Tunghsu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2018
August 2018
I. Important Notice, Table of Contents and Definitions
The Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr. Wang Lipeng, The Company leader, Ms. Feng Qiuju, Chief financial officer and the Mr. Gao Feipeng,the person 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
I.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., was the implementation unit of the non-public item to raise money for and invest in of “The Project of Production Line for Panel Display Plate” in 2013 |
| Wuhu Equipment | Refers to | Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. |
| Tunghsu (Kunshan ) | Refers to | Tunghsu（Kunshan）Display material Co., Ltd.， In 2015, was the implementation unit of the non-public item to raise money for and invest in “Project of Production Line for the 5th-generation CF for TFT-LCD”. |
| Tunghsu Construction | Refers to | Tunghsu Construction Group Co., Ltd. |
| Fuzhou Xufu | Refers to | Fuzhou Xufu Optoelectronic Technology Co., Ltd.， In 2016, was the non-public item to raise money for and invest in “Project of Production Line for the 8.5th-generation CF for TFT-LCD” |
| Fuzhou Optoelectronic | Refers | Fuzhou Tunghsu Optoelectronic Technology Co., Ltd.， In 2016, was the |
| to | non-public item to raise money for and invest in “Project of Production Line for the 8.5th-generation CF for TFT-LCD” | |
| 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 | Refers to | Wujiang Tengda Packing Products Co., Ltd. |
| SUNLONG | Refers to | Shanghai Sunlong Bus Co., Ltd.，2017 issue of shares and payment of cash to buy the assets of the enterprise |
| 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 |
| LTPS | Refers to | Low Temperature Poly-silicon |
| AMOLED | Refers to | Active-matrix organic light emitting diode |
| 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 | refers to the general name of optical diaphragms such as diffusion, |
| to | reflection, prism, composite prism, etc., mainly used in TFT LCD backlights. | |
| CF | Refers to | Critical original materials of LCD panel for realizing colorization display |
| Grapheme materials | Refers to | Refers to two-dimensional carbon materials related to grapheme, with a layer less than 10 carbon atoms |
| Cover glass | Refers to | In addition to mobile phones, tablet PCs and other displays, for the touch screen touch module, display and non-touch screen display to protect the transparent glass lens |
| New Energy Bus | Refers to | Adopting new power systems, fully or mainly rely on new energy-driven passenger bus, including pure electric bus and fuel cell bus |
II. Basic Information of the Company and Financial index
I. Company Information
| Stock abbreviation | Tunghsu Optoelectronic, Tunghsu B | Stock code | 000413、200413 |
| Stock abbreviation after change (if any) | Tunghsu Optoelectronic, Tunghsu B | ||
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name in Chinese | 东旭光电科技股份有限公司 | ||
| Chinese Abbreviation | 东旭光电 | ||
| English name (If any) | Tunghsu Optoelectronic Technology Co.,Ltd. | ||
| English abbreviation (If any) | Tunghsu Optoelectronic | ||
| Legal Representative | Wang Lipeng | ||
II. Contact person and contact manner
| Board secretary | Securities affairs Representative | |
| Name | Gong Xin | Wang Qingfei |
| Contact address | No.5 Court, No.23 A Fuxing Road, Haidian District, Beijing | No.5 Court, No.23 A Fuxing Road, Haidian District, Beijing |
| Tel | 010-68297016 | 010-68297016 |
| Fax | 010-68297016 | 010-68297016 |
| gongxin_dx@126.com | wangqingfei@dong-xu.com |
III. Other1. Way of contactWhether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in annual report 2017.2. Information inquiryWhether 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 2017.
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
Reasons for retrospective restatements:
Business merger under the same control.
| Reporting period | Same period of last year | YoY+/-（%） | ||
| Before adjustment | After adjustment | After adjustment | ||
| Operating Gross income（Yuan） | 11,129,851,790.88 | 4,641,285,527.91 | 4,876,438,604.10 | 128.24% |
| Net profit attributable to the shareholders of the listed company（Yuan） | 858,296,089.08 | 635,855,750.37 | 637,480,381.47 | 34.64% |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（Yuan） | 811,345,478.77 | 559,990,548.41 | 564,088,026.98 | 43.83% |
| Cash flow generated by business operation, net（Yuan） | 83,617,287.66 | -1,414,361,686.97 | -1,364,949,813.78 | 106.13% |
| Basic earning per share(Yuan/Share) | 0.15 | 0.13 | 0.13 | 15.38% |
| Diluted gains per share(Yuan/Share)(Yuan/Share) | 0.15 | 0.13 | 0.13 | 15.38% |
| Net asset earning ratio（%） | 2.74% | 2.84% | 2.73% | 0.01% |
| As at the end of the reporting period | As at the end of last year | YoY+/-（%） | ||
| Before adjustment | After adjustment | After adjustment | ||
| Gross assets（RMB） | 66,693,831,497.63 | 67,683,329,226.91 | 68,610,779,546.18 | -2.79% |
| Shareholders’ equity attributable to shareholders of the listed company（RMB） | 31,213,233,914.18 | 30,922,796,455.46 | 30,949,718,542.41 | 0.85% |
V. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
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) | -664,826.45 | |
| Govemment subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 44,668,918.09 | |
| Gain/loss on entrusting others with investment or asset management | 13,923,452.07 | Investment financing income |
| Gain/loss from debt reorganization | 484,207.00 | |
| Net gain/loss of current term from consolidation of subsidiaries under common control from beginning of term to the consolidation date | -9,555,668.76 | Business combination under the same control. Retroactive adjustment |
| Entrusted with the operating of the trust to obtain fee income | 235,849.06 | |
| Other non-operating income and expenditure beside for the above items | 2,694,248.35 | |
| Less: Influenced amount of income tax | 6,987,734.04 | |
| Amount of influence of minority interests（After tax） | -2,152,164.99 | |
| Total | 46,950,610.31 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses 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 information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industryNo
The Company is a leading and comprehensive service provider of new materials, high-end equipmentmanufacturing and new-energy automobile manufacturing at home. It possesses the liquid crystal glass substrateproduction capacity ranking first in China and fourth all over the world in the field of new materials representedby photoelectric display material and at the same time lays out laterally other core ones such as curved cover glass,color filter and sapphire, etc., which results in its prominence of photoelectric display material industry clusteradvantages; its graphene industrial application in initial development period is the extension and importantsupplementation of new material business. In terms of the high-end equipment manufacturing field, itsself-developed complete glass substrate manufacturing equipment has relatively strong technological spillovereffect, has extended into several fields and becomes an important income and profit source thereof. For the newenergy automobile field, based on Sunlong, it has been advancing industrial development of new energypassenger and logistics cars strongly, has laid out several new energy automobile industry bases in China and hasbeen devoted to making the new energy automobile business into its new growth level.
I. New material business system1. Glass substrate original film businessThe liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, withextremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set ofliquid crystal glass substrate production equipment, the company took the lead in breaking the internationalmonopoly and achieved the home-making of liquid crystal glass substrate. 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. The company has 20 liquid crystal glass substrate production lines , with that the mass productioncapacity tops first in China and ranks fourth in the world.The cover glass is used to protect the touch module and the display screen. The company has the originalproduction line of the advanced float glass substrate in Mianyang, Sichuan, and has the capacity of the first andthe world's third high-aluminum cover glass substrate. Performance, the company is the only company in Chinathat masters both the overflow melting method and the floating method.2. Other display materials businessIn order to enhance the competitiveness and profitability of the display materials business, the companyimplements a horizontal extension strategy of the industry chain. Since 2015, it has successively laid out coverglass original film, curved-surfaced cover glass, optical diaphragm, color filters and sapphire to optimize itsbusiness structure. Industrial clustering effects appear. The curved cover glass has the advantages of lightness,transparency, anti-fingerprint, anti-glare, and good weather resistance. It can enhance the appearance of smartterminal products and bring excellent touch feeling. The company's optical film covers diffusion, reflection, prism,Subdivisions such as composite prisms, mainly used in TFT LCD backlights. The color filter is a key componentof the colorization of the liquid crystal display. The company's main product is the G5 color Filters; sapphire iswidely used in LED substrate materials and optical components and other fields, the company's main products are2-inch and 4-inch LED substrate products.
3. Industrial application of graphene material
The graphene has excellent characteristics of optics, electricity, heat and mechanics and important application
prospects in terms of materialogy and energy, etc. and is deemed as a revolutionary new material. Leading thegraphene material industrial application, the Company has already formed four series of grapheme materialindustrial application products of grapheme battery, graphene electrical heating, graphene anticorrosive paint andgrapheme lighting, among which, partial ones have already realized batch production and been sold overseas.Several countries alongside One Belt and One Road become main markets for such graphene products. Thegrapheme new material layout is a strategic input for long-term development in the future, caters for new materialand new energy automobile development direction in the future and has large growth potential and market space.
II. High-end equipment manufacturing businessThanks to the company's independent research and development to break through the foreign blockade, thesolid foundation laid by the high-tech front-end equipment in the production of glass substrates has beenestablished. Under the background of domestic industrial manufacturing replacing equipment by equipment andsatisfying intelligent and efficient production, the company's high-end equipment and technical services Businesscontinues to work. The company's high-end equipment business currently mainly adopts an integrated mode. Thebusiness mainly involves high-end equipment such as photoelectric display materials, semiconductor cleaning,grinding, testing, cutting, laminating, automated logistics, and corresponding technical services, control systemsand special equipment. Supply of products, with a large number of large group customers who have demand in theintelligent field
III. New energy automobile businessThe company has engaged in the high-end equipment manufacturing industry for almost 20 years andpossesses strong spillover capacity from technology to management and from capital to talent. Since it acquired100% equities of Sunlong through share issuance and assets purchase through capital payment in 2017, based onthe listed company platform, the Company has supported Sunlong from several aspects of technology,management, market and resource, etc., exerted industrial synergy with the same, enriched its existing industrialstructure, seized rapidly industrial opportunities of new energy passenger and logistics cars. In the first half of theyear, the company sold a total of 2,072 passenger cars, a year-on-year increase of 17.53%, including 1,696 newenergy buses, accounting for 82% of the total sales, and sales of new energy buses increased by 33%. The newenergy vehicle business maintained a good growth momentum.
IV. Other business system1. Electrocommunication product business
To break the industrial dilemma of “chip and display panel lack” of China, the Company, through integrating
large quantities of customer resources and photoelectric display material sale channels, endeavors to realize theindustrial integration and synergy of photoelectric display materials and relevant accessories. Simultaneously, theCompany tries to expand import and export channels for liquid crystal display module and storage chip, etc.,expand supply and marketing channels for Internet of Things equipment, perfect gradually links of customsclearance, storage and logistics, etc. and provide clients with integrated solutions based on their unique demands.2. Construction & installation business
As a company's traditional business, the construction & installation business has played an important role in
assisting the company's production base’s construction and maintenance, thus effectively reducing the company's
various project construction costs. Meantime, as a supplement to the main business, and with the continuousdevelopment of domestic industrialization and urbanization, the construction & installation business has contributeda certain amount of revenue and profits for the company in recent years.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
| Main assets | Major changes |
| Equity assets | There were no major changes in this period compared to the previous period. |
| Fixed assets | There were no major changes in this period compared to the previous period. |
| Intangible assets | There were no major changes in this period compared to the previous period. |
| Construction in process | The production line investment construction was formed. |
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicableⅢ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industryNo
In Annual Report 2017, 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 2018, such core competitive force has been strengthened and deepened
further without any other significant change.
IV. Performance Discussion and Analysis
Ⅰ.General
In 2018, Tunghsu will forge ahead. Under leadership of the company Board of Directors and managementlayer and unremitting efforts of all staff, the Company, centering on established strategic layout of the company inthe first half year, optimizes the industrial structure positively, deepens the existing product market pattern andpromotes strongly development of core business including new materials, high-end equipment manufacturing andnew energy automobile, etc. to make each item of business increase stably and rapidly. During the reportingperiod, the Company achieves an operating income of RMB 11.13 billion , an increase of 128.24% over the sameperiod in 2017; The net profit attributable to shareholders of listed companies, net of non-recurring gains and
losses, was RMB 811 million, an increase of 43.83% over the first half of 2017.
The company's each business development status in the first half of 2018:
1. Product upgrade and high-generation glass substrate production line performance contribution levelimprovement
As the panel and glass substrate large size and high generation have become an industrial trend in recent years,the Company has liquid glass substrate products covering G5, G6 and G8.5 and is capable of providing each-typehigh-quality glass substrate product for down-stream clients. Within the report period, its two G8.5 glass substrateproduction lines in Fuzhou were in good condition and received good production and sales achievements, whichmake its high-generation glass substrate product market share increased and glass substrate product structureoptimized. As the high-generation glass substrate placement and investment projects develop continuously in thefuture and the company's technical accumulation in glass substrates for OLED display, the Company will have an improvedcore competitive force in such glass substrate field.
2. Curved cover glass layout and rapid formation of effective capacity
Within the report period, the Company implemented “curved display cover glass production project” based
on Xuhong Optoelectronic and already formed the annual capacity of [5 million] pieces and supplied the same inbatch to clients. The curved cover glass, with flexible, thin, transparent and clean, anti-fingerprint, anti-dazzle andgood weather-resistance, etc. characteristics is applicable to the flexible display area as a strong measure adoptedby the Company to follow OLED flexile display screen trend. At the same time, after the high aluminum cover
glass substrate Sheet Production Line of Xuhong Optoelectronic was included into the Company’s new material
industrial system officially in October 2017, such product has set all-time new highs repeatedly through vigorousexpansion of end clients and production process and sale type structure optimization and becomes an effective
growth point for the Company’s new material business.
3.With synergistic development, continue to advance the optical film, color filter, sapphire businessDuring the reporting period, Tengda Optical Film Business and Jiangsu Jixing Sapphire Business achievedrapid growth, and the supporting supply of Tenda Optics and Jiangsu Jixing Optoelectronic Display Materials had
well enhanced the major customers’ adhesiveness of the Company. In December 2017, the Company completed the
first 5th generation color filter production line for TFT-LCD. During the reporting period, the Company activelypromoted the work including the debugging of color filter production lines, customer development and samplecertification. Currently, the Company has obtained orders from customers such as Longteng Optoelectronics. TheColor filters has realized the bulk supply, which is conducive to increase the added value of products of theexisting G5 liquid crystal glass substrates.
4. Obtaining big orders and new progress realization in grapheme material industrial applicationWithin the report period, Tunghsu Carbon, MS Technology and Tan Yuan Graphene, subsidiaries of theCompany, concluded Graphene Application Product Strategic Partnership Agreement on expansion and sale ofgraphene electric heating products, graphene street lamp products and graphene anticorrosive paint, etc. with 15downstream grapheme application enterprises, whose price reaches 610 million yuan. The grapheme materialindustrial application is getting better in the initial development period and will become an important supplement
to its new material business system. In addition, the “lithium-ion secondary battery”(TanYuanG18650) project ofTan Yuan Graphene was deemed as “a high-tech outcome transformation project in Shanghai” by Shanghai
High-tech Outcome Transformation Project Certification Office based on the macro-batch production technologyof high-quality and low-cost grapheme and was included into the 1
st
Shanghai High-tech outcome transformationproject in 2018.
5. High-end equipment business stable and continuous development
In recent years, under the background of domestic industrial manufacturing adopting equipment replacing laborfor satisfying the intelligent and efficient production, the Company's high-end equipment business has steadilyexpanded and well developed, gradually supplying optoelectronic display materials and equipment, semiconductorequipment and other general-purpose equipment to domestic high-end customers. During the reporting period, theCompany closely focused on the investment boom of domestic panel production lines and semiconductorproduction lines, continued to sign equipment business orders with BOE, CSOT, Visionox and other groupcustomers in the intelligent application field, and actively explored the high-end equipment market in thesemiconductor field. With the acceleration of investment in the domestic semiconductor production line, thesemiconductor equipment business has a broad market space. The Company will strive to expand and develop thehigh-end equipment market in the semiconductor field, and make the high-end equipment business become anotherrapid growth point, thus providing new driving force for the steady development of the Company's high-endequipment business.
6. Business upgrade and intelligent robot platform company acquisitionThe intelligent manufacturing is the development direction of the Company high-end equipment businessindustry upgrade. Within the report period, the Company realized its high-end equipment manufacturing businessexpansion into the intelligent platform robot field through acquisition of Shenzhen Sanbao Innovation IntelligenceCo., Ltd. Next, it will combine its strong manufacturing industrialization basis, integrate advanced intelligentmanufacturing technology, optimize its existing complete-set intelligent scene application capacity, improve itscompetition in high-end equipment business field, improve its whole business synergy and realize its high-endequipment business industrial upgrade.
7. Expansion into a new city: new energy automobile industry basis location in JiangsuWithin the report period, to seize sufficiently development opportunities of national new energy automobileindustry and speed up the industrial layout in new energy automobile field, the Company, based on its technical
advantages in new energy automobile and local and investment environmental advantages of Suqian People’s
Government, concluded the New Energy Automobile Project Investment Cooperation Agreement with suchgovernment on construction of the production basis project with annual capacity of 5,000 new-energy passengercars and 50,000 new-energy logistics cars through investment of 3 billion yuan in Suqian city. Then, the Companycompletes the industrial layout of new energy automobile industrial base in East, South, West, North China andwill become a new-energy automobile manufacturer of important influence across country after such basesconstruction and putting into operation.
8. Step-by-step consolidation and synergic development of construction and installation business and
electrommunication business
Within the report period, in terms of construction and installation business, the Company obtained a series ofengineering business orders in fields of underground comprehensive pipeline corridor, municipal infrastructure,sponge city and smart city, etc. based on strong comprehensive strength and various flexible business modes,
which contribute to the Company’s operation revenue and net profit increase correspondingly; the
electrommunication business as a supplement to its main business kept fast increase continuously and played apositive role to increase its industrial synergy and expand its business scale.
II.Main business analysis
Refer 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 | 11,129,851,790.88 | 4,876,438,604.10 | 128.24% | Mainly due to business growth. |
| Operating cost | 9,021,989,897.09 | 3,473,962,810.22 | 159.70% | Mainly due to the increase in the corresponding cost of business growth |
| Sale expenses | 93,892,692.42 | 42,456,252.57 | 121.15% | Mainly due to the increase in the cost of freight, etc. |
| Administrative expenses | 389,977,702.76 | 229,378,673.33 | 70.01% | Mainly due to the increase in the cost of housing, water and electricity, etc. |
| Financial expenses | 395,227,116.30 | 368,191,927.63 | 7.34% | |
| Income tax expenses | 282,130,776.24 | 191,513,884.53 | 47.32% | Mainly due to the growth of business in the current period. |
| R & D Investment | 125,155,597.43 | 62,869,570.14 | 99.07% | Mainly due to the increase investment in research and development |
| Net cash generate by operating activities | 83,617,287.66 | -1,364,949,813.78 | 106.13% | |
| Net cash generated by investing activities | -1,660,557,972.96 | -1,088,549,503.22 | -52.55% | |
| Net cash generated by | -2,092,134,104.87 | -629,365,921.93 | -232.42% |
| financing activities | ||||
| Net increase in cash and cash equivalents | -3,671,727,390.78 | -3,074,153,558.61 | -19.44% |
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 (%) | |
| Industry | ||||||
| Optoelectronic display material | 2,162,239,379.37 | 1,693,307,933.68 | 21.69% | 83.71% | 118.34% | -12.42% |
| Equipment and Technology serves | 3,665,532,801.81 | 2,886,526,928.27 | 21.25% | 49.79% | 93.31% | -17.73% |
| Industrial application of graphene | 22,186,020.97 | 9,070,660.39 | 59.12% | 3,911.09% | 4,162.41% | -2.41% |
| New energy vehicle | 1,022,266,461.81 | 819,614,476.46 | 19.82% | |||
| Construction Installation | 1,555,645,862.34 | 1,500,887,029.86 | 3.52% | 164.78% | 167.26% | -0.89% |
| Electronic communication products | 1,571,252,619.47 | 1,538,031,287.70 | 2.11% | 139.47% | 139.55% | -0.03% |
| Products | ||||||
| Optoelectronic display material | 2,162,239,379.37 | 1,693,307,933.68 | 21.69% | 83.71% | 118.34% | -12.42% |
| Equipment and Technology serves | 3,665,532,801.81 | 2,886,526,928.27 | 21.25% | 49.79% | 93.31% | -17.73% |
| Industrial application of graphene | 22,186,020.97 | 9,070,660.39 | 59.12% | 3,911.09% | 4,162.41% | -2.41% |
| New energy | 1,022,266,461.81 | 819,614,476.46 | 19.82% | |||
| vehicle | ||||||
| Construction Installation | 1,555,645,862.34 | 1,500,887,029.86 | 3.52% | 164.78% | 167.26% | -0.89% |
| Electronic communication products | 1,571,252,619.47 | 1,538,031,287.70 | 2.11% | 139.47% | 139.55% | -0.03% |
| Area | ||||||
| China | 8,842,543,603.09 | 7,343,203,923.92 | 16.96% | 96.95% | 136.13% | -13.78% |
| Hongkong,Macauand Taiwan | 1,091,131,396.31 | 1,058,509,705.07 | 2.99% | 188.36% | 191.85% | -1.16% |
| Overseas | 65,448,146.37 | 45,724,687.36 | 30.14% | 67,938.20% | 106,337.97% | -25.20% |
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
| Amount | Proportion in total profit | Explanation of cause | Sustainable (yes or no) | |
| Other income | 108,362,056.52 | 9.21% | Government subsidy | Yes |
IV. Analysis of assets and liabilities1.Significant changes in asset composition
In RMB
| End of Reporting period | End of same period of last year | Change in percentage(%) | Reason for significant change | |||
| Amount | As a percentage of total assets(%) | |||||
| Monetary fund | 23,794,597,055.80 | 35.68% | 27,456,759,768.86 | 40.02% | -4.34% | |
| Accounts receivable | 9,937,647,168.77 | 14.90% | 7,873,419,684.42 | 11.48% | 3.42% | |
| Inventories | 4,210,883,497.85 | 6.31% | 4,914,482,277.21 | 7.16% | -0.85% | |
| Real estate Investment | 66,930,130.01 | 0.10% | 58,229,439.86 | 0.08% | 0.02% | |
| Long-term equity investment | 2,142,476,783.38 | 3.21% | 2,130,640,158.90 | 3.11% | 0.10% | |
| Fixed assets | 10,938,598,162.98 | 16.40% | 11,378,564,235.15 | 16.58% | -0.18% | |
| Construction in | 5,387,496,213.47 | 8.08% | 3,663,486,639.90 | 5.34% | 2.74% | |
| process | ||||||
| Short-term loans | 6,812,784,698.87 | 10.22% | 5,712,826,382.20 | 8.33% | 1.89% | |
| Long-term loans | 3,823,532,289.32 | 5.73% | 5,209,726,250.77 | 7.59% | -1.86% |
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting PeriodRestrictions on asset rights at the end of the reporting period are as follows:
1. The total amount of restricted Cash and bank balances at the end of the reporting period was RMB
2,351,663,690.33,Mainly for fixed deposits, deposits and so on.
2. RMB10,433,568,773.5 at the end of the period. Fixed assets were used as collateral and financial lease objects.3. At the end of the period, the intangible assets of RMB 350,282,096.92 were borrowed as collateral.4. At the end of the period, RMB 1,210,207,009.84 was pledged for construction in progress as collateral.5. At the end of the period, RMB 66,930,130.01 was pledged for Real estate investment as collateral.
Ⅴ.Investment situation1．External investment
√ Applicable □Not applicable
| Investments made in the reporting period | Investments made in same period of last year | +/- % |
| 3,148,450,556.06 | 6,175,411,729.77 | -49.02% |
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（Yingkou）Optoelectronic Display | Glass substrates | Purchase | 195,000,000.00 | 65.00% | Self | No | Long-term | Glass substrates | Completed | 0.00 | -9,555,668.76 | No | June 13,2018 | http://www.cninfo.com.cn |
| Co., Ltd. | ||||||||||||||
| Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. | High-end intelligent equipment | Purchase | 157,750,000.00 | 67.00% | Self | No | Long-term | High-end intelligent equipment | Completed | 0.00 | -1,101,997.15 | No | May 29,2018 | http://www.cninfo.com.cn |
| Shanghai Sunlong Bus Co., Ltd.， | New energy vehicle | Increase Capital | 1,400,000,000.00 | 100.00% | Raising Funds | No | Long-term | New energy vehicle | Completed | 0.00 | 109,136,890.07 | No | http://www.cninfo.com.cn | |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | Glass cover | Increase Capital | 800,000,000.00 | 100.00% | Raising Funds | No | Long-term | Glass cover | Completed | 0.00 | 44,618,329.52 | No | http://www.cninfo.com.cn | |
| Total | -- | -- | 2,552,750,000.00 | -- | -- | -- | -- | -- | -- | 0.00 | 143,097,553.68 | -- | -- | -- |
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment□ Applicable √ Not applicable
Nil
（2）Investment in Derivatives□ Applicable √ Not applicable
NilVI. Sales of major assets and equity1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.2.Sales of major equity
√ Applicable □ Not applicable
| Counter party | Sold equities | Sold date | Transaction price(Ten thousand yuan) | Net profits contributed by the equities to the listed companies from the period-begin to the sold date (Ten thousand yuan) | Influence of the selling of the Company | Proportion on of the net profits of the contributed amount of the equities selling to the listed companies to the total amo9unt of the net profits | Pricing principles of the equities selling | Whether was the related transaction | Relation ship with the center party | Whether the involved equities all complete ed the ownership transfer | Whether execute as scheduled and if failed, should state the reasons and the adopted measure ments of the company | Disclosure date | Disclosure Index |
| TunghsuTechnology Group Co., Ltd. | Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | April 28,2018 | 55,000 | 205.36 | No | -0.24% | Based on audited net assets | Yes | Same parent company | Yes | Yes | April 14,2018 | http://www.cninfo.com.cn |
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies√ Applicable □ Not 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 |
| ShijiazhuangXuxin Optoelectronic Technology Co., Ltd. | Subsidiary | Optoelectronic Display material | 1,906,000,000.00 | 3,614,327,964.30 | 2,185,344,573.32 | 257,758,187.11 | 50,116,654.12 | 42,667,836.04 |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | Subsidiary | Optoelectronic Display material | 1,900,000,000.00 | 3,933,116,975.62 | 2,067,268,812.55 | 211,280,233.31 | 52,984,015.91 | 44,618,329.52 |
| Shanghai Sunlong Bus Co., Ltd. | Subsidiary | New Energy Bus | 2,500,000,000.00 | 7,352,250,474.71 | 2,848,886,831.19 | 851,962,505.15 | 48,645,039.46 | 38,466,842.93 |
| Guangxi Sunlong Automobile Manufacturing Co., Ltd. | Subsidiary | New Energy Bus | 2,311,111,112.00 | 2,835,425,111.60 | 1,785,564,789.07 | 277,893,932.92 | 78,784,420.10 | 71,723,089.43 |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co.,Ltd. | Subsidiary | Equipment and technology Service | 1,000,000,000.00 | 12,745,478,055.37 | 2,952,254,790.26 | 1,448,811,435.46 | 596,270,067.22 | 510,256,680.37 |
| Beijing Xufeng Real estate Co., Ltd. | Subsidiary | Building and construction Industry | 870,000,000.00 | 2,204,338,312.81 | 783,972,669.58 | 1,094,173,849.22 | 408,282,973.44 | 311,897,319.71 |
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
| Name | Mode | Influence |
| Shenzhen Sanbao Chuangxin Intelligent | M & A | Increase business |
| Co., Ltd. | ||
| Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. | M & A | Increase business |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | Disposition | Based on overall strategic layout planning considerations |
Notes
VIII．Structured vehicle controlled by the Company□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably 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. Risk of macroeconomic cyclical fluctuationsThe optoelectronic display materials business centered on glass substrate relies on the LCD panel industry,which is a cyclical industry and a downstream industry to the company. As the prosperity of the panel industry isaffected by the macroeconomic fluctuations, then if the panel price fluctuates sharply due to the deterioration ofthe macroeconomic environment or the imbalance between the supply and the demand, the company may face therisk of industry downturn.
Improvement actions: The Company, through development for many years, has developed into an advancedcomprehensive service provider for new materials, high-end equipment manufacturing and new-energyautomobile manufacturing at home from the single manufacturer for liquid crystal glass substrate equipment andliquid crystal glass substrate; at the same time, it will, through close tracking of latest news on macro economy,industrial policies and industrial development, seize the investment and expansion pace and adjust thedevelopment strategies timely to guarantee its operation efficiency and effects and deal with macro economyperiodic fluctuation effectively.
2. Risk of technological upgrading alternativesThe company never stops the technical research and development and technology reserves, and has madebreakthroughs in many areas. However, if the downstream panel display industry undergoes major technologicalchanges and the company fails to achieve timely corresponding technological innovation, then the company willface certain risks when the technological upgrading alternatives hit the market.
Improvement actions: The Company has very strong technical strength and is the only one at home with twoglass substrate manufacturing processes including overflow fusion method and float glass at the same time, among
which, TFT-LCD glass substrate complete equipment production line is deemed as “a national strategicinnovative product” and the glass liquid processing method in platinum channels obtains “Chinese gold medal forpatent”. To deal with risk of technology replacement, the Company will, based on successful industrialization
experience obtained, continue strengthening R&D capital investment, strengthen R&D cooperation with
institutions of higher learning and research institutes and improve the R&D strength in ultrathin, large-size andLTPS glass and OLED new-type display technology glass, etc.
3. The risk caused by the continued fade-out of subsidy policies for new energy vehiclesAs the new energy auto companies have a certain dependence on government subsidies at this stage, thedecline in the subsidy standards will have a certain impact on the future sales of new energy auto products ofSunlong Bus. Although the company has in detail measured the feasibility of the company's implementation of therelated business plan after the full fade-out of the subsidy, if there are major adverse changes in the relevantindustrial policies in the future, Sunlong Bus will face the risk of that its operating performance will fall short ofexpectations.
Improvement actions: As parts (including power battery) and vehicle manufacturing technical level andproduction process improve constantly, the infrastructure including charging piles/stations, etc. realizeslarge-scale coverage, pure electric passenger car endurance mileage and other items of performance improvegradually, the up-stream suppliers release the capacity continuously, the production cost and sale unit pricedecrease, the new energy automobile popularization brings about pure electric passenger car acceptanceimprovement on a continuous basis of end clients and the environmental pollution results in the public emphasis
improvement on clean energy, it’s predicted that the pure electric passenger car production cost of Sunlong will
decrease gradually, which will offset adverse influence from subsidy policy decline and will drive the demandgrowth and sale of Sunlong new-energy passenger cars in the future.
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 2018 | Provisional shareholders’ General meeting | 21.88% | January 26,2018 | January 27,2018 | Announcement No. 2018-011, www.cninfo.com.cn |
| The Second provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General meeting | 21.95% | March 26,2018 | March 27,2018 | Announcement No. 2018-028, www.cninfo.com.cn |
| The Third provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General meeting | 21.96% | April 25,2018 | April 26,2018 | Announcement No. 2018-052, www.cninfo.com.cn |
| 2017 Shareholders’ general meeting | Annual Shareholders’ General Meeting | 22.66% | May 10,2018 | May 11,2018 | Announcement No. 2018-059, www.cninfo.com.cn |
| The Fourth provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General meeting | 22.73% | June 28,2018 | June 29,2018 | Announcement No. 2018-087, www.cninfo.com.cn |
| The Fifth provisional shareholders’ General meeting in 2018 | Provisional shareholders’ General meeting | 21.99% | July 30,2018 | July 31,2018 | Announcement No. 2018-100, www.cninfo.com.cn |
| The Sixth provisional shareholders’ General meeting in | Provisional shareholders’ General meeting | 27.68% | Aug 20,2018 | Aug 21,2018 | Announcement No. 2018-117 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
2018
Commitment
| Commitment | Commitment maker | Type | Contents | Time of making commitment | Period of commitment | Fulfillment |
| Commitment on share reform | ||||||
| Commitment in the acquisition report or the report on equity changes | ||||||
| Commitment made upon the assets replacement | ||||||
| Commitments made upon issuance | Tunghsu Group | Commitments on horizontal competition, related transaction and capital occupation | Before June 30, 2018, the entire equity of Tunghsu Yingkou, which is held by Tunghsu Group and is entrusted to the company's management, will be injected into Tunghsu Optoelectronic through cash purchase and add-directional share | December 14,2017 | Valid for June30,2018- | Fulfilled |
| issuance. During the above-mentioned period, if external factors such as the decline in the overall prosperity of the industry, changes in regulatory requirements, and other external factors lead to Tunghsu Yingkou equity not meeting the conditions for asset injection, the actual controllers Li Zhaoting and Tunghsu Group will actively consult with relevant parties and continue to entrust the equity and operating right of the above-said company to Tunghsu Optoelectronic. | ||||||
| Equity incentive commitment |
| Other commitments made to minority shareholders | Tunghsu Group | Share holdings commitment | The controlling shareholder of the company, Tunghsu Group, has announced its plan of increasing its holding of shares not less than 1% and not exceeding 3% of the company’s current total share capital via buying through the Shenzhen Stock Exchange trading system (i.e. the secondary market) with not less than RMB 500 million and not exceeding RMB1.5 billion in the next six months since the date of the announcement (February 2, 2018). Tunghsu Group promised not to reduce the holdings of the company's | February 2,2018 | Valid for August 2,2018 | Fulfilled |
| shares during the implementation period of this plan of increasing share-holding and during the statutory period. | |||
| Executed timely or not? | Yes | ||
| If the commitment has not been implemented at the end of the reporting period, it is necessary to explain the specific reason of failure in implementation and the future work plan. | Not applicable | ||
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” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicableVI. 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 scale of Phase 1 for Employee Stock Ownership Plan of Tunghsu Optoelectronic was RMB 495.4 million ,subscribing 72,639,296 of non-publicly issued shares of 2015 with full amount through No.2 Changjiang XingliOriented Plan, where the above shares were listed in SSE on December 17, 2015, which was with 36-monthlocking period.
2.The company’s second ESOP, via Zhonghai Trust-Tunghsu Optoelectronic ESOP Collective Funds Trust Plan,
in the secondary market bought 52,555,280 shares of the company by centralized bidding and/or bulk trading, withtransaction amount of RMB 496,410,000 and the average transaction price of about 9. 45 yuan per share. Thebuying has been completed as of December 28th 2017 and the ownership has been transferred into the name of theCollective Funds Trust Plan, with a lock-in period of 12 months.The employee stock ownership plan is still locked during the report period.
XII.Material related transactions1. 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 limited or not (Y/N) | Way of payment | Market price of similar trade available | Date of disclosure | Index of information disclosure |
| Guangdong Huakai Real | Controlled by the same actual | Selling goods and providin | Construction Engineering | Reference price setting | 1,994.53 | 1,994.53 | 20,000 | No | Currency | 1,994.53 | April 20,2018 |
| Estate Development Co., Ltd. | controller | g services | |||||||||||
| HuidongBaoan Hongji Real Estate Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 4,661.40 | 4,661.4 | 20,000 | No | Currency | 4,661.40 | April 20,2018 | ||
| HuidongBaoan Jinan Real Estate Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 4,643.51 | 4,643.51 | 20,000 | No | Currency | 4,643.51 | April 20,2018 | ||
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 14,070.79 | 14,070.79 | 35,000 | No | Currency | 14,070.79 | April 20,2018 | ||
| Shengzhou Zhexu Real Estate Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 3,516.81 | 3,516.81 | 20,000 | No | Currency | 3,516.81 | April 20,2018 | ||
| Yixian Xuhua Park | Controlled by the same | Selling goods and | Construction Enginee | Reference price setting | 3,961.61 | 3,961.61 | 15,000 | No | Currency | 3,961.61 | April 20,2018 |
| Construction Development Co., Ltd. | actual controller | providing services | ring | ||||||||||
| Yingxhuan Fengxiang Street Comprehensive Construction Management Co., Ltd | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 4,527.32 | 4,527.32 | 11,000 | No | Currency | 4,527.32 | April 20,2018 | ||
| Zhangzhou Shenghua ,Real Estate Development Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 2,241.39 | 2,241.39 | 20,000 | No | Currency | 2,241.39 | April 20,2018 | ||
| Chongqing Tunghsu Real Estate Co., Ltd. | Controlled by the same actual controller | Selling goods and providing services | Construction Engineering | Reference price setting | 1,834.88 | 1,834.88 | 5,500 | No | Currency | 1,834.88 | April 20,2018 | ||
| Total | -- | -- | 41,452.24 | -- | 166,500.00 | -- | -- | -- | -- | -- | |||
| Details of any sales return of a large amount | Nil | ||||||||||||
| Give the actual situation in the report period where a forecast had been made for the total amounts of routine related-party transactions by type to | Nil | ||||||||||||
| occur in the current period(if any) | |
| Reason for any significant difference between the transaction price and the market reference price (if applicable) | Nil |
2. Related-party transactions arising from asset acquisition or sold
√ Applicable □Not applicable
| Related parties | Relationship | Type of trade | Subjects of the related transactions | Principle of pricing the related transactions | Book value of assets transferred（Ten thousand） | Valuation of transferred assets（Ten thousand）（If any） | Transfer price（Ten thousand） | Way of payment | Transaction gain or loss（Ten thousand） | Date of disclosure | Index of information disclosure |
| TunghsuTechnology Group Co., Ltd. | Same control | Equity transfer | Disposal of subsidiaries | Based on audited net assets | 108,394.56 | 0 | 55,000 | Monetary funds | -205.36 | April 14,2018 | http://www.cninfo.com.cn |
| Reasons for the difference between the transfer price and the book value or valuation value（If any） | Nil | ||||||||||
| Impact on the company's operating results and financial status | Nil | ||||||||||
| If the relevant transaction involves performance agreement, the performance of the report during the reporting period | Nil | ||||||||||
3. Related-party transitions with joint investments
□Applicable √ Not 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
NilWebsite for temporary disclosure of the connected transaction
| Announcement | Date of disclosure | Website for disclosure |
| Announcement on the participation of wholly-owned subsidiaries in the PPP project private equity investment fund and related party transactions | January 27,,2018 | （http://www.cninfo.com.cn）(Announcement No/:2018-013) |
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related 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 execution1.Entrustments, contracting and leasing
（1）Entrustment
√ Applicable □Not applicable
Description of custodiesDuring the reporting period, the Company continued entrusted with the management of Tunghsu( Yingkou)Optoelectronic Display Co., Ltd.
