Tunghsu Optoelectronic Technology Co., Ltd.
The Frist Quarterly Report 2020
April 2020
I. Important Notice
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.All of the directors presented the board meeting at which this Quarterly Report was examined.Mr. Gu Xuan, Person in charge of the Company, Mr. Wang Qing, Person in charge of accounting works, Mr.WangQing, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness ofthe financial report enclosed in this report.
II. Basic information about the companyI.Main financial data and financial indexIndicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□Yes √No
| This period | Same period of last year | Changes of this period-end over same period-end of last year(%) | |
| Operating revenue（Yuan） | 1,030,628,692.95 | 3,816,412,812.51 | -72.99% |
| Net assets attributable to the shareholders of the listed company（Yuan） | -332,074,298.57 | 431,060,886.41 | -177.04% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | -354,123,553.35 | 396,063,134.95 | -189.41% |
| Net cash generated from /used in operating activities（Yuan） | 159,026,281.37 | 638,683,628.95 | -75.10% |
| Basic earning per share(Yuan/Share) | -0.06 | 0.08 | -175.00% |
| Diluted gains per share(Yuan/Share) | -0.06 | 0.08 | -175.00% |
| Weighted average return on equity（%） | -1.08% | 1.32% | -2.40% |
| End of this period | End of last period | Changes of this period-end over same period-end of last year(%) | |
| Gross assets（Yuan） | 70,212,669,842.89 | 69,628,320,928.19 | 0.84% |
| Net assets attributable to the shareholders of the listed company（Yuan） | 30,684,717,024.74 | 31,020,123,473.81 | -1.08% |
Items and amount of non-current gains and losses
√ Applicable □ Not applicable
In RMB
| Items | Amount (Year-beginning to the end of the report period.) | Notes |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 34,798,415.75 | |
| Other non-operating income and expenditure beside for the above | -3,134,773.94 |
| items | ||
| Less: Influenced amount of income tax | 5,998,980.39 | |
| Amount of influence of minority interests（After tax） | 3,615,406.64 | |
| Total | 22,049,254.78 | -- |
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 recognized as recurring gain /loss/items as defined by the informationdisclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period
1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recoveredand the Shares Held by Top Ten Common Shareholders
In shares
| Total number of common shareholders at the period-end | 406,749 (including 389,995 shareholders holding A shares and 16,754 shareholders holding B shares) | Total preference shareholders with the voting power recovered at the end of the reporting period(if any) | 0 | |||
| Shares held by the top 10 shareholders | ||||||
| Shareholder name | Properties of shareholder | Share proportion % | Quantity | Amount of tradable shares with Conditional held | Pledging or freezing | |
| Status of the shares | Quantity | |||||
| Tunghsu Group Co., Ltd. | Domestic Non -State-owned legal person | 15.97% | 915,064,091 | 352,006,791 | pledge | 799,643,042 |
| freeze | 915,064,091 | |||||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Domestic Non -State-owned legal person | 4.82% | 276,064,271 | pledge | 153,520,000 | |
| Shanghai Huimao | Domestic Non -State-owned | 4.58% | 262,626,262 | 262,626,262 | pledge | 80,000,000 |
| Enterprise Management Co., Ltd. | legal person | |||||
| Shenzhen Taianer Information Technology Co., Ltd. | Domestic Non -State-owned legal person | 1.07% | 61,165,682 | pledge | 61,165,682 | |
| Hong Kong central clearing company limited | Foreign legal person | 0.82% | 47,107,537 | |||
| Kunshan Development Zone State-Owned Investment Holding Co., Ltd. | State-owned legal person | 0.73% | 41,838,269 | |||
| China securities finance co., Ltd | Domestic Non -State-owned legal person | 0.54% | 30,906,112 | |||
| Lin Zhengnan | Domestic Natural person | 0.22% | 12,860,000 | |||
| Mianyang science and technology city development investment (group) co., Ltd | Domestic legal person | 0.20% | 11,380,165 | pledge | 11,380,000 | |
| Ye Yajun | Domestic Natural person | 0.17% | 10,000,000 | |||
| Shares held by the Top 10 Shareholders of Non-restricted shares | ||||||
| Shareholders’ Names | Number of the non-restricted shares held | Share type | ||||
| Share type | Quantity | |||||
