Tunghsu Optoelectronic Technology Co., Ltd. 2017 Annual Report
Tunghsu Optoelectronic Technology Co., Ltd.
2018 Annual Report
April 2019
1
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and 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 the
authenticity and completeness of the financial report enclosed in this annual report.
All the directors attended the board meeting for reviewing the Annual Report.
The development strategy, operation plan and other forward-looking statements involved in this report will not
constitute any substantive commitment to the investors by the Company. Investors please be aware of the
investment risks.
The company has already described the risk items existed in details in the report with reference to (IV) possible
risks of IX Operation Conditions Discussion and Analysis.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows: total
share of 5,730,250,118 for Base on the 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(including tax), 0 bonus share
(including tax) and no reserve would be converted into share capital.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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
Refers to Tunghsu Optoelectronic Technology Co., Ltd.
Company
Tunghsu（Yingkou）Optoelectronic Refers to Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.
Xuhong Optoelectronic Refers to Sichuan Xuhong Optoelectronic Technology Co., Ltd.
Wuhu Optoelectronic Refers to Wuhu Tunghsu Optoelectronic Technology Co., Ltd.
Wuhu Equipment Refers to Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.
Xufei Optoelectronic Refers to Zhengzhou Xufei Opteelectronic Technology Co., Ltd.
Xuxin Optoelectronic Refers to Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd.
Jiangsu Jixing Refers to Jiangsu Jixing New Material Co., Ltd.
Shenzhen Xin Ying Tong Refers to Shenzhen Xin Ying Tong Technology Co., Ltd.
Tunghsu (Kunshan ) Refers to Tunghsu（Kunshan）Display material Co., Ltd.
Chongqing Jihuateng Refers to Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Jiangsu Tunghsu Yitai Refers to Jiangsu Tunghsu Yitai Intelligent Equipment Co., Ltd.
Hunan Tunghsu Delai Refers to Hunan Tunghsu Delai Electronic Technology Co., Ltd.
Tunghsu Construction Refers to Tunghsu Construction Group Co., Ltd.
Fuzhou Xufu Refers to Fuzhou Xufu Optoelectronic Technology Co., Ltd.
Fuzhou Optoelectronic Refers to Fuzhou Tunghsu Optoelectronic Technology Co., Ltd.
Tunghsu Finance Company Refers to Tunghsu Group Finance Co., Ltd.
Shanghai Tanyuan Huigu Refers to Shanghai Tanyuan Huigu New Material Technology Co., Ltd.
Xutan New Material Refers to Beijing Xutan New Material Technology Co., Ltd.
Mingshuo Technology Refers to Mingshuo (Beijing) Electronic Technology Co., Ltd
Tengda Tengda Optical Refers to Suzhou Tengda Optical Technology Co., Ltd.
SUNLONG Refers to Shanghai Sunlong Bus Co., Ltd.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Guangxi Sunlong Automobile Manufacturing Co., Ltd. （Former
Guangxi Sunlong Refers to
Guangxi Yuanzheng New Energy Automobile Co., Ltd.）
Sanbao Innovation Refers to Shenzhen Sanbao Innovation Intelligence Co., Ltd.
BOE Refers to BOE Technology Group Co., Ltd.
CSOT Refers to China Star optoelectronics Technology Co., Ltd.
Tianma Refers to Tianma Microelectronics Co Ltd
TFT-LCD Refers to Thin Film Transistor Liquid Crystal Display
OLED Refers to Organic Light-Emitting Diode, OLED
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
Glass substrate Refers to 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
refers to the general name of optical diaphragms such as diffusion,
Optical film Refers to reflection, prism, composite prism, etc., mainly used in TFT LCD
backlights.
Critical original materials of LCD panel for realizing colorization
CF Refers to
display
Refers to two-dimensional carbon materials related to grapheme, with a
Grapheme materials Refers to
layer less than 10 carbon atoms
In addition to mobile phones, tablet PCs and other displays, for the touch
Cover glass Refers to screen touch module, display and non-touch screen display to protect the
transparent glass lens
Adopting new power systems, fully or mainly rely on new energy-driven
New Energy Bus Refers to
passenger bus, including pure electric bus and fuel cell bus
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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
Tunghsu Optoelectronic, Tunghsu B
change (if any)
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
No.9, Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei
Registered address
Province
Postal code of the Registered
050035
Address
Office Address No.1 Caiyuan Street, Xicheng District, Beijing
Postal code of the office
100053
address
Internet Web Site www:dongxuguangdian.com.cn
E-mail dxgd@dong-xu.com
II. 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
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
III. Information disclosure and placed
Newspapers selected by the Company for information China Securities Journal ,Shanghai Securities News,Securities Times and
disclosure Hong Kong Commercial Daily
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Securities Dept of the Company
placed
IV. Registration changes of the Company
Organization Code No Change
Changes in principal business activities
No Change
since listing (if any)
Changes is the controlling shareholder in
No Change
the past (is any)
V. Other Relevant Information
CPAs engaged
Name of the CPAs Hebei Guanghuacai Guanghua Certified public Accountants LLP.
24/F,A Building,Wantong New Word office Building,No.2 Fuwai Street, Xicheng District,
Office address
Beijing
Names of the Certified Public
Qi Zhenghua, Meng Xiaoguang
Accountants as the signatories
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable √Not applicable
Independent financial advisor hired by the Company to exercise constant supervision over the Company during
the Reporting period
√ Applicable □Not applicable
Name Office address Name of sponsor Consistent supervision period
Financial Area,(North), B
Zhongtian Huizhan
Zhongtian Guofu Securities
City,Changling North Road, Chen Dongyang, Zhang Jin 2017.10.26-2018.12.31
Co., Ltd.
Guanshanhu District, Guiyang,
Guizhou.
VI. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√Yes □No
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Reasons for retrospective restatements:
Business merger under the same control.
Changed over
2017 2016
last year（％）
2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
28,211,700,021 17,336,364,158 17,276,969,039 7,632,049,549. 7,631,092,002.
Operating revenue（Yuan） 63.29%
.12 .13 .03 25 07
Net profit attributable to the
2,163,607,505. 1,743,666,827. 1,730,174,564. 1,303,685,863. 1,301,466,332.
shareholders of the listed 25.05%
39 25 57 90 10
company（Yuan）
Net profit after deducting of
non-recurring gain/loss 2,045,875,472. 1,539,583,478. 1,534,569,793.
33.32% 961,311,896.60 961,311,896.60
attributable to the shareholders 28 72 43
of listed company（Yuan）
Net Cash flow generated by 1,265,773,428. 1,253,178,511.
388,252,004.52 -69.02% 748,957,164.24 741,861,295.45
business operation（Yuan） 34 31
Basic earning per
0.38 0.33 0.32 18.75% 0.28 0.28
share(Yuan/Share)
Diluted gains per
0.38 0.33 0.32 18.75% 0.28 0.28
share(Yuan/Share)(Yuan/Share)
Net asset earning ratio（%） 6.83% 7.09% 6.95% -0.12% 7.55% 7.54%
Changed over
End of 2017 End of 2016
last year（％）
End of 2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
72,576,122,859 67,683,329,226 68,611,332,346 50,287,380,415 51,373,374,293
Gross assets（Yuan） 5.78%
.60 .91 .16 .68 .43
Net assets attributable to
32,521,130,925 30,922,796,455 30,941,044,388 23,286,206,822 23,325,208,072
shareholders of the listed 5.11%
.14 .46 .04 .68 .11
company（Yuan）
VII.The differences between domestic and international 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
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
VIII.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 4,665,570,392.15 6,464,281,398.73 6,133,715,988.34 10,948,132,241.90
Net profit attributable to the
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
IX.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2018) Amount (2017) Amount (2016) Notes
Non-current asset disposal
gain/loss(including the write-off part for 3,450,757.10 -69,697.52 19,167.58
which assets impairment provision is made)
Govemment subsidies recognized in current
gain and loss(excluding those closely related
124,464,054.70 101,686,984.15 356,943,995.55
to the Company’s business and granted
under the state’s policies)
Income from the exceeding part between
investment cost of the Company paid for
obtaining subsidiaries , associates and 1,804,209.86
joint-ventures and recognizable net assets
fair value attributable to the Company when
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
acquiring the investment
Gain/loss on entrusting others with
14,623,990.55 59,041,599.98
investment or asset management
Net gain and loss of the subsidiary under the
common control and produced from
-11,435,425.33 66,046,481.62 66,680,503.61
enterprise consolidation from the beginning
of the period to the consolidation date
Income from custodian charge obtained
707,547.18 8,973,818.33 8,022,209.26
from entrusted operation
Net amount of non-operating income and
10,172,838.56 -29,905.76 -9,601,776.32
expense except the aforesaid items
Other non-recurring Gains/loss items 552,086.75
Less :Influenced amount of income tax 20,174,896.94 22,693,220.73 52,541,535.96
Influenced amount of minor shareholders’
4,628,919.46 17,351,288.93 31,172,338.08
equity (after tax)
Total 117,732,033.11 195,604,771.14 340,154,435.50 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for 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
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. Outline of Company Business
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 industry
No
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
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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.
I. Optoelectronic Display Materials Business System
1. LCD glass substrate business
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.
2. 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.
3. 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 other famous universities and scientific research institutions in the world regarding industrial
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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.
II. 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.
III. 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.，
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.
IV. Other businesses
1. Construction & installation business
The Company runs its building installation business supplementing its main businesses in a variety of models
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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.
2. 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.
II.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No
Fixed assets No
Intangible assets No
Since the first hydrogen fuel cell bus was produced in 2007, it has accumulated years of
Construction in process
experience.
The investment real estate was attributable to leasing of some properties and other fixed
Real estate Investment
assets in the current period.
The development disbursement increased, attributable to an increase in the sales income,
D velopment expenses
business extension and more spending on R&D.
The increase in development expenditure is due to the increase in sales revenue and the
Notes receivable & account receivable
expansion of business.
Prepayment The expansion of sales and production increases supplies and inventory.
In order to expand the scale of company development, increase the construction and
Other non-current assets
acquisition of long-term assets.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1.Strong ability of independent R & D and innovation
Based on years of industrial development and experience, Tunghsu Optoelectronic keeps strengthening its
independent innovation capacity, highlights cooperation and exchange with famous national and international
scientific research institutions and specialized universities and colleges, and builds an integrated
"industry-university-research" scientific research cooperation mechanism, which has founded a national
engineering lab of panel display glass technology and equipment, national enterprise technology center,
academician workstation, graphene research institute, etc. to give a powerful technical assurance and R&D
support to its sustainable development.
Till this date, the Company and its holding shareholders have obtained and applied for more than 2,400
independent intellectual properties pertaining to liquid crystal glass substrate, high-aluminum float-process cover
glass, high-end equipment manufacturing, complete-built-unit manufacturing, graphene product making, etc.
Herein the Company's wholly-owned subsidiaries including Wuhu Equipment, Wuhu Optoelectronic, Zhengzhou
Xufei, Shijiazhuang Xuxin, and Sichuan Xuhong, holding shareholder Tunghsu Group, Beijing University of
Technology and Wuhan University of Technology worked together to complete projects of "key techniques for
highly uniform ultra-clean glass substrate for optoelectronic display, equipment development and
industrialization" and "complete-set techniques for mass production of high-strength ultra-thin float-process
aluminosilicate screen protection glass, application and development" which won the first prize regarding
substrates and second prize regarding covers in the 2018 "National Award for Science and Technology Progress".
2. The scale advantages of core optoelectronic display materials
Till the end of the report period, the Company had five liquid crystal glass substrate production bases located
at Zhengzhou, Shijiazhuang, Yingkou, Wuhu and Fuzhou for making a full range of G5, G6 and G8.5 TFT-LCD
liquid crystal glass substrate products with a mass production capacity steadily ranked in the first place in China
and fourth place in the world and production lines for such key optoelectronic display materials as high-aluminum
cover glass, color filter and sapphire. As all its production lines are put into production one after another, the
Company has seen a year-on-year rise of market share in national optoelectronic display materials, its scale
benefit has taken shape, and all its key optoelectronic display materials have implemented a sound linkage effect,
effectively reinforcing its core competitiveness in optoelectronic display materials, raising the right to say in
offering downstream customers and assuring profitability of its key optoelectronic display materials.
3. The advantages of integration of endogenous and extension industrial chains
Relying on the controlling shareholder Tunghsu Group’s more-than-20 years’ experience and technological
accumulation, the Company, through the endogenous development method, gradually grew into a leading
optoelectronic display material supplier and the comprehensive high-end equipment manufacturer in the industry.
Meantime, the company, via the extension method, actively explored in the fields of new energy vehicles and
graphene, striving to build the Closed Loop of Industrial Chain of “high-end materials— Graphene-based
Lithium-ion Battery-New Energy Vehicle". Centering on the main route of utilizing the industrial synergy,
directing by realizing the absolute control and advancing by capital means, the company aimed to realize the
effect of “1+1>2”, and it has successively carried out the horizontal and vertical industrial chain integration for the
optoelectronic display materials chains and the high-end equipment manufacturing industry chains, thus adding
new vitality to the rapid development of the company.
4. Synergistic advantages & effects from various business sectors
In the field of optoelectronic display materials, the company has successively invested and established
factories in provinces including Hebei, Henan, Anhui, Sichuan, Jiangsu,Fujian and Liaoning , with the industrial
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
layout having the economies of scale, and for one hand, it has contributed a large amount of tax revenue to local
government and provided a large number of jobs, and for another hand, it has maintained close cooperation with
major customers such as BOE. Upon the M&A of Sunlong Bus, the Company has set out to invest and build new
energy automobile industry bases in Guangxi, Sichuan, Jiangsu and elsewhere and conduct profound cooperation
with the preceding areas.the synergy effect between the company's photoelectric display materials and intelligent
manufacturing business gradually became evident, thus gradually forming the business model with comprehensive
sales and synergistic effect, so that the company’s overall risk resistance capacity and comprehensive
competitiveness have been improved.
5. Highly-efficient management and decision-making mechanism
Since Tughsu Group became the controlling shareholder, the company's management system has achieved a
thorough transition from the state-owned enterprise to a private enterprise. The company has continuously
improved its incentive system and remuneration system, and the company has garnered a large number of elites
and talents as the company has set up the strict and attractive assessment mechanism, rolled out two employee
stock ownership plans and the stock incentives with restrictive-conditions and other flexible and efficient ways to
motivate the talents. Meantime, the management accurately and incisively studied and judged the market trends
and industrial development direction, quickly and flexibly seized opportunities, mobilized the talents and
organized the resources by marketization means, enabling that the company efficiently entered the strategic
emerging industries such as new energy vehicle and graphene and snatched the strategic high ground in time.
Therefore, the company’s highly flexible and efficient management and decision-making mechanism has
continuously spawned the productivity for the company, with the advantages becoming more obvious.
15
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
IV. Management’s Discussion and Analysis
I. General
In 2018, Tunghsu Optoelectronic kept forging ahead despite the difficulty and challenge. In the report period,
the Company's management and employees made consorted efforts to steadily push forward all its 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 2.164 billion, up 25.05% compared with
2017.
(1)Optoelectronic display material business
1. Ever-rising performance driven by advanced glass substrate business
In 2018, an increase in the demand for jumbo display screens at panel market drove an ever-increasing demand
for display screen glass substrates. In the context, the Company's glass substrate production agreed with 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 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.
2. Company's accumulation of OLED display glass substrate techniques under a horizontal layout
In the wake of breakthrough in and demand for flexible display techniques on market, it is expected 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
16
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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.
3. Acceleration of industrialization of graphene by building an alliance of international giants for cooperation
Seizing the academic commanding height and conducting international industrial cooperation and 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
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.
(II)Intelligent manufacturing service system
Steady promotion of equipment and technical services with sustainable effort
Based on years of experience in electronic glass equipment manufacturing and rapid growth of China'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
17
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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.
(II) 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
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 new energy bus achieved sales revenue of 4.258 billion yuan.
4.258 billion, ranked in the eighth place in the industry with an increase of 69.39%. In the report period, 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.
(III) 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.
18
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
II. Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2018 2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
28,211,700,021.12 100% 17,276,969,039.03 100% 63.29%
revenue
On industry
Optoelectronic
4,715,995,341.60 16.72% 3,385,250,589.42 19.59% 39.31%
display material
Equipment and
8,388,418,369.14 29.73% 7,239,942,351.91 41.91% 15.86%
Technology serves
Industrial application
181,389,128.68 0.64% 67,322,912.63 0.39% 169.43%
of graphene
New energy vehicle 4,257,501,557.67 15.09% 2,513,425,799.56 14.55% 69.39%
Construction
5,280,053,280.29 18.72% 1,896,347,858.88 10.98% 178.43%
Installation
Electronic
communication 3,629,930,835.74 12.87% 2,141,375,356.27 12.39% 69.51%
products
Other 1,758,411,508.00 6.23% 33,304,170.36 0.19% 5,179.85%
On Products
Optoelectronic
4,715,995,341.60 16.72% 3,385,250,589.42 19.59% 39.31%
display material
Equipment and
8,388,418,369.14 29.73% 7,239,942,351.91 41.91% 15.86%
Technology serves
Industrial application
181,389,128.68 0.64% 67,322,912.63 0.39% 169.43%
of graphene
New energy vehicle 4,257,501,557.67 15.09% 2,513,425,799.56 14.55% 69.39%
Construction
5,280,053,280.29 18.72% 1,896,347,858.88 10.98% 178.43%
Installation
Electronic
communication 3,629,930,835.74 12.87% 2,141,375,356.27 12.39% 69.51%
products
19
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Other 1,758,411,508.00 6.23% 33,304,170.36 0.19% 5,179.85%
Area
China 25,855,603,599.82 91.65% 16,240,515,360.46 94.00% 59.20%
Hongkong,Macauan
2,005,739,741.59 7.11% 1,007,002,901.40 5.83% 99.18%
d Taiwan
Overseas 350,356,679.71 1.24% 29,450,777.17 0.17% 1,089.63%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □ Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
On Industry
Optoelectronic
4,715,995,341.60 3,745,308,978.44 20.58% 39.31% 54.72% -7.91%
display material
Equipment and
Technology 8,388,418,369.14 6,644,128,423.07 20.79% 15.86% 24.07% -5.24%
serves
New energy
4,257,501,557.67 3,301,027,932.47 22.47% 69.39% 64.56% 2.27%
vehicle
Construction
5,280,053,280.29 4,774,880,498.47 9.57% 178.43% 173.49% 1.63%
Installation
Electronic
communication 3,629,930,835.74 3,542,442,721.95 2.41% 69.51% 69.52% -0.01%
products
On Products
Optoelectronic
4,715,995,341.60 3,745,308,978.44 20.58% 39.31% 54.72% -7.91%
display material
Equipment and 8,388,418,369.14 6,644,128,423.07 20.79% 15.86% 24.07% -5.24%
20
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology
serves
New energy
4,257,501,557.67 3,301,027,932.47 22.47% 69.39% 64.56% 2.27%
vehicle
Construction
5,280,053,280.29 4,774,880,498.47 9.57% 178.43% 173.49% 1.63%
Installation
Electronic
communication 3,629,930,835.74 3,542,442,721.95 2.41% 69.51% 69.52% -0.01%
products
Area
25,855,603,599.8 20,954,288,505.4 18.96% 59.20% 65.10% -2.89%
Chinese Mailand
2 7
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Product classification
In RMB
2018 2017
Proportion in the Proportion in the Increase/Decrease
Industry Items
Amount operating costs Amount operating costs (%)
(%) (%)
Optoelectronic
Operation costs 3,745,308,978.44 16.14% 2,420,764,896.51 17.70% 54.72%
display material
Equipment and
Technology Operation costs 6,644,128,423.07 28.63% 5,354,959,245.05 39.16% 24.07%
serves
Industrial
application of Operation costs 108,462,263.68 0.47% 27,298,093.82 0.20% 297.33%
graphene
New energy
Operation costs 3,301,027,932.47 14.23% 2,005,947,709.45 14.67% 64.56%
vehicle
Construction
Operation costs 4,774,880,498.47 20.58% 1,745,898,401.73 12.77% 173.49%
Installation
Electronic Operation costs 3,542,442,721.95 15.27% 2,089,646,020.25 15.28% 69.52%
21
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
communication
products
Other Operation costs 1,087,827,974.30 4.69% 29,973,279.43 0.22% 3,529.33%
Note
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√ Yes □ No
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
Income of Net Profit of
Acquire Acquire from
Ratio of Determination
Time-point of Method of from the the
Name of Obtained Cost of Obtained Purchasing Basis on the
Obtained Obtained Purchasing Purchasing
Acquirer Equity Equity Date Purchasing
Equity Equity Date to the Date to the
(100%) Date
End of the End of the
Period Period
Shenzhen May 30, 157,598,587.50 67.00% May 30, 7,659,108.35
Enterprise
Sanbao 2018 2018 -12,733,040.1
consolidation Acquisition of
Innovation 3
not under the control
Intelligence
same control
Co., Ltd.
Zhongcheng May 30, 140,000,000.00 70.00% Enterprise March 30,
National 2018 consolidation 2018 Acquisition of -7,172,706.59
construction not under the control
co., 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
(2) Consolidation Cost and Goodwill
In RMB
Consolidation Cost Shenzhen Zhongcheng National Huaxi Nanchong Automobile
Sanbao Innovation Intelligence construction co., Ltd. Co., Ltd.
Co., Ltd.
--Cash 157,598,587.50 39,999,996.00 44,800,000.00
--Other account payable 100,000,004.00 11,200,000.00
Total consolidation cost 157,598,587.50 140,000,000.00 56,000,000.00
22
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Less：Reduction: Obtained 88,710,182.00 6,730,432.38 83.60
Definable Net Assets Fair
Proportion
Amount of merging cost which 68,888,405.50 133,269,567.62 55,999,916.40
is less than the fair value
proportion of obtained net
identifiable asset
(3) The identifiable assets and liabilities of acquirer at purchase date
In RMB
Items Shenzhen Sanbao Innovation Intelligence Co., Ltd
Book value on purchase date Fair value on purchase date
Cash and bank balances 127,075,645.81 127,075,645.81
Account receivable 203,360.00 203,360.00
Inventories 26,320,943.47 18,724,138.92
Fixed assets 11,205,970.95 9,391,876.78
Intangible assets 53,241,307.46 53,849,371.07
Prepayments 318,723.00 318,723.00
Other account receivable 5,297.05 5,297.05
Other current assets 7,989,608.01 7,989,608.01
Deferred income tax asset 154,125.90 2,110.00
Deferred income tax Liabilities 2,352,724.68
Advance receipts 410,909.49 410,909.49
Employees’ wage payable 59,926.94 59,926.94
Tax payable 7,677.39 7,677.39
Other account payable 91,280,486.44 91,280,486.44
Net assets 132,403,256.71 125,801,130.38
Less：Minority interest 43,693,074.71 41,514,373.03
Acquire net assets 88,710,182.00 84,286,757.35
Continued
Items Zhongcheng National construction co., Ltd. Huaxi Nanchong Automobile
Co., Ltd.
Book value on Fair value on
Book value on purchase date Fair value on purchase date
purchase date purchase date
Cash and bank balances 1,854,947.92 1,854,947.92 83.60 83.60
Fixed assets 41,040.82 44,833.14
Intangible assets 14,204,413.89
Prepayments 284,956.45 284,956.45
23
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Other receivable 171,120.78 171,120.78
Other current assets 28,559.54 28,559.54
Deferred income tax asset 948.08
Account payable 4,200.00 4,200.00
Deferred income tax liability 3,551,103.47
Employees’ wage payable 1,261,899.22 1,261,899.22
Other payable 2,153,881.38 2,153,881.38
Net assets 9,614,903.41 -1,035,562.77 83.60 83.60
Less：Minority interest 2,884,471.03 -310,668.83
Acquire net assets 6,730,432.38 -724,893.94 83.60 83.60
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB10,000
income of the Net profit of the Income Net profit of the
combined party merged party of the merged party
Recognition from the from the merged during the
Combination basis of beginning of the beginning of the party comparison
Name Proportion Basis
date combination current period to current period to during period
date the date of the date of the
merger merger comparis
on period
Tunghsu 65.00% Parent June 30,2018 Pay the 27,289,664.99 -11,435,425.33 16,069,4 -13,043,965.22
(Yingkou) Company consideration 29.21
Optoelectroni and control
c the operation
Display Co.,
Ltd.
（2） Consolidation Cost
Tunghsu (Yingkou) Optoelectronic Display Co., Ltd
Consolidation Cost
-Cash 195,525,500.00
（3） The identifiable assets and liabilities of acquiree at purchase date
Items Tunghsu (Yingkou) Optoelectronic Display Co., Ltd
End of previous period
Merger date
Cash and bank balances 49,876,382.38 85,581,351.01
Notes receivable & account receivable 26,247,411.94 27,508,065.58
25,751,148.63 23,963,131.18
24
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Fixed assets 330,341,703.53 335,451,284.12
Intangible assets 24,988,633.63 25,314,850.99
Prepayments 498,425.88 858,504.05
Other receivable 32,000.00 2,000.00
Other current assets 75,603,084.09 74,056,644.01
Construction in process 586,201,554.22 570,609,032.67
Deferred Income tax assets 4,807,992.36 5,334,663.88
Other non-current assets 1,985,104.15 1,985,104.15
Notes payable & account payable 30,134,535.09 101,667,530.90
Advance Payments 11,593.50 9,537.00
Employees’ wage payable 296,037.13 249,318.39
Tax payable 1,840,851.65 280,315.37
Interest payable 1,075,377.78
Other payable 188,164,916.74 124,403,423.83
Non-current liabilities due 1 year 36,316,392.68 36,316,392.68
Long-term loans 420,000,000.00 425,000,000.00
Deferred Income 84,997,214.64 85,655,410.98
Other non-current liabilities 108,000,000.00 108,000,000.00
Net assets 256,571,899.38 268,007,324.71
3. Disposal of subsidiaries
Name Equity disposal 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
subsidiary
Xuyou 550million 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
25
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Continued
Name Proportion Book value of Fair value of Re-measure Method for Amount of other
of the remaining the remaining the gain or loss determining the comprehensive
remaining equity on the equity on the arising from fair value of the income related to
equity on date of loss of date of loss of the remaining remaining equity Atomic Company's
the date of control control equity at fair on the date of loss equity investment
loss of value of control and main transferred to
control assumptions 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
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of 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.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
million and the paid-up capital of RMB 2 million.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30
million and the paid-up capital of RMB 10,000.