In December 2011, Tunghsu Group signed the Equity Trusteeship Agreement with the Company , of which60% share rights of Tunghsu (Yingkou) Optoelectronic Display Co., Ltd., were entrusted by the Company, wherethe agreement went into effect as of March 2012. The clients paid the Company 500 thousand RMB ofmanagement fee per year for each subject.
| Name of Clients/Contractee | Name of Trustee/Contractee | Type of Entrusting Asset/Contracting Asset | Starting Date of Entrusting /Contracting | Expiration Date of Entrusting /Contracting | Confirmed Entrusting /Contracting Fee at the Current Period |
| Tunghsu Group, Yingkou Coastal Development Construction Co., Ltd. Minmetals (Yingkou) Industrial Park Development Co., Ltd. | Tunghsu Optoelectronic Technology Co., Ltd. | Tunghsu(Yingkou) Optoelectronic Display Co., Ltd. | January 2012 | Notes 1 | 250,000.00 |
| Total | 250,000.00 |
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. Theoperation trustee fee is basic management fee and incentive management fee, of which the basic management feeis RMB 1 million/year, the incentive management fee is counted by 5% of the after-tax net profit yearly achievedby the trustee companyNote 2:On April 20, 2016, Tunghsu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by general
shareholders’ meeting, amended the Article of Association, thus the stake of Tunghsu (Yingkou) Optoelectronic
Display Co.,Ltd held by Tunghsu Group was changed to 65% from 60%.Note 3:On June 30, 2018, Tunghsu Group Co., Ltd. transferred all 65% of the shares in Tunghsu (Yingkou)Optoelectronic Display Co., Ltd. to Tunghsu Optoelectronic Technology Co., Ltd.Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ 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 thousand
| 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) |
| Guarantee of the Company for the controlling subsidiaries | ||||||||
| Name of the Company | Relevant disclosure | Amount of | Date of happening | Actual mount of | Guarantee type | Guarantee term | Complete implementation | Guarantee for |
| guaranteed | date/No. of the guaranteed amount | guarantee | (Date o signing agreement) | guarantee | or not | associated parties (Yes or no) | ||
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | June 20,2013 | 150,000 | September 25,2014 | 37,000 | The joint liability guaranty | Two years from te date of advance of te loan due date | No | No |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | July 1,2016 | 9,500 | September 7,2017 | 9,500 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | June 19,2013 | 132,000 | November 12,2013 | 83,125 | The joint liability guaranty | 8 years | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | September 27,2013 | 20,000 | April 8,2014 | 20,000 | The joint liability guaranty | 8 years | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | September 27,2013 | 20,000 | May 6,2014 | 20,000 | The joint liability guaranty | 8 years | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | September 27,2013 | 10,000 | December 13,2013 | 8,125 | The joint liability guaranty | 8 years | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | October 31,2016 | 52,300 | November 25,2016 | 52,300 | The joint liability guaranty | 6 years | No | No |
| Fuzhou Tunghsu Optoelectronic Technology Co.,, Ltd. | July 29,2016 | 10,000 | August 16,2016 | 10,000 | The joint liability guaranty | 2 years | No | No |
| Wuhu Tunghsu Optoelectronic | June 15,2018 | 15,000 | June 29,2018 | 15,000 | The joint liability | 7 months | No | No |
| Equipment Technology Co., Ltd. | guaranty | |||||||
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | December 25,2017 | 6,000 | March 1,2018 | 6,000 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | March 26,2018 | 10,000 | March 27,2018 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | March 26,2018 | 10,000 | March 28,2018 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | April 13,2018 | 5,000 | April 24,2018 | 5,000 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | December 25,2017 | 10,500 | May 31,2018 | 10,500 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | December 25,2017 | 5,000 | June 11,2018 | 5,000 | The joint liability guaranty | 1 year | No | No |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd | June 15,2018 | 15,000 | June 26,2018 | 15,000 | The joint liability guaranty | 7 months | No | No |
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | June 12,2018 | 5,000 | June 29,2018 | 5,000 | The joint liability guaranty | 1 year | No | No |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | January 10,2018 | 4,000 | February 9,2018 | 4,000 | The joint liability guaranty | 1 year | No | No |
| Sichuan Xuhong Optoelectronic | January 10,2018 | 4,000 | February 12,2018 | 4,000 | The joint liability | 1 year | No | No |
| Technology Co., Ltd. | guaranty | |||||||
| Suzhou Tengda Optical Technology Co., Ltd. | June 12,2018 | 2,000 | June 28,2018 | 2,000 | The joint liability guaranty | 1 year | No | No |
| Shanghai Sunlong Bus Co., Ltd. | March 26,2018 | 5,000 | March 30,2018 | 5,000 | The joint liability guaranty | 1 year | No | No |
| Shanghai Sunlong Bus Co., Ltd. | March 26,2018 | 3,000 | April 2,2018 | 3,000 | The joint liability guaranty | 1 year | No | No |
| Shanghai Sunlong Bus Co., Ltd. | March 26,2018 | 7,000 | March 27,2018 | 7,000 | The joint liability guaranty | 1 year | No | No |
| Guangxi Sunlong Automobile Manufacturing Co., Ltd. | December 28,2017 | 10,000 | January 12,2018 | 10,000 | The joint liability guaranty | 1 year | No | No |
| Tunghsu（Kunshan）Display Material Co., Ltd. | May 10,2018 | 20,000 | May 14,2018 | 20,000 | The joint liability guaranty | From the effective date of the Guarantee Contract to the date of expiration of the performance period of the Finance Lease Contract (if the date of expiration of the two financial lease contracts is inconsistent, the latter shall be subject to the | No | No |
| latter); | |||||||||
| Total of guarantee for subsidiaries approved in the Period (B1) | 125,950 | Total of actual guarantee for subsidiaries in the Period (B2) | 136,500 | ||||||
| Total of guarantee for subsidiaries approved at Period-end (B3) | 540,300 | Total of actual guarantee for subsidiaries at Period-end (B4) | 376,550 | ||||||
| Guarantee of the subsidiaries for the controlling subsidiaries | |||||||||
| Name of the Company guaranteed | Relevant disclosure date/No. of the guaranteed amount | Amount of guarantee | Date of happening (Date o signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) | |
| Total of Company’s guarantee（namely total of the large three aforementioned） | |||||||||
| Total of guarantee in the Period （A1+B1+C1） | 125,950 | Total of actual guarantee in the Period（A2+B2+C2） | 136,500 | ||||||
| Total of guarantee at Period-end（A3+B3+C3） | 540,300 | Total of actual guarantee at Period-end （A4+B4+C4） | 376,550 | ||||||
| The proportion of the total amount of actually guarantee in the net assets of the company(A4+B4+C4) | 12.06% | ||||||||
| Including ： | |||||||||
| The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly（E） | 63,500 | ||||||||
Description of the guarantee with complex method
（2）Illegal providing of external guarantees□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.3. Other significant contracts
□Applicable √ Not applicable
No such cases in the reporting period.
XV. Social responsibilities
1.Major environmental protectionThe Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
| Company or subsidiary name | Main pollutant and specific pollutant name | Emission way | Emission port number | Emission port distribution condition | Emission concentration (mg/Nm3) | Implemented pollutant emission standards | Total emission | Verified total emission(Tons) | Excessive emission condition |
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | COD | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 25mg/L | Integrated wastewater discharge standard GB8978-1997 | 3.19T/ year | 117.1T/ year | Not exceeded |
| Fuzhou Tunghsu Optoelectronic Technology 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 | 1 6.8m/L | Sewage discharge into urban sewer water quality standard CJ-343-2010 | 0.87T/ year | 15.6T/ year | Not exceeded |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | Nitrogen Oxide | After being processed by the SCR system, it is discharged into the atmosphere through the chimney. | 1 | 60m high chimney in the northwest corner of the plant | 530mg/m3 | Emission Standard for Air Pollutants in Electronic Glass Industry GB29495-2013 | 83.55T/ year | 87.26T/ year | Not exceeded |
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | SO2 | After being processed by the SCR system, it is discharged into the | 1 | 60m high chimney in the northwest corner of the plant | 3.52mg/m3 | Emission Standard for Air Pollutants in Electronic | 0.48T/ year | 8.49T/year | Not exceeded |
| atmosphere through the chimney. | Glass Industry GB29495-2013 | ||||||||
| Shanghai Sunlong Bus Co., Ltd. | COD | After the treatment reaches the standard, enter the urban | 1 | Total discharge of wastewater in the southeast corner of the plant | 182.25mg/L | Sewage discharge into urban sewer water quality standard DB31/445-2009 | Not exceeded | ||
| Shanghai Sunlong Bus Co., Ltd. | TN | After the treatment reaches the standard, enter the urban sewage pipe | 1 | Total discharge of wastewater in the southeast corner of the plant | 12.1125mg/L | Sewage discharge into urban sewer water quality standard DB31/445-2009 | 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 | 80 mg/L | Sewage discharge into urban sewer water quality standard DB31/445-2009 | 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 | 1.5975 mg/L | Sewage discharge into urban sewer water quality standard DB31/445-2009 | 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 | 3.0267 mg/L | Sewage discharge into urban sewer water quality standard DB31/445-2 | Not exceeded |
| 009 | |||||||||
| Shanghai Sunlong Bus Co., Ltd. | VOCs | High-altitude emissions after treatment has reached the standard | 4 | Factory west | 16.20mg/m? | "Automotive Manufacturing (Painting) Air Pollutant Emission Standards" DB32/859-2014 | 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 | 7.6 mg/m? | "Emission Standards for Air Pollutants in Industrial Furnaces" DB31/860-2014 | 0.00136 | 0.02 | 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 | 7.5 mg/m? | "Emission Standards for Air Pollutants in Industrial Furnaces" DB31/860-2014 | 0.636 | 0.84 | Not exceeded |
| Shanghai Sunlong Bus Co., Ltd. | PM | High-altitude emissions after treatment has reached the standard | 18 | South part of the middle of Factory | 3.79mg/m? | "Integrated Emission Standards for Air Pollutants" DB31/933-2015 | 0.881 | 1.04 | Not exceeded |
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.2. Xuhong Optoelectronic operates normally during the whole year and produces main pollution of waste gas. In
2015, it built SCR flue gas denitration system for discharge of smoke discharged outside kiln after treatment ofthe same, for which, the continuous online monitoring system is installed. All production waste gas will bedischarged through 60m chimney after treatment and meeting standards. SCR system operates normally duringthe report period and discharges per standards.3. Sunlong Bus operates normally during the whole year and produces main pollution of waste water, waste gasand hazardous waste. In 2008, for treatment of coating waste water during production, it built the rain and sewagediversion system and industrial waste water treatment station with designed treatment capacity of 10t/h, whichadopts physical + biochemical treatment process. All production waste water will be collected after treatment andmeeting standards and discharged into urban sewage pipeline (in Yuanshan Road) together with sanitary sewageand into Bailong Port system finally. The waste water treatment station operates normally during the report periodand discharges per standards. Waste gas treatment: coating VOCs adopts emission after meeting standardsthrough treatment of zeolite roller+RTO combustion process, low-concentration VOCs discharge bag is equippedwith online monitoring system (FID) for real-time monitoring of the emission value; for pollution including PMand welding fume , etc., the filter filter core drum is adopted for dust removal, after which, the gas will be emittedin the upper air after meeting standards; any facility needing heating during production process adopts the naturalgas burner and the gas will be burned efficiently through ternary internal circulation process to reduce the energyconsumption and pollution emission.
1. Fuzhou Tunghsu optoelectronic implements strictly the environmental influence appraisal system and
“simultaneous design, construction and use” system, whose construction project conforms to laws and
regulations. For the project, the environmental appraisal reply was obtained in September 2016 from SichuanEnvironmental Protection Department.
2. Xuhong Optoelectronic implements strictly the environmental influence appraisal system and “simultaneous
design, construction and use” system, whose construction project conforms to laws and regulations. For the
project, the environmental appraisal reply was obtained in November 2016 from Sichuan EnvironmentalProtection Department and environmental protection acceptance was already qualified.
3.Sunlong Bus implements strictly the environmental influence appraisal system and “simultaneous design,construction and use” system, whose construction project conforms to laws and regulations. In January 2009, the
completion acceptance reply for the project was received from Minhang District Environmental Protection Bureau,Shanghai (MHBGXY[2009] No. 041).1. Fuzhou Tunghsu Optoelectronic entrusts one qualified third party with preparation of Emergency Program forEnvironmental Emergencies of Fuzhou Tunghsu Photoelectricity Technology Co., Ltd. and organizes and
conducts training on such program regularly to improve the company’s capacity to deal with any environmental
pollution emergency practically.
2. Xuhong Optoelectronic entrusts one qualified third party with preparation of Emergency Program forEnvironmental Emergencies of Sichuan Xuhong Optoelectronic Technology Co., Ltd., sets internally full-timeenvironmental-protection managers and equipment operators for implementation of eachenvironmental-protection job and organizes and conducts training on such program regularly to improve the
company’s capacity to deal with any environmental pollution emergency practically.
3.Sunlong Bus entrusts one qualified third party with preparation of Emergency Program for EnvironmentalEmergencies of Shanghai Sunlong Bus Co., Ltd.., sets internally full-time environmental-protection managers andequipment operators for implementation of each environmental-protection job and organizes and conducts training
on such program regularly to improve the company’s capacity to deal with any environmental pollution
emergency practically.
1. Fuzhou Tunghsu Optoelectronic abides by national and local laws, regulations and relevant provisions strictly,and entrust Fujian Tuopu Detection Technology Co., Ltd. to carry out monthly detection of wastewater andquarterly detection of noise of Fuzhou Tunghsu Photoelectricity as required, and log in to the self-monitoringwebsite in time every month to upload data information such as detection results.2. Xuhong Optoelectronic abides by national and local laws, regulations and relevant provisions strictly, andentrusts Sichuan Zhonghuan Environmental Testing Technology Co., Ltd. to carry out quarterly testing of the
company’s exhaust gas as required, and Sichuan Jiente Environmental Protection Equipment Co., Ltd. to carryout operation and maintenance of our company’s flue gas online monitoring equipment, so as to ensure that thecompany’s air pollution data are transmitted to the national environmental protection monitoring platform in real
time.
3. Sunlong Bus abides by national and local laws, regulations and relevant provisions strictly, and entrusts IngelTesting Technology Service (Shanghai) Co., Ltd. to carry out quarterly testing of waste water, waste gas and noiseas required, and regularly log in the environmental protection survey platform and the environmental statisticsbusiness system to upload data such as testing results.
Other environmental information that should be disclosed
| Company Name or Subsidiary Name | Name of major pollutants and characteristic pollutants | Disposal Method | Storage Place | Distruibution of Producing | Carried Standard | Annual Output (tons) | Disposal Quantity | Inentory Quanity |
| Shanghai Sunlong Bus Co., Ltd. | Waste residue, waste thinner | Entrust a qualified third party for disposal | Dangerous waste temporary storage | Painting workshop, assembly shop, commissioning workshop | / | 35.18 | 13.66 | 18.52 |
| Waste adhesive sealant | 11.28 | 6.73 | 3.05 | |||||
| Waste empty barrel | 16.53 | 6.73 | 4.8 |
Notes：This table shows the hazardous wastes status of Sunlong Bus. It’s the amount of hazardous waste generated
in 2017. The annual amount of hazardous waste changes with the change of production capacity. The untreatedinventory is due to the limited annual disposal capacity of the hazardous waste, and it will be disposed in the nextyear if the treatment and dispose is not completed in the current year.Other environmental protection related information
Notes：
1. The Shanghai Municipal Pollutant Discharge Permit obtained by Sunlong Bus does not state the request of thetotal amount of wastewater discharged and the total amount of normative emissions. The emission concentrationin the table is the average value of the quarterly test data.
2. The Shanghai Municipal Pollutant Discharge Permit does not state the requirement of the total amount ofvolatile organic compounds emitted in the exhaust gas and the total normative amount of emissions. The total
amount of SO2 and NOX emissions of Sunlong Bus is calculated based on the total amount of natural gas used andthe combustion emissions coefficient.
2.Overview of the annual targeted poverty alleviation(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On February 2, 2018, Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to FupingCounty, Hebei Province for free in order to realize clean heating in winter. At the same time, it also donated200,000 yuan worth of books. This donation is only the first pilot project, and the scope of donation will beappropriately expanded in the later period according to the operation situation.2. On February 8, 2018, Tunghsu Photoelectricity donated 530 sets of graphene heaters which worth 890,400 yuanand 200,000 yuan worth of books to the central primary school at Gonghui Town, Zhangbei County, HebeiProvince and to center gerocomium at Haojiaying township to help primary school students and widows andorphans live in warm in the winter and do their part in the primary and secondary education.3. On June 19, 2018, Guangxi Sunlong Automobile Manufacturing Co., Ltd., a wholly-owned subsidiary of thecompany, donated 228,500 yuan to Zhongdang village, which lies at Jiafang Township, Mashan County, GuangxiProvince, so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-strickenvillage in Guangxi: reservoir project of drinking water engineering.4. During the reporting period, Shanghai Sunlong, Jiangsu Jixing and Suzhou Tenda, which are the wholly-ownedsubsidiaries of the company, donated 10,000 yuan, 10,000 yuan and 20,000 yuan respectively for povertyalleviation.
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 Shareholders
I.Changes in share capital1. Changes in share capital
In shares
| Before the change | Increase/decrease（+，-） | After the Change | |||||||
| Amount | Proportion | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| 1.Shares with conditional subscription | 1,385,624,525 | 24.18% | 1,385,624,525 | 24.18% | |||||
| 1. State-owned legal person shares | 60,389,095 | 1.05% | 60,389,095 | 1.05% | |||||
| 3.Other domestic shares | 1,325,235,430 | 23.13% | 1,325,235,430 | 23.13% | |||||
| Incl：Domestic legal person shares | 1,323,974,680 | 23.11% | 1,323,974,680 | 23.11% | |||||
| Domestic Natural Person shares | 1,260,750 | 0.02% | 1,260,750 | 0.02% | |||||
| II.Shares with unconditional subscription | 4,344,625,593 | 75.82% | 4,344,625,593 | 75.82% | |||||
| 1.Common shares in RMB | 4,094,625,592 | 71.46% | 4,094,625,592 | 71.46% | |||||
| 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
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 applicableII. Issuing and listing□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
| Total number of common shareholders at the end of the reporting period | 358,541 (including 341,239shareholders holding A shares and 17,302 shareholders holding B shares） | Total number of preferred shareholders that had restored the voting right at the end of the reporting period (if any) (note 8) | 0 | |||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||
| State of share | Amount | |||||||||
| Tunghsu Group | Domestic Non -State-owned legal person | 15.97% | 915,064,091 | 4,088,500 | 791,889,488 | 123,174,603 | Pledge | 799,643,042 | ||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | Domestic Non -State-owned legal person | 5.80% | 332,382,171 | 0 | 0 | 332,382,171 | Pledge | 153,520,000 | ||
| Shanghai Huimao Enterprise Management Co., Ltd. | Domestic Non -State-owned legal person | 4.58% | 262,626,262 | 0 | 262,626,262 | 0 | Pledge | 80,240,722 | ||
| China Fund Management Co., Ltd.－Huaxia Bank－TTCO Trust Co., Ltd.－TTCO Trust Co., Ltd.－Shunjing No.5 Single capital trust | Other | 2.54% | 145,759,116 | 0 | 0 | 145,759,116 | ||
| Minsheng Royal Fund Management Co., Ltd－-Ping An Bank-Daye Trust·Zengli 2 single Fund Trust | Other | 1.70% | 97,192,224 | 0 | 97,192,224 | 0 | ||
| Tunghsu Optoelectronic Technology Co., Ltd.－The first ESOP | Other | 1.27% | 72,639,296 | 0 | 72,639,296 | 0 | ||
| Beixin Ruifeng Fund－China Merchants Bank－Daye Trust－Daye Trust·Profit increase 3 single fund plan | Other | 1.08% | 62,095,032 | 0 | 62,095,032 | 0 | ||
| Shenzhen Taianer Information Technology Co., Ltd. | Domestic Non -State-owned legal person | 1.07% | 61,165,682 | 0 | 0 | 61,165,682 | Pledge | 55,265,682 |
| Wanhe Securities－China Merchants Bank－Wanhe Securities and No.1 Collective asset management plan | Other | 0.96% | 55,246,500 | 0 | 0 | 55,246,500 | ||
| Nuoan Fund-Industrial | Other | 0.96% | 55,246,487 | 0 | 0 | 55,246,487 |
| Securities-Nanjing Shuangan Assets Management Co., Ltd. | |||||
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable)（See Notes 3） | Among the top 10 shareholders, CITIC Fund-Huaxia Bank-Tibet Trust-Tibet Trust-Shunjing No.5 Single Fund Trust, and 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 and Baoshi Group have relationship and constitute persons taking concerted action. The company does not know whether there is relationship between other 8 shareholders or whether they are persons taking concerted action defined in Administrative Measures Relating to Acquisitions of Listed Companies. | ||||
| Shareholding of top 10 shareholders of unrestricted shares | |||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | |||
| Share type | Quantity | ||||
| Shijiazhuang Baoshi Electronic Group Co., Ltd. | 332,382,171 | RMB Common shares | 332,382,171 | ||
| China Fund Management Co., Ltd.－Huaxia Bank－TTCO Trust Co., Ltd.－TTCO Trust Co., Ltd.－Shunjing No.5 Single capital trust | 145,759,116 | RMB Common shares | 145,759,116 | ||
| Tunghsu Group Co., Ltd. | 123,174,603 | RMB Common shares | 123,174,603 | ||
| Shenzhen Taianer Information Technology Co., Ltd. | 61,165,682 | RMB Common shares | 61,165,682 | ||
| Wanhe Securities－China Merchants Bank－Wanhe Securities and No.1 Collective asset management plan | 55,246,500 | RMB Common shares | 55,246,500 | ||
| Nuoan Fund-Industrial | 55,246,487 | RMB Common | 55,246,487 | ||
| Securities-Nanjing Shuangan Assets Management Co., Ltd. | shares | ||
| Zhonghai Trust Co., Ltd.－Zhonghai Trust－Tunghsu Optoelectronic ESOP pooled Fund trust | 52,555,280 | RMB Common shares | 52,555,280 |
| Notional Securities fund－Bohai Bank－Minsheng Trust－China Minsheng Trust·Zhicheng No.192 Tunghsu Optoelectronic Directional additional l fund trust plan | 48,619,336 | RMB Common shares | 48,619,336 |
| Minsheng Royal Fund Management Co., Ltd.-Ping An Bank-Ping An Trust-Ping An Wealth* Huitai No.163 Single Fund Trust | 47,492,649 | RMB Common shares | 47,492,649 |
| China Securities Finance Co., Ltd. | 30,906,112 | RMB Common shares | 30,906,112 |
| 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 | The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co., Ltd. and the top ten shareholders of Tunghsu Group Co., Ltd. have relationship and constitute persons taking concerted action. | ||
| 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 Company
have 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 Executives
I. 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 2017 Annual Report.II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Li Zhaoting | Director, Board Chairman | Dimission | April 25,2018 | Mr. Li Zhaoting is the chairman of Tunghsu Group, in order to focus more on the overall strategic planning of Tunghsu Group and related matters. Job changes. |
| Wu Jiwei | Director, Board Chairman | Appointment | April 25,2018 | New Appointment |
| Wu Jiwei | Director, Board Chairman | Dimission | August 3,2018 | Unable to perform due to health reasons, apply for resignation. |
| Wang Lipeng | Director, Board Chairman, General Manager | Elected | August 3,2018 | The chairman of the board of directors was elected by the eighth board of directors. |
| Huang Jinliang | CFO | Dimission | July 27,2018 | Job Change |
| Feng Qiuju | CFO | Appointment | July 27,2018 | New Appointment |
| Gong Xin | Director, Board secretary | Dimission | August 3,2018 | Resigned as a director in accordance with the company's talent strategy adjustment, and continued to serve as secretary of the board of directors |
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
Yes
1. Basic information of the corporate bonds
| Bond Name | Abbreviated Bond Name | Code | 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 | 95,604.27 | 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 resale option | ||||||
| Information about interest paid and bonds honored during the reporting period | The first period bond interest 60,000,000.00 was paid in full amount on schedule in the current period. | ||||||
| Implementation of relevant special clauses(if applicable) such as option clause for the bond issuer or investors and exchangeable clause | According to the sell back terms set out in the 2015 Corporate Bond Prospectus of Tunghsu Optoelectronic Technology Co., Ltd. announced by Tunghsu Optoelectronic Technology Co., Ltd., the company issued the First Indicative Notice of Tunghsu Optoelectronic Technology Co., Ltd. on the Adjustment of the Nominal Interest Rate of “15 Tunghsu Bonds” and the Implementation Method of Investors’ Sell Back (notice No.: 2018-036) on April 3, 2018, the Second Indicative Notice of Tunghsu Optoelectronic Technology Co., Ltd. on the Adjustment of the Nominal Interest Rate of “15 Tunghsu Bonds” and the Implementation Method of Investors’ Sell Back (notice No.: 2018-037) on April 4, 2018, and the Third Indicative Notice of Tunghsu optoelectronic Technology Co., Ltd. on the Adjustment of the Nominal Interest Rate of “15 Tunghsu Bonds” and the Implementation Method of Investors’ Sell Back (notice No.: 2018 - 038) on April 9, 2018. The sell back price of “15 Tunghsu Bonds” is RMB 100.00 yuan/sheet (excluding interest), the sell back reporting period is from April 3, 2018 to April 9, 2018. The issuer of this corporate bond, i.e. the company, has the right to decide to adjust the coupon rate of the subsequent term at the end of the third year of the current bond’s duration during the duration of the current corporate bond (bond code: 112243, hereinafter referred to as “15 Tunghsu Bonds”). The coupon rate of this bond is 6.00 % in the first three years of the duration. At the end of the third year of the duration of this bond, the company chose to raise the coupon rate, that is, the | ||||||
2.Information about the bond trustee and credit rating agency
coupon rate of this bond will be raised from 6.00 % to 6.80 % in the next two years of the durationof this bond, and will remain unchanged for this two years (from May 19, 2018 to May 18, 2020).Bond trustee:
| 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 | Telephone | 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（Ten thousand） | 0 |
| Operation status of the special account for the raised funds | Normal |
| Whether the use of the raised funds conforming to the purpose, use plan and other provisions specified in the Prospectus | The use of the raised funds conformed to the purpose promised in the Prospectus |
IV. Information about the rating of the corporate bonds
On June 14, 2018, United Ratings Co., Ltd. issued trace rating report LHPZ [2018] No.960 based on the
company’s 2017 Annual Report. This rating result is long-term credit rating AA+ and its outlook is "Steady".
(For details, please refer to the "Tracking Rating Announcement" of the company disclosed on www.cninfo.comcn June 16, 2018)
According to the United Rating Co.,Ltd’s requirements on tacking and rating, a regular rating shall be carried outwithin 2 months after the company’s disclosure of 2017 annual report. Also, the United Rating Co.,Ltd shall carry
out randomly tracking and rating during the duration of the corporate bonds based on relevant information.
V. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repayment
Repayment PlanI. Payment of the interest1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 of
each year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working dayafter the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, theinterest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.2. The payment of the interest of the bonds shall be handled through the bond registration institution and otherrelated institutions. The concrete information of the interest payment will be specified in the Interest PaymentAnnouncement issued on the media designated by CSRC, with in accordance with the relevant state regulations.3. According to relevant national tax laws and regulations, the investor of the corporate bond shall fully bear therelevant tax should be paid.II. The repayment of the principal1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise theputtable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bondsbeing sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall bepostponed to the first working day after the original day, and there is no need to pay interest in the deferredperiod)2. The repayment of the principal of the bonds will be handled through the bond registration institution and otherrelated institutions. The concrete information of repayment of the principal of the bonds will be specified in thePrincipal Repayment Announcement issued on the media designated by CSRC, with in accordance with therelevant state regulations.Safeguard measures for the repaymentI. A designated special department in charge of the repayment workingThe company designated its finance department to take the lead in the coordination work for repayment of thebonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for
the 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 team
for 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 the
Bond-holders, which provided a reasonable institutional arrangement for the timely and full payment to theinterest and the principal of the corporate bonds.III. Making the full use of the bond trusteeAccording to the requirements specified in the Pilot Approach, the company has adopted the institution of bondtrustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement ofBond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders tosupervise the relevant information about the company and take all necessary measures to protect the legitimateinterest of the bond-holders when the interest or principal of the bonds cannot be repaid in time.The company shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management,being cooperative when the bond trustee performance its duties, and regularly submit the report of 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 disclosure
The company shall adhere to the information disclosure principles of authentic, accurate and completed, making
the information of the company’s repaying ability and use of the raised funds to be supervised by the bond trustee
and shareholders, for preventing the risk of repayment. According to the Agreement of Bond 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 liabilities
management, liquidity management, use management of the raised funds, funds management and so forth
according to the company’s debt structure. Also, the company will set up monthly and yearly funds use plan based
on the maturity of repaying the interest and principal, ensuring on-schedule, timely and full-amount preparing of
the funds for repaying every year’s interest or principal of the bonds to adequately protect the investor’s interest.
VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21, 2014 and 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 capital
expenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries andbonuses of the directors and senior management personnel; (4) No transferring of principal responsible personneland so on.VI. Information about the bond-holder meeting during the reporting periodThere was no bond-holder meeting convened in the reporting period.VII. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status, The bond trustee Guangzhou
Securities Co., Ltd. disclosed the Tunghsu Optoelectronic Technology Co., Ltd. on April 27, May 10, and August9, 2018, according to major changes in the chairman of the company and partial bond resale. The company's 2015corporate bond major issues were entrusted with an interim report on management affairs.VIII. The key accounting data and financial indicators of the latest two years to the end of the reportingperiod
Ten thousand
| Items | As at the end of the reporting period | As at the end of last year | YoY+/-（%）he same period |
| Current ratio | 205.16% | 223.59% | -18.43% |
| Debt ratio | 52.04% | 53.11% | -1.07% |
| Quick ratio | 171.37% | 177.08% | -5.71% |
| Reporting period | The same period of last year | At the same time rate of change | |
| EBITDA interest coverage ratio | 3.44 | 2.85 | 20.70% |
| 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 financinginstruments1. Bonds issuing, interest payment and cashing within the report period
Nil2. Unmatured bonds issuing, interest payment and cashing in previous years
(1)As approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635, the companyissued toward the public 1 billion bones on May 19, 2015 , In 2018, the third-phase bond interest was paid RMB60,000,000.00; on May 19, 2018, the resale amount was RMB 43,957,300.00, and the coupon rate was adjustedfrom 6.00% to 6.80%.
（2）The company 8th Board of Directors approved the application to National Association of Financial Market
Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion medium term note on
September 8, 2016. The extraordinary general shareholders’ meeting was convoked on September 26, 2016 and
approved the program concerning the proposed registration and issuance of the medium term note. The mediumterm note in 2016 was 4.7 billion in two periods including the first period with two types of (3+2 years) and 5 yearstotaling up to 3 billion and the second period with two types of (3+2 years) and 5 years totaling up to 1.7 billion,which would both adopt the interest payment per year, principal repayment upon expiration and the interest paymenttogether with the principal cashing for the last period. The interest payment period has not expires within the reportperiod and the interest accrued was RMB147,856,644.84 .
XI.Information about the bank credit obtaining and use, as well as repayment of the bank loans during thereporting period
The balance of the total amount of the short-term and long-term loans is RMB 13,934,712,962.15, decreasedRMB1,184,082,357.41compared with the end of year 2017, which mainly because of the need of the production andoperation and the construction of projects. The company strictly conformed to requests of bank loans to use thefunds and fully repaid the interest and principal to the bank in time.XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of theissuance of the bonds during the reporting periodDuring the reporting period, the company had been strictly conforming to the stipulations specified in theProspectus of the issuance of the bonds to use the raised funds, and the company had fulfilled the commitments ofnot using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiariesengaged in real estate business.XIII.Major events occurred during the reporting periodThe bond trustee Guangzhou Securities Co., Ltd. disclosed the Tunghsu Optoelectronic Technology Co., Ltd. onApril 27, May 10, and August 9, 2018, according to major changes in the chairman of the company and partialbond resale. The company's 2015 corporate bond major issues were entrusted with an interim report onmanagement affairs.XIV. Whether the corporate bonds have a guarantor
□ Yes √No
X. Financial Report
I. 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:RMB1.Consolidated Balance sheetPrepared by: Tunghsu Optoelectronic Technology Co., Ltd.
June 30,2018
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 23,794,597,055.80 | 27,456,759,768.86 |
| Settlement provision | ||
| Outgoing call loan | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 775,388,432.95 | 538,128,584.84 |
| Account receivable | 9,937,647,168.77 | 7,873,419,684.42 |
| Prepayments | 1,531,060,694.47 | 2,021,119,950.95 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Interest receivable | 29,306,335.47 | 49,456,785.29 |
| Dividend receivable | ||
| Other account receivable | 1,349,893,792.08 | 1,044,890,336.32 |
| Repurchasing of financial assets |
| Inventories | 4,210,883,497.85 | 4,914,482,277.21 |
| Assets held for sales | 126,264,435.58 | 213,034,435.58 |
| Non-current asset due in 1 year | ||
| Other current asset | 1,207,390,102.41 | 2,559,947,333.75 |
| Total of current assets | 42,962,431,515.38 | 46,671,239,157.22 |
| Non-current assets： | ||
| Loans and payment on other’s behalf disbursed | ||
| Disposable financial asset | 243,158,605.30 | 100,000,056.00 |
| Expired investment in possess | ||
| Long-term receivable | 138,899,570.70 | 143,988,866.91 |
| Long term share equity investment | 2,142,476,783.38 | 2,130,640,158.90 |
| Property investment | 66,930,130.01 | 58,229,439.86 |
| Fixed assets | 10,938,598,162.98 | 11,378,564,235.15 |
| Construction in progress | 5,387,496,213.47 | 3,663,486,639.90 |
| Engineering material | ||
| Fixed asset pending for disposal | ||
| Productive biological assets | ||
| Gas & petrol | ||
| Intangible assets | 1,149,208,605.35 | 1,001,796,110.02 |
| R & D petrol | 23,318,709.50 | 15,397,704.97 |
| Goodwill | 2,840,823,542.00 | 2,587,678,140.99 |
| Long-germ expenses to be amortized | 15,312,986.85 | 26,538,304.02 |
| Differed income tax asset | 503,169,733.61 | 526,817,792.76 |
| Other non-current asset | 282,006,939.10 | 306,402,939.48 |
| Total of non-current assets | 23,731,399,982.25 | 21,939,540,388.96 |
| Total of assets | 66,693,831,497.63 | 68,610,779,546.18 |
| Current liabilities | ||
| Short-term loans | 6,812,784,698.87 | 5,712,826,382.20 |
| Loan from Central Bank | ||
| Deposit received and hold for others | ||
| Call loan received | ||
| Financial liabilities measured at fair value with variations accounted into current income account |
| Derivative financial liabilities | ||
| Notes payable | 999,267,096.40 | 1,063,897,679.89 |
| Account payable | 4,690,738,505.02 | 4,636,989,039.65 |
| Advance payment | 976,357,517.81 | 1,655,137,563.63 |
| Selling of repurchased financial assets | ||
| Fees and commissions receivable | ||
| Employees’ wage payable | 162,528,069.08 | 207,697,362.25 |
| Tax payable | 454,014,088.92 | 294,979,419.96 |
| Interest payable | 196,787,018.42 | 107,195,147.20 |
| Dividend payable | 313,488,825.93 | 35,000,000.00 |
| Other account payable | 1,801,519,889.12 | 1,887,520,891.88 |
| Reinsurance fee payable | ||
| Insurance contract provision | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 4,373,736,193.82 | 5,045,608,756.45 |
| Other current liability | 159,985,427.25 | 227,155,178.97 |
| Total of current liability | 20,941,207,330.64 | 20,874,007,422.08 |
| Non-current liabilities： | ||
| Long-term loan | 3,823,532,289.32 | 5,209,726,250.77 |
| Bond payable | 5,625,817,373.23 | 5,665,126,090.52 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | 2,976,840,728.76 | 3,276,308,254.44 |
| Long-term payable employees’s remuneration | ||
| Special payable | ||
| Expected liabilities | 113,262,230.99 | 156,421,713.31 |
| Deferred income | 555,127,835.23 | 592,290,617.42 |
| Differed income tax liability | 62,295,616.96 | 60,149,328.74 |
| Other non-current liabilities | 608,000,000.00 | 608,000,000.00 |
| Total non-current liabilities | 13,764,876,074.49 | 15,568,022,255.20 |
| Total of liability | 34,706,083,405.13 | 36,442,029,677.28 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instruments | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 21,793,727,706.54 | 21,987,405,220.42 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | 3,233.93 | -4,518.45 |
| Special reserves | 1,990,473.67 | 1,983,921.21 |
| Surplus reserves | 224,133,824.86 | 224,133,824.86 |
| Common risk provision | ||
| Undistributed profit | 3,467,550,877.18 | 3,010,372,296.37 |
| Total of owner’s equity belong to the parent company | 31,213,233,914.18 | 30,949,718,542.41 |
| Minority shareholders’ equity | 774,514,178.32 | 1,219,031,326.49 |
| Total of owners’ equity | 31,987,748,092.50 | 32,168,749,868.90 |
| Total of liabilities and owners’ equity | 66,693,831,497.63 | 68,610,779,546.18 |
Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
| Items | Year-end balance | Year-beginning balance |
| Current asset： | ||
| Cash and bank balances | 7,180,172,168.51 | 11,224,359,236.39 |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 1,250,000.00 | 200,000.00 |
| Account receivable | 23,732,862.59 | 23,837,262.59 |
| Prepayments | 7,684,221.64 | 16,902,375.19 |
| Interest receivable | 8,763,055.45 | 41,868,921.15 |
| Dividend receivable | 665,000,000.00 | |
| Other account receivable | 7,276,060,704.75 | 4,790,712,672.70 |
| Inventories | 499,916,720.50 | 509,283,364.38 |
| Assets held for sales | ||
| Non-current asset due in 1 year | ||
| Other current asset | 148,973.38 | 1,220,148,973.38 |
| Total of current assets | 14,997,728,706.82 | 18,492,312,805.78 |
| Non-current assets： | ||
| Disposable financial asset | 129,500,056.00 | 100,000,056.00 |
| Expired investment in possess | ||
| Long-term receivable | ||
| Long term share equity investment | 25,058,355,620.34 | 23,020,364,897.17 |
| Property investment | ||
| Fixed assets | 42,430,964.28 | 44,669,881.93 |
| Construction in progress | ||
| Engineering material | ||
| Fixed asset disposal | ||
| Production physical assets | ||
| Gas & petrol | ||
| Intangible assets | 9,513,240.92 | 9,687,094.58 |
| R & D petrol | ||
| Goodwill | ||
| Long-germ expenses to be amortized | ||
| Differed income tax asset | 59,375,663.74 | 58,105,970.47 |
| Other non-current asset | 1,381,400.00 | 1,381,400.00 |
| Total of non-current assets | 25,300,556,945.28 | 23,234,209,300.15 |
| Total of assets | 40,298,285,652.10 | 41,726,522,105.93 |
| Current liabilities | ||
| Short-term loans | 2,640,000,000.00 | 2,760,000,000.00 |
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 11,734,918.78 | 15,219,920.86 |
| Advance payment | 421,587.90 | 421,587.90 |
| Employees’ wage payable | 2,841,705.33 | 4,061,413.48 |
| Tax payable | 28,982,766.19 | 28,150,779.48 |
| Interest payable | 164,902,902.61 | 79,827,566.10 |
| Dividend payable | 313,488,825.93 | |
| Other account payable | 983,980,211.32 | 423,790,359.27 |
| Liabilities held for sales | ||
| Non-current liability due in 1 year | 2,138,316,666.62 | 2,769,233,333.30 |
| Other current liability | ||
| Total of current liability | 6,284,669,584.68 | 6,080,704,960.39 |
| Non-current liabilities： | ||
| Long-term loan | 611,000,000.00 | 1,512,500,000.00 |
| Bond payable | 5,625,817,373.23 | 5,665,126,090.52 |
| Including：preferred stock | ||
| Sustainable debt | ||
| Long-term payable | ||
| Employees’ wage payable | ||
| Special payable | ||
| Expected liabilities | ||
| Differed income | ||
| Differed income tax liability | ||
| Other non-current liabilities | ||
| Total of Non-current liabilities | 6,236,817,373.23 | 7,177,626,090.52 |
| Total of liability | 12,521,486,957.91 | 13,258,331,050.91 |
| Owners’ equity | ||
| Share capital | 5,730,250,118.00 | 5,730,250,118.00 |
| Other equity instrument | ||
| Including：preferred stock | ||
| Sustainable debt | ||
| Capital reserves | 21,833,675,749.27 | 21,861,207,672.90 |
| Less：Shares in stock | 4,422,320.00 | 4,422,320.00 |
| Other comprehensive income | ||
| Special reserves | ||
| Surplus reserves | 205,144,600.53 | 205,144,600.53 |
| Undistributed profit | 12,150,546.39 | 676,010,983.59 |
| Total of owners’ equity | 27,776,798,694.19 | 28,468,191,055.02 |
| Total of liabilities and owners’ equity | 40,298,285,652.10 | 41,726,522,105.93 |
3.Consolidated income statement
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 11,129,851,790.88 | 4,876,438,604.10 |
| Incl：Business income | 11,129,851,790.88 | 4,876,438,604.10 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| II. Total business cost | 10,088,242,118.58 | 4,162,420,389.45 |
| Incl：Business cost | 9,021,989,897.09 | 3,473,962,810.22 |
| 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 | 186,096,120.70 | 48,928,687.73 |
| Sales expense | 93,892,692.42 | 42,456,252.57 |
| Administrative expense | 389,977,702.76 | 229,378,673.33 |
| Financial expenses | 395,227,116.30 | 368,191,927.63 |
| Asset impairment loss | 1,058,589.31 | -497,962.03 |
| Add：Gains from change of fir value （“-”for loss） | ||
| Investment gain（“-”for loss） | 23,706,518.19 | 6,676,924.21 |
| Incl: investment gains from affiliates | 11,836,624.48 | -15,506,492.83 |
| Gains from currency exchange（“-”for loss） | ||
| Assets disposal income | -664,826.45 | |
| Other income | 108,362,056.52 | 86,680,000.00 |
| III. Operational profit（“-”for loss） | 1,173,013,420.56 | 807,375,138.86 |
| Add ：Non-operational income | 5,945,896.93 | 70,508,514.69 |
| Less：Non business expenses | 2,767,812.01 | 602,497.65 |
| IV.Total profit(“-”for loss) | 1,176,191,505.48 | 877,281,155.90 |
| Less：Income tax expenses | 282,130,776.24 | 191,513,884.53 |
| V. Net profit | 894,060,729.24 | 685,767,271.37 |
| 1.Net continuing operating profit | 894,060,729.24 | 685,767,271.37 |
| 2.Termination of operating net profit | ||
| Net profit attributable to the owners of parent company | 858,296,089.08 | 637,480,381.47 |
| Minority shareholders’ equity | 35,764,640.16 | 48,286,889.90 |
| VI. Other comprehensive income | 14,095.23 | -1,368.93 |
| Net of profit of other comprehensive income attributable to owners of the parent company. | 7,752.38 | -1,368.93 |
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II） Other comprehensive income that will be reclassified into profit or loss. | 7,752.38 | -1,368.93 |
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency fina | 7,752.38 | -1,368.93 |
| ncial statements | ||
| 6.Other | ||
| Net of profit of other comprehensive income attributable to Minority shareholders’ equity | 6,342.85 | |
| VII. Total comprehensive income | 894,074,824.47 | 685,765,902.44 |
| Total comprehensive income attributable to the owner of the parent company | 858,303,841.46 | 637,479,012.54 |
| Total comprehensive income attributable minority shareholders | 35,770,983.01 | 48,286,889.90 |
| VIII. Earnings per share | ||
| （I）Basic earnings per share | 0.15 | 0.13 |
| (II)Diluted earnings per share | 0.15 | 0.13 |
The current business combination under common control, the net profits of the combined party before achieved net profit of RMB-9,555,668.76, last period the combined party realized RMB-5,213,532.93.
