Tunghsu Optoelectronic 2018 Annual Report Summary
Stock Code: 000413; 200413 Stock abbreviation: Tunghsu Optoelectronic; Tunghsu B No: 2019-025
Tunghsu Optoelectronic
2018 Annual Report Summary
I. Important Notice
This annual report summary is taken form the full text of the Annual Report. Investors are advised to read
carefully the full text of the Annual Report published on the media designated by China Securities Regulatory
Commission in order to fully understand the Company’s operation results, financial position and future plan.
Declaration
All the Company’s directors have attended the board meeting for the review of this Report.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Plans for profit distribution on ordinary shares or conversion of capital reserves into share capital proposed to the
Board during the reporting period.
√ Applicable □Not applicable
Whether provident fund reserve for share capital
□ Yes √ No
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: The
total share of 5,730,250,118 are the base of Company‘s total share capital. The Company would distribute cash
dividend to all the shareholders at the rate of CNY 0.70 for every 10 shares (with tax inclusive), 0 bonus shares
（including tax）and no reserve would be converted into share capital.
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Tunghsu Optoelectronic 2018 Annual Report Summary
Plans for profit distribution on preference shares for the reporting period approved by the Board
□ Applicable √ Not applicable
II. Basic information about the Company
1. Company profile
Tunghsu Optoelectronic,
Stock abbreviation Stock code 000413, 200413
Tunghsu B
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
No.1 Caiyuan Street, Xicheng District, No.1 Caiyuan Street, Xicheng District,
Contact address
Beijing Beijing
Tel 010-63541061 010-63541061
Fax 010-63541061 010-63541061
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
2. Major operations or products during the reporting period
The Company is a leading manufacturer of optoelectronic display materials and a comprehensive service provider
of intelligent manufacturing. In the field of optoelectronic display materials, With a liquid crystal glass substrate
production capacity ranked first in China and fourth in the world, the Company makes a horizontal layout in cover
glass originals, cambered cover glass, optical films, color filters, sapphire and other key optoelectronic display
materials and stands out with an industrial cluster advantage; in high-end equipment manufacturing, the Company
takes advantage of the technology spillover effect of its independently developed complete-set glass substrate
manufacturing equipment to fulfill an in-depth exploration for high-end intelligent equipment in the
optoelectronic industry chain while extending the high-end equipment manufacturing business to a variety of
areas and acting as its important income and profit source; in new energy automobile, the Company takes Sunlong
Bus as carrier to spare no effort to promote the development of such sectors as new energy buses and logistics
vehicles and work hard to build the new energy automobile business to its another important income and profit
source; in addition, the Company develops its main businesses in conjunction with its building installation and
electronic communication seen as value-added businesses which supplement its main businesses.
1) Optoelectronic Display Materials Business System
a) LCD glass substrate business
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Tunghsu Optoelectronic 2018 Annual Report Summary
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, with
extremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set of
liquid crystal glass substrate production equipment, the company took the lead in breaking the international
monopoly and achieved the home-making of liquid crystal glass substrate. The Company is the only enterprise in
China that masters the two kinds of glass substrate production processes-namely overflow fusion method and the
floating method-at the same time. Currently, the Company possesses four production bases of liquid crystal glass
substrate respectively located in Zhengzhou, Shijiazhuang, Wuhu and Fuzhou, covering G5, G6, and G8.5
TFT-LCD liquid crystal glass substrates. The company has 20 liquid crystal glass substrate production lines
(including construction-in-progress and proposed projects), with that the mass production capacity tops first in
China and ranks fourth in the world.
b) Other display material business
To strengthen the competitiveness and profitability of its business of display materials and comply with the OLED
flexible display development trend, the Company adopts a horizontal industry train extension strategy. Since 2015,
it has laid out in cover glass originals, cambered cover glass, optical films, color filters, sapphire and other
businesses, hence its business structure has been optimized and industrial cluster effect has taken shape.