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment
Co., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1000 million and the paid-up
capital of RMB10 million.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’s
Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of Main Customers
Total sales amount to top 5 customers (Yuan) 6,241,919,653.45
26
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Proportion of sales to top 5 customers in the annual
22.13%
sales(%)
Proportion of the sales volume to the top five customers
0.00%
in the total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount(RMB) Proportion(%)
1 Customer 1 2,009,430,965.39 7.12%
2 Customer 2 1,342,569,568.48 4.76%
3 Customer 3 1,079,622,920.16 3.83%
4 Customer 4 958,146,403.75 3.40%
5 Customer 5 852,149,795.67 3.02%
Total -- 6,241,919,653.45 22.13%
Other Notes :
□ Applicable √Not applicable
Principal suppliers
Total purchase of top 5 Suppliers（Yuan） 4,007,035,725.06
Percentage of total purchase of top 5 suppliers In total
19.11%
annual purchase(%)
Proportion of purchase amount from the top 5 suppliers in
the total purchase amount from the related parties in the 0.00%
year
Information about the top 5 suppliers
No Name Amount（Yuan） Proportion
1 Supplier 1 1,148,486,354.79 5.48%
2 Supplier 2 1,017,794,292.80 4.85%
3 Supplier 3 691,932,790.49 3.30%
4 Supplier 4 663,319,885.26 3.16%
5 Supplier 5 485,502,401.72 2.31%
Total -- 4,007,035,725.06 19.11%
Notes
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/D
2018 2017 Notes
ecrease(%
27
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
)
Sale expenses Mainly due to the increase in freight costs such
334,476,301.51 209,160,183.73 59.91%
as business growth.
Administration expenses The main reason for the increase in 2018
653,479,277.58 393,125,009.94 66.23% compared to 2017 is the increase in labor and
depreciation.
Financial expenses 722,695,173.66 753,977,500.45 -4.15%
Mainly due to business growth and R&D
R & D expenses 572,089,634.30 256,991,555.91 122.61%
investment
4. Research and Development
√ Applicable □ Not applicable
In 2018, through business combination involving enterprises under common control, Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. was acquired, hence a retroactive adjustment was made to 2017 data related to
R&D spending, wherein the R&D spending on high-end manufacturing increased on account of the Company's
M&A of Shenzhen Sanbao Innovation Intelligence Co., Ltd, in June 2018.
Situation of Research and Development Input by the Company
2018 2017 Increase/Decrease(%)
Number of Research and
1,735 1,397 24.19%
Development persons (persons)
Proportion of Research and
21.98% 17.61% 4.37%
Development persons
Amount of Research and
Development Investment 596,044,201.02 385,731,049.90 54.52%
( Yuan)
Proportion of Research and
Development Investment of 2.11% 2.23% -0.12%
Operation Revenue
Amount of Research and
Development Investment 21,724,530.97 15,397,704.97 41.09%
Capitalization ( Yuan)
Proportion of Capitalization
Research and Development
3.64% 3.99% -0.35%
Investment of Research and
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
28
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2018 2017 Increase/Decrease(%)
Subtotal of cash inflow received
25,914,974,422.73 18,081,214,780.67 43.33%
from operation activities
Subtotal of cash outflow received
25,526,722,418.21 16,828,036,269.36 51.69%
from operation activities
Net cash flow arising from
388,252,004.52 1,253,178,511.31 -69.02%
operating activities
Subtotal of cash inflow received
4,760,814,599.23 10,891,847,680.49 -56.29%
from investing activities
Subtotal of cash outflow for
11,405,238,586.80 16,644,954,442.07 -31.48%
investment activities
Net cash flow arising from
-6,644,423,987.57 -5,753,106,761.58 -15.49%
investment activities
Subtotal cash inflow received
10,927,058,792.58 16,584,610,295.08 -34.11%
from financing activities
Subtotal cash outflow for
14,874,380,555.60 12,487,573,196.50 19.11%
financing activities
Net cash flow arising from
-3,947,321,763.02 4,097,037,098.58 -196.35%
financing activities
Net increase in cash and cash
-10,198,023,465.21 -423,591,772.55 -2,307.51%
equivalents
Notes to the year-on-year change of the relevant data
□ Applicable√ Not applicable
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□ Applicable√ Not applicable
III.Analysis of Non-core Business
√ Applicable □ Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Mainly due to the investment
Investment gains 80,925,191.79 2.96% Sustainable
income of the joint venture
Fair value change
0.00%
gains and losses
29
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Accounts receivable and
Asset impairment 93,480,733.09 3.41%
impairment of inventories
Non-operating
19,063,270.76 0.70% Occasional income Not sustainable
incme
Non-operating
8,892,705.00 0.32% Sporadic expenditure Not sustainable
expenses
Other incme 251,303,953.08 9.18% Government subsidy Partially unsustainable
III. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2018 End of 2017 Proportion
Notes to the significant
Proportion in the Proportion in the increase/d
Amount Amount change
total assets(%) total assets(%) ecrease
Cash and bank
19,807,094,397.16 27.29% 27,456,759,768.86 40.02% -12.73% none
balances
Accounts none
14,352,781,895.39 19.78% 7,873,419,684.42 11.48% 8.30%
receivable
Inventories 3,510,786,666.85 4.84% 4,909,570,356.36 7.16% -2.32% none
Real estate none
686,993,881.02 0.95% 58,229,439.86 0.08% 0.87%
Investment
Long-term equity none
2,174,347,969.22 3.00% 2,130,640,158.90 3.11% -0.11%
investment
Fixed assets 9,634,463,323.77 13.27% 11,379,727,456.13 16.59% -3.32% none
Construction in none
5,013,941,980.61 6.91% 3,667,972,406.42 5.35% 1.56%
process
Short-term loans 8,361,106,651.33 11.52% 5,712,826,382.20 8.33% 3.19% none
Long-term loans 2,741,589,600.00 3.78% 5,209,726,250.77 7.59% -3.81% none
5,215,414,219.51 7.19% 2,021,119,950.95 2.95% 4.24% Expand sales and
Advance payment production, increase
material and inventory.
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
The restricted assets till the end of the report period are set out as follows:
1. Restricted monetary funds amounted to RMB 4,890,457,106.12;
2. The book value of fixed assets arranged with a mortgage or incurred by financial leasing was RMB
9,130,840,228.68 till the end of the report period;
30
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
3. Intangible assets arranged with a mortgage amounted to RMB 352,121,698.93;
4. Construction-in-progress arranged with a mortgage amounted to RMB 3,143,663,638.12;
5. Investment real estate as collateral amounted to RMB 678,833,230.08;
6. Account receivable as collateral amounted to RMB 455,136,717.34;
7.Inventory as collateral amounted to RMB317,769,074.78.
IV. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2018(Yuan) Investment Amount in 2017(Yuan) Change rate
6,950,053,928.88 9,606,133,252.12 -27.65%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Name Gain or
Progres Whethe
of the Investm Investm Less or Date of
Main Investm Share s up to r to Disclos
Compa ent Capital ent Product Anticip the Disclos
Busines ent Proport Partner Balance Involve ure
ny Amoun Source Horizo Type ated Current ure(Not
s Way ion % Sheet in Index
Investe t n Income Investm e 5)
Date Lawsuit
d ent
Lin
Lude,
Zhuang
Yongju
n,
Shenzh
Shenzh
en
High-e en High-e
Sanbao
nd Sanbao nd http://w
Innovat 157,75 May
intellig Purchas Innovat Long-te intellig Comple 7,500,0 -8,754, ww.cni
ion 0,000.0 67.00% Self No 29,201
ent e ion and rm ent ted 00.00 472.52 nfo.co
Intellig 0 8
equipm Technol equipm m.cn
ence
ent ogy ent
Co.,
Partner
Ltd.
ship
(Limite
d
Partner
ship)
Tunghs Glass Purchas 195,52 Yingko Long-te Glass Comple 259,10 June http://w
65.00% Self 0.00 No
u subst e 5,500.0 u rm substrat ted 1.72 13,201 ww.cni
31
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
（Ying rates 0 Coastal es 8 nfo.co
kou） Develo m.cn
Optoele pment
ctronic and
Display Constru
Co., ction
Ltd. Group
Co.,
Ltd.,
Minmet
als
(Yingk
ou)
Industri
al Park
Develo
pment
Co.,
Ltd.
Shangh
ai http://w
New Increas 2,100,0 New 400,00 433,30 March
Sunlon 100.00 Rised Long-te Comple ww.cni
energy e 00,000. No energy 0,000.0 5,590.2 No 27,201
g Bus % funds rm ted nfo.co
bus capital 00 bus 0 6 8
Co., m.cn
Ltd.
Sichua
n
Xuhon
g http://w
Glass Increas 800,00 Glass March
Optoele 100.00 Rised Long-te Comple 98,000, 116,172 ww.cni
cover e 0,000.0 No cover No 27,201
ctronic % funds rm ted 000.00 ,589.38 nfo.co
plate capital 0 plate 8
Technol m.cn
ogy
Co.,
Ltd
Tunghs Kunsha
u n
Kunsha Develo http://w
Glass Increas 200,00 Glass Decem
n Rised pment Long-te Comple -25,748 ww.cni
substrat e 0,000.0 90.86% substrat 0.00 No ber
Display funds Zone rm ted ,415.55 nfo.co
e capital 0 e 8,2018
Materia Guotou m.cn
ls Co., Holdin
Ltd. gs Co.,
32
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.
3,453,2 505,50 515,23
Total -- -- 75,500. -- -- -- -- -- -- 0,000.0 4,393.2 -- -- --
00 0 9
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
Nil
5.Application of the raised capital
√ Applicable □ Not applicable
（1）General application of the raised funds
√ Applicable □ Not applicable
In 10,000 yuan
Amount of Total
Accumulat Proportion
raised Amount of Amount of
ive amount of raised Use and
Total capital of the the Raised
Total of raised capital of Whereabo
Total Amount of which the Unused Fund with
Year of Way of amount of capital of which the uts of the
raised the Raised purpose Raised over 2
Raising Raising Raised which the purpose Unused
capital Fund Used was Fund at Years’
Funds purpose has been Raised
at the changed in the Idling
has been changed Fund
the report Current
changed (%)
period Period
Directiona
l Not
2013 503,880 25,257.77 496,727.3 0 0 0.00% 14.79 0
add-issuan applicable
ce
Directiona
l Continue
2015 800,000 55,061.01 589,306.36 0 0 0.00% 210,693.64 0
add-issuan to invest
ce
Corporate
2015 100,000 0 100,000 0 0 0.00% - 0
bond
Directiona
Continue
2016 l 695,000 153,260.89 201,682.88 0 0 0.00% 493,317.12 0
to invest
add-issuan
33
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
ce
Directiona
l Continue
2017 375,000 222,240.77 266,440.79 19,200 19,200 0.78% 108,559.21 0
add-issuan to invest
ce
1,654,157.
Total -- 2,473,880 455,820.44 19,200 19,200 0.78% 812,584.76 -- 0
33
Corporate bonds
In 2018,The company strictly accordance with "use of funds raised management system" and "raise funds tripartite regulatory
agreement" to raise funds and special accounts storage use, and timely, truely, accurately and completely disclosure of the deposit
and use of proceeds, there is no violation circumstances.
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In 10,000 yuan
Date
Accumul Investme
Total when the
ated nt Has any
Project raised Total Amount project Benefit
amount progress Has the material
changed(i capital investme infested has realized
Committed investment invested ended the predicted change
ncluding invested nt after in the reached in the
projects and investment at the end reporting result be taken
partial as adjustme reporting the reporting
of the period(% realized place in
change) committe nt (1) period predicted period
reporting )(3)=(2)( feasibility
d applicabl
period(2) 1)
e status
Committed investment projects
Wuhu Optoelectronic
Not
Panel display glass Decembe
No 496,106.4 496,106.4 25,257.77 496,727.3 100.13% 2,312.98 applicabl No
substrate Production r 31,2019
e
line project
Project of Production
Not
Line for the Decembe
No 300,000 300,000 55,061 92,769 30.92% applicabl No
5th-Generation CF for r 31,2019
e
TFT-LCD
Acquisition for 100%
Decembe
share rights of Xufei No 177,000 177,000 0 177,000 100.00% Yes No
r 31,2015
Optoelectronic
Acquisition for 100%
Decembe
share rights of Xuxin No 198,000 198,000 0 198,000 100.00% Yes No
r 31,2015
Optoelectronic
To supplement the No 125,000 125,000 0 121,537 97.23% Not No
34
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
circulating fund applicabl
e
To supplement the Not
circulating fund No 100,000 100,000 0 100,000 100.00% applicabl No
（Corporate bonds） e
Project of Production
Not
Line for the Decembe
No 695,000 695,000 153,261 201,683 29.02% applicabl No
8.5th-Generation CF r 31,2019
e
for TFT-LCD
New energy bus and Not
Decembe
logistics vehicle No 220,000 220,000 141,132 141,132 64.15% applicabl No
r 31,2019
production project e
Production of cover Not
Decembe
glass for curved No 110,000 90,800 64,138 64,138 70.64% applicabl No
r 31,2019
display e
High aluminum silicon
Not
cover glass sheet Decembe
Yes 0 19,200 16,170 16,170 84.22% applicabl No
production line r 31,2019
e
upgrade project
Payment for
procurement of
No 40,000 40,000 0 40,000 100.00% 0 Yes No
Sunlong's equity
consideration
Payment transaction Not
fees and intermediary No 5,000 5,000 800 5,000 100.00% applicabl No
agency fees e
Subtotal of Committed 2,466,106 2,466,106 455,819.7 1,654,156
-- -- -- 2,312.98 -- --
investment projects .4 .4 7 .3
Investment of excessive raised capital
No No
2,466,106 2,466,106 455,819.7 1,654,156
Total -- -- -- 2,312.98 -- --
.4 .4 7 .3
Reason or situation that
not on schedule (on Not applicable
specific project)
Notes to major changes
Not applicable
in project feasibility
Amount, application Not applicable
and application
progress of the
35
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
uncooked proceeds
About the change of Not applicable
the implementation site
of the projects invested
with the proceeds
Applicable
Occurred in previous years
The Company convened the 10th meeting of 8th Board of Directors on March 15, 2017.
Pursuant to the Company's 2016 Non-public Issuance Plan of A-shares, the project funded by this
non-public share issuance was the “project of building the 8.5th generation TFT-LCD glass substrate”, with
the company’s holding subsidiary-Fuzhou Tughsu Optoelectronic Technology Co., Ltd (hereinafter
Adjustment of the
referred to as "Fuzhou Tunghsu") as the main implementation body. According to the company's business
implementation way of
development needs, it’s planned to add Fuzhou Xufu Optoelectronic Technology Co., Ltd (hereinafter
investment funded by
referred to as "Fuzhou Xufu")-a holding subsidiary to Fuzhou Tunghsu into the main body of
raised capital
implementation of the project. Each TFT-LCD glass substrate production line is consisted by one
pre-process production line and one post-processing production line. Fuzhou Xufu undertakes the
investment and construction work of two 8.5-generation post-processing production lines in the project
funded by the non-public share issuance, with the total amount involved is RMB 823.06 million, which
accounts for 11.83% of the total funds raised. The total investment, the input amount of funds raised, and
the construction total funds raised. The total investment, the input amount of funds raised, and the
construction content of the above-said project remains unchanged.
Applicable
(1) On April 17, 2013，The 36th Meeting of the sixth Board of Directors of the Company has examined
andapproved the “Proposal on the Replacement of the Self-funancing Funds pre-put into Investment
Project with the RAISED Funds”, and agreed the company to make arrangement for the funds-raising on
the replacement of the pre-investment based on the plan of non-public issuance of stocks, with the
pre-invested self-financing funds of RMB 2077.4263 million replaced by the raised funds. The company’s
independent directors, board of supervisors and the sponsor institution-Guangzhou securities issued the
clear statement of consent. A special audit report- No.5002-Zhongxin Cai Guan Hua specially Certified
(2013) pertain to the item of replacing the funds pre-invested in the project which should be invested by
Investment projects the funds raised was issued by Zhongxincai Guanhua Certified Public Accountants (LLP).
initial investment and 2)On December 29, 2015, the 46th meeting of the 7th board of directors and the 18th meeting of the 7th
replacement board of supervisors of the Company examined and adopted “Proposal on Using the Raised Fund to
Replace the Self-raised Fund of the Advanced Invested Item to Raise Money for and Invest ”, The
company replaced the self-raising funds in amount of RMB 107.0842 million with the funds raised by the
non-public issuing pertain to the relevant projects, which had been audited and certified by by Zhongxincai
Guanhua Certified Public Accountants (special general partnership) with the report of No.5037
Zhongxincai Guanhua specially Certified (2015) provided.
(3) On January 25, 2017, the 9th meeting of the 8th board of directors of the Company examined and
adopted “Proposal on Using the Raised Fund to Replace the Self-raised Fund of the Advanced Invested
Item to Raise Money for and Invest ”, The company replaced the self-raising funds in amount of RMB
110.7478 million with the funds raised by the non-public issuing pertain to the relevant projects, which had
36
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
been audited and certified by by Zhongxincai Guanhua Certified Public Accountants (special general
partnership) with the report of No.105001 Zhongxincai Guanhua specially Certified (2017) provided.
(4) In the 28th interim meeting of 8th Board of Directors held on January 10, 2018 of the Company, the
Proposal on the Use of Raised Funds to Replace the Self-raised Funds of the Investment Project
Pre-invested Raised Funds was reviewed and passed, and the Company used raised funds amounted to
RMB 23.5088 million to replace the self-raised funds of the investment project pre-invested raised funds,
including to replace the total self-raised funds RMB 6.6968 million of the investment project pre-invested
in new energy buses, to replace the total self-raised funds RMB 881.08 million of the investment project
pre-invested in curved glass and to replace the self-raised funds RMB 8 million for the payment of
transaction fees and intermediary agency fees in advance. which had been audited and certified by by
Zhongxincai Guanhua Certified Public Accountants (special general partnership) with the report of
No.105001 Zhongxincai Guanhua specially Certified (2018) provided.
Applicable
（1）On December 7, 2017, the Company convened the 24th meeting of No. 8 Board of Directors to review
and decide that within 12 months from the date of passing the decision by the Board of Directors, it agreed
that the Company can use RMB 300,000 million idle raised funds to temporarily supplement the
Company's working capital. And would be used to supplement the company working capital temporarily
for not less than 12 months from the approval date by Board of Directors, upon which, such amount would
be refunded to the special account for the raising fund,
it agreed the Company can use maximum RMB 3 ,000 million (including the principal) idle raised funds
from the raised funds RMB 6950 million of “the 8.5th Generation TFT-LCD Glass Substrate Production
Line Project” to invest in principal-guaranteed products with good liquidity, low risk and fixed income,.
The products invested include principal-guaranteed financial products, seven-day notice deposits and
one-day notice deposits, etc., using in roll within the above-mentioned capital limit; it agreed that the
Using the idle proceeds Company can use RMB 300,000 million idle raised funds to temporarily supplement the Company's
to supplement the working capital. And would be used to supplement the company working capital temporarily for not less
working capital on than 12 months from the approval date by Board of Directors, upon which, such amount would be
temporary basis refunded to the special account for the raising fund, The board of supervisors, independent directors and
sponsor organizations have agreed on this matter. The board of supervisors, independent directors and
sponsor organizations have agreed on this matter.。The preceding raised funds were returned and deposited
into the Company's special account for raised funds in full amount on December 6, 2018 (refer to the
Announcement on Due Return of Some Idle Raised Funds to Supplement Working Capital published by
the Company at Cninf on December 7, 2018). (2) On December 7, 2018, the Company's eighth board of
directors convened the fifty-first meeting to deliberate and adopt a Proposal on Provisional Use of Some
Idle Raised Funds for Supplementing Working Capital. On the ground that raised funds met the financial
demand for project construction, the Company planned to use idle raised funds in the amount of RMB 3.5
billion to supplement the working capital for the moment and return the funds duly in the event of any
investment project demand for raised funds, wherein the period of use of such funds did not exceed 12
months after being deliberated and adopted by the board of directors and such funds would be returned to
the special account for raised funds upon the expiry of the use. Independent directors and board of
supervisors approved this proposal. The Company's sponsor Guangzhou Securities Co., Ltd. inspected and
approved this proposal.
37
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
The amount and Not applicable
reasons of the fund
surplus in the project
implementation
About application and
status of the proceeds Used for the construction of the project
unused
Problems existing in
application of the
proceeds and the Not applicable
information disclosure
or other issues
（3）The changed project of raised proceeds
√ Applicable □Not applicable
In RMB10,000
Project
Accumulati feasibility
Total raised Investment Predicted
Amount ve funds Reach the was
Correspondi funds plans program till serviceable Profit
Project after actually actually predicted changed
ng original to invested the condition realized in
changed invested in invested interest or hugely or
project after period-end( date of this year
the period ended as the not (Y/N) not after
changed (1) 3)=(2)/(1) project
period(2) project
changed
High
aluminum Sheet glass
silicon production
cover glass project for December Not
19,200 16,170.4 16,170.4 84.22% 0 No
sheet curved 31,2019 applicable
production surface
line upgrade display
project
Total -- 19,200 16,170.4 16,170.4 -- -- 0 -- --
The Company convened the thirty-ninth extraordinary meeting of the eighth board of
Explanation on reasons of the changes, directors, the twenty-third extraordinary meeting of the eighth board of supervisors and the
decision-making procedures and 2018 fourth extraordinary general meeting of shareholders on June 12, 2018 and June 28,
information disclosure (explain by 2018 respectively, deliberating and adopting a Proposal on Alteration of Purpose of Some
specific project) Raised Funds. While implementing the "project of production of cover glass for cambered
display", the Company fulfilled the set efficiency in a variety of cost-efficient ways such as
former plant reconstruction and independent development and upgrading of some
38
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
equipment and concluded that the entire project as completed can save some raised funds
through a prudent demonstration and estimation. Therefore, the Company determined to use
raised funds in the amount of RMB 192 million for the "project of production of cover glass
for cambered display" to "upgrade and retrofit high aluminum-silicone alloy cover glass
original production line" to promote its product quality and processing yield and reinforce
its economic benefit.
Particular and reasons of fail to
reached the target advance or
Nil
anticipated income (explain by
specific project)
Explanation on major changes on
project feasibility after project Nol
changed
VI. Sales of major assets and equity
1. 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
Net Proporti
Whether
profits on on of
execute
contribu the net
as
ted by profits Whether
schedul
the of the the
ed and
equities contribu involve
Influenc if failed,
Transact to the ted Pricing Whether Relation d
e of the should
ion listed amount principl was the ship equities Disclos
Counter Sold Sold selling state the Disclos
price(R compani of the es of the related with the all ure
party equities date of the reasons ure date
MB es from equities equities transacti center complet Index
Compan and the
10,000) the selling selling on party e ed the
y adopted
period-b to the ownersh
measure
egin to listed ip
ments of
the sold compani transfer
the
date es to the
compan
(RMB total
y
10,000) amo9un
39
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
t of the
net
profits
Xuyou
Electron
Tunghsu ic
Based
Techno Material Same http://w
on
logy s April -1,487.5 parent April ww.cnin
55,000 No -0.55% audited Yes Yes Yes
Group Technol 28,2018 7 compan 14,2018 fo.com.
net
Co., ogy y cn
assets
Ltd. (Wuxi)
Co.,
Ltd.
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 Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Wuhu
Tunghsu
Equipment
Optoelectroni
and 1,000,000,00 13,755,386, 2,935,961,08 3,601,268,01 1,152,126,38 993,962,972.
c Subsidiary
technology 0.00 995.54 2.24 4.77 0.88 35
Equipment
Service
Technology
Co.,Ltd.
Tunghsu
Construction Construction 3,000,000,00 6,259,440,55 3,515,093,81 5,482,287,40 328,684,486. 271,566,512.
Subsidiary
Group Co., 、Installation 0.00 0.97 7.83 3.41 40 31
Ltd.
Beijing
Building and
Xufeng Real 870,000,000. 1,838,373,07 755,833,828. 1,084,330,38 378,362,128. 283,758,478.
Subsidiary construction
estate Co., 00 7.62 16 4.90 50 29
Industry
Ltd.
Zhengzhou
Xufei
Optoelectron
Optoelectro 1,650,000,00 4,802,479,82 2,174,401,24 1,385,295,10 106,711,140. 88,567,927.5
Subsidiary ic Display
nic 0.00 9.41 2.30 5.07 46 9
material
Technology
Co., Ltd.
40
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shijiazhuang
Xuxin
Optoelectro Glass 1,906,000,00 3,309,605,17 2,181,522,44 368,078,577. 37,096,592.7 38,845,710.7
Subsidiary
nic substrate 0.00 5.07 8.03 55 1 5
Technology
Co., Ltd.
Fuzhou
Tunghsu
Glass 2,000,000,00 4,137,331,48 2,970,732,14 1,366,699,35 66,407,612.9 49,196,247.9
Optoelectroni Subsidiary
substrate 0.00 3.74 9.39 7.80 7 9
c Technology
Co., Ltd.
Shanghai
New Energy 3,200,000,00 11,319,107,9 4,011,771,16 4,630,605,18 493,809,850. 433,305,590.
Sunlong Bus Subsidiary
Bus 0.00 34.84 5.58 5.61 43 26
Co., Ltd.
Sichuan
Xuhong Optoelectron
1,900,000,00 3,841,237,02 2,138,823,07 543,995,845. 125,562,733. 116,172,589.
