopts a series ofrisk management policies to reduce risks related to these financial assets, and manages and monitors the riskexposure of these financial assets to ensure that its risks are controlled within the set range.The risks faced by the company's financial instruments are mainly market risks, credit risks and liquidity risks.
1. Classification of financial assets and financial liabilities
| Financial assets Items | Amount | Financial Liabilities items | Amount |
| Cash and bank balancess | 19,608,160,332.91 | Short-term loans | 9,194,934,400.00 |
| Transactional financial assets | 3,000,000.00 | Notes payable | 1,545,392,945.94 |
| Notes receivable | 61,194,310.70 | Account payable | 6,458,794,541.00 |
| Account receivable | 11,948,970,007.58 | Other payable | 2,492,921,065.31 |
| Other receivable | 1,180,820,462.92 | Long-term loans | 3,200,691,400.00 |
| Other current assets | 792,954,051.81 | Bonds payble | 5,282,105,325.64 |
| Other non-current financial assets | 548,158,605.30 |
(II) Risks to financial assets and liabilities
1. Market risk
Interest rate risk-Cash flow change riskThe company's risk of cash flow changes in financial instruments due to interest rate changes is mainly related to
floating rate bank borrowings (see note 7 and related items in notes to consolidated statements). The Company'spolicy is to determine the long-term stable interest rate level as far as possible and reduce the impact of short-terminterest rate fluctuations. For the interest rate changes that must be borne, the Company adopts the floating interestrate for these loans. The policy cannot completely avoid the risk that the interest rate paid exceeds the currentmarket interest rate, nor can it completely eliminate the cash flow risks related to the fluctuation of interestpayment. However, the management believes that the policy has achieved a reasonable balance between theserisks.
2.Foreign exchange risk
refers to the risk that the fair value of financial instruments or future cash flows may fluctuate due to changes inforeign exchange rates. The main business of the company is in China, and there is a subsidiary company withsmall business volume overseas. Due to the small business volume, the overall foreign exchange risk is also small,but the company still tries its best to match the foreign currency income and foreign currency expenditure toreduce the exchange rate risk. The company has not signed any forward foreign exchange contracts or currencyswap contracts during the current period and the previous period.
2. Credit risk
On June 30, 2019, the company's credit risk may be mainly caused by customer default.In order to reduce credit risk, the Company only deals with approved and reputable customers. According to thecompany's policy, all customers who require credit transactions shall be subject to credit review. In addition, theCompany continuously monitors the balance of accounts receivable to ensure that the Company will not besubject to major bad debt risks. At the same time, it will determine the credit rating for different customers, grantdifferent credit lines, carry out credit approval, and implement other monitoring procedures to ensure necessarymeasures are taken. In addition, the Company will review the recovery of each single receivable on each balancesheet date to ensure that sufficient bad debt reserves are accrued for uncollectible funds. Therefore, the company'scredit risk has been greatly reduced.The company's working capital is deposited in banks with higher credit rating, so the credit risk of working capitalis lower.
3. Liquidity risk
When managing liquidity risks, the Company maintains sufficient cash and cash equivalents as deemed by themanagement and monitor them to meet the Company's operational needs and reduce the impact of cash flowfluctuations. The Company reasonably uses various financing methods such as bank loans and otherinterest-bearing loans to maintain the balance between sustainability and flexibility of financing. The Company'smanagement monitors the use of bank loans and ensures compliance with loan agreements.(II) Transfer of financial assetsThe Company did not have any matters related to the transfer of financial assets this year.(III) Offsetting of financial assets and financial liabilitiesThis year, the Company has not incurred any events related to the offset of financial assets and financial liabilities.XI. Disclosure of fair value
1. Ending fair value of the assets and liabiliies measured by fair value
In RMB
| Items | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| （1）Debt instrument investment | 3,000,000.00 | 3,000,000.00 | ||
| （2）Equity instrument investment | 548,158,605.30 | 548,158,605.30 | ||
| II. Non –persistent measure | -- | -- | -- | -- |
| Holding equity investments for sale | 119,355,435.58 | 119,355,435.58 | ||
2.Recognized basis for the market price sustaining and non-persistent measured by fair value oon first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measuresustaining and non-persistent on second-order
4. Valuation technique adopted and nature and amount determination of important parameters forconsistent and inconsistent fair value measurement items at level 3The investment cost of the invested unit is taken as an important reference basis for evaluating its fair value. Theinvestee is a non-listed company. It is difficult to obtain comparable market transaction prices for the same orsimilar assets, and the investee's business is relatively stable. The investment time of the company is not long.Therefore, the investment cost is taken as the base for evaluating the fair value.
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing Net carrying amount of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversionhappens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
| Parent company name | Registration place | Nature | Registered capital | Share ratio of parent company against the company(%) | Vote right ratio of parent company against the company(%) |
| Tunghsu Group | No.369, Zhujiang Road, High-tech 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：
Ultimate controller of the Company is Li Zhaoting
2.Subsidiary of the Enterprise
See details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.