Cover glass is intended for protecting touch modules and display screens. The Company has a float-process
high-aluminum cover glass substrate original production line with a high-aluminum cover glass substrate original
production capacity ranked first in China and third in the world; cambered cover glass is also known as 3D cover
glass and characterized by curving flexibility, thinness, transparency, cleanliness, fingerprint resistance, dazzle
resistance, weathering resistance, etc. and can promote the touch feelings of intelligent terminal products. The
cambered cover glass production line with a production capacity of nearly 5 million sheets built by the Company
in 2018 has been available for production and sales in batches. Applicable to flexible display, this product is one
of powerful measures taken by the Company to comply with the OLED flexible display development trend; the
Company's optical film products can cover diffusion, reflection, prism, composite prism and other sub-areas and
are mainly used in TFT-LCD backlight; color filter is a key component for LCD colorization and the Company's
staple is G5 color filters; sapphire is extensively applied in LED substrate materials and optical elements among
other fields and the Company's current staples include 2-inch and 4-inch LED substrate products.
c) Graphene preparation and industrialization business
The graphene, with excellent optical, electrical, thermal and mechanical properties, has important application
prospects in the material science, energy, etc., and it is considered to be a revolutionary new material. In recent
years, the Company has highlighted laying out in one of strategic emerging industries--industrial application of
graphene. In the report period, the Company successfully kept pace with University of Manchester of UK and
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Tunghsu Optoelectronic 2018 Annual Report Summary
other famous universities and scientific research institutions in the world regarding industrial application of
graphene and sped up improving development of its own products using graphene by internationally advanced
equipment and technical reserves. Based on such four developed industrial product lines as graphene-based
lithium ion battery, graphene electric heating, graphene energy-saving illumination and graphene anti-corrosion
coating, the Company made breakthroughs in techniques of preparation of high-quality graphene and its
derivative raw materials and kept actively exploring new techniques for preparation of graphene and other
two-dimensional materials. At the moment, the Company's products of industrial application of graphene mainly
cover all kinds of graphene products, graphene-clad anode materials, graphene-based lithium ion battery, graphene
high-power LED series light, graphene intelligent electric heating, graphene anti-corrosion coating,
graphene-based solid-state flexible lithium ion battery and other products, some of which have been supplied in
batches and sold overseas.
2) High-end equipment and technical services business
By a powerful independent R&D capacity, the Company takes the lead in breaking the international
comprehensive mold regarding production equipment and technology and becomes China's only company that has
a complete-set liquid crystal glass substrate production process and equipment manufacturing capacity at the same
time. After years of development, the Company has completed an in-depth exploration for high-end intelligent
equipment in optoelectronic industry chain and kept developing the business market of high-end equipment with a
high technology and additional value by the technology spillover effect of its independently developed
complete-set glass substrate production equipment in the context that equipment substitutes labor and meets
intelligent efficient production in national industrial manufacturing. Step by step, it has become a hi-tech
equipment manufacturer that provides design, R&D, and manufacturing of high-end intelligent equipment,
semiconductor equipment, and automatic production line equipment for high-end customers in TFT-LCD and
OLED panel display industry. Besides, the Company reached out to intelligent platform robotics expected to
render a new driver to steady development of its high-end equipment business through M&A of Sanbao
Innovation in 2018.
3) New Energy Bus Business
The Company acquired Sunlong Bus in 2017, marking that it is duly stepping into the new energy bus area. At the
moment, Sunlong Bus's new energy automobile products including BEV, hybrid, and fuel cell and other new
energy commercial vehicles are mainly oriented in Mainland China (save Qinghai and Tibet) and sold in batches
to South Korea, Southeast Asia, Middle East, South America, and Africa among other regions. In 2018, Sunlong
Bus was ranked in the eighth place for the eighth time regarding sales; by sub-area, Sunlong's new energy
highway bus and bus sales were ranked in the fourth and tenth place respectively. In addition to outstanding sales,
Sunlong Bus keeps developing new techniques to replace the prior ones and in hydrogen cell bus manufacturing
in particular, Since the first hydrogen fuel cell bus was produced in 2007, it has accumulated years of experience.，
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Tunghsu Optoelectronic 2018 Annual Report Summary
In 2018, the Company made a full range of major types of hydrogen cell buses ranging from 8m to 12m, wherein
10m and 12m urban hydrogen cell buses were successfully incorporated into List of Recommended Types of New
Energy Automobiles in Publicity and Application; in intelligent public transportation product manufacturing,
Sunlong Bus worked together with DeepBlue Technology to jointly develop an intelligent Panda Bus,
implementing scenario-based application of artificial intelligence and offering a new development function for the
Company's new energy automobile business.