| Tunghsu Group Co., Ltd. | 563,057,300 | RMB Common shares | 563,057,300 | |||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | 276,064,271 | RMB Common shares | 276,064,271 | |||
| Shenzhen Taianer Information Technology Co., Ltd. | 61,165,682 | RMB Common shares | 61,165,682 | |||
| Hong Kong Securities Clearing Co., Ltd. | 47,107,537 | RMB Common shares | 47,107,537 |
| Kunshan Development Zone State-Owned Investment Holding Co., Ltd. | 41,838,269 | RMB Common shares | 41,838,269 |
| China securities finance co., Ltd | 30,906,112 | RMB Common shares | 30,906,112 |
| Lin Zhengnan | 12,860,800 | RMB Common shares | 12,860,800 |
| Mianyang science and technology city development investment (group) co., Ltd | 11,380,165 | RMB Common shares | 11,380,165 |
| Ye Yajun | 10,000,000 | RMB Common shares | 10,000,000 |
| Industrial and Commercial Bank of China. - huataibairui Csi 300 etf investment fund | 9,562,353 | RMB Common shares | 9,562,353 |
| Explanation on shareholders participating in the margin trading business | Among the top 10 shareholders, Shijiazhuang Baoshi Electronics Group Co., Ltd. and Dongxu Group Co., Ltd. constitute a concerted relationship. The company does not know whether the other 8 shareholders are related to each other or whether they belong to the concerted action as stipulated in the Regulations Governing the Purchase of Public Companies. | ||
| Participation of top 10 unconditional common share shareholders in securities margin trading (if any) | Among the top 10 shareholders, Shijiazhuang Baoshi Electronic Group Co., Ltd. conducted margin financing and short selling business through the customer credit transaction guarantee securities account of Southwest Securities co., ltd, involving 122,538,600 shares. | ||
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.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end ofthe report period
□ Applicable √Not applicable
III Significant EventsI. Major changes of main accounting statement items and financial indicators in the reporting period, aswell as reasons for the changes
√ Applicable □ Not applicable
| No | Items | Ending balance | Opening balance | Changes | Remarks on the change |
| 1 | Operating revenue | 1,030,628,692.95 | 3,816,412,812.51 | -72.99% | COVID-19 epidemic effects |
| 2 | Operating costs | 869,978,952.06 | 2,866,380,893.72 | -69.65% | COVID-19 epidemic effects |
| 3 | Finance | 305,954,286.63 | 195,587,354.83 | 56.43% | The rising cost of financing leads to an increase in interest charges |
| 4 | Other income | 76,186,615.30 | 105,585,373.30 | -27.84% | Reduced government subsidies |
II. The progress of significant events and influence, as well as the analysis and explanation on resolvingproposal.
□ Applicable √ Not applicable
Progress in the implementation of share repurchase
□ Applicable √ Not applicable
Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding
□ Applicable √ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer,directors, supervisors, senior executives or other related parties in the reporting period and commitmentsunfinished in implementation at the end of the reporting period
□ Applicable √Not applicable
The company has no commitments completed in period and those without completed till lend of the period fromactual controller, shareholders, related parties, purchaser and companies.IV. Investment in securities
□ Applicable √Not applicable
There is no securities investment during the reporting period.V. Entrusted Financial Management
□ Applicable √Not applicable
There is no Entrusted Financial Management during the report period.VI. Investment in derivatives
□ Applicable √Not applicable
There is no derivative investment during the report period.
VII. The registration form of acceptance of investigation, communication and interview in the reportperiod for future reference
□ Applicable √Not applicable
The Period has no research, communication and written inquiry from the investors in the report period.VIII. External guarantee get out of line
□ Applicable √Not applicable
The Company has no external guarantee get out of the line in the PeriodIX. Controlling shareholder and its related parties occupying non-business capital of the listed company
□ Applicable √Not applicable
There are no controlling shareholder and its related parties occupying non-business capital of the listed companyin Period
IV. Financial StatementI. Financial statement
1. Consolidated balance sheet
Prepared by：Tunghsu Optoelectronic Technology Co., Ltd.