Legal representative ：Wang LipengPerson-in-charge of the accounting work：Feng QiujuPerson-in -charge of the accounting organ：Gao Feipeng
4. Income statement of the Parent Company
In RMB
| Items | Report period | Same period of the previous year |
| I. Income from the key business | 55,315,982.40 | 38,597,681.18 |
| Incl：Business cost | 38,492,540.23 | 28,092,263.28 |
| Business tax and surcharge | 2,172,697.75 | 3,585,313.26 |
| Sales expense | ||
| Administrative expense | 24,293,737.94 | 22,819,056.56 |
| Financial expenses | 251,600,276.69 | 251,791,850.48 |
| Asset impairment loss | 7,901,312.69 | -279,738.15 |
| Add：Gains from change of fir value （“-”for loss） |
| Investment gain（“-”for loss） | 5,131,289.44 | 6,675,734.01 |
| Incl: investment gains from affiliates | 11,835,887.67 | -15,507,683.03 |
| Assets disposal income | ||
| Other income | ||
| II. Operational profit（“-”for loss） | -264,013,293.46 | -260,735,330.24 |
| Add ：Non-operational income | 671.41 | 6,388.00 |
| Less：Non business expenses | 0.15 | |
| III.Total profit(“-”for loss) | -264,012,622.20 | -260,728,942.24 |
| Less：Income tax expenses | -1,269,693.27 | 3,374,750.50 |
| IV. Net profit（“-”for net loss） | -262,742,928.93 | -264,103,692.74 |
| 1.Net continuing operating profit | -262,742,928.93 | -264,103,692.74 |
| 2.Termination of operating net profit | ||
| V.Net of profit of other comprehensive income | ||
| （I）Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period | ||
| 1.Re-measurement of defined benefit plans of changes in net debt or net assets | ||
| 2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss. | ||
| （II）Other comprehensive income that will be reclassified into profit or loss. | ||
| 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. | ||
| 2.Gains and losses from changes in fair value available for sale financial assets | ||
| 3.Held-to-maturity investments reclassified to gains and losses of available for s |
| ale financial assets | ||
| 4.The effective portion of cash flow hedges and losses | ||
| 5.Translation differences in currency financial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | -262,742,928.93 | -264,103,692.74 |
| 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 | 9,938,756,230.71 | 5,146,821,885.37 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Net increase of trade financial asset disposal | ||
| Cash received as interest, processing fee and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business |
| Tax returned | 89,994,925.74 | 171,066,018.68 |
| Other cash received from business operation | 730,551,299.36 | 203,747,413.68 |
| Sub-total of cash inflow | 10,759,302,455.81 | 5,521,635,317.73 |
| Cash paid for purchasing of merchandise and services | 8,162,424,567.65 | 5,213,805,385.34 |
| Net increase of client trade and advance | ||
| Net increase of savings n central bank and brother company | ||
| Cash paid for original contract claim | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to staffs or paid for staffs | 608,921,172.96 | 277,912,435.10 |
| Taxes paid | 568,158,273.01 | 544,190,992.27 |
| Other cash paid for business activities | 1,336,181,154.53 | 850,676,318.80 |
| Sub-total of cash outflow from business activities | 10,675,685,168.15 | 6,886,585,131.51 |
| Cash flow generated by business operation, net | 83,617,287.66 | -1,364,949,813.78 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | 1,251,030,000.00 | 5,399,999,000.00 |
| Cash received as investment gains | 13,923,452.07 | 22,183,417.04 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 1,339,040.00 | |
| Net cash received from disposal of subsidiaries or other operational units | 393,727,652.59 | |
| Other investment-related cash received | 200,000,000.00 | 190,962.49 |
| Sub-total of cash inflow due to investment activities | 1,860,020,144.66 | 5,422,373,379.53 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 2,686,335,621.99 | 1,082,436,888.19 |
| Cash paid as investment | 408,243,324.50 | 5,375,599,000.00 |
| Net increase of loan against pledge |
| Net cash received from subsidiaries and other operational units | 107,762,094.14 | 2,886,994.56 |
| Other cash paid for investment activities | 318,237,076.99 | 50,000,000.00 |
| Sub-total of cash outflow due to investment activities | 3,520,578,117.62 | 6,510,922,882.75 |
| Net cash flow generated by investment | -1,660,557,972.96 | -1,088,549,503.22 |
| III.Cash flow generated by financing | ||
| Cash received as investment | 4,169,500.00 | 185,130,000.00 |
| Incl: Cash received as investment from minor shareholders | 4,169,500.00 | 185,130,000.00 |
| Cash received as loans | 3,146,840,211.91 | 3,307,676,666.66 |
| Cash received from bond placing | ||
| Other financing –related ash received | 565,785,278.10 | 461,896,848.85 |
| Sub-total of cash inflow from financing activities | 3,716,794,990.01 | 3,954,703,515.51 |
| Cash to repay debts | 4,528,169,601.04 | 3,299,247,331.44 |
| Cash paid as dividend, profit, or interests | 640,756,867.95 | 785,097,280.87 |
| Incl: Dividend and profit paid by subsidiaries to minor shareholders | 30,000,000.00 | |
| Other cash paid for financing activities | 640,002,625.89 | 499,724,825.13 |
| Sub-total of cash outflow due to financing activities | 5,808,929,094.88 | 4,584,069,437.44 |
| Net cash flow generated by financing | -2,092,134,104.87 | -629,365,921.93 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | -2,652,600.61 | 8,711,680.32 |
| V.Net increase of cash and cash equivalents | -3,671,727,390.78 | -3,074,153,558.61 |
| Add: balance of cash and cash equivalents at the beginning of term | 25,114,660,756.25 | 25,537,802,101.80 |
| VI ..Balance of cash and cash equivalents at the end of term | 21,442,933,365.47 | 22,463,648,543.19 |
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 | 63,990,000.00 | 51,105,726.47 |
| Tax returned | 13,719.30 | |
| Other cash received from business operation | 330,847,011.69 | 4,513,958,096.78 |
| Sub-total of cash inflow | 394,850,730.99 | 4,565,063,823.25 |
| Cash paid for purchasing of merchandise and services | 33,858,206.35 | 172,870,594.52 |
| Cash paid to staffs or paid for staffs | 16,144,890.38 | 5,039,091.78 |
| Taxes paid | 3,755,213.45 | 8,445,826.76 |
| Other cash paid for business activities | 217,407,719.04 | 7,197,399,250.81 |
| Sub-total of cash outflow from business activities | 271,166,029.22 | 7,383,754,763.87 |
| Cash flow generated by business operation, net | 123,684,701.77 | -2,818,690,940.62 |
| II.Cash flow generated by investing | ||
| Cash received from investment retrieving | 1,770,000,000.00 | 5,399,999,000.00 |
| Cash received as investment gains | 678,923,452.07 | 592,183,417.04 |
| 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 | 5,992,182,417.04 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | ||
| Cash paid as investment | 2,617,565,500.00 | 9,117,899,000.00 |
| Net cash received from subsidiaries and other operational units | ||
| Other cash paid for investment activities | 12,759,192,480.99 | 170,000,000.00 |
| Sub-total of cash outflow due to | 15,376,757,980.99 | 9,287,899,000.00 |
| investment activities | ||
| Net cash flow generated by investment | -12,927,834,528.92 | -3,295,716,582.96 |
| III.Cash flow generated by financing | ||
| Cash received as investment | ||
| Cash received as loans | 580,000,000.00 | 2,016,666,666.66 |
| Cash received from bond placing | ||
| Other financing –related ash received | 10,804,871,140.21 | 108,271,893.76 |
| Sub-total of cash inflow from financing activities | 11,384,871,140.21 | 2,124,938,560.42 |
| Cash to repay debts | 2,276,373,966.68 | 1,576,266,666.68 |
| Cash paid as dividend, profit, or interests | 348,534,414.26 | 552,539,171.23 |
| Other cash paid for financing activities | 28,679,113.18 | |
| Sub-total of cash outflow due to financing activities | 2,624,908,380.94 | 2,157,484,951.09 |
| Net cash flow generated by financing | 8,759,962,759.27 | -32,546,390.67 |
| IV. Influence of exchange rate alternation on cash and cash equivalents | 433,490.32 | |
| V.Net increase of cash and cash equivalents | -4,044,187,067.88 | -6,146,520,423.93 |
| Add: balance of cash and cash equivalents at the beginning of term | 11,224,359,236.39 | 16,951,756,537.76 |
| VI ..Balance of cash and cash equivalents at the end of term | 7,180,172,168.51 | 10,805,236,113.83 |
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
| Items | Amount in this period | ||||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Specialized reserve | Surplus reserves | Common risk provision | Retained profits | |||||
| preferred stock | Sustainable debt | Other | |||||||||||
| I.Balance at the end of last 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 | 1,219,031,326.49 | 32,168,749,868.90 | ||||
| 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 | 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 | -444,517,148.17 | -181,001,776.40 | |||||||
| （1）Total comprehensive income | 7,752.38 | 858,296,089.08 | 35,764,640.16 | 894,068,481.62 | |||||||||
| （II）Investment or decreasing of capital by owners | -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 | |||||||||||
| （III）Profit allotment | -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 | |||||||||||
| 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. Other | |||||||||||||
| (V). Special reserves | 6,552.46 | 6,552.46 | |||||||||||
| 1. Provided this year | 6,552.46 | 6,552.46 | |||||||||||
| 2．Used this term | |||||||||||||
| （VI）Other | -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 | 774,514,178.32 | 31,987,748,092.50 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||
| Owner’s equity Attributable to the Parent Company | Minor shareholders’ | Total of owner | |||||||||
| Share Capita | Other Equity instrument | Capital reserves | Less: Shares | Other Compre | Specialized | Surplus reserves | Common risk | Retained profits | |||
| l | preferred stock | Sustainable debt | Other | in stock | hensive Income | reserve | provision | equity | s’ equity | ||||
| I.Balance at the end of last year | 4,939,928,983.00 | 16, 338,960,810.89 | 4,422,320.00 | 188,044,070.48 | 1,823,695,278.31 | 1,093,061,728.31 | 24,379,268,550.99 | ||||||
| Add: Change of accounting policy | |||||||||||||
| Correcting of previous errors | |||||||||||||
| Merger of entities under common control | 195,000,000.00 | -157,612,768.10 | 89,140,997.13 | 126,528,229.03 | |||||||||
| Other | |||||||||||||
| II.Balance at the beginning of current year | 4,939,928,983.00 | 16,533,960,810.89 | 4,422,320.00 | 188,044,070.48 | 1,666,082,510.21 | 1,182,202,725.44 | 24,505,796,780.02 | ||||||
| III.Changed in the current year | 790,321,135.00 | 5,453,444,409.53 | -4,518.45 | 1,983,921.21 | 36,089,754.38 | 1,344,289,786.16 | 36,828,601.05 | 7,662,953,088.88 | |||||
| （1）Total comprehensive income | -4,518.45 | 1,733,201,682.30 | 190,638,919.68 | 1,923,836,083.53 | |||||||||
| （II）Investment or decreasing of capital by owners | 790,321,135.00 | 6,690,326,329.82 | 382,886,041.50 | 7,863,533,506.32 | |||||||||
| 1．Ordinary Shares invested by shareholders | 790,321,135.00 | 6,728,522,710.65 | 382,886,041.50 | 7,901,729,887.15 | |||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||||
| 3．Allotment to the owners (or shareholders) | |||||||||||||
| 4．Other | -38,196,380.83 | -38,196,380.83 | |||||||||||
| (IV) Internal | 36,089, | -388,91 | -35,000 | -387,82 |
| transferring of owners’ equity | 754.38 | 1,896.14 | ,000.00 | 2,141.76 | |||||||||
| 1. Capitalizing of capital reserves (or to capital shares) | 36,089,754.38 | -36,089,754.38 | |||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||||
| 3．Making up losses by surplus reserves. | -352,822,141.76 | -35,000,000.00 | -387,822,141.76 | ||||||||||
| 4. Other | |||||||||||||
| (VI )Special reserves | |||||||||||||
| 1. Provided this year | |||||||||||||
| 2．Used this term | |||||||||||||
| （VII）Other | |||||||||||||
| IV. Balance at the end of this term | |||||||||||||
| (V) Special reserves | 1,983,921.21 | 1,906,120.38 | 3,890,041.59 | ||||||||||
| 1. Provided this year | 38,971,707.64 | 1,906,120.38 | 40,877,828.02 | ||||||||||
| 2．Used this term | -36,987,786.43 | -36,987,786.43 | |||||||||||
| （VI）Other | -1,236,881,920.29 | -503,602,480.51 | -1,740,484,400.80 | ||||||||||
| IV. Balance at the end of this term | 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 | 1,219,031,326.49 | 32,168,749,868.90 |
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
| Items | Amount in this period |
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Surplus reserves | Common risk provision | Retained profits | 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. 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 |
Amount in last year
In RMB
| Items | Amount in last year | ||||||||||
| Share Capital | Other Equity instrument | Capital reserves | Less: Shares in stock | Other Comprehensive Income | Surplus reserves | Common risk provision | Retained profits | Total of owners’ equity | |||
| preferred stock | Sustainable debt | Other | |||||||||
| I.Balance at the end of last year | 4,939,928,983.00 | 15,130,191,736.27 | 4,422,320.00 | 169,054,846.15 | 696,998,223.03 | 20,931,751,468.45 | |||||
| Add: Change of | |||||||||||
| accounting policy | |||||||||||
| Correcting of previous errors | |||||||||||
| Other | |||||||||||
| II.Balance at the beginning of current year | 4,939,928,983.00 | 15,130,191,736.27 | 4,422,320.00 | 169,054,846.15 | 696,998,223.03 | 20,931,751,468.45 | |||||
| III.Changed in the current year | 790,321,135.00 | 6,731,015,936.63 | 36,089,754.38 | -20,987,239.44 | 7,536,439,586.57 | ||||||
| （I）Total comprehensive income | 360,897,543.75 | 360,897,543.75 | |||||||||
| (II) Investment or decreasing of capital by owners | 790,321,135.00 | 6,731,015,936.63 | 7,521,337,071.63 | ||||||||
| 1．Ordinary Shares invested by shareholders | 790,321,135.00 | 6,728,522,710.65 | 7,518,843,845.65 | ||||||||
| 2．Holders of other equity instruments invested capital | |||||||||||
| 3.Amount of shares paid and accounted as owners’ equity | |||||||||||
| 4．Other | 2,493,225.98 | 2,493,225.98 | |||||||||
| （III）Profit allotment | 36,089,754.38 | -381,884,783.19 | -345,795,028.81 | ||||||||
| 1.Providing of surplus reserves | 36,089,754.38 | -36,089,754.38 | |||||||||
| 2．Allotment to the owners (or shareholders) | -345,795,028.81 | -345,795,028.81 | |||||||||
| 3．Other | |||||||||||
| (IV)Internal transferring of owners’ equity |
| 1. Capitalizing of capital reserves (or to capital shares) | |||||||||||
| 2. Capitalizing of surplus reserves (or to capital shares) | |||||||||||
| 3．Making up losses by surplus reserves. | |||||||||||
| 4. Other | |||||||||||
| (V) Special reserves | |||||||||||
| 1. Provided this year | |||||||||||
| 2．Used this term | |||||||||||
| （VI）Other | |||||||||||
| IV. Balance at the end of this term | 5,730,250,118.00 | 21,861,207,672.90 | 4,422,320.00 | 205,144,600.53 | 676,010,983.59 | 28,468,191,055.02 |
III. Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Tunghsu
Optoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company” or “Tunghsu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stocklimited company jointly established by Shijiazhuang Kinescope General Factory (transformed into ShijiazhuangBaoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua HebeiImport and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par valueof each share is RMB 10) and total share capital of RMB 256.80 million.On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stockequity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the totalnumber of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.Approved by Securities Commission under State Council with the Approval of Issue of 100 Million DomesticallyListed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (Bshares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with theApproval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (ZhengJian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 millionshares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Companyincreased to RMB 383 million.According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen Jian
Xu 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 RMB2709million 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 has
implemented 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 released
outside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, thecompany shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, andthe share capital is RMB2,662,080,001.00 after changed.Referring to the resolutions determined on the 27
th
Meeting of the 7
th
Board of Directors of the company, the 31
st
Meeting of the 7
th
Board of Directors, the 1
st
General Meeting of Extraordinary Shareholders in 2015, the 38
th
Meeting of the 7
th
Board of Directors and the Regulatory Approval No. [2015] 2270 by China 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
th
Board of Directors of the company convened on October 29, 2015, the companyplans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equityincentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financialleasing are considered as operating leasing
According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to TunghsuOptoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved
in the 7th board of the forty-eight meeting and the first extraordinary shareholders' general meeting，it is approved
that the company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issuedstocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, andthe modified equity capital is 4,939,928,983.00 yuan.
According to the company's eleventh meeting of the eighth Board of Directors held on March 20, 2017, the
eighteenth meeting of the eighth Board of Directors held on June 9, 2017, the fourth temporary shareholders’general meeting of 2017 held on June 26, 2017 and the Approval on Tunghsu Optoelectronic Technology Co.,Ltd’s Share Issuance to Objects Including Shanghai Huimao Enterprise Management Co., Ltd for Asset
Purchase and Raising Matching Funds by CSRC (Zhen Jian Xu Ke [2017] No. 1841 Doc), approved that 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 matching
funds by the company’s non-public share issuance. The Company actually issued 385,353,534.00 shares for
purchasing the assets, The issue price per share is 9.90 yuan; and issued 404,967,601.00 shares for raising thematching funds, The issue price per share is 9.26 yuan;thus the capital stock after the change became RMB5,730,250,118.00.As of June 30, 2018, Registered capital : RMB 5,730,250,118.00, Legal representative: Wang Lipeng,Enterprise unified social credit code: 911301001043959836, Registered Address: No.9, Huanghe Road,Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
Tunghsu Optoelectronic Parent Company is the Tunghsu Group，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 46th meeting of the 8th Board ofDirectors on August 30, 2018.
The company's business scope: investing in the project investments with its own funds; research anddevelopment of machinery equipment and electronic products; manufacturing and production-processdevelopment of various non-standard equipments and components; processing and sales of electronic products forgrinding machine (excluding public safety equipment and devices); self operated and agent import and exportbusiness of various commodities and technologies; computer system integration, software development, technicalconsulting; installation of electrical and mechanical equipment (not including pre-licensing ones), engineeringadvice. (All of the above scope, excluded those prohibited or restricted by laws, regulations and State Councildecisions; matters needing approval by other departments can be operated after the approval).
In the reporting period, 19 subsidiaries and 86 sub-subsidiaries were included in the consolidation scope by
the company, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the
company increased by 24 ,decreased by 2 and a net increased by 22 companies year on year at this reporting
period, see details at Note 8“Change of
IV.Basis for the preparation of financial statements1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the actual
transactions and items,，the Company prepared financial statements in accordance with the ASBE-Basic Standard
and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting
Standards 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 in
2014) by China Securities Regulatory Commission.In accordance with Accounting Standards for Business Enterprises, the Company has adopted the accrual basis ofaccounting. Except for certain financial instruments, the Company adopts the historical cost as the principle ofmeasurement in the financial statements. The valuation will be made according to the lower one between theamount of on-sales non-current assets after fair value deducts the predicted costs and the original book valuewhich conforms to the condition of being on-sales. When assets are impaired, provisions for asset impairment aremade in accordance with relevant requirements.2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period,
and hasn’t the major issues impacting on the sustainable operation ability.
V. The company's major accounting policies, accounting estimates and prior errorsImportant prompt:
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 June
30,2018 , operational results, cash flow, and other relevant information of January –June 2018.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year.
3. The operating cycleThe normal business cycle refers to the period starting from assets purchased for processing to cash or cash
equivalents converted. The Company uses a 12-month operating cycle as liquidity classification criteria for itsassets and liabilities.
4. Currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatments for a business combinations under common control and under non common controlThe term "business combination" refers to a transaction or event combining two or more separate enterprises into
one reporting entity. Business combinations are classified into business combinations involving enterprises undercommon control and business combinations not involving enterprises under common control.
(1) A business combination involving enterprises under common controlA business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination,and that control is not transitory. For the business combination involving enterprises under common control, 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 control
A 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 12
months subsequent to acquisition date, then the goodwill will be adjusted accordingly. The acquiree’s identifiable
assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet therecognition criteria are measured at fair value at the acquisition date. Where the cost of combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is treated as an asset 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 for
the current period.The deductible temporary difference from the acquiree not recognized as deferred tax assets on the acquisition
date, will be recognized as deferred tax assets, if in 12 months subsequent to acquisition date, there is newinformation indicating that relative situation exists and the economic benefit associated with the deductibletemporary difference will flow to the Company, the goodwill will be reduced accordingly. If the goodwill is lessthan the deductible temporary difference, the difference will be charged into profit or loss in current period.
For a business combination involving enterprise not under common control and achieved in stages, it should make
judgement on whether those transactions are regard as “Package deal” based on “No. 5 Notice on Explanation on
Accounting Standards for Business Enterprises by the Ministry of Finance" (CAIKUAI [2012] No.19) and Article51 of "Accounting Standards for Business Enterprises No. 33: Consolidated Financial Statement". If it is regarded
as “package deal”, the accounting treatment refers to above-mentioned principle and “Long-term equityinvestment” in Note III, 14; If it is not regarded as “package deal”, the accounting treatment should be different
for individual and consolidated financial statements.In individual financial statement, the initial investment cost is the sum of the book value of equity investment held
before the acquisition date and the cost of new investment on acquisition date. When the stock equity held beforethe acquisition date involving other consolidated incomes, at the disposal date, other consolidated incomes relatedto this investment shall be subjected to accounting treatment (i.e. except the corresponding share accounted byequity method in the change due to remeasurement and setting of net indebtedness or net assets of benefit plan,the remaining shall be transferred to the current investment income) on the same basis as that adopted by theacquiree for the direct disposal of relevant assets or liabilities.
In consolidated financial statement, the share equity held before the acquisition date shall be measured againaccording to the fair value of this share equity on the acquisition date, the balance of the fair value and its bookvalue shall be counted in the current investment income; when the share equity held before the acquisition dateinvolving other consolidated incomes, other consolidated incomes related shall be subjected to accountingtreatment (i.e. except the corresponding share accounted by equity method in the change due to remeasurementand setting of net indebtedness or net assets of benefit plan, the remaining shall be transferred to the currentinvestment income of the acquisition date) on the same basis as that adopted by the acquiree for the direct disposalof relevant assets or liabilities.
6. Preparation on consolidation financial statements
(1) Preparation on consolidation financial statements
The company starts to include the actual control right to the net assets and the production and managementdecisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stopcovering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the businessperformance and the cash flow before the disposal date have been properly covered in the consolidated profitstatement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, theopening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increasedthrough the business combination under non-common control, the business performance and the cash flow afterthe acquisition date have been properly included in the consolidated profit statement and the consolidated cashflow statement, and the opening balance and the comparison balance of the consolidated financial statement shallnot be adjusted. For the subsidiaries increased through the business combination under common control, thebusiness performance and the cash flow from the beginning of current combination period to the combination datehave been properly included in the consolidated profit statement and the consolidated cash flow statement, and thecomparison balance of the consolidated financial statement shall be adjusted simultaneously.
When preparing the consolidated financial statement, the necessary adjustment shall be made according to theaccounting policy of the company and the financial statement of the subsidiaries during the fiscal period if theaccounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For thesubsidiaries acquired through the business combination under non-common control, the financial statement shallbe adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation ofthe consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
shall be respectively as the minority equity and the minority interest income and individually listed under the
shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion fromthe net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.
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 subsequent
measurement 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 should
be 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 at least.④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting 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). For
the 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 the
joint 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 III 14 (2).Under co-operation, the Company recognizes 1) its solely held of assets and liability, 2) assets and liabilitiesjointly owned based on share proportions, 3) revenue from sales of assets jointly owned by the Company, 4)revenue from sales of assets based on share proportions, 5) expense incurred by the Company, 6) expense incurredbased on share proportions.When the Company invests, sells or purchase assets (the asset does not constitute a business, the same below), toor from the co-operation, the Company only recognizes the profit or loss belong to other joint parties beforeselling those assets to third party. If those assets are impaired in compliance with Accounting Standards forBusiness Enterprises No.8-Assets impairment, the Company should recognize loss for all the invested or soldassets to co-operation. For the assets purchased from co-operation, the Company should recognize loss based onshare proportion.
8. Cash and cash equivalentCash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, and
short-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 foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed.
Assets and liabilities of foreign operation are converted to Renminbi at the spot exchange rate on the balance 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 other
comprehensive income. The conversion differences accumulated in shareholders’ equity with respect to a foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed
Cash flow denominated in foreign currency and cash flow of foreign operation are converted to Renminbi at 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 transferred
to 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 in
shareholder’s equity associated with the disposing part is transferred to minority stockholder’s interest. Disposing
investment in a foreign operation which is joint venture enterprise, the conversion differences accumulated in
shareholder’s equity associated with the disposing part is transferred to profit or loss in the disposing period with
the disposing proportion.10. Financial instrumentsFinancial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Forfinancial assets and financial liabilities at fair value through profit or loss, transaction costs are recognized inprofit and loss for the current period. For other financial assets and financial liabilities, transaction costs areincluded in their initial recognized amounts.(1) Fair value of financial assets and financial liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date. If an active market exists for specific financial assets orliabilities, quoted prices in active markets for identical assets or liabilities are used as fair value. Quoted prices inan active market refers to the prices which are readily available regularly in exchange markets, brokers, industryassociations and other pricing institutions and represents the prices at which the assets or liabilities are traded inan arm length transaction in the marketplace. If an active market does not exist, the Company uses valuationmodel to determine the fair value. Valuation model takes into account quoted price for identical or similar assetsor liabilities between familiar and willing parties, quoted price for similar assets or liabilities in an active market,discounted cash flow method and options pricing model.(2) Classification, Recognition and Measurement of Financial Assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Oninitial recognition, the Company's financial assets are classified into one of the four categories, including financialassets at fair value through profit or loss, held-to-maturity investments, loans and receivables, andavailable-for-sale financial assets.
① Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designatedupon initial recognition as at fair value through profit or loss.
A financial asset held for trading is the financial asset that meets one of the following conditions: A the financialasset is acquired for the purpose of selling it in a short term; B. the financial asset is a part of a group ofidentifiable financial instruments that are collectively managed, and there is objective evidence indicating that theenterprise recently manages this group for the purpose of short-term profits; C. the financial asset is a derivative,except for a derivative that is designated as effective hedging instrument, or a financial guarantee contract, or aderivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quotedprice from an active market) whose fair value cannot be reliably measured.
The financial assets or financial liabilities meeting any of the following requirements can be designated, on initialrecognition, as financial assets or financial liabilities at fair value through profit or loss and of which the variationis included in the current profits and losses: A. The designation is able to eliminate or obviously reduce thediscrepancies in the recognition or measurement of relevant gains or losses arising from the different basis ofmeasurement of the financial assets or financial liabilities; B. The official written documents on risk managementor investment strategies of the enterprise concerned have recorded that the combination of said financial assets,the combination of said financial liabilities, or the combination of said financial assets and financial liabilities willbe managed and evaluated on the basis of their fair values and be reported to the key management personnel.
Financial assets at fair value through profit or loss are subsequently measured at fair value. The gains orlosses related to financial assets at fair value through profit or loss and dividend or interest income related to thosefinancial assets are recognized in profit or loss for the current period.
②Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturity that an entity has the positive intention and ability to hold to maturity.
Such kind of financial assets are subsequently measured at amortized cost using the effective interest method.Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for thecurrent period.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financialliability (or a group of financial assets or financial liabilities) and of allocating the interest income or interestexpense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactlydiscounts estimated future cash flows through the expected life of the financial asset or financial liability or, whereappropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Company estimates future cash flows considering all contractualterms of the financial asset or financial liability (without considering future credit losses), and also considers allfees paid or received between the parties to the contract giving rise to the financial asset and financial liability thatare an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
③ Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin an active market. Financial assets classified as loans and receivables by the Company include notes receivable,accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain orloss arising from derecognition, impairment or amortization is recognized in profit or loss for the current period.
④ Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognitionas available for sale, and financial assets that are not classified as financial assets at fair value through profit orloss, loans and receivables or held-to-maturity investments.
Cost of available-for-sale investments in debt instruments are measured on the basis of the post-amortization costat period end, which is the initially recognized amount of financial asset or financial liability deducting the alreadypaid principal, plus or minus the accumulated amount of amortization incurred from amortizing the balancebetween the initially recognized amount and the amount of the maturity date by adopting the actual interest ratemethod and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments inequity instruments is the initially recognized amount at acquisition.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising fromchanges in the fair value are recognized as other comprehensive income and included in the capital reserve, exceptthat impairment losses and exchange differences related to amortized cost of financial assets are recognized inprofit or loss, until the financial assets are derecognized, at which time the gains or losses are released andrecognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an activemarket and whose fair value cannot be reliably measured and derivative financial assets that are linked to andmust be settled by delivery of such unquoted equity instruments are subsequently measured at cost.
Interests obtained and the dividends declared by the investee during the period in which the available-for-salefinancial assets are held, are recognized in investment income.
Impairment of Available-for-sale financial assets
If all the related information considered indicates that the decline in fair value of available-for-sale financial assetsis significant or non-temporary decline, impairment incurred for available-for-sale financial assets. Significantdecline refers to accumulated decline in fair value exceed 20%; non-temporary decline refers to continuousdecline in fair value more than 12 months.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair valuepreviously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. Theamount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between theacquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairmentloss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objectiveevidence of a recovery in value of the financial assets which can be related objectively to an event occurring afterthe impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal ofimpairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while theamount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price inan active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked toand must be settled by delivery of such an unquoted equity instrument, the impairment loss on such financial assetis not reversed once it is recognized.
(3) Transfer and measurement of financial assets
The Company derecognizes a financial asset only when: ① the contractual rights to the cash flows from thefinancial asset expire; or ② it transfers the financial asset and substantially all the risks and rewards ofownership of the asset to another entity; or ③ it transfers the financial asset, neither transfers nor retains
substantially all the risks and rewards of ownership but has not retained control over the financial assets.If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset, and retains its control of the financial asset, it recognizes the financial asset to the extent of its continuinginvolvement in the transferred financial asset and recognized an associated liability. The extent of the enterprise'scontinuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of thetransferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1)the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from thetransfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized inprofit or loss.
If the transfer of partial financial asset satisfies the derecognition criteria, the entire book value of the transferredfinancial asset shall, between the portion whose recognition has been stopped and the portion whose recognitionhas not been stopped, be apportioned according to their respective relative fair value and the difference betweenthe amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The bookvalue of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whoserecognition has been stopped, and the portion of the accumulative amount of the changes in the fair valueoriginally recorded in the owner's equities which is corresponding to the portion whose recognition has beenstopped.
In terms of financial assets sold with recourse or financial assets transferred by endorsement, the Company shalldetermine whether substantially all the risks and rewards of ownership of the financial asset are transferred.Where an enterprise has transferred substantially all of the risks and rewards related to the ownership of thefinancial asset to the transferee, it shall stop recognizing the financial asset. If it retained substantially all of therisks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. Ifthe Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset,the Company shall determine whether it retains the control of the financial assets and account the financial assetsin accordance with the Standards mentioned above.
(3) Classification and Measurement of Financial Liability
On initial recognition, financial liabilities are classified as either financial liabilities at 'fair value through profit orloss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at theirfair values. For the financial liabilities at fair value through profit or loss, the transaction expenses thereof shall bedirectly recorded into the profit or loss of the current period; for other financial liabilities, the transaction expensesthereof shall be included into the initially recognized amount.
① Financial liabilities at fair value through profit or loss
The transactional financial liabilities and designated financial liabilities at fair value through profit or loss areclassified under the same criteria as the transactional financial assets and designated financial assets at fair valuethrough profit or loss.
On subsequent measurement of financial liabilities at fair value through profit or loss, gain or loss arising fromchanges in fair value and dividends and interests related to the financial liabilities are recognized in the profit orloss of the current period.
② Other Financial Liability
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument(without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequentlymeasured at cost. Other financial liabilities are subsequently measured at amortized cost using the effectiveinterest method, with gain or loss arising from derecognition or amortization recognized in profit or loss.
(5) Derecognition of financial liabilitiesThe Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part
of it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replacethe original financial liability with a new financial liability with substantially different terms is accounted for as anextinguishment of the original financial liability and the recognition of a new financial liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between thecarrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid(including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
(6) Offsetting financial assets and financial liabilitiesWhen the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle thefinancial liability simultaneously, financial assets and financial liabilities are offset with the net amounts presentedon the balance sheet. Otherwise, financial assets and financial liabilities are separately presented on the balancesheet without offsetting.
(7) Equity InstrumentsAn equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments issued (including refinanced), repurchased, sold or cancelled by theCompany are treated as changes in equity. Changes in the fair value of equity instruments are not recognized.Transaction costs related to equity transactions are deducted from equity.
Distributions to holders of equity instruments by the Company (excluding dividends) reduce shareholders’ equity.
The Company does not recognize changes in fair value of equity instruments.11. Account receivable
The receivables include accounts receivable and others, etc.
（1） Provision for bad debts of account receivable that are individually significant
| The judgment basis for significant single-item amount or standard for significant amount | The accounts receivable with single-item amount of RMB 5 million and above |
| The method of separate provision for bad debts of the accounts receivable with significant single-item amount | Impairment test shall be separately conducted. If the test proves the occurrence of impairment, impairment loss shall be |
(2)The accounts receivable of bad debt provisions made by credit risk Group
determined and provision for bad debts shall be made accordingto the difference between the present value of its future cash flowand its book value. For the accounts receivable whoseimpairment is not proved by separate test, such accountsreceivable, together with those with insignificant single-itemamount, are divided into some groups based on similarcharacteristics of credit risks. For these groups of accountsreceivable, provision for bad debts shall be made according tothe regulation mentioned in "(2) provision for bad debts shall bemade for accounts receivable on group basis".Name
| Name | Withdrawing Method |
| Aging Group | Aging Analysis Method |
| Other Group | Other method |
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
| Aging | Rate for receivables(%) | Rate for other receivables(%) |
| During the credit period | 0.00% | 0.00% |
| The credit period within 1 year | 5.00% | 5.00% |
| 1－2 years | 10.00% | 10.00% |
| 2－3 years | 30.00% | 30.00% |
| 3－4 years | 50.00% | 50.00% |
| 4－5 years | 70.00% | 70.00% |
| Over 5 years | 100.00% | 100.00% |
In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicableIn Group ,adopting other method for bad debt provision：
√ Applicable □ Not applicable
| Name | Account receivable proportion | Other account receivable proportion |
| Related party group | 0.00% | 0.00% |
| Security deposit | 0.00% | 0.00% |
| Deposit | 0.00% | 0.00% |
| Petty cash | 0.00% | 0.00% |
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
individual basis
| Reason for separate provision for bad debts | The accounts receivable with single-item amount of less than RMB 5 million whose risk characteristics can’t be reflected by provision for bad debts on basis of group. |
| Method of provision for bad debts | Provision for bad debts is made according to the difference between the present value of its future cash flow and its book value. |
12. InventoriesWhether the company needs to comply with the disclosure requirements of the particular industry
No(1)Classification of InventoriesThis enterprise's inventories is classified as raw materials, works in process, finished products, circulationmaterials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,development cost,etc.(2) Obtaining and Measurement of InventoriesThe perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall bemeasured by their actual cost when they are obtained. Raw materials, works in process, finished products, etc.shall be measured with the weighted average method when they are being sent out. Low-value consumption goodsshall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materialsshall be recorded into cost according to the predicted usage times.(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shallmake the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss ondecline in value of inventories on the ground of each item of inventories. If the factors causing any write-down ofthe inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provisionfor the loss on decline in value of inventories that has been made.(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costsof completion, the estimated selling costs and related tax payments.