4) Other businesses
a) Construction & installation business
The Company runs its building installation business supplementing its main businesses in a variety of models such
as integrated underground pipe gallery, municipal infrastructure, sponge city, and smart city based on other key
sectors, provides infrastructure and construction engineering services in new materials, energy-saving
environmental protection, bridge engineering and other areas and makes intelligent products and quality services
in conjunction with each other to boost its growth.
b) Electronic communication business
The electronic communication business is a replenishment to the Company's main businesses. The Company
integrates high-end equipment and liquid crystal display materials customer resources and uses its mature
marketing channels to keep increasing import and export channels for liquid crystal display modules, memory
chips, high-end peripheral and complete-built-unit electronic products and render quality integrated services for
customers with personalized needs.
3. Major accounting data and financial indicators
1) Major accounting data and financial indicators for the last three years
Indicate 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.
In RMB
2018 2017 Changed 2016
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Tunghsu Optoelectronic 2018 Annual Report Summary
over last
year（％）
After
Before adjustment After adjustment adjustmen Before adjustment After adjustment
t
Operating revenue
28,211,700,021.12 17,336,364,158.13 17,276,969,039.03 63.29% 7,632,049,549.25 7,631,092,002.07
（Yuan）
Net profit attributable to
the shareholders of the 2,163,607,505.39 1,743,666,827.25 1,730,174,564.57 25.05% 1,303,685,863.90 1,301,466,332.10
listed company（Yuan）
Net profit after
deducting of
non-recurring gain/loss
2,045,875,472.28 1,539,583,478.72 1,534,569,793.43 33.32% 961,311,896.60 961,311,896.60
attributable to the
shareholders of listed
company（Yuan）
Net Cash flow generated
by business operation 388,252,004.52 1,265,773,428.34 1,253,178,511.31 -69.02% 748,957,164.24 741,861,295.45
（Yuan）
Basic earning per
0.38 0.33 0.32 18.75% 0.28 0.28
share(Yuan/Share)
Diluted gains per
share(Yuan/Share)(Yuan/ 0.38 0.33 0.32 18.75% 0.28 0.28
Share)
Net asset earning ratio
6.83% 7.09% 6.95% -0.12% 7.55% 7.54%
（%）
Changed
End of 2017 over last End of 2016
year（％）
End of 2018
After
Before adjustment After adjustment adjustmen Before adjustment Before adjustment
t
Gross assets（Yuan） 72,576,122,859.60 67,683,329,226.91 68,611,332,346.16 5.78% 50,287,380,415.68 51,373,374,293.43
Net assets attributable to
shareholders of the listed 32,521,130,925.14 30,922,796,455.46 30,941,044,388.04 5.11% 23,286,206,822.68 23,325,208,072.11
company（Yuan）
2) Main Financial Index by Quarters
In RMB
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Tunghsu Optoelectronic 2018 Annual Report Summary
First quarter Second quarter Third quarter Fourth quarter
Operating income 4,665,570,392.15 6,464,281,398.73 6,133,715,988.34 10,948,132,241.90
Net profit attributable to the
425,984,601.17 432,311,487.91 456,861,464.93 848,449,951.38
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
391,131,962.40 420,213,516.37 440,653,348.34 793,876,645.17
to the shareholders of listed
company
Net Cash flow generated by
-1,057,540,776.02 1,141,158,063.68 -599,044,017.62 903,678,734.48
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √ No
4 Share capital and shareholders
1) Number of holders of ordinary shares and preference shares with restored voting right and Top 10
shareholders
In Share
350,362(includ Total The total num
357,654(includ Total
ing 333,148 shareholders ber of preferre
Total number of ing340,582 preferred sharehol
shareholdders at the end of d shareholders
common shareholdders ders at the end of
hoding A shares the month voting rights
shareholders at the hoding A shares 0 the month from the 0
and 17214 from the date restored at per