Optoelectroni Subsidiary ic Display
0.00 5.65 2.41 38 68 38
c Technology material
Co., Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Name Mode Influence
Shenzhen Sanbao Innovation Intelligence
M&A Business expansion
Co., Ltd.
Tunghsu（Yingkou）Optoelectronic Display
M&A Business expansion
Co., Ltd.
Xuyou Electronic Materials Technology Based on overall strategic layout planning
Disposition
(Wuxi) Co., Ltd. considerations
Anhui Xuan Optoelectronic Technology
New establishment Business expansion
Co., Ltd.
Tunghsu Optoelectronic EU.C.V New establishment Business expansion
Note
VIII.Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
IProspect for future development of the Company
I. The Development Trend of the Industry
In optoelectronic display, a rising demand for the size of liquid crystal display screens in the liquid crystal
41
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
panel industry drove the size of glass substrate liquid crystal display screens in 2018. Studies show that if display
screens are enlarged by 1.5 inches in average, capacity of a G8.5 liquid crystal panel production line will be
absorbed. The Company's glass substrate production can match the demand for liquid crystal panels, leading a
steady growth in the performance of glass substrate business. In 2019, it is expected that supply of G8.5 liquid
crystal panels and ones with a larger size will predominate and remain major products needed on the consumer
market. IHS Markit predicts that the world's panel display area demand will rise about 6.4% to 228 million m2 in
2019, laying a solid foundation for the Company's development of business of optoelectronic display materials
kerneled by glass substrates.
In new energy bus, the new energy automobile subsidy has plummeted and industrial pattern has been altered
in the wake of variation of the general trend. Nonetheless, driven by market under the policy instruction, Sunlong
Bus--a typical bus company--has emerged and boomed to build a new pattern by its own comprehensive strength
in the bus industry. In 2019, the new energy subsidy policy will heavily tighten by about 50% in average
compared with it was in 2018. Affected by the current scale benefit and provisions pertaining to tightened subsidy
policy in new energy automobile, the fittest will survive while the inferior will be eliminated in the industry.
Besides, low cost, high technology and intelligence remain strengths of new energy automobile in future
development, hence it will continue to play a major role in the automotive market.
Ⅱ. Development strategy of the company
In the context, the Company will take the strategic objective of "China's biggest optoelectronic display
materials manufacturer and integrated intelligent manufacturing service provider" as its own responsibility,
concentrate on China's display market, increase spending in science and technology, and take the lead in technical
innovation to stabilize its business of optoelectronic display materials kerneled by liquid crystal glass substrate
while further extending and developing its businesses of high-end intelligent manufacturing, new energy
automobile and intelligent graphene application.
The Company will continue to push forward G8.5 production construction, enhance production quality and
expand coverage of production process based on the market demand to lay a solid foundation for its major
business of glass substrate. Besides, in compliance with the OLED flexible display screen trend, the Company
will optimize and upgrade techniques in high-aluminum cover glass, cambered glass and sapphire among other
businesses, speed up technical innovation, and promote its core competitive edge to further increase the economic
benefit in the OLED flexible display area.
In 2019, on the ground of independent innovation, the Company will continue to enhance its R&D and
manufacturing abilities, give a play to industrial collaboration, and cover the entire intelligent manufacturing
industry chain. To be specific, the Company will make ongoing effort to build a closed loop of industry chain of
"high-end materials-graphene-based lithium ion battery-new energy automobile" and transfer original scientific
research results to capacity to contribute to its profit.
Ⅲ. Business plan in 2019
In 2019, oriented in industrial integration and aimed at geometric growth of net profit, the Company will
continue to carry forward such major efforts as "market development, cost reduction and benefit increase", mainly
involving the following work:
1. The Company will improve its G8.5 liquid crystal glass substrate production line construction and
effectively promote the yield of jumbo-sized liquid crystal substrates to lower the production cost and increase its
economic benefit. Mainly by implementing the Fuzhou Xufu G8.5 Production Line Project and targeting at major
national customers, the Company will quickly occupy the market to promote the productivity.
2. The Company will continue to work on the high-end equipment business, wherein it will give a full play to
strengths of its peripheral business, increase business channels of optoelectronic display materials and equipment,
42
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
semiconductor equipment and other universal equipment supplied to domestic high-end customers step by step,
and diversify the business development layout to guarantee a steady growth of its high-end equipment business.
3. The Company will continue to improve its new energy automobile industry layout, push forward
construction of the three new energy automobile industry bases at Nanning, Mianyang and Suqian, build a "new
energy bus Sci-tech industry park" integrating R&D, innovation, manufacturing, promotion and publicity and
speed up completion and commissioning to ensure its sufficient capacity. In addition, the Company will comply
with China's "Belt & Road" thought of development, increase international marketing channels and spending in
sales, and put into practice the green value philosophy of Sunlong Bus and the state-of-the-art new energy
techniques.
4. The Company will promote technical R&D in the graphene battery and graphene-related sectors and
combine the strength of international R&D teams to facilitate incubation of graphene-related sectors. Meanwhile,
the Company will further improve and implement graphene investment projects and actively push forward such
projects to seize a favorable place in the graphene industry and occupy market share.
5. Confronted with a huge market demand for OLED, the Company will on one hand, take the initiative to
quickly advance all the work in cambered cover glass, color filter and sapphire production projects. On the other
hand, the Company will develop its industry chain upgrading system, prepared in terms of technology and R&D
for meeting the market demand for flexible display screens.
6. By its brand strength, the Company will strengthen comprehensive market development ability of each
business and promote the core competitiveness of its main businesses with effort to guarantee a steady growth in
its income and profit.
Ⅳ. Possible risks
1. Risk of macroeconomic cyclical fluctuations
The 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 is affected by the macroeconomic fluctuations, then if the panel price fluctuates sharply due to the
deterioration of the macroeconomic environment or the imbalance between the supply and the demand, the
company may face the risk of industry downturn.
2. Risk of uncertainty in expected benefits of liquid crystal glass substrate project
As the company's glass substrate production line projects have the features of large investment amount and
long construction period, then if there is a future risk occurred in the glass substrate industry and the company's
glass substrate production line construction projects can not fully achieve the mass production on schedule, the
sales revenue and the profits of glass substrates will probably be less than expected.
Affected by size of product buying demand, bargaining ability, and demand characteristics of consumers and
downstream sectors in the glass substrate industry, product sales, needs, price variation, technical R&D situation,
and variation of major marketing channels in the glass substrate industry, there is still an uncertainty in whether
the Company can continue to increase its market share and develop quality customers, indicating an impact on its
business performance.
3. Risk of technological upgrading alternatives
The company never stops the technical research and development and technology reserves, and has made
breakthroughs in many areas. However, if the downstream panel display industry undergoes major technological
changes and the company fails to achieve timely corresponding technological innovation, then the company will
face certain risks when the technological upgrading alternatives hit the market.
4. The risk caused by the continued fade-out of subsidy policies for new energy vehicles
43
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
China is decreasing its new energy automobile subsidy standard, which will bring a certain impact on new
energy automobile product sales of Sunlong Bus in the future. If the new energy automobile subsidy policy is
tightened or any major adverse change happens to relevant industrial policies, it will cause an unexpected risk to
business development of Sunlong Bus in the future.
X.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
Hebei Securities Regulatory Bureau
May 15,2018 Other Individual
Online Reception Day
January 1,2018 By Phone Individual Company telephone records
Reception times 1,958
Reception agency amount 35
Reception personal number 1,932
Number of other objects received 0
Whether to disclose, reveal or disclose non-public
No
material information
44
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√ Applicable □ Not applicable
In the report period, the common stock dividend distribution program of Tunghsu Optoelectronic was proposed by
the board of directors and approved by the general meeting of shareholders for implementation. Subject to the
Company's profitability, funding condition and future development demand among other factors, the cash
dividend distribution program was worked out and approved at the general meeting of shareholders before being
disclosed and implemented as planned.
Special cash dividend policy description
Whether meets the requirements of the provisions of the articles
Yes
of association or shareholders' meeting resolutions:
Whether dividends standard and proportion are clear Yes
Whether decision making and supervision mechanism for profit
Yes
distribution are completed
Whether independent directors perform their duties responsibly
Yes
and play its due role:
Whether the Minority shareholders have adequate opportunity to
express their views and aspirations and Their legitimate rights Yes
and interests have been fully protected
Whether the Cash dividend policy to adjust or change the
Yes
conditions and procedures are compliant and transparent
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
1.In 2016,the company total share of 4,939,928,983 shares on December 31,2016 for base on the Company’s total
share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) , and no reserve would be converted into share capital.
2.In 2017,the company total share of 5,730,250,118 shares on December 31,2017 for base on the Company’s total
share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) , and no reserve would be converted into share capital.
3.In 2018,the company total share of 5,730,250,118 shares on December 31,2018 for base on the Company’s total
share capital, the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.70 For
every 10 shares(including tax) , and no reserve would be converted into share capital.
Dividend distribution of the latest three years
In RMB
45
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ratio of the
Ratio of the
total cash
cash bonus
bonus (other
Ratio of the by other
ways
Net profit cash bonus in ways in net
included) in
attributable to net profit profit
Proportion for net profit
common stock attributable to attributable Total cash
Amount for cash cash bonus by attributable
Year for shareholders of common stock to common bonus(other
bonus(tax other ways(i.e. to common
bonus shares listed company shareholders of stock ways
included) share stock
in consolidation listed company shareholders included)
buy-backs) shareholders
statement for contained in of listed
of listed
bonus year consolidation company
company
statement contained in
contained in
consolidation
consolidation
statement
statement
2018 401,117,508.26 2,163,607,505.39 18.54% 0.00 0.00% 401,117,508.26 18.54%
2017 401,117,508.26 1,730,174,564.57 23.18% 0.00 0.00% 401,117,508.26 23.18%
2016 345,795,028.81 1,301,466,332.10 26.57% 0.00 0.00% 345,795,028.81 26.57%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share(share) 0
Dividends for every 10-share(RMB)(Tax included) 0.70
Equity base of distribution plan(share) 5,730,250,118
Cas bonus distribution(RMB)(Tax included) 401,117,508.26
Cash bonus distrubution n other way(i.e.share
0.00
buy-backs)(RMB)
Total cash bonus(including other ways((RMB) 401,117,508.26
Distributable profits(RMB) 467,252,231.11
Ratio of total cash dividend (Other ways included)
100%
in total profit distribution
Cash dividend distribution policy
When the development stage of the company is a growth period and there is a significant capital expenditure arrangement, that in
the profit distribution, cash dividend shall not be less than 80% in proportion.
Explanation on profit distribution or capitalizing of capital reserves
The Company formulated the 2018-2020 plan of return to shareholders as follows: 1. methods of profit distribution including cash,
stock, cash & stock combination, or other methods allowed by laws and regulations are set out, wherein a priority is given to the
46
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
method of profit distribution by cash dividend. 2. Provided that conditions for cash dividend distribution are met, if the Company's
operating income and net profit increase rapidly and the board of directors considers the Company's equity scale and structure to be
reasonable, a plan for stock dividend distribution may be proposed and implemented given no impact on the plan for cash dividend
distribution. 3. On the ground that conditions provided by the Company in the articles of association regarding distribution of cash
dividend and full withdrawal of surplus accumulation fund are met, the Company makes a profit distribution in every accounting
year in principle; if necessary, the Company may make an interim cash dividend distribution subject to the profitability and funding
demand. Given sufficient funds, no spending in major technical improvement plans or other investment plans, and satisfaction of
the Company's fund demand for regular production and operation, the Company's cumulative profit distributed by cash in the
following three years will be no less than 30% of the annual average distributive profit incurred in the corresponding period. 4. The
Company's management and board of directors will abide by relevant laws, regulations and Articles of Association and formulate
and submit a 2019 dividend distribution plan to the general meeting of shareholders for approval, according to which, based on the
total stock of 5,730,250,118 shares on December 31, 2018, the Company will distribute a cash dividend of RMB 0.7 (tax-inclusive)
per 10 shares to all the shareholders by undistributed profit and will not increase the stock by transfer of accumulation fund.
I. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior
management personnel and other related parities.
√ Applicable □ Not applicable
Time of Period of
Commitment Fulfil
Commitment Type Contents making commitme
maker lment
commitment nt
If listed companies plans to sell tradable
stocks through the bid trading system of
Shenzhen Stock Exchange and sell greater
Shijiazhuang Share than 5% of shares within six months after the Unde
Commitment on share Baoshi reduction first sales, will disclose the contents specified March Long-term r
reform Electronics commitme by the Form Guide to Prompt Announcement 29,2007 effective Fulfil
Group Co., Ltd nt of Removing Restriction on Sales of lment
Non-tradable Stocks of Listed Companies
through the prompt announcement of
disclosing sales of listed companies.
Commitment in the
acquisition report or
the report on equity
changes
Commitm 1. As of the date of this statement and
ents on commitment, except for trustee company, the
Unde
Commitment made Tunghsu horizontal company/individual and/or other companies
March Long-term r
upon the assets Group,Li competitio that are directly or indirectly controlled by the
20,2017 effective Fulfil
replacement Zhaoting n, related company/individual shall not compete with
lment
transaction Tunghsu Optoelectronic. 2. During the period
and capital when the company/individual acts as the
47
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
occupation controlling shareholder/actual controller of
Tunghsu Optoelectronic, the
company/individual and other companies
controlled by the company/individual shall
not engage in any same or similar business
that is competitive with that of Tunghsu
Optoelectronic and other companies
controlled by it, nor carry out any activities
that may impinge on Tunghsu Optoelectronic
and other companies controlled by it. If
business opportunities obtained by the
company/individual and other companies
controlled by the company/individual are
within the main business scope of Tunghsu
Optoelectronic and other companies
controlled by it, the company/individual and
other companies controlled by the company/
individual shall give the opportunities to
Tunghsu Optoelectronic and other companies
controlled by it. 3. During the period when
the company/ individual acts as the
controlling shareholder/actual controller of
Tunghsu Optoelectronic, the
company/individual shall continue to strictly
perform the relevant statements and
commitments regarding avoiding competition
in the same industry previously made by the
company/individual.
1. As of the date of this statement and
commitment, the company/individual and/or
other companies that are directly or indirectly
controlled by the company/individual shall
Chen
Commitm not compete with Tunghsu Optoelectronic
Dacheng,Chen
ents on (including its subsidiaries, the same below). 2.
Xicheng,
horizontal The company/individual and other companies Unde
Shanghai
competitio controlled by the Company/individual shall March Long-term r
Huimao
n, related not engage in any same or similar business 20,2017 effective Fulfil
Enterprise
transaction that is competitive with that of Tunghsu lment
Management
and capital Optoelectronic and other companies
Co., Ltd.; Wang
occupation controlled by it, nor carry out any activities
Wenxi, Yao Eqin
that may impinge on Tunghsu Optoelectronic
and other companies controlled by it. If
business opportunities obtained by the
company/individual and other companies
48
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
controlled by the company/individual are
within the main business scope of Tunghsu
Optoelectronic and other companies
controlled by it, the company/individual and
other companies controlled by the company/
individual shall give the opportunities to
Tunghsu Optoelectronic and other companies
controlled by it.
1. After the transaction and during the
association relationship existence between the
Company/I and Tunghsu Optoelectronic,
without examination and approval of the
decision-making process specified by
Tunghsu Optoelectronic per the Company
Law, Securities Law and relevant regulations
as well as Articles of Association and
Connected Transaction Management System,
the Company/I and any holding enterprise
shall endeavor to avoid any connected
transaction with Tunghsu Optoelectronic, will
not, based on its own influence on the listed
company, seek any right superior to that of
Commitm any third party in the market in terms of the
ents on business cooperation with Tunghsu
horizontal Optoelectronic or any preferential right on the Unde
Tunghsu
competitio transaction with the same. 2. If any connected March Long-term r
Group,Li
n, related transaction does exist necessarily and 20,2017 effective Fulfil
Zhaoting
transaction inevitably, the Company/I and any holding lment
and capital enterprise will, together with Tunghsu
occupation Optoelectronic, enter into an agreement per
laws based on principles of equity, fairness
and valuable consideration, etc. subject to
regulations of China Securities Regulatory
Commission (CSRC), Shenzhen Stock
Exchange (SZSE) and Articles of Association
of Tunghsu Optoelectronic, implement legal
process and information disclosure obligation.
3. The Company/I undertake not to trade with
Tunghsu Optoelectronic per unfair conditions
compared with market price or act against the
legal interests of Tunghsu Optoelectronic and
shareholders thereof through such trade. 4. If
Tunghsu Optoelectronic suffers any loss due
to the trade against the commitment above,
49
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
the Company/I shall undertake the
compensation liability.
1. After the transaction, without examination
and approval of the decision-making process
specified by Tunghsu Optoelectronic
(including any subsidiary thereof, similarly
hereinafter) per the Company Law, Securities
Law and relevant regulations as well as
Articles of Association and Connected
Transaction Management System, the
Company/I and any holding enterprise shall
endeavor to avoid any connected transaction
with Tunghsu Optoelectronic, will not, based
on its own influence on Tunghsu
Optoelectronic, seek any right superior to that
of any third party in the market in terms of the
Chen
business cooperation with Tunghsu
Dacheng,Chen Commitm
Optoelectronic or any preferential right on the
Xicheng, ents on
transaction with the same. 2. If any connected
Shanghai horizontal Unde
transaction does exist necessarily and
Huimao competitio March Long-term r
inevitably, the Company/I and any holding
Enterprise n, related 20,2017 effective Fulfil
enterprise will, together with Tunghsu
Management transaction lment
Optoelectronic, enter into an agreement per
Co., Ltd.; and capital
laws based on principles of equity, fairness
Wang Wenxi, occupation
and valuable consideration, etc. subject to
Yao Eqin
regulations of China Securities Regulatory
Commission (CSRC), Shenzhen Stock
Exchange (SZSE) and Articles of Association
of Tunghsu Optoelectronic, implement legal
process and information disclosure obligation.
3. The Company/I undertake not to trade with
Tunghsu Optoelectronic per unfair conditions
compared with market price or act against the
legal interests of Tunghsu Optoelectronic and
shareholders thereof through such trade. 4. If
Tunghsu Optoelectronic suffers any loss due
to the trade against the commitment above,
the Company/I shall undertake the
compensation liability.
Mianyang Until the issuance of the statement, the
Unde
Technology City Other Company has never entered into any acting in
March Long-term r
Development Commitm concert agreement with any shareholder of
20,2017 effective Fulfil
Investment ent Tunghsu Optoelectronic or conducted any act
lment
(Group) Co., possible to impel several shareholders thereof
50
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.;Shanghai to exercise their respective rights jointly
Huimao resulting in the substantial control of Tunghsu
Enterprise Optoelectronic. After the asset reorganization
Management and supporting funds raising, the Company
Co., will own shares of Tunghsu Optoelectronic
Ltd.;Sichuan directly and become one shareholder thereof;
Changhong thus, the Company undertakes hereby to
Electric exercise the shareholder’s rights
Appliance Co., independently and not to conclude any acting
Ltd. in concert agreement or reach private
consensus on acting in concert with other
shareholders of Tunghsu Optoelectronic in the
future.
Not overstepping its authority to interfere
with the company's management activities.
(2) Not encroach the interests of the company.
(3) If the CSRC or Shenzhen Stock Exchange
has different requirements on the commitment
made by the Company / I to ensure the sound
implementation of the returns fill-up measures
for the diluted returns at the period caused by
this transaction, the Company / I shall
voluntarily and unconditionally make the
commitment in accordance with the
requirements of the CSRC or the Shenzhen
Unde
Tunghsu Other Stock Exchange. (4) As one of the relevant
June Long-term r
Group,Li Commitm liability subjects to the returns fill-up
10,2017 effective Fulfil
Zhaoting ent measures, the Company / I undertake that
lment
strictly abide by the above commitment made
by the Company / I and ensure that the returns
fill-up measures of the Company / I can be
soundly implemented. If the Company / I
violate the above commitments or refuse to
fulfill the above commitments, the Company /
I hereby agree to impose relevant penalties or
relevant management measures on the
Company / I in accordance with the relevant
regulations and rules formulated and issued
by the securities regulatory authorities such as
the CSRC and the Shenzhen Stock Exchange.
Gong Xin, Han Undertake that faithfully and diligently
Other Unde
Zhiguo, Huang perform duties and protect the lawful rights June Long-term
Commitm r
Jinliang, Li and interests of the company and all its 10,2017 effective
ent Fulfil
Zhaoting, Liu shareholders; (2) undertake that not transfer
51
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Wentai, Lu benefits to other units or individuals in lment
Guihua, Wang gratuitous or unfair conditions and not take
Jianqiang, Wang any other ways to damage the interests of the
Junming, Wang company; (3) undertake that curb the
Lipeng, Wang position-related consumption behavior; (4)
Zhonghui and undertake not to use the company's assets to
Zhang engage in investment or consumption
Shuangcai. activities that have nothing to do with the
performance of the duties; (5) undertake that
the remuneration system established by the
board of directors or the remuneration and
assessment committee is linked to the
company's implementation of the returns
fill-up measures, and make affirmative vote
for the relevant motions of the board of
directors and the general meeting of
shareholders when participating in the
decision; (6) if the company launches the
equity incentive policy subsequently, then
undertake that the terms of exercise of the
company's equity incentive to be announced
are linked to the performance of the
company's measures of returns fill-up and
make affirmative vote for the relevant
motions of the board of directors and the
general meeting of shareholders when
participating in the decision; (7)If the CSRC
or Shenzhen Stock Exchange has different
requirements on the commitment made by I to
ensure the sound implementation of the
returns fill-up measures for the diluted returns
at the period caused by this transaction, I shall
voluntarily and unconditionally make the
commitment in accordance with the
requirements of the CSRC or the Shenzhen
Stock Exchange. (8) As one of the relevant
liability subjects to the returns fill-up
measures, I undertake that strictly abide by
the above commitment made by I and ensure
that the returns-fill-up measures of the
Company shall be soundly implemented. I
hereby agree to impose relevant penalties or
relevant management measures on the
Company / I in accordance with the relevant
52
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
regulations and rules formulated and issued
by the securities regulatory authorities such as
the CSRC and the Shenzhen Stock Exchange.
For subscription of the supporting raised
funds, Tunghsu Group issues Commitment
Letter for Subscription Fund Sources and
make the following commitment that: 1. all
funds used by the Company for subscription
of the supporting raised funds are owned by
the Company, which are obtained legally
other than financing through mortgage of the
Valid Unde
Other owned shares of the listed companies with the
August period to r
Tunghsu Group Commitm bank and any other financial institution, etc.;
10,2017 December Fulfil
ent 2. the funds used by the Company for
31,2018 lment
subscription of the supporting raised funds are
free from encumbrance within a short term
(12 months); 3. the funds used by the
Company for subscription of the supporting
raised funds never come from collection from
unspecified objects through public or
disguised public way or more than 200
specified objects.
It shall coordinate and cooperate with
Sunlong Bus positively in the ownership
certificate application formalities for the
property before registration and protect
Sunlong Bus from influence of such issue
during normal production and operation;
otherwise, for any economic loss suffered of
Sunlong Bus during operation in the future
Shanghai
due to such ownership issue (including but Unde
Huimao Other
not limited to the penalty on the relevant October Long-term r
Enterprise Commitm
company by the governmental department, 26,2017 effective Fulfil
Management ent
overdue fine and losses for normal production lment
Co., Ltd.
operation interruption due to such issue
resolution and correction on relevant property
problem, etc.), Shanghai Huimao shall
compensate Sunlong Bus in full within 30
days after Tunghsu Optoelectronic
Technology Co., Ltd. confirms the actual
losses suffered by Sunlong Bus due to such
issue above per laws.
Tunghsu Share The shares of Tunghsu Optoelectronic held by November November Com
53
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Group,Tunghsu limited the Company prior to this transaction shall not 30,2017 29,2018 plete
Technology commitme be transferred in any way within 12 months d
Group Co., nt after the completion of this transaction,
Ltd., including but not limited to transfer publicly,
Shjiazhuang in block trade or by agreement in the
Baoshi Group securities market, nor be bought back by
Tunghsu Optoelectronic. The increased shares
held by Tunghsu Optoelectronic due to bonus
shares and conversion into share capital shall
also be locked up in accordance with the
above lock-in period requirements.
1. The shares of Tunghsu Optoelectronic
acquired by the company due to this asset
reorganization shall not be transferred or
entrusted to others for management within 36
months from the end of issuance of the shares,
nor be repurchased by Tunghsu
Optoelectronic upon the request of the
company. The shares derived from
distribution of stock dividends and increase in
capital reserves of the stocks issued to
Tunghsu Group,
targeted investors of Tunghsu Optoelectronic
Shanghai Share Unde
acquired by company in this transaction shall
Huimao limited November November r
also meet the requirements of
Enterprise commitme 30,2017 29,2020 Fulfil
above-mentioned share lockup arrangement.
Management nt lment
2. Tunghsu Group promises that if closing
Co., Ltd
price of Tunghsu Optoelectronic’ shares is
lower than offering price for twenty
consecutive trading days within six months
after the completion of the transaction, or if
closing price at the end of six months after the
completion of the transaction is lower than
offering price, Tunghsu Group shall
automatically extend the lock-up period of
shares acquired by Tunghsu Optoelectronic
due to this asset reorganization for 6 months.
Mianyang The shares of Tunghsu Optoelectronic
Technology City acquired by the company due to this asset
Development Share reorganization shall not be transferred or
Com
Investment limited entrusted to others for management within 12 November November
plete
（Group）Co., commitme months from the end of issuance of the shares, 30,2017 29,2018
d
Ltd.; Sichuan nt nor be repurchased by Tunghsu
Changhong Optoelectronic upon the request of the
Electric company. The shares derived from
54
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Appliance Co., distribution of stock dividends and increase in
Ltd. capital reserves of the stocks issued to
targeted investors of Tunghsu Optoelectronic
acquired by company in this transaction shall
also meet the requirements of
above-mentioned share lockup arrangement.