13.Asset-held for sale
The Company will retrieve its book value by means of selling assets (including the exchange of commercialnon-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meetingtwo of the following conditions, the book value will be divided into on-sales category: (1) When a certainnon-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance withthe convention , assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment,predicting that selling will be completed within one year.( The selling, which can only be sold after acquiringapproval from relevant authorities or supervision departments according to relevant provision requirement , hasacquired its approval ).The Company will be specifically for dividing the non-current assets or disposal group which are acquired from
reselling 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 orremeasured and divided into on-sales category on balance sheet date, if its book value is higher than the netamount after fair value deducts selling expense, the book value will be written down to the net amount after fairvalue deducts selling expense, and the written-down amount will be confirmed as assets impairment losses andcounted into the current profits and losses, and the impairment provision with on-sales assets will be withdrawn
in the meanwhile. For the on-sales disposal group’s confirmed amount of loss of asset impairment, the book value
of goodwill will be deducted first, and its book value will then be deducted proportionally according to the book
value’s percentages of all non-current assets in the disposal group which can be adopted by the measurement
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, DisposalGroups and Operation Termination
If any increment occurs in the net amount after the on-sales non-current assets on the subsequent balancesheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred backwithin the amount of asset impairment losses confirmed after being divided into on-sales category, and the amounttransferred back will be counted into the current profits and losses. There will be no restitution for assetimpairment losses confirmed before being divided into on-sales category. The amount deducted previously ofon-sales disposal group shall be recovered, and when after being divided into on-sales category, it will betransferred back within the amount of impairment confirmed by non-current assets by the means of the measurestipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, DisposalGroups and Operation Termination, and the amount transferred back will be counted into the current profits andlosses. There will be no restitution for the book value of goodwill which has been deducted and for assetimpairment losses confirmed before being divided into on-sales category which can be adopted by the measurestipulation of this principle.
No depreciation and amortization will be made in the non-current assets which are on sales or in the disposalgroup. Confirmation will continue to be made in the debt interest in on-sales disposal group as well as otherexpenses.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-salescategory, the Company will not continue to divide it into on-sales category or remove the non-current assets fromthe on-sales disposal group, and the valuation will be made according to the lower one between two of followings:
(1)Book value before being divided into on-sales category, and the amount of money after being under thesituation where book value is supposed not to be divided into on-sales category and adjustment is made 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.14.Long-term Equity Investment
Long-term equity investments refer to all investments that are the Company with control of, joint control of, orsignificant influence over, an investee. The Company accounted investments that are the Company withoutcontrol of, joint control of, or significant influence over, an investee as financial assets available-for-sale or
financial assets 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 measurementFor business combination under common control, if the consideration of the merging enterprise is that it makespayment in cash, transfers non-cash assets or bear its debts, it shall, on the date of combination, regard the share ofthe book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equityinvestment. The difference between the initial cost of the long-term equity investment and the payment in cash,non-cash assets transferred as well as the book value of the debts borne by the merging party shall offset againstthe capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. If theconsideration of the merging enterprise is that it issues equity securities, it shall, on the date of combination,regard the share of the book value of the stockholder's equity of the merged enterprise as the initial cost of thelong-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, whilethe difference between the initial cost of the long-term equity investment and total face value of the shares issuedshall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall beadjusted. Business combination under common control achieved in stages by several transactions shall determinewhether the transactions belong to one package. If the transactions belong to one package, the Companyaccounted these transactions as one transaction with control of the investee. If the transactions do not belong toone package, on the date of combination, the Company shall regard the share of the book value of the owner'sequity of the merged enterprise as the initial cost of the long-term equity investment. The difference between theinitial cost of the long-term equity investment and the sum of book value of long-term equity investments prior tothe combination and the book value of consideration paid at the date of combination in order to achieve control ofthe investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retainedearnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arisingfrom equity investment under equity method before the combination date or recognized with available-for-salefinancial assets.
For business combination under different control, the Company accounts initial cost of long-term equityinvestment as combination costs on the acquisition date. Combination costs refer to the fair values, on theacquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theacquirer. Business combination under different control achieved in stages by several transactions, shall determinewhether the transactions belong to one package. If the transactions belong to one package, the Company accountsthese transactions as one transaction with control of, joint control of, significant influence over, the investee. If thetransactions do not belong to one package, the initial cost of long-term equity shall be accounted under costmethod and recognized amount shall be the sum of book value of long-term equity investment before acquisitionand cost of additional investment. For equity investments previously accounted under equity method, othercomprehensive income related to these investments does not change. For equity investments previously accountedas financial assets available for sale, difference between fair value and book value and accumulated changes infair value originally recorded in other comprehensive income shall be transferred to profit or loss of currentperiod.
The direct cost for the business combination of the combining party shall, including the expenses for audit,assessment and legal services, be recorded into the profits and losses at the current period.
Besides the long-term equity investments formed by business combination, the initial cost of a long-term equityinvestment obtained by other means shall be initially recognized at cost.The cost shall be ascertained inaccordance with the provisions as follows: (a) The initial cost of a long-term equity investment obtained bymaking payment in cash shall be the purchase cost which is actually paid; (b) The initial cost of a long-term equityinvestment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued;(c) The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investmentcontract or agreement; (d) The initial cost of a long-term investment obtained by the exchange of non-monetaryassets shall be the fair value or book value of transferred assets. (e) The initial cost of a long-term investment shallbe the fair value of the long-term investment; etc. The initial cost also consists of the expenses directly relevant tothe obtainment of the long term equity investment, taxes and other necessary expenses. Long-term equityinvestment which, due to additional investment, can exercise significant influence over, joint control of, but notcontrol of, the investees, shall recognize its cost as the sum of fair value of long-term equity investment beforeadditional investment and cost of additional investment according to Accounting Standard for BusinessEnterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Subsequent Measurement and Recognition Method
Long-term equity investments which are the Company with joint control of (excluding joint operation), significantinfluence over the investees shall be accounted under equity method. Besides, long-term equity investments whichare the Company with control of the investees shall be accounted under cost method.
(1)A long-term equity investment accounted under cost method
Under the cost method, long-term equity investment is measured at initial cost, additional investments ordisinvestments shall make an adjustment to the cost of long-term equity investment. The investment incomerecognized by the Company shall be limited to the dividends or profits declared to distribute by the invested entity,
except dividends or profits declared in the consideration paid to acquire the investees.(2) A long-term equity investment accounted under the equity method.Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
Company’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 or
loss for the period, and the cost of the long-term equity investment is adjusted accordingly.Under the equity method, the Company recognizes its share of the net profit or loss and other 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 net
profit or loss after making appropriate adjustments based on the fair value of the investee’s individual separately
identifiable assets, etc. at the acquisition date. Where the accounting policies and accounting period adopted bythe investee are not consistent with those of the Company, the Company shall adjust the financial statements ofthe investee to conform to its own accounting policies and accounting period, and recognize investment incomeand other comprehensive income based on the adjusted financial statements. For the Company's transactions withits associates and joint ventures where assets contributed or sold does not constitute a business, unrealizedintra-group profits or losses are recognized as investment income or loss to the extent that those attributable to theCompany's proportionate share of interest are eliminated. However, unrealized losses resulting from theCompany's transactions with its associates and joint ventures which represent impairment losses on the transferredassets are not eliminated. When the assets invested by the Company to associates or joint ventures constitute anoperation, and the investors thereafter own long-term equity investment without control of the Company, fairvalue of the operation invested shall be accounted as cost of additional long-term equity investments, anddifference between initial recognized cost of additional long-term equity investments and its book value shall beaccounted in the profit or loss of current period. When the assets sold by the Company to associates or jointventures constitute an operation, the difference between consideration paid and book value of the operation shallbe recorded in profit or loss of current period. When the assets bought by the Company from associates or jointventures constitute an operation, gain or loss related shall be recognized according to Accounting Standard forBusiness Enterprises No.20-Business Combination.
The Company discontinues recognizing its share of net losses of the investee after the carrying amount of thelong-term equity investment together with any long-term interests that in substance form part of its net investmentin the investee is reduced to zero. If the Company has incurred obligations to assume additional losses of theinvestee, a provision is recognized according to the expected obligation, and recorded as investment loss for theperiod. Where net profits are subsequently made by the investee, the Company resumes recognizing its share ofthose profits only after its share of the profits exceeds the share of losses previously not recognized.
(3) Acquisition of non-controlling shares
When preparing consolidated financial statements, differences between additional long-term equity
investments due to acquisition of non-controlling shares and attributable share of invested entity’s identifiable net
assets accumulated since acquisition date (or consolidation date) at shareholding ratio after acquisition, shalladjust capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
(4) Disposal of long-term equity investments
In consolidated financial statements, when parent company partially disposes long-term equity investmentsin subsidiaries without losing control, the difference between proceeds received and attributable share of invested
entity’s identifiable net assets related to such investments sold, shall be recorded in shareholder’s equity; when
parent company partially disposes long-term equity investments in subsidiaries with control lost, adjustments 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 afterdisposal shall not change. The Company shall account for proportionate amount previously recognized in othercomprehensive income in relation to that investment on the same basis as would have been required if the investeehad directly disposed of the related assets or liabilities. The Company shall also reclassify to current period profit
or loss the proportion of changes in shareholders’ equity that had previously been recognized excluding changes
arising from net gain or loss, other comprehensive income, profit or loss.
In terms of long-term equity investments accounted under cost method, the accounting method after disposalshall not change. The Company shall account for proportionate amount previously recognized in othercomprehensive income, arising from according equity method or recognition and measurement standard offinancial instruments before control of investees, in relation to that investment on the same basis as would havebeen required if the investee had directly disposed of the related assets or liabilities. The amount in othercomprehensive income shall be transferred to current period profit or loss proportionately.
When the Company loses control over an investee due to partial disposal of its shares, during preparation ofindividual financial statements, if the Company with retained shares after disposal can still joint control, orinfluence over, the investee, the Company shall account for the investment under equity method and retainedshares shall be adjusted as would have been required if the retained shares had been recorded on initial recognitionunder equity method; if the Company with retained shares after disposal cannot joint control, or influence over,the investee, the Company shall account for the investment under the recognition and measurement standard offinancial instruments and recognize in profit or loss difference between the fair value of any retained shares andcarrying amount of the investment at the date of control lost. The Company shall account for amount previouslyrecognized in other comprehensive income, arising from according equity method or recognition andmeasurement standard of financial instruments before control of investee in relation to that investment on thesame basis as would have been required if the investee had directly disposed of the related assets or liabilities. Ifequity method is used before control, the Company shall also reclassify to current period profit or loss changes in
shareholders’ equity that had previously been recognized excluding changes arising from net gain or loss, other
comprehensive income, profit or loss. If retained shares are accounted under equity method, other comprehensive
income and changes in shareholders’ equity shall be transferred to current period profit or loss proportionally; ifretained shares are accounted under cost method, other comprehensive income and changes in shareholders’
equity shall be transferred to current period profit or loss at once.
When the Company ceases to joint control or influence over investee due to partial disposal of its shares,retained shares shall be accounted for under recognition and measurement standard of financial instruments anddifference between fair value and carrying amount shall be recorded in current period profit or loss. The Companyshall account for amount previously recognized in other comprehensive income arising from equity method inrelation to that investment on the same basis as would have been required if the investee had directly disposed ofthe related assets or liabilities. The Company shall also reclassify to current period profit or loss the proportion of
changes in shareholders’ equity that had previously been recognized excluding changes arising from net gain or
loss, other comprehensive income, profit or loss.When the Company ceases to control an investee due to partially dispose its shares by stages, if transactions
belong to one package, each transaction shall be accounted for as one event which lead to control cease. Prior tocontrol lost, the difference between proceeds received and carrying amount of investment sold shall be recorded inother comprehensive income first and transferred to current period profit or loss when control lost.
15. Investment real estateThe measurement mode of investment property
The measurement by the cost methodDepreciation or amortization method
Investment property refers to the properties held for the purpose of generating rent and/or capital appreciation. The company’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.16. Fixed assets
(1) Recognition criteria for fixed assetsFixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes, and have useful lives of more than one accounting year.A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow tothe Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation methods
| Type | Detail | Estimated useful Life | Estimated residual value rate | Depreciation rate(%) |
| House and Building | Straight-line method | Over the period of title (the period specified on the real estate title certificate or land use right certificate) or 30 years in case of no period | 5 | 3.17 |
| of title | ||||
| Kiln | Straight-line method | 5 | 5 | 19 |
| Platinum passage | Straight-line method | 3 | 95.50 | 1.5 |
| Glass flat-panel and other equipment | Straight-line method | 15 | 5 | 6.33 |
| other equipment | Straight-line method | 10 | 5 | 9.5 |
| Transportation equipment | Straight-line method | 5 | 5 | 19 |
| Temporary equipment | Straight-line method | According to the length of the project | 0 | |
| Testing, quality inspection, office equipment, tools and other tool | Straight-line method | 5 | 5 | 19 |
The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost hasno losses. Hence, the channel has a higher rate of net residual value.
Thereinto, the fixed asset whose asset impairment provision has been withdrawn should also have itsaccumulated amount deducted to count and confirm the depreciation rate.
When the year of the fixed asset comes to an end, the Company will review its service life, net residual valueand depreciation method. Should there be any differences between the estimated amount of service life and theinitially estimated one, adjustment will be made for the service life; Should there be any differences between theestimated amount of net residual value and the initially estimated one, adjustment will be made for the estimatedone.
（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed 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 valueand depreciation method. Should there be any differences between the estimated amount of service life and theinitially estimated one, adjustment will be made for the service life; Should there be any differences between theestimated amount of net residual value and the initially estimated one, adjustment will be made for the estimatedone.(4)Charge for Major Overhaul
The Company conducts regular checking on major overhaul fee incurred in the fixed asset, and any parts ofthe fee that have unambiguous evidence to indicate they conform with the condition for confirming fixed assetwill be counted into the fixed asset costs, otherwise into the profit and loss of the current period. During theinterval period of regular major overhaul, the fixed asset will be depreciated as before.
17. Construction in progressThe costs of construction in progress include all necessary project expenditures, the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.Construction in progress changes to fixed assets when it reaches the expected usable status.
18. Borrowing expensesBorrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses,
exchange differences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to theacquisition, construction or production of qualifying asset are capitalized when expenditures for such asset andborrowing costs are incurred and activities relating to the acquisition, construction or production of the asset thatare necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costsceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use orsale. Other borrowing costs are recognized as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing, the amount of the capitalized interest is theactual interest expense incurred on that borrowing for the period less any bank interest earned from depositing theborrowed funds before being used on the asset or any investment income on the temporary investment of thosefunds. Where funds are borrowed under general-purpose borrowings, the Company determines the amount ofinterest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of theexcess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. Thecapitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to the principal and interest on aspecific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifyingasset. The exchange differences related to the principal and interest on foreign currency borrowings other than aspecific-purpose borrowing are recognized as a financial expense when incurred.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need tobe acquired, constructed or produced through a long period of time, in order to become ready for its intended useor sale.If general borrowings are used to purchase, construct or produce the capitalization eligible assets, theborrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of thespecial borrowings times the capitalization rate of the used general borrowings, which is determined by theweighted average interest rate of the general borrowings.
19.Biological Assets20.Oil & Gas assets21.Intangible assets1. Valuation Method, Service Life and Impairment Test of Intangible AssetsThe Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, orthe straight-line amortization method if unable reliably to determine how to realize the expected economicbenefits; and no amortization are made for intangible assets of an unlimited useful life.At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of alimited useful life and makes adjustments and accounting treatment if different from the previous estimates.For the intangible assets that are estimated to produce no more economic benefits in the future, the Companyrecords the book value of such assets all in current profit and loss.2. Accounting Policy of Internal Research and Development ExpenditureThe expenditures for internal research and development projects of an enterprise shall be classified into researchexpenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.Development expenses can only be capitalized when the following conditions are satisfied: the technology isfeasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the productgenerated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is usedinternally, it can be proven that it is useful; with necessary technical and financial resources and other resources tocomplete the development of the intangible assets and the intangible assets can be used or sold; the developmentexpense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,the project will enter the development stage.
22. Impairment of the long-term assetsFixed assets, construction in progress, intangible assets with finite useful lives, investment properties measured
using 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 carrying
amount, 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 less
costs to sell and the present value of the future cash flows expected to be derived from the asset. Fair value shallbe determined as the price as stipulated in the sales agreement in the orderly transaction. Where there is no salesagreement but there is an active market of assets, fair value shall be determined as the quoted price in activemarket for identical assets or liabilities. Where there is no sales agreement and no active market of assets, fairvalue shall be estimated according to the best information available. The disposal expenses shall include therelevant legal expenses, relevant taxes, truckage as well as the direct expenses for bringing the assets into amarketable state. The present value of the expected future cash flow of an asset shall be determined by thediscounted cash with an appropriate discount rate, on the basis of the expected future cash flow generated duringthe continuous use or final disposal of an asset. Provision for asset impairment is determined and recognized onthe individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallestgroup of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment,irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value ofgoodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from thesynergies of the business combination. If the result of the test indicates that the recoverable amount of an assetgroup or group of asset groups, including the goodwill allocated, is lower than its carrying amount, thecorresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount ofgoodwill that is allocated to the asset group or group of asset groups, and then deducted from the carryingamounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts ofother assets.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in thesubsequent periods.
23.Long-term amortizable expensesLong-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
24 Employees’ Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefits and
other long-term employee benefits as well as the benefits the Company provides to employees’ spouses, children,dependents, deceased employees’ family and other beneficiaries.
The Company classifies into short-term compensation the employee remuneration that needs to be paid offentirely in the twelve months following the reporting year the employees have provided their services, whichexcludes those given for employment termination. Short-term compensation includes payroll, bonus, allowancesand subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birthinsurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profitshare plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-termcompensation incurred during the accounting period that the employees provide their services and records incurrent profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefitsPost-employment benefits are mainly defined contribution plans, which include basic pension, unemploymentinsurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and losswhen incurred.
(3) Accounting methods for demission benefitsDemission benefits are the compensations paid to terminate employment before expiration or encourageemployees to accept lay-off.
(4) Accounting methods for other long-term employee benefitsOther long-term employee benefits are all other employee compensations than short-term compensation,post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for thedisabled, long-term profit sharing plans etc.
25. Estimated LiabilitiesThe Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;B. Fulfillment of the obligations that lead to cash flow out of the Company;C. The amount of the obligations that can be measured reliably.If it is expected that a third party can compensate for all or partial expenditures to pay off the recognizedestimated liabilities, the compensation can be recognized separately as assets only when the Company is sure toreceive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
26 Share-based Payment(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the 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 InstrumentsOn 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.
27.Preferred shares, perpetual capital securities and other financial instruments28.RevenuesWhether the company needs to comply with the disclosure requirements of the particular industry
NoIncome, 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 salesThe merchandises will be transferred to the purchaser when they meet with both the major risk and reward ofthe merchandise 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) ServicesService 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 tra
nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measuredFor the services that start and end during the same accounting year, the revenue shall be recognized uponcompletion; if the services end in a different accounting year and the service transaction results can be measuredreliably, the Company adopts the completion percentage method to recognize the revenue on balance sheet dates;if not measurable reliably, the Company recognizes the revenue at the amount of the service costs that are incurredand can be compensated expectedly; otherwise, the service costs incurred are recognized as current expenses.The Company adopts the following methods to determine the completion progress of service transactions:
①measurement of the completed jobs; ②the proportion of the completed services to all; ③the proportion of the
costs incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be treated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that have occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not expected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is recognized.Contract or agreement entered into with other companies, including the sale of goods when providing services, thesale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the sale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales ofgoods and rendering of services can not be distinguished, or can be distinguished but can not be measured separately, should be part of the sale of goods and provision of services as part of the total sales of goods.
If property management has provided service, economic interest related to property management service isable to flow into the enterprise, and costs related to the property management service can be reliably calculated,the realization of property management income will be confirmed.
(3) Use Rights of Assets on AlienationThe right of using transferred asset includes lease earning, intermediate business income, interest income andusage fee income.
When the right of use the transferred asset can, at the same time, conform with the condition that relevantinterest income is likely to inflow and the income amount can be reliably calculated, the income of the right of usethe transferred asset can be confirmed. The interest income will be counted and confirmed according to the time
and actual interest rate of the enterprise’s monetary capital used by others; The charge for use will be counted and
confirmed according to charging time and method stipulated in the relevant contracts or agreements.
（4） Construction Contracts
Under the situation where the result of contract forming can be reliably estimated, the contract income and
contract costs will be confirmed by the contract’s completion percentage on the balance sheet date. The contract’s
completion percentage will be confirmed by the proportion that the accumulated contract costs actually incurredoccupies the predicted total contract cost
That the result of construction contract can be reliably estimated refers to that the following can be conformedwith at the same time: 1)The total income of contract can be reliably calculated; 2)The economic interest related
to the contract has major possibility to flow into the enterprise; 3)The contract costs actually incurred can beclearly distinguished and reliably calculated; 4)The completion progress of contract and the costs which still needsto incurred for completing the contract can be reliably confirmed.
If the result of construction contract can not be reliably estimated while its costs can be recoverable, the contractincome will be confirmed according to the actual contract costs which can be recoverable, and the contract costswill be confirmed the contract fee at its current period; The contract costs which can not be recoverable will beconfirmed as not the cost income but the cost fee when the recovery incurs.
If the uncertainties that result construction contract to be not reliably estimated no longer exist, the income and feerelated to the construction contract will be confirmed according to the completion percentage.
If the predicted total contract cost is more than the total contract income, the predicted loss be will confirmed asthe current fee.
The accumulated cost of the construction contract which has incurred, the accumulated gross profit (loss) has beenconfirmed, and the payment amount which has been settled will be presented as the net amount after offset in thebalance sheet. The part that the sum of the accumulated cost incurred and the accumulated gross profit (loss)confirmed more than the payment amount settled will be presented as the one which has been completed but yet tobe settled.The part, where the sum that the payment amount settled of the construction contract is more than theaccumulated cost incurred and the accumulated gross profit (loss) confirmed, will be presented as the one whichhas been settled but yet to be completed.
29.Governmental subsidy(1)Basis and accounting methods for assets related government 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 lossby stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If thepertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocatedpertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and therecognized government grant needs to be refunded, then it shall write down the carrying amount of the relevantdeferred income and the excess part shall be included in the current profit and loss.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to IncomeThe government grants pertinent to income that are used to compensate the relevant costs or losses of the
subsequent period of the enterprise are recognized as deferred income and are credited to the current profit or lossfor the period when the relevant costs, expenses or losses are recognized; those government grants used forcompensating the related expenses or losses incurred to the enterprise shall be directly included in the current profitsand losses.For the government subsidy which includes both the assets related part and the income related part, the differentparts are treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy relatedto the income.
Government subsidies related to the daily activities of the company shall be included in other earnings inaccordance with the substance of the economic business. Government subsidies not related to the daily activitiesof the company shall be included in the non-operating income and expenditure.
30. Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities, as well as thetemporary differences issued as the balance between the book value and the tax basis of the tax basis items thatunrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall bedetermined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balancesheet debt law.Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of anasset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profitand taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not berecognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,associates and joint ventures, if the Company could control the reverse time of such differences and suchdifferences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall notbe recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferredincome tax liabilities caused by taxable temporary differences.Deductible temporary differences related to the initial recognition of an asset or liability in a transaction thatneither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductibleloss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as fordeductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if suchdifferences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct thedeductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not berecognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred incometax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income thatcan be used to deduct the deductible temporary differences of the taxable income.The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward duringsubsequent years shall be recognized within the limit of likely obtained future taxable income that can be used todeduct the deductible loss and tax reduction.As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall bemeasured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-offrelevant liabilities at the balance sheet date.The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in thefuture to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it islikely to obtain sufficient taxable income.
31.Operational leasing
（1）Accounting of operational 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 LeasesAt the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and anamount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leasedassets of payables. The balance between the recorded amount of the leased asset and the recorded amount of thepayable shall be accounted for as unrecognized finance charge.
32. Other significant accounting policies and estimates
（1）Discontinued Operation
Discontinued operation means enterprises which can meet one of the following conditions and can bedistinguished into a constituent part separately, and this part has been disposed or divided into a on-sales category.
②This part is a one of the related parts which proposes to dispose an independent main business or an
independent main business area.
③This part is a subsidiary acquired from being specifically for reselling.
For accounting treatment methods for discontinued operation, see the relevant descriptions at Article 13-Possession of On-Sales Asset in Note III
(2) Share RepurchaseShare 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 of
price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offset
the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price paid tostock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capitalreserve (share premium).
33.Change of main accounting policies and estimations(1)Change of main accounting policies
□Applicable √Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written incurrent profit and loss except those for reputation adjustment in enterprise combination or trades directly counted
into shareholder’s equity or some deferred income tax which is counted in shareholder’s equity.
Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amountis calculated by adjusting pre-tax accounting profit specified in related tax laws.
The company confirms deferred income tax by adopting liability method in Balance Sheet based on thetemporary difference between book value of asset and liability in Balance Sheet and tax base.
Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities,except the temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the tradeis not enterprise combination and it neither influences accounting profit nor amount of payable tax when ithappens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, jointenterprises and associated enterprises. The temporary difference return time may be controlled and may not returnin foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income taxliabilities according to applicable tax between expected recovered assets and paid liabilities, and also the companywill reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date ofbalance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If itwas unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it waslikely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be written down.
2. Safety production expenses
The company counts and draws safety production expenses specified in Notification on Printing and
Distributing and Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issued
by Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized inimproving safe production.
Safety production expense is counted into related product’s cost or current profit and loss. At the same time,
it is also counted into specialized reserve. In case the safety production expense to be delivered is used in expense,we directly consume specialized reserve. In case safety production expense to be delivered belongs to fixed assetand is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is readyto put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it asequivalent accumulated depreciation.
3. Judgement and Estimation for Significant Accounting
During the process of applying accounting policies, due to to inherent uncertainties in business activities, theCompany requires judgement, estimation and assumption for the book value of the report items which can not bemeasured accurately. Such judgement, estimation and assumption is made basing on the previous experience of
the Company’s management as well as the consideration of other relevant factors. And the reported amount of
revenue, cost and asset, as well as the disclosure of balance sheet date and the liability will be influenced by suchjudgement, estimation and assumption; However, there may be differences between the actual result caused by the
uncertainties of such estimation and the current estimation of the Company’s management, thereby significant
adjustment will be made for the assets influenced in the coming future and the indebted book value.
The Company will periodically recheck the above-mentioned judgement, estimation and assumption basedon going concern. The changes of accounting estimation only influence those which are influenced at the currentperiod, and of which the influence number will be confirmed at that current period; For those changes which haveinfluence both at the current period and the future period, the influence number of them will be confirmed at thatcurrent period and the future period.
On balance sheet date, the significant fields where the Company needs to make judgement, estimation andassumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction ContractWhen the result of construction contract can be estimated reliably, the Company will confirm the contract revenueon balance sheet date by adopting Percentage of Completion Method. The percentage of completion will beconfirmed according to Article 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. Thetotal predicted revenue and total cost of the contract, as well as the estimation changes of contract execution resultwill probably have effect on the operation revenue, the operation cost at the current changing period or at thesubsequent period, as well as the profits and losses during that period, and significant influence is likely to beformed due to the above-mentioned changes.
(2) Provision for bad debtsThe 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 and
estimation. The difference between the actual result and the original estimate will affect the book value ofaccounts receivable and the provision or reversal of bad debt provision for accounts receivable during the periodin which the estimate is changed.
(3) Inventory falling price preparationAccording to the inventory accounting policy, the Company measures the lower of cost and net realizablevalue, and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value,obsolete and unsalable. The depreciation of inventories to net realizable value is based on the assessment of thesaleability of inventories and their net realizable value. Identification of impairment of inventories requiresmanagement to make judgments and estimates on the basis of obtaining conclusive evidence and considering thepurpose of holding the inventory and the influence of events after the balance sheet date. The difference betweenthe actual result and the original estimate will affect the book value of inventory and provision or reversal ofinventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortizationAfter considering the salvage value of investment real estate, fixed assets and intangible assets, the companyshall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularlyreviews the service life to determine the amount of depreciation and amortization expenses to be included in eachreporting period. The service life is determined by the Company based on past experience of similar assets andcombined with expected technical updates. If there has been a significant change in previous estimates, thedepreciation and amortization expense will be adjusted in the future period.
(5) Deferred income tax assetsInsofar 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 taxIn the normal business activities of the company, there are certain uncertainties in the final tax treatment andcalculation of some transactions. It requires the approval of the tax authorities on whether some items can belisted as deductible in the profit before tax. If there is a difference between the final recognized result of thesetaxation matters and the originally estimated amount, the difference will have an impact on the income tax and thedeferred income tax of that period with the final recognition being made.
VI. Taxation1.Main categories and rates of taxes
| Taxes | Tax references | Applicable tax rates |
| VAT | Sales revenue and Technical services revenue | 3%、10%、16%、17%、11% |
| Urban construction tax | Turnover tax to be paid allowances | 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 | 2% |
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
| Name of Taxpayer | Rate of Income Tax |
2.Tax Preference
① On September 29, 2015,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 2015.
②On July 20, 2017,Wuhu Tunghsu Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%enterprise tax rate applicable for high-tech enterprises for three years since 2017.
③On October 21, 2016,Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the 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 the
national 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 August 3, 2015,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%enterprise tax rate applicable for high-tech enterprises for three years since 2015.
⑥On November 21, 2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the 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 enterprise
with 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 national
high-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-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑩On October 25, 2017,Beijing Xutan New Material Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2017.
⑾On November 17, 2017,Suzhou Tengda Optical Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%enterprise tax rate applicable for high-tech enterprises for three years since 2017.
⑿On December 8, 2016,Sichuan Xuhong Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒀On November 24, 2016,Shanghai Sunlong Bus Co., Ltd. was rated as the national high-tech enterprise
with 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.
⒁On December 8, 2016,Chengdu Tunghsu Intelligence Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Companyadopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒂Daosui Group Tibet Construction Development Co., Ltd, based on the “Notice of the People's Government
of Tibet Autonomous Region on Issuing the Measures for the Implementation of Enterprise Income Tax Policy of
Tibet Autonomous Region” (Zangzhengfa [2014] No. 51) policy, enjoys the corporate income tax at the rate of
15% for the strategy of developing the western region and is exempted from the 40% tax share that originallybelongs to the local place, thus actually implementing the income tax rate of 9%.
⒃Guangxi Yuanzheng New Energy Automobile Co., Ltd, based on the Guangxi People’s Government’s
Circular on the Continuation and Revision of Certain Policies Concerning the Promotion of the Open
Development of the Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy, enjoys the
corporate income tax at the rate of 15% for the strategy of developing the western region and is exempted fromthe 40% tax share that originally belongs to the local place, thus actually implementing the income tax rate of 9%.
⒄Harbin Sunlong New Energy Automobile Sales Co., Ltd, based on the “Notice of Ministry of Finance,
State Administration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scale,
Low-profit Enterprises” (Cai Shui [2011] No. 117) and the 28
th
clause of “The People's Republic of ChinaEnterprise Income Tax Law”- that the small profit-making enterprise that meets the requirements enjoys a
reduction of 20% tax rate on the corporate income tax, actually implements the income tax rate of 10%.
3.Other
VII. Notes to the major items of consolidated financial statement1.Cash and bank balances
In RMB
| Items | Year-end balance | Year-beginning balance |
| Cash | 460,584.36 | 2,461,658.94 |
| Bank deposit | 23,203,703,585.91 | 26,666,668,936.88 |
| Other | 590,432,885.53 | 787,629,173.04 |
| Total | 23,794,597,055.80 | 27,456,759,768.86 |
Other notesThe amount of restricted cash and bank balances by the end of the period is RMB 2,351,663,690.33.
2.Financial assets measured at fair value through current profit and loss3.Derivative financial assets
□Applicable √ Not applicable
4.Note receivable
（1）Classification bill receivable
In RMB
| Items | Year-end balance | Year-beginning balance |
| Bank acceptance | 327,763,684.95 | 267,121,031.99 |
| Trade acceptance | 447,624,748.00 | 271,007,552.85 |
| Total | 775,388,432.95 | 538,128,584.84 |
（2）Note receivable pledged by the Company at the period -end（3）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance
sheet date
In RMB
| Items | Amount derecognized as at June 30,2018 | Amount underecognized as at June 30,2018 |
| Bank acceptance | 215,608,081.81 | |
| Trade acceptance | 598,836,048.03 | |
| Total | 814,444,129.84 |
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
Notes：As of the semi-annual disclosure date, the company has signed an agreement with the relevant parties, the
company will receive the RMB 215 million of notes receivable from the company, such as Waterma, to give theticket holder, etc., and finally obtain the assessed value of not less than RMB 215 million of assets. "(Money fundsdo not need to be assessed). 5. Account receivable
(1)Classification account receivables.
In RMB
| Category | Year-end balance | Year-beginning balance | ||||||||
| Book balance | Provision for bad debts | Book Value | Book balance | Provision for bad debts | Book Value | |||||
| Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | Amount | Proportion（%） | |||
| Accounts receivable of individually withdrawing bad debt provision with significant individual amount | 169,193,829.11 | 1.66% | 169,193,829.11 | 100.00% | 0.00 | 175,782,084.76 | 2.16% | 175,782,084.76 | 100.00% | 0.00 |
| Account receivables with provision for bad debt made on a portfolio with similar risk credit characteristics basis | 10,042,312,738.35 | 98.34% | 104,665,569.58 | 1.04% | 9,937,647,168.77 | 7,975,776,808.83 | 97.84% | 102,357,124.41 | 1.28% | 7,873,419,684.42 |
| Total | 10,211,506,567.46 | 100.00% | 273,859,398.69 | 2.68% | 9,937,647,168.77 | 8,151,558,893.59 | 100.00% | 278,139,209.17 | 3.41% | 7,873,419,684.42 |
Accounts receivable subject to individually withdrawing bad debt provision with significant individual amount..
√ Applicable □Not applicable
In RMB
| Account receivable(Unit) | Amount in year-end | |||
| Account receivable | Provision for bad debts | Proportion% | Reason | |
| Inner Mongolia Zhunxing Heavy Haul Expressway Co., Ltd. | 136,922,651.00 | 136,922,651.00 | 100.00% | Not expected to be recovered as a result of litigation |
| Korea Sunlong Bus Co.Ltd | 32,271,178.11 | 32,271,178.11 | 100.00% | Notes：For the account receivable of Korea Sunlong Bus Co. Ltd-that the outstanding payment of goods has been long delayed due to the disruption of vehicle sales caused by the serious contraction of Korean Tourism Market and the Policy of Automobile Emission Standard, the company has adopted a variety of dunning measures, but has not yet achieved results. At the end of the |
| period, the company conducted a separate impairment test for that. After being tested for impairment, the impairment loss was determined based on the difference of the present value of its future cash flow lower than its book value, making the provision for bad debts. | ||||
| Total | 169,193,829.11 | 169,193,829.11 | -- | -- |
Accounts receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □Not applicable
In RMB
| Aging | Amount in year-end | ||
| Account receivable | Provision for bad debts | Proportion% | |
| Withitem 1 year | |||
| Within credit period | 6,478,928,089.29 | ||
| Within 1 year after credit period | 823,936,445.65 | 41,196,822.36 | 5.00% |
| Subtotal within 1 year | 7,302,864,534.94 | 41,196,822.36 | |
| 1-2 years | 141,927,415.09 | 14,192,741.51 | 10.00% |
| 2-3 years | 26,330,517.90 | 7,899,155.37 | 30.00% |
| 3-4 years | 58,707,194.54 | 29,353,597.27 | 50.00% |
| 4-5 years | 5,458,198.00 | 3,820,738.60 | 70.00% |
| Over 5years | 8,202,514.47 | 8,202,514.47 | 100.00% |
| Total | 7,543,490,374.94 | 104,665,569.58 | |
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
| Group name | Amount in year-end | Provisionfor bad debt | Amount in year- beginning | Provision for bad debts |
| State subsidy. Local subsidy | 2,129,070,128.00 | 2,160,997,954.00 |
| Other Group | 369,752,235.41 | 293,949,697.69 | ||
| Total | 2,498,822,363.41 | 2,454,947,651.69 |
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB8,855,265.67;The amountof the reversed or collected part during the reporting period was of RMB3,817,512.69.
（3）The current accounts receivable written-offs situation
In RMB
| Items | Amount written-offs situation |
| Sales goods | 9,317,563.46 |
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) |
| Foshan Sanshui Yuejing Automobile Transportion Co., Ltd. | Sales goods | 6,588,255.65 | Bankruptcy and liquidation of the enterprise is not expected to be recovered. | Internal approvals | No |
| Total | -- | 6,588,255.65 | -- | -- | -- |
Notes：
（4）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period isRMB3,135,836,063.48 which accounts for 30.71% of the total receivables. The total amount of closing balancefor corresponding accrued bad-debt provision is RMB158,300.88.
（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 accountsreceivable6. Advance payments
（1）Disclosed by aging:
In RMB
| Aging | Amount in year-end | Amount in year- beginning | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within 1 year | 1,317,256,741.99 | 86.04% | 1,771,543,035.64 | 87.65% |
| 1-2 years | 156,933,894.37 | 10.25% | 196,495,357.45 | 9.72% |
| 2-3 years | 15,382,125.47 | 1.00% | 27,318,669.74 | 1.35% |
| Over 3 years | 41,487,932.64 | 2.71% | 25,762,888.12 | 1.28% |
| Total | 1,531,060,694.47 | -- | 2,021,119,950.95 | -- |
Notes ：
Nil.
（2）The ending balance of Prepayments owed by the imputation of the top five parties
As of June 30, 2018, the total amount of the top five companies in advance payments is RMB283,116,591.02 , accounting for 18.49% of the total ending balance of prepayments of advance payments.