end of the and 17072 date of disclosing
shareholders of disclosing iod-end
reporting period shareholders the annual report(if
holding B the annual (if any)(See
holding B shares) any)(See Notes 8)
shares) report Notes 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of shares Number of share pledged/frozen
Proportion Amount of
Shareholders Nature of held at period -end
of shares restricted
shareholder Changes in State of share Amount
held（%） shares held
reporting period
Domestic Non
Tunghsu Group -State-owned 15.97% 915,064,091 352,006,791 Pledge 799,643,042
legal person
Shijiazhuang Domestic Non
Baoshi Electronic -State-owned 5.80% 332,382,171 Pledge 153,520,000
Group Co., Ltd. legal person
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Tunghsu Optoelectronic 2018 Annual Report Summary
Shanghai Huimao
Domestic Non
Enterprise
-State-owned 4.58% 262,626,262 262,626,262 Pledge 80,240,722
Management Co.,
legal person
Ltd.
Minsheng Royal
Fund
Management Co.,
Ltd － -Ping An Other 1.70% 97,192,224
Bank-Daye
TrustZengli 2
single Fund Trust
Qianhai equity
Domestic Non
investment fund
-State-owned 1.45% 83,341,345
(limited
legal person
partnership)
Tunghsu
Optoelectronic
Technology Co., Other 1.27% 72,639,296
Ltd. － The first
ESOP
Beixin Ruifeng
Fund － China
Merchants Bank
－ Daye Trust － Other 1.08% 62,095,032
Daye TrustProfit
increase 3 single
fund plan
Shenzhen Taianer
Domestic Non
Information
-State-owned 1.07% 61,165,682 Pledge 55,265,682
Technology Co.,
legal person
Ltd.
Zhonghai Trust
Co., Ltd. －
Zhonghai Trust－
Tunghsu Other 0.92% 52,555,280
Optoelectronic
ESOP pooled
Fund trust
China Life AMP
Asset Other 0.85% 48,619,336
Management Co.,
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Tunghsu Optoelectronic 2018 Annual Report Summary
Ltd. － Bohai
Bank－Minsheng
Trust － China
Minsheng
Trust-Zhicheng
No.192 Tunghsu
Optoelectronic
Private placement
fund trust plan
Explanation on shareholders The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co., Ltd. and the
participating in the margin trading top ten shareholders of Tunghsu
business Group Co., Ltd. have relationship and constitute persons taking concerted action.
Notes to the shareholders involved in
financing securities (if any)(See Not applicable
Notes 4)
2) Total preference shareholders and the shares held by the top 10 preference shareholders
□ Applicable √ Not applicable
No preference shares in the Company.
3) Block diagram of the ownership and control relations between the Company and the actual controller
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Tunghsu Optoelectronic 2018 Annual Report Summary
5 Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
Yes
1) Basic information of the corporate bonds
Abbreviated Bond Bond Balance
Bond Name Code Date Due Interest Rate
Name (RMB10,000)
2015- corporate
bond of Tunghsu
15 Tunghsu bonds 112243 May 19,2020 95,200 6.68%
Optoelectronic
Technology Co., Ltd
Information about interest paid
The first period bond interest 60,000,000.00 was paid in full amount on schedule in the current
and bonds honored during the
period
reporting period
2) Information about the rating of the corporate bonds
On June 14, 2018, United Ratings Co., Ltd. issued trace rating report LHPZ [2018] No.960 based on the
company’s 2016 Annual Report. By tracking and rating the long-term credit status of the main body of the
company and corporate bonds publicly issued by the company, the rating results is determined as the long-term
credit rating AA+，and its outlook is "Steady".” (For details, please refer to the "Tracking Rating Announcement"
of the company disclosed on www.cninfo.com on June 16, 2018)
According to the United Rating Co.,Ltd’s requirements on tacking and rating, a regular rating shall be carried out
within 2 months after the company’s disclosure of 2018 annual report. Also, the United Rating Co.,Ltd shall carry
out randomly tracking and rating during the duration of the corporate bonds based on relevant information.