March 31,2020
In RMB
| Items | March 30,2020 | December 31,2019 |
| Current asset： | ||
| Cash and bank balances | 11,282,851,931.20 | 11,580,819,578.44 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 28,693,287.00 | 34,510,584.50 |
| Account receivable | 11,509,509,617.42 | 11,496,500,929.28 |
| Financing of receivables | 1,348,226,951.15 | 1,712,996,551.15 |
| Prepayments | 10,029,103,942.57 | 8,993,206,274.68 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other account receivable | 4,927,587,215.26 | 4,831,348,641.69 |
| Including：Interest receivable | 10,523,223.15 | 2,325,948.16 |
| Dividend receivable | 11,585,960.88 | 11,585,960.88 |
| Repurchasing of financial assets | ||
| Inventories | 4,407,335,022.93 | 4,326,590,183.49 |
| Contract assets | 515,175,866.68 | |
| Assets held for sales | 119,355,435.58 | 119,355,435.58 |
| Non-current asset due within 1 year | ||
| Other current asset | 846,365,626.31 | 837,951,546.82 |
| Total of current assets | 45,014,204,896.10 | 43,933,279,725.63 |
| Non-current assets： |
| Loans and payment on other’s behalf disbursed | ||
| Debt investment | ||
| Other investment on bonds | ||
| Long-term receivable | 298,196,207.56 | 306,158,872.38 |
| Long term share equity investment | 2,205,512,222.23 | 2,207,456,475.75 |
| Other equity instruments investment | ||
| Other non-current financial assets | 248,158,605.30 | 248,158,605.30 |
| Property investment | 687,245,205.96 | 695,653,870.87 |
| Fixed assets | 8,938,139,665.75 | 9,075,392,171.23 |
| Construction in progress | 4,906,903,605.17 | 4,856,161,438.68 |
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 1,049,189,188.74 | 1,061,801,667.12 |
| Development expenses | 48,064,594.16 | 44,748,355.95 |
| Goodwill | 1,995,588,453.44 | 1,995,588,453.44 |
| Long-germ expenses to be amortized | 20,758,975.64 | 21,707,770.53 |
| Deferred income tax asset | 426,475,548.87 | 430,229,031.02 |
| Other non-current asset | 4,374,232,673.97 | 4,751,984,490.29 |
| Total of non-current assets | 25,198,464,946.79 | 25,695,041,202.56 |
| Total of assets | 70,212,669,842.89 | 69,628,320,928.19 |
| Current liabilities | ||
| Short-term loans | 9,701,654,583.03 | 9,807,921,003.28 |
| Loan from Central Bank | ||
| Borrowing funds | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 357,023,425.42 | 850,447,788.10 |
| Account payable | 6,905,882,512.89 | 7,007,558,192.78 |
| Advance receipts | 1,229,191,453.92 | 1,652,587,387.44 |
| Contract Liabilities | 1,890,117,383.58 | |
| Selling of repurchased financial assets | ||
| Deposit taking and interbank deposit |
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 173,295,136.20 | 206,227,756.49 |
| Tax payable | 287,422,957.20 | 339,813,007.03 |
| Other account payable | 3,926,135,794.91 | 3,693,138,656.67 |
| Including：Interest payable | 672,290,687.17 | 452,834,591.96 |
| Dividend payable | 66,278,190.37 | 66,278,190.37 |
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 7,922,647,232.99 | 7,841,514,464.78 |
| Other current liability | 454,869,410.15 | 454,404,004.66 |
| Total of current liability | 32,848,239,890.29 | 31,853,612,261.23 |
| Non-current liabilities： | ||
| Reserve fund for insurance contracts | ||
| Long-term loan | 2,977,169,601.99 | 3,003,722,151.74 |
| Bond payable | 301,145,832.60 | 301,145,832.60 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | 1,038,281,614.65 | 1,077,918,138.44 |
| Long-term remuneration payable to staff | ||
| Expected liabilities | 124,239,165.21 | 124,239,165.21 |
| Deferred income | 702,922,558.06 | 713,023,519.35 |
| Deferred income tax liability | 52,912,208.69 | 54,472,480.31 |
| Other non-current liabilities | 508,000,000.00 | 508,000,000.00 |
| Total non-current liabilities | 5,704,670,981.20 | 5,782,521,287.65 |
| Total of liability | 38,552,910,871.49 | 37,636,133,548.88 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt |
| Capital reserves | 21,812,136,465.66 | 21,812,136,465.66 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | -29,175.80 | -29,175.80 |
| Special reserve | 25,167,575.12 | 28,499,725.62 |
| Surplus reserves | 245,507,019.95 | 245,507,019.95 |
| Common risk provision | ||
| Retained profit | 2,876,107,341.81 | 3,208,181,640.38 |
| Total of owner’s equity belong to the parent company | 30,684,717,024.74 | 31,020,123,473.81 |