Other notes：
7.Interest receivable
（1）Classification Interest receivable
In RMB
| Items | Amount in year-end | Amount in year-begin |
| Fixed deposit | 29,306,335.47 | 49,456,785.29 |
| Total | 29,306,335.47 | 49,456,785.29 |
（2）Important overdue interest
8.Dividend receivable
（1）Dividend receivable（2）Dividend receivable aging over 1 years
9. Other accounts receivable(1) Other accounts receivable disclosed by category
In RMB
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other Accounts receivable of individually withdrawing bad debt provision with significant individual amount | 9,171,033.44 | 0.66% | 9,171,033.44 | 100.00% | 9,056,821.74 | 0.83% | 9,056,821.74 | 100.00% | ||
| Other receivables subject to provision for bad debts on credit risk | 1,374,768,974.30 | 99.34% | 24,875,182.22 | 1.81% | 1,349,893,792.08 | 1,080,821,148.37 | 98.85% | 35,930,812.05 | 3.32% | 1,044,890,336.32 |
| characteristics basis | ||||||||||
| Other Accounts receivable of individually withdrawing bad debt provision with non-significant individual amount | 3,471,143.41 | 0.32% | 3,471,143.41 | 100.00% | ||||||
| Total | 1,383,940,007.74 | 100.00% | 34,046,215.66 | 2.46% | 1,349,893,792.08 | 1,093,349,113.52 | 100.00% | 48,458,777.20 | 4.43% | 1,044,890,336.32 |
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
| Other receivable（Unit） | End of term | |||
| Other receivable | Bad debt provision | Proportion | Reason | |
| KoreasunlongBusCo.Ltd | 9,171,033.44 | 9,171,033.44 | 100.00% | Notes：For the account receivable of Korea Sunlong Bus Co. Ltd-that the outstanding payment of goods has been long delayed due to the disruption of vehicle sales caused by the serious contraction of Korean Tourism Market and the Policy of Automobile Emission Standard, the company has adopted a variety of dunning measures, but has not yet achieved results. At the end of the period, the company conducted a separate impairment test for that. After being tested for impairment, the impairment loss was determined based on the difference of the present value of its future cash flow lower than its book value, making the provision for bad debts. |
| Total | 9,171,033.44 | 9,171,033.44 | -- | -- |
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □ Not applicable
In RMB
| Aging | Amount in year-end | ||
| Other account receivable | Provision for bad debts | Proportion(%) | |
| Withinitem 1 year | |||
| Within credit period | 321,164,774.89 | ||
| Within 1 year after credit period | 60,045,557.92 | 3,002,277.90 | 5.00% |
| Subtotal Within 1 year | 381,210,332.81 | 3,002,277.90 | |
| 1-2 years | 77,846,956.73 | 7,784,695.67 | 10.00% |
| 2-3 years | 41,371,145.56 | 12,411,343.66 | 30.00% |
| 3-4 years | 210,338.53 | 105,169.39 | 50.00% |
| Over 5 years | 1,571,695.60 | 1,571,695.60 | 100.00% |
| Total | 502,210,469.23 | 24,875,182.22 |
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicableOther Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√ Applicable □ Not applicable
In RMB
| Group name | Amount in year-end | Bad debt provision |
| Persona Returnable Insurance | 2,683,210.08 |
| Deposit | 862,419,394.97 | |
| Export tax refunds | 7,455,900.02 |
| Total | 872,558,505.07 |
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB7,115,436.63, the account collected or switches back amounting toRMB18,056,854.76.
Significant amount of reversed or recovered bad debt provision：
In RMB
| Name | Amount | Method |
| Sichuan Panxi Lingshan Tourism Investment Development Co., Ltd | 7,891,958.95 | Retracted |
| Total | 7,891,958.95 | -- |
(3) Other account receivables actually cancel after write-off
In RMB
| Items | Amount |
| Sales goods | 3,471,143.41 |
Of Which, Other receivable write-off：
In RMB
| Name | Nature of account receivable | Amount written-off | Reason for written -off | Verification procedures | Arising form related transactions(Y/N) |
| Foshan Sanshui Yuejing Automobile Services Co., Ltd. | Sales goods | 3,471,143.41 | Bankruptcy and liquidation of the enterprise is not expected to be recovered. | Internal approvals | No |
| Total | -- | 3,471,143.41 | -- | -- | -- |
Notes：
(4) Other account receivables category by nature of money
In RMB
| Naature | Ending book balance | Beginning book balance |
| Current account | 387,321,573.47 | 413,488,631.19 |
| Deposit | 862,419,394.97 | 592,692,531.83 |
| Project petty cash | 80,043,589.50 | 68,529,879.43 |
| Persona Returnable Insurance | 2,683,210.08 | 2,564,564.43 |
| Export tax refunds | 7,455,900.02 | 6,453,137.37 |
| Other | 44,016,339.70 | 9,620,369.27 |
| Total | 1,383,940,007.74 | 1,093,349,113.52 |
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| Sichuan City Construction No.5 Infrastructure Development Co., Ltd. | Deposit | 200,000,000.00 | Within credit period :80,000,000.00; Within 1 year after credit period:120,000,000.00 | 14.45% | |
| Sichuan Panxi Lingshan Tourism Investment Development Co., Ltd. | Enterprises fund transfers | 93,188,661.00 | Within credit period | 6.73% | |
| Chongqing Haolong Platinum Industry Co., Ltd. | Enterprises fund transfers | 69,163,611.11 | Within credit period | 5.00% |
| Sichuan Nengtou New City Anning Valley Tourism Investment and Development Co., Ltd. | Equity transfer | 51,970,000.00 | Within credit period | 3.76% | |
| Tibet transportation Dept. | Deposit | 35,154,463.70 | Within credit period :2,830,829.70; Within 1 year after credit period:32,323,634.00 | 2.54% | |
| Total | -- | 449,476,735.81 | -- | 32.48% |
10.Inventory
（1）Inventory types
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book Balance | Provision for bad debts | Book value | Book Balance | Provision for bad debts | Book value | |
| Raw materials | 1,829,971,611.21 | 22,577,740.86 | 1,807,393,870.35 | 2,210,317,909.51 | 23,802,249.09 | 2,186,515,660.42 |
| Processing products | 237,283,016.68 | 1,443,698.36 | 235,839,318.32 | 243,932,972.44 | 1,443,698.36 | 242,489,274.08 |
| Stock goods | 495,293,750.48 | 17,267,664.82 | 478,026,085.66 | 457,130,464.91 | 9,080,902.13 | 448,049,562.78 |
| Completed but unsettled assets caused by construction contract | 844,012,557.86 | 844,012,557.86 | 760,198,642.91 | 760,198,642.91 | ||
| Commissioned processing material | 20,173,731.74 | 20,173,731.74 | 13,306,134.19 | 13,306,134.19 | ||
| Development cost | 749,023,361.73 | 749,023,361.73 | 1,188,193,081.41 | 1,188,193,081.41 | ||
| Commissioned processing material | 23,770,009.81 | 23,770,009.81 | 65,383,734.21 | 65,383,734.21 | ||
| land arrangement | 52,644,562.38 | 52,644,562.38 | 10,346,187.21 | 10,346,187.21 | ||
| Total | 4,252,172,601.89 | 41,289,104.04 | 4,210,883,497.85 | 4,948,809,126.79 | 34,326,849.58 | 4,914,482,277.21 |
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information DisclosureGuidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No(2) Inventory depreciation reserve
In RMB
Items
| Items | Beginning of term | Increased in current period | Decreased in current period | End of term | ||
| Provision | Other | Transferred back | Other | |||
| Raw materials | 23,802,249.09 | 1,224,508.23 | 22,577,740.86 | |||
| Processing products | 1,443,698.36 | 1,443,698.36 | ||||
| Stock goods | 9,080,902.13 | 8,186,762.69 | 17,267,664.82 | |||
| Total | 34,326,849.58 | 8,186,762.69 | 1,224,508.23 | 41,289,104.04 | ||
Notes 1：Basis of provision for inventory revaluation reserve was cost and net realizable value, and reason of
inventory revaluation reserve provision was that final realizable net value was lower than cost.(3) Explanation on inventories with capitalization of borrowing costs included at ending balanceThe end of the development cost includes interest capitalization of 117,430,461.67 yuan.(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
| Items | Amount |
| Accumulated Incurred Cost | 6,320,487,912.95 |
| Accumulated Confirmed Gross Profit | 443,903,048.67 |
| Settlement Amount | 5,920,378,403.76 |
| Unliquidated Completed Assets Formed in the Construction Contract | 844,012,557.86 |
Other notes：
11. Holding assets for sale
In RMB
| Items | End book value | Fair value | Estimated disposal cost | Estimated disposal time |
| Long-term Equity Investment | 126,264,435.58 | 126,264,435.58 | December 31,2018 |
| Total | 126,264,435.58 | 126,264,435.58 | -- |
Other notes：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co., Ltd. acquires Sub-SubsidiaryMingshuo (Beijing) Electric Technology Co., Ltd., and the acquisition agreement stipulates that: Mingshuo (Beijin
g) Electric Technology Co., Ltd.’s original subsidiary, Mingshuo (Beijing) Trade Co., Ltd., Huzhou Mingwang Li
ghting Technology Co., Ltd
Pursuant to the agreement of the acquisition of sub-subsidiary company Daoshui 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 2018
12. Non current assets due within one year13. Other current assets
In RMB
| Items | Year-end balance | Year-beginning balance |
| USD exchange | 58,000,000.00 | 58,000,000.00 |
| Prepayment of income tax | 1,149,390,102.41 | 1,281,947,333.75 |
| Short –term Financing | 1,220,000,000.00 | |
| Total | 1,207,390,102.41 | 2,559,947,333.75 |
14. Available-for-sale financial assets(1) Available-for-sale financial assets
In RMB
| Items | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Available-for-sale Equity instrument | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
| Cost measured | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
| Total | 243,158,605.30 | 243,158,605.30 | 100,000,056.00 | 100,000,056.00 | ||
（2）Available-for-sale financial assets measured by cost（3）Available-for –sale financial assets measured at cost at the end of the year
In RMB
| Investee | Book balance | Provision for impairment | Percentage of shareholding in investees% | Cash dividends for the year | ||||||
| Balance of term | Increase | Decrease | End of term | Balance of term | Increase | Decrease | End of term | |||
| Beijing Yihuatong Technology Co., Ltd. | 100,000,056.00 | 100,000,056.00 | 5.51% | |||||||
| Beijing Shenwei Lixing Auto Service Co., Ltd. | 29,500,000.00 | 29,500,000.00 | 16.48% | |||||||
| China Metallurgical investment fund management (Beijing) Co., Ltd. | 113,658,549.30 | 113,658,549.30 | ||||||||
| Total | 100,000,056.00 | 143,158,549.30 | 243,158,605.30 | -- | ||||||
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provisionOther notes:
Notes 1: On July 10, 2017, the Company subscribed for 1,282,052.00 shares of the add-directional share issuance of theNew Third Board Beijing Yihuatong Technology Co., Ltd at the price of RMB 78.00 per share, with paying theconsideration of RMB 100,000,056.00. After the subscription, the company holds 5.51% stake of Beijing Yihuatong
Technology Co., Ltd. As it’s unable to obtain fair value, the estimate is measured at cost.
Notes 2:On January 15, 2018, the Company obtained 16.48% equity of Beijing Shenwei Shixing Automobile
Service Co., Ltd. by RMB 29.5 million, and as there was no quotation in the active market and its fair value couldn’t
be reliably measured, the subsequent measurement was carried out according to cost.
Notes 3:On January 27, 2018, the Company’s wholly-owned subsidiary-Tunghsu Construction Group Co., Ltd,
MCC Jianxin Investment Fund Management (Beijing) Co., Ltd., Beijing Dongfang Xujie Fund Management Co.,Ltd., China Metallurgical Group Co., Ltd., and Postal Savings Bank of China Chongqing Branch jointly signed the
“Private Investment Fund Contract of the Government and Social Capital Cooperation (PPP) Project of theMunicipal Pipeline Project of Funan New District of Hengshui City” and the “Private Investment Fund Contract of
Government and Social Capital Cooperation (PPP) of Municipal Road Engineering of Funan New District of
Hengshui City” ). As there was no quotation in the active market and its fair value couldn’t be reliably measured, the
subsequent measurement was carried out according to cost.15. Held-to-maturity investment(1) Held-to-maturity investment(2) Important held-to-maturity investment at period-end(3) Reclassify of held-to-maturity investment in the period16. Long-term account receivables
（1）Long-term account receivables
In RMB
| Items | End of term | Beginning of term | Range of rate | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | ||
| Sale of commodities by installment | 138,899,570.70 | 138,899,570.70 | 143,988,866.91 | 143,988,866.91 | 4.75%-20.56% | ||
| Total | 138,899,570.70 | 138,899,570.70 | 143,988,866.91 | 143,988,866.91 | -- | ||
(2) Long-term account receivables recognition terminated due to transfer of financial assets(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement17. Long-term equity investment
In RMB
| Investees | Opening balance | Increase/decrease | Closing balance | Closing balance of impairment provision | |||||||
| Addition investment | Deduction investment | Gains/loss under equity method | Other comprehensive income adjustments | Other changes in equity | Declaration of cash dividends or profit | Withdrawn impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associates | |||||||||||
| Tunghsu Group Finance Co., Ltd. | 2,004,062,204.94 | 6,471,235.43 | 2,010,533,440.37 | ||||||||
| Tunghsu (Deyang) Graphene Industry Development Fund Partnership (LP) | 20,436,738.11 | 30,264.58 | 20,467,002.69 | ||||||||
| Zibo Bus service Co., Ltd. | 32,678,813.57 | 2,448,937.71 | 35,127,751.28 | ||||||||
| CUHK international business factoring co., Ltd | 73,306,968.08 | 2,886,186.76 | 76,193,154.84 | ||||||||
| Subtotal | 2,130,484,724.70 | 11,836,624.48 | 2,142,321,349.18 | ||||||||
| Total | 2,130,484,724.70 | 11,836,624.48 | 2,142,321,349.18 | ||||||||
Other notes
At the beginning of the period, the long-term equity investment of the subsidiary Tunghsu Technology Co., Ltd.was RMB 155,434.20, and there was no change in the current period. Tunghsu Technology Co., Ltd. is registeredin Germany and is currently in the process of cancellation and liquidation. According to the relevant laws ofGermany, the cancellation of liquidation requires a two-year public notice period, during which the agency ismanaged by Tunghsu Optoelectronic Technology Co., Ltd. Unable to control the company, this period is notincluded in the scope of consolidation.
18. Investment real estate(1) Investment real estate by cost measurement
√ Applicable □Not applicable
In RMB
| Items | House, Building | Land use right | Construction in process | Total |
| I. Original price | ||||
| 1. Balance at period-beginning | 58,843,742.66 | 58,843,742.66 | ||
| 2.Increase in the current period | 9,513,629.19 | 9,513,629.19 | ||
| (1) Purchase | ||||
| （2）Inventory\Fixed assets\ Transferred from construction in progress | 9,513,629.19 | 9,513,629.19 | ||
| (3)Increased of Enterprise Combination | ||||
| 3.Decreased amount of the period | ||||
| （1）Dispose | ||||
| （2）Other out | ||||
| 4. Balance at period-end | 68,357,371.85 | 68,357,371.85 | ||
| II. Accumulated amortization | ||||
| 1.Opening balance | 614,302.80 | 614,302.80 | ||
| 2.Increased amount of the period | 812,939.04 | 812,939.04 | ||
| (1) Withdrawal | 614,302.80 | 614,302.80 | ||
| （2）Other transfers | 198,636.24 | 198,636.24 | ||
| 3.Decrease in the reporting period | ||||
| （1）Disposal | ||||
| （2）Other out | ||||
| 4.Closing balance | 1,427,241.84 | 1,427,241.84 | ||
| III. Impairment provision | ||||
| 1.Opening balance | ||||
| 2.Increase in the reporting period |
| （1）Withdrawal | ||||
| 3.Decrease in the reporting period | ||||
| （1）Disposal | ||||
| （2）Other out | ||||
| 4. Closing balance | ||||
| IV. Book value | ||||
| 1.Book value of the period-end | 66,930,130.01 | 66,930,130.01 | ||
| 2.Book value of the period-begin | 58,229,439.86 | 58,229,439.86 |
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership19. Fixed assets(1) List of fixed assets
In RMB
| Items | House, building | Machinery equipment | Transportations | Other equipment | Total |
| I. Original price | |||||
| 1. Balance at period-beginning | 2,113,818,494.63 | 11,507,570,974.31 | 122,144,132.07 | 185,704,090.92 | 13,929,237,691.93 |
| 2.Increase in the current period | 2,974,656.29 | 65,079,558.53 | 6,393,175.10 | 13,954,213.99 | 88,401,603.91 |
| (1) Purchase | 2,559,600.13 | 56,226,791.96 | 5,953,249.38 | 9,296,571.11 | 74,036,212.58 |
| （2）Transferred from construction in progress | 415,056.16 | 1,440,795.02 | 439,925.72 | 677,559.87 | 2,973,336.77 |
| (3)Increased of Enterprise Combination | 7,361,971.55 | 3,980,083.01 | 11,342,054.56 |
| （4）Investment real estate transfer | |||||
| （5）Sale-leasebacks | |||||
| （6）Other increase | 50,000.00 | 50,000.00 | |||
| 3.Decreased amount of the period | 10,927,023.65 | 43,952,557.36 | 4,468,678.34 | 4,262,534.50 | 63,610,793.85 |
| （1）Disposal | 1,413,394.46 | 43,952,557.36 | 4,468,678.34 | 4,262,534.50 | 54,097,164.66 |
| （2）Investment real estate transfer | 9,513,629.19 | 9,513,629.19 | |||
| （3）Sale-leasebacks | |||||
| （4）Other increase | |||||
| 4. Balance at period-end | 2,105,866,127.27 | 11,528,697,975.48 | 124,068,628.83 | 195,395,770.41 | 13,954,028,501.99 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 404,808,570.47 | 2,014,259,680.21 | 57,491,501.47 | 73,521,319.79 | 2,550,081,071.94 |
| 2.Increased amount of the period | 47,901,589.56 | 410,967,573.71 | 8,354,593.22 | 8,881,287.49 | 476,105,043.99 |
| (1) Withdrawal | 47,901,589.56 | 410,860,677.91 | 8,354,593.22 | 8,789,262.43 | 475,906,123.13 |
| (2)Increased of Enterprise Combination | 106,895.80 | 92,025.06 | 198,920.86 | ||
| （3）Investment real estate transfer | |||||
| （4）Sale-leasebacks | |||||
| （5）Other increase | |||||
| 3.Decrease in the reporting period | 910,487.15 | 8,539,821.51 | 1,437,885.02 | 459,968.08 | 11,348,161.76 |
| （1）Disposal | 711,850.91 | 8,539,821.51 | 1,437,885.02 | 459,968.08 | 11,149,525.52 |
| （2）Sale-leasebacks | |||||
| （3）Other decrease | 198,636.24 | 198,636.24 | |||
| 4.Closing balance | 451,799,672.88 | 2,416,687,432.42 | 64,408,209.67 | 81,942,639.20 | 3,014,837,954.17 |
| III. Impairment provision | |||||
| 1.Opening balance | 36,444.84 | 555,940.00 | 592,384.84 | ||
| 2.Increase in the reporting period |
| （1）Withdrawal | |||||
| 3.Decrease in the reporting period | |||||
| （1）Disposal | |||||
| 4. Closing balance | 36,444.84 | 555,940.00 | 592,384.84 | ||
| IV. Book value | |||||
| 1.Book value of the period-end | 1,654,066,454.39 | 9,111,974,098.22 | 59,104,479.16 | 113,453,131.21 | 10,938,598,162.98 |
| 2.Book value of the period-begin | 1,709,009,924.16 | 9,493,274,849.26 | 64,096,690.60 | 112,182,771.13 | 11,378,564,235.15 |
(2) Fixed assets temporarily idled(3) Fixed assets rented by finance leases
In RMB
| Items | Original book value | Accumulated depreciation | Accumulated depreciation | Book value |
| Platinum channel | 278,041,238.65 | 6,986,248.73 | 271,054,989.92 | |
| Machinery equipment | 1,388,411,273.94 | 270,572,104.36 | 1,117,839,169.58 |
(4) Fixed assets leased in the operating leases(5) Fixed assets without certificate of title completed
In RMB
| Items | Book value | Reason |
| Substation | 288,854.51 | Processing |
| Boiler room | 3,988,717.38 | Processing |
20. Project under construction(1)Project under construction
In RMB
| Items | Year-end balance | Year-beginning balance | ||||
| Book balance | Provision for | Book value | Book balance | Provision for | Book value | |
| devaluation | devaluation | |||||
| Wuhu LCD glass substrate production line project | 2,171,311,589.88 | 2,171,311,589.88 | 1,992,039,147.54 | 1,992,039,147.54 | ||
| Wuhan LCD glass substrate production line project | 14,645,209.52 | 14,645,209.52 | 14,645,209.52 | 14,645,209.52 | ||
| Kunshan Color film project | 508,106,857.14 | 508,106,857.14 | 363,976,794.49 | 363,976,794.49 | ||
| G8.5 glass substrate production line | 431,034,482.76 | 431,034,482.76 | ||||
| Polarizer project | 763,009,412.48 | 763,009,412.48 | ||||
| Surface display cover glass | 408,325,886.73 | 408,325,886.73 | 15,954,258.93 | 15,954,258.93 | ||
| Yingkou LCD glass substrate production line project | 425,964,281.66 | 425,964,281.66 | 410,371,760.10 | 410,371,760.10 | ||
| New energy bus and logistics vehicle production project | 1,309,658,561.00 | 1,309,658,561.00 | ||||
| Other | 133,094,554.30 | 133,094,554.30 | 118,135,266.36 | 118,135,266.36 | ||
| Total | 5,402,141,422.99 | 14,645,209.52 | 5,387,496,213.47 | 3,678,131,849.42 | 14,645,209.52 | 3,663,486,639.90 |
(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 | 7,576,520,000.00 | 1,992,039,147.54 | 179,272,442.34 | 2,171,311,589.88 | 95.49% | 95.49% | 739,441,815.06 | 44,760,030.13 | Raising Funds |
| substrate production line project | ||||||||||||
| Kunshan Color film project | 3,115,500,000.00 | 363,976,794.49 | 144,130,062.65 | 508,106,857.14 | 17.79% | 17.79% | Raising Funds | |||||
| Production Line for the 8.5th-generation Glass glass substrate | 6,950,000,000.00 | 431,034,482.76 | 431,034,482.76 | 14.64% | 14.64% | Raising Funds | ||||||
| Xuyou Sheet glass Phase I Project | 2,200,000,000.00 | 763,009,412.48 | 763,009,412.48 | Disposed | Other | |||||||
| Surface display cover glass | 1,497,380,000.00 | 15,954,258.93 | 392,371,627.80 | 408,325,886.73 | 27.84% | 27.84% | Raising Funds | |||||
| New energy bus and logistics vehicle production project | 2,955,074,600.00 | 1,309,658,561.00 | 1,309,658,561.00 | 47.94% | 47.94% | Raising Funds | ||||||
| Total | 24,294,474,600.00 | 3,134,979,613.44 | 2,456,467,176.55 | 763,009,412.48 | 4,828,437,377.51 | -- | -- | 739,441,815.06 | 44,760,030.13 | -- |
（3）Impairment provision of construction projects
21. Engineering Material22.Liquidation of fixed assets23. 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. Intangible assets
（1）Information
In RMB
| Items | Land use right | Patent right | Non patent technology | Software | Patent technology | Right of trade mark | Other | Total |
| I. Original price | ||||||||
| 1. Balance at period-beginning | 887,528,257.12 | 23,582,996.80 | 150,931,868.85 | 7,755,063.97 | 87,050,298.13 | 1,156,848,484.87 | ||
| 2.Increase in the current period | 118,694,555.29 | 53,938,713.41 | 14,445,166.67 | 3,994,161.16 | 191,072,596.53 | |||
| (1) Purchase | 118,694,555.29 | 250,000.01 | 3,974,827.83 | 122,919,383.13 | ||||
| （2）Internal R & D | ||||||||
| （3）Increased of Enterprise Combination | 53,688,713.40 | 14,445,166.67 | 19,333.33 | 68,153,213.40 | ||||
| (4)Investor investment | ||||||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal | ||||||||
| （2）Other | ||||||||
| 4. Balance at period-end | 1,006,222,812.41 | 77,521,710.21 | 165,377,035.52 | 11,749,225.13 | 87,050,298.13 | 1,347,921,081.40 | ||
| II. Accumulated amortization | ||||||||
| 1. Balance at period-beginning | 76,219,489.09 | 3,138,879.85 | 28,677,985.20 | 2,965,954.66 | 44,050,066.05 | 155,052,374.85 | ||
| 2. Increase in the current period | 11,476,283.19 | 1,668,516.73 | 8,282,595.52 | 786,998.72 | 21,445,707.04 | 43,660,101.20 | ||
| (1) Withdrawal | 11,476,283.19 | 1,221,110.79 | 7,921,466.35 | 786,423.71 | 21,445,707.04 | 42,850,991.08 | ||
| （2）Increased of Enterprise Combination | 447,405.94 | 361,129.17 | 575.01 | 809,110.12 | ||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal | ||||||||
| （2）Other | ||||||||
| 4. Balance at period-end | 87,695,772.28 | 4,807,396.58 | 36,960,580.72 | 3,752,953.38 | 65,495,773.09 | 198,712,476.05 | ||
| III. Impairment provision | ||||||||
| 1. Balance at period-beginning |
| 2. Increase in the current period | ||||||||
| (1) Withdrawal | ||||||||
| 3.Decreased amount of the period | ||||||||
| （1）Disposal | ||||||||
| 4. Balance at period-end | ||||||||
| 4. Book value | ||||||||
| 1.Book value at period -end | 918,527,040.13 | 72,714,313.63 | 128,416,454.80 | 7,996,271.75 | 21,554,525.04 | 1,149,208,605.35 | ||
| 2.Book value at period-beginning | 811,308,768.03 | 20,444,116.95 | 122,253,883.65 | 4,789,109.31 | 43,000,232.08 | 1,001,796,110.02 |
⑵Details of Land use right failed to accomplish certification of property
In RMB
| Items | Book value | Reason |
| Land use right | 70,964,030.64 | 50% outstanding |
26. Research and development expenditure
In RMB
| Items | Beginning balance | Increase in the period | Decrease in period | Ending balance | ||||
| Graphene and Lithium Battery Project | 3,883,495.16 | 3,883,495.16 | ||||||
| Magnolia lamp design project | 762,432.49 | 7,676.59 | 770,109.08 | |||||
| Landscape street lamp design project | 2,141,940.99 | 544,636.17 | 2,686,577.16 | |||||
| Distributed photovoltaic power plant project | 2,022,956.97 | 528,195.42 | 2,551,152.39 | |||||
| Low voltage distribution system project | 2,055,487.81 | 582,267.04 | 2,637,754.85 | |||||
| High voltage distribution system project | 3,096,837.78 | 792,293.21 | 3,889,130.99 | |||||
| Intelligent photovoltaic junction box | 914,598.09 | 264,391.71 | 1,178,989.80 | |||||
| Electric vehicle charging pile Project in 2017 | 519,955.68 | 556,235.87 | 1,076,191.55 | |||||
| EAS supply chain system | 1,002,691.08 | 1,002,691.08 | ||||||
| Development of main Control system for AC charging pile | 830,927.10 | 830,927.10 | ||||||
| High efficiency lighting project | 830,926.55 | 830,926.55 | ||||||
| High efficiency street lamp project | 836,864.94 | 836,864.94 | ||||||
| Jingang | 1,143,898.85 | 1,143,898.85 |
| Robot | ||||||||
| Total | 15,397,704.97 | 7,921,004.53 | 23,318,709.50 |
27. Goodwill(1) Original book value of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance | ||
| Mingshuo (Beijng) Electronic Technology Co., Ltd. | 32,783,882.96 | 32,783,882.96 | ||||
| Chenzhou Hongcheng Public Traffic Constriction Development Co., Ltd. | 10,163,443.61 | 10,163,443.61 | ||||
| Daosui Group Engineering Co., Ltd. | 40,095,298.31 | 40,095,298.31 | ||||
| Chuanglian Huatai(HK) Co., Ltd. | 722,450.89 | 722,450.89 | ||||
| Suzhou Tengda Optics Technology Co., Ltd. | 82,350,192.94 | 82,350,192.94 | ||||
| Guangxi Sunlong Automobile Manufacturing Co., Ltd . | 55,664,910.37 | 55,664,910.37 | ||||
| Shanghai Tanyuan Huigu New Material Co., Ltd. | 33,935,384.57 | 33,935,384.57 | ||||
| Shanghai Sunlong Bus Co., Ltd. | 2,331,962,577.34 | 2,331,962,577.34 | ||||
| Zhongcheng national construction co., Ltd. | 130,169,968.13 | 130,169,968.13 | ||||
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 66,201,670.16 | 66,201,670.16 | ||||
| Huaxi Nanchong Automobile Co., Ltd. | 56,773,762.72 | 56,773,762.72 | ||||
| Total | 2,587,678,140.99 | 253,145,401.01 | 2,840,823,542.00 |
（2）Impairment provision of goodwill
In RMB
| Name of the investees or the events formed goodwill | Opening balance | Increase | Decrease | Closing balance |
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwillimpairment losses:
Other notes:
The increase in goodwill at the end of the period compared to the beginning of the period was mainly due to the acquisition of subsidiaries Zhongcheng national construction co., Ltd. , Shenzhen Sanbao Innovation Intelligent Co., Ltd. And
Huaxi Nanchong Automobile Co., Ltd. in the current period.
28.Long-term amortization expenses
In RMB
| Items | Balance in year-begin | Increase at this period | Amortization balance | Other decrease | Balance in year-end |
| Building renovation | 20,884,579.02 | 7,773,533.85 | 9,874,189.85 | 8,816,276.17 | 9,967,646.85 |
| NEG Technology Use fee | 5,653,725.00 | 308,385.00 | 5,345,340.00 |
| Total | 26,538,304.02 | 7,773,533.85 | 10,182,574.85 | 8,816,276.17 | 15,312,986.85 |
29.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 | 347,775,330.45 | 69,202,590.32 | 361,268,489.05 | 72,770,445.79 |
| Not realized the internal profit | 2,098,364,756.73 | 336,844,649.16 | 2,184,936,479.37 | 350,438,261.98 |
| Deductible loss | 424,876,022.19 | 66,260,756.48 | 454,060,832.38 | 65,723,232.56 |
| Deferred income difference | 72,120,337.62 | 11,065,630.90 | 73,641,000.14 | 11,046,150.02 |
| Non-identical control enterprise | 9,519,323.16 | 1,007,829.65 | 8,652,114.93 | 783,147.37 |
| Projected liability | 32,515,694.09 | 8,128,923.52 | 38,543,627.93 | 9,635,906.98 |
| Advance quality margin | 80,746,536.90 | 10,659,353.58 | 117,878,085.38 | 16,420,648.06 |
| Total | 3,065,918,001.14 | 503,169,733.61 | 3,238,980,629.18 | 526,817,792.76 |
(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 | 336,100,199.64 | 62,295,616.96 | 349,818,170.15 | 60,149,328.74 |
| Total | 336,100,199.64 | 62,295,616.96 | 349,818,170.15 | 60,149,328.74 |
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
| Items | Trade-off between the | End balance of deferred | Trade-off between the | Opening balance of |
| deferred income tax assets and liabilities | income tax assets or liabilities after off-set | deferred income tax assets and liabilities at period-begin | deferred income tax assets or liabilities after off-set | |
| Deferred income tax assets | 503,169,733.61 | 526,817,792.76 | ||
| Deferred income liabilities | 62,295,616.96 | 60,149,328.74 |
(4)Details of income tax assets not recognized
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Deductible losses | 426,483,832.61 | 83,300,016.16 |
| Bad debt provision | 40,093.76 | 86,413.68 |
| Impairment of fixed assets | 1,935,234.19 | 1,935,234.19 |
| Fixed assets depreciation reserves | 36,444.84 | 36,444.84 |
| Provision for impairment of construction projects | 14,645,209.52 | 14,645,209.52 |
| Total l | 443,140,814.92 | 100,003,318.39 |
(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 | 3,000,263.93 | 2,986,414.60 | |
| 2019 | 5,846,342.08 | 5,860,191.41 | |
| 2020 | 3,470,816.94 | 3,751,170.54 | |
| 2021 | 9,394,061.76 | 32,084,711.54 | |
| 2022 | 17,012,060.02 | 38,617,528.07 | |
| 2023 | 37,247,797.62 | 0.00 | |
| 2024 | 383,871.35 | 0.00 | |
| 2025 | 3,421,161.58 | 0.00 | |
| 2026 | 10,452,118.86 | 0.00 | |
| 2027 | 8,444,562.81 | 0.00 | |
| 2028 | 327,810,775.66 | 0.00 | |
| Total | 426,483,832.61 | 83,300,016.16 | -- |
30 .Other non-current assets
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Prepaid land fund | 6,590,000.00 | |
| Prepaid engineering equipment | 282,006,939.10 | 299,812,939.48 |
| Total | 282,006,939.10 | 306,402,939.48 |
31.Short –term loans（1）Short-term loans by category
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Pledge loan | 558,370,000.00 | 320,666,279.80 |
| Mortgage loan | 292,900,000.00 | 374,600,000.00 |
| Guarantee loan | 5,765,000,000.00 | 4,997,500,000.00 |
| Credit loan | 196,514,698.87 | 20,060,102.40 |
| Total | 6,812,784,698.87 | 5,712,826,382.20 |
Notes：
Notes 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.Notes 2.At the end of the period, the company's credit loans of RMB 196,514,698.87.Notes 3. The final mortgage was RMB 292,900,000.00.
（1）The sub-subsidiary Shenzhen Xinyintong Technology Co., Ltd via mortgage loan borrowed RMB
22,000,000.00, with that Zhang Lixia provided the house property of No. 5000615797 Shen Fangdizi and ZhongYuhua provided the house property of No. 3000415955 Shen Fangdizi as the collateral, and Zeng Jiankai, ZhongYuhua and Zhang Lixia provided the joint and several liability guarantee
（2）The sub-subsidiary Daosui Group Engineering Co., Ltd via mortgage loan borrowed RMB
120,900,000.00, thereinto, a: for RMB 53,000,000.00 , the guarantors were Yang Jianzhong and You Shaoguo,with the mortgage of the land of Mianguoyong (2014) No. 0227 and the No. 0358 house property of MianningCounty Fangquanzheng Zi of Sichuan Panxi Lingshan Tourism Investment Development Co., Ltd; b: For RMB26,000,000.00, the guarantors were Yang Jianzhong and You Shaoguo, with the mortgage of the No. 0358 houseproperty of Mianning County Fangquanzheng Zi, the No. 45, No. 46, No. 48 to No. 52 house properties of RealEstate Certificate of Yue Limited Liability Zi and the lands of No.2016-1, No. 2016-2, No. 2016-4 to No. 2016-8of Yueguoyong (2013) of Huaying Minghua Trading co., Ltd; c: Of which 2 were 27500000.00 yuan, theguarantors were Yang Jianzhong and You Shaoguo, with the mortgage of No. 011160, No. 011161 and No. 011164house properties of Huafangquanzheng, the No. 200700978-200700984 house properties of Guangfangquanzhengand the No.384 land of Huaguoyong (2012); d: for RMB 14,400,000.00, the guarantor was Yang Jianzhong, withthe mortgage of No.011160, No. 011161 and No. 011164 house properties of Huafangquanzheng and theNo.20070
（3） The Sub-subsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd via mortgage loan borrowed RMB
150,000,000.00, with the maximum amount guarantee provided upon using the Fuzhou Xufu Optoelectronic
Technology Co., Ltd’s own plant and equipment;Notes 4： Guarantee loan was RMB 5,765,000,000.00
Whereby,
（1） Tunghsu Group Co., Ltd offered RMB 400,000,000.00 joint liability guarantee to The Company, LiZhaoting offered RMB960,000,000.00 joint liability guarantee to the Company，Tunghsu Group and Li Zhaoting
offered RMB1,150,000,000.00 Guarantee to the company,Tunghsu Group,Li Zhaoting and Li Qing offered RMB1,280,000,000.00 Guarantee to the Company
（2） Tunghsu Group , The company and Li Zhaoting offered RMB 80,000,000.00 joint liability guarantee tothe Subsidiary –Sichuan Xuhong Optoelectronic Technology Co., Ltd.
（3） Tunghsu Group Offered RMB250,000,000.00 Joint liability guarantee to the subsidiary-ZhengzhouXufei Optoelectronic Technology Co., Ltd.，Tunghsu Group and Li Zhaoting Offered RMB 280,000,000.00
guarantee to the Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co., Ltd., The Company OfferedRMB50,000,000.00 guarantee to Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co.,Ltd.,Tunghsu Group Offered RMB250,000,000.00 Joint liability Guarantee to Sub- Subsidiary-Suzhou Tengda
Potics Technology Co., Ltd.，The Company Offered RMB20,000,000.00 guarantee to Sub- subsidiary- Suzhou
Tengda Potics Technology Co., Ltd.
（4） The Company offered RMB 245,000,000.00 joint liability guarantee to the subsidiary- Wuhu Tunghsu
Optoelectronic Technology Co., Ltd.
（5） The Company offered RMB205,000,000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic
Technology Co., Ltd., The Company and Li Zhaoting offered RMB210,000,000.00 guarantee to the subsidiary-Wuhu Tunghsu Optoelectronic Technology Co., Ltd.,Tunghsu Group and The company offeredRMB200,000,000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic Technology Co., Ltd.
（6） Tunghsu offered RMB935,000,000.00 joint liability guarantee to the Subsidiary –Shanghai Sunlong
Bus Co., Ltd.,Tunghsu Group and Li Zhaoting offered RMB100,000,000.00 joint liability guarantee to the
Subsidiary –Shanghai Sunlong Bus Co., Ltd.,Tunghsu Group and The company offered RMB50,000,000.00 jointliability guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd., The company offered RMB100,000,000.00guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.,Tunghsu Group offered RMB245,000,000.00 jointliability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd., The company offeredRMB100,000,000.00 guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.,ShanghaiSunlong Bus ffered RMB30,000,000.00 joint liability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile
Manufacturing Co., Ltd .
Notes 5：Final pledge loan amount was RMB558,370,000.00.
Including: The pledge borrowing of RMB142,500,000.00 was provided a pledge guarantee by Wuhu TunghsuOptoelectronic Equipment Technology Co., Ltd using the term deposit certificate of RMB 150,000,000.00;The pledge borrowing of RMB180,000,000.00 was provided a pledge guarantee by Sub--Subsidiary Hunan TunghsuWeigao Medical instrument Co., Ltd using the term deposit certificate of RMB100,000,000.00; Tunghsu Groupprovides joint liability guarantee; The pledge borrowing of RMB69,000,000.00 was provided a pledge guarantee by
Sub—Subsidiary Daoshui Group Co., Ltd using the term deposit certificate of RMB72,010,000.00; The pledge
borrowing of RMB142,500,000.00 was provided a pledge guarantee by Wuhu Tunghsu Optoelectronic TechnologyCo., Ltd using the term deposit certificate of RMB150,000,000.00; The pledge borrowing of RMB24,370,000.00 was
provided a pledge guarantee by Sub—Subsidiary Shenzhen Xinyingtong Technology Co., Ltd using the term deposit
certificate of RMB24,370,000.00;(2) Situation of Overdue Outstanding Short-Term Borrowing
Final overdue outstanding short-term borrowing was zero.