The shares of Tunghsu Optoelectronic that are
issued for supporting fund raising subscribed
by Tunghsu Group shall not be transferred
within 36 months from the date of being
listed, and after 36 months, the shares shall be
Share transferred in accordance with the relevant Unde
limited regulations of China Securities Regulatory December December r
Tunghsu Group
commitme Commission and Shenzhen Stock Exchange. 28,2017 28,2020 Fulfil
nt Upon the end of the issue, Tunghsu lment
Group shall abide by the preceding
provision while acquiring shares of the
Company through distribution of
dividend and increase of stock by
transfer.
Shares of Tunghsu Optoelectronic
subscribed by other particular target
investors except for Tunghsu Group
shall not be transferred in 12 months
Minjia Silver
after going public but afterwards, such
Fund
Share shares shall be subject to relevant
Management Com
limited provisions of China Securities December December
Co., Ltd.; Beixin plete
commitme Regulatory Commission and Shenzhen 28,2017 28,2018
Ruifeng Fund d
nt Stock Exchange. Upon the end of the
Management
issue, other investors shall abide by the
Co., Ltd.
preceding provision while acquiring
shares of the Company through
distribution of dividend and increase of
stock by transfer.
1. Shanghai Huimao promises that the audited
Performan net profit of Sunlong Bus shall not be less
ce than RMB 300 million in 2017, RMB 400
Shanghai
commitme million in 2018 and RMB 550 million in Unde
Huimao
nt and 2019. 2. During the profit commitment November December r
Enterprise
compensat period, if the actual profit accrued as of the 30,2017 31,2019 Fulfil
Management
ion end of 2017 (including the current year), 2018 lment
Co., Ltd
arrangeme (including 2017), and 2019 (including 2017
nts and 2018) of Sunlong Bus cannot reach the
cumulative promised net profit for
55
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
corresponding year, Shanghai Huimao shall
make a profit compensation for the gap by
means of shares. If shares are insufficient to
make compensation, Shanghai Huimao shall
make up for it in cash.
1. Tunghsu Group promises that if Xu Hong
Photoelectric has completed business
transaction in 2017, the audited actual net
profit of Xu Hong Photoelectric shall not be
less than RMB 75 million yuan in 2017, RMB
98 million in 2018 and RMB 115 million in
Performan 2019. If Xuhong Photoelectric has failed to
ce complete business transaction in 2017,
commitme Tunghsu Group further promises that net Unde
nt and profit of Xu Hong Photoelectric shall not be November December r
Tunghsu Group
compensat less than RMB 138 million in 2020. 2. If Xu 30,2017 31,2019 Fulfil
ion Hong Photoelectric has completed business lment
arrangeme transaction in 2017, Tunghsu Group shall
nts make up for the profit gap between actual
profit accrued as of the end of 2017
(including the current year), 2018 (including
2017), and 2019 (including 2017 and 2018)
within the profitability commitment period
and cumulative promised net profit for
corresponding year by means of shares.
1.From the date of commitment letter issued,
except the managed hosting company for
Baoshi , this company and majority-owned
subsidiaries do not in any way, directly or
indirectly engaged in business and Baoshi and
its subsidiaries are the same, or similar, future
Commitm
Baoshi shares and its subsidiaries are not
en ts on
engaged in the same or similar businesses.
horizontal Unde
2.The company assurances against the use of
Commitments made competitio November Long-term r
Li Zhaoting precious stones share any act prejudicial to
upon issuance n, related 22,2011 effective Fulfil
the control relationship of Baoshi interests
transaction lment
and its wholly-owned subsidiaries, holding, or
and capital
causing Baoshi shares and its wholly-owned
occupation
subsidiaries, holding form business
competition decisions. 3. The company will
not directly invest, purchase and Baoshi
identical or similar business enterprises and
projects.
4.If the assets owned by the Baoshi . compete
56
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
with , the company will adopt effective
measures and give up the same business. 5. If
the company has horizontal competition with
Baoshi and lead to lose to it, the company will
bear all the responsibilities. 6. Pursuant to
relevant conditions of securities supervision, I
promise to inject all my holding equity of
entrusted company under management by
Baoshi Stock into Baoshi Stock. During the
period that I am the actual controller of the
Baoshi Stock, the promise is a valid
commitment.
1.From the date of commitment letter issued,
except the managed hosting company for
Tunghsu Optoelectronic , this company and
majority-owned subsidiaries do not in any
way, directly or indirectly engaged in
business and Tunghsu Optoelectronic and its
subsidiaries are the same, or similar, future
Tunghsu Optoelectronic shares and its
subsidiaries are not engaged in the same or
similar businesses.
2.The company assurances against the use of
precious stones share any act prejudicial to
Tunghsu Commitm the control relationship of Tunghsu
Group;Shijiazh ents on Optoelectronic interests and its wholly-owned
uang Baoshi horizontal subsidiaries, holding, or causing Tunghsu Unde
Group; competitio Optoelectronic shares and its wholly-owned April1，1 Long-term r
Tunghsu n, related subsidiaries, holding form business 2012 effective Fulfil
Optoelectronic transaction competition decisions. 3. The company will lment
Investment and capital not directly invest, purchase and Tunghsu
Co.,m Ltd. occupation Optoelectronic identical or similar business
enterprises and projects.
4.If the assets owned by the Tunghsu
Optoelectronic . compete with , the company
will adopt effective measures and give up the
same business. 5. If the company has
horizontal competition with Tunghsu
Optoelectronic and lead to lose to it, the
company will bear all the responsibilities.
Within the period when the company is still
the controlling shareholder of Tunghsu
Optoelectronics, the commitments are in
effect.
57
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
In view of:
The main business of Tunghsu Optoelectronic
is the production of TFT-LCD glass substrate,
and the company now is applying for
non-public offering of ,bonds (2) Tunghsu
Group is the controlling shareholder of
Tunghsu Optoelectronic; and during the
period of holding, Tunghsu Group has signed
patent license contracts separately with
Tunghsu Optoelectronic and its subsidiaries
including Wuhu Tunghsu Optoelectronic
Science and Technology Co., Ltd. (hereinafter
referred to as Wuhu Optoelectronic), Wuhu
Tunghsu Optoelectronic Equipment
Technology Co., Ltd. (hereinafter referred to
as Wuhu Equipment) and Shijiazhuang
Tunghsu Optoelectronic Equipment
Technology Co., Ltd. (hereinafter referred to
as Shijiazhuang Equipment). For this purpose,
Tunghsu Group has made following promises: Unde
Other Valid for
Any patents related to panel display glass February r
Tunghsu Group commitme December
substrate not included in the aforesaid 8,2015 Fulfil
nt 31,2020
Contract on the Licensing of Patent lment
Exploitation obtained by Tunghsu Group in
the future, Tunghsu Group shall sign a free
contract of licensing the new pertinent patents
with the company and the company’s
subsidiaries (Wuhu Optoelectronic
Technology Co.,Ltd, Wuhu Equipment
Company and Shijiazhuang Equipment
Company) with the same articles of the
former patent licensing contract. After the
company successfully completed the issuance
of corporate bonds, whether Tunghsu Group
control the company during the duration of
the bonds, Tunghsu Group shall renew the
patent licensing contract unreserved with the
company and the company’s subsidiaries
(Wuhu Optoelectronic Technology Co.,Ltd,
Wuhu Equipment Company and Shijiazhuang
Equipment Company) under the company’s
requirement until the bonds expired.
Tunghsu To raise In view of: Tunghsu Optoelectronic February 10, Valid for Unde
Optoelectronic funds to Technology Co., Ltd. is applying for public 2015 December r
58
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Co., use the offering of corporate bonds, and the total 31,2020 Fulfil
Ltd. commitme scale of bonds will not exceed 1 billion yuan. lment
nt After the deduction of issue expenses, all the
funds raised are planed to be used to
supplement the liquidity and support the
R&D, production and material purchase of
glass substrate and the equipment. Thus, the
demands of business operation and expansion
in the company will be satisfied. The
company promises: 1. The funds raised
through the public offering of corporate bonds
will not be directly or indirectly invested in
real estate development business, or used to
increase the capital fund or as loans in
subsidiaries engaged in real estate business; 2.
the funds raised through the public offering of
corporate bonds will not be used for real
estate development business in any form.
In view of:
(1) The main business of Tunghsu
Optoelectronic is the production of TFT-LCD
glass substrate, and the company now is
applying for non-public offering of stock; (2)
Tunghsu Group is the controlling shareholder
of Tunghsu Optoelectronic; and during the
period of holding, Tunghsu Group has signed
patent license contracts separately with
Tunghsu Optoelectronic and its subsidiaries
including Wuhu Tunghsu Optoelectronic
Unde
Other Science and Technology Co., Ltd. (hereinafter
June 17, Long-term r
Tunghsu Group commitme referred to as Wuhu Optoelectronic), Wuhu
2015 effective Fulfil
nt Tunghsu Optoelectronic Equipment
lment
Technology Co., Ltd. (hereinafter referred to
as Wuhu Equipment) and Shijiazhuang
Tunghsu Optoelectronic Equipment
Technology Co., Ltd. (hereinafter referred to
as Shijiazhuang Equipment). For this purpose,
Tunghsu Group has made following promises:
within the term of validity involving patent
right stated in patent license contracts,
whether Tunghsu Optoelectronic is in the
control of Tunghsu Group or not, Tunghsu
Group promises that when the above
59
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
mentioned patent license contracts expire, the
group will unconditionally renew the
contracts with Tunghsu Optoelectronic and its
subsidiaries (Wuhu Optoelectronic, Wuhu
Equipment, Shijiazhuang Equipment and etc)
according to the terms of original contracts
based on the requirements of Tunghsu
Optoelectronic.
To avoid the horizontal competition with the
issuer, the company’s actual
controller-Zhaoting, Li and the holding
company-Tunghsu Group promised: 1. As of
this declaration and from the date of
commitment letter issued, except the managed
hosting companies, the other companies
directly or indirectly controlled by the
controller or holding company have no
horizontal competitions with Tunghsu
Optoelectronic Technology Co., Ltd. 2. Any
other companies controlled by the actual
controller or holding company shall avoid
businesses identical or similar to the company
Commitm
may lead to a competitive relation and cannot
ents on
do any harm activities to Tunghsu
horizontal Unde
Tunghsu Optoelectronic Technology Co., Ltd and Decembert
competitio Long-term r
Group,Li companies controlled by Tunghsu 16,
n, related effective Fulfil
Zhaoting Optoelectronic Technology Co., Ltd as long 2015
transaction lment
as there are no alterations of the actual
and capital
controller and the holding company. Any
occupation
businesses opportunities under the main
business scope of Tunghsu Optoelectronic
Technology Co., Ltd and its controlled
companies shall not take by the companies
controlled by the actual controller or the
holding company, and the business
opportunities shall be given to Tunghsu
Optoelectronic Technology Co., Ltd and its
controlled companies.3. As long as the actual
controller and the holding company are the
same, the actual controller and the holding
company shall continue to strictly
performance the relevant declarations and
commitments of avoiding horizontal
60
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
competition. If I (the company) violated the
above commitment, I (the company) will bear
all the losses of Tunghsu Optoelectronic and
its controlled enterprises arising from this.
In order to safeguard the the company's main
business of TFT-LCD glass substrate
production, the controlling
shareholder-Tunghsu Group Co. Ltd made a
commitment valid in the period of the
company’s application for non-public share
issuance: given (1) The main business of
Tunghsu Optoelectronic Technology Co., Ltd
is TFT-LCD glass substrate production, and
currently it is applying for non-public share
issuance; (2) Tunghsu Group, which is the
controlling shareholder of Tunghsu
Optoelectronic, respectively signed Patent
Licensing Contract with Tunghsu
Optoelectronic, Tunghsu Optoelectronic’s
subsidiaries of Wuhu Tunghsu Optoelectronic
Technology Co., Ltd (hereinafter referred to
as "Wuhu Optoelectronics"), Wuhu Tunghsu
Unde
Other Optoelectronic Equipment Technology Co., Valid for
December r
Tunghsu Group commitme Ltd (hereinafter referred to as "Wuhu December
16,2015 Fulfil
nt Equipment") and Shijiazhuang Tunghsu 31,2030
lment
Optoelectronic Equipment Technology Co.,
Ltd (hereinafter referred to as "Shijiazhuang
Equipment") during the control period.
Therefore, Tunghsu Group made a
commitment as follows: In the term of
validity of the patents involved in the patent
licensing contract, whether Tunghsu Group
controls Tunghsu Optoelectronic or not, after
the commitment of the above-said Patent
Licensing Contract expired, Tunghsu Group
will, according to the requirements by
Tunghsu Optoelectronic, unconditionally
renew Patent Licensing Contract with
Tunghsu Optoelectronic and Tunghsu
Optoelectronic’s subsidiaries (Wuhu
Optoelectronics, Wuhu Equipment and
Shijiazhuang Equipment) according to the
original contract terms.
Tunghsu Share The company, one of the subscription objects, December16 Valid for Unde
61
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Group;Changjia limited promised that after Tunghsu Optoelectronic ,2015 December r
ng Securities commitme Technology Co., Ltd completed the non 16,2018 Fulfil
(Shanghai )Asse nt public issuance of shares to the company and lment
t Management specific objects for raising funds, the shares
Co., (New shares) issued by Tunghsu
Ltd.;Kunshan Optoelectronic Technology Co., Ltd and
Development subscribed by the company shall not be
Zone State transferred to any others in 36 months
Investment Co., commenced from the publicly listed date of
Ltd.;Beijing the new shares. As a result of the issuance of
Yingfei Hailin new shares by the Company to the Company,
Investment the shareholding of Tunghsu Optoelectronic
Center (Limited Co., Ltd. by Tunghsu Optoelectronic Co., Ltd.
partnership). will also be subject to the above
commitments.
Not act in excess of authority to interfere the
Tunghsu Other Valid for Com
company’s management and operating February
Group,Li Commitm December plete
activities, not encroach on the interests of the 6,2016
Zhaoting ent 31,2019 d
company.
(a) Promised that not freely or unfairly
transfer interests to other units or individuals,
nor adopt other ways to jeopardize the
company’s interests. (b) Promised that restrict
the post consumer behaviors of the directors
and senior management personnel. (c)
Promised that not use the company's assets to
Li Zhaoting, engage in the investment &consuming
Zhou Bo,Niu activities which are irrelevant to perform the
Jianlin, Gong duties. (d) Promised that the salary system set
Xin, Lu up by the board of directors or the
Unde
Guihua, Mu Other Remuneration Committee is relevant to the Valid for
February r
Tiehu, Zhang Commitm implementation status of the company’s December
6,2016 Fulfil
Shuangcai, Shi ent fill-up return measures. (e) Promised that the 31,2019
lment
Zhiqiang , Liu vesting conditions of the company’s equity
Wentai,Xiao incentive are relevant to the implementation
Zhaoxiong and status of the company’s fill-up return
Zhou Bo measures. (f) Promised the full
implementation of the relevant fill-up return
measures established by the company and any
commitment related to the fill-up return
measures, if such commitment is breached
and resulted in losses to the company or the
investors, the concerning party shall take the
responsibility for compensating the company
62
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
or the investors according to the law. As one
of the relevant responsibility bodies of the
fill-up return measures, if the oneself breaches
the above-said commitments or refuse to
fulfill the above-said commitments, the
oneself agrees the punishments or relevant
supervise measures carried out in accordance
with the regulations and rules issued or
enacted by CSRC, Shenzhen Stock Exchange
and other securities regulatory organizations.
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
Commitm
add-directional share issuance. During the
ents on
above-mentioned period, if external factors
horizontal Unde
such as the decline in the overall prosperity of Valid for
competitio December r
Tunghsu Group the industry, changes in regulatory June30,2
n, related 14,2017 Fulfil
requirements, and other external factors lead 018-
transaction lment
to Tunghsu Yingkou equity not meeting the
and capital
conditions for asset injection, the actual
occupation
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
To ensure Tunghsu Optoelectronic
Technology Co., Ltd realizing expected
benefits on the M&A of Shanghai Tanyuan
Performan Huigu New Materials Technology Co., Ltd,
ce the promisee voluntarily promised the profits
Guo Shouwu,
commitme of Shanghai Tanyuan Huigu New Materials Unde
Other commitments Ma Shengjie, Valid for
nt and Technology Co., Ltd for the next three years March r
made to minority Wu Haixia , December
compensat as follows: (a) Business performance 8,2016 Fulfil
shareholders Shen Wenzhuo 31,2019
ion commitment: the net profits of Shanghai lment
and Shen Li
arrangeme Tanyuan Huigu New Materials Technology
nts Co., Ltd in year-2016, year-2017, year-2018
shall accordingly not be less than RMB 5
million, RMB 10 million, RMB 20 million.
(b) Compensation mode: if the net profits of
63
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shanghai Tanyuan Huigu New Materials
Technology Co., Ltd in year-2016, year-2017,
year-2018 accordingly do not reach the
promised net profits, the promised party shall
fully compensate the difference by cash.
All eight shareholders of Ming Shuo (Beijing)
Electronic Technology Co., Ltd namely Chen
Wei, Zhu Lei, Wang Yingchao, Jin Xiuzhen,
Beijing Heyiyou
Jiang Wei, Li Honglei, Beijing He Yiyou
Investment Performan
Investment Partnership (limited partnership)
Partnership( LP) ce
and Qian Xinming voluntarily make the
;Chen Wei, commitme Unde
commitment for the profits of the next three Valid for
Jiang Wei, Jin nt and May r
years of Ming Shuo (Beijing) Electronic June
Xiuzhen, Li compensat 11,2017 Fulfil
Technology Co., Ltd and such commitment is 30,2020
Honglei, Qian ion lment
as follows: The audited net profits after tax in
Xinming, Wang arrangeme
2017, 2018 and 2019 (determined by the
Yingchao and nts
lower principle after the deduction of non
Zhu Lei.
recurring gains and losses) are no less than
RMB 10.5 million, RMB 20 million and
RMB 40 million respectively.
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
Share Unde
(i.e. the secondary market) with not less than Valid for
holdings February r
Tunghsu Group RMB 500 million and not exceeding RMB1.5 August
commitme 2,2018 Fulfil
billion in the next six months since the date of 2,2018
nt lment
the announcement (February 2, 2018).
Tunghsu Group promised not to reduce the
holdings of the company's shares during the
implementation period of this plan of
increasing share-holding and during the
statutory period.
Shenzhen Performan
Sanbao ce In 2018-2020, Shenzhen Sanbao Innovation
Innovation and commitme Intelligence Co., Ltd. (hereinafter referred to Unde
Valid for
Technology nt and as Sanbao Innovation) will implement a May r
Decemver
Partnership compensat cumulative net profit amounting to not lower 29,2018 Fulfil
31,2020
(limited ion than RMB 75 million. To avoid ambiguity, lment
partnership); arrangeme the preceding net profit refers to the annual
Zhuang nts after-tax net profit promised by Sanbao
64
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Yongjun; Lin Innovation upon deduction of non-recurring
Lude income and loss, subject to what is stated in
the annual audit report. If the preceding
promised cumulative performance is not
fulfilled, parties shall agree that the
undertaker shall convert and transfer
corresponding share of equity of Sanbao
Innovation to the Company free of charge to
offset the balance of the outstanding net
profit, whereas the cumulative equity of
Sanbao Innovation transferred by the
undertaker free of charge for supplementing
the balance of the promised performance in
the performance commitment period shall not
be higher than 8%.
Executed timely or
Yes
not?
If the commitment has
not been implemented
at the end of the
reporting period, it is
necessary to explain Not applicable
the specific reason of
failure in
implementation and
the future work plan.
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □Not applicable
Asset or Project
Start date of End date of the Disclosure
Name of Forecast Actual Reason for less Reference for the
the forecasting forecasting date of the
Earnings earnings earnings than forecast Forecast
period period Forecast
Forecast
Shanghai
Tanyuan Huigu Disclosed on
December March
New Material March 8,2016 2,000 2,060.8 Completed cninfo.com.cn.( 2016-0
31,2018 9,2016
Technology Co., 30)
Ltd.
Shanghai November December 40,000 42,523.26 March Tunghsu
65
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Sunlong Bus 30,2017 31,2019 21,2017 Optoelectronic
Co., Ltd. Technology Co., Ltd.
Issued shares, paid
cash to buy assets and
raised supporting funds
and related party
transactions as
published on
cninfo.com.cn
Tunghsu
Optoelectronic
Technology Co., Ltd.
Sichuan Xuhong Issued shares, paid
Optoelectronic November December March cash to buy assets and
9,800 9,912.72 Completed
Technology Co., 30,2017 31,2019 21,2017 raised supporting funds
Ltd. and related party
transactions as
published on
cninfo.com.cn
Please refer to
the statement on
the 2018
Mingshuo
performance
（Beijing） Disclosed on
December commitment of May
Electronic May 11,2017 2,000 273.65 cninfo.com.cn.( 2017-0
31,2019 mingshuo 11,2017
Technology Co., 47)
Technology
Ltd.
disclosed by the
company for
details.
Shenzhen
Sanbao Disclosed on
December May
Innovation May 28,2018 750 -875.45 Not applicable cninfo.com.cn.( 2018-0
31,2020 29,2018
Intelligence Co., 69, 2018-079)
Ltd.
The commitments of the operating earnings made by the company’s shareholder and relevant transaction parties
√Applicable □Not applicable
1. The Company's shareholders including Tunghsu Group and Shanghai Huimao made a performance
commitment for the report year regarding such M&A targets as Xuhong Optoelectronics and Sunlong Bus in the
Company's 2017 related transactions of issuing shares, buying assets by cash and raising supporting funds. In the
report period, both Xuhong Optoelectronics and Sunlong Bus fulfilled the performance commitment. Data details
are shown in the preceding table.
2. In March 2016, the Company and five natural person shareholders of Shanghai Tanyuan Huigu including
Guo Shouwu, Ma Shengjie, Wu Haixia, Shen Wenzhuo and Shen Li (hereinafter referred to as the undertaker)
66
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
entered into a Performance Commitment to make a commitment to the business performance of Shanghai Tanyuan
Huigu in the report period. Till the end of the report period, Shanghai Tanyuan Huigu fulfilled the commitment.
Data details are shown in the preceding table.
3. In May 2017, Taizhou Tunghsu Graphene Industry Investment Fund Management Center (Limited
Partnership) whose funds were managed by the Company's wholly-owned subsidiary Shenzhen Xuhui Investment
Holding Limited and holding subsidiary Beijing Tunghsu Huaqing Investment Co., Ltd. entered into an Agreement
on Equity Transfer and Capital and Share Increase at Mingshuo (Beijing) Electronic Technology Co., Ltd. with
shareholders of MS Technology including Chen Wei, Zhu Lei, Wang Yingchao, Jin Xiuzhen, Jiang Wei, Li
Honglei, Beijing Heyiyou Investment Partnership (Limited Partnership) and Qian Xinming regarding matters of
equity transfer and capital and share increase at MS Technology, wherein a commitment was made to the business
performance in the report period: the audited after-tax net profit in 2018 (or the amount after deduction of the
non-recurring income and loss, whichever lower) is not lower than RMB 20 million. In the report period, MS
Technology implemented RMB 2,736,500 in the after-tax net profit upon deduction of non-recurring income and
loss, indicating its failure to fulfill the 2018 business performance commitment.
4. In June 2018, the Company invested and acquired Sanbao Innovation. According to the Agreement on
Equity Transfer and Capital and Share Increase at Shenzhen Sanbao Innovation Intelligence Co., Ltd. concluded
with shareholders of Sanbao Innovation including Lin Lvde, Zhuang Yongjun and Shenzhen Sanbao Innovation
Technology Partnership (Limited Partnership) (hereinafter referred to as the undertaker), the undertaker made a
commitment to profits of Sanbao Innovation in the following three years of their own accord: Sanbao Innovation
implements a cumulative net profit amounting to not lower than RMB 75 million in 2018-2020, wherein the
amount of 2018 performance commitment is calculated by actual remaining months upon the completion of the
transaction in the following method: amount of 2018 performance commitment=2018 promised net
profit×(12-months of payment of the Company's equity transfer and capital increase)/12. In June-December 2018,
Sanbao Innovation implemented a net profit of RMB -8,754,500 upon deduction of non-recurring income and loss,
which was accumulated to the cumulative performance commitment for the following year, not indicating its
failure to fulfill the performance commitment.
Fulfillment of performance commitment and impact on goodwill impairment test
By the end of the report period, the Company entrusted an external professional appraisal
institution--Zhongming (Beijing) Assets Appraisal International Co., Ltd. to appraise and test the goodwill of
Shanghai Sunlong, Tanyuan Huigu, Mingshuo and Sanbao Innovation set out hereinbefore through the M&A.
1. Sunlong Bus and Shanghai Tanyuan Huigu which made normal operation and met profit expectation
showed no sign of goodwill impairment.
2. Mingshuo Technology failed to fulfill the 2018 business commitment. Through a judgment on the current
business situation of Mingshuo Technology and its development plan and market development trend for the five
years to come, no sign of impairment was found in the goodwill incurred through M&A of Mingshuo Technology
in the appraisal test.
3. The 2018 unfulfilled performance of Sanbao Innovation was accumulated to the promised cumulative
performance for the following year, not indicating its failure to fulfill the performance commitment. Through a
judgment on the current business situation of Sanbao Innovation and its development plan and market
development trend for the five years to come, no sign of impairment was found in the goodwill incurred through
M&A of Sanbao Innovation in the appraisal test.
67
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified Auditor’s
Report Issued by the CPAs.