| Minority shareholders’ equity | 975,041,946.66 | 972,063,905.50 |
| Total of owners’ equity | 31,659,758,971.40 | 31,992,187,379.31 |
| Total of liabilities and owners’ equity | 70,212,669,842.89 | 69,928,320,928.19 |
Legal representative ：Gu XuanPerson-in-charge of the accounting work：Wang QingPerson-in -charge of the accounting organ：Wang Qing
2. Balance sheet of Parent Company
In RMB
| Items | March 31,2020 | December 31,2019 |
| Current asset： | ||
| Cash and bank balances | 4,701,977,737.58 | 4,700,601,207.82 |
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Account receivable | 236,947,979.44 | 236,947,979.44 |
| Financing of receivables | ||
| Prepayments | 1,366,762.61 | 1,033,942.61 |
| Other account receivable | 11,598,999,959.64 | 11,551,051,968.51 |
| Including：Interest receivable | ||
| Dividend receivable | 500,000,000.00 | 500,000,000.00 |
| Inventories | 199,583,388.31 | 193,714,314.48 |
| 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 | 16,739,024,800.96 | 16,683,498,386.24 |
| Non-current assets： | ||
| Debt investment | ||
| Other investment on bonds | ||
| Long-term receivable | ||
| Long term share equity investment | 28,376,758,195.28 | 28,378,702,448.80 |
| Other equity instruments investment | ||
| Other non-current financial assets | 129,500,056.00 | 129,500,056.00 |
| Property investment | ||
| Fixed assets | 141,677,524.73 | 145,493,375.51 |
| Construction in progress | ||
| Production physical assets | ||
| Oil & gas assets | ||
| Use right assets | ||
| Intangible assets | 8,904,753.11 | 8,991,679.94 |
| Development expenses | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Deferred income tax asset | 0.00 | |
| Other non-current asset | 300,000,000.00 | 300,000,000.00 |
| Total of non-current assets | 28,956,840,529.12 | 28,962,687,560.25 |
| Total of assets | 45,695,865,330.08 | 45,646,185,946.49 |
| Current liabilities | ||
| Short-term loans | 6,507,370,461.11 | 6,507,370,461.11 |
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 8,518,058.47 | 8,663,754.33 |
| Advance receipts | 842,498.78 | 842,498.78 |
| Contract Liabilities | ||
| Employees’ wage payable | 7,056,903.62 | 5,226,344.53 |
| Tax payable | 16,738,341.28 | 16,766,064.54 |
| Other account payable | 5,100,019,042.78 | 4,861,267,706.46 |
| Including：Interest payable | 651,814,803.28 | 426,748,970.50 |
| Dividend payable | 66,278,190.37 | 66,278,190.37 |
| Liabilities held for sales | ||
| Non-current liability due within 1 year | 6,098,388,482.58 | 6,097,417,230.96 |
| Other current liability | ||
| Total of current liability | 17,738,933,788.62 | 17,497,554,060.71 |
| Non-current liabilities： | ||
| Long-term loan | 495,175,833.33 | 495,175,833.33 |
| Bond payable | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Lease liability | ||
| Long-term payable | ||
| Long-term remuneration payable to staff | ||
| Expected liabilities | 54,389,500.40 | 54,389,500.40 |
| Deferred income | ||
| Deferred income tax liability | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 549,565,333.73 | 549,565,333.73 |
| Total of liability | 18,288,499,122.35 | 18,047,119,394.44 |
| 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 | -377,433,293.39 | -185,732,949.07 |
| Total of owners’ equity | 27,407,366,207.73 | 27,599,066,552.05 |
| Total of liabilities and owners’ equity | 45,695,865,330.08 | 45,646,185,946.49 |
3.Consolidated Income statement of the Report period
In RMB
| Items | Amount in this period | Amount in last period |
| I. Turnover | 1,030,628,692.95 | 3,816,412,812.51 |
| Including ：Operating income | 1,030,628,692.95 | 3,816,412,812.51 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total operating costs | 1,419,363,468.14 | 3,378,198,668.06 |
| Including ：Operating costs | 869,978,952.06 | 2,866,380,893.72 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Appropriation of deposit for duty, net | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Business tax and surcharge | 6,931,232.92 | 15,926,112.39 |
| Sales expense | 58,517,929.55 | 61,858,043.90 |
| Administrative expense | 129,908,567.13 | 141,671,065.56 |
| R & D expense | 48,072,499.85 | 96,775,197.66 |
| Financial expenses | 305,954,286.63 | 195,587,354.83 |
| Including：Interest expense | 320,838,751.05 | 288,031,321.60 |
| Interest income | 16,801,990.79 | -95,626,567.30 |