3.Cooperative enterprise and joint venture
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 |
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. | Joint venture of the company |
| Tunghsu Group Finance Co., Ltd. | Joint venture of the company |
| Yinchuan Fengxiang Street Underground integrated Management Co., Ltd. | Joint venture of the company |
| 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 |
| 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 |
| Chongqing Tunghsu Qide Real Estate Co., Ltd. | A joint venture of the parent company |
| 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 |
| 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 |
| Hua rong jinshu biao mian chuli (anping) Technology Co., Ltd. | Controlled by the same actual controller |
| Ttai yuan Tunghsu rongtuo zhiye Co., Ltd. | Controlled by the same actual controller |
| Hebei xuzhen Supply chain management co. LTD | Controlled by the same actual controller |
| Hui zhoushi baoan Real estate development co. LTD | Controlled by the same actual controller |
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
| Related parties | Content of related transaction | Amount of current period | Amount of previous period | Over the trading limit or not? | Amount of last period |
| Anhui Tunghsu Dabieshan Agricultural Science & Technology Co., Ltd. | Camellia Oi | 25,296.00 | 28,800.00 | ||
| Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. | Material | 4,000,000.00 | |||
| Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | Electromechanical equipment | 980,000.00 | |||
| Chengdu China Optoelectronic | Glass substrate | 19,800,000.00 | 980,001.00 |
Related transactions on sale goods and receiving services
In RMB
Technology Co.,Ltd.Related parties
| Related parties | Content of related transaction | Amount of current period | Amount of previous period |
| Tunghsu North Real estate (Beijing) Co., Ltd. | Graphere | 77,011.75 | 48,801.64 |
| Fujian Hengda Investment Co., Ltd. | Graphere | 15,404.96 | |
| Shengzhou Zhexu Real Estate Co., Ltd. | Graphere | 15,474.14 | 13,641.03 |
| Huarong Metal Surface treatment (Anping) Technology Co., Ltd. | Graphere | 6,879.31 | |
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Graphere | 10,318.97 | |
| Taiyuan Tunghsu Rongtuo Real Estate Co., Ltd. | Graphere | 7,395.89 | |
| Tunghsu Chuangzhi(Beijing) Culture Media Co., Ltd. | Graphere | 896.55 | |
| Tibet Tunghsu Power Engineering Co., Ltd. | Graphere | 5,810.35 | |
| Chengdu China Optoelectronic Technology Co., Ltd. | Traction roll project | 188,275.86 | 611,459.82 |
| Hebei Xuzhen Suppy Chain Management Co., Ltd. | Robot | 5,862.07 | |
| Beijing Hexie Guanglu Technology Co., Ltd. | Efficient lightbulb | 287,179.49 | |
| Chengdu Taiyisi Technology Co., Ltd. | Efficient lightbulb | 23,131.62 | |
| Chengdu China Optoelectronic Technology Co., Ltd. | Efficient lightbulb | 14,068.83 | 13,203.41 |
| Tunghsu North Real estate (Beijing) Co., Ltd. | Efficient lightbulb | 40,528.38 | |
| Tunghsu Group Co., Ltd. | Efficient lightbulb | 1,589,885.32 | |
| Tunghsu Technology Group Co., Ltd. | Efficient lightbulb | 811.97 | |
| Hebei Baoshi Lighting Co., Ltd. | Efficient lightbulb | -37,264.96 | |
| Huiyin Jinkong Asset Management Co., Ltd. | Efficient lightbulb | 270,305.10 | |
| Shenzhen Hongji Property Management Co., Ltd. | Efficient lightbulb | 263,333.34 | |
| Zhangzhou Shenghuawu Real Estate Development Co., Ltd. | Efficient lightbulb | 6,974.36 | |
| Shenzhen Hongji Property Management Co., Ltd. | Charging pile | 539,806.13 | |
| Tunghsu Technology Group Co., Ltd. | Intelligent water cup | 62,546.48 | |
| Tunghsu Chuangzhi(Beijing) Culture Media Co., Ltd. | Intelligent water cup | 32,388.95 | |
| Dongguan Yijiu Real estate Development Co., Ltd. | Construction Engineering | 93,538,303.77 | 431,182.25 |
| Tunghsu Technology | Construction Engineering | 137,828.80 | 3,794,623.64 |
| Development Co., Ltd. | |||
| Tunghsu Lantian New Energy Co., Ltd. | Construction Engineering | 2,719,618.11 | |
| Fujian Hengda Investment Co., Ltd. | Construction Engineering | 2,745,454.55 | |
| Guangdong Huakai Real estate Development Co., Ltd. | Construction Engineering | 19,945,292.12 | |
| Hunan Baoan Hongji Real estate Development Co., Ltd. | Construction Engineering | 20,788,568.71 | 229,566.55 |
| Huidong Baoan Real estate Development Co., Ltd. | Construction Engineering | 78,787,578.76 | 46,614,031.74 |
| Huidong Baoan Jinan Real estate Development Co., Ltd. | Construction Engineering | 21,627,108.94 | 46,435,095.47 |
| Kunming Tunghsu Investment Development Co., Ltd. | Construction Engineering | 81,841,192.08 | 140,707,948.79 |
| Shengzhou Zhexu Real Estate Co., Ltd. | Construction Engineering | 33,702,095.67 | 35,168,074.85 |
| Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. | Construction Engineering | 594,000.00 | |
| Yixian Xuhua Park Construction Development Co., Ltd. | Construction Engineering | 16,916,569.73 | 39,616,134.40 |
| Yinchuan Fengxiang Street Underground integrated Management Co., Ltd. | Construction Engineering | 30,889,866.97 | 45,273,158.21 |
| Zhangzhou Shenghuawu Real Estate Development Co., Ltd. | Construction Engineering | 22,413,913.92 | |
| Chongqing Tunghsu Qide Real Estate Co., Ltd. | Construction Engineering | 72,738,733.59 | 18,348,758.40 |