□ Applicable √ Not applicable
VI. Explanation change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√ Applicable □Not applicable
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:
No Name of affected item in the statements Affected amount of December 31, 2017 / 2017
Increase + / decrease -
1 Notes receivable -538,128,584.84
Account receivable -7,873,419,684.42
Notes receivable & account 8,411,548,269.26
receivable
2 Interest receivable -49,456,785.29
Other receivable 49,456,785.29
3 Notes payable -1,063,897,679.89
Account payable -4,636,989,039.65
Notes payable & account payable 5,700,886,719.54
4 Interest payable -107,195,147.20
Dividend payable -35,000,000.00
Other payable 142,195,147.20
5 Management expenses -256,991,555.91
R & D ecpenses 256,991,555.91
VII. Explanation retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
Nil
VIII. Explanation change of the consolidation scope as compared with the financial reporting of last year.
√ Applicable □Not applicable
68
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
Income of Net Profit of
Acquire Acquire from
Ratio of Determination
Time-point of Method of from the the
Name of Obtained Cost of Obtained Purchasing Basis on the
Obtained Obtained Purchasing Purchasing
Acquirer Equity Equity Date Purchasing
Equity Equity Date to the Date to the
(100%) Date
End of the End of the
Period Period
Shenzhen May 30, 157,598,587.50 67.00% May 30, 7,659,108.35
Enterprise
Sanbao 2018 2018 -12,733,040.1
consolidation Acquisition of
Innovation 3
not under the control
Intelligence
same control
Co., Ltd.
Zhongcheng May 30, 140,000,000.00 70.00% Enterprise March 30,
National 2018 consolidation 2018 Acquisition of -7,172,706.59
construction not under the control
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
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In 10,000 yuan
income of the Net profit of the Income Net profit of the
combined party merged party of the merged party
Recognition from the from the merged during the
Combination basis of beginning of the beginning of the party comparison
Name Proportion Basis
date combination current period to current period to during period
date the date of the date of the
merger merger comparis
on period
Tunghsu 65.00% Parent June 30,2018 Pay the 27,289,664.99 -11,435,425.33 16,069,4 -13,043,965.22
(Yingkou) Company consideration 29.21
Optoelectroni and control
c the operation
Display Co.,
Ltd.
69
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
3. Disposal of subsidiaries
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
subsidiary
Xuyou 550million 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 Book value of Fair value of Re-measure Method for Amount of other
of the remaining the remaining the gain or loss determining the comprehensive
remaining equity on the equity on the arising from fair value of the income related to
equity on date of loss of date of loss of the remaining remaining equity Atomic Company's
the date of control control equity at fair on the date of loss equity investment
loss of value of control and main transferred to
control assumptions investment gains
and losses
Xuyou 0.00% 0.00 0.00 0.00 0.00 0.00
Electronic
Material
Technology
（Wuxi) Co.,
Ltd.
4. The total that this period adds wants subsidiary company
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science 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.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
70
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
million and the paid-up capital of RMB200.00.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30
million and the paid-up capital of RMB 100,000;
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment
Co., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capital
of RMB10 million.
IX.Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Hebei Guanghua Accounting Firms Co., Ltd.(LLP)
Remuneration for domestic accounting firm (RMB10,000) 350
Continuous life of auditing service for domestic accounting firm 6
Name of domestic CPA Qi Zhenghua, Meing Xiaoguang
Continuous life of auditing service for domestic accounting firm 5
Has the CPAs been changed in the current period
□ Yes √ No
CPAs firm for the internal control audit
□ Applicable √ Not applicable
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII.Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
71
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or Other
Employee Incentive Measures
√Applicable □ Not applicable
1. The Company's first session of staff shareholding plan totaled RMB 495.4 million and involved full-amount
subscription of 72,639,296 shares in the Company's 2015 private placement through Changjiang Xingli No.2
Directed Issue Plan at cost price of RMB 6.82/share. Going public at Shenzhen Stock Exchange on December 17,
2015, the preceding shares will sustain 48 months in total. The restriction on sales was relieved in the staff
shareholding plan on December 18, 2018. The due date is December 16, 2019.
2. The Company set up the second session of its staff shareholding plan on September 5, 2017. Through the
assembled fund trust plan of the Zhonghai Trust-Tunghsu Optoelectronic Staff Shareholding Plan, 52,555,280
shares of the Company were bought at the secondary market in such methods as centralized bidding and block
trade, involving the amount of RMB 496,412,100, RMB 9.45/share in average; on December 28, 2017, the
transaction was completed and funds earned were transferred to the account of the assembled fund trust plan. The
duration is 24 months, and the duration of the Employee Stock Ownership Plan will expire on September 4, 2019.
XVI.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □ Not applicable
Whethe
Trading r over
Principl
limit the Market Index
Subjects e of Amount
price of of
of the pricing of trade Ratio in approve approve Way of Date of
Related Relation Type of Price of similar informa
related the (Ten similar paymen disclosu
parties ship trade trade trade tion
transacti related Thousa trades d（Ten d t re
availabl disclos
ons transacti nds)
e ure
ons Thousa limited
nds） or not
(Y/N)
Controll
Selling
Beijing ed by
goods Constru http://w
Zhonghua the Referen
and ction 19,613. 19,613. 14,543. Currenc 19,613. January ww.cni
n Xinrong same ce price No
providin Enginee 27 27 56 y 27 27,2018 nfo.co
Trade actual setting
g ring m.cn
Co., Ltd. controll
services
er
Huidong Controll Selling
Baoan ed by goods Constru http://w
Referen
Jinan the and ction 31,340. 31,340. 31,340. No Currenc 31,340. April ww.cni
ce price
Real same providin Enginee 93 93 93 y 93 20,2018 nfo.co
setting
estate actual g ring m.cn
Develop controll services
72
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
ment Co., er
Ltd.
Kunming
Controll
Tunghsu Selling
ed by
Qiming goods Constru http://w
the Referen 29,849. 29,849. 29,849.
Investme and ction Currenc 72 April ww.cni
same ce price 72 72 35,000 No
nt providin Enginee y 20,2018 nfo.co
actual setting
Develop g ring m.cn
controll
ment Co., services
er
Ltd.
Controll
Selling
Shengzho ed by
goods Constru http://w
u Zhexu the Referen
and ction 13,213. 13,213. Currenc 13,213. April ww.cni
Real same ce price 20,000 No
providin Enginee 64 64 y 64 20,2018 nfo.co
Estate actual setting
g ring m.cn
Co., Ltd. controll
services
er
Zhangzho
Controll
u Selling
ed by
Shenghua goods Constru http://w
the Referen
Real and ction 15,910. Currenc April ww.cni
same ce price 15,910 20,000 No 15,910
Eaeste providin Enginee 00 y 20,2018 nfo.co
actual setting
Develop g ring m.cn
controll
ment Co., services
er
Ltd.
Zhongsha
Controll
n Selling
ed by
Shenzhon goods Constru http://w
the Referen
g Real and ction 38,804. 38,804. Currenc 38,804. April ww.cni
same ce price 38,804. No
Eaeste providin Enginee 29 29 y 29 20,2019 nfo.co
actual setting 29
Develop g ring m.cn
controll
ment Co., services
er
Ltd.
148,731 -- 159,688
Total -- -- -- -- -- -- --
.85 .78
Details of any sales return of a large
Nil
amount
Give the actual situation in the report
period where a forecast had been
made for the total amounts of routine Nil
related-party transactions by type to
occur in the current period(if any)
73
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Reason for any significant difference
between the transaction price and the Not applicable
market reference price (if applicable)
2. Related-party transactions arising from asset acquisition or sale
√ Applicable □Not applicable
Valuation
Book
of
Principle value of Transacti
Subjects
of pricing transferre Transfer Index of
of the assets Way of on gain or Date of informati
Related Relations Type of the
related d assets price（Ten
parties hip trade related transferre payment loss（Ten disclosure on
transactio
transactio （Ten thousand） disclosure
ns d（Ten thousand）
ns
thousand）
thousand）
（If any）
TunghsuT
Disposal
echnolo Based on http://ww
Same Equity of Monetary April
gy audited 54,681.78 0 55,000 -318.22 w.cninfo.
control transfer subsidiari funds 14,2018
Group net assets com.cn
es
Co., Ltd.
Reasons for the difference between the
transfer price and the book value or Nil
valuation value（If any）
Impact on the company's operating results
Nil
and financial status
If the relevant transaction involves
performance agreement, the performance Nil
of the report during the reporting period
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable √ Not applicable
No such cases in the reporting period.
XVII.Particulars about significant contracts and their fulfillment
74
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No such cases in the reporting period.
(2) Contract
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Lease
□ Applicable √ Not applicable
No such cases in the reporting period.
2.Guarantees
√Applicable □Not applicable
（1）Guarantees
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
date/No. of Amount of implementa
Name of the Company (Date of mount of Guarantee type Guarantee term associated
the Guarantee tion
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
The joint
Auto sales mortgage July
150,000 42,510.39 liability No No
customers 14,2018
guaranty
Total of external guarantee
Total of external guarantee
150,000 actually occurred in the 42,510.39
approved in the report term (A1)
report term (A2)
Total of external guarantee Total of external guarantee
approved as of end of report term 150,000 actually occurred as of end 42,510.39
(A3) of report term (A4)
Guarantee of the company for its subsidiaries
Amount of Actual date of
Amount of Actual
guarantee occurring Type of Complete Related
Guarantee provided to the amount of Term
and date of (signing date of guarantee d or not guarantee
guarantee guarantee
disclosure agreements
The joint
June November
Wuhu Optoelectronic 132,000 71,250 liability 96 months No No
20,2013 12,2013
guaranty
The joint
September
Wuhu Optoelectronic 90,000 February 6,2014 41,250 liability 96 months No No
27,2013
guaranty
April The joint
Wuhu Equipment 150,000 October 30,2014 33,000 96 months No No
11,2014 liability
75
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
guaranty
The joint
November December
Wuhu Optoelectronic 52,300 43,341.17 liability 72months No No
18,2016 2,2016
guaranty
The joint
Xuhong January
8,000 February 9,2018 8,000 liability 12months No No
Optoelectronic 11,2018
guaranty
March
Guangxi Sunlong 5,000 0 No No
10,2018
The joint
March
Sunlong Bus 10,000 March 27,2018 7,000 liability 12months No No
10,2018
guaranty
The joint
March
Sunlong Bus 6,000 April 2,2018 3,000 liability 12months No No
10,2018
guaranty
The joint
March
Sunlong Bus 5,000 March 30,2018 5,000 liability 12months No No
27,2018
guaranty
March
Guangxi Sunlong 10,000 0
27,2018
The joint
March
Wuhu Optoelectronic 10,000 March 28,2018 10,000 liability 12months No No
27,2018
guaranty
The joint
March
Wuhu Optoelectronic 10,000 March 27,2018 10,000 liability 12months No No
27,2018
guaranty
The joint
April
Wuhu Optoelectronic 7,000 April 24,2018 5,000 liability 12months No No
14,2018
guaranty
The joint
April
Guangxi Sunlong 4,950 April 28,2018 2,500 liability 12months No No
14,2018
guaranty
The joint
Zhenzhen Xin Ying April
10,000 10,000 liability 12months No No
Tong 14,2018
guaranty
The
The joint guarantee
May
Tunghsu （Kunshan） 38,000 May 14,2018 38,000 liability period is No No
11,2018
guaranty from the date
when the
76
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
pledge right
is established
to the date
when all the
guaranteed
debts under
the Finance
Lease
Contract are
paid off.
The joint
June
Zhengzhou Xufei 5,000 June 29,2018 5,000 liability No No
13,2018
guaranty
The joint
June
Suzhou Tengda 5,000 June 28,2018 2,000 liability No No
13,2018
guaranty
The joint
June
Wuhu Tunghsu 15,000 June 26,2018 15,000 liability No No
16,2018
guaranty
The joint
June
Wuhu Equipment 15,000 June 29,2018 15,000 liability No No
16,2018
guaranty
July
Suzhou Tengda 2,000 0
14,2018
July
Shanghai Sunlong 20,000 0
14,2018
July
Zhengzhou Xufei 20,000 0
14,2018
The joint
July
Tunghsu（Kunshan） 15,000 July 26,2018 4,950 liability No No
14,2018
guaranty
The joint
Shenzhen Xin Ying July
10,000 July 28,2014 10,000 liability No No
Tong 28,2018
guaranty
The joint
July September
Guangxi Sunlong 10,000 5,000 liability No No
28,2018 10,2018
guaranty
The joint
Chongqing August September
2,000 1,000 liability No No
Jinghuateng 4,2018 26,2018
guaranty
Zhengzhou Xufei August 8,000 September 8,000 The joint No No
77
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
31,2018 18,2018 liability
guaranty
The joint
September November
Shanghai Sunlong 4,000 2,000 liability No No
22,2018 5,2018
guaranty
The joint
September September
Jiangsu Jixing 10,000 9,235.07 liability No No
22,2018 30,2018
guaranty
The joint
September September
Zhengzhou Xufei 12,000 12,000 liability No No
22,2018 28,2018
guaranty
The joint
Chongqing September September
2,000 2,000 liability No No
Jinghuateng 22,2018 27,2018
guaranty
The joint
October December
Hunan Tunghsu Delai 12,000 2,000 liability No No
20,2018 19,2018
guaranty
The joint
October November
Guangxi Sunlong 30,000 5,000 liability No No
20,2018 29,2018
guaranty
The joint
October
Jingsu Tunghsu Yitai 2,000 0 liability
20,2018
guaranty
The joint
October
Suzhou Tengda 2,000 October 31,2018 2,000 liability No No
31,2018
guaranty
The joint
Chongqing October November
2,500 2,500 liability No No
Jinghuateng 31,2018 20,2018
guaranty
The joint
October December
Guangxi Sunlong 30,000 11,000 liability No No
31,2018 28,2018
guaranty
The joint
November December
Suzhou Tengda 2,500 2,500 liability No No
24,2018 3,2018
guaranty
The joint
November December
Tunghsu （Kunshan） 30,000 10,000 liability No No
24,2018 11,2018
guaranty
Zhengzhou Xufei December
202,400
Optoelectronic 26,2018
78
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Co., Ltd.,
Sichuan Xuhong
Optoelectronic
Technology Co., Ltd.,
Wuhu Tunghsu
Optoelectronic
Equipment
Technology Co., Ltd.,
Chenzhou Xuhong
Transportation
Construction Co.,Ltd.,
Shenzhen Wuyulunbi
Technology Co., Ltd,
Hunan Tunghsu Delai
Electric Technology
Co., ltd., Chongqing
Jinghuateng
Optoelectronic
Technology and
Fuzhou Xufu
Optoelectronic
Technology Co., Ltd.
The joint
December
Shanghai Sunlong 2,500 0 liability No No
26,2018
guaranty
Total of actual guarantee
Total of guarantee for subsidiaries
594,850 for subsidiaries in the 264,500
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
1,104,150 for subsidiaries at 224,685
approved at Period-end (B3)
Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
The Company’s total guarantee(i.e.total of the first three main items)
79
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Total amount of guarantee
Total guarantee quota approved in actually incurred in the
744,850 307,010.39
the reporting period（A1+B1+C1） reporting period
（A2+B2+C2）
Total balance of the actual
Total guarantee quota already
guarantee at the end of the
approved at the end of the 1,254,150 267,195.39
reporting period
reporting period（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
8.22%
assets of the Company (that is A4+B4+C4）%
Including：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D
The debts guarantee amount provided for the Guaranteed parties
0
whose assets-liability ratio exceed 70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50% (F)
Total guarantee Amount of the abovementioned guarantees
0
（D+E+F）
Explanations on possibly bearing joint and several liquidating
No
responsibilities for undue guarantees (if any)
Explanations on external guarantee against regulated procedures
No
(if any)
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.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
Nil
(2)Situation of Entrusted Loans
□ Applicable √ Not applicable
Nil
4. Other significant contract
□ Applicable √ Not applicable
Nil
80
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
XVIII. Social responsibilities
1. Performance of poverty relieving responsibilities
See the Corporate Social Responsibility Report disclosed by the Company on the same day for details.
2.Overview of the annual targeted poverty alleviation
(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On February 2, 2018, Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to Fuping
County, Hebei Province for free in order to realize clean heating in winter. At the same time, it also donated
200,000 yuan worth of books. This donation is only the first pilot project, and the scope of donation will be
appropriately 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 yuan
and 200,000 yuan worth of books to the central primary school at Gonghui Town, Zhangbei County, Hebei
Province and to center gerocomium at Haojiaying township to help primary school students and widows and
orphans 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 the
company, donated 228,500 yuan to Zhongdang village, which lies at Jiafang Township, Mashan County, Guangxi
Province, so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-stricken
village in Guangxi: reservoir project of drinking water engineering.
4. During the reporting period, Shanghai Sunlong, Jiangsu Jixing and Suzhou Tenda, which are the wholly-owned
subsidiaries of the company, donated 10,000 yuan, 10,000 yuan and 20,000 yuan respectively for poverty
alleviation.
3.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Yes
Main
pollutant Emission Emission Verified
Company or Emissio Implemented Total Excessive
and port concentratio total
subsidiary Emission way n port pollutant emission emission emission
specific distribution n emission
name number standards condition
pollutant condition (mg/Nm3) (Tons)
name
Total
Fuzhou
After the wastewater
Tunghsu Integrated
treatment reaches discharge
Optoelectro Wastewater 3.19T/ye 117.1T/y Not
COD the standard, it 1 outlet in 25mg/L
nic Discharge Standard ar ear exceeded
enters the urban southeast
Technology GB8978-1997
sewage pipe corner of
Co., Ltd.
network plant area
Fuzhou Ammoni 1 Total 6.8mg/L Water quality 0.87T/ye 15.6T/ye
81
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu a wastewater standard for sewage ar ar
Optoelectro Nitrogen discharge to be discharged into
nic outlet in urban sewage drain
Technology southeast CJ-343-2010
Co., Ltd. corner of
plant area
Furnace
exhaust gas:
60-meter
On April
high
28, 2018,
chimney
the
batching
coordinat
particulate
ed
matter in NOX≤700m NOX：
NOX： monitorin
NOX, northwest g/m 82.67ton
82.67ton g of the
SO2, of the plant SO2≤400m s
s/year air
particulat area: g/m /year
After being treated SO2： monitorin
Sichuan e matter crushed Granule SO2：
by dust removal 8.49 g and
Xuhong (melting glass feed (melting Emission Standard of 1.28
system and tons/yea measurin
Optoelectro furnace), particulate furnace) Air Pollutants for tons/yea
denitration 3 r g tube
nic particulat matter on ≤50mg/m Flat Glass Industry r
system, it is Particula showed
Technology e matter batching Particulate (GB26453-2011) Particula
discharged into te that the
Co., Ltd. (ingredie roof in matter te
the atmosphere matter: company'
nts, northwest (batching, matter:
6.23 s glass
broken of the plant broken 2.09
tons/yea furnace
glass) area: 3rd glass)≤30m tons/yea
r emitted
floor of g/m r
742mg/m
crushed
3 of NOX
glass
(emission
feeding
limit: 700
building in
mg/m3
northwest
of the plant
area
1 chimney Flue gas The flue gas of glass
The furnace flue
for the discharge furnace shall be
gas is discharged
Zhengzhou first-stage port of subject to the limit
after being treated
Xufei glass first-stage values in Table 2 of
by a bag filter, and
Optoelectro Nitrogen furnace, 1 furnace: Emission Standard of 10.014t/ Not
the boiler flue gas 5 9.72t/a
nic oxides chimney for 161.3 Air Pollutants for a exceeded
is discharged after
Technology the mg/m3. Flue Electronic Glass
being treated by a
Co., Ltd. second-stag gas Industry
low-nitrogen
e glass discharge (GB29495-2013),
burner
furnace, and port of and the flue gas of
82
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1 chimney second-stag boiler shall be
for each of e furnace: subject to the
the 3 natural 205.7 emission limit values
gas boilers mg/m3. in Table 1 of
Emission Standard of
Air Pollutants for
Boiler
(GB13271-2014)
The flue gas of glass
furnace shall be
1 chimney subject to the limit
for the values in Table 2 of
Flue gas
first-stage Emission Standard of
outlet of
glass Air Pollutants for
first-stage
Zhengzhou furnace, 1 Electronic Glass
furnace: not
Xufei chimney for Industry
detected.
Optoelectro Sulphur the (GB29495-2013), 0.0466t/ Not
5 Flue gas 1.387t/a
nic Dioxide second-stag and the flue gas of a exceeded
outlet of
Technology e glass boiler shall be
second-stag
Co., Ltd. furnace, and subject to the
e furnace:
1 chimney emission limit values
not
for each of in Table 1 of
detected.
the 3 natural Emission Standard of
gas boilers Air Pollutants for
Boiler
(GB13271-2014)
The flue gas of glass
furnace shall be
1 chimney
subject to the limit
for the Flue gas
values in Table 2 of
first-stage discharge
Emission Standard of
glass port of
Air Pollutants for
Zhengzhou furnace, 1 first-stage
Electronic Glass
Xufei chimney for furnace:
Industry
Optoelectro Particula the 8.44mg/m Not
5 (GB29495-2013), 0.827t/a \
nic tes second-stag Flue gas exceeded
and the flue gas of
Technology e glass discharge
boiler shall be
Co., Ltd. furnace, and port of
subject to the
1 chimney second-stag
emission limit values
for each of e furnace:
in Table 1 of
the 3 natural 25.1mg/m
Emission Standard of
gas boilers
Air Pollutants for
Boiler
83
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(GB13271-2014)
The
Zhengzhou Implementation of
company
Xufei the integrated sewage
has set up a
Optoelectro discharge standard Not
COD Domestic 1 total 62.3mg/L 5.02t/a 9.1t/a
nic (GB8978-1996) table exceeded
wastewater is wastewater
Technology 4 secondary
discharged after discharge
Co., Ltd. standards
biochemical port
(AO2) treatment, The
Zhengzhou Implementation of
and production company
Xufei the integrated sewage
Ammoni wastewater is has set up a
Optoelectro discharge standard Not
a discharged after 1 total 0.763mg/L 0.08t/a 0.13t/a
nic (GB8978-1996) table exceeded
Nitrogen wastewater
Technology 4 secondary
discharge
Co., Ltd. standards
port
Tunghsu Grinding Near the Integrated
Wastewa
（Yingkou） wastewater and gate on the Wastewater Wastewa
Wastewa ter
Photoelectri cleaning 1 east side of 6-9 Discharge Standard ter No
ter PH volume
c display wastewater are the plant of Liaoning Province volume
535m3/d
Co., Ltd. respectively area （DB21/1627-2008）
treated by the
Tunghsu Near the Integrated
grinding
（Yingkou） gate on the Wastewater
Wastewa wastewater
Photoelectri 1 east side of 52.07mg/L Discharge Standard 9.93t/a 57.21t/a No
ter COD treatment system
c display the plant of Liaoning Province
and the cleaning
Co., Ltd. area （DB21/1627-2008）
wastewater
Tunghsu Near the Integrated
treatment system,
（Yingkou） gate on the Wastewater
Wastewa and then, together
Photoelectri 1 east side of 28.78mg/L Discharge Standard 5.44t/a 56.71t/a No
ter SS with the domestic
c display the plant of Liaoning Province
wastewater treated
Co., Ltd. area （DB21/1627-2008）
by the oil
Tunghsu separation tank + Near the Integrated
（Yingkou） septic tank, they gate on the Wastewater
Wastewa
Photoelectri are collected into 1 east side of 22.25mg/L Discharge Standard 4.24t/a 47.64t/a No
ter BOD
c display the total the plant of Liaoning Province
Co., Ltd. wastewater area （DB21/1627-2008）
discharge port of
Ammoni
Tunghsu the plant area and Near the Integrated
a
（Yingkou） discharged gate on the Wastewater
nitrogen
Photoelectri through the 1 east side of 1.31mg/L Discharge Standard 0.25t/a 5.73t/a No
in
c display municipal pipe the plant of Liaoning Province
wastewat
Co., Ltd. network of the area （DB21/1627-2008）
er
industrial base to
84
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
the third sewage
treatment plant of
Liaoning
(Yingkou) coastal
industrial base for
further treatment.
Wuhu
Tunghsu Between
Optoelectro plant 101
（SO2） After passing 2 19.5 mg/m SO2≤400 mg/m 1.89 t 4.52 t/a No
nic and plant
through the flue
Technology 202
gas treatment
Co., Ltd.
system, it is
Wuhu
directly
Tunghsu Between
discharged into
Optoelectro plant 101
(NOX) the atmosphere. 2 166 mg/m NOX≤700 mg/m 33.03 t 84.76 t/a No
nic and plant
Technology 202
Co., Ltd.
Wuhu
Tunghsu East side of
Optoelectro After the east gate
(COD) 1 26 mg/L COD≤500 mg/L 40.09 t 42.5 t/a No
nic neutralization, it of the
Technology enters the company
Co., Ltd. Chengdong
Wuhu Sewage Treatment
Tunghsu Plant through East side of
Optoelectro municipal sewage the east gate
(NH3-N) 1 0.979 mg/L / 1.51 t 2.86 t/a No
nic pipe network of the
Technology company
Co., Ltd.