32. Financial liabilities measured at fair value through current profit and loss33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Commercial acceptance | 344,370,940.00 | 237,603,082.40 |
| Bank acceptance bills | 654,896,156.40 | 826,294,597.49 |
| Total | 999,267,096.40 | 1,063,897,679.89 |
Amount due in next fiscal period is RMB0.00.35. Account payable
（1）Account payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Engineering fund | 1,392,966,173.99 | 1,095,153,995.50 |
| Material fund | 3,191,668,273.67 | 3,433,073,854.24 |
| Transportation expenses | 13,759,120.88 | 11,172,407.72 |
| Technology Service | 5,495,219.34 | 6,069,737.32 |
| Other | 86,849,717.14 | 91,519,044.87 |
| Total | 4,690,738,505.02 | 4,636,989,039.65 |
（2）Significant accounts payable that aged over one year
In RMB
| Items | Balance in year-end | The reason for not repaid or carried forward |
| Wuxi Jingke automobile Part Co., Ltd. | 18,121,142.66 | Failure to meet agreed terms and duration of payment |
| Jiangsu Chengyi Technology Co., Ltd. | 11,328,581.84 | Failure to meet agreed terms and duration of payment |
| Total | 29,449,724.50 | -- |
36.Advance account
（1）Advance account
In RMB
| Items | Closing balance | Opening balance |
| Goods | 394,669,033.49 | 635,268,325.76 |
| Engineering fund | 581,688,484.32 | 1,019,869,237.87 |
| Total | 976,357,517.81 | 1,655,137,563.63 |
(2) Accounts payable with major amount and aging of over one year
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period37. Employee compensation payable(1)Classification of employee compensation payable
In RMB
| Items | Balance in year-begin | Increase at this period | Decrease at this period | Balance in year-end |
| I. Short –term wages | 205,475,973.45 | 595,147,895.45 | 640,164,409.72 | 160,459,459.18 |
| II. Welfare after waving of position-fixed provision scheme | 2,221,388.80 | 30,526,036.84 | 30,678,815.74 | 2,068,609.90 |
| III. Termination benefit | 633,692.10 | 633,692.10 | ||
| Total | 207,697,362.25 | 626,307,624.39 | 671,476,917.56 | 162,528,069.08 |
（2）Short-term remuneration
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| 1.Wages, bonuses, allowances and subsidies | 158,272,400.10 | 541,739,195.25 | 589,129,164.56 | 110,882,430.79 |
| 2.Employee welfare | 54,843.85 | 15,315,888.40 | 15,327,038.59 | 43,693.66 |
| 3. Social insurance premiums | 1,209,437.58 | 15,908,948.99 | 15,918,971.63 | 1,199,414.94 |
| Including：Medical insurance | 1,043,116.93 | 13,903,813.19 | 13,891,643.80 | 1,055,286.32 |
| Work injury insurance | 66,261.87 | 964,919.36 | 984,415.41 | 46,765.82 |
| Maternity insurance | 100,058.78 | 1,040,216.44 | 1,042,912.42 | 97,362.80 |
| 4. Public reserves for housing | 986,360.29 | 13,192,401.82 | 13,532,528.32 | 646,233.79 |
| 5.Union funds and staff education fee | 44,804,730.41 | 5,765,542.19 | 3,069,334.05 | 47,500,938.55 |
| 8.Other | 148,201.22 | 3,225,918.80 | 3,187,372.57 | 186,747.45 |
| Total | 205,475,973.45 | 595,147,895.45 | 640,164,409.72 | 160,459,459.18 |
（3）Defined contribution plans listed
In RMB
| Items | Balance in year-begin | Increase in this period | Payable in this period | Balance in year-end |
| 1. Basic old-age insurance premiums | 2,080,192.50 | 29,094,532.72 | 29,231,356.98 | 1,943,368.24 |
| 2.Unemployment insurance | 141,196.30 | 1,431,504.12 | 1,447,458.76 | 125,241.66 |
| Total | 2,221,388.80 | 30,526,036.84 | 30,678,815.74 | 2,068,609.90 |
38.Tax Payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| VAT | 95,390,421.31 | 60,982,068.15 |
| Enterprise Income tax | 177,344,409.38 | 170,094,083.01 |
| Individual Income tax | 31,738,325.42 | 30,271,740.75 |
| City Construction tax | 6,198,035.13 | 7,530,509.66 |
| Business Tax | 3,789,219.75 | 3,789,219.75 |
| Land VAT | 123,402,213.97 | |
| House property tax | 8,631,784.38 | 8,631,413.12 |
| Land use tax | 1,616,902.49 | 1,802,208.59 |
| Educational surtax | 4,547,924.65 | 6,453,814.04 |
| Stamp Tax | 504,198.36 | 3,666,280.55 |
| Output tax to be transferred | 850,654.08 | 1,758,082.34 |
| Total | 454,014,088.92 | 294,979,419.96 |
39. Interest payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term loans interest of installment and interest charge | 38,757,921.27 | 29,020,856.73 |
| Enterprise bond interest | 147,856,644.87 | 66,833,709.29 |
| Short term loan interest payable | 10,172,452.28 | 11,340,581.18 |
| Total | 196,787,018.42 | 107,195,147.20 |
40. Dividends payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Common dividends | 313,488,825.93 | 35,000,000.00 |
| Total | 313,488,825.93 | 35,000,000.00 |
41.Other payable
（1）Disclosure by nature
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Related party current account | 211,378,080.73 | 475,619,957.85 |
| Project Current account | 1,033,083,932.83 | 727,962,152.15 |
| Deposit | 323,299,588.22 | 332,892,760.85 |
| Government Subsidy | 15,000,000.00 | 15,000,000.00 |
| Social security withholding | 1,508,838.35 | 1,823,102.07 |
| Engineering fund | 0.00 | 55,246,500.11 |
| Stock right fund | 195,500,000.00 | 252,444,235.97 |
| Restricted stock repurchase obligations | 4,422,320.00 | 4,422,320.00 |
| Other | 17,327,128.99 | 22,109,862.88 |
| Total | 1,801,519,889.12 | 1,887,520,891.88 |
(2) Other payables with large amount and aging of over one year42. Divided into liability held for sale43.Non-current liabilities due within 1 year
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term loans due within 1 year | 3,298,395,973.96 | 4,196,242,686.59 |
| Long-term Account payable due within 1 year | 1,041,049,457.67 | 801,679,583.06 |
| Deferred income due within 1 year | 34,290,762.19 | 47,686,486.80 |
| Total | 4,373,736,193.82 | 5,045,608,756.45 |
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,45.Note 3: long-term account receivable due within one year could be referred to Note VII,47.Note 4: Deferred income due within one year could be referred to Note VII,51.
44.Other current liabilities
In RMB
| Items | Closing balance | Opening balance |
| USD exchange | 66,166,000.00 | 65,342,000.00 |
| For resale tax | 93,819,427.25 | 79,012,267.85 |
| Financing | 82,800,911.12 | |
| Total | 159,985,427.25 | 227,155,178.97 |
45. Long-term loan(1) Category of long-term loan
In RMB
| Items | Closing balance | Opening balance |
| Pledge loans | 450,000,000.00 | 950,000,000.00 |
| Mortgage loans | 3,619,711,596.66 | 4,096,235,604.06 |
| Guarantee loans | 3,052,216,666.62 | 4,359,733,333.30 |
| Less ：Long-term loan due 1 year | -3,298,395,973.96 | -4,196,242,686.59 |
| Total | 3,823,532,289.32 | 5,209,726,250.77 |
Notes：
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 3,052,216,666.62 is both the mortgage loan and the guarantee loan, reclassified
into the non-current liabilities due within one year RMB 2,253,216,666.62.
（1）RMB 1,414,650,000.00 borrowings to provide the joint guarantee,, of which RMB 1,299,650,000.00
was reclassified to non-current liabilities due within one year; Tunghsu Group Co., Ltd and Li Zhaoting provided thejoint and several guarantee for the company's borrowings of RMB740,666,666.62, of which RMB 644,666,666.62was reclassified to non-current liabilities due within one year; Tunghsu Group Co., Ltd provided the joint and severalguarantee for the company's borrowings of RMB194,000,000.00, of which of 194,000,000.00 was reclassified tonon-current liabilities due within one year; Tunghsu Group Co., Ltd, Tunghsu Optoelectronics Investment Co., Ltd andLi Zhaoting provided the guarantee for the Company.
（2）Tunghsu Group Co., Ltd and Tunghsu Optoelectronic Technology Co., Ltd provided the joint and several
guarantee for RMB 100,000,000.00 for Fuzhou Tunghsu Optoelectronic Technology Co., Ltd; Provide joint guarantees,
which are reclassified to non-current liabilities of RMB 100,000,000.00 due within one year.。Nippon Electric Glass Co.,
Ltd provided the joint and several guarantee for the sub-subsidiary Fuzhou Tunghsu Optoelectronic Technology Co.,
Ltd’s borrowings of RMB 188,000,000.00.（3）Meishan Shengtong Financing Guarantee Co., Ltd provided the joint and several guarantee for Daosui GroupEngineering Co., Ltd’s borrowings of RMB 14,900,000.00, of which RMB 14,900,000.00 was reclassified to
non-current liabilities due within one year;
Notes 3: The mortgage borrowings of RMB 3,619,711,596.66 were both mortgage borrowings and guaranteeborrowings, of which RMB1,045,179,307.34 was reclassified to non-current liabilities due within one year.
Thereinto: (1)For the borrowings of RMB584,699,600.00, RMB213,233,200.00 was reclassified to non-currentliabilities due within one year, and the collateral and the guarantor: a: The guarantor Tunghsu Group Co., Ltd providedthe joint and several guarantee for the borrowings equivalent to RMB 450 million under this item and the interest,penalties, compound interest, compensation, liquidated damages, damages, and expense of realization of creditor'srights arising from that amount to the lender; b: the assessment value of the collateral-the above-ground buildings andthe equipment(including the 4 precious metal lines of platinum channel) were RMB1,055,713,019.27.
（2）For the loan of 455,000,000.00 yuan, 35,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the mortgage and pledge guarantee of the loan: a. the property of YFQZYZ No. F20150301716 , YFQZYZ No. F 20150301767 , YFQZYZ No. F20150301734, YFQZYZ No. F20150301760,YFQZYZ No. F20150301711, YFQZYZ No. F20150301725, YFQZYZ No. F20150301769 and YFQZYZ No.F20150301747 of Tunghsu (Yingko) optoelectronic Technology Co., Ltd. are used as collateral; b. TunghsuGroup Co., Ltd. provides 40,000,000 shares pledge joint and several guarantee for Tunghsu (Yingko)optoelectronic Technology Co., Ltd.
（3）For the borrowings of 525,000,000.00 yuan, 375,000,000.00 yuan was reclassified to non-current liabilities
due within one year, and the collateral and the guarantor: a: The mortgagor Shijiazhuang Xuxin OptoelectronicTechnology Co., Ltd used the can-be-mortgaged assets formed by the project including the land use right, buildings andmachinery and equipment (including three precious metal lines of platinum channel) for providing the mortgageguarantee; b: Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing provide the guarantee.
（4）For the loan of 1,312,500,000.00 yuan, 375,000,000.00 yuan will be reclassified into non-current
liabilities due within one year, the collateral and guarantor of the loan are: a. eight precious metal platinumchannel assets owned by Wuhu Tunghsu optoelectronic Technology Co., Ltd. are used to provide mortgageguarantee; b. the company provides joint and several liability guarantee for the subsidiary company of WuhuTunghsu optoelectronic Technology Co., Ltd.
（5）For the loan of 272,000,000.00 yuan, 136,000,000.00 yuan will be reclassified into non-current
liabilities due within one year, the collateral and guarantor of the loan are: a. Wuhu Tunghsu optoelectronicTechnology Co., Ltd. will provide mortgage guarantee through mortgaging 202 mu of state-owned land use rights,the factory building after the completion of the project and 2 precious metal platinum channels; b. the guarantor ofthe loan is Wuhu Construction Investment Co., Ltd.
（6）For the loan of 370,000,000.00 yuan, 80,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: a. WK(G)GY 2013 No. 020, WK(G)GY 2013 No.021, WK(G)GY 2014 No. 008 land use right mortgage owned by Wuhu Tunghsu Photoelectricity EquipmentTechnology Co., Ltd. and fixed assets after the completion of the project; b. the company provides joint andseveral liability guarantee for its subsidiary of Wuhu Tunghsu Photoelectricity Equipment Technology Co., Ltd.
（7）For the loan of 50,275,333.28 yuan, 5,801,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: the joint and several liability guarantee isprovided by Zeng Jiankai and his spouse zhong Yuhua, and the collateral is the housing mortgage provided byShenzhen Xinyingtong Technology Co., Ltd.
（8）For the loan of 266,663.38 yuan, 175,107.34 yuan will be reclassified into non-current liabilities due
within one year, the collateral and guarantor of the loan are: Zeng Jiankai provides joint and several liabilityguarantees, and provides vehicles worth 729,238.00 yuan as collateral.
（9）For the loan of 30,000,000.00 yuan, 30,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: a. the mortgaged property is property worth16,000,000 yuan of Yongfangquanzheng Zi No. 02674664.b. Gui (2015) Nanning Real Estate Right No. 0000039Land Certificate which worth 20,000,000; c. Ye Jianhui and Yang Xiangyang provide joint and several liabilityguarantee.
（10）For the loan of 19,970,000.00 yuan, 19,970,000.00 yuan will be reclassified into non-current liabilities
due within one year, the mortgage loan is both a mortgage loan and a guarantee loan. The guarantors are YangJianzhong and Hong Shuping, and the collateral is Yu (2016) Hechuan District Real Estate Right No. 000587685real estate of Chongqing Haolong Platinum Industrial Co., Ltd.
Notes4：the pledged loan of 450,000,000.00 yuan is both the pledged loan and the guaranteed loan, and 0.00 yuan
is reclassified into the non-current debt due within one year. The Pledged and guarantor of the loan are: a. thecollateral is the 5 million circulating shares of Tunghsu Photoelectricity Technology Co., Ltd. held by TunghsuGroup Co., Ltd. and the corresponding equity of 178,750,000.00 yuan of pain-in capital contributed by TunghsuIntelligent Technology Co., Ltd. held by Tunghsu Group Co., Ltd.; b. Tunghsu Group Co., Ltd. and Li Zhaotingwill provide the guarantee.
Other notes including interest rate range:
Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.17%.
46.Bond payable
（1）Bond payable
In RMB
| Items | Balance in year-end | Balance in year-begin |
| 15 Tunghsu bonds | 950,657,303.79 | 993,310,440.39 |
| Mid-term note I | 2,984,051,742.33 | 2,981,914,109.61 |
| Mid -term note II | 1,691,108,327.11 | 1,689,901,540.52 |
| Total | 5,625,817,373.23 | 5,665,126,090.52 |
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
In RMB
| 15 Tunghsu bonds | 1,000,000,000.00 | 2015.5.19 | 5 years | 1,000,000,000.00 | 993,310,440.39 | 60,000,000.00 | 1,304,163.40 | 43,957,300.00 | 950,657,303.79 | |||
| Mid-term note I | 3,000,000,000.00 | 2016.11.17 | 5 years | 3,000,000,000.00 | 2,981,914,109.61 | 2,137,632.72 | 2,984,051,742.33 | |||||
| Mid -term note II | 1,700,000,000.00 | 2016.12.02 | 5 years | 1,700,000,000.00 | 1,689,901,540.52 | 1,206,786.59 | 1,691,108,327.11 | |||||
| Total | -- | -- | -- | 5,700,000,000.00 | 5,665,126,090.52 | 60,000,000.00 | 4,648,582.71 | 43,957,300.00 | 5,625,817,373.23 |
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debtTable of changes in financial instruments such as preferred stock and perpetual debt
Other notes
Notes 1: On September 8, 2016, the 8th board of directors meeting of the company examined and approved the
company’s application for registration of the medium-term notes issued no more than RMB 4.7 billion. The
accepting institution was National Association of Financial Market Institutional Investors. On September 26, 2016,the extraordinary shareholders' general meeting adopted the bill on the registration and issuance of medium-termnotes. RMB 4.7 billion medium-term notes was divided into 2 phases in 2016. Among them: total amount of thefirst phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 3 billion. Total amount of thesecond phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 1.7 billion.
Notes 2: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. Long-term payable(1) Long-term payable listed by nature of the account
In RMB
| Items | Balance in year-end | Balance in year-begin |
| Long-term payable | 4,800,919,822.81 | 4,935,555,693.56 |
| Less：Unconfirmed financing costs | 783,029,636.38 | 857,567,856.06 |
| Less：Port due Within 1 year | 1,041,049,457.67 | 801,679,583.06 |
| Total | 2,976,840,728.76 | 3,276,308,254.44 |
Other notes：
| Name of lessor | Initial amount | Increase in the period | Repayment amount | Closing balance |
| Beijing Cultural Technology Finance Leasing Co., Ltd. | 167,086,894.20 | 55,695,631.40 | 111,391,262.80 | |
| Beijing Guozi Finance Leasing Co., Ltd. | 202,205,984.26 | 28,886,569.18 | 173,319,415.08 | |
| Haitong Hengxin International Leasing Co., Ltd. | 287,692,310.00 | 57,538,462.00 | 230,153,848.00 | |
| Ligen Finance Leasing(Shanghai) Co., Ltd. | 54,449,784.17 | 18,149,928.04 | 36,299,856.13 | |
| Jiangsu Runxing Finance Leasing Co., ltd. | 224,000,000.00 | 8,000,000.00 | 216,000,000.00 | |
| Lujin Shenhua Finance Leasing（Shanghai） Co., Ltd. | 137,134,391.04 | 17,141,798.88 | 119,992,592.16 | |
| Xian Runyin Finance Leasing Co., Ltd. | 597,659,736.26 | 57,517,019.88 | 540,142,716.38 | |
| Dongyin Finance leasing (Tianjing)Co., Ltd. | 83,196,130.50 | 27,732,043.50 | 55,464,087.00 | |
| Chengdu Huaming Finance leasing Co., Ltd | 1,087,051,918.75 | 1,087,051,918.75 | ||
| Chengyu Finance Leasing Co., Ltd. | 59,056,693.20 | 13,174,635.21 | 45,882,057.99 | |
| Sichuan Tianfu Finance Leasing Co., Ltd. | 52,857,785.54 | 5,682,233.61 | 47,175,551.93 | |
| Hebei Finance Leasing Co., ltd. | 30,492,852.61 | 15,160,194.28 | 15,332,658.33 | |
| Wanjiang Finance Leasing Co., Ltd. | 1,168,483,194.45 | 25,785,833.33 | 1,142,697,361.12 | |
| Huayun Finance Leasing Co., Ltd. | 234,847,209.70 | 26,284,719.96 | 208,562,489.74 |
| Hubei Finance Leasing Co., Ltd. | 331,846,944.60 | 55,307,824.10 | 276,539,120.50 | |
| Hengqin Jintou International Finance Leasing Co., Ltd. | 217,493,864.28 | 36,248,977.38 | 181,244,886.90 | |
| Shandong Expressway Global Financing Leasing Co., Ltd. | 313,670,000.00 | 313,670,000.00 | ||
| Total | 4,935,555,693.56 | 313,670,000.00 | 448,305,870.75 | 4,800,919,822.81 |
Notes: Tunghsu Group Co., Ltd. offered a guarantee of Financing Leasing at RMB 1,056,813,432.82 ,Tunghsu Group Co., Ltd, Li Zhaoting offered a guarantee of Financing Leasing at RMB 208,471,400.97. TunghsuGroup Co., Ltd, Li Zhaoting and Li Qing offered a guarantee of Financing Leasing at RMB 802,200,013.06.
The company offered a guarantee of Financing Leasing at RMB 723,000,000.00.
48. Long-term employee salary payable
（1）Long-term employee salary payable
(2) Changes of defined benefit plans49. Specific payable50. Estimates liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin | Rreason |
| Lispendens | 32,515,694.09 | 38,543,627.93 | |
| Product guarantee | 80,746,536.90 | 117,878,085.38 | |
| Total | 113,262,230.99 | 156,421,713.31 | -- |
51.Deferred income
In RMB
| Items | Beginning of term | Increased this term | Decreased this term | End of term | Reason |
| Govemment Subsidy | 601,213,644.42 | 10,500,000.00 | 22,295,047.03 | 589,418,597.39 | |
| Less ：Government subsidies due within one year | -36,478,840.45 | 2,824,600.01 | 636,521.72 | -34,290,762.16 | |
| Not realized after sale rental return | 38,763,460.00 | 38,763,460.00 | |||
| Less：Unrealized customer service due | -11,207,646.55 | 11,207,646.55 |
| within 1 year rent to profit or loss | |||||
| Total | 592,290,617.42 | 24,532,246.56 | 61,695,028.75 | 555,127,835.23 | -- |
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 | 25,438,800.00 | 1,122,300.00 | 24,316,500.00 | Related to assets | ||||
| Grant of Industry Revitalizatio n and Technology Reconstructio n Project | 2,644,444.61 | 116,666.64 | 2,527,777.97 | Related to assets | ||||
| Grant of Glass-tube Secondary Environment al Protection | 0.00 | Related to assets | ||||||
| Technical reconstruction | 2,666,666.65 | 133,333.34 | 2,533,333.31 | Related to assets | ||||
| Grant of Glass Substrate Project | 9,999,999.94 | 500,000.00 | 9,499,999.94 | Related to assets | ||||
| Industry Development Fund | 4,666,666.65 | 233,333.34 | 4,433,333.31 | Related to assets | ||||
| Project finance discount | 313,333.37 | 15,666.66 | 297,666.71 | Related to assets | ||||
| Grant of Industry Revitalizatio | 71,668,666.71 | 3,257,666.66 | 68,411,000.05 | Related to assets |
| n and Technology Reconstructio n Project | ||||||||
| 2013 Provincial strategic emerging industries of special grant funds | 4,250,000.04 | 166,666.66 | 4,083,333.38 | Related to assets | ||||
| Technology reconstructi on Special funds | 28,822,333.32 | 1,078,000.00 | 27,744,333.32 | Related to assets | ||||
| Investment and Subsidies of “Double Hundred Plan” Project granted by the People's Government of Henan Province | 1,783,333.33 | 100,000.02 | 1,683,333.31 | Related to assets | ||||
| TFT glass substrate technology R& D fund | 89,166.77 | 4,999.98 | 84,166.79 | Related to assets | ||||
| TFT glass substrate project Subsidy | 5,944,444.43 | 333,333.36 | 5,611,111.07 | Related to assets | ||||
| Investment and Subsidies within Budget for Technological Transformation Project by National | 8,322,222.23 | 466,666.68 | 7,855,555.55 | Related to assets |
| Development and Reform Commission and the Ministry of Industry and Information Technology | ||||||||
| TFT glass substrate project Subsidy | 11,888,888.91 | 666,666.66 | 11,222,222.25 | Related to assets | ||||
| Subsidy Major Scientific and Technical Projects by Finance Bureau of Zhengzhou City | 594,444.43 | 33,333.36 | 561,111.07 | Related to assets | ||||
| Financial Supports for National Key Industry and Technical Transformation on Projects Granted by the Municipal Finance Bureau | 8,322,222.23 | 466,666.68 | 7,855,555.55 | Related to assets | ||||
| Financial Supports for National Key Industry and Technical Transformation on Projects Granted by the Municipal | 4,161,111.10 | 233,333.34 | 3,927,777.76 | Related to assets |
| Finance Bureau | ||||||||
| Funds for Independent Innovation of Provincially Supported Enterprises | 3,566,666.71 | 199,999.98 | 3,366,666.73 | Related to assets | ||||
| Supporting Funds on Finance Discounts | 1,188,888.91 | 66,666.66 | 1,122,222.25 | Related to assets | ||||
| Funds for Education, Science and Culture Granted by the Finance Bureau | 891,666.71 | 49,999.98 | 841,666.73 | Related to assets | ||||
| Supporting Funds for Industrial Structure -adjusting Projects Granted by the Regional Finance Bureau | 1,742,222.16 | 93,333.36 | 1,648,888.80 | Related to assets | ||||
| Industry discount and expenses | 1,004,444.42 | 53,333.34 | 951,111.08 | Related to assets | ||||
| Financial discount | 3,194,444.50 | 166,666.68 | 3,027,777.82 | Related to assets | ||||
| Industrial restructuring project financial funds | 3,493,333.29 | 160,000.02 | 3,333,333.27 | Related to assets | ||||
| Special Funds for High-end | 3,861,111.09 | 166,666.68 | 3,694,444.41 | Related to assets |
| Information Industry Chain Granted by the Finance Bureau of the Economic and Technological l Development Zone | ||||||||
| 2015 project equipment investment subsidies | 29,981,766.60 | 1,145,800.56 | 28,835,966.04 | Related to assets | ||||
| Zhengzhou City Finance Bureau in 2011 and 2012 has been the acceptance of the provincial industrial structure adjustment project the second batch of funds | 2,412,222.08 | 86,666.64 | 2,325,555.44 | Related to assets | ||||
| Strategic emerging industry Development project funds | 25,500,000.00 | 1,000,000.00 | 24,500,000.00 | Related to assets | ||||
| High-tech Zone appropriated substrate project | 5,866,666.65 | 213,333.34 | 5,653,333.31 | Related to assets | ||||
| The production line of incentive funds | 19,241,899.37 | 753,471.70 | 18,488,427.67 | Related to assets |
| Special funds for 2015 scientific and technological achievements transform project | 6,158,080.51 | 301,701.96 | 5,856,378.55 | Related to assets | ||||
| G8.5tft-lcd glass substrate manufacturing precision intelligent digital workshop construction project | 45,000,000.00 | 45,000,000.00 | Related to assets | |||||
| Investment in the Central Budget of Strategic emerging Industries | 3,933,333.41 | 399,999.96 | 3,533,333.45 | Related to assets | ||||
| 2011Key technical transformation project funds | 491,666.70 | 49,999.98 | 441,666.72 | Related to assets | ||||
| 2011Strategic emerging industry development funds | 565,416.70 | 57,499.98 | 507,916.72 | Related to assets | ||||
| 2012Electronic Information Industry Development Assistance Project | 983,333.30 | 100,000.02 | 883,333.28 | Related to assets | ||||
| Subsidies from the | 9,399,999.99 | 400,000.02 | 8,999,999.97 | Related to assets |
| Bureau of Finance of the Economic and technological Development Zone | ||||||||
| 2013Strategic emerging industry funds | 392,777.78 | 23,333.34 | 369,444.44 | Related to assets | ||||
| Mianyang Municipal Bureau of Finance Special funds | 236,666.66 | 236,666.66 | Related to assets | |||||
| Glass substrate finishing production Transformation Project | 548,333.33 | 548,333.33 | Related to assets | |||||
| Special fund subsidy for industrial development of municipal financial bureau | 433,888.86 | 16,666.68 | 417,222.18 | Related to assets | ||||
| 2013 fund of strategic new industry | 3,944,444.44 | 28,333.38 | 3,916,111.06 | Related to assets | ||||
| 2014 Provincial funds for Science and Technology | 0.00 | Related to assets | ||||||
| Sichuan Province Industrial Transformation and | 18,608,333.35 | 891,666.66 | 17,716,666.69 | Related to assets |
| upgrading Project 2015 | ||||||||
| Special funds for Industrial Development in 2016 | 39,852,753.54 | 1,601,092.62 | 38,251,660.92 | Related to assets | ||||
| Technical Reformation of key Green Technology for Glass substrate（840） | 8,400,000.00 | 8,400,000.00 | Related to assets | |||||
| Intelligent manufacturing pilot demonstration project subsidy fund（100） | 1,000,000.00 | 1,000,000.00 | 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 d to income | |||||
| Intelligent Manufacturing New Mode Engineering Project | 3,990,000.00 | 3,990,000.00 | Related to assets | |||||
| Annual production of 10 million | 4,700,000.00 | 4,700,000.00 | Related to assets |
| square meters high aluminum ultra-thin display panel glass items | ||||||||
| 2017 funds for technological Transformation of Electronic Information Industry | 30,000,000.00 | 30,000,000.00 | Related to assets | |||||
| Subsidy fund for technical transformation of industrial enterprises in Fuzhou | 2,580,000.00 | 2,580,000.00 | Related to assets | |||||
| Technical Transformation of Industrial Enterprises in Fuzhou and supporting subsidy funds in Fuqing City | 1,290,000.00 | 1,290,000.00 | Related to assets | |||||
| The Development Bureau of Economic and Trade Development of Wuhu Economic and technological Development Zone in 2017 | 13,417,100.00 | 447,236.64 | 12,969,863.36 | Related to assets |
| "Triple creation" high-end equipment and new material | ||||||||
| Tunghsu group limited transfer to project five funds | 150,400.00 | 150,400.00 | Related to assets | |||||
| China National Building Material International Engineering Group Co., Ltd. transferred funds for 11-625 projects | 496,000.00 | 496,000.00 | Related to assets | |||||
| Bengbu Glass Industry Design and Research Institute Co., Ltd., China Building Materials Co., Ltd., transferred to indirect funds (subject 4) | 521,000.00 | 521,000.00 | Related to assets | |||||
| Factory building construction award 877,500 | 854,475.22 | 15,349.86 | 839,125.36 | Related to assets | ||||
| Special fund for | 114,399.00 | 114,399.00 | Related to assets |
| automobile development | ||||||||
| Project subsidy from the Bureau of Finance of the Economic Development Zone | 6,966,547.39 | 294,478.50 | 6,672,068.89 | Related to assets | ||||
| National key R & D Program key basic Materials Technical Project subsidy | 2,280,000.00 | 2,280,000.00 | Related d to income | |||||
| Financial subsidy for the major scientific and technological achievements transformation project of "High Aluminium cover Glass complete Technology" | 1,000,000.00 | 1,000,000.00 | Related to assets | |||||
| 017 Special Fund for Industrial Development in Economic Development Zone | 5,000,000.00 | 72,463.76 | 4,927,536.24 | Related to assets | ||||
| Key new product projects | 160,000.04 | 19,999.98 | 140,000.06 | Related to assets | ||||
| Financial allocation for | 3,366,000.00 | 153,000.00 | 3,213,000.00 | Related to assets |
| Strategic emerging Industries in Sichuan Provinc | ||||||||
| Technical revamping items of 300,000 production Line of Pole-less Lights Ballast | 644,999.92 | 43,000.02 | 601,999.90 | Related to assets | ||||
| Intelligent Engineering Laboratory of High efficiency Lighting system | 1,783,333.29 | 100,000.02 | 1,683,333.27 | Related to assets | ||||
| Research and development project funds 159 | 2,226,000.00 | 2,226,000.00 | Related d to income | |||||
| District level technical reform project subsidy 150 | 1,500,000.00 | 1,500,000.00 | Related d to income | |||||
| 17 year loan discount 4.871 million | 1,127,484.71 | 910,455.00 | 217,029.71 | Related d to income | ||||
| Science and education support fund | 1,787,595.41 | 1,787,595.41 | Related d to income | |||||
| Subsidies for fuel cell projects | 4,000,000.00 | 4,000,000.00 | Related d to income | |||||
| Loan discount | 0.00 | Related d to income | ||||||
| Special funds for scientific | 400,000.00 | 400,000.00 | Related d to |
| research 40 | income | |||||||
| Glass substrate project subsidy fund | 86,971,803.66 | 658,196.34 | 86,313,607.33 | Related d to income | ||||
| Total | 601,213,644.42 | 10,500,000.00 | 21,384,592.04 | 910,455.00 | 589,418,597.39 | -- |
52.Other Non-current liabilities
In RMB
| Items | Balance in year-end | Balance in year-begin |
| CDB financing | 608,000,000.00 | 608,000,000.00 |
| Total | 608,000,000.00 | 608,000,000.00 |
Other notes：
Notes：According to the investment contract signed by Tunghsu Optoelectronic Technology Co., Ltd, Wuhu
Tunghsu optoelectronic Technology Co., Ltd., Fuzhou Tunghsu Investment Development Co., Ltd and ChinaDevelopment Fund Co., Ltd, China Development Fund Co., Ltd increased the capital of RMB 500,000,000.00 toFuzhou Tunghsu Investment Development Co., Ltd, annually enjoying a fix rate of return. After the project iscompleted, Tunghsu Optoelectronic Technology Co., Ltd shall make the installment redemption to the stake heldby China Development Fund Co., Ltd.According to Tunghsu Optoelectronic Technology Co., Ltd., after the completion of the project,Yingkou CoastalDevelopment Construction Group Co., Ltd.and China Development Fund Co., Ltd, China Development Fund Co.,Ltd increased the capital of RMB 108,000,000.00 to Tunghsu (Yingkou)OptoelectronicDisplay Co., Ltd., annuallyenjoying a fix rate of return. After the project is completed, Tunghsu Optoelectronic Technology Co., Ltd shallmake the installment redemption to the stake held by China Development Fund 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 | |||
| Capital share | 5,730,250,118.00 | 5,730,250,118.00 | |||||
54. Other equity instruments(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstandingissued at period-end
55. Capital reserves
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Share premium | 21,760,882,845.16 | 270,364.11 | 21,760,612,481.05 | |
| Other capital reserves | 226,522,375.26 | 1,592,850.23 | 195,000,000.00 | 33,115,225.49 |
| Total | 21,987,405,220.42 | 1,592,850.23 | 195,270,364.11 | 21,793,727,706.54 |
Other exlanation, including changes and reasons for changes：
The parent company acquired Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. at the end of June 2018,which belongs to the merger of enterprises under the same control. According to the regulations of the standards,it needs to carry out retroactive adjustment of the previous data, and other retroactive adjustment of capital reserveat the beginning of the period will increase by 195 million yuan. The capital premium (equity premium) is theresult of the merger of Tunghsu (Yingkou) in the current period. The increase of other capital reserves in thisperiod is the increase of other capital reserves caused by the disposal of subsidiary Xuyou (Wuxi) company in thisperiod. The decrease of other capital reserves is the adjustment of capital reserves caused by the merger ofTunghsu (Yingkou).