| Beijing Zhonghuan Xinrong Technology Co., Ltd. | Construction Engineering | 13,487,314.83 | |
| Fujian Tunghsu Qiming Real Estate Co., Ltd. | Construction Engineering | 244,417.64 | |
| Huizhou Dexin Real Estate Co., Ltd. | Construction Engineering | 29,198,578.42 | |
| Zhongshan Shenzhong Real Estate Development Co., Ltd. | Construction Engineering | 229,712,398.39 | |
| Zhongshan Shenzhong Real Estate Investment Co., Ltd. | Construction Engineering | 51,747,572.82 |
（2）Related trusteeship or contracting
(3) Information of related lease
（4）Status of related party guarantee
As a guarantor for the company
In RMB
| Guarantor | Guarantee amount | Start date | End date | Execution accomplished or not |
| Tunghsu Group , Li Zhaoting, Li Qing | 115,000,000.00 | October 31,2017 | October 31,2019 | No |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | July 7,2017 | July 6,2019 | No |
| Tunghsu Group , Tunghsu Optoelectronic Investment Co., Ltd., Li Zhaoting | 400,000,000.00 | November 30,2016 | November 30,2019 | No |
| Li Zhaoting | 1,800,000,000.00 | October 16,2018 | October 15,2019 | 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 26,2019 | No |
| Tunghsu Group , Li Zhaoting,Shanghai Sunlong Bus Co., Ltd. | 200,000,000.00 | November 30,2018 | November 30,2019 | No |
| Tunghsu Group , Li Zhaoting,Shanghai Sunlong Bus Co., Ltd. | 100,000,000.00 | December 11,2018 | November 11,2019 | No |
| Tunghsu Group , Tunghsu Optoelectronic Investment Co., Ltd., Li Zhaoting | 1,000,000,000.00 | December 7,2018 | December 6,2019 | No |
| Li Zhaoting, Hangzhou Yuanbang Real Estate Development Co., Ltd. | 480,000,000.00 | December 21,2018 | December 22,2019 | No |
| Tunghsu Group Co., Ltd. holds 24%equity pledge of Baoshi Group, Asset Mortgage of Jiangsu Jixing New Materials Co., Ltd. | 450,000,000.00 | January 8,2019 | January 8,2020 | No |
| Li Zhaoting | 480,000,000.00 | January 25,2019 | January 25,2020 | No |
| Tunghsu Group, Li Zhaoting | 200,000,000.00 | March 18,2019 | March 18,2020 | No |
| Tunghsu Group , Li Zhaoting, Shanghai Sunlong Bus Co., Ltd., Tunghsu Optoelectronic Technology Co., Ltd. holds 58% of Shanghai Shenlong's shares. | 150,000,000.00 | April 30,2019 | April 29,2020 | No |
| Tunghsu Group, Li Zhaoting | 500,000,000.00 | May 13,2019 | April 19,2022 | No |
| Tunghsu Group | 100,000,000.00 | June 28,2019 | June 28,2020 | No |
| Tunghsu Group | 11,000,000.00 | June 28,2019 | June 28,2020 | No |
| Tunghsu Group | 300,000,000.00 | April 1,2014 | April 11,2022 | No |
| Tunghsu Group | 150,000,000.00 | April 22,2015 | April 11,2022 | No |
| Tunghsu Group | 500,000,000.00 | November 7,2016 | June 20,2024 | No |
| Tunghsu Group, Li Zhaoting | 450,000,000.00 | September 30,2016 | September 29,2021 | No |
| Tunghsu Group | 100,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 200,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 200,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 100,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 200,000,000.00 | October 31,2017 | September 15,2022 | No |
| Tunghsu Group | 200,000,000.00 | October 31,2017 | September 15,2022 | No |
| Tunghsu Group, Li Zhaoting | 300,000,000.00 | November 6,2017 | November 6,2020 | No |
| Tunghsu Group, Li Zhaoting | 199,000,000.00 | November 7,2017 | November 7,2020 | No |
| Tunghsu Group | 250,000,000.00 | May 31,2016 | May 30,2021 | No |
| Tunghsu Group | 50,000,000.00 | July 26,2018 | July 26,2019 | No |
| Tunghsu Group, Li Zhaoting | 150,000,000.00 | March 19,2019 | March 19,2020 | No |
| Tunghsu Group | 1,285,000,000.00 | January 28,2013 | January 27,2021 | No |
| Tunghsu Group | 100,929,000.00 | January 28,2013 | January 27,2021 | No |
| Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 80,000,000.00 | September 18,2018 | September 18,2019 | No |
| Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 40,000,000.00 | September 28,2018 | September 27,2019 | No |
| Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 80,000,000.00 | September 30,2018 | September 29,2019 | No |
| Tunghsu Group, Li Zhaoting | 90,000,000.00 | April 30,2019 | April 9,2020 | No |
| Tunghsu Group, Li Zhaoting | 50,000,000.00 | April 30,2019 | April 30,2020 | No |
| Tunghsu Group, Li Zhaoting | 50,000,000.00 | May 8,2019 | April 30,2020 | No |
| Tunghsu Group, Li Zhaoting | 90,000,000.00 | June 17,2019 | June 4, 2020 | No |
| Tunghsu Group | 450,000,000.00 | June 13,2018 | June 13,2019 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 20,000,000.00 | September 26,2018 | September 25,2019 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 25,000,000.00 | February 3,2018 | December 2,2019 | No |
| Tunghsu Group | 50,000,000.00 | December 6,2018 | December 6,2019 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd., Mortgage of assets of Shanghai Sunlong Bus Co., Ltd. | 110,000,000.00 | December 28, 2018 | December 28,2019 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd., Pledge of deposit certificate of Shanghai Shenlong bus Co., Ltd. | 90,000,000.00 | Januarpy 3,2019 | January 3,2020 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd., Shanghai Shenlong bus Co., Ltd. | 100,000,000.00 | March 6,2019 | March 6, 2020 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd., Shanghai Shenlong bus Co., Ltd. | 600,000,000.00 | May 21,2019 | May 21, 2022 | No |