62.442
Tunghsu Wastewater is 36.5tons tons
COD,
（Kunshan discharged to the South side 101.4mgL 0.023ton 0.096
TP, Standards for Class 4
）Display sewage treatment 1 of the plant 0.066 mg/L s tons No
ammonia surface water
Material plant through area 0.238 mg/L 0.085ton
nitrogen
Co., Ltd. pipelines s 0.723ton
s
Tunghsu Organic exhaust DB12/524-2014
Organic The west
（Kunshan gas is treated by Emission Control
exhaust roof of the 10.081to
）Display exhaust gas 1 1.58 mg/m Standard for 0.58 吨 No
gas main plant ns
Material treatment facilities Industrial Enterprises
(TVOC) building
Co., Ltd. and then Volatile Organic
85
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
discharged Compounds
through a 25m
chimney
Organic exhaust
gas is treated by
Tunghsu
Acid exhaust gas The west GB16297-96
（Kunshan
exhaust treatment facilities roof of the Integrated Emission 0.333ton
）Display 1 0.42 mg/m 0.02tons No
gas and then main plant Standard of Air s
Material
(HCL discharged building Pollutants
Co., Ltd.
through a 25m
chimney
Tunghsu 5.62 mg/ m 0.0103 0.231ton
Particula Exhaust gas is The north GB13271-2014
（Kunshan 0.311 tons s0.014
te matter, discharged roof of the Emission Standard of
）Display 1 mg/m 0.006 tons No
SO2, through a 25m main plant Air Pollutants for
Material 45.32 tons0.23 5.361ton
NOx chimney building Boiler
Co., Ltd. mg/m 1tons s
Exhaust gas is
Tunghsu treated by exhaust Refer to
The west
（Kunshan gas treatment GB28665-2012
Alkali roof of the 0.626ton 2.294ton
）Display facilities and then 1 4.83mg/m Emission Standard of No
mist main plant s s
Material discharged Steel Rolling
building
Co., Ltd. through a 25m Industry
chimney
WS-960001
Jiangsu
west side of
Jixing New 5.2446to 22.774to
COD Discharge into the 1 sewage ≤500 HJ/T399-2007 No
Material ns ns
municipal sewage treatment
Co., Ltd.
treatment plant station
through the WS-960001
Jiangsu
sewage pipe west side of
Jixing New 0.4995to 13.002to
SS network 1 sewage ≤150 GB/T11901—1989 No
Material ns ns
treatment
Co., Ltd.
station
Emission
FQ-960001
Discharge into the concentratio
Jiangsu north side
Sulfuric atmosphere n ≤ 100
Jixing New of 0.00216 0.206ton
Acid through alkali mist 1 mg/m3; GB16297-1996 No
Material manufacturi 5tons s
Mist spraying treatment Emission
Co., Ltd. ng
facilities rate
workshop
≤0.26kg/h
Shanghai Wastewa After the Total Integrated Not
1 197mg/L / /
Sunlong ter: treatment reaches wastewater Wastewater exceeded
86
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Bus Chemica the standard, it discharge Discharge Standard
l oxygen enters the urban outlet in (DB31/199-2018)
demand sewage pipe southeast
network corner of
plant area
Total
wastewater
Integrated
Shanghai Wastewa discharge
Wastewater Not
Sunlong ter: Total 1 outlet in 21.93mg/L / /
Discharge Standard exceeded
Bus nitrogen southeast
DB31/199-2018
corner of
plant area
Total
Wastewa
wastewater
ter: Integrated
Shanghai discharge
suspende Wastewater Not
Sunlong 1 outlet in 42.67mg/L / /
d Discharge Standard exceeded
Bus southeast
substanc DB31/199-2018
corner of
e
plant area
Total
wastewater
Wastewa Integrated
Shanghai discharge
ter: Wastewater Not
Sunlong 1 outlet in 2.54mg/L / /
petroleu Discharge Standard exceeded
Bus southeast
m DB31/199-2018
corner of
plant area
Total
wastewater
Wastewa Integrated
Shanghai discharge
ter: Total Wastewater Not
Sunlong 1 outlet in 1.41mg/L / /
phosphor Discharge Standard exceeded
Bus southeast
us DB31/199-2018
corner of
plant area
Exhaust
Emission Standards
gas: When it reaches
of Air Pollutants for
Shanghai volatile the standard after
West of the Automobile Not
Sunlong organic the treatment, it 4 4.33mg/m 39.289 /
plant area Manufacturing exceeded
Bus compoun will be discharged
Industry (Coating)
ds at high altitude
(DB32/859-2014)
(VOCs)
Shanghai Exhaust When it reaches To the west Emission Standard of Not
10 9.545mg/m 0.00134 0.02
Sunlong gas: the standard after of the Air Pollutants for exceeded
87
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Bus sulfur the treatment, it central part Industrial Kiln and
dioxide will be discharged of the plant Furnace
at high altitude area DB31/860-2014
To the west Emission Standard of
Exhaust
Shanghai of the Air Pollutants for
gas: Not
Sunlong 10 central part 13.04mg/mIndustrial Kiln and 0.625 0.84
nitrogen exceeded
Bus of the plant Furnace
oxide
area DB31/860-2014
To the south
Exhaust Integrated Emission
Shanghai of the
gas: Standard of Air Not
Sunlong 11 central part ＜20mg/m 1.001 1.04
welding Pollutants exceeded
Bus of the plant
fumes DB31/933-2015
area
COD:1.
61 tons
Ammoni
a
COD:
Chemica nitrogen:
45mg/L
l oxygen 0.18
There is 1 Ammonia Integrated
demand, tons
total sewage nitrogen: Wastewater
ammonia Toluene:
outlet and 2.66 mg/L Discharge Standard
Guangxi nitrogen, Continuous 0.042
32 31 exhaust Toluene Level 3 Standard; No No
Sunlong pH, Blowdown tons
outlets in 0.215mg/m3 Integrated Emission
toluene, Xylene:
the painting Xylene Standard of Air
xylene, 0.04
workshop 0.5mg/m3 Pollutants
particulat tons
Particulate
e matter Particula
3.2mg/m3
te
matter:
0.384
tons
Wastewater; After Noise:
treatment, it is up to Subject
Wastewa discharged by Integrated standard to the
Wuhu
ter, Wuhu Tunghsu Wastewater Wastewa requirem
Tunghsu
noise, Photovoltaic Meet the Discharge Standard ter: up to ents of
Optoelectro
solid Technology Co., requirement (GB8978-1996) and standard environ
nic / / No
waste Ltd after reaching s and Emisson Standard for after mental
Equipment
(waste the standard; standards Industrial Enterprises treatmen protectio
Technology
cutting Noise: reasonable Noise at Boundary t, solid n
Co., Ltd.
liquid) layout and noise （GB12348-2008） waste standard
reduction (waste s
measures; Solid cutting
88
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
waste: waste liquid):
cutting liquid shall 0.2 tons
be recovered and
treated by a
qualified company
Changqing
Yingtian
Xufu Access to
Gonggu
Optoelectro Domesti municipal sewage Limits for Surface
1 wastewater / 0.4350 0.4350 /
nic c sewage treatment pipe Water
pipe
Technology network
network
Co., Ltd.
Chongqing
Non-met
Jinghuateng
hane Emission standard of
Optoelecron
total Be organized 1 / 60 packaging and / 0.38 No
ic
hydrocar printing industry
Technology
bon
Co., Ltd.
Suzhou
Access to Water quality
Tengda
Domesti municipal sewage standard for sewage
Opotic 1 / / / / /
c sewage treatment pipe to be discharged into
Technology
network urban sewage drain
Co., Ltd.
Hefei
Jinghua Access to Water quality
Optoelectro Domesti municipal sewage standard for sewage
/ / / / / /
nic c sewage treatment pipe to be discharged into
Technology network urban sewage drain
Co., Ltd.
Chengdu Water quality
Directly discharge
Tunghsu Undergroun standard for sewage
Waste to industrial port
Intelligence 4 d water pipe 8mg/L to be discharged into 14t/a 15 t/a No
water sewage pipe
Technology in the park urban sewage drain
network
Co., Ltd. （CJ3082-1999）
Chengdu Integrated Emission
Tunghsu Standard of Air
Production 110 mg/ 120mg/
Intelligence DUST Bag filter 2 1mg/ m Pollutants No
Workshop m m
Technology (GB16297-1996)
Co., Ltd. secondary standards
Chengdu tin and Integrated Emission
Tunghsu its Air extraction and Production Standard of Air 3.3 mg/ 8.5 mg/
2 0.24mg/ m No
Intelligence compoun exhaust system Workshop Pollutants m m
Technology ds (GB16297-1996)
89
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Co., Ltd. secondary standards
Chengdu Emission Standard
Daytime
Tunghsu for Industrial
(65) dB/A 16500 20000
Intelligence NOISE / / In the Zone Enterprises Noise at /
Nightime m/h m/h
Technology Boundary
(55) dB/A
Co., Ltd. (GB12348-2008)
Entrust financial expected to be unable to recover the principal or impairment might be occurred
1.Fuzhou Tunghsu Optoelectronic Co., Ltd.
1. Fuzhou Tunghsu optoelectronic operates normally during the whole year and produces main pollution of
waste water. In 2017, it built the rain and sewage diversion system and waste water treatment station with
designed treatment 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 Rongyuan sewage treatment plant together with pre-treated sanitary sewage by septic tank for
uniform treatment. The waste water treatment station operates normally during the report period and discharges
per standards.
2.Sichuan Xuhong Optoelectronic Technology Co., Ltd.
1)SCR denitration system (1 set)
The company uses natural gas as the fuel for glass production, and the air pollutants produced are mainly
particulates, sulfur dioxide and nitrogen oxides. In 2015, the company spent a lot of money to establish an SCR
denitration system. Untreated furnace flue gas enters the electrostatic precipitator of the denitration system
through the flue. The dedusted flue gas enters the SCR reactor with ammonia water as reductant and V2O5/TiO2
as catalyst. Nitrogen oxides in the flue gas are reduced to N2 and then enter the 60-meter-high chimney through
the outlet flue for emission. In order to ensure that the pollutants discharged by the company reach the standard,
the denitration system operates continuously throughout the year. The denitration system of the company is
equipped with two flue gas induced draft fans (one for use and one for standby), which adopt double-loop power
supply. The operation personnel of denitration treatment facilities are subject to 4 shifts and 3 rotations to ensure
that the operation personnel are on duty 24 hours a day. The operation management shall be carried out strictly in
accordance with the operation procedures, operation instructions and inspection tour operation instructions, and
the operation parameters shall be monitored in real time to ensure the normal operation rate of denitration system
to the greatest extent.
2) Dust removal equipment (13 filter cartridge dust collectors and 1 bag filter)
The company produces a small amount of particulate matter in the process of glass feeding and batching. At
the beginning of the factory in 2011, the company installed filter cartridge dust collectors in all silos, broken glass
feeding systems and kiln head feeding ports of the batching workshop to collect the particulate matter generated in
the feeding and batching process. In order to ensure that the discharged particles reach the standard, in February
2015, the company collected the exhaust cylinders of all silos into a main pipe, and installed a bag filter to carry
out secondary dust removal on the treated residual particles. The dust removal equipment of the company is
operated intermittently. During the gap period, the post personnel clean the filter cartridge and filter bag of the
dust removal equipment and carry out regular maintenance to ensure the normal operation of the dust removal
equipment in the operation process.
3. Zhengzhou Xufei Optoelectronic Technology Co., ltd
1) Invest 1.094 million yuan to implement ultra-low nitrogen renovation on 3 gas boilers (2 10t/h boilers and
1 6t/h boiler), with nitrogen oxide emission concentration lower than 30mg/m3, which has passed the verification
90
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
of Zhengzhou Ecological Environment Bureau.
2) An investment of 790,000 yuan has been invested to install an on-line monitoring system for furnace flue
gas to realize the grid connection with Zhengzhou Ecological Environment Bureau.
3) Environmental protection facilities operate continuously and stably throughout the year. There is no
unplanned shutdown. All pollutants are discharged stably up to standard. No environmental violations occur.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
1) The output of grinding wastewater in this project is 160m3/d, mainly containing SS and wastewater. The
wastewater is collected through pipelines, enters the grinding wastewater equalization tank of the wastewater
treatment station, and is pumped into the grinding wastewater treatment system for treatment. The wastewater is
discharged into the sedimentation tank for coagulation sedimentation after being precipitated by stepped
precipitation tank, and finally discharged into the integrated treatment system for further treatment, and then
discharged into the sewage treatment plant of the industrial base for further treatment through the municipal pipe
network of the industrial base. This project adopts coagulation and sedimentation process to treat grinding
wastewater. The design capacity of the grinding wastewater treatment system is 400 m3/d, and the production
capacity of grinding wastewater in this project is 176m3/d. It is fully capable of treating grinding wastewater
generated in this project.
2) The cleaning wastewater enters the regulating tank, adjusts its PH value for neutralization treatment, and
then is pumped into the sedimentation tank, and is discharged into the total sewage outlet of the plant area after
sedimentation treatment. The treatment capacity of the cleaning wastewater treatment system in this project is 700
m3/d, and the production capacity of the cleaning wastewater in this project is 210 m3/d, which is fully capable of
treating the cleaning wastewater produced in this project.
3) The discharge amount of domestic wastewater in this project is 20 m3/d, including washing, flushing and
canteen drainage. The main pollutants COD, SS, ammonia nitrogen, etc. are designed in the domestic wastewater
treatment system. Oil separation tank+septic tank is adopted for treatment, which has good removal effect on large
suspended solids, animal and plant oil, etc. Septic tank is a common simple biochemical treatment measure for
wastewater. It has good and stable treatment effect on domestic sewage.
4) Three-layer anti-seepage measures are adopted for the production workshop, chemical warehouse and
ground of this project, i.e. the bottom layer shall be paved with not less than 30 cm thick concrete for compaction,
whose top shall be paved with 100mm thick concrete, and then hardened with 200mm thick high-strength
concrete to ensure the permeability coefficient is less than 1x10-7cm/s, and the water treatment structure shall be
constructed with anti-seepage concrete; Each link of drainage is transported by cement or ceramic anti-seepage
pipelines. Except for Green land, the ground of the plant area is all coated with cement plastering anti-seepage
hardening. After the anti-seepage and anti-corrosion measures mentioned above are adopted, the pollution effects
of chemical warehouse and production workshop on groundwater can be effectively prevented.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has a flue gas treatment system, an industrial wastewater treatment station and a septic tank. In
order to ensure the normal operation of pollution prevention facilities, the company has formulated relevant
management systems, explicitly requiring the facility usage and operation departments to regularly maintain and
service the facilities. At present, the company's pollution prevention and control facilities are operating normally
and stably, and the discharge of various pollutants meets the discharge standards.
6. Tunghsu (Kunshan) Display Material Co., Ltd
The company has built a set of volatile organic compounds system, an acid exhaust treatment system, an alkali
exhaust treatment system, a boiler exhaust system, a acid and alkaline wastewater treatment system and an organic
wastewater treatment system. At present, all systems except the volatile organic compounds system are installed
91
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
with automatic monitoring systems and operate normally. Cuerrently, the automatic monitoring system of the
volatile organic compounds system is not perfect, with certain potential safety hazards. At present, the equipment
responsible unit is preparing an automatic control improvement scheme to realize real-time monitoring of
equipment operating parameters. During the scheme improvement period, the on-duty personnel conduct regular
on-site inspections to ensure the normal operation of the equipment.
7. Jiangsu Jixing New Material Co., Ltd
The existing wastewater treatment facilities of Jiangsu Jixing New Material Co., Ltd are operating normally,
with an approved wastewater treatment capacity of 52,030 t/a; The expanded sewage treatment station facility was
put into operation in April with an approved wastewater treatment capacity of 147,037 t/a.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd. operates normally throughout the year. The main pollutants are wastewater,
exhaust gas and hazardous waste. The rain and sewage diversion drainage system was completed in 2008. An
industrial wastewater treatment station was built to mainly treat coating wastewater in the production process,
with a designed treatment capacity of 10 t/h and a physical and biochemical treatment process adopted. All the
production wastewater will be discharged into the municipal sewage pipe network (Yuanshan Road) together with
domestic sewage after reaching the treatment standard and finally into the Bailonggang system. During the
reporting period, the wastewater treatment station operated normally and the discharge reached the standard.
Exhaust gas treatment: organic exhaust gas (VOCs) from spraying and painting is treated by zeolite rotating wheel
+RTO combustion process and then discharged at high altitude; low-concentration organic exhaust gas (VOCs) is
treated by activated carbon adsorption and desorption + catalytic combustion process and discharged at high
altitude after reaching the standard; Online monitoring system (FID) is installed at the discharge port of organic
exhaust gas (VOCs) to monitor the emission value in real time; For particulate matter, welding fumes, etc., filter
core filtration technology is adopted to remove dust, and the dust is discharged at high altitude after reaching the
standard; Facilities that need to be heated in the production process shall be natural gas burners. Through the
ternary internal circulation process, natural gas is efficiently combusted, energy consumption is reduced, and
pollutant emission is reduced.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
1) Construction of pollution prevention and control facilities
Exhaust gas emission and treatment: The coating exhaust gas uses water-filled + activated carbon adsorption
device to control volatile organic compounds, toluene, xylene and other atmospheric pollutants. The purified
exhaust gas is discharged through a 15m high exhaust cylinder. The company has 6 water-filled+activated carbon
adsorption devices; Catalytic combustion device is used to control volatile organic compounds, toluene, xylene
and other air pollutants in the coating and drying waste gas. The purified waste gas is discharged through a 15m
high exhaust cylinder. The company has 3 sets of catalytic combustion device; The putty polishing chamber, glass
fiber reinforced plastic polishing chamber and midway polishing chamber adopt the process of installing bag filter
at the bottom exhaust channel and the top of the air supply to control atmospheric pollutants such as particulate
matters. The collected waste particulate matters after bag filter are respectively discharged through a 15m high
exhaust cylinder. The company has a total of 8 bag dust removal devices. The waste gas from paint makeup is
controlled by activated carbon adsorption devices to control volatile organic compounds, particulate matters and
other atmospheric pollutants. The company has 8 sets of activated carbon adsorption devices, and the purified
waste gas is discharged through a 15m high exhaust cylinder.
Wastewater discharge and treatment: the company's wastewater mainly consists of domestic wastewater, rain
test wastewater and coating circulating wastewater, among which the rain test wastewater is discharged every six
months and the coating circulating wastewater is discharged every quarter, the domestic wastewater is treated by
92
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
septic tank and mixed with the production wastewater, then enters the plant sewage treatment station for treatment
and then is discharged to Wuxiang sewage treatment through municipal sewage pipe network for further treatment.
The plant sewage treatment station mainly adopts the process of oil isolation +UASB anaerobic+biological
contact oxidation.
Noise treatment: reasonable layout of high-noise equipment and noise control measures such as sound
insulation, sound absorption and vibration reduction.
Solid waste treatment: the solid wastes generated by the company mainly include general solid wastes such as
paper skins and cartons, and hazardous wastes such as paint residues and waste organic solvents, among which,
paint residues and other hazardous wastes are entrusted to CECEP (Guangxi) CleanTech Development Co., Ltd.,
which has a hazardous waste management license, for disposal.
2) Operation
In 2018, the company's environmental protection equipment and facilities operated continuously, reliably and
stably, regular pollutant monitoring was carried out, and the requirements of the national environmental protection
emission standard were implemented strictly, to ensure that all kinds of pollutants reach the standard for emission.
10. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd
Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the workshop,
1. Air pollution prevention and control measures: through strengthening the ventilation and exhaust in the
workshop, at the same time, through the barrier of the workshop, it basically falls inside the workshop; 2.
Measures for prevention and control of wastewater pollution: Before domestic wastewater is discharged into the
pipeline of Wuhu Tunghsu Optoelectronic Technology Co., Ltd.. and Wuhu Tunghsu Optoelectronic Technology
Co., Ltd. takes over Chengdong Sewage Treatment Plant, and it meets the discharge standard after being treated
by buried sewage treatment facilities; 3. Noise pollution prevention and control measures: low-noise and
high-performance equipment shall be selected, and measures such as foundation construction, wall barrier and
greening barrier shall be taken for these noise sources; 4. Prevention and control measures for solid waste
pollution: general solid waste is comprehensively utilized, waste cutting liquid is entrusted to a qualified unit
(Maanshan Guandong Lubricating Oil Co., Ltd.) for recycling, and domestic waste is handed over to the sanitation
department for treatment.
11. Chongqing Xufuda Optoelectronic Technology Co., Ltd
Water pollution: the existing 2# biochemical pool of Yingtian Liangjiang industrial valley standard plant
building project is used to treat and discharge the municipal sewage pipe network in the park. The domestic
sewage in the plant area is connected to the municipal sewage treatment pipe network, and the domestic sewage is
discharged up to the standard.
12. Chongqing Jinghuateng Optoelectronic Technology Co., Ltd
Solid waste: after centralized collection of domestic waste, it shall be uniformly treated by the district sanitation
department. It is strictly prohibited to dump and stack waste at will. Domestic waste shall be cleared every day.
Solid wastes shall be treated in strict accordance with relevant regulations without causing secondary pollution.
13. Chengdu Tunghsu Intelligent Technology Co., Ltd
1) Wastewater: All kinds of wastewater can meet the requirements of Grade III standard of Integrated
Wastewater Discharge Standard (GB8978-1996) after being treated by corresponding measures. Wastewater is
discharged into the sewage pipe network of the park from the main discharge port, and enters Qingshui River after
being treated by Chengdu Cooperative Sewage Treatment Plant, and an obvious signboard is set at the main
discharge port.
2) Exhaust gas: Solder smoke is collected through the exhaust system provided by welding equipment above
each area, and finally collected by a 20-meter-high exhaust cylinder and directly discharged, after which, it can
93
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
meet the Grade II standard of Integrated Emission Standard of Air Pollutants (GB16297-1996).
3) Noise: Reasonable arrangement of sound sources; Low noise equipment is adopted in the selection; Most of
the noise equipment is installed in a closed plant building; Evolutionary exhaust system.
Environmental impact assessment of construction projects and other administrative permission for environmental
protection
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company strictly implements the environmental impact assessment system and "Three Simultaneities" system,
and the construction project is legal and compliant. The project was approved by Fuqing Environmental
Protection Bureau in September 2016.
2. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company's "PDP Glass Substrate Project" and "10 million m2 of High-strength and Ultra-thin Display
Cover Glass Project" compiled environment impact report form and obtained EIA approval. The two projects
passed EIA acceptance in 2015 and 2017 respectively. Our company obtained the new sewage permit in 2017 and
2012. In 2018, it strictly carried out sewage discharge and various environmental management according to the
requirements of the new sewage permit.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
EIA for Phase I of the project: on August 16, 2009, the Henan Environmental Protection Department passed
the Reply of Henan Environmental Protection Department on the Environmental Impact Report of TFT-LCD
Glass Substrate Production Line of Zhengzhou Xufei Photoelectric Technology Co., Ltd (YHS [2009] No. 295),
and on February 24, 2011, the Henan Environmental Protection Department passed the Opinions on
Environmental Protection Acceptance for the completion of TFT-LCD Glass Substrate Production Line Project of
Zhengzhou Xufei Optoelectronic Technology Co., Ltd (YHPY [2011] No. 12).
EIA for Phase II of the roject: On November 2, 2010, Henan Environmental Protection Department approved
the Reply of Henan Provincial Environmental Protection Department on the Environmental Impact Report of
Zhengzhou Xufei Photoelectric Technology Co., Ltd. on the Project of Annual Output of 2.2 Million sq.m. Liquid
Crystal Glass Substrate Production Line (YHS [2010] No. 251), and on February 28, 2014, Henan Environmental
Protection Department approved the Reply of Zhengzhou Xufei Optoelectronic Technology Co., Ltd. on the
Application for Completion of Environmental Protection Acceptance of the Project of Annual Output of 2.2
Million sq.m. Liquid Crystal Glass Substrate Production Line (YHS [2014] No. 77).
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
The environmental impact report was approved in February 2012, and the processing environmental protection
acceptance was completed in March 2018. It is qualified upon acceptance.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company's environmental impact assessment and other environmental protection administrative licenses
are shown in the following table:
Time Environmental impact assessment and other environmental protection administrative permits
November 2011 Anhui Environmental Science Research Institute has compiled and completed the Environmental Impact
Report of Wuhu Tunghsu optoelectronic Technology Co., Ltd. Display Glass Substrate Production Line Project.
December 2011 Anhui Provincial Environmental Protection Department approved the project with EIA Letter [2011] No. 1283
Reply on Environmental Impact Report of Wuhu Tunghsu Optoelectronic Technology Co., Ltd. Display Glass
Substrate Production Line Project.
March 2012 Anhui Environmental Science Research Institute has compiled the Environmental Impact Report of Changes to
Flat Panel Display Glass Substrate Production Line Project of Wuhu Tunghsu optoelectronic Technology Co.,
94
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.
March 2012 Anhui Environmental Protection Department approved the change of EIA for the project with EIA Letter
[2012] No 298 Letter on the Review Opinions of Environmental Impact Report of Wuhu Tunghsu
Optoelectronic Technology Co., Ltd Flat Panel Display Glass Substrate Production Line Project.
April 2014 The Anhui Environmental Protection Department approved the Letter of Anhui Environmental Protection
Department on approving the phased trial production of Wuhu Tunghsu Optoelectronic Technology Co., Ltd
Flat Panel Display Glass Substrate Production Line Project (WHH [2014] No. 472) and approved the phased
trial production of the project.
June 2015 Through the 1-4 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.
October 2017 Through the 5-8 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.
December 2018 Through the 9-10 line G6 liquid crystal (TFT-LCD) glass substrate production line completed environmental
protection stage acceptance.
6. Tunghsu (Kunshan) Display Material Co., Ltd
The examination and approval opinions of the environmental impact report of the construction project were
obtained in July 2015. Currently, the environmental protection Three Simultaneities acceptance operation is
underway. The expert review of the environmental impact assessment Three Simultaneities acceptance will be
completed in February 2019. In the preparation of the Three Simultaneities acceptance report, the publicity is
expected to be completed by the end of March 2019. Currently, due to hazardous waste problems (if the waste
developer and concentrated waste liquid with high concentration of nitrogen do not conform to the contents of the
environmental impact report, it needs to be disposed of outside the contract according to the requirements of the
environmental impact report, with records kept), for the overal acceptance part, the acceptance data cannot be
submitted to the Environmental Protection Bureau. Currently, the application for outsourcing disposal of waste
developer and concentrated waste liquid containing high concentration nitrogen has been submitted. The
outsourcing disposal is expected to be completed in April during the purchasing contract negotiation.
7. Jiangsu Jixing New Material Co., Ltd
Jiangsu Jixing New Material Co., Ltd has obtained the approval of Yangzhong Municipal Environmental
Protection Bureau for the new project of producing 2.6 million large-size Micro-LED sapphire intelligent
production lines annually, with the approval document number of YHS [2018] No. 64.