3) The key accounting data and financial indicators of the latest two years to the end of the reporting
period
In RMB10,000
Rate of change in the same
Items 2018 2017
period
Debt ratio 53.95% 53.11% 0.84%
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Tunghsu Optoelectronic 2018 Annual Report Summary
EBITDA/Total debts 12.51% 12.19% 0.32%
Interest coverage ratio 36.79 22.23 65.50%
III. Discussion and Analysis of the Management
1. Business Operation summary in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In 2018, Tunghsu Optoelectronic kept forging ahead despite the difficulty and challenge. In the report period, the
Company's management and employees made consorted efforts to steadily push forward all its production and
operation activities and advanced all the work concerning operation plans worked out by its board of directors. In
2018, the Company kept innovating based on the prior results and focused on technical innovation to proceed with
upgrading and growth of the existing industry. In the context that industrial collaboration and cluster effect drove
each other, the Company further optimized its industry chain layout in optoelectronic display materials, high-end
intelligent manufacturing, new energy automobile and graphene and promoted production capacity and growth to
implement rapid and efficient growth. In the report period, the Company took the initiative to blaze new trails in a
pioneering spirit and forge ahead with determination. It implemented an operating income of RMB 28.212 billion,
up 63.29% compared with 2017; it implemented a net profit attributable to listed company shareholders of RMB
2.153 billion, up 24.43% compared with 2017.
1) Optoelectronic display material business
a) Ever-rising performance driven by advanced glass substrate business
In 2018, an increase in the demand for jumbo display screens at panel market drove an ever-increasing demand for
display screen glass substrates. In the context, the Company's glass substrate production agreed with the demand
of liquid crystal panels, leading a steady development in its glass substrate business. At the moment, the Company
has five liquid crystal glass substrate production bases located at Zhengzhou, Shijiazhuang, Wuhu, Fuzhou and
Yingkou and more than 20 liquid crystal glass substrate production lines covering G5, G6 and G8.5 liquid crystal
glass substrate products and can provide high-quality glass substrate products for downstream panel customers
with different dimension needs. In compliance with the development trend and technical reform of jumbo and
multi-screen times, the Company effectively yield and output rate of jumbo liquid crystal glass substrates, lowers
production cost and boosts stable growth of performance. In the report period, the Company took advantage of
strengths of multiple dimensions and types of liquid crystal glass substrate products and full coverage of major
panel manufacturers in Mainland China and Taiwan including BOE, Century Technology (Shenzhen) Corporation,
Infovision Optoelectronics, Shenzhen Tianma, AU Optronics, etc. to implement a sales income of RMB 4.716
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Tunghsu Optoelectronic 2018 Annual Report Summary
billion in the year. In the report period, the project of "key techniques for highly uniform ultra-clean glass
substrate for optoelectronic display, equipment development and industrialization" which the Company's
wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, Zhengzhou Xufei, and
Shijiazhuang Xuxin got involved in won the first prize regarding substrates in the 2018 "National Award for
Science and Technology Progress" awarded by the State Council of the People's Republic of China.
b) Company's accumulation of OLED display glass substrate techniques under a horizontal layout
In the wake of breakthrough in and demand for flexible display techniques on market, it is expected that flexible
display screens will boom in the future. In the context, the Company complies with the OLED flexible display
screen trend and makes an optimal horizontal layout in high-aluminum cover glass substrate, cambered cover
glass, optical film, color filter and other key optoelectronic display materials that apply to flexible display area. In
the report period, the Company implemented bulk supply to downstream, which became a new performance
growth point step by step.