| Add：Other income | 76,186,615.30 | 105,585,373.30 |
| Investment gain（“-”for loss） | -1,944,253.53 | 18,510,790.49 |
| Including: investment gains from affiliates | -1,944,253.53 | 7,222,622.82 |
| 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 | -2,283,096.88 | |
| Impairment loss of assets | 4,550,554.80 | |
| Assets disposal income | ||
| III. Operating profit（“-”for loss） | -316,775,510.30 | 566,860,863.04 |
| Add ：Non-operating income | 1,889,059.27 | 8,308,090.03 |
| Less: Non-operating expenses | 5,023,833.21 | 5,567,209.46 |
| IV. Total profit(“-”for loss) | -319,910,284.24 | 569,601,743.61 |
| Less：Income tax expenses | 13,432,307.99 | 118,907,014.42 |
| V. Net profit | -333,342,592.23 | 450,694,729.19 |
| (I) Classification by business continuity | ||
| 1.Net continuing operating profit | -333,342,592.23 | 450,694,729.19 |
| 2.Termination of operating net profit | ||
| (II) Classification by ownership | ||
| 1.Net profit attributable to the owners of parent company | -332,074,298.57 | 431,060,886.41 |
| 2.Minority shareholders’ equity | -1,268,293.66 | 19,633,842.78 |
| VI. Net after-tax of other comprehensive income | ||
| Net of profit of other comprehensive income attributable to owners of the parent company. | ||
| （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. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | ||
| 7.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | ||
| VII. Total comprehensive income | -333,342,592.23 | 450,694,729.19 |
| Total comprehensive income attributable to the owner of the parent company | -332,074,298.57 | 431,060,886.41 |
| Total comprehensive income attributable minority shareholders | -1,268,293.66 | 19,633,842.78 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | -0.06 | 0.08 |
| (II)Diluted earnings per share | -0.06 | 0.08 |
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB 0.00.Legal representative ：Gu XuanPerson-in-charge of the accounting work：Wang QingPerson-in -charge of the accounting organ ：Wang Qing
4.Income statement of the Parent Company of the Report period
In RMB
| Items | Amount in this period | Amount in last period |
| I. Revenue | 0.00 | 58,425,489.32 |
| Including ：Operating costs | 0.00 | 50,591,128.19 |
| Business tax and surcharge | 976,888.96 | 995,340.65 |
| Sales expense | ||
| Administrative expense | 2,048,746.13 | 6,035,848.15 |
| R & D expense | 566,821.38 | 879,302.46 |
| Financial expenses | 186,163,634.32 | 56,873,326.71 |
| Including：Interest expenses | 241,905,411.35 | 168,844,922.67 |
| Interest income | 55,742,450.49 | 112,217,347.31 |
| Add：Other income | ||
| Investment gain（“-”for loss） | -1,944,253.53 | 7,219,446.42 |
| Including: investment gains from affiliates | -1,944,253.53 | 7,219,446.42 |
| Financial assets measured at amortized cost cease to be recognized as income | ||
| Net exposure hedging income | ||
| Changing income of fair value | ||
| Credit impairment loss | ||
| Impairment loss of assets | 241.00 | |
| Assets disposal income | ||
| II. Operating profit（“-”for loss） | -191,700,344.32 | -49,729,769.42 |
| Add ：Non-operating income | 730.00 | |
| Less：Non -operating expenses | ||
| III. Total profit(“-”for loss) | -191,700,344.32 | -49,729,039.42 |
| Less：Income tax expenses | ||
| IV. Net profit | -191,700,344.32 | -49,729,039.42 |
| 1.Net continuing operating profit | -191,700,344.32 | -49,729,039.42 |
| 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. Other comprehensive income arising from the reclassification of financial assets | ||
| 4. Allowance for credit impairments in investments in other debt obligations | ||
| 5. Reserve for cash flow hedges | ||
| 6.Translation differences in currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | -191,700,344.32 | -49,729,039.42 |
| VII. Earnings per share | ||
| （I）Basic earnings per share | ||
| (II)Diluted earnings per share |
5 Consolidated Cash flow statement
In RMB
| Items | Report period | Same period of the previous year |
| I. Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 1,865,598,799.57 | 5,076,060,941.82 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| 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 | 16,301,033.04 | 61,166,837.37 |
| Other cash received from business operation | 110,728,411.17 | 1,198,893,570.39 |