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd. strictly implements the environmental impact assessment system and Three
Simultaneities system, and the construction project is legal and compliant. The project was approved for
completion and acceptance by Shanghai Minhang District Environmental Protection Bureau (MHBGXY [2009]
No. 041) in January 2009.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
Nanning Yuanzheng All-aluminum New Energy Automobile Production Base Project was approved by Guangxi
Environmental Protection Bureau on October 22, 2015 with the approval document number of GHS [2015]
No.175. The project completed the environmental protection completion acceptance on March 27, 2018 with the
completion acceptance document number of GHS [2018] No.45.
10. Wuhu Tunghsu optoelectronic Equipment Technology Co., Ltd
1) Before the construction of the project, a third party unit shall be entrusted to prepare the environmental
impact assessment report and file it through Wuhu Environmental Protection Bureau (document No.: HH [2013]
No.156).
95
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
2) Accepted by Wuhu Environmental Protection Bureau (document No: HY [2016] No.190).
11.Suzhou Tengda Optical Technology Co., Ltd.
Wuhuanjian{2013}No.632
12.Chongqing Fuda Optoelectronic Technology Co., Ltd.
Yu（Liangjiang）HZ［2018］No.090
13.Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Yu（Liangjiang）HZ{2017No.}240
14.Hefei Jinghuateng Optoelecrronic Technology Co., Ltd.
FDJSZD{2016}No.248
15.Chengdu Tunghsu Intelligent Technology Co., Ltd.
Documents such as enterprise investment project filing notice (PF Project No.2011-119), request for instructions
on environmental standards (PH No.2011-88), approval of environmental standards (CHJF No.2011-204), review
opinions on environmental impact report (CHJP 2009-406), etc.
Emergency response plan of emergency environmental event
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company commissioned a qualified third party to prepare the Plan for Environmental Emergencies of Fuzhou
Tunghsu optoelectronic Technology Co., Ltd. and regularly organize and carry out training and drills of the plan to
effectively improve the enterprises' emergency response capability and disposal capability to environmental
pollution emergencies.
2. Sichuan Xuhong Optoelectronic Technology Co., Ltd.
There are natural gas, hydrogen, liquefied petroleum gas, diesel and other risk substances in the company, so in
December 2015, the company organized and formulated the Plan for Environmental Emergencies and submitted it
to Mianyang Environmental Protection Bureau for filing. In 2019, our company will apply to Mianyang
Environmental Protection Bureau to carry out "revision, review and filing of the plan for environmental
emergencies" according to relevant management requirements.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
The company has emergency plans for hazardous waste accidents, environmental anormaly for wastewater
discharge, radiation sources and abnormal exhaust emissions.
4. Tunghsu (Yingkou)Optoelectronic Display Co., Ltd.
The company has a sound environmental emergency plan, which mainly includes: environmental pollution
incidents caused by leakage of hazardous waste storage devices, leakage of natural gas and diesel oil, fire and
explosion accidents in the plant area; Noise, ingredient dust, outflow of hazardous chemicals, environmental
pollution events caused by radiation source leakage and other environmental pollution events caused by force
majeure.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
According to the relevant requirements of the Emergency Response Law of the People's Republic of China,
Wuhu Tunghsu Optoelectronic Technology Co., Ltd. has compiled the Plan for Environmental Emergencies of
Wuhu Tunghsu Optoelectronic Technology Co., Ltd. in accordance with the Risk Classification Method for
Environmental Emergencies of Enterprises and in combination with the actual situation of Wuhu Tunghsu
Optelectronic Technology Co., Ltd., which describes the emergency rescue principles, emergency rescue
procedures and emergency rescue measures for environmental emergencies of the company, and is a
programmatic document and operational guideline for guiding the emergency management of environmental
emergencies of the company. The plan was reported to Wuhu Environmental Protection Bureau for filing in
November 2015 (for the record: 340207-2015-016-L). After three years, it was reported to Wuhu Environmental
96
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Protection Bureau for filing again in September 2018 as required (for the record: 340207-2018-044-L).
6. Tunghsu (Kunshan) Display Material Co., Ltd
The company completed the environmental emergency plan report in July 2018, completed the expert review and
final report revision in August, and obtained the emergency plan filing approval on September 14.
7. Jiangsu Jixing New Material Co., Ltd
Jiangsu Jixing New Material Co., Ltd entrusted a third party to prepare and file the Comprehensive Plan for
Environmental Emergencies in 2017. The number of the emergency plan is JSJX-YA-2017001 and the version
number of the emergency plan is 2017 (1).
8. Shanghai Sunlong Bus Co. Ltd
Shanghai Sunlong Bus Co., Ltd.'s Plan for Environmental Emergencies of Shanghai Sunlong Bus Co., Ltd. has
been filed for environmental protection (Filing No.: 3102212018043), and regular training and drills of the plan
have been organized to effectively improve the enterprises' emergency response and disposal capabilities to
environmental pollution emergencies.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
On November 2, 2017, the company entrusted Guangxi Gaobiao Monitoring Co., Ltd. to prepare a plan for
environmental emergencies. The report was prepared on January 21, 2018 and passed the expert group review. On
May 22, 2018, Yongning District Environmental Protection Bureau completed the filing of the plan for
environmental emergencies of Guangxi Sunlong Automobile Manufacturing Co., Ltd. with the filing number of
450109-2018-0002-m.
10. Suzhou Tengda Optical Technology Co., Ltd., Chongqing Xufuda Optoelectronic Technology Co., Ltd.,
Chongqing Jinghuateng Optoelectronic Technology Co., Ltd., Hefei Jinghuateng Optoelectronic Technology Co.,
Ltd.
The above subsidiaries have formulated the corresponding Emergency Plan Management System and have
trained all employees and publicized the emergency plan team members.
11. Chengdu Tunghsu Intelligent Technology Co., Ltd
Chengdu Tunghsu Intelligent Technology Co., Ltd. adheres to the principle of "clean production, emission up to
standard and total amount control", formulates feasible pollution prevention and control measures, establishes and
improves the environmental system, formulates environmental management formulation, defines the main
responsibilities of the management organization, analyzes the environmental risks, and collects public
participation opinions, which can fully meet the requirements of national and local environmental protection laws
and standards.
Environmental self-monitoring plan
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
The company strictly abides by national and local laws, regulations and relevant provisions, and entrusts Fujian
Tuopu Detection Technology Co., Ltd. to carry out monthly detection of the company's wastewater, quarterly
detection of the company's noise, and timely log on to its own monitoring website every month to upload data and
information such as detection results.
2. Sichuan Xuhong Optoelectronic Technical Co.,Ltd
According to the national environmental protection management requirements, the company has prepared a
self-monitoring plan for the environment. The company has installed a flue gas on-line analyzer to carry out
on-line monitoring of the major pollutants nitrogen oxides, sulfur dioxide and particulate matter in furnace flue
gas and upload the monitoring data to the national environmental protection platform in real time. For the smoke
blackness, hydrogen chloride, fluoride and ingredient particles that cannot be monitored online, a third party
organization is entrusted to carry out manual monitoring every quarter. For the particulate matter and ammonia
97
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
emitted by the factory without organization, a third party organization is entrusted to carry out manual monitoring
every six months. All monitoring data are uploaded to the monitoring iInformation disclosure platform of national
key monitoring enterprise pollution source.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
The company has an on-line waste gas monitoring system, which tests waste gas manually once a month and is
outsourced for test once a year; There is an online monitoring system for wastewater, which tests the wastewater
manually once a day and is outsourced for test once a year.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
1) The management of solid wastes and hazardous wastes is strengthened, relevant management systems are
formulated and ledgers are established, the whereabouts of wastes are strictly controlled, and wastes are disposed
according to national standards.
2) The wastewater station is equipped with wastewater online monitoring and dosing equipment to monitor
the pH value of wastewater in real time; In the morning and evening, the pH value of wastewater from the total
sewage outlet is monitored manually to ensure that the wastewater discharge reaches the standard.
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd
The company has 1 set of waste water on-line monitoring system and 1 set of flue gas on-line monitoring system
for plant 101 and 202 respectively. The monitoring data are uploaded to the municipal environmental monitoring
platform in real time. In addition, the company entrusts a qualified third-party environmental monitoring agency
to carry out quarterly and annual monitoring of the company's plant environment every year and requires the
monitoring agency to provide monitoring reports. Monitoring items include: monitoring of domestic sewage,
production wastewater, unorganized waste gas, organized waste gas and noise. The company judges whether
relevant environmental indicators meet relevant environmental protection requirements according to monitoring
results. So far, the company's emissions of various pollutants have not exceeded the standard.
6. Tunghsu (Kunshan) Display Material Co., Ltd
The wastewater discharge port is provided with automatic monitoring equipment for COD, TP, ammonia
nitrogen and flow rate, and the online monitoring equipment is all networked with the Environmental Protection
Bureau to monitor the wastewater discharge status in real time to ensure the discharge reaching the standard; All
exhaust gas treatment systems except the volatile organic compounds system are equipped with automatic
monitoring measures to monitor the running status of the treatment device in real time. Qualified third-party units
are entrusted to carry out exhaust gas emission testing every year to ensure the standard emission. Currently, there
is no automatic monitoring system in the volatile organic compounds system and there are certain potential safety
hazards. At present, the equipment responsible unit is preparing an automatic control improvement plan. During
this period, the personnel on duty will conduct regular on-site inspections to ensure the normal operation of the
equipment.
7. Jiangsu Jixing New Material Co., Ltd
Hardware facilities: In addition to the PH real-time monitoring equipment installed in the sewage treatment
station of Jiangsu Jixing New Material Co., Ltd, 2 sets of PH real-time monitoring equipment, 1 set of COD
on-line monitoring equipment, 1 set of PLC system that stops discharging when exceeding the standard, and 1 set
of real-time data transmission system for sewage treatment are also installed on the sewage discharge pipeline.
Software facilities: Jiangsu Jixing New Material Co., Ltd entrusts a third party to regularly monitor the treatment
of wastewater and exhaust gas, and entrusts a real-time monitoring equipment maintenance unit to regularly
maintain and check environmental protection equipment.
8. Shanghai Sunlong Bus Co. Ltd
98
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shanghai Sunlong Bus Co., Ltd. strictly abides by national and local laws, regulations and relevant provisions,
and entrusts ICAS Testing Technology Services (Shanghai) Co., Ltd. to carry out quarterly testing of wastewater,
exhaust gas and noise as required. It regularly logs on the environmental protection census platform and the
environmental statistics business system to upload data and information such as testing results.
9. Guangxi Sunlong Automobile Manufacturing Co., Ltd
Currently, the company is entrusting a third-party qualification unit to carry out emission permit application and
environmental self-monitoring plan preparation.
10. Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd
As Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu Tunghsu Optoelectronic
Technology Co., Ltd. are located in a park, and the rain and sewage pipelines in the park are managed by Wuhu
Tunghsu Optoelectronic Technology Co., Ltd. with the environmental self-detection scheme adopted. The
company will regularly carry out noise detection and wastewater detection, and Wuhu Tunghsu Optoelectronic
Technology Co., Ltd. will supervise the company.
11. Suzhou Tengda Optical Technology Co., Ltd., Chongqing Xufuda Optoelectronic Technology Co., Ltd.,
Chongqing Jinghuateng Optoelectronic Technology Co., Ltd., Hefei Jinghuateng Optoelectronic Technology Co.,
Ltd.
1) Strengthen the management of "Three Simultaneities" of the project to ensure the construction of
environmental protection facilities.
2) Regularly maintain and service mechanical equipment to prevent environmental pollution caused by
equipment failure.
3) Strengthen the operation and management of various pollutant treatment facilities to ensure that pollutants
meet the standards for discharge.
4) Carry out domestic sewage discharge inspection every year, and arrange a third party to carry out noise
and workshop environment inspection.
12. Chengdu Tunghsu Intelligent Technology Co., Ltd
1) Self-monitoring plan of the enterprise: since the company does not have an independent sewage treatment
station, the management committee provides unified assistance for treatment, and since there is no independent
monitoring equipment and facilities for waste gas and noise, manual instruments are usually used for monitoring.
2) Commissioned monitoring: Since the company does not have the expertise to monitor exhaust gas and
noise, the qualification testing company (Sichuan Jiuhe Evaluation Company) is invited to conduct annual
workplace hazard factor testing, and issue a written testing report, which shall be filed with the system and
management committee.
Other environmental information to be disclosed
1. Fuzhou Tunghsu Optoelectronic Technology Co., Ltd
1) The environmental self-monitoring information disclosure website of Fuzhou Tunghsu Optoelectronicc
Technology Co., Ltd.:
http://wryfb.fjemc.org.cn/page0.aspx?id=CLDICBRK-37EH-9PYO-8M63-F288U13S89W8
2) The environmental protection acceptance information public website of Fuzhou Tunghsu Optoelectronicc
Technology Co., Ltd.: http://114.251.10.205/#/pub-message
2. Sichuan Xuhong Optoelectronic Technology Co.,Ltd
The company publicized the acquisition of the company's environmental protection administrative licensing
procedures, pollution discharge information, solid waste management, environmental risks and monitoring
information on the environmental credit evaluation website.
3. Zhengzhou Xufei Optoelectronic Technology co., ltd
99
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Environmental protection credit information management system for enterprises and institutions in Henan
province, and environmental information disclosure system in Henan province.
4. Tunghsu (Yingkou) Optoelectronic Display Co., Ltd.
The environmental impact assessment platform of the company's construction project is available
athttp://114.251.10.205/#/pub-message
5. Wuhu Tunghsu Optoelectronic Technology Co., Ltd.
1) The company's construction of EIA and acceptance are publicized in the EIA information platform of
construction project (http://114.251.10.205/#/pub-message).
2) Use Wechat Public Account to publicize relevant environmental protection information of the company.
6. Tunghsu (Kunshan) Display Material Co., Ltd
At present, the environmental protection Three Simultaneities acceptance is being carried out. The acceptance
report and the acceptance data are being compiled by the manufacturer. After completion, it is expected to be
published on Kunshan website in China at the end of March.
7. Jiangsu Jixing New Material Co., Ltd
Website of EIA report form full publication for sapphire intelligent production line: http://www.212200.com
8. Shanghai Sunlong Bus Co. Ltd
The company's unit name, unified social credit code, legal representative, production address, main contents of
production and operation, products and scale, dosage of raw and auxiliary materials and other basic information,
the construction and operation of public pollution prevention facilities, the names of major pollutants and
characteristic pollutants, their emission methods, number and distribution of emission ports, emission
concentration, and environmental protection data pollution such as pollutant emission standards implemented are
released on the environmental information disclosure platform of enterprises and institutions.
9. Chengdu Tunghsu Intelligent Technology Co., Ltd
In February 2019, Chengdu Tunghsu Intelligent Technology Co., Ltd has carried out a hazard factor test in the
workplace and issued a written test report. The test contents include noise, benzene, toluene, xylene, dust, tin and
their compounds. The company has invested a lot of money and adopted advanced treatment systems for
wastewater, exhaust gas, noise and risk control, which shows that the company attaches great importance to
environmental protection, and is consistent with the company's image as a green environmental protection
industry.
Other information related to environmental protection
Hazardous Waste Pollutants from Shanghai Sunlong Bus Co., Ltd
Name of the Names of major and Disposal Storage place Production Executive Output in 2018 Disposal Inventory
Company or its characteristic mode distribution Standards (tons) Rate (ton)
subsidiary pollutants (ton)
Shanghai Sunlong 900-252-12 Commissio Temporary Painting / 21.66 23 15
Bus Co., Ltd. 900-252-12 ned by a storage room workshop, 5.87 5.31 2.74
900-014-13 qualified for hazardous assembly 6.6 4.8 4.85
third party wastes workshop,
900-041-49 40.21 43.12 1.89
for commissio
900-041-49 1.3 0 1.3
disposal ning
900-218-08 0.4 0 0.4
workshop
900-041-49 5.55 0 5.55
900-041-49 2.25 0 2.25
100
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
XIX. Explanation on other significant events
□ Applicable √ Not applicable
Nil
XX. Material issues of the subsidiaries
□ Applicable √ Not applicable
VI. Change of share capital and shareholding of Principal Shareholders
1. Changes in share capital
1.Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Share Bon Capitaliz Other Subtotal Quantity Proportion
n allotm us ation of
ent shar common
es reserve
fund
1.Shares with
conditional 1,385,624,525 24.18% -769,529,722 -769,529,722 616,094,803 10.75%
subscription
2. State-owned legal
60,389,095 1.05% -60,389,095 -60,389,095
person shares
3.Other domestic
1,325,235,430 23.13% -709,140,627 -709,140,627 616,094,803 10.75%
shares
Incl：Domestic legal
1,323,974,680 23.11% -709,140,627 -709,140,627 614,834,053 10.73%
person shares
Domestic Natural
1,260,750 0.02% 1,260,750 0.02%
Person shares
II.Shares with
unconditional 4,344,625,593 75.82% 769,529,722 769,529,722 5,114,155,315 89.25%
subscription
1.Common shares in
4,094,625,592 71.46% 769,529,722 769,529,722 4,864,155,314 84.89%
RMB
2.Foreign shares in
250,000,001 4.36% 250,000,001 4.36%
domestic market
III. Total of capital
5,730,250,118 100.00% 5,730,250,118 100.00%
shares
Reasons for share changed
101
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
□ 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 to
common 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 security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In Shares
Number
of
Number of Restricted
Increased
Initial Restricted Unrestricted Shares in the Reason for Restricted Date of Restriction
Shareholder Name Restricted
Shares Shares This End of the Shares Removal
Shares
Term Term
This
Term
439,882,687 shares
will be released on
December
19,2018；
106,326,446 shares
Non-public issue
Tunghsu Group 791,889,488 439,882,697 352,006,791 will be released on
restricted shares of 2015
November
30,2020；
245,680,345 shares
will be released on
December 29,2020.
Tunghsu Optoelectronic
Non-public issue
Technology Co., Ltd.－ 72,639,296 72,639,296 0 December 19,2018
restricted shares of 2015
The first ESOP
Kunshan Development
Zone State-owned Non-public issue
43,988,269 43,988,269 0 December 19,2018
Investment Holding Co., restricted shares of 2015
Ltd.
Beijing Yingfei Hailin 29,325,513 29,325,513 0 Non-public issue December 19,2018
102
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Investment Center restricted shares of 2015
(Limited Partnership)
Shanghai Changjiang
Wealth & Asset
Management Co., Ltd.
－China Merchants Non-public issue
8,005,865 8,005,865 0 December 19,2018
Bank－Changjiang restricted shares of 2015
Wealth －Tunghsu
No.1 Special Asset
Management Plan
In 2017, shares were
issued and cash was paid
Shanghai Huimao
to purchase assets, and
Enterprise Management 262,626,262 262,626,262 November 30,2020
matching funds and
Co., Ltd.
related transactions were
raised
In 2017, shares were
Minsheng Royal Fund
issued and cash was paid
Management Co., Ltd－
to purchase assets, and
-Ping An Bank-Daye 97,192,224 97,192,224 0 December 29,2018
matching funds and
TrustZengli 2 single
related transactions were
Fund Trust
raised
In 2017, shares were
Beixin Ruifeng Fund－
issued and cash was paid
China Merchants Bank
to purchase assets, and
－Daye Trust－Daye 62,095,032 62,095,032 0 December 29,2018
matching funds and
TrustProfit increase 3
related transactions were
single fund plan
raised
In 2017, shares were
Mianyang Technology issued and cash was paid
City Development to purchase assets, and
11,380,165 11,380,165 0 December 29,2018
Investment （Group） matching funds and
Co., Ltd. related transactions were
raised
In 2017, shares were
issued and cash was paid
Sichuan Changhong to purchase assets, and
5,020,661 5,020,661 0 December 29,2018
Elec Co.,Ltd matching funds and
related transactions were
raised
The 40 Shareholders Equity incentive and top Repurchase
1,260,750 1,260,750
Awarded Stock management locking cancellation of
103
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Incentive shares share incentive
object after
dismission or
repurchase
cancellation for
failure to meet the
unlocking
conditions
When the relevant
shareholders
entrust the
The 9 Non-agency Before the first offering,
company to handle
Restricted Shareholders 201,000 201,000 institutional shareholders
the business of
before the First Issue restricted from sales
lifting the
restrictions on the
sale of shares
Total 1,385,624,525 769,529,722 0 616,094,803 -- --
II.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
III.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
number Total
Total
of shareholders
preferred share
commo at the end of The total number of prefer holders at the
n the month red shareholders voting ri end of the
month from the
sharehol 350,362 from the 357,676 ghts restored at period-en 0 0
date of
ders at date of d disclosing the
the end disclosing (if any)(See Notes 8) annual report(if
the annual any)(See Notes
of the
8)
reportin report
g period
104
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Particulars about shares held above 5% by shareholders or top ten shareholders
Proporti Number of share
Changes
on of Number of Amount of Amount of pledged/frozen
Shareholders Nature of in
shares shares held at restricted un-restricted
shareholder reporting State of
held period -end shares held shares held Amount
period share
（%）
Domestic 915,064,091
Non
352,006,79
Tunghsu Group -State-owne 15.97% 563,057,300 Pledge 799,643,042
1
d legal
person
Domestic 332,382,171
Shijiazhuang
Non
Baoshi
-State-owne 5.80% 332,382,171 Pledge 153,520,000
Electronic
d legal
Group Co., Ltd.
person
Shanghai Domestic 262,626,262
Huimao Non
262,626,26
Enterprise -State-owne 4.58% 0 Pledge 80,240,722
2
Management d legal
Co., Ltd. person
Minsheng Royal 97,192,224 97,192,224
Fund
Management
Co., Ltd－-Ping
Other 1.70%
An Bank-Daye
TrustZengli 2
single Fund
Trust
Domestic 83,341,345 83,341,345
Qianhai equity
Non
investment fund
-State-owne 1.45%
(limited
d legal
partnership)
person
Tunghsu 72,639,296 72,639,296
Optoelectronic
Technology Co., Other 1.27%
Ltd.－The first
ESOP
Beixin Ruifeng 1.27% 62,095,032 62,095,032
Fund－China
Other
Merchants Bank
－Daye Trust－
105
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Daye
TrustProfit
increase 3 single
fund plan
Shenzhen Domestic 1.07% 61,165,682 61,165,682
Taianer Non
Information -State-owne Pledge 55,265,682
Technology Co., d legal
Ltd. person
Zhonghai Trust 0.92% 52,555,280 52,555,280
Co., Ltd. －
Zhonghai Trust
－ Tunghsu Other
Optoelectronic
ESOP pooled
Fund trust
China Life AMP 0.85% 48,619,336 48,619,336
Asset
Management
Co., Ltd. －
Bohai Bank －
Minsheng Trust
－ China
Other
Minsheng
Trust-Zhicheng
No.192 Tunghsu
Optoelectronic
Private
placement fund
trust plan
Among the top 10 shareholders, Shenzhen Taianer Information Technology Co., Ltd., Qianhai Equity
Investment Fund(Limited Partnership), China Life AMP Asset Management Co., Ltd.－Bohai Bank－
Minsheng Trust－China Minsheng Trust-Zhicheng No.192 Tunghsu Optoelectronic Private placement
fund trust plan became the top 10 shareholders of the company by participating in the subscription of the
company's non-public share issuance in 2016-and the sale-restricted period for those shares held is 12
months, that is, from August 26, 2016 to August 25, 2017. Among the top 10 shareholders, Shanghai
Strategy investors or general
Huimao Enterprise Management Co., Ltd, Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye Trust
legal person becomes top 10
Zengli No.2 Single Fund Trust, and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye Trust
shareholders due to rights
Zengli No.3 Single Fund Plan became the top 10 shareholders of the company by participating in the
issued (if applicable)（See Notes
subscription of shares of the company's 2017 Non-public Share Issuance and Paying Cash to Purchase
3）
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.
Among the top ten shareholders , Tunghsu Group and Baoshi Group have relationship and constitute
Explanation on shareholders
persons taking concerted action. The company does not know whether there is relationship between other
participating in the margin
8 shareholders or whether they are persons taking concerted action defined in Administrative Measures
trading business
Relating to Acquisitions of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
106
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Share type
Quantity of unrestricted shares held at the end of the reporting period
Name of the shareholder Share
(Note 4) Quantity
type
RMB
Tunghsu Group 563,057,300 Commo 563,057,300
n shares
Shijiazhuang Baoshi Electronic RMB
332,382,171 Commo 332,382,171
Group Co., Ltd.
n shares
Minsheng Royal Fund
Management Co., Ltd－-Ping RMB
97,192,224 Commo 97,192,224
An Bank-Daye TrustZengli 2
n shares
single Fund Trust
RMB
Qianhai equity investment fund
83,341,345 Commo 83,341,345
(limited partnership)
n shares
Tunghsu Optoelectronic RMB
Technology Co., Ltd.－The first 72,639,296 Commo 72,639,296
ESOP n shares
Beixin Ruifeng Fund－China
Merchants Bank－Daye Trust RMB
62,095,032 Commo 62,095,032
－Daye TrustProfit increase 3
n shares
single fund plan
Shenzhen Taianer Information RMB
61,165,682 Commo 61,165,682
Technology Co., Ltd.
n shares
Zhonghai Trust Co., Ltd. －
RMB
Zhonghai Trust － Tunghsu
52,555,280 Commo 52,555,280
Optoelectronic ESOP pooled
n shares
Fund trust
China Life AMP Asset
Management Co., Ltd.－Bohai
Bank－Minsheng Trust－China RMB
Minsheng Trust-Zhicheng 48,619,336 Commo 48,619,336
No.192 Tunghsu Optoelectronic n shares
Private placement fund trust
plan
Kunshan Development Zone RMB
State-owned Investment 43,988,269 Commo 43,988,269
Holding Co., Ltd. n shares
Explanation on associated
relationship or consistent action
among the top 10 shareholders
The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co., Ltd. and the top ten shareh
of non-restricted negotiable
olders of Tunghsu Group Co., Ltd. have relationship and constitute persons taking concerted action.
shares and that between the top
10 shareholders of
non-restricted negotiable shares
107
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
and top 10 shareholders
Notes to the shareholders
involved in financing securities Not applicable
(if any)(See Notes 4)
Whether the top 10 ordinary shareholders of the company and the top 10 ordinary shareholders with unlimited
terms of sale shall conduct the agreed repurchase transaction during the reporting period
2、Type of Controlling Shareholders: Legal person
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
Investing projects with owned
funds; Development of mechanical
equipment and electronic
products; Productions and process
formulation of various
non-standard equipment and
components; Process and sales of
component for abrasive materials
and electromechanical products(no
equipment of public security);
Import and export of self-run and
agent goods and technology;
Computer system integration ;
Tunghsu Group Co., Ltd. Li Zhaoting November 5,2004 91130100768130363K
Software development;
Technology consulting;
Installation and engineering
consulting of electromechanical
device(no pre-licensing projects
included above). (Operation is
allowed only if being within the
confines of the above laws and
regulations and the matters
forbidden or restricted by the State
Council; Operation is allowed
once the matters are examined and
approved by other departments.