| Tunghsu Group | 100,000,000.00 | July 11, 2018 | July 10,2019 | No |
| Tunghsu Group | 200,000,000.00 | September 27,2018 | Septembert 26,2019 | No |
| Tunghsu Group | 100,000,000.00 | December 11,2018 | December 10,2019 | No |
| Tunghsu Group, Li Zhaoting | 100,000,000.00 | January 25,2019 | January 23,2020 | No |
| Tunghsu Group | 50,000,000.00 | March 22,2019 | March 20,2020 | No |
| Tunghsu Group | 30,000,000.00 | April 22,2019 | April 22,2020 | No |
| Tunghsu Group | 280,000,000.00 | June 27,2019 | June 26,2021 | No |
| Tunghsu Group | 250,000,000.00 | July 31,2018 | July 28,2019 | No |
| Tunghsu Group, Yang Jianzhong, Hong Shuping and Project Department Asset Mortgage of Daosui Group | 50,000,000.00 | October 12,2018 | October 12,2021 | No |
| Tunghsu Group | 30,000,000.00 | July 26,2018 | March 20,2021 | No |
| Tunghsu Group | 50,000,000.00 | Novemer 1,2018 | March 20,2021 | No |
| Tunghsu Group | 50,000,000.00 | January 30,2019 | March 20,2021 | No |
| Tunghsu Group | 30,000,000.00 | April 11,2019 | March 20,2021 | No |
| Tunghsu Group | 40,000,000.00 | May 20,2019 | March 20,2021 | No |
| Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 100,000,000.00 | Septemer 30,2018 | September 30,2021 | No |
| Pledge of account receivable of Tunghsu Group and its subsidiaries | 1,900,000.00 | January 25,2019 | December 20,2023 | No |
| Pledge of account receivable of Tunghsu Group and its subsidiaries | 18,000,000.00 | May 7,2019 | December 20,2023 | No |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 100,000,000.00 | March 27,2018 | March 27,2019 | Yes |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 100,000,000.00 | March 28,2018 | March 28,2019 | Yes |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 70,000,000.00 | March 27,2018 | March 15,2019 | Yes |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 30,000,000.00 | April 2,2018 | March 15,2019 | Yes |
| Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 60,000,000.00 | March 1,2018 | March 1,2019 | Yes |
| Tunghsu Group, Tunghsu Optoelectronic Technology Co., Ltd. | 50,000,000.00 | March 30,2018 | March 29,2019 | Yes |
| Tunghsu Group | 100,000,000.00 | September 26,2013 | April 11,2022 | 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 | 90,000,000.00 | April 12,2018 | April 2,2019 | Yes |
| Tunghsu Group | 15,000,000.00 | June 12,2018 | May 7,2019 | Yes |
| Tunghsu Group | 300,000,000.00 | May 25,2016 | May 20,2019 | Yes |
| Tunghsu Group , Li Qing, Li Zhaoting | 200,000,000.00 | May 27,2016 | May 26,2019 | Yes |
| Tunghsu Group , Li Qing, Li Zhaoting | 600,000,000.00 | June 7,2016 | June 7,2019 | Yes |
| Tunghsu Group , Li Zhaoting | 166,666,666.66 | Januarpy 6,2017 | January 6,2019 | Yes |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | March 3,2017 | March 2,2019 | Yes |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | November 10,2017 | November 15,2022 | Yes |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | June 16,2016 | June 16,2019 | Yes |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | June 26,2018 | June 24,2019 | Yes |
| Tunghsu Group , Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 40,000,000.00 | February 9,2018 | February 8,2019 | Yes |
| Tunghsu Group , Li Zhaoting, Tunghsu Optoelectronic Technology Co., Ltd. | 40,000,000.00 | February 12,2018 | February 11,2019 | Yes |
| Tunghsu Group, Shanghai Qianhe Industry Co., Ltd. | 200,000,000.00 | June 8,2018 | June 8,2019 | Yes |
| Tunghsu Group | 50,000,000.00 | February 7,2018 | February 6,2019 | Yes |
| Tunghsu Group | 200,000,000.00 | March 15,2018 | March 15,2019 | Yes |
| Tunghsu Group | 95,000,000.00 | March 19,2018 | March 12,2019 | Yes |
| Tunghsu Group , Li Qing, Li Zhaoting | 200,000,000.00 | May 15,2017 | May 15,2019 | Yes |
| Tunghsu Group , Li Qing, Li Zhaoting | 300,000,000.00 | June 2,2017 | June 2,2019 | Yes |
| Pledge of periodic deposit certificate of Tunghsu Group , Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and its subsidiaries | 45,000,000.00 | May 28,2018 | May 28,2019 | Yes |
| Pledge of periodic deposit certificate of Tunghsu Group , Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and its subsidiaries | 135,000,000.00 | June 27,2018 | June 27,2019 | Yes |
| Tunghsu Group, Li Zhaoting | 50,000,000.00 | March 13,2018 | March 13,2019 | Yes |
| Tunghsu Group, Li Zhaoting | 30,000,000.00 | May 22,2018 | May 22,2019 | Yes |
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
（8）Other related transactions
6. Payables and receivables of the related party
（1）Receivables
In RMB
| Name | Related party | Amount at year end | Amount at year begiing | ||
| Balance of Book | Bad debt provision | Balance of Book | Bad debt provision | ||
| Account receivable | Chengdu China Optoelectronic Technology Co., Ltd | 787,800.00 | 874,842.20 | ||
| Account receivable | Guangdong Huakai Real Estate Development Co., Ltd. | 23,755,684.99 | 30,096,793.88 | ||
| 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. | 221,018,737.46 | 247,253,556.82 | ||
| Account receivable | Yinchuan Fengxiang Street Comprehensive Construction Management Co., Ltd. | 105,272,505.45 | 107,844,476.63 | ||