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 for the period before income tax | Less：Previously recognized in profit or loss in other comprehensive income | Less：Income tax | After - tax attributable to the parent company | After - tax attributable to minority shareholders | |||
| 2.Other comprehensive income reclassifiable to profit or loss in subsequent periods | -4,518.45 | 16,582.62 | 2,487.39 | 7,752.38 | 6,342.85 | 3,233.93 | |
| Balance form the translation of foreign currency financial statements | -4,518.45 | 16,582.62 | 2,487.39 | 7,752.38 | 6,342.85 | 3,233.93 | |
| Total of Other comprehensive income | -4,518.45 | 16,582.62 | 2,487.39 | 7,752.38 | 6,342.85 | 3,233.93 |
58. Special reserves
In RMB
| Items | Year-beginning balance | Increase in the current | Decrease in the current period | Year-end balance |
| Safety production cost | 1,983,921.21 | 6,552.46 | 1,990,473.67 | |
| Total | 1,983,921.21 | 6,552.46 | 1,990,473.67 |
59. Surplus reserve
In RMB
| Items | Year-beginning balance | Increase in the current period | Decrease in the current period | Year-end balance |
| Statutory surplus reserve | 224,133,824.86 | 224,133,824.86 | ||
| Total | 224,133,824.86 | 224,133,824.86 |
60. Retained profits
In RMB
| Items | Amount of current period | Amount of previous period |
| Retained earnings before adjustments at the year beginning | 3,010,372,296.37 | 1,823,695,278.31 |
| Total adjustment of retained earnings at the beginning of the year | -157,612,768.10 | |
| Retained earnings after adjustments at the year end | 3,010,372,296.37 | 1,666,082,510.21 |
| Add: Net profit attributable to owners of the Company for the period | 858,296,089.08 | 1,733,201,682.30 |
| Less: Appropriation to statutory surplus reserve | -36,089,754.38 | |
| Common stock dividend payable | 401,117,508.27 | 352,822,141.76 |
| Common stock dividends converted to shares | 3,467,550,877.18 | 3,010,372,296.37 |
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
（1）Business income, Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 9,999,123,145.77 | 8,447,438,316.36 | 4,868,274,147.73 | 3,472,556,236.95 |
| Other business | 1,130,728,645.11 | 574,551,580.73 | 8,164,456.37 | 1,406,573.27 |
| Total | 11,129,851,790.88 | 9,021,989,897.09 | 4,876,438,604.10 | 3,473,962,810.22 |
62. Business tax and subjoin
In RMB
| Items | Amount of current period | Amount of previous period |
| Urban construction tax | 13,771,482.99 | 15,039,190.71 |
| Education surcharge | 10,156,508.49 | 10,925,884.41 |
| Property tax | 6,512,792.08 | 6,283,183.73 |
| Land use tax | 10,858,460.78 | 9,674,304.80 |
| vehicle and vessel usage tax | 39,819.43 | 10,822.44 |
| Stamp tax | 4,395,608.94 | 6,119,241.19 |
| Land VAT | 140,193,026.84 | |
| Environmental protection Tax | 168,421.15 | |
| Other | 876,060.45 | |
| Total | 186,096,120.70 | 48,928,687.73 |
63.Sales expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wage and welfare insurance | 32,420,959.74 | 9,574,777.77 |
| Shipment | 25,834,245.26 | 18,933,927.82 |
| Travel | 7,538,832.95 | 1,598,038.88 |
| Business expenses | 8,817,205.59 | 1,896,338.87 |
| Office fee | 3,923,420.20 | 410,144.17 |
| Consumables and repairs | 562,745.82 | 283,143.75 |
| Depreciation | 730,676.07 | 266,676.23 |
| Advertising | 963,064.93 | 874,528.43 |
| Consultancy services | 6,399,309.05 | 5,103,982.43 |
| \Technology Services | 3,967,469.34 | |
| Other | 2,734,763.47 | 3,514,694.22 |
| Total | 93,892,692.42 | 42,456,252.57 |
64. Administrative expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Wages and benefits | 141,992,567.21 | 83,952,482.53 |
| Business expenses | 7,359,258.97 | 1,993,042.89 |
| Labor protect fee | 1,128,621.91 | 1,218,523.31 |
| Office fees | 6,110,342.22 | 4,516,755.75 |
| Travel fees | 8,120,703.11 | 3,055,829.14 |
| Publicize Fees | 3,787,328.88 | 2,256,407.59 |
| Miscellaneous charges | 7,514,986.97 | 1,855,091.84 |
| Depreciation accumulative | 39,025,365.01 | 28,206,344.83 |
| Low value consumables and repair costs | 3,471,887.09 | 1,292,268.34 |
| Test expenses | 125,698,218.19 | 62,869,570.14 |
| Consultation fees | 21,680,834.70 | 12,630,531.96 |
| Rent, water, electricity and property charges | 17,785,438.11 | 8,564,803.02 |
| Communication expenses | 674,807.32 | 206,798.13 |
| Equity incentive cost | 796,800.00 | |
| Other | 5,627,343.07 | 15,963,423.86 |
| Total | 389,977,702.76 | 229,378,673.33 |
65. Financial expenses
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest expenses | 595,740,917.45 | 572,259,300.47 |
| Less：Interest income | 198,162,232.24 | 196,711,767.79 |
| Net interest expenses | 397,578,685.21 | 375,547,532.68 |
| Exchange gains and losses | -11,686,449.38 | -12,691,241.36 |
| Financial institution | 2,132,029.71 | 1,966,716.26 |
| Note discount rate | 4,213,453.93 | 0.00 |
| Financing | 2,829,302.85 | 3,353,312.92 |
| Other | 160,093.98 | 15,607.13 |
| Total | 395,227,116.30 | 368,191,927.63 |
Other notes：
66. Asset impairment loss
In RMB
| Items | Amount of current period | Amount of previous period |
| I. Bad debt loss | -5,903,665.15 | -703,581.80 |
| II.Losses for falling price of inventory | 6,962,254.46 | 205,619.77 |
| Total | 1,058,589.31 | -497,962.03 |
67. Gains from changes in fair value68. Investment income
In RMB
| Items | Amount of this period | Amount of last period |
| Long-term equity investment income by equity method | 11,836,624.48 | -15,506,492.83 |
| Disposal of investment income from long-term equity investments | -2,053,558.36 | |
| Financing income | 13,923,452.07 | 22,183,417.04 |
| Total | 23,706,518.19 | 6,676,924.21 |
69. Assets disposal income
In RMB
| Source | Amount of current period | Amount of previous period |
| Non-current assets disposal gains and losses | -664,826.45 |
70.Other income
In RMB
| Source | Amount of current period | Amount of previous period |
| Government Subsidy | 108,362,056.52 | 86,680,000.00 |
71. 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 | 484,207.00 | |
| Government Subsidy | 320,000.00 | 69,887,507.52 | 320,000.00 |
| Other | 95,955.07 | 95,955.07 | |
| Other Non-Operation income | 5,045,734.86 | 621,007.17 | 5,045,734.86 |
| Total | 5,945,896.93 | 70,508,514.69 | 5,945,896.93 |
(1)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 funds for the use of foreign capital in 2017 | Fuqing City Finance Bureau | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction | Yes | No | 300,000.00 | Related to income |
| policy | ||||||||
| Listing subsidy | Huzhou Finance Bureau | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 20,000.00 | Related to income | |
| 2015 Depreciation of equipment for provincial achievements transformation project | Provincial Science and Technology Bureau | Subsidy | A subsidy obtained due to undertaking the state’s safeguarding for protection for a certain utility or socially necessary product supply or price control function. | No | No | 301,701.96 | Related to income | |
| 1.24 Youfang government Zhenjiang Jinshan talents scheme funding | Yangzhong City Finance Bureau | Subsidy | A subsidy obtained due to undertaking the state’s safeguarding for protection for a certain utility or socially necessary product supply or price control | No | No | 600,000.00 | Related to income |
| function. | ||||||||
| 3.14 The 5th Zhenjiang Excellent Patent Award | Zhenjiang Science and Technology Bureau, Zhenjiang Finance Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | No | No | 20,000.00 | Related to income | |
| 3.24 Technology Innovation Award. | Science and Technology Bureau, | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | No | No | 15,000.00 | Related to income | |
| Investment and Subsidies of “Double Hundred Plan” Project granted by the People's Government of Henan Province | Henan Office of industry and information | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 100,000.02 | Related to assets | |
| TFT glass substrate technology R& D fund | Zhengzho u Science & Technology Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in | No | No | 4,999.98 | Related to assets |
| accordance with the national policies and regulations) | ||||||||
| TFT glass substrate project Subsidy | Zhengzho u 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 | 333,333.36 | 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 | National Development & Reform Commission | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 466,666.68 | Related to assets | |
| TFT glass substrate project Subsidy | Zhengzhou Municipal Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in | No | No | 666,666.66 | Related to assets |
| accordance with the national policies and regulations) | ||||||||
| Special Funds for Major Scientific and Technical Projects by Finance Bureau of Zhengzhou City | Zhengzho u Technology Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 33,333.36 | Related to assets | |
| Financial Supports for National Key Industry and Technical Transformation Projects Granted by the Municipal Finance Bureau | Zhengzho u Economic and Technology Development Zone 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 | 466,666.68 | Related to assets | |
| Financial Supports for Industrial Development Granted by the Finance Bureau of the Economic and Technological Development | Zhengzhou Municipal Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and | No | No | 233,333.34 | Related to assets |
| Zone | regulations) | |||||||
| Funds for Independent Innovation of Provincially Supported Enterprises | Henan provincial finance department | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 199,999.98 | Related to assets | |
| Supporting Funds on Finance Discounts | Henan provincial finance department | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 66,666.66 | Related to assets | |
| Funds for Education, Science and Culture Granted by the Finance Bureau | Zhengzho u 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 | 49,999.98 | Related to assets | |
| Supporting Funds for Industrial | Zhengzho u Economic and | Subsidy | Grants obtained due to the country | No | No | 93,333.36 | Related to assets |
| Structure -adjusting Projects Granted by the Regional Finance Bureau | Technology Development Zone Finance Bureau | encourage and support specific industries (Obtained in accordance with the national policies and regulations) | ||||||
| Industry discount and expenses | Zhengzhou 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 | 53,333.34 | Related to assets | |
| Financial discount of Henan State-owned assets holding Operation Co., Ltd. | Department of Finance of Henan Province | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 166,666.68 | Related to assets | |
| 2013 Industrial restructuring project financial funds | Zhengzhou Economic and Technology Development Zone Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries | No | No | 160,000.02 | Related to assets |
| (Obtained in accordance with the national policies and regulations) | ||||||||
| Special Funds for High-end Information Industry Chain Granted by thFinance Bureau of the Economic and Technological Develop | Henan Office of industry and information | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 166,666.68 | Related to assets | |
| 2015 project equipment investment subsidies | Zhengzho u Municipal Commission of industry and information | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 1,145,800.02 | Related to assets | |
| Zhengzhou City Finance Bureau in 2011 and 2012 has been the acceptance of the provincial industrial structure adjustment | Henan Provincial Department of Finance and Zhengzhou Municipal Bureau of Finance | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national | No | No | 86,666.64 | Related to assets |
| project the second batch of funds | policies and regulations) | |||||||
| Director of the year quality Award 2016 | Zhengzhou Economic and Technological Development Zone Management Committee | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 200,000.00 | Related to assets | |
| College graduate employment apprenticeship subsidy | Henan Provincial Department of Human Resources and Social Security | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 492,000.00 | Related to assets | |
| Introducing foreign intellectual work funds | Zhengzhou Municipal Bureau of Human Resources and Social Security | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | No | No | 50,000.00 | Related to assets | |
| The first | National | Award | Grants | Yes | No | 399,999.97 | Related to |
| batch of central budgetary investment in strategic emerging industry projects | Development and Reform Commission | obtained due to research and development, technical renovation and transformation, etc. | assets | |||||
| Mianyang City's 2011 key technology renovation completion project funds | Mianyang City Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 50,000.00 | Related to assets | |
| 2011 Strategic Industry Development Promotion Fund | Suchuan Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 57,500.00 | Related to assets | |
| 2012 Electronic Information Industry Development Fund Project | Ministry of Industry and Information Technology Electronic Information Industry Fund Management Office | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 100,000.02 | Related to assets | |
| Economic and Technological | Economic Development Zone Government | Subsidy | Grants obtained due to the country encourage | Yes | No | 400,000.00 | Related to assets |
| Development Zone Finance Bureau subsidy | and support specific industries (Obtained in accordance with the national policies and regulations) | |||||||
| PDP glass substrate finishing technology achievements transformation project | Provincial Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 23,333.33 | Related to assets | |
| The first batch of provincial science and technology funds in 2014 | Mianyang Science and Technology Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 111,111.12 | Related to assets | |
| 2015 Sichuan Province Industrial Transformation and upgrading Project | Ministry of Industry and Information Technology | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 725,000.00 | Related to assets | |
| 2013 Strategic Emerging Industry | Provincial Economic and Information | Subsidy | Grants obtained due to research and | Yes | No | 16,666.66 | Related to assets |
| Funds Disbursed by the Economic Development Zone Government on behalf of the Provincial Department of Finance | Committee | development, technical renovation and transformation, etc. | ||||||
| Special funds funded by the Mianyang Municipal Finance Bureau | Provincial Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 10,000.00 | Related to assets | |
| Special fund for industrial development of the Finance Bureau | Provincial Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 18,333.33 | Related to assets | |
| 2013 Strategic Emerging Industry Funds Disbursed by the Economic Development Zone Government on behalf of the Provincial Department | Provincial Economic and Information Committee | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 166,666.67 | Related to assets |
| of Finance | ||||||||
| Economic Development Zone 2016 Industrial Development Special Fund | Municipal government | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 980,113.64 | Related to assets | |
| Economic and Technological Development Zone Finance Bureau subsidy | Economic Development Zone Government | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 294,478.53 | Related to assets | |
| Production of high-strength and ultra-thin aluminosilicate touch screen glass achievement conversion project based on float process | Mianyang Science and Technology Bureau | Award | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 150,000.00 | Related to income | |
| December of 2016 High-tech enterprises recognize subsidies | Mianyang Economic Development Bureau Finance Bureau | Award | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 100,000.00 | Related to income | |
| 3D | Provincial | Award | Grants | Yes | No | 300,000.00 | Related to |
| High-Permeability Super Ultra High Strength Al-Si (advanced) | Science and Technology Department | obtained due to research and development, technical renovation and transformation, etc. | income | |||||
| Finance Bureau's subsidy to urban public transport | Chenzhou Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 153,000.00 | Related to income | |
| Key new product projects | Provincial Science and Technology Departmen | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 19,999.98 | Related to assets | |
| Financial allocation for Strategic emerging Industries in Sichuan Province | Provincial Development and Reform Commission | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in | Yes | No | 18,200.00 | Related to assets |
| accordance with the national policies and regulations) | ||||||||
| Technical revamping items of 300,000 production Line of Pole-less Lights Ballast | Provincial Economic Commission | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 43,000.02 | Related to assets | |
| Intelligent Engineering Laboratory of High efficiency Lighting system | Provincial Development and Reform Commission | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 90,000.00 | Related to assets | |
| Foreign trade SMEs develop market subsidies | Subsidy | Yes | No | 28,000.00 | Related to income | |||
| Technical reconstruction | Shijiazhuang Development and Reform Commission | Subsidy | Grants obtained due to research and development, technical renovation | Yes | No | 133,333.34 | Related to assets |
| and transformation, etc. | ||||||||
| Grant of Glass Substrate Project | Shijiazhuang High-tech Zone Management Committee | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 713,333.34 | Related to assets | |
| Industry Development Fund | Shijiazhuang High-tech Zone Management Committee | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 233,333.34 | Related to assets | |
| Project finance discount | Shijiazhuang Finance Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 15,666.66 | Related to assets | |
| Grant of Industry Revitalizatio n and Technology Reconstructio | Shijiazhuang Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific | Yes | No | 3,257,666.66 | Related to assets |
| n Project | industries (Obtained in accordance with the national policies and regulations) | |||||||
| Provincial strategic emerging industries of special grant funds | Shijiazhuang Development and Reform Commission | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 166,666.66 | Related to assets | |
| Technology reconstructi on Special funds | Shijiazhuang Finance Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 1,078,000.00 | Related to assets | |
| Provincial strategic emerging industries of special grant funds | Shijiazhuang Development and Reform Commission | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 1,000,000.00 | Related to assets | |
| Production line reward | Shijiazhuang High-tech | Subsidy | Grants obtained due | Yes | No | 753,471.70 | Related to assets |
| fund | Zone | to conforming to the local supporting policies such as local government’s investment attraction policy | ||||||
| Grant of Industry Revitalizatio n and Technology Reconstruction Project | Wuhu Economic and Technological Development Zone Finance Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 116,666.64 | Related to assets | |
| Grant of Government Infrastructure（Land repaymen） | Wuhu Economic and Technological Development Zone Finance Bureau | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 1,122,300.00 | Related to assets | |
| Equipment investment incentive funds | Yangzhong City Development and Reform Commission | Award | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 109,100.00 | Related to income | |
| Center | Wuhu City | Award | Grants | Yes | No | 100,000.00 | Related to |
| Innovation Team Support Fund | Finance | obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | income | |||||
| Technology reward | Jiangsu Taizhou New Energy Management Committe | Award | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 36,497,930.50 | Related to income | |
| Wuhu Economic and Technological Development Zone Economic and Trade Development Bureau Export Increase Award | Development Zone Economic and Trade Development Bureau | Award | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 114,800.00 | Related to income | |
| Development Zone Economic and Trade | Development Zone Economic and Trade | Award | Grants obtained due to conforming | Yes | No | 13,312,000.00 | Related to income |
| Development Bureau (2012-2016) Income Tax Refund | Development Bureau | to the local supporting policies such as local government’s investment attraction policy | ||||||
| Central Party Committee Organization Department allocates the third batch of support funds | Wuhu Economic and Technological Development Zone Finance Bureau | Subsidy | Grants obtained due to the country encourage and support specific industries (Obtained in accordance with the national policies and regulations) | Yes | No | 500,000.00 | Related to income | |
| Suqian Economic Development Zone Finance Bureau talent introduction special funds | Suqian Economic Development Zone Finance Bureau | Subsidy | Grants obtained due to conforming to the local supporting policies such as local government’s investment attraction policy | Yes | No | 230,000.00 | Related to income | |
| Grant of Glass-tube Secondary Environmental Protection | Shiijiazhuang Municipal Finance Bureau | Subsidy | Grants obtained due to research and development, technical renovation and transformation, etc. | Yes | No | 5,000.01 | Related to assets |
| Total | -- | -- | -- | -- | -- | 320,000.00 | 69,887,507.52 | -- |
72.Non-Operation expense
In RMB
| Items | Amount of current period | Amount of previous period | The amount of non-operating gains & lossed |
| Donation expense | 268,500.00 | 268,500.00 | |
| Liquidated damages | 2,038,214.22 | 472,448.13 | 2,038,214.22 |
| Other | 461,097.79 | 130,049.52 | 461,097.79 |
| Total | 2,767,812.01 | 602,497.65 | 2,767,812.01 |
73. Income tax(1) Details of income tax
In RMB
| Items | Amount of current period | Amount of previous period |
| Current Income tax | 266,217,607.40 | 180,288,675.05 |
| Deferred income tax | 15,913,168.84 | 11,225,209.48 |
| Total | 282,130,776.24 | 191,513,884.53 |
（2）Accounting profit and tax expense adjustment process
In RMB
| Items | Amount of current period |
| Total profit | 1,176,191,505.48 |
| Income tax expense at statutory / applicable tax rates | 176,428,725.82 |
| Effect of different tax rates applicable to subsidiaries | 59,083,388.27 |
| Income tax adjustments on prior periods | -4,817,305.09 |
| Effect of non-taxable income | 311,512.14 |
| Affect the use of deferred tax assets early unconfirmed deductible losses | -1,513,452.40 |
| The current period does not affect the deferred tax assets recognized deductible temporary differences or deductible loss | 52,637,907.50 |
| Income tax expense | 282,130,776.24 |
74 .Other comprehensive incomeSeen in Note75.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 | 2,562,489.64 | 47,314,940.12 |
| Government subsidy | 61,907,216.56 | 58,468,830.50 |
| Deposits income | 638,622,319.42 | 97,933,974.36 |
| Other | 27,459,273.74 | 29,668.70 |
| Total | 730,551,299.36 | 203,747,413.68 |
Explanation on other cash received in relation to operation activities：
(2)Other cash paid related to operation activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Deposits income | 1,021,839,493.62 | 752,985,658.23 |
| Consultation Services fee | 30,513,337.97 | 13,031,790.06 |
| Business expenses | 17,688,855.86 | 3,187,285.00 |
| Transportation fees | 4,166,872.76 | 2,301,143.56 |
| Advertising expenses | 5,182,114.95 | 3,069,680.35 |
| Travel expenses | 20,052,329.77 | 4,359,728.53 |
| Office expenses | 24,347,292.88 | 20,222,253.34 |
| Bank fees | 25,958.40 | 4,791.60 |
| Shipping fee | 13,487,314.75 | 2,608,089.38 |
| Petty cash | 9,329,418.54 | 1,242,892.54 |
| Security service charge | 862,988.91 | 72,000.00 |
| Vehicle charge | 193,216.07 | 3,120.00 |
| Communication expense | 1,542,212.42 | 199,286.59 |
| Rent water and electricity property | 60,663,860.42 | 8,317,828.86 |
| Residual insurance | 1,204,391.96 |
| Labour protection fee | 2,939,306.44 | 1,472,973.11 |
| conference fee | 2,145,102.71 | 664,731.28 |
| Traffic expenses | 44,596,072.72 | 1,546,078.81 |
| Recruitment fees | 138,443.69 | 1,037.74 |
| Low-value consumables and repair costs | 8,087,098.53 | 386,017.64 |
| Research and development fee | 37,388,611.51 | 25,648,041.28 |
| Information system fee | 455,883.63 | 2,414.71 |
| Customs and agency fees | 616,441.07 | 36,410.00 |
| Other financial expenses | 6,296,589.32 | 22,588.12 |
| Other expenses | 22,417,945.63 | 9,290,478.07 |
| Total | 1,336,181,154.53 | 850,676,318.80 |
Explanation on other cash paid in relation to operation activities：
(3)Cash received related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Fixed deposit | 200,000,000.00 | 190,962.49 |
| Total | 200,000,000.00 | 190,962.49 |
Explanation on cash received from other investment activities：
Notes
(4)Cash paid related to other investment activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Cash flow | 317,956,820.99 | 50,000,000.00 |
| Other | 280,256.00 | |
| Total | 318,237,076.99 | 50,000,000.00 |
Explanation on cash payable from other investment activities：
（5）Other cash received in relation to financing activities
In RMB
| Items | Amount of current period | Amount of previous period |
| Interest received | 210,076,517.70 | 133,596,848.85 |
| Financing lease | 280,000,000.00 | 103,800,000.00 |
| Cash flow | 75,708,760.40 | 224,500,000.00 |
| Total | 565,785,278.10 | 461,896,848.85 |
Explanation on other cash received in relation to financing activities：
（6）Cash paid related with financing activities
IIn RMB
| Items | Amount of current period | Amount of previous period |
| Bank commission | 2,106,071.31 | 1,937,116.55 |
| Credit guarantee | 4,076,591.14 | 27,620,596.86 |
| Bank financing | 1,900,000.00 | 1,130,000.00 |
| Financial lease rent | 299,742,705.14 | 419,037,111.72 |
| Cash flow | 332,177,258.30 | 50,000,000.00 |
| Total | 640,002,625.89 | 499,724,825.13 |
Explanation on cash paid related with financing activities：
76. 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 | 894,060,729.24 | 685,767,271.37 |
| Add: Impairment loss provision of assets | 1,058,589.31 | -497,492.48 |
| Depreciation of fixed assets, oil and gas assets and consumable biological assets | 475,906,123.13 | 399,428,761.84 |
| Amortization of intangible assets | 42,850,991.09 | 9,559,826.81 |
| Amortization of long-term deferred expenses | 10,182,574.85 | 4,155,040.09 |
| Loss on disposals of fixed assets, intangible assets and other long-term assets ("-" for | 664,826.45 | 30,537.14 |
| gains) | ||
| Financial cost | 588,837,294.67 | 415,537,608.52 |
| Investment losses | -23,706,518.19 | -6,676,924.21 |
| Decrease in deferred income tax assets | 23,648,059.15 | 11,776,372.44 |
| Increased in deferred income tax liabilities | 2,146,288.22 | -11,805.12 |
| Decrease in inventories | 703,598,779.36 | -1,025,419,094.41 |
| Decease in operating receivables | -16,508,886,465.22 | -2,261,677,453.88 |
| Increase in operating payables | 13,873,256,015.60 | 403,077,538.11 |
| Cash flows from operating activities | 83,617,287.66 | -1,364,949,813.78 |
| 2.Significant investment and financing activities not affecting cash flows | -- | -- |
| 3．Changes in cash and cash equivalents： | -- | -- |
| Ending balance of cash | 21,442,933,365.47 | 22,463,648,543.19 |
| Less: Beginning balance of cash equivalents | 25,114,660,756.25 | 25,537,802,101.80 |
| Net increase of cash and cash equivalents | -3,671,727,390.78 | -3,074,153,558.61 |
(2) Net Cash paid of obtaining the subsidiary
In RMB
| Amount | |
| Cash or Cash Equivalent of Enterprise consolidation that Occurred in the Current Period Paid in the Current Period | 111,799,996.00 |
| Including： | -- |
| Huaxi Nanchong Automobile Co., Ltd. | 44,800,000.00 |
| Zhongcheng national construction co., Ltd. | 39,999,996.00 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 27,000,000.00 |
| Less：Cash or Cash Equivalent Owned by Subsidiary on the Purchasing Date | 4,037,901.86 |
| Including： | -- |
| Huaxi Nanchong Automobile Co., Ltd. | 3,265.51 |
| Zhongcheng national construction co., Ltd. | 959,251.79 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 3,075,384.56 |
| Including： | -- |
| Received Net Cash Paid by Subsidiary | 107,762,094.14 |
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
| Amount | |
| Cash or cash equivalents received by the disposal company in the current year | 550,000,000.00 |
| Including： | -- |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 550,000,000.00 |
| Less：Cash and cash equivalents held by a controlling subsidiary | 156,272,347.41 |
| Including： | -- |
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 156,272,347.41 |
| Including： | -- |
| Net cash received from disposal subsidiaries | 393,727,652.59 |
（4）Composition of cash and cash equivalents
In RMB
| Items | Balance in year-end | Balance in year-beginning |
| I. Cash | 21,442,933,365.47 | 25,114,660,756.25 |
| Including: cash in treasury | 460,584.36 | 2,461,658.94 |
| Bank savings could be used at any time | 21,287,528,272.13 | 24,971,467,452.68 |
| Other monetary capital could be used at any time | 154,944,508.98 | 140,731,644.63 |
| III. Balance of cash and cash equivalents at the period end | 21,442,933,365.47 | 25,114,660,756.25 |
77. Note of statement of changes in the owner's equityExplain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
78. The assets with the ownership or use right restricted
In RMB
| Items | Closing book value | Causation of limitation |
| Monetary funds | 2,351,663,690.33 | Mainly term deposits, deposits and partial litigation freezes |
| Fixed assets | 10,433,568,773.50 | Set up the mortgage and the fixed assets of the financial lease |
| Intangible assets | 350,282,096.92 | Pledge loans |
| Construction in progress | 1,210,207,009.84 | Pledge loans |
| Investment property | 66,930,130.01 | Pledge loans |
| Total | 14,412,651,700.60 | -- |
Other notes ：
79. 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 | 5,389,780.01 | 6.6166 | 35,662,018.41 |
| Euro | 38,868.80 | 7.6515 | 297,404.62 |
| HKD | 18,233.84 | 0.8431 | 15,372.95 |
| JPY | 251,464,500.95 | 0.0599 | 15,066,244.11 |
| GBP | 2,277.81 | 8.6551 | 19,714.67 |
| Account receivable | |||
| Including：USD | 1,170.41 | 6.6166 | 7,744.13 |
| Euro | |||
| HKD | 9,694.95 | 0.8431 | 8,173.81 |
| JPY | 1,726,840,023.03 | 0.0599 | 103,461,893.14 |
| Account payable | |||
| Including：USD | 3,625,065.37 | 6.6166 | 23,985,607.53 |
| Euro | 2,989.00 | 7.6515 | 22,870.33 |
| HKD | 906,750.01 | 0.8431 | 764,480.93 |
| JPY | 223,302,422.00 | 0.0599 | 13,378,941.31 |
| Short-term loans | |||
| Including：USD | 3,807,370.00 | 6.6166 | 25,191,844.34 |
(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
80. Hedging81.Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
（1）Business combinations not under common control in the reporting period
In RMB
| Name of Acquiree | Time-point of Obtained Equity | Obtained Cost of Equity | Ratio of Obtained Equity (100%) | Method of Obtained Equity | Purchasing Date | Determination Basis on the Purchasing Date | Income of Acquire from the Purchasing Date to the End of the Period | Net Profit of Acquire from the Purchasing Date to the End of the Period |
| Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. | May 30,2018 | 157,750,000.00 | 67.00% | Merger of non-identical controlled enterprises | May 30,2018 | Acquisition of contro | 736,964.91 | -1,227,519.10 |
| Zhongcheng national construction co., Ltd. | March 30,2018 | 140,000,000.00 | 70.00% | Merger of non-identical controlled enterprises | March 30,2018 | Acquisition of contro | -665,082.13 | |
| Huaxi Bus Co., Ltd. | April 4,2018 | 56,000,000.00 | 100.00% | Merger of non-identical controlled enterprises | April 4,2018 | Acquisition of contro | 4,251,788.55 | 773,846.32 |
(2) Consolidation Cost and Goodwill
In RMB
| Consolidation Cost | Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. | Zhongcheng national construction co., Ltd. | Huaxi Bus Co., Ltd. |
| --Cash | 157,750,000.00 | 140,000,000.00 | 56,000,000.00 |
| Consolidation Cost | 157,750,000.00 | 140,000,000.00 | 56,000,000.00 |
| Less：Reduction: Obtained Definable Net Assets Fair Proportion | 91,548,329.84 | 9,830,031.87 | -773,762.72 |
| Goodwill/ The Consolidation Cost is Less Than the Obtained Definable Net Assets Fair Proportion | 66,201,670.16 | 130,169,968.13 | 56,773,762.72 |
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
| Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. | Zhongcheng national construction co., Ltd. | Huaxi Bus Co., Ltd. | ||||
| Fair value on purchase date | Book value on purchase date | Fair value on purchase date | Book value on purchase date | Fair value on purchase date | Book value on purchase date | |
| Monetary fund | 127,075,384.55 | 127,075,384.55 | 959,251.79 | 959,251.79 | 3,265.51 | 3,265.51 |
| Account receivable | 203,360.00 | 203,360.00 | ||||
| Inventory | 31,984,526.65 | 18,724,138.92 | 3,275,246.59 | 3,280,573.26 | ||
| Fixed assets | 11,192,806.79 | 9,391,876.78 | 24,866.48 | 24,888.64 | ||
| Intangible asset | 53,241,307.46 | 53,849,371.07 | 19,486,104.61 | 5,402,067.11 | ||
| Disposal of fixed assets | 19,499.99 | 19,499.99 | ||||
| Prepayments | 318,723.00 | 318,723.00 | 227,138.68 | 227,138.68 | 585,871.75 | 585,871.75 |
| Other receivable | 5,297.05 | 5,297.05 | 350,323.23 | 350,323.23 | 386,428.00 | 386,428.00 |
| Other current assets | 7,989,998.57 | 7,989,998.57 | 44,193.14 | 44,193.14 | ||
| Deferred Income tax assets | 154,125.90 | 2,110.00 | 1,331.67 | |||
| Account payable | 4,200.64 | 4,200.64 | 4,839,563.18 | 4,839,563.18 | ||
| Deferred Income tax Liabilities | 3,765,329.44 | 3,522,014.92 | ||||
| Advance Payments | 412,420.94 | 412,420.94 | 176,000.00 | 176,000.00 | ||
| Employees’ wage payable | 59,926.94 | 59,926.94 | 1,258,965.67 | 1,258,965.67 | ||
| Tax payable | 8,067.95 | 8,067.95 | 23,898.68 | 23,898.68 | 10,343.06 | 10,343.06 |
| Other account payable | 91,280,486.44 | 91,280,486.44 | 2,259,395.34 | 2,259,395.34 | ||
| Net assets | 136,639,298.26 | 125,799,357.67 | 14,042,902.67 | 3,480,902.25 | -773,762.72 | -769,767.72 |
| Less：Minority shareholders' equity | 45,090,968.43 | 41,513,788.03 | 4,212,870.80 | 1,044,270.68 | ||
| Acquire net assets | 91,548,329.83 | 84,285,569.64 | 9,830,031.87 | 2,436,631.57 | -773,762.72 | -769,767.72 |
Determination method for fair value of the identifiable assets and liabilities:
The acquired company Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. can identify the fair value of net assetsand liabilities based on the evaluation company Wanlong (Shanghai) Asset Appraisal Co., Ltd. issued anevaluation report.Contingent liability of the acquiree bear during combination:
NilOther explanation:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger 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
In RMB
| Combined party | Proportion of the profits | Basis | Combination date | Recognition basis of combination date | Income of the combined party from the beginning | Net profit of the combined party from the beginning | Income of the merged party during the comparison | Net profit of the combined party during the period of |
| of the year to the date of the merger | of the year to the date of the merger | period | comparison | |||||
| Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. | 65.00% | Same parent company | June 30,2018 | Pay consideration, control operation | 27,289,664.99 | -9,555,668.76 | -5,213,532.93 |
（2） Consolidation Cost
In RMB
| Consolidation Cost | Tunghsu(Yingkou)Optoelectronic Display Co., Ltd. |
| Cash | 195,525,500.00 |
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
| Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. | ||
| Merger date | End of previous period | |
| Cash and bank balances | 49,876,382.38 | 85,581,351.01 |
| Account receivable | 26,247,411.94 | 27,508,065.58 |
| 27,104,233.68 | 23,963,131.18 | |
| Fixed assets | 330,341,703.53 | 335,451,284.12 |
| Intangible assets | 24,988,633.63 | 25,314,850.99 |
| Prepayments | 2,483,530.03 | 858,504.05 |
| Other receivable | 32,000.00 | 2,000.00 |
| Other current assets | 75,603,084.09 | 74,056,644.01 |
| Construction in process | 586,201,554.22 | 570,609,032.67 |
| Deferred Income tax assets | 5,334,663.88 | 5,334,663.88 |
| Other non-current assets | 1,985,104.15 | |
| Account payable | 28,970,435.09 | 101,667,530.90 |
| Notes payable | 1,164,100.00 | |
| Advance Payments | 11,593.50 | 9,537.00 |
| Employees’ wage payable | 296,037.13 | 249,318.39 |
| Tax payable | 1,840,851.65 | 280,315.37 |
| Interest payable | 589,174.98 | 1,075,377.78 |
| Other payable | 187,575,741.76 | 124,403,423.83 |
| Non-current liabilities due 1 year | 36,316,392.68 | 36,316,392.68 |
| Long-term loans | 420,000,000.00 | 425,000,000.00 |
| Deferred Income | 84,997,214.64 | 85,655,410.98 |
| Other non- current liabilities | 108,000,000.00 | 108,000,000.00 |
| Net assets | 258,451,655.95 | 268,007,324.71 |
| Less：Minority shareholders' equity | 90,458,079.58 | 93,802,563.65 |
| Acquire net assets | 167,993,576.40 | 174,204,761.10 |
3. Counter purchaseBasic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities ofthe listed companies whether constituted a business and its basis, the determination of the combination costs, theamount and calculation of adjusted rights and interests in accordance with the equity transaction process.4. The disposal of subsidiaryWhether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
| Name | Equity disposal price | Equity disposal ratio | Disposal of equity | Loss of control point | Determining the basis for the loss of control | The difference between the disposal price and the share of the subsidiary's net assets at the level of the consolidated financial statement corresponding to | Proportion of remaining stocks at the date of loss of control | The book value of the remaining equity at the date of loss of control | The fair value of the remaining equity at the date of loss of control | Regaining gains or losses arising from re-measurement of the remaining equity at fair value | Determination of the fair value of the remaining equity at the date of loss of control rights and its main assumptions | The amount of other comprehensive income related to the atomic company's equity investment transferred to investment profit and loss |
| the disposal of the investment | ||||||||||||
| Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. | 550,000,000.00 | 51.00% | Sell | April 28,2018 | Received consideration and lost control | -2,053,558.36 | 0.00% | 0.00 | 0.00 | 0.00 | 0.00 |
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control inreporting period
□ Yes √ No
5. Other reasons for the changes in combination scopeNotes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)and relevant information:
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 | |
| Wuhan Tunghsu Optoelectronic Technology Co., Ltd. | Wuhan | 1/F, No.2 Business tower, Huazhong Shuguang Software park, No.1Guanshan Road,Donghu Development Zone, Wuhan | Photoelectric display material | 100.00% | Establish | |
| Beijing Xufeng Real Estate Co., Ltd. | Beijing | Room C17, Building 1, No.10, Xinghuo Road, Technology City, Fengtai District, Beijing | Real estate Development | 100.00% | Establish | |
| Tunghsu （Kunshan）Display Material Co., Ltd. | Kunshan | No.500, Pengxi North Road, Economic Development Area,Kunshan | Photoelectric display material | 88.89% | Establish | |
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | Zhengzhou | 66,No 3 Jingnan Road, Econornic & Technology Development Zone, Zhengzhou | Photoelectric display material | 100.00% | Control combination | |
| Shijiazhuang Xuxin Optoelectronic Technology Co.,Ltd. | Shijiazhuang | No.377,ZhujiangRoad, High-tech Area, Shijiazhuang, Hebei | Photoelectric display material | 100.00% | Control combination | |
| Beijing Xutan New Material Technology Co., Ltd. | Beijing | 206, 2/F, Building 2B,No.80, Xingshikou Road, Haidian District, | Industrial application of graphene | 70.00% | Establish |
| Beijing | ||||||
| Jiangsu Jixing New Material Co., Ltd. | Jiangsu | New Material Industry Zone, Youfang Town, Yangzhong City | Photoelectric display material | 100.00% | Non control combination | |
| Beijing Tunghsu Huaqing Investment Co., Ltd. | Beijng | 1201-E18(Area)12/F,No.1, 6-3 Building, Autornobile Museum East Road, Fengtai District, Beijing | Investment | 70.00% | Establish | |
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | Fuzhou | (072) Room 109,Supervision Building, Processing trade Free zone, Fuzhou, Fujian.(No.9, Xinjiang Road, Xincuo Town, Fuqing City) | Photoelectric display material | 87.25% | 12.75% | Establish |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | Wuhu | Room 302, A floor,Management Committee of Jiangbei Industry Zone,Anhui Prov | Equipment and technical services | 100.00% | Establish | |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | Shanghai | Room 02, 2/F,No.3 Building, No.28,, Jiangcchuan East Road, Minhang District ,Shanghai | Industrial application of graphene | 50.50% | Non control combination | |
| Shenzhen Xuhui Investment Co., Ltd. | Shenzhen | Room 201, A building, No.1, Qianwan Road, Qianhai Shenzhen-Hongkong Cooperation Zone, Shenzhen | Investment | 100.00% | Establish | |
| Tunghsu Construction | Sichuan | No.21, 15 Building, No.181, | Building Installing | 100.00% | Non control combination |
| Group Co., Ltd. | Erhuan Road, Jinniu District, Chengdu | |||||
| 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 |
Explanation on share-holding ratio in subsidiary different from ratio of voting right：
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights：
Controlling basis for the structuring entity included in consolidated range：
Basis on determinning to be a agent or consignor：
Other notes：
Notes：According to the signed agreement, Taizhou Tunghsu Graphene Industry Investment Fund Management
Center (limited partnership) sets up the investment decision committee as the highest decision-making organ,which is responsible for making decisions on project investment, disinvestment and other matters. The investmentdecision committee is made up of five committee memerein, the general partner Beijing Tunghsu HuaqingInvestment Co., Ltd. appoints 2 members, the limited partner Tunghsu Photo-electricity Technology Co., Ltd.appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou
Jintaiyang Energy Co., Ltd. doesn’t appoint members. And the chairman of committee shall be assumed by the
representative of general partner. The decisions will be valid with the consent of the majority of committeemembers (4 votes and above), and the chairman of investment committee has the one-vote veto. As the executivepartner, the general partner Beijing Tunghsu Huaqing Investment Co., ltd. assumes unlimited, joint liabilities for
the limited partnership’s debts. As the posterity limited partner, Tunghsu Photo-electricity Technology Co., Ltd.bears responsibilities for the limited partnership’s debts with its subscribed investment. And Taizhou JintaiyangEnergy Co., Ltd., as the priority limited partner, assumes responsibilities for the limited partnership’s debts with
its subscribed investment.
（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% | 6,454,615.67 | 119,029,434.07 | |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 49.50% | -3,276,208.31 | 48,922,792.83 | |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 33.00% | -405,081.30 | 44,685,887.13 | |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 11.11% | -44,707.04 | 99,730,691.36 |
(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.. | 761,479,050.29 | 443,418,584.41 | 1,204,897,634.70 | 719,324,049.52 | 188,000,000.00 | 907,324,049.52 | 646,709,574.39 | 423,862,686.32 | 1,070,572,260.71 | 601,135,214.70 | 188,000,000.00 | 789,135,214.70 |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 24,391,645.13 | 81,670,885.30 | 106,062,530.43 | 7,228,605.53 | 0.00 | 7,228,605.53 | 29,877,854.31 | 84,534,600.13 | 114,412,454.44 | 6,477,598.47 | 389,647.55 | 6,867,246.02 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 63,785,058.35 | 63,842,466.68 | 127,627,525.03 | 2,930,164.51 | 0.00 | 2,930,164.51 | 30,316,902.09 | 63,243,357.85 | 93,560,259.94 | 91,760,902.27 | 0.00 | 91,760,902.27 |
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 795,994,353.63 | 601,563,285.70 | 1,397,557,639.33 | 219,891,650.51 | 280,000,000.00 | 499,891,650.51 | 529,335,649.08 | 506,767,622.38 | 1,036,103,271.46 | 138,034,919.30 | 0.00 | 138,034,919.30 |
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.. | 632,696,266.30 | 16,136,539.17 | 16,136,539.17 | -15,703,750.76 | 46,983,656.18 | 1,844,869.14 | 1,844,869.14 | -21,118,901.48 |
| Shanghai Tanyuan Huigu New Material Technology Co., Ltd. | 488,093.83 | -6,566,421.86 | -6,566,421.86 | 12,587,728.47 | 194,829.10 | 20,745,934.23 | 20,745,934.23 | 8,580,349.37 |
| Shenzhen Sanbao Innovation Intelligent Co., Ltd. | 736,964.91 | -1,101,997.15 | -1,101,997.15 | -730,374.74 | ||||
| Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. | 16,409,299.17 | -402,363.34 | -402,363.34 | -253,855,084.87 | -360,330.51 | -360,330.51 | 2,968,413.541 | |
(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 of
the parent company3. 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 | 2,440,811,321.54 | 2,682,394,584.48 |
| Non-current assets | 17,426,928,351.70 | 9,907,461,970.78 |
| Total of assets | 19,867,739,673.24 | 12,589,856,555.26 |
| Current liabilities | 14,841,406,072.32 | 7,579,701,042.91 |
| Total liabilities | 14,841,406,072.32 | 7,579,701,042.91 |
| Attributable to shareholders of the parent company | 5,026,333,600.92 | 5,010,155,512.35 |
| Share of net assets calculated by stake | 2,010,533,440.37 | 2,004,062,204.94 |
| Book value of equity investment in associates | 2,010,533,440.37 | 2,004,062,204.94 |
| Business income | 105,177,198.83 | 75,053,678.73 |
| Net profit | 16,178,088.57 | -39,256,450.56 |
| Total comprehensive income | 16,178,088.57 | -39,256,450.56 |
(4) Summary financial information of insignificant joint venture or associated enterprise
| Closing balance/This period | Opening balance/Last period | |
| Joint venture: | -- | -- |
| The total number of shares in each of the following shares | -- | -- |
| Associated enterprise： | -- | -- |
| Total investment book value | 130,804,634.60 | 126,422,519.76 |
| The total number of shares in each of the following shares | -- | -- |
| --Net | 5,365,389.05 | 196,087.39 |
| Total comprehensive income | 5,365,389.05 | 196,087.39 |
(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 statements6.Other
X. The risk related financial instrumentsThe Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk.
The Business Management Department of the Company management is fully responsible for the determination ofrisk management objectives and policies, and assumes the ultimate responsibility for the risk managementobjectives and policies. The Business Management Department of the Company reviews the effectiveness of theperformed programs as well as the rationality of risk management objectives and policies through monthly workstatement submitted by the Functional Department.
The objective of the Company’s engagement in risk management is to obtain a proper balance between the risksand benefits, reduce the risks’ negative impact on the Company's operating performance to the lowest level and
maximize the interests of shareholders and other equity investors. Based on the risk management objectives, thebasic strategy of the Company's risk management is to identify and analyze the risks faced by the Company,establish appropriate baseline of risk tolerance, conduct risk management as well as timely and reliably supervisevarious risks to control the risks within a limited range.
1. Credit RiskCredit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to performits obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company would
make an evaluation on new customers’ credit risk before signing new contracts, which includes external credit
rating and bank reference letter (when available) under certain circumstances. The Company sets quota on creditsale for each customer and such quota is the maximum amount without additional approvals.
The company ensures that the company's overall credit risk is within a manageable range through quarterlyaudits of existing customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoringthe customer's credit risk, according to the customer's credit characteristics of its grouping. Customers who arerated as "high risk" will be placed on the restricted customer list and the company will be able to credit it in thenext period, subject to additional approval, otherwise it must be required to pay the corresponding payment inadvance.
2. Market RiskThe market risk of financial instruments refers to the risk that the fair value or future cash flow of the financialinstruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchangerisk and other price risks.(1) Interest Rate RiskInterest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes fromshort-term bank loans. The Company meets various short-term financing needs through establishing goodbank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guaranteethe sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interestrate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange RiskForeign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments wouldfluctuate due to the market price changes. The Company would match the foreign currency incomes and expensesas far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial
assets and liabilities in the total assets, there’s no forward foreign exchange contract or currency swap contract
signed by the Company in January 2018- 2017.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financialliabilities priced by US dollar, Yen, Euro and GBP . For the amount of foreign currency financial assets andforeign currency financial liabilities converted into RMB, please refer to Note 7. In the notes to the consolidatedfinancial statements, 79 foreign currency monetary items.