The equity of the controlling 1. As of December 31, 2018, Tunghsu Group holds 579.68 million shares of Tunghsu Lantian New Energy
shareholder in other domestic Co., Ltd. (forescout: Tunghsu Lantian, stock code: 000040), accounting for 38.99% of the total share
and foreign listed companies capital of the company. 2. As of December 31, 2018, Tunghsu Group directly holds 35.7488 million shares
108
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
held or partly held by it in the of Shanghai Challenge Textile Co., Ltd. (forescout: Challenge, stock code: 002468), accounting for 4.30%
report period of the total share capital of the company; Indirectly holds 163.19 million shares of Challenge through
Shanghai Guojun Investment Co., Ltd., accounting for 19.61% of the total share capital of the company; At
the same time, it has the voting rights corresponding to 25.35 million shares of Challenge through the way
of entrusted exercise of voting rights, accounting for 3.045% of the total share capital of the company;
Tunghsu Group holds voting rights corresponding to 224.29 million shares of Challenge, accounting for
26.96% of the total share capital of the company.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controller nature：Domestic natural person
Actual controller type：Natural person
Relationship with the Whether to obtain the right of abode in other
Name of actual controllers Nationality
actual controller countries or regions
Li Zhaoting Self Chinese No
Mr. Li Zhaoting，Chinese, born in 1965，graduated from Hebei University of Technology as
a mechanical engineering major, senior engineer, member of the Communist Party of China
and the founder of Tunghsu Group. Li has served successively as the general manager
Main occupations and duties assistant and vice-general manager of Shijiazhuang Diesel Engine Factory, and Chairman of
Hebei Tunghsu Investment Group Co., Ltd. Li is now the chairman of Tunghsu Group and
Tunghsu Photoelectric Investment, general manager of COE, and the vice chairman as well
as general manager of Chengdu COE.
1. As of December 31, 2018, Tunghsu Group holds 579.68 million shares of Tunghsu Lantian
New Energy Co., Ltd. (forescout: Tunghsu Lantian, stock code: 000040), accounting for
38.99% of the total share capital of the company. 2. As of December 31, 2018, Tunghsu
Group directly holds 35.7488 million shares of Shanghai Challenge Textile Co., Ltd.
Situation of domestic and abroad (forescout: Challenge, stock code: 002468), accounting for 4.30% of the total share capital of
holding listed companies in the part the company; Indirectly holds 163.19 million shares of Challenge through Shanghai Guojun
10 years Investment Co., Ltd., accounting for 19.61% of the total share capital of the company; At the
same time, it has the voting rights corresponding to 25.35 million shares of Challenge
through the way of entrusted exercise of voting rights, accounting for 3.045% of the total
share capital of the company; Tunghsu Group holds voting rights corresponding to 224.29
million shares of Challenge, accounting for 26.96% of the total share capital of the company.
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
Block Diagram of the ownership and control relations between the company and the actual controller
109
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Other corporate shareholder holding over 10% of the Company’s shares
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
No preference shares in the Company.
110
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
Expiry held at increased decreased held at
Office Starting date changes
Name Positions Sex Age date of the at the at the the
status of tenure increase/d
tenure year-begi reporting reporting year-gain(
ecrease
n(share) period(sh period(sh share)
are) are)
Wang Board August
In office Male 51 0 0 0 0 0
Lipeng chairman 3,2018
Zhang Independ
July
Shuangca ent In office Male 57 0 0 0 0 0
29,2013
i director
Independ
Lu May
ent In office Male 50 0 0 0 0 0
Guihua 19,2014
director
Independ
Han July
ent In office Male 55 0 0 0 0 0
Zhiguo 28,2016
director
Guo August
Director In office Male 53 0 0 0 0 0
Xuan 20,2018
Zhou August
Director In office Male 38 0 0 0 0 0
Yongjie 20,2018
Wang August
Director In office Female 42 0 0 0 0 0
Zhong 20,2018
Chairman
of the
Guo superviso July
In office Male 39 0 0 0 0 0
Chunlin ry 28,2016
committe
e
Xu Superviso July
In office Female 52 0 0 0 0 0
Lingzhi r 28,2016
Chen Superviso July
In office Male 55 0 0 0 0 0
Dewei r 28,2016
Xie Superviso
In office Male 41 July 8,2016 0 0 0 0 0
Juwen r
111
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Wan Superviso
In office Female 33 July 8,2016 0 0 0 0 0
Huanhuan r
Board April
Gong Xin In office Female 39 100,000 0 0 0 100,000
secretary 20,2015
Feng July
CFO In office Female 41 0 0 0 0 0
Qiuju 27,2018
Deputy
Wang July
General In office Male 53 0 0 0 0 0
Jianqiang 28,2016
Manager
Deputy
Liu July
General In office Male 48 125,000 0 0 0 125,000
Wentai 28,2016
Manager
Deputy
Wang July
General In office Male 54 0 0 0 0 0
Junming 28,2016
Manager
April
Li Board November
Dimission Male 53 25,201
Zhaoting chairman 30,2011
8
Board April August
Wu Jiwei Dimission Male 48
chairman 25,2018 3,2018
July
Huang April
CFO Dimission Male 39 27,201
Jinliang 28,2017
8
Decem
Deputy
Wang July ber
General Dimission Male 41
Zhonghui 28,2016 21,201
Manager
8
Total -- -- -- -- -- -- 225,000 0 0 0 225,000
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Li Zhaoting Board chairman Dimission April 25,2018 Job change
Wu Jiwei Board chairman Dimission August 3,2018 Personal reasons
Huang Jinliang CFO Dimission July 27,2018 Job change
Gong Xin Director Engaged August 3,2018 Company talent strategy adjustment
112
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
III.Posts holding
The professional background, working experience and main responsibilities of the current board members,
supervisors and senior managers in the company
1. Mr. Wang Lipeng, Chinese nationality, was born in 1968, master's degree of Tianjin University. Beginning to
work in 1989, he had served as the factory director of the electron gun factory of Shijiazhuang Baoshi Electronics
Group Co., Ltd, the general manager of Shijiazhuang Bao Dong Electronics Co., Ltd, the director and the general
manager of Shijiazhuang Baoshi Electronic Glass Co., Ltd, the director of chairman office of Tunghsu Group Co.,
Ltd, the general manager of Sichuan Xu Hong Optoelectronics Technology Co., Ltd.and Tunghsu
(Kunshan)Display Material Co., Ltd.
2. Mr.Guo Xuan, Chinese, was born in 1966, Bachelor degree,Senior Engineer, He had served as Deputy General
Manager of Shijiazhuang Tractor Plant,Currently, he serves as as director and vice president of Tunghsu Group ,
he has served as Director of Tunghsu Optoelectronic Investment Co., Ltd., director of the Company.
3.Mr. Zhou Yongjie graduated from Renmin University of China. He started work in 2007 and served as deputy
general manager and director of the office of Beijing Chengjian Building Materials Industry Co., Ltd, secretary of
the chairman and director of the office of Ocasia Investment Group Co., Ltd, and currently is the vice president
and director of the chairman office of the Tunghsu Group.
4. Ms. Wang Zhong, Master Degree, Chinese Academy of Sciences. She entered the work force in October 1999
and joined the Communist Party of China (CPC) in April 1998. She previously served as the Deputy Director of
Human Resources of Beijing Huaqi Information (Aigo) Technology Co., Ltd., the Administrative Director of
Human Resources of Gome Online, the General Manager Assistant and Administrative Director, the
Administrative Director of Human Resources of (Gome) Beijing Dazhong and the Administrative Director of
Human Resources of (Gome) Zhongguancun Technology Group. She is currently the Senior Vice President of
Tunghsu Group and the Executive Vice President of Tunghsu Capital.
5.Mr. Zhang Shuangcai, Chinese Nationality, born in 1961, PhD in Management, Business Administration
postdoctoral, Democratic National Construction Association. He serves as Associate Dean School of Management,
Hebei University business professor, World Economic doctoral tutor, accounting, business management
professional master tutor. He used to be Baoding CPPCC Standing Committee, representative of 11th People's
Congress of Hebei Province. Now he is the representative of 12th People's Congress of Hebei Province,
Executive director of the Institute of Hebei Province in budget management, deputy director of the private Center
for Economic Research of Hebei Province, Accounting association executive director, executive director of
Private Entrepreneur Association of Hebei Province, director of the Private Economic and Financial Committee of
Hebei Province, committee member of National Central Economic Committee, independent director of Lekai film
Co., Ltd. ,Boshen tools Co., Ltd. , Tianwei Baobian Electrical Co., Ltd.and Huida Bathroom Co., Ltd..
6.Mr. Lu Guihua, male, born in May 1968, Dr. Accounting, Applied Economics postdoctoral, Central University
of Finance and Economics Professor of Accounting, Master Instructor, Chinese Certified Public Accountant. For
mer Tianjin University associate professor, associate professor at the Central University of Finance and professor
at the Central University of Finance and Economics, master's and doctoral tutor. ow is Independent Director of
Hanvon Technology Co., Ltd., China Minsheng Investment Corp., Ltd., Hebei Iron and Steel Co., Ltd. and the
company.
7. Mr. Han Zhiguo, Chinese nationality, was born in 1964, bachelor degree, lawyer of Hebei Dianfan Law Firm.
He had served as the teacher of Hebei Vocational College of Politics and Law, and the lawyer of Hebei Zhengchen
Law Firm. From September 2006 to September 2013, he had been served as the independent director of
113
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shijiazhuang Baoshi Electronic Glass Co., Ltd. Since August 2013, he has been served as the independent director
of Bosun Tools Co., Ltd and the independent director of the company.
8. Mr. Guo Chunlin, Chinese nationality, was born in 1980, bachelor degree in law. He began to work in 2004.
From September 2004 to November 2005, he had been served for Beijing Zhongfu Law Firm; from November
2005 to October 2007, he taught at Communication University of China. He joined Tunghsu Group Co. Ltd in
October 2007, and now he is one of the supervisors of Tunghsu Group Co. Ltd.
9. Ms. Xu Lingzhi, Chinese nationality, was born in 1967, bachelor degree in accounting. She began to work in
1988 and joined Tunghsu Group Co. Ltd in 2006. Currently, she serves as the director of financial center of
Tunghsu Group Co. Ltd and the general manager and supervisor of risk-control center of board-office headquarter
of Tunghsu Group Co. Ltd.
10.Mr. Chen Dewei, Chinese nationality, was born in 1964, college degree. Currently, he serves as the general
manager and supervisor of the management center ofTunghsu Group Co., Ltd.
11.Mr. Xie Juwen, was born in June 1977, master degree, professional in project management of Beijing
University of Technology. He had served as the R & D Engineer and the project leader of Beiren Group, the
project leader and other posts of Sheet-folding Machine Branch of Beiren Group. Currently, he serves as the
project manager of comprehensive office of the company and the employee-representative supervisor of the
company’s eighth board of supervisors.
12.Ms. Wan Huanhuan, was born in July 1985, bachelor degree, professional in accounting of Industrial and
Commercial University of Chongqing. She had served as the audit manager of Sino Railway Information Group
Co., Ltd, the business manager of Jiangsu Huaxing Certified Public Accountants and the business specialist of
Shenzhen JunZhiYuan Certified Public Accountants. Currently, she serves as the audit manager of the company’s
audit supervision department and the employee-representative supervisor of the company’s eighth board of
supervisors.
13.Mr. Wang Jianqiang, Chinese nationality, was born in 1964, university degree, graduated from mechanical
specialty of Hebei University of Science and Technology. He had served for Shijiazhuang Baoshi Electronics
Group Co., Ltd and had served as the supervisor of the company’s seventh session board of supervisors. Currently,
he serves as the chairman of Fuzhou Tunghsu Optoelectronic Technology Co., Ltd which is the company’s 8.5
generation glass substrate project company.
14. Mr. Liu Wentai, Chinese nationality, born in 1969, graduated from chemical-mechanical professional of
Qingdao Institute of Chemical Industry, bachelor's degree. He had served as the workshop equipment supervisor
of Shijiazhuang Baoshi Electronics Group Co., Ltd, equipment supervisor of maintenance and engineering
department of Shijiazhuang Baoshi Electric Nitrate Co., Ltd, the director of liquid crystal glass research institute
of Tunghsu Group Co., Ltd, the general manger of the thermal engineering department, the vice president of
Tunghsu Group with a concurrent post of purchasing director. Currently, he serves as the company’s vice-general
manager and is responsible for the company’s whole sets of equipment and technical services .
15.Mr. Wang Junming, Chinese nationality, was born in 1964, master of Beijing Jiaotong University. He had
served as the vice-general manager of Henan Anfei Electronic Glass Co. Ltd and the general manager of
Zhengzhou Xufei Optoelectronic Technology Co. Ltd. Currently, he serves as Deputy General Manager of the
Company.
16. Ms.Gong Xin, Nationality: Chinese, born in 1979, bachelor degree. She once worked in Capital Edge
Investment and Management as Project Manager of Investment-banking Department, Assistant to Chairman, Vice
General Manager and etc. Now Gong is Chief of Securities Department, Company Direcotr and Board Secretary
of the company.
17. Ms. Feng Qiuju, graduated from Hunan University with a Bachelor Degree in Accounting, Chinese Certified
114
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Public Accountant. She has served as Financial Controller of Beijing Top Green Grass Co., Ltd., Financial
Controller of China Century Holding Group Co., Ltd., General Manager and Assistant President (Financial Risk
Management) of Financial Management Center of Tunghsu Group Subsidiary, and currently Office taking in
shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharing date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Executive
Guo Xuan Tunghsu Group Vice Yes
president
Executive
Zhou Yongjie Tunghsu Group Vice Yes
president
Executive
Wang Zhong Tunghsu Group Vice Yes
president
Guo Chunlin Tunghsu Group Supervisor Yes
General
manager and
Xu Lingzhi Tunghsu Group supervisor of Yes
risk control
center
General
manager and
supervisor of
the
Chen Dewei Tunghsu Group Yes
comprehensiv
e
management
center
Offices taken in other organizations
√Applicable □Not applicable
Whether
receiving
Office term Office term
Name Name of other units Position remuneration
start from ended
from other units
or not
Wang Lipeng Tunghsu (Kunshan)Display Material Co., Board No
115
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd. chairman
Sichuan Xuhong Optoelectronic Technology Board
Wang Lipeng No
Co., Ltd. chairman
Zhengzhou Xufei Optoelectronic Board
Wang Lipeng No
Technology Co., Ltd. chairman
Wang Lipeng Shijiazhuang Baodong Electric Co., Ltd. Director No
Zhang Baoding Tianwei Baocheng Electric Co.,
Director No
Shuangcai Ltd.
Zhang Hebei Construction Industry Group Co.,
Director No
Shuangcai Ltd.
Zhang Hebei Laishui Rural Commercial Bank Co.,
Director No
Shuangcai Ltd.
Zhang Baoding Tianwei Baocheng Electric Co.,
Director No
Shuangcai Ltd.
Zhang Qingdao Topscomm Communication Independent
No
Shuangcai Co., Ltd director
Lu Guihua HBIS CO., lTD. Director No
Lu Guihua Minsheng Holding Co., Ltd. Director No
Independent
Lu Guihua BEZ Group No
director
Independent
Han Zhiguo Bosun Tools Co., Ltd. No
director
Guo Xuan Tunghsu Group Director No
Guo Xuan Tibet Xuri Capital Management Co., Ltd. Supervisor No
Executive
Guo Xuan Tunghsu Construction Group director, No
Manager
Executive
Hebei Xubao Construction Installation
Guo Xuan director, No
Engineering Co., Ltd.
Manager
Shijiazhuang Tunghsu Energy Saving
Guo Xuan Supervisor No
Technology Co., Ltd.
Executive
Tianjing Xuri Zhongtian Technology Co.,
Guo Xuan director, No
Ltd.
Manager
Tunghsu Optoelectronic Investment Co.,
Guo Xuan Director No
Ltd.
Guo Xuan China optoelectronic Technology Co.,Ltd. Supervisor No
116
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Zhongda Chengxin International Board
Guo Xuan No
Commercial Factoring Co., Ltd. chairman
Board
Tunghsu International Investment Group chairman,
Guo Xuan No
Co., Ltd. General
Manager
Tunghsu Rugao High-end Intelligent
Board
Guo Xuan Manufacturing Industry Investment No
chairman
Management Co., Ltd.
Guo Xuan Chengdu Taiyisi Technology Co., Ltd. Supervisor No
Shijiazhuang Tunghsu Medical Equipment
Guo Xuan Supervisor No
Co., Ltd.
Guangdong Tunghsu Real Estate
Guo Xuan Supervisor No
Development Co., Ltd.
Yuanan Tunghsu Sun New Energy Executive
Guo Xuan No
Technology Co., Ltd. director
Huizhou Tunghsu Bay Area Industry Executive
Zhou Yongjie No
Investment Co., Ltd. director
Shenzhen Xuheng Dongcheng Investment General
Zhou Yongjie No
Consulting Co., Ltd. Manager
Executive
Huizhou Xuhong Hongsheng Industry
Zhou Yongjie director, No
Investment Co., Ltd.
Manager
Executive
Huizhou Xuchanglong Industry Investment
Zhou Yongjie director, No
Co., Ltd.
Manager
Zhou Yongjie Tunghsu Group Vice president No
Executive
Wang Zhong Beijing Tunghsu Capital Holding Co., Ltd. No
vice president
Senior Vice
Wang Zhong Tunghsu Group No
president
Guo Chunlin Beijing Xinghua Trade Co., Ltd. Supervisor No
Beijing Tunghsu Investment Development
Guo Chunlin Supervisor No
Co., Ltd.
Huarong Metal Surface treatment (Anping)
Guo Chunlin Supervisor No
Technology Co., Ltd.
Guo Chunlin Shanghai Guojun Investment Co., Ltd. Supervisor No
Rizhao Tunghsu Guoshan New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
117
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shijiazhuang Tunghsu Optoelectronic
Guo Chunlin Supervisor No
Equipment Technology Co., Ltd.
Lixian Xuxiang New Energy Development
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Shanxi Guoshan New Energy Co., Ltd. Supervisor No
Guangdong Tunghsu Qinhuang New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Guo Chunlin Tunghsu International Investment Co., Ltd. Supervisor No
Xuxiu Intelligent Technology (Shanghai)
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Baofeng Xuyang New Energy Co., Ltd. Supervisor No
Guo Chunlin Nenjiang Quantum new energy co., Ltd. Supervisor No
Guo Chunlin Tahe Xuyang New Energy Co., Ltd. Supervisor No
Guo Chunlin Ezhou Xuyang New Energy Co., Ltd. Supervisor No
Baishui Xusheng New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Shanxi Xuhui Photovoltaic Electric Co.,
Guo Chunlin Supervisor No
Ltd.
Guo Chunlin Lufeng Xuneng New Energy Co., Ltd. Supervisor No
Dongying Jian Photovoltaic Electric Co.,
Guo Chunlin Supervisor No
Ltd.
Dongying Hekou Xufei Photovoltaic Power
Guo Chunlin Supervisor No
Generation Co., Ltd.
Dongying Xufeng New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Xuteng new energy Co., Ltd Supervisor No
Qingshuihe Xuxin New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Licheng Xuli New Energy Technology Co.,
Guo Chunlin Supervisor No
Ltd.
Guo Chunlin Yixian Yixu New Energy Co., Ltd. Supervisor No
Pingshan Xulan New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Changling Jiyuan New Energy Co., Ltd. Supervisor No
Qulan Yicai New Energy Technology Co.,
Guo Chunlin Supervisor No
Ltd.
Guo Chunlin Lushan Tunghsu New Energy Technology Supervisor No
118
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Co., Ltd.
Guo Chunlin Lushan Xulan New Energy Co., Ltd. Supervisor No
Huaiyang Xuneng Agriculture Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Huaiyang Xuyang New Energy Co., Ltd. Supervisor No
Tunghsu International Investment Group
Guo Chunlin Director No
Co., Ltd.
Qichuan Xuchun Solar Energy
Guo Chunlin Supervisor No
Development Co., Ltd.
Guo Chunlin Tunghsu Group Supervisor No
Henan Taihuang New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Xuanhua Chengtu Solar Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Wuhan Taihuang New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Shandan Danxu New Energy Development
Guo Chunlin Supervisor No
Co., Ltd.
Tangshan Caofeidian Xuyuan New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Guo Chunlin Pingliang Quantum New Energy Co., Ltd. Supervisor No
Hunan Tunghsu Taihuang New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Shandong Donge Chengxing New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Yixing Hongji New Energy Technology Co.,
Guo Chunlin Supervisor No
Ltd.
Hubei Taiquan New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Woyang Xuyang New Energy Co., Ltd. Supervisor No
Yingkou Xuying New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Yuexi Xukun New Energy Technology Co.,
Guo Chunlin Supervisor No
Ltd.
Guo Chunlin Minle Zhongsheng New Energy Co., Ltd. Supervisor No
Zhangjiakou Haojing New Energy
Guo Chunlin Supervisor No
Development Co., Ltd.
Guo Chunlin Baoding Tianji New Energy Technology Supervisor No
119
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Co., Ltd.
Huili Hongkun New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Gaotai Huisheng New Energy Co., Ltd. Supervisor No
Huangmei Guoxu New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Jinxian Quantum New Energy Co., Ltd. Supervisor No
Hainan Tunghsu Taihuang New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Anhui Taiquan New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Chengdu Xurong New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Pingding Quantum Photovoltaic Power
Guo Chunlin Supervisor No
Generation Co., Ltd.
Kunming Tunghsu Qiming Investment
Guo Chunlin Supervisor No
Development Co., Ltd.
Guangshui Hongji New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guixi Quantum New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Puyang Tunghsu New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Linqu Chengri New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Huangmei Tunghsu New Energy
Guo Chunlin Supervisor No
Technology Co., Ltd.
Eerduosi Xuyuan New Energy Development
Guo Chunlin Supervisor No
Co., Ltd.
Gonghe Hongji New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Mianyang Xuri New Energy Co., Ltd. Supervisor No
Youxian Xutai New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Zhaluteqi Tongbeo Lantian New Energy
Guo Chunlin Supervisor No
Co., Ltd.
Xiantao Taiquan New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
120
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Quyang Zhengxu Photovoltaic Power
Guo Chunlin Supervisor No
Generation Co., Ltd.
Wuan Yanyan Photovoltaic Power
Guo Chunlin Supervisor No
Generation Co., Ltd.
Laiyuan Xuxi New Energy Technology Co.,
Guo Chunlin Supervisor No
Ltd.
Caling Xuheng New Energy Technology
Guo Chunlin Supervisor No
Co., Ltd.
Guo Chunlin Fengyang Xuyang New Energy Co., Ltd. Supervisor No
Guo Chunlin Qixian Xulan New Energy Co., Ltd. Supervisor No
Xuanhua Chengji Solar Energy Technology
Guo Chunlin Supervisor No
Co., ltd.
Xu lingzhi Beijing Kelinsibei Technology Co., Ltd. Supervisor No
Xu Lingzhi Tunghsu Technology Development Co., Ltd. Supervisor No
Xu lingzhi Tunghsu Technology Group Co., Ltd. Supervisor No
Beijing Tunghsu Investment Development
Xu Lingzhi Supervisor No
Co., Ltd.
Xu Lingzhi Beijing Xufeng Real Estate Co., Ltd. Supervisor No
Beijing Nanlide New Energy Technology
Xu Lingzhi Supervisor No
Co., Ltd.
Beijing Yunzhikang Information
Xu Lingzhi Supervisor No
Technology Co., Ltd.
Hebei Xubao Construction Installation
Xu Lingzhi Supervisor No
Engineering Co., Ltd.
Shijiazhuang Tunghsu Optoelectronic
Xu Lingzhi Supervisor No
Equipment Technology Co., Ltd.
Xu Lingzhi Dalian Xuchang Technology Co., Ltd. Supervisor No
Xu Lingzhi Wuhan Zhongkai Technology Co., Ltd. Supervisor No
Fuzhou Tunghsu Optoelectronic Technology
Xu Lingzhi Supervisor No
Co., Ltd.
Tunghsu International Investment Group
Xu Lingzhi Supervisor No
Co., Ltd.
Huiyin Gold Control Asset Management
Xu Lingzhi Supervisor No
Co., Ltd.
Shijiazhuang Jinshun Environmental
Xu Lingzhi Supervisor No
Protection Co., Ltd.
Fuzhou Xufu Optoelectronic Technology
Xu Lingzhi Supervisor No
Co., Ltd.
121
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Chongqing Xufuda Optoelectronic
Xu Lingzhi Supervisor No
Technology Co., Ltd.
Xu Lingzhi Tunghsu Group Supervisor No
Chairman of
Beijing Tunghsu Investment Development the
Chen Dewei No
Co., Ltd. supervisory
committee
ChenDewei Tunghsu Group Supervisor Yes
Wan Huanhuan Tunghsu Group Finance