| Account receivable | Anhui Tunghsu Kangtu Solar Energy Technology Co., Ltd. | 222,740.00 | 222,740.00 | ||
| Account receivable | Tunghsu Lantian New Energy Co., Ltd. | 29,158,965.85 | 35,392,973.72 | ||
| Account receivable | Beijing Hexie Guanglu Technology Co., Ltd. | 138,000.00 | 138,000.00 | ||
| Account receivable | Beijing Zhonghuan Xinrong Trade Co., Ltd. | 215,747,350.00 | 215,747,350.00 | ||
| Account receivable | Dongguan Yijiu Real Estate Development Co., Ltd. | 6,028,046.96 | 996,344.71 | ||
| Account receivable | Tunghsu Chuangzhi（Beijing）Cultural Media Co., Ltd. | 1,250.00 | 204,000.00 | ||
| Account receivable | Tunghsu Technology Development Co., Ltd. | 3,633,892.00 | 4,133,892.00 | ||
| Account receivable | Fujian Tunghsu Qiming Real Estate Co., Ltd. | 1,133,161.10 | 3,389,184.77 | ||
| Account receivable | Hunan Baoan Hongji Real Estate | 12,626.16 | 19,459,762.15 | ||
| Development Co., Ltd. | |||||
| Account receivable | Huidong Baoan Hongji Real Estate Development Co., Ltd. | 32,098,949.22 | 32,810,756.93 | ||
| Account receivable | Huidong Ban Jinan Real Estate Development Co., Ltd. | 176,388,422.73 | 256,023,829.26 | ||
| Account receivable | Huizhou Dexin Real Estate Co., Ltd. | 60,404,758.73 | 67,266,007.88 | ||
| Account receivable | Shanghai Anxuan Automation Technology Co., Ltd. | 109,032.00 | 109,032.00 | ||
| Account receivable | Shenzhen Hongji Property Management Co., Ltd. | 259,397.37 | 15,405.00 | ||
| Account receivable | Shengzhou Zhexu Real Estate Co., Ltd. | 46,364,725.69 | 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. | 228,504,453.73 | 193,677,332.40 | ||
| Account receivable | Zhongshan Shenzhong Real Estate Development Co., Ltd. | 32,244,511.45 | 42,197,817.95 | ||
| Account receivable | Huizhou Baoan Real Estate Development Co., Ltd. | 2,000,000.00 | |||
| Account receivable | Chongqing Tunghsu Qide Real Estate Co., Ltd. | 87,298,400.10 | 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 | |||
| 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., Ltd. | 4,020,000.00 | |||
| Other receivable | Huizhou Dexin Real | 50,000.00 | 500,000.00 |
| Estate Co., Ltd. | |||||
| Other receivable | Chongqing Tunghsu Qide Real Estate Co., Ltd. | 1,050,000.00 | |||
| Other receivable | Tunghsu Group Finance Company Co., Ltd. | 17,112,926.77 | |||
| Other receivable | Kunming Tunghsu Qiming Investment Development Co., Ltd. | 30,000.00 | |||
| Other receivable | Tunghsuf North Real Estate (Beijing) Co., Ltd. | 116,342.89 | |||
| Other non-current assets | Tunghsu Group | 35,640,118.34 | 73,876,642.13 |
（2）Payables
In RMB
| Name | Related party | Book balance at year end | Book balance at year beginning |
| 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. | 30,296.40 | 3,483,519.11 |
| 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. | 39,500.00 | 276,500.00 |
| Account payable | Chengdu China Optoelectronic Technology Co., Ltd. | 13,424,400.00 | |
| Advance revenue | Chengdu China Optoelectronic Technology Co., Ltd. | 160,273.75 | |
| Advance revenue | Hunan Baoan Hongji Real Estate Development Co., Ltd. | 7,449,795.64 | |
| Advance revenue | Tunghsu Group | 47,075,980.50 | 47,075,980.50 |
| Advance revenue | Yixian Xuhua Garden Construction Development Co., Ltd. | 98,974,098.18 | 110,259,360.60 |
| Advance revenue | Hangzhou Yuanbang Real Estate Development Co., Ltd. | 100,000,000.00 | 100,000,000.00 |
| Advance revenue | Zhongshan Donghong Real Estate Development Co., Ltd. | 3,318,850.80 | 3,318,850.80 |
| Other payable | Baoshi Group | 28,967,925.86 | 722,000.00 |
| Other payable | Tunghsu Group | 201,704,321.57 | 275,490,964.33 |
| Other payable | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 4,792,523.07 | 4,768,691.30 |
| Other payable | Shijiazhuang Baoshi Xuming Pipe Co., Ltd. | 97,031.00 | 97,031.00 |
| Other payable | Chengdu China Optoeelctronic Technology Co., Ltd. | 6,850.92 | 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 | 8,000,000.00 |
| Other payable | Tunghsu Technology Group Co., Ltd. | 165,242.00 | |
| Other payable | Huizhou Dexin Real Estate Co., Ltd. | 8,117,975.82 | |
| Other payable | Chongqing Tunghsu Real Estate Co., Ltd. | 500,000.00 | |
| 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
8.Other
NilXIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet dateImportant commitments not required to be disclosed by the company as of December 30, 2019.
2. Contingency
(1) Significant contingency at balance sheet date
1. Construction project contract disputes. The plaintiff Chongqing Mingyi Labor Service Co., Ltd. requested theamount of 5 million yuan in project compensation and the interest from August 1, 2011. The No. 2370 Case of(2017) CHUAN 1130 MINCHU of the People's Court of Shunqing District of Nanchong City was held at 15:30on July 26th, 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 1.5 million and bore theacceptance fee of RMB 14,040. The Daosui company appealed, judgment of second instance on April 15, 2015: 1.Revoke the judgment of first instance. 2. Daosui will pay 5 million yuan. The toll for Daosui is 46,800 yuan andthe toll for the second instance is 53,100 yuan. On May 16, 2019, Daosui applied for a retrial, and the ProvincialHigh Court accepted the notice of retrial, (2019) CMS No. 2455, waiting for the retrial notice.
2. Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co., Ltd., Defendant: DaosuiGroup Engineering Co., Ltd., Road&bridge International Co., Ltd., Third Party: Earth and Rock EngineeringBranch of Sichuan Nanchong Hongcheng Construction Engineering Co., Ltd., Litigation Request: Litigationrequest: Daosui Group Engineering Co., Ltd. pays 4,260,061 yuan for on-site material equipment and interest onJanuary 23, 2011; Road&bridge International Co., Ltd. and the third party bear joint responsibility for paymentwithin 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 on July 27th,2017, and the case was transferred to the Intermediate People’s Court of Chengdu for railway transportation. Thecase was handed over to the Chengdu Intermediate People’s Court for Railway Transportation. On December 18,2017, the court accepted the case for the first instance and informed the Plaintiff and the Defendant to supplementdata, First instance judgment result: Daosui paid RMB 2,300,720.63 and interest and bore the acceptance fee ofRMB 21,591.00.The Daosui company appealed, judgment of second instance on April 26, 2019: 1. Revoke thejudgment of first instance. 2. Daosui paid 1800720.63 yuan and interest. The toll for Daosui is 19,302 yuan for thefirst instance and 25,205.77 yuan for the second instance. On May 22, 2019, Beibei District Court of ChongqingCity: Notice of Fulfillment of Due Debts, Execution Ruling: Freezing Mingyi Company's Creditor's Rights atDaosui of 1800720 Yuan. Application for objection to enforcement of Daosui appeal.
3. Private lending disputes. Plaintiff: Ye Pingyuan, defendant: He Yuanyuan, Daosui Group, plaintiff's request:
immediate repayment of the loan principal amount of 3.3 million yuan and interests of 726,000 yuan during theperiod, overdue interests and penalty interests, etc.; a total of 80,000 yuan for lawyers’ fees, travel expenses,property preservation guarantees, etc. The plaintiff's request: immediate repayment of the loan principal of 2.7million yuan and interest of 972,000 yuan during the period, overdue interest and penalty interest, etc.; payment oflegal fees, travel expenses, property preservation guarantee fees, etc., totaling 50,000 yuan. The People’s Court ofNanan District, Chongqing City accepted and issued the No. 5009 and No.5010 notice of respondence to action of(2017)YU 0108 ZI to Daosui Group on February 5,2018. (2017) Yu 0108 Zi No. 5009 first instance judgmentresult: He Yuanyuan and Daosui Group repaid the principal amount of RMB 3.3 million and interest, DaosuiCompany appealed, second instance judgment result: abrogated the first instance judgment, remanded it to thecourt of first instance for retrial, and now it is in the remanding and retrial stage. (2017) Yu 0108 Zi No. 5010 firstinstance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 2.7 million andinterest, 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. Construction project contract disputes，Plaintiff: Nanchong Jian'an Labor Service Co., Ltd., Defendant: Roadand Bridge International Co., Ltd., Third party: Daosui Group. Plaintiff's request: Payment of RMB 3,850,838.84.Pleadings, summons, notice of respondence to action, notice of evidence sent by Shunqing District Court inNanchong City were received on July 30, 2018. The Company filed application for jurisdiction objection on July31, 2018. and The written verdict sent by Shunqing District Court in Nanchong City was received on September26, 2018: The case was transferred to Chengdu Railway Transportation Court for trial. Pleadings, summons,notice of respondence to action, notice of evidence and notice of members of the collegiate bench sent byChengdu 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. On May 8, 2019, the attorney receivedthe legal information, and the case shall be handled according to the withdrawal of the other party.
5. In March 2016, Daosui Group Engineering Co., Ltd. filed a lawsuit to the owner of Inner Mongolia Zhunxing
Heavy-duty Highway Co., Ltd. for payable quality guarantee deposit, totaling amount of RMB 103,000,000 Yuan,
and the owners raised objections to jurisdiction. The first instance ruling was arbitrated by Beijing ArbitrationCommission, and Daosui Group Engineering Co., Ltd. appealed. Through judgment of the Supreme Court, itdecided to be arbitrated by Beijing Arbitration Commission on September 27, 2016. The case is in a state ofsuspension, waiting for the Company to apply for arbitration from Beijing Arbitration Commission. In the sameyear, Daosui Group Engineering Co., Ltd. counterclaimed AZ-1 and AZ-2 parts except for the quality guaranteedeposit. After the counterclaim, the owner filed an objection to jurisdiction and the first instance judged to bearbitrated by Beijing Arbitration Commission. The Company appealed, and the second instance of the SupremeCourt 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 thereporting date.In May 2019, the court held a hearing in Inner Mongolia High Court. The original defendants in the
court all applied for engineering appraisal and are now waiting for the court to select an appraisal institution.
（2）The Company have no significant contingency to disclose, also should be statedThe was no significant contingency in the Company.
3.Other
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4.Notes of ohter significant events
XVI. Other signifiant enents
1.The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4.Pension plan
5.Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
（2）Reporting Segment Financial Information
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportablesegment, shall disclose the reason.