In 2018, the Company's wholly-owned subsidiary Xuhong Optoelectronics built and put into production and sales
a cover glass production line for cambered display with an annual capacity of nearly 5 million sheets. Its best
product "Panda King" cover glass made a significant breakthrough in flexibility--implementing 360°bending and
breaking the international technical monopoly. Characterized by fall resistance, scratch resistance, high
transmittance, high touch sensitivity, etc., "Panda King" won the first prize of 2018 Sichuan Patent Award and was
successfully incorporated into the raw material supply chain of such distinguished terminal brands as Huawei,
MIUI, LG, Lenovo and VIVO through finish machining of such downstream customers as Lens Technology, Biel
Optoelectronics, Junda Optoelectronics, Firstar Panel Technology and Dongguan Xuhong. The cover project of
"complete-set techniques for mass production of high-strength ultra-thin float-process aluminosilicate screen
protection glass, application and development" which Xuhong Optoelectronics got involved in won the second
prize regarding covers in the 2018 "National Award for Science and Technology Progress" awarded by the State
Council of the People's Republic of China.
In the report period, the Company's first G5 color filter production line for TFT-LCD was put into trial production,
effectively raising the additional value of the existing G5 liquid crystal glass substrate products.
c) Acceleration of industrialization of graphene by building an alliance of international giants for
cooperation
Seizing the academic commanding height and conducting international industrial cooperation and integrated
linkage, the Company entered into a Manchester with British University of Manchester and UG2M to address key
problems in product engineering at the current stage and accelerate improving its own product development
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Tunghsu Optoelectronic 2018 Annual Report Summary
system based on worldwide advanced equipment and top technical reserves of University of Manchester. The
Company established a partnership with UG2M--a British company taking the lead in graphene to jointly drive
industrialization of graphene and technical promotion in this respect and incubate products applied in the
graphene industry, laying a foundation for selling products in China and around the world. The "Super Light"
graphene product launched by the Company's holding subsidiaries including Huzhou Mingshuo and Mudanjiang
Mingshuo won bids for roadway lighting projects at Hangzhou, Puyang, Zhangjiakou, Mudangjiang, etc.,
indicating that graphene high-power LED street lamp product has been recognized on market step by step by its
own outstanding advantages to further promote its mass industrialization which will have a positive impact on the
business performance of the Company's graphene business sector. In 2018, the Company's graphene business
sector implemented an operating income of RMB 181 million.
2) Intelligent manufacturing service system
Steady promotion of equipment and technical services with sustainable effort
Based on years of experience in electronic glass equipment manufacturing and rapid growth of China's high-end
equipment manufacturing in recent years and guided by a good policy environment, the Company has completed
an in-depth exploration for high-end intelligent equipment in optoelectronic industry chain and shifted its
spending from traditional sectors to strategic emerging sectors and development from the equipment technology
market needed to the business market of high-end equipment with a high technology and additional value. Step by
step, it has become a hi-tech equipment manufacturer that provides design, R&D, and manufacturing of high-end
intelligent equipment, semiconductor equipment, and automatic production line equipment for high-end customers
in TFT-LCD and OLED panel display industry. The Company spares no effort to foster and develop the high-end
intelligent equipment manufacturing seen as a strategic option to seize economic and technological development
commanding height in the future. In the report period, the Company acquired Sanbao Innovation to reach out to
intelligent manufacturing service robotics from high-end equipment manufacturing. As a result of the industrial
upgrading, the Company improved its competitive edge. And in the wake of ever-rising market demand, the
Company took a steady flow of high-end equipment manufacturing orders. In 2018, the Company's business of
high-end equipment and technical services implemented a continuously but steadily rising operating income of
RMB 8.388 billion, attributable to orders for high-end equipment including optoelectronic display equipment and
semiconductor equipment concluded with BOE, Yuansheng Optoelectronics, China Star Optoelectronics, Xiamen
Tianma, and Shiya Technology among other companies.