XI. Disclosure of fair value1. Ending fair value of the assets and liabiliies measured by fair value2.Recognized basis for the market price sustaining and non-persistent measured by fair value oon first-order3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure
sustaining and non-persistent on second-order4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 35. Sensitiveness analysis on unobservable parameters and adjustment information between opening andclosing book value of consistent fair value measurement items at level 36. Explain the reason for conversion and the policy governing when the conversion happens if conversionhappens among consistent fair value measurement items at different levels7. Changes in the valuation technique in the current period and the reason for change8. Fair value of financial assets and liabilities not measured at fair value9.Other
XII.Related parties and related-party transactions1. Parent company information of the enterprise
| Parent company name | Registration place | Nature | Registered capital | Share ratio of parent company against the company(%) | Vote right ratio of parent company against the company(%) |
| Tunghsu Group | No.369, Zhujiang Road, High-tech | Investment , production and R & | 31.8billion | 15.97% | 21.85% |
| zone, Shijiazhuang | D, etc. |
Explanation on parent company of the enterpriseUltimate controller of the Company is Li Zhaoting
2.Subsidiary of the EnterpriseSee details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.3.Cooperative enterprise and joint ventureSee Notes IX.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or
occurred in pervious period：
| Name | Relation of other Related parties with the company |
| CUHK international business factoring co., Ltd | Associated enterprise |
| Tunghsu Group Finance Co., Ltd. | Associated enterprise |
| Tunghsu(Deyang) Graphene Industry Development Fund Partnership (Limited Partnership) | 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. | Controlled by the same actual controller |
| Tunghsu Group Finance Co., Ltd. | Joint venture of the company |
| Yinchuan Fengxiang Street Underground integrated Management Co., Ltd. | Controlled by the same actual controller |
| Yixian Xuhua Park Construction Development Co., Ltd. | Controlled by the same actual controller |
| Guangdong Huakai Real estate Development Co., Ltd. | Controlled by the same actual controller |
| Li Qing | The spouse of the actual controller |
| Kunming Tunghsu Qiming Investment Development Co., Ltd. | Controlled by the same actual controller |
| Aahui Tunghsu Dabieshan Agricultural Technology Co., Ltd. | Controlled by the same actual controller |
| Dongguan Yijiu Real Estate Development Co., Ltd. | Controlled by the same actual controller |
| Tunghsu North Real Estate（Beijing）Co., Ltd. | Controlled by the same actual controller |
| Tunghsu Technology Development Co., Ltd. | Controlled by the same actual controller |
| Tunghsu Lantian New Energy Co., Ltd. | Controlled by the same actual controller |
| Fujian Hengda Investment Co., Ltd. | Controlled by the same actual controller |
| Hunan Baoan Hongji Real Estate Development Co., Ltd. | Controlled by the same actual controller |
| Huiyin Jinkong Asset Management Co.,Ltd. | Controlled by the same actual controller |
| Huidong Baoan Hongji Real Estate Development Co., Ltd. | Controlled by the same actual controller |
| Huidong Baoan Jinan Real Estate Development Co., Ltd. | Controlled by the same actual controller |
| Shenzhen Hongji Property Management Co., Ltd. | Controlled by the same actual controller |
| Chengzhou Zhexu Real Estate Co., Ltd. | Controlled by the same actual controller |
| Zhangzhou Shenghuawu Real Estate Development Co., Ltd. | Controlled by the same actual controller |
| Chongqing Tunghsu Qide Real Estate Co., Ltd. | Controlled by the same actual controller |
| Baoshi Group, Industry & Trade Company Mineral Water Factory | Controlled by the same actual controller |
| Shijiazhuang Tunghsu Machinery Co.,Ltd. | Controlled by the same actual controller |
| Shanghai Anxuan Autormation Technology Co., Ltd. | Controlled by the same actual controller |
| Tibet Xuri Asset Management Co., Ltd. | Controlled by the same actual controller |
| Beijing Hexie Guanglu Technology Co., Ltd. | Controlled by the same actual controller |
| Chengdu Taiyisi Technology Co., Ltd. | Controlled by the same actual controller |
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
In RMB
| Related party | Content | Current amount | Approval trading limit | Whether over the | Last amount |
| trading limit(Y/N) | |||||
| Baoshi Group | Security fees | 360,500.00 | |||
| Anhui Tunghsu Dabie Mountain Agricultural Technology Co., Ltd. | Tea oil | 28,800.00 | |||
| Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. | Material | 4,000,000.00 | |||
| Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | Mechanical & Electrical Equipment | 980,000.00 |
Related transactions on sale goods and receiving services
In RMB
| Related parties | Content of related transaction | Amount of current period | Amount of previous period |
| Beijing Hexie Guanglu Technology Co., Ltd. | Efficient lightbulb | 287,179.49 | |
| Chengdu Taiyisi Technology Co., Ltd. | Efficient lightbulb | 23,131.62 | |
| Chengdu Optoelectronic Technology Co., Ltd. | Efficient lightbulb | 13,203.41 | |
| Chengdu Optoelectronic Technology Co., Ltd. | Traction roll project | 611,459.82 | 504,871.80 |
| Dongguan Yijiu Real Estate Development Co., Ltd. | Construction Engineering | 431,182.25 | |
| Tunghsu North Real Estate (Beijing) Co., Ltd. | Efficient lightbulb | 40,528.38 | |
| Tunghsu North Real Estate (Beijing) Co., Ltd. | Graphene | 48,801.64 | |
| Tunghsu Group | Efficient lightbulb | 1,589,885.32 | |
| Tunghsu Technology Development Co.,, Ltd. | Construction Engineering | 3,794,623.64 | |
| Tunghsu Technology Group Co., Ltd. | Efficient lightbulb | 811.97 | |
| Tunghsu Technology Group Co., Ltd. | Graphene | 2,735.05 |
| Tunghsu Lantian New EnergyCo., Ltd. | Construction Engineering | 2,719,618.11 | |
| Fujian Hengda Investment Co.,Ltd. | Construction Engineering | 2,745,454.55 | |
| Fujian Hengda Investment Co.,Ltd. | Graphene | 15,404.96 | |
| Guangdong Huakai Real Estate Development Co., Ltd. | Construction Engineering | 19,945,292.12 | 7,565,972.68 |
| Hebei Baoshi Lighting Co., Ltd. | Efficient lightbulb | -37,264.96 | |
| Hunan Baoan Hongji Real Estate Development Co., Ltd. | Construction Engineering | 229,566.55 | |
| Huiyin Jinkong Asset Management Co., Ltd. | Efficient lightbulb | 270,305.10 | |
| Huidong Baoan Hongji Real Estate Development Co., Ltd. | Construction Engineering | 46,614,031.74 | |
| Huidong Baoan Jinan Real Estate Development Co., Ltd. | Construction Engineering | 46,435,095.47 | |
| Kunming Tunghsu Qiming Investment Development Co., ltd. | Construction Engineering | 140,707,948.79 | |
| Shenzhen Hongji Property Management Co., Ltd. | Efficient lightbulb | 263,333.34 | |
| Shengzhou Zhezhao Real Estate Co., Ltd. | Construction Engineering | 35,168,074.85 | |
| Shengzhou Zhezhao Real Estate Co., Ltd. | Graphene | 13,641.03 | |
| Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. | Construction Engineering | 594,000.00 | |
| Yixian Xuhua Park Construction Development Co., Ltd. | Construction Engineering | 39,616,134.40 | 7,783,800.00 |
| Yinchuan Fengxiang Street Underground integrated Management Co., Ltd. | Construction Engineering | 45,273,158.21 | 97,789,036.93 |
| Zhangzhou Huawu Real Estate Development Co., Ltd. | Construction Engineering | 22,413,913.92 | |
| Zhangzhou Huawu Real Estate Development Co., Ltd. | Efficient lightbulb | 6,974.36 |
| Chongqing Tunghsu Qide Real Estate Co., Ltd. | Construction Engineering | 18,348,758.40 |
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
| Name of the employer | Name of the undertaker | Asset situation of the undertaker | Start date | Terminating date | Pricing basis | Gains from the deal in report period |
| Tunghsu Group, Yingkou Coastal Development Construction Co., Ltd.Minmetals (Yingkou) Industrial Park Development Co., Ltd. | Tunghsu Optoelectronic Technology Co., Ltd. | Tunghsu (Yingkou) Optoelectroric Display Co., Ltd. | January 1,2012 | June 30,2018 | Notes1 | 250,000.00 |
Notes 1：Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),
including basic management fee of 1 million per year, incentive management fees per year managed company
with net operating profit after tax of 5% calculation（Base incentive management fees deduct prior years' losses）
Notes 2: Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),including basic management fee of 1 million per year, incentive management fees per year managed companywith net operating profit after tax of 5% calculation.
Notes 3 :On June 30, 2018, Tunghsu Optoelectronic Technology Co., Ltd. purchased a 65% stake in Tunghsu(Yingkou) Optoelectronic Display Co., Ltd. held by Tunghsu Group Co., Ltd., and the equity custody ended.
Lists of entrust/contractee(3) Information of related lease
（4）Status of related party guarantee
As a secured party for the company
In RMB
| Guarantor | Guarantee amount | Start date | End date | Execution accomplished or not |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | March 15,2018 | May 15,2019 | No |
| Tunghsu Group , Li Zhaoting | 30,000,000.00 | May 22,2018 | May 22,2019 | No |
| Tunghsu Group | 100,000,000.00 | January 31,2018 | December 31,2018 | No |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | June 26,2018 | June 24,2019 | No |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | October 26,2017 | October 26,2018 | No |
| Tunghsu Group , Li Zhaoting | 200,000,000.00 | November 30,2017 | November 30,2018 | No |
| Tunghsu Group | 100,000,000.00 | July 31,2017 | July 30,2018 | No |
| Tunghsu Group , Li Zhaoting | 400,000,000.00 | August 15,2017 | August 14,2018 | No |
| Tunghsu Group , Li Zhaoting | 50,000,000.00 | August 3,2017 | August 2,2018 | No |
| Li Zhaoting | 400,000,000.00 | October 19,2017 | October 19,2018 | No |
| Li Zhaoting | 560,000,000.00 | December 15,2017 | December 15,2018 | No |
| Tunghsu Group | 200,000,000.00 | December 22,2017 | December 22,2018 | No |
| Tunghsu Group | 50,000,000.00 | November 1,2017 | October 30,2018 | No |
| Tunghsu Group | 20,000,000.00 | Novermber 16,2017 | November 25,2018 | No |
| Tunghsu Group | 50,000,000.00 | December 1,2017 | November 30,2018 | No |
| Tunghsu Group | 50,000,000.00 | December 28,2017 | December 27,2018 | No |
| Tunghsu Group | 50,000,000.00 | February 27,2018 | February 27,2019 | No |
| Tunghsu Group | 25,000,000.00 | April 28,2018 | April 27,2019 | No |
| Tunghsu Group | 100,000,000.00 | July 7,2017 | July 6,2018 | No |
| Tunghsu Group | 20,000,000.00 | July 26,2017 | July 6,2018 | No |
| Tunghsu Group | 80,000,000.00 | August 1,2017 | August 1,2018 | No |
| Tunghsu Group | 50,000,000.00 | August 29,2017 | August 28,2018 | No |
| Tunghsu Group | 100,000,000.00 | September 25,2017 | September 24,2018 | No |
| Tunghsu Group | 50,000,000.00 | October 9,2017 | October 8,2018 | No |
| Tunghsu Group | 50,000,000.00 | August 30,2017 | August 29,2018 | No |
| Tunghsu Group | 25,000,000.00 | October 19,2017 | October 19,2018 | No |
| Tunghsu Group | 70,000,000.00 | September 22,2017 | September 21,2018 | No |
| Tunghsu Group | 50,000,000.00 | October 12,2017 | October 11,2018 | No |
| Tunghsu Group | 40,000,000.00 | September 29,2017 | September 27,2018 | No |
| Tunghsu Group | 100,000,000.00 | October 26,2017 | October 25,2018 | No |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | December 29,2017 | December 28,2018 | No |
| Tunghsu Group | 200,000,000.00 | June 11,2018 | June 8,2019 | No |
| Tunghsu Group | 50,000,000.00 | August 24,2017 | August 24,2018 | No |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | November 13,2017 | November 12,2018 | No |
| Tunghsu Group , Li Zhaoting | 70,000,000.00 | January 11,2018 | December 31,2018 | No |
| Tunghsu Group , Li Zhaoting | 30,000,000.00 | February 13,2018 | February 12,2019 | No |
| Tunghsu Group , Li Zhaoting | 42,000,000.00 | April 10,2018 | October 10,2018 | No |
| Tunghsu Group , Li Zhaoting | 38,000,000.00 | April 11,2018 | October 11,2018 | No |
| Tunghsu Group | 95,000,000.00 | March 19,2018 | March 12,2019 | No |
| Tunghsu Group | 90,000,000.00 | April 12,2018 | April 2,2019 | No |
| Tunghsu Group | 15,000,000.00 | June 12,2018 | May 7,2019 | No |
| Tunghsu Group | 25,000,000.00 | October 20,2017 | October 19,2018 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 299,650,000.00 | June 7,2016 | June 7,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 200,000,000.00 | May 15,2017 | May 15,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 300,000,000.00 | June 2,2017 | June 2,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 115,000,000.00 | October 31,2017 | October 31,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 200,000,000.00 | December 27,2016 | December 27,2018 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 200,000,000.00 | December 29,2016 | December 29,2018 | No |
| Tunghsu Group, Li Zhaoting, Li Qing | 100,000,000.00 | December 23,2016 | December 23,2018 | No |
| Tunghsu Group | 194,000,000.00 | December 15,2016 | December 15,2018 | No |
| Tunghsu Group , Li Zhaoting | 100,000,000.00 | March 3,2017 | March 2,2019 | No |
| Tunghsu Group , Li Zhaoting | 204,000,000.00 | March 29,2017 | September 28,2018 | No |
| Tunghsu Group , Li Zhaoting | 199,000,000.00 | February 24,2017 | August 23,2018 | No |
| Tunghsu Group , Li Zhaoting | 97,000,000.00 | April 27,2017 | October 26,2018 | No |
| Tunghsu Group, Tunghsu Optoelectronic Investment Co., Ltd., Li Zhaoting | 400,000,000.00 | November 30,2016 | November 30,2019 | No |
| Tunghsu Group , Li Zhaoting | 41,666,666.62 | January 6,2017 | January 6,2019 | No |
| Tunghsu Group , Li Zhaoting | 99,000,000.00 | July 7,2017 | July 6,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing. | 75,000,000.00 | September 26,2013 | April 11,2022 | No |
| Tunghsu Group, Li Zhaoting, Li Qing. | 300,000,000.00 | April 1,2014 | April 11,2022 | No |
| Tunghsu Group, Li Zhaoting, Li Qing. | 150,000,000.00 | April 22,2015 | April 11,2022 | No |
| Tunghsu Group , Li Zhaoting | 450,000,000.00 | September 30,2016 | September 29,2021 | No |
| Tunghsu Group | 545,000,000.00 | January 28,2013 | January 27,2021 | No |
| Tunghsu Group | 39,699,600.00 | January 28,2013 | January 27,2021 | No |
| Tunghsu Group | 455,000,000.00 | November 7,2016 | June 20,2024 | No |
| Tunghsu Group | 95,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 190,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 190,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 95,000,000.00 | September 18,2017 | September 15,2022 | No |
| Tunghsu Group | 190,000,000.00 | October 31,2017 | September 15,2022 | No |
| Tunghsu Group | 190,000,000.00 | 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 , Li Zhaoting | 200,000,000.00 | November 10,2017 | November 15,2022 | No |
| Tunghsu Group | 106,813,432.82 | May 25,2016 | May 20,2019 | No |
| Tunghsu Group , Li Zhaoting | 158,352,857.29 | May 31,2016 | May 30,2021 | No |
| Tunghsu Group , Li Zhaoting | 35,118,543.68 | June 16,2016 | June 16,2019 | No |
| Tunghsu Group, Li Zhaoting, Li Qing. | 200,000,000.00 | May 27,2016 | May 26,2019 | No |
| Tunghsu Group , Li Zhaoting | 15,000,000.00 | October 20,2015 | October 15,2018 | No |
| Tunghsu Group | 220,000,000.00 | March 17,2016 | March 17,2028 | No |
| Tunghsu Group | 280,000,000.00 | June 16,2016 | June 16,2028 | No |
| Tunghsu Group | 106,000,000.00 | September 3,2016 | September 2,2024 | No |
| Tunghsu Group | 45,000,000.00 | May 28,2018 | May 28,2019 | No |
| Tunghsu Group | 135,000,000.00 | June 27,2018 | June 27,2019 | No |
(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 Zhong Optoelectronic Technology Co., Ltd | 1,310,860.00 | 629,722.60 | ||
| Account receivable | Hebei Baoshi Energy saving lighting technology Co., Ltd. | 43,600.00 | |||
| Account receivable | Guangdong Huakai Real Estate Development Co., Ltd. | 10,549,142.58 | 19,184,644.15 | ||
| Account receivable | Jinzhou Xulong New Material Co., Ltd. | 2,449,198.07 | 2,449,198.07 | ||
| Account receivable | Kunming Tunghsu Qiming Investment Development Co., Ltd. | 61,056,762.56 | 29,110,261.39 | ||
| Account receivable | Yinchuan Fengxiang Street Comprehensive | 181,832,540.69 | 173,363,844.40 | ||
| Construction Management Co., Ltd. | |||||
| Account receivable | Huidong Baoan Jinan Real Estate Development Co., Ltd. | 22,079,177.86 | |||
| Account receivable | Zhangzhou Shenghua Real Estate Development Co., Ltd. | 19,886,092.23 | |||
| Account receivable | Shengzxhou Zhexu Real Estate Co., Ltd. | 19,316,896.10 | |||
| Account receivable | Huidong Baoan Hongji Real Estate Development Co., Ltd. | 14,107,754.19 | |||
| Account receivable | Chongqing Tunghsu Real Estate Co., Ltd. | 4,701,058.91 | |||
| Account receivable | Tunghsu Technology Development Co., Ltd. | 4,174,086.00 | |||
| Account receivable | Fujian Hengda Investment Co., Ltd. | 3,020,000.00 | |||
| Account receivable | Tunghsu Lantian New Energy Co., Ltd. | 903,222.06 | |||
| Account receivable | Guangdong Huakai Real Estate Development Co., Ltd. | 10,549,142.58 | |||
| Account receivable | Huiyin Jinkong Asset Management Co., Ltd. | 221,379.90 | |||
| Account receivable | Beijing Hexie Guanglu Technology Co., Ltd. | 138,000.00 | |||
| Account receivable | Shenzhen Hongji Property | 15,405.00 |
| Management Co., Ltd. | |||||
| Account receivable | Hunan Baoan Hongji Real Estate Development Co., Ltd. | 12,626.16 | |||
| Prepayments | Hebei Baoshi Energy saving lighting technology Co., Ltd. | 60,000.00 | 60,000.00 | ||
| Prepayments | Hebei Decoration Printing Machinery Co., Ltd. | 848,396.00 | 835,680.87 | ||
| Other non-current assets | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 420,000.00 | |||
| Other non-current assets | Tunghsu Group | 132,132,857.44 | 132,132,857.44 |
（2）Payables
In RMB
| Name | Related party | Book balance at year end | Book balance at year beginning |
| Account payable | Shijiazhuang XumingTube Co., Ltd. | 14,948.00 | 14,948.00 |
| Account payable | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 986,344.16 | 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. | 4,030,296.40 | 30,296.40 |
| Account payable | Shijiazhuang Xuling Electronic Technology Co., Ltd. | 1,320,164.09 | 1,320,164.09 |
| Account payable | Shijiazhuang Tunghsu Machinery Equipment Co., Ltd. | 14,381.92 | 14,381.92 |
| Advance revenue | Tunghsu Group | 46,176,000.00 | 46,176,000.00 |
| Advance revenue | Chengdu Zhong Optoelectronic Technology Co., Ltd | 38,692.80 | 38,692.80 |
| Advance revenue | Yixian Xuhua Park | 45,562,318.00 | 3,852,318.00 |
| Construction Development Co., Ltd. | |||
| Advance revenue | Huidong Baoan Hongji Real Estate Development Co., Ltd. | 61,371,921.90 | |
| Other payable | Baoshi Group | 722,000.00 | |
| Other payable | Tunghsu Group | 198,526,185.51 | 470,099,941.55 |
| Other payable | Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. | 4,739,613.30 | 4,700,985.30 |
| Other payable | Tibet Xuri Capital Management Co., Ltd. | 8,000,000.00 | |
| Other payable | Huidong Baoan Jinan Real Estate Development Co., Ltd. | 8,400.00 | |
| Other payable | Chengdu Zhong Optoelectronic Technology Co., Ltd | 6,850.92 | |
| Other payable | Shijiazhuang XumingTube Co., Ltd. | 97,031.00 | 97,031.00 |
7. Related party commitment8.OtherXIII. Stock payment1. 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 payment5.OtherXIV. Commitments1.Importance commitment eventsImportant commitments of existence of balance sheet date
As of June 30,2018, there was no significant commitment or contingency in the Group.2. Contingency(1) Significant contingency at balance sheet date1.Chengdu Tongxing Micro-credit Co., Ltd. sued Sichuan Shangwei Construction and Decoration Engineering Co.,Ltd., Wang Shaoqing, Lin Suqiong, Yang Jianzhong, Tunnel Group Engineering Co., Ltd. for the loan contract,and requested a loan amount of RMB 6,500,000, interest of RMB 87,7500 , penalty interest of 1,395,333.33yuan, a total of 8,772,833.33 yuan,among them, the company bears the guarantee responsibility. Chuan 0191
Minchu No. 10209 of the People’s Court of Chengdu High-tech Industrial Development Zone (2016). It is first
notified to hold the court session on October 11, 2016, and later the judge telephoned the lawyer to postpone thecourt session. As of the reporting date, no judgment has yet been made, and the court sentenced that the 7377500yuan is to be borne by Shangwei Company, Wang Shaoqing, Lin Suqiong, Yang Jianzhong, and R&B GroupEngineering Co., Ltd. are jointly and severally liable for the guarantee. The court froze the amount and interest of7,441,788 yuan.2. Liupanshui Jiuxiang Blasting Engineering Co., Ltd. sued the company due to project construction and requestedthe company to pay the project amount of RMB341,198.25 and the interest since April 30, 2014 (calculated at 6%per annum), The No. 1929 case of (2017) QIAN 0524 MIN CHU of Zhijin County Court, Guizhou Province washeld on June 20, 2017. At present, the appeal against jurisdiction objection to the Bijie County Intermediate
People’s Court is currently being heard.
3Construction project contract disputes. The plaintiff Xu Wenhua requested amount: 1. Construction and
guarantee funds of RMB 3 million and the calculation of interest losses on the basis of the People's Bank loaninterest rate for the same period from August 10, 2013 to the time of payment; 2. The defendant will bear the legalcosts. The No. 992 case of (2017) E 2823, MINCHU of the People's Court of Badong County, Hubei Province
was held at 14:40 on June 12, 2017. and the appeal against jurisdiction objection to the People’s Court of Enshi
Tujia and Miao Autonomous Prefecture of Hubei Province is currently being heard.4. Construction project contract disputes. Plaintiff (counterclaim defendant) Zhou Jihong, defendant (counterclaim
plaintiff) Daosui Group Engineering Co., Ltd., defendant (counterclaim third party) Road&bridge InternationalCo., Ltd., defendant (counterclaim third party) Chengdu Beixin Construction Engineering Co., Ltd. The NanchongIntermediate People's Court made the No. 29 civil judgment (2013) Nanzhongfaminchuzi on April 21, 2017,ruling: Daosui Group paid Zhou Jihong 167,034.97 yuan of various amount and interest, and the interest should beaccounted from May 16, 2013; reject the counter-claims of Daosui Group. After the verdict of first instance,Road&bridge International Co., Ltd. and Bridge Construction Co., Ltd. and Daosui Group Engineering Co., Ltd.both filed an appeal.
5. Labor contract dispute, plaintiff: Yang Zaibing, who requesting an amount of 333,874.00 yuan. Chuan 3330
Minchu No. 16 case of Sichuan Province Dege County People’s Court (2017) was opened at 9: 00 on July 20,2017. On July 25, 2017, Chuan 3330 Minchu No. 16 Judgment of Sichuan Province Dege County People’s
Court (2017) ruled that Luo Zhicong paid the plaintiff 333,874.00 yuan, and Sichuan province Jinkun Labor
Company and R&B Group Guang’an Engineering Co., Ltd. were jointly and severally liable. A second instance
appeal has been filed.6. 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.
7. Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co., Ltd., Defendant: Daosui
Group Engineering Co., Ltd., Road&bridge International Co., Ltd., Third Party: Earth and Rock 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 2,750,721.63 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.
8. 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 the
period, 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 of
legal fees, travel expenses, property preservation guarantee fees, etc., totaling 50,000 yuan. The People’s Court of
Nanan District, Chongqing City accepted and issued the No. 5009 and No.5010 notice of respondence to action of(2017)YU 0108 ZI to Daosui Group on August 3, 2018.
9. Dispute on sales contract, plaintiff: Building Materials Management Department of Xiaoren Yangliuping Sand
Field, Zishi Township, Tianquan County, who requesting the payment of 2,262,194.00 yuan for sand and gravelmaterials and interest calculated from the date of prosecution to the date of actual payment based on the bankinterest rate for the same period. In the case of Chuan 1825 Minchu No. 668 of Sichuan Tianquan County
People’s Court (2017), R&B group filed a jurisdictional objection. The case is scheduled to open at 9: 00 on
August 18, 2017. The appeal for jurisdictional objection is currently being heard.
10.Disputes over compensation for property damages, plaintiff: Yan Kaiyuan, defendant: Project Management
Department of A2-1 bid of R&B Group Engineering Co., Ltd., Xie Wanyou and Yin Xiuchao, the plaintiffsrequest an compensation for damages to electromechanical wells, water pumps and other losses totaling182,900.00 yuan. No. 01292 case of Helingeer County People's Court (2015) is scheduled to open on December29, 2015.11.Dispute on construction contract, plaintiff: Nanchong Jianan Labor Co., Ltd., defendant: CCCC Road andBridge Construction Co., Ltd., third party: R&B Group Engineering Co., Ltd., the plaintiff requests a lawsuit
related to R&B Group: the defendant was ordered to pay 3,850,838.84 yuan of creditor’s rights and interest
transferred by the third party, and the third party was jointly and severally liable. The case of Chuan 1302 Minchu
No. 1489 of Nanchong Shunqing District People’s Court (2017) will open at 15: 30 on June 6, 2017. CCCCRoad and Bridge Construction Co., Ltd. raised a jurisdictional objection which is currently being heard.
12.Dispute over right of recourse, plaintiff: Liang Honglin, requesting 234,000.00 yuan, i.e. overdue interest,Chuan 1681 Minchu No. 225 case of Huaying Municipal People's Court (2016) was on court on July 21, 2017. OnAugust 8, 2017, Chuan 1681 Minchu No. 225 judgment of Huaying Municipal People's Court (2016) ruled thatR&B should return 100,000 yuan to plaintiff and calculate interest based on loan interest for the same periodstarting from (September 20, 2016).
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
3.OtherXV. Post-balance-sheet events1. Significant events had not adjusted2. Profit distribution3. Sales return4.Notes of ohter significant eventsXVI. Other signifiant enents1.The accounting errors correction in previous period
（1）Retrospective restatement（2）Prospective application
2. Debt restructuring3. Replacement of assets
（1）Non-monetary assets exchange（2）Other assets replacement
4.Pension plan5.Discontinuing operation6. 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 notes7. Other important transactions and events have an impact on investors’ decision-making
8.OtherXVII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
| Category | Amount in year-end | Amount in year-beginning | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Account receivables provided bad debt provision in credit risk groups | 24,066,841.50 | 100.00% | 333,978.91 | 1.39% | 23,732,862.59 | 24,456,691.50 | 100.00% | 619,428.91 | 2.53% | 23,837,262.59 |
| Total | 24,066,841.50 | 100.00% | 333,978.91 | 1.39% | 23,732,862.59 | 24,456,691.50 | 100.00% | 619,428.91 | 2.53% | 23,837,262.59 |
Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable √ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
| Aging | Amount in year-end | ||
| Account reivable | Provision for bad debts | Proportion% | |
| Within item 1 year | |||
| Within credit period | 900.00 | ||
| Subtotal 1 year | 900.00 | ||
| 3-4 years | 138,768.39 | 69,384.20 | 50.00% |
| Over 5 years | 264,594.71 | 264,594.71 | 100.00% |
| Total | 403,363.10 | 333,978.91 | |
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
| Name | Amount in year-end | Amount in year- begin |
| Other group | 23,663,478.40 |
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of thereversed or collected part during the reporting period was of RMB285,450.0.Where the current bad debts back or recover significant amounts:
In RMB
| Name | Back or withdraw money | Method |
| Hebei Shengshi Machinery tools Group Co., Ltd. | 285,450.00 | |
| Total | 285,450.00 | -- |
（3）The current accounts receivable written-offs situation（4）The ending balance of other receivable owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period isRMB20,069,912.24, which accounts for 83.39% 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(1) Other accounts receivable disclosed by category
In RMB
| Category | Amount in year-end | Amount in year- begin | ||||||||
| Book Balance | Bad debt provision | Book value | Book Balance | Bad debt provision | Book value | |||||
| Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | Amount | Proportion(%) | |||
| Other account receivables provided bad debt provision in credit risk groups | 7,277,650,814.21 | 100.00% | 1,590,109.46 | 0.02% | 7,276,060,704.75 | 4,792,302,782.16 | 100.00% | 1,590,109.46 | 0.03% | 4,790,712,672.70 |
| Total | 7,277,650,814.21 | 100.00% | 1,590,109.46 | 0.02% | 7,276,060,704.75 | 4,792,302,782.16 | 100.00% | 1,590,109.46 | 0.03% | 4,790,712,672.70 |
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√Applicable□ Not applicable
In RMB
| Aging | Amount in year-end | ||
| Other receivable | Provision for bad debts | Proportion(%) | |
| WithinItem 1 year | |||
| Within credit period | 12,411,147.86 | ||
| Within 1 year after credit period | 96,550.70 | 4,827.54 | 5.00% |
| Subtotal 1 year | 12,507,698.56 | 4,827.54 | |
| 3-4 years | 200,000.00 | 100,000.00 | 50.00% |
| Over 5 years | 1,485,281.92 | 1,485,281.92 | 100.00% |
| Total | 14,192,980.48 | 1,590,109.46 | |
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicableOther Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable□ Not applicable
| Name | Closing Balance | ||
| Other account reivable | Bad debt provision | Proportion | |
| Related current account | 7,235,364,183.36 |
| Deposit | 26,693,666.66 | ||
| Personal official borrowing | 676,970.63 | ||
| Persona Returnable Insurance | 576,360.09 | ||
| Export tax refunds | 146,652.99 |
| Total | 7,263,457,833.73 |
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debt provision：
(3) Other account receivables actually cancel after wtite-off(4) Other account receivables category by nature of money
In RMB
| Naature | Ending book balance | Beginning book balance |
| Related current account | 7,235,364,183.36 | 4,728,633,349.92 |
| current account | 14,192,980.48 | 28,846,088.84 |
| Deposit | 26,693,666.66 | 31,693,666.66 |
| Personal official borrowing | 676,970.63 | 159,109.89 |
| Persona Returnable Insurance | 576,360.09 | 446,555.34 |
| Other | 146,652.99 | 2,524,011.51 |
| Total | 7,277,650,814.21 | 4,792,302,782.16 |
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
| Name | Nature | Year-end balance | Age | Portion in total other receivables(%) | Bad debt provision of year-end balance |
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | Current account | 2,830,661,471.94 | Within credit period | 38.90% | |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | Current account | 2,503,648,360.33 | Within credit period | 34.40% | |
| Shanghai Sunlong Bus Co., Ltd. | Current account | 745,000,000.00 | Within credit period | 10.24% | |
| Beijing Xufeng Real Estate Co., Ltd. | Current account | 455,852,347.30 | Within credit period | 6.26% | |
| Fuzhou Xufu Optoelectronic Technology Co., Ltd. | Current account | 282,500,616.65 | Within credit period | 3.88% | |
| Total | -- | 6,817,662,796.22 | -- | 93.68% |
(6) Accounts receivable involved with government subsidies3.Long-term equity investment
In RMB
| Items | End of term | Beginning of term | ||||
| Book Balance | Impairment provision | Book value | Book Balance | Impairment provision | Book value | |
| Investment in subsidiaries | 23,295,190,195.21 | 378,172,649.84 | 22,917,017,545.37 | 21,269,035,359.71 | 378,172,649.84 | 20,890,862,709.87 |
| Investment in joint ventures and associates | 2,141,338,074.97 | 2,141,338,074.97 | 2,129,502,187.30 | 2,129,502,187.30 | ||
| Total | 25,436,528,270.18 | 378,172,649.84 | 25,058,355,620.34 | 23,398,537,547.01 | 378,172,649.84 | 23,020,364,897.17 |
（1）Investment to the subsidiary
In RMB
| Name | Opening balance | Increase | Decrease | Closing balance | Withdrawn impairment provision in the reporting period | Closing balance of impairment provision |
| Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. | 290,900,000.00 | 290,900,000.00 | ||||
| Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd | 1,966,568,609.92 | 1,966,568,609.92 | ||||
| Zhengzhou Xufei Optoelectronic Technology Co., Ltd. | 1,791,853,741.58 | 1,791,853,741.58 | ||||
| Sichuan Xuhong Optoelectronic Technology Co., Ltd. | 1,221,178,272.58 | 800,000,000.00 | 2,021,178,272.58 | |||
| Wuhu Tunghsu Optoelectronic Technology Co., Ltd. | 4,711,064,000.00 | 4,711,064,000.00 | ||||
| Fuzhou Tunghsu Optoelectronic Technology Co., Ltd. | 1,745,000,000.00 | 1,745,000,000.00 | ||||
| Wuhan Tunghsu Optoelectronic Technology Co., Ltd. | 3,247,200.00 | 690.57 | 3,246,509.43 | |||
| Fuzhou Xufu | 24,000,000.00 | 24,000,000.00 |
| Optoelectronic Technology Co., Ltd. | ||||||
| Shenzhen Xuhui Investment Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Xuyou Electric Material Technology（Wuxi）Co., Ltd. | 570,628,050.30 | 570,628,050.30 | ||||
| Tunghsu（Yingkou）Optoelectroinc Display Co., Ltd. | 167,993,576.37 | 167,993,576.37 | ||||
| Shijiazhuang Colour Bulb Co., Ltd | 439,341,956.80 | 439,341,956.80 | 378,172,649.84 | |||
| Jiangsu Jixing New Material Co., Ltd. | 222,345,300.00 | 71,040,000.00 | 293,385,300.00 | |||
| Tunghsu（Kunshan）Display Material Co., Ltd. | 800,000,000.00 | 800,000,000.00 | ||||
| Beijing Xutan New Material Technology Co., Ltd. | 10,500,000.00 | 10,500,000.00 | ||||
| Beijing Xufeng Real Estate Co., Ltd. | 470,000,000.00 | 470,000,000.00 | ||||
| Tunghsu Construction Group Co.,Ltd. | 3,000,453,728.53 | 3,000,453,728.53 | ||||
| Shanghai Sunlong Bus Co., Ltd. | 3,800,000,000.00 | 1,400,000,000.00 | 5,200,000,000.00 | |||
| Shenzhen Sanbao Chuangxin Inteligent Co., Ltd. | 157,750,000.00 | 157,750,000.00 | ||||
| Beijing Tunghsu Huaqing | 3,500,000.00 | 3,500,000.00 |
| Investment Co., Ltd. | ||||||
| anghai 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 | ||||
| Total | 21,269,035,359.71 | 2,596,783,576.37 | 570,628,740.87 | 23,295,190,195.21 | 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 | |||||||||||
| Zhongda Chengxin International Commercial Factoring Co., Ltd. | 73,306,968.08 | 2,886,186.76 | 76,193,154.84 | ||||||||
| Tunghsu(Deyang)Graphene | 19,454,200.71 | 29,527.77 | 19,483,728.48 | ||||||||
| Development Fund Partnership（LP） | |||||||||||
| Tunghsu Finance Group | 2,004,062,204.94 | 6,471,235.43 | 2,010,533,440.37 | ||||||||
| Zibo Bus Co., Ltd. | 32,678,813.57 | 2,448,937.71 | 35,127,751.28 | ||||||||
| Subtotal | 2,129,502,187.30 | 11,835,887.67 | 2,141,338,074.97 | ||||||||
| Total | 2,129,502,187.30 | 11,835,887.67 | 2,141,338,074.97 |
（3）Other notes
| Long term equity investment impairment | Opening balance | Increase | Decrease | Closing balance |
| Name | ||||
| Shijiazhuang Colour Bulb Co., Ltd | 378,172,649.84 | 378,172,649.84 |
| Total | 378,172,649.84 | 378,172,649.84 |
4.Business income and Business cost
In RMB
| Items | Amount of current period | Amount of previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 54,602,917.98 | 38,492,540.23 | 11,006,532.52 | 6,941,391.49 |
| Other business | 713,064.42 | 27,591,148.66 | 21,150,871.79 | |
| Total | 55,315,982.40 | 38,492,540.23 | 38,597,681.18 | 28,092,263.28 |
Other notes：
5. Investment income
In RMB
| Items | Amount of current period | Amount of previous period |
| Investment loss through disposal of long-term equity investment | 11,835,887.67 | -15,507,683.03 |
| Disposal of investment income from long-term equity investments | -20,628,050.30 | |
| Other Investment income | 13,923,452.07 | 22,183,417.04 |
| Total | 5,131,289.44 | 6,675,734.01 |
6.OtherXVIII. Supplementary Information1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
| Items | Amount | Notes |
| Gains/Losses on the disposal of non-current assets | -664,826.45 | |
| 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 | 44,668,918.09 | |
| Gains and losses from assets under trusted investment or Management | 13,923,452.07 | Investment Financing income |
| Gain/loss from debt reorganization | 484,207.00 | |
| Net gain/loss of current term from consolidation of subsidiaries under common control from beginning of term to the consolidation date | -9,555,668.76 | Business combination under the same control. Retroactive adjustment |
| Entrusted with the operating of the trust to obtain fee income | 235,849.06 | |
| Net amount of non-operating income and expense except the aforesaid items | 2,694,248.35 | |
| Less: .Amount of influence of income tax | 6,987,734.04 | |
| Amount of influence of minority interests | -2,152,164.99 | |
| Total | 46,950,610.31 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses 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 as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
| Profit of the report period | Return on net assets . Weighted（%） | Earnings per share | |
| Basic earnings per share | Diluted gains per share | ||
| Net profit attributable to the Common stock shareholders of Company. | 2.74% | 0.15 | 0.15 |
| Net profit attributable to the Common stock shareholders of Company after deducting of non-recurring gain/loss. | 2.59% | 0.140 | 0.120 |
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 inspection1.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 organ3. 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 Chinese
version shall prevail.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman:Wang Lipeng
Issue day approved by the Board of Directors：August 30，2018