（4）Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8.Other
XVII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
| Category | Year-end balance | Year-beginning balance | ||||||||
| Book balance | Bad debt provision | Net carrying amount | Book balance | Bad debt provision | Net carrying amount | |||||
| Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | |||
| Of which ： | ||||||||||
| Accrual of bad debt provision by portfolio: | 159,365,761.71 | 100.00% | 285,283.36 | 0.18% | 159,080,478.35 | 176,852,788.81 | 100.00% | 288,862.58 | 0.16% | 176,563,926.23 |
| Of which ： | ||||||||||
| Aging portfolio | 295,683.88 | 0.19% | 285,283.36 | 96.48% | 10,400.52 | 82,795,683.88 | 46.82% | 285,283.36 | 0.34% | 82,510,400.52 |
| Other portfolio | 159,070,077.83 | 99.81% | 0.00% | 159,070,077.83 | 94,057,104.93 | 53.18% | 3,579.22 | 0.00% | 94,053,525.71 | |
| Total | 159,365,761.71 | 100.00% | 285,283.36 | 0.18% | 159,080,478.35 | 176,852,788.81 | 100.00% | 288,862.58 | 0.16% | 176,563,926.23 |
Accrual of bad debt provision by single item:
Accrual of bad debt provision by portfolio item: Aging portfolio
In RMB
| Name | Year-end balance | ||
| Account receivable | Provision for bad debts | Proportion% | |
| Within 1 year | 10,400.52 | ||
| Within credit period | 10,400.52 | ||
| Within 1 year after credit period | 5.00% | ||
| 1-2 years | 10.00% | ||
| 2-3 years | 30.00% | ||
| Over 3 years | 50.00% | ||
| 3-4 years | 70.00% | ||
| 4-5 years | 285,283.36 | 285,283.36 | 100.00% |
| Over 5years | 295,683.88 | 285,283.36 | -- |
| Total | |||
Accrual of bad debt provision by portfolio:Other portfolio
| Name | Year-end balance | ||
| Account receivable | Provision for bad debts | Proportion% | |
| Other portfolio | 159,070,077.83 | 0.00% | |
| Total | 159,070,077.83 | -- |
Notes:
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method ofother receivables if the provision for bad debts of bills receivable is accrued according to the general model of
□Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Amount in year-end |
| Within 1 year（Including 1 year） | 10,400.52 |
| Within credit period | 10,400.52 |
| Over 3 years | 285,283.36 |
| Over 5 years | 285,283.36 |
| Total | 295,683.88 |
(2) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | ||
| Accrual | Reversed or collected amount | Write-off | |||
| Accounts receivable | 288,862.58 | 3,579.22 | 285,283.36 | ||
| Total | 288,862.58 | 3,579.22 | 285,283.36 | ||
（3）The current accounts receivable written-offs situation
（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 isRMB157,559,672.99, which accounts for98.87% of the total receivables. The total amount of closing balance forcorresponding accrued bad-debt provision is RMB0.00.
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accountsreceivable
2. Other accounts receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Interest receivable | 27,122,805.61 | 7,521,489.86 |
| Dividend receivable | 500,000,000.00 | 500,000,000.00 |
| Other receivable | 8,453,090,240.90 | 5,774,153,829.41 |
| Total | 8,980,213,046.51 | 6,281,675,319.27 |
（1）Interest receivable
（1）Classification Interest receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Fixed deposit | 27,122,805.61 | 7,521,489.86 |
| Total | 27,122,805.61 | 7,521,489.86 |
（2）Important overdue interest
（3）Bad-debt provision
□ Applicable √ Not applicable
(2).Dividend receivable
1）Classification Dividend receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Wuhu Tunghsu Equipment Technology Co., Ltd. | 500,000,000.00 | 500,000,000.00 |
| Total | 500,000,000.00 | 500,000,000.00 |
2）Significant Dividend receivable aged over 1 year3）Bad-debt provision
□ Applicable √ Not applicable
（3）Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
| Nature | Closing book balance | Opening book balance |
| Deposit | 11,155,341.10 | 29,065,478.16 |
| Personal official borrowing | 336,146.86 | 163,295.56 |
| Current account | 8,441,976,283.64 | 5,743,653,445.32 |
| Persona Returnable Insurance | 655,870.15 | 603,814.14 |
| Other | 601,747.71 | 2,302,944.80 |
| Total | 8,454,725,389.46 | 5,775,788,977.98 |
2）Bad-debt provision
In RMB
| Bad Debt Reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses over the next 12 months | Expected credit loss over life (no credit impairment) | Expected credit losses for the entire duration (credit impairment occurred) | ||
| Balance as at January 1, 2019 | 1,635,148.56 | 1,635,148.56 | ||
| Balance as at January 1, | —— | —— | —— | —— |
| 2019 in current | ||||
| Balance as at June 30,2019 | 1,635,148.56 | 1,635,148.56 |
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
| Aging | Closing balance |
| Within 1 year(Including 1 year） | 2,462,545.16 |
| Within credit period | 2,462,545.16 |
| Within 1 year after credit period | |
| Over 3 years | 1,699,532.09 |
| 3-4 years | 45,661.16 |
| 4-5 years | 208,497.63 |
| Over 5 years | 1,445,373.30 |
| Total | 4,162,077.25 |
3) Accounts receivable withdraw, reversed or collected during the reporting periodThe withdrawal amount of the bad debt provision：
In RMB
| Category | Opening balance | Amount of change in the current period | Closing balance | |
| Accrual | Reversed or collected amount | |||
| Other account receivable | 1,635,148.57 | 1,635,148.57 | ||
| Total | 1,635,148.57 | 1,635,148.57 | ||
4) Other Receivables with Actual Verification in the Reporting Period
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 Optoelectronic Technology Co., Ltd. | Current account | 3,389,564,171.94 | Within credit period | 39.62% | |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | Current account | 1,989,513,586.99 | Within credit period | 23.26% | |
| Tunghsu(Kunshan)Display Material Co., Ltd. | Current account | 1,341,936,710.56 | Within credit period | 15.69% | |
| Liaoning Tunghsu Sanbao Intelligence Technology Co., Ltd. | Current account | 565,140,000.00 | Within credit period | 6.61% | |
| Guangxi Sunlong | Current account | 425,980,000.00 | Within credit period | 4.98% | |