3) New Energy Bus Business
New energy automobile business complying with the situation and forging ahead despite the downturn
Only the toughest grass can stand strong winds; fire is the test of gold. In review of the 2018 new energy bus
13
Tunghsu Optoelectronic 2018 Annual Report Summary
market, in the context of tighter subsidy policy, restricted capacity increase and slowdown in technical updating
and upgrading, emerging and booming Sunlong Bus built a new pattern by its own comprehensive strength in this
round of shuffle in the industry. In 2018, Sunlong sold 5,658 new energy buses and earned a sales income of RMB
4.258 billion, ranked in the eighth place in the industry with an increase of 69.39%. In the report period, the
Company's hydrogen cell bus won the bid for the Zhangjiakou downtown bus purchase project to provide green
travel services for citizens of Zhangjiakou during the 2022 Beijing-Zhangjiakou Olympic Winter Games and put
into practice the philosophy of green Olympic Winter Games. Till the end of the report period, it covered 8-12m
major types of hydrogen cell buses, among which, 10m and 12m hydrogen cell city buses were successfully
incorporated into the List of Recommended Types of New Energy Automobiles in Publicity and Application and
many hydrogen cell city buses were displayed at international exhibitions. In the corresponding period, the
Company's wholly-owned subsidiary Guangxi Sunlong became a military supplier of Back Service Department of
Central Military Commission, driving the Company's new products to be steadily launched on military supply
market and assuring the Company's strategic development. Besides, the Company is planning a new energy
automobile industry base layout covering East China, West China, South China and North China and building a
Tunghsu New Energy Automobile Industry Cluster. After this project is completed and put into production, the
Company's new energy automobile business sector will act in line with the situation, boosting development of
China's new energy automobile industry and driving development of new energy, new materials, Internet of
Things, automatic drive, artificial intelligence and other strategic emerging industries concerned.
4) Other value-added business systems
Progress with maintained stability in conjunction with building installation business and electronic
communication business
Building installation engineering business and electronic communication business supplement the Company's
main businesses. In the report period, the Company run its building installation business by providing
infrastructure and construction engineering services in new materials, energy-saving environmental protection,
bridge engineering and other areas and making intelligent products and quality services in conjunction with each
other in a variety of models such as integrated underground pipe gallery, municipal infrastructure, sponge city, and
smart city based on other key sectors to boost its growth. In addition, the Company maintained an ever-rising
momentum in the electronic communication business. Under the industrial collaboration effect, the Company
made use of high-end equipment and liquid crystal display materials customer resources and its mature marketing
channels to keep increasing import and export channels for liquid crystal display modules, memory chips,
high-end peripheral and complete-built-unit electronic products and render quality services for customers with
personalized needs. In 2018, the Company's building installation engineering business and electronic
communication business implemented an operating income of RMB 5.28 billion and RMB 3.63 billion
respectively.
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Tunghsu Optoelectronic 2018 Annual Report Summary
2. Material change in principal activities during the reporting period
□ Yes √No
3. Products accounting for over 10% of revenue or profit from principal activities of the Company
□ Applicable √ Not applicable
4. Seasonal or cyclical operations requiring special attention
□ Yes √ No
5. Material difference of revenue, operating costs or net profit attributable to holders of ordinary shares
of the Company for the reporting period from the last reporting period
□ Applicable √ Not applicable
6. Suspension in trading or delisting
□ Applicable √ Not applicable
7. Events relating to the financial report
1) Explanation change of the accounting policy, accounting estimate and measurement methods as
compared with the financial reporting of last year
√ Applicable □ Not applicable
（1）Accounting policy changes due to the implementation of the new Accounting Standards for Business
Enterprises.
On June 26,2018，The Ministry of Finance issued the Notice on Revising and Issuing the Format of General
Enterprise Financial Statements for 2018 (Caikuai [2018] No. 15).
The impact of the implementation of this accounting policy by the Company on the presentation of the items and
amounts of the prior financial statements is as follows:
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Tunghsu Optoelectronic 2018 Annual Report Summary
No Name of affected item in the statements Affected amount of December 31, 2017 / 2017
Increase + / decrease -
1 Notes receivable -538,128,584.84
Account receivable -7,912,616,302.75
Notes receivable & account receivable 8,450,744,887.59
2 Interest receivable -49,456,785.29
Other receivable 49,456,785.29
3 Notes payable -1,063,897,679.89
Account payable -4,602,026,192.66
Notes payable & account payable 5,665,923,872.55
4 Interest payable -106,119,769.42
Dividend payable -35,000,000.00
Other payable 141,119,769.42
5 Management expenses -256,991,555.91
R & D ecpenses 256,991,555.91
（2）Explanation retrospective restatement due to correction of significant accounting errors in the
reporting period.