| Sub-total of cash inflow | 1,992,628,243.78 | 6,336,121,349.58 |
| Cash paid for purchasing of merchandise and services | 1,373,671,844.10 | 4,150,952,638.34 |
| 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 | 216,484,554.13 | 299,283,804.82 |
| Taxes paid | 43,091,758.89 | 398,156,980.53 |
| Other cash paid for business activities | 200,353,805.29 | 849,044,296.94 |
| Sub-total of cash outflow from business activities | 1,833,601,962.41 | 5,697,437,720.63 |
| Net cash generated from /used in operating activities | 159,026,281.37 | 638,683,628.95 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | 87,956,080.78 | |
| Cash received as investment gains | ||
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 24,000.00 | |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 24,896,582.24 | 339,995,038.76 |
| Sub-total of cash inflow due to investment activities | 24,896,582.24 | 427,975,119.54 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 30,672,489.27 | 106,155,263.08 |
| Cash paid as investment | ||
| Net increase of loan against pledge | ||
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 75,037,633.04 | 446,950,176.89 |
| Sub-total of cash outflow due to | 105,710,122.31 | 553,105,439.97 |
| investment activities | ||
| Net cash flow generated by investment | -80,813,540.07 | -125,130,320.43 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Including: Cash received as investment from minor shareholders | ||
| Cash received as loans | 358,229,504.54 | 2,939,250,000.00 |
| Other financing –related cash received | 368,397,591.89 | 1,082,451,154.52 |
| Sub-total of cash inflow from financing activities | 726,627,096.43 | 4,021,701,154.52 |
| Cash to repay debts | 478,166,532.68 | 1,776,368,478.34 |
| Cash paid as dividend, profit, or interests | 52,121,943.43 | 352,665,722.75 |
| Including: Dividend and profit paid by subsidiaries to minor shareholders | ||
| Other cash paid for financing activities | 382,377,110.65 | 275,139,574.98 |
| Sub-total of cash outflow due to financing activities | 912,665,586.76 | 2,404,173,776.07 |
| Net cash flow generated by financing | -186,038,490.33 | 1,617,527,378.45 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -328,562.49 | -1,426,795.20 |
| V.Net increase of cash and cash equivalents | -108,154,311.52 | 2,129,653,891.77 |
| Add: balance of cash and cash equivalents at the beginning of term | 8,001,611,170.08 | 14,916,637,291.04 |
| VI ..Balance of cash and cash equivalents at the end of term | 7,893,456,858.56 | 17,046,291,182.81 |
6. Cash Flow Statement of the Parent Company
In RMB
| Items | Amount in this period | Amount in last period |
| I.Cash flows from operating activities | ||
| Cash received from sales of goods or rending of services | 84,181,455.03 |
| Tax returned | ||
| Other cash received from business operation | 5,236,758.45 | 1,013,835,129.83 |
| Sub-total of cash inflow | 5,236,758.45 | 1,098,016,584.86 |
| Cash paid for purchasing of merchandise and services | 3,805.00 | 206,012.32 |
| Cash paid to staffs or paid for staffs | 396,108.02 | 4,618,891.20 |
| Taxes paid | 12,178,186.23 | |
| Other cash paid for business activities | 37,651.59 | 657,575,351.98 |
| Sub-total of cash outflow from business activities | 437,564.61 | 674,578,441.73 |
| Net cash generated from /used in operating activities | 4,799,193.84 | 423,438,143.13 |
| II. Cash flow generated by investing | ||
| Cash received from investment retrieving | ||
| Cash received as investment gains | ||
| 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 | ||
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | ||
| Cash paid as investment | 225,300,000.00 | |
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 9,751,759.54 | 8,364,163,788.74 |
| Sub-total of cash outflow due to investment activities | 9,751,759.54 | 8,589,463,788.74 |
| Net cash flow generated by investment | -9,751,759.54 | -8,589,463,788.74 |
| III. Cash flow generated by financing |
| Cash received as investment | ||
| Cash received as loans | 1,130,000,000.00 | |
| Other financing –related ash received | 15,068,278.00 | 7,896,851,205.51 |
| Sub-total of cash inflow from financing activities | 15,068,278.00 | 9,026,851,205.51 |
| Cash to repay debts | 322,883,333.28 | |
| Cash paid as dividend, profit, or interests | 8,739,182.54 | 96,424,046.00 |