| Total | -- | 7,712,134,469.49 | -- | 90.15% |
6) Accounts receivable involved with government subsidies
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 accountsreceivable
3. Long-term equity investment
In RMB
| Items | End of term | Beginning of term | ||||
| Book Balance | Impairment provision | Net carrying amount | Book Balance | Impairment provision | Net carrying amount | |
| Investment in subsidiaries | 26,853,312,681.51 | 378,172,649.84 | 26,475,140,031.67 | 24,708,559,881.51 | 378,172,649.84 | 24,330,387,231.67 |
| Investment in joint ventures and associates | 2,191,785,865.01 | 2,191,785,865.01 | 2,174,347,969.22 | 2,174,347,969.22 | ||
| Total | 29,045,098,546.52 | 378,172,649.84 | 28,666,925,896.68 | 26,882,907,850.73 | 378,172,649.84 | 26,504,735,200.89 |
（1）Investment to the subsidiary
In RMB
| Name of investee | Opening balance | Increase /decrease | Closing balance | Closing balance of impairment provision | |||
| Increase | Other | ||||||
| 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. | 2,021,178,272.58 | 48,000,000.00 | 2,069,178,272.58 | ||||
| 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 | 3,247,200.00 | 3,247,200.00 | |||||
| Technology Co., Ltd. | |||||||
| Fuzhou Xufu Optoelectronic Technology Co., Ltd. | 24,000,000.00 | 24,000,000.00 | |||||
| Shenzhen Xuhui Investment Co., Ltd. | 100,000,000.00 | 100,000,000.00 | |||||
| Tunghsu（Yingkou）Optoelectroinc Display Co., Ltd. | 166,771,734.60 | 166,771,734.60 | |||||
| Shijiazhuang Colour Bulb Co., Ltd | 61,169,306.96 | 61,169,306.96 | 378,172,649.84 | ||||
| Jiangsu Jixing New Material Co., Ltd. | 297,345,300.00 | 297,345,300.00 | |||||
| Tunghsu（Kunshan）Display Material Co., Ltd. | 1,000,000,000.00 | 400,000,000.00 | 1,400,000,000.00 | ||||
| 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. | 5,900,000,000.00 | 5,900,000,000.00 | |||||
| Shenzhen Sanbao Chuangxin Inteligent Co., Ltd. | 157,598,587.50 | 157,598,587.50 | |||||
| Beijing Tunghsu Huaqing Investment Co., Ltd. | 3,500,000.00 | 3,500,000.00 | |||||
| Sanghai Tanyuan Huigu New Material Technology Co., Ltd. | 73,454,500.00 | 73,454,500.00 | |||||
| Taizhou Tunghsu graphene Industry Investment Fund Management Cente | 25,000,000.00 | 25,000,000.00 |
| Fuzhou Tunghsu Investment Development Co., Ltd. | 500,000,000.00 | 500,000,000.00 | |||||
| Anhui Xuan Optoelectronic Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
| Tunghsu Optoelectronic EU B.V.B20 | 782,250.00 | 782,250.00 | |||||
| Liaoning Tunghsu Sanbao Intellitence Technology Co., Ltd. | 100,000,000.00 | 100,000,000.00 | |||||
| Tunghsu (Jinzhou) Precision Optoelectronic Technology Co. Ltd. | 500,000,000.00 | 500,000,000.00 | |||||
| Tunghsu (Jinzhou) Precision Optoelectronic Technology Co. Ltd. | 500,000,000.00 | 500,000,000.00 | |||||
| Tunghsu (Jinzhou) Intellitence Optoelectronic Co., Ltd. | 300,000,000.00 | 300,000,000.00 | |||||
| Tunghsu (Jinzhou) Intellitence Material Technology Co., ltd. | 300,000,000.00 | 300,000,000.00 | |||||
| Total | 24,330,387,231.67 | 2,148,000,000.00 | 3,247,200.00 | 0.00 | 26,475,140,031.67 | 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 | |||||||||||
| CUHK international business factoring | 76,270,934.28 | -1,211,117.11 | 75,059,817.17 | ||||||||
| co., Ltd. | |||||||||||
| Tunghsu Group Finance Co., Ltd. | 2,056,260,495.74 | 16,642,259.43 | 2,072,902,755.17 | ||||||||
| Zibo Bus Co., Ltd. | 41,816,539.20 | 2,006,753.47 | 43,823,292.67 | ||||||||
| Subtotal | 2,174,347,969.22 | 17,437,895.79 | 2,191,785,865.01 | ||||||||
| Total | 2,174,347,969.22 | 17,437,895.79 | 2,191,785,865.01 |
（3）Other
4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 51,609,257.90 | 46,674,867.31 | 54,602,917.98 | 38,492,540.23 |
| Other business | 66,719,371.43 | 57,593,898.73 | 713,064.42 | |
| Total | 118,328,629.33 | 104,268,766.04 | 55,315,982.40 | 38,492,540.23 |
Whether implemented new revenue guidelines
□ Yes √ No
5. Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Investment loss through disposal of long-term equity investment | 17,437,895.79 | 11,835,887.67 |
| Disposal of investment income from long-term equity investments | -20,628,050.30 | |
| Other Investment income | 13,923,452.07 | |
| Total | 17,437,895.79 | 5,131,289.44 |
6.Other
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/Losses on the disposal of non-current assets | 14,672,155.64 | |
| 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 | 68,408,139.17 | |
| Entrusted with the operating of the trust to obtain fee income | 246,200.42 | |
| Net amount of non-operating income and expense except the aforesaid items | 7,342,788.31 |
| Less: .Amount of influence of income tax | 12,093,227.86 | |
| Amount of influence of minority interests | 12,495,212.36 | |
| Total | 66,080,843.32 | -- |
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 applicable
2 Return on net assets and earnings per share
| Profit of the report period | Return on net assets . Weighted（%） | Earnings per share | |
| Basic earnings per share | Diluted gains per share | ||
| Net profit attributable to the Common stock shareholders of Company. | 2.57% | 0.15 | 0.15 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | 2.37% | 0.14 | 0.14 |
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
4.Other
XI. Documents available for inspection
1.The original semi-annual report bearing the signature of the Chairman of the Board of Directors of theCompany;
2.The text of the financial report bearing the seal and signature of the person in charge of the Company, financialcontroller and the person in charge of accounting organ
3. Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in thenewspapers as designated by China Securities Regulatory Commission.
4.【Notes】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chineseversion shall prevail.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman:Wang Lipeng
Issue day approved by the Board of Directors：August 30，2019