□ Applicable √ Not applicable
Nil
（3）Explanation change of the consolidation scope as compared with the financial reporting of last year.
√ Applicable □ Not applicable
a) Enterprise consolidation not under the same control
Income of
Net Profit of
Acquire
Ratio of Determination Acquire from
Time-point of Method of from the
Name of Obtained Cost of Obtained Purchasing Basis on the the Purchasing
Obtained Obtained Purchasing
Acquirer Equity Equity Date Purchasing Date to the
Equity Equity Date to the
(100%) Date End of the
End of the
Period
Period
Shenzhen May 30, 157,598,587.50 67.00% May 30,
Enterprise
Sanbao 2018 2018
consolidation Acquisition of
Innovation 7,659,108.35 -12,733,040.13
not under the control
Intelligence
same control
Co., Ltd.
Zhongcheng May 30, 140,000,000.00 70.00% Enterprise March 30, Acquisition of -7,172,706.59
16
Tunghsu Optoelectronic 2018 Annual Report Summary
National 2018 consolidation 2018 control
construction not under the
1Co., Ltd. same control
Huaxi April 4, 56,000,000.00 100.00% Enterprise April 4,
Nanchong 2018 consolidation 2018 Acquisition of
Automobile not under the control
Co., Ltd. same control
b) Business combination under the same control
In 10,000 yuan
Name Proportion Basis Combination Recognition income of Net profit of Income of Net profit of
date basis of the the merged the merged the merged
combination combined party from party during party during
date party from the the the
the beginning of comparison comparison
beginning the current period period
of the period to the
current date of
period to merger
the date of
merger
Tunghsu 65.00% Parent June Pay the 27,289,664.99 -11,435,425.33 16,069,429.21 -13,043,965.22
(Yingkou) Company 30,2018 consideration
Optoelectronic and control
Display Co., the operation
Ltd.
c) The disposal of subsidiary
Name Equity disposal Proportion Disposal way Time of loss of Basis difference
price control between the
disposal price
and the disposal
of the
investment in
the consolidated
financial
statements at
the level of the
net assets of the
17
Tunghsu Optoelectronic 2018 Annual Report Summary
subsidiary
Xuyou 550,000,000.00 51.00% Sales April 28,2018 Received the 3,182,206.12
Electronic consideration,
Material completed the
Technology transfer of
（ Wuxi) Co., property rights,
Ltd. lost control
Continued
Name Proportion of Book value of Fair value of Re-measure the Method for determining Amount of other
remaining the remaining the remaining gain or loss the fair value of the comprehensive income
equity on the equity on the equity on the arising from the remaining equity on the related to Atomic Company's
date of loss of date of loss of date of loss of remaining equity date of loss of control equity investment transferred
control control control at fair value and main assumptions to investment gains and
losses
Xuyou 0.00% 0.00 0.00 0.00 0.00 0.00
Electronic
Material
Technology
（Wuxi) Co.,
Ltd.
4 Subsidiary increased due to new establishment in this period
01) On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of RMB
22.7345 million and the paid-up capital of RMB 22.7345 million. Of which, Shenzhen Xuhui Investment
Holding Co., Ltd.Subscribet and pays RMB 12 million, holding 52.78% of the shares. Jiangxi University of
Science and Technology subscribet and pays RMB 10.7345 million , holding 47.22% of the shares.
02) On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
million and the paid-up capital of RMB 2 million.
03) On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
04) On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30
million and the paid-up capital of RMB 10,000.
05) On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
18
Tunghsu Optoelectronic 2018 Annual Report Summary
Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent
Equipment Co., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the
shares.
06) November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up
capital of RMB10 million.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman: Wang Lipeng
Issue day approved by the Board of Directors：April 29,2019
19