| Other cash paid for financing activities | ||
| Sub-total of cash outflow due to financing activities | 8,739,182.54 | 419,307,379.28 |
| Net cash flow generated by financing | 6,329,095.46 | 8,607,543,826.23 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | ||
| V.Net increase of cash and cash equivalents | 1,376,529.76 | 441,518,180.62 |
| Add: balance of cash and cash equivalents at the beginning of term | 4,660,058,550.70 | 9,732,302,654.23 |
| VI ..Balance of cash and cash equivalents at the end of term | 4,661,435,080.46 | 10,173,820,834.85 |
II Adjustments to the Financial Statements
1. Adjustment of the relevant items of the financial statements at the current year beginning according tothe new standards for revenues and the new standards for lease implemented commencing from year 2020
√ Applicable □ Not applicable
Consolidated balance sheet
In RMB
| Items | December 31, 2019 | January 1, 2020 | Adjustment |
| Current asset： | |||
| Cash and bank balances | 11,580,819,578.44 | 11,580,819,578.44 | |
| Notes receivable | 34,510,584.50 | 34,510,584.50 | |
| account receivable | 11,496,500,929.28 | 11,496,500,929.28 |
| Receivables financing | 1,712,996,551.15 | 1,712,996,551.15 | |
| Prepayments | 8,993,206,274.68 | 8,993,206,274.68 | |
| Other account receivable | 4,831,348,641.69 | 4,831,348,641.69 | |
| Including：Interest receivable | 2,325,948.16 | 2,325,948.16 | |
| dividends receivable | 11,585,960.88 | 11,585,960.88 | |
| Inventories | 4,326,590,183.49 | 3,978,174,408.21 | -348,415,775.28 |
| Contract assets | 348,415,775.28 | 348,415,775.28 | |
| Held-for-sale assets | 119,355,435.58 | 119,355,435.58 | |
| Other current assets | 837,951,546.82 | 837,951,546.82 | |
| Total of current assets | 43,933,279,725.63 | 43,933,279,725.63 | |
| Non-current assets： | |||
| Long-term receivable | 306,158,872.38 | 306,158,872.38 | |
| Long term share equity investment | 2,207,456,475.75 | 2,207,456,475.75 | |
| Other equity instruments investment | 248,158,605.30 | 248,158,605.30 | |
| Property investment | 695,653,870.87 | 695,653,870.87 | |
| Fixed assets | 9,075,392,171.23 | 9,075,392,171.23 | |
| Construction in progress | 4,856,161,438.68 | 4,856,161,438.68 | |
| Intangible assets | 1,061,801,667.12 | 1,061,801,667.12 | |
| Development expenses | 44,748,355.95 | 44,748,355.95 | |
| Goodwill | 1,995,588,453.44 | 1,995,588,453.44 | |
| Long-germ expenses to be amortized | 21,707,770.53 | 21,707,770.53 | |
| Deferred tax assets | 430,229,031.02 | 430,229,031.02 | |
| Other non-current asset | 4,751,984,490.29 | 4,751,984,490.29 | |
| Total of non-current assets | 25,695,041,202.56 | 25,695,041,202.56 | |
| Total of assets | 69,628,320,928.19 | 69,628,320,928.19 | |
| Current liabilities | |||
| Short-term loans | 9,807,921,003.28 | 9,807,921,003.28 | |
| Notes payable | 850,447,788.10 | 850,447,788.10 | |
| account payable | 7,007,558,192.78 | 7,007,558,192.78 | |
| Advance payment | 1,652,587,387.44 | 99,359,865.10 | -1,553,227,522.34 |
| Contract liability | 1,553,227,522.34 | 1,553,227,522.34 |
| Employees’ wage payable | 206,227,756.49 | 206,227,756.49 | |
| Tax payable | 339,813,007.03 | 339,813,007.03 | |
| Other account payable | 3,693,138,656.67 | 3,693,138,656.67 | |
| Including：Interest payable | 452,834,591.96 | 452,834,591.96 | |
| dividends receivable | 66,278,190.37 | 66,278,190.37 | |
| Non-current liability due within 1 year | 7,841,514,464.78 | 7,841,514,464.78 | |
| Other current liability | 454,404,004.66 | 454,404,004.66 | |
| Total of current liability | 31,853,612,261.23 | 31,853,612,261.23 | |
| Non-current liabilities： | |||
| Long-term loan | 3,003,722,151.74 | 3,003,722,151.74 | |
| Bond payable | 301,145,832.60 | 301,145,832.60 | |
| Long-term payable | 1,077,918,138.44 | 1,077,918,138.44 | |
| Estimated liabilities | 124,239,165.21 | 124,239,165.21 | |
| Deferred income | 713,023,519.35 | 713,023,519.35 | |
| Deferred income tax liability | 54,472,480.31 | 54,472,480.31 | |
| Other non-current liability | 508,000,000.00 | 508,000,000.00 | |
| Total non-current liabilities | 5,782,521,287.65 | 5,782,521,287.65 | |
| Total of liability | 37,636,133,548.88 | 37,636,133,548.88 | |
| Owners’ equity | |||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 | |
| Capital reserves | 21,812,136,465.66 | 21,812,136,465.66 | |
| Less: treasury shares | 4,422,320.00 | 4,422,320.00 | |
| Other comprehensive income | -29,175.80 | -29,175.80 | |
| Special reserve | 28,499,725.62 | 28,499,725.62 | |
| Surplus reserves | 245,507,019.95 | 245,507,019.95 | |
| Retained profit | 3,208,181,640.38 | 3,208,181,640.38 | |
| Total of owner’s equity belong to the parent company | 31,020,123,473.81 | 31,020,123,473.81 | |
| Minority shareholders’ equity | 972,063,905.50 | 972,063,905.50 | |
| Total of owners’ equity | 31,992,187,379.31 | 31,992,187,379.31 | |
| Total of liabilities and owners’ equity | 69,628,320,928.19 | 69,628,320,928.19 |
Adjustment statement
The ministry of finance revised and issued the accounting standards for enterprises no. 14 -- revenue (hereinafterreferred to as the "new revenue standards") On July 5, 2017. The domestic enterprises will take effect for the newrevenue standards from January 1, 2020. This accounting policy change does not involve retroactive adjustmentsfor previous years.Parent Company Balance Sheet
In RMB
| Items | December 31, 2019 | January 1, 2020 | Adjustment |
| Current asset： | |||
| Cash and bank balances | 4,700,601,207.82 | 4,700,601,207.82 | |
| account receivable | 236,947,979.44 | 236,947,979.44 | |
| Prepayments | 1,033,942.61 | 1,033,942.61 | |
| Other account receivable | 11,551,051,968.51 | 11,551,051,968.51 | |
| Dividend receivable | 500,000,000.00 | 500,000,000.00 | |
| Inventories | 193,714,314.48 | 193,714,314.48 | |
| Other current assets | 148,973.38 | 148,973.38 | |
| Total of current assets | 16,683,498,386.24 | 16,683,498,386.24 | |
| Non-current assets： | |||
| Long term share equity investment | 28,378,702,448.80 | 28,378,702,448.80 | |
| Other equity instruments investment | 129,500,056.00 | 129,500,056.00 | |
| Fixed assets | 145,493,375.51 | 145,493,375.51 | |
| Intangible assets | 8,991,679.94 | 8,991,679.94 | |
| other non-current assets | 300,000,000.00 | 300,000,000.00 | |
| Total of non-current assets | 28,962,687,560.25 | 28,962,687,560.25 | |
| Total of assets | 45,646,185,946.49 | 45,646,185,946.49 | |
| Current liabilities | |||
| Short-term loans | 6,507,370,461.11 | 6,507,370,461.11 | |
| accounts payable | 8,663,754.33 | 8,663,754.33 | |
| Prepayments | 842,498.78 | 842,498.78 | |
| Employees’ wage payable | 5,226,344.53 | 5,226,344.53 | |
| Tax payable | 16,766,064.54 | 16,766,064.54 | |
| Other account payable | 4,861,267,706.46 | 4,861,267,706.46 | |
| Including：Interest payable | 426,748,970.50 | 426,748,970.50 |
| dividends payable | 66,278,190.37 | 66,278,190.37 | |
| Non-current liabilities due within 1 year | 6,097,417,230.96 | 6,097,417,230.96 | |
| Total of current assets | 17,497,554,060.71 | 17,497,554,060.71 | |
| Non-current assets： | |||
| long-term loan | 495,175,833.33 | 495,175,833.33 | |
| anticipation liabilities | 54,389,500.40 | 54,389,500.40 | |
| Total of non-current assets | 549,565,333.73 | 549,565,333.73 | |
| Total of assets | 18,047,119,394.44 | 18,047,119,394.44 | |
| Owners’ equity | |||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 | |
| Capital reserves | 21,832,453,907.50 | 21,832,453,907.50 | |
| Less: treasury shares | 4,422,320.00 | 4,422,320.00 | |
| Surplus reserves | 226,517,795.62 | 226,517,795.62 | |
| Retained profit | -185,732,949.07 | -185,732,949.07 | |
| Total of owners’ equity | 27,599,066,552.05 | 27,599,066,552.05 | |
| Total of liabilities and owners’ equity | 45,646,185,946.49 | 45,646,185,946.49 |
Adjustment statement
The ministry of finance revised and issued the accounting standards for enterprises no. 14 -- revenue(hereinafter referred to as the "new revenue standards") On July 5, 2017. The domestic enterprises will take effectfor the new revenue standards from January 1, 2020. This accounting policy change does not involve retroactiveadjustments for previous years.
2. Note to the retroactive adjustment of the previous comparative data according to the new standards forrevenue and the new standards for lease implemented commencing from year 2020
□Applicable √Not applicable √
III. Auditor’ reportIs the Frist Quarterly Report be audited?
□ Yes √No
The Frist Quarterly report is not audited.
Tunghsu Optoelectronic Technology Co., Ltd.
Board Chairman: Gu Xuan
Issue day approved by the Board of Directors：April 30,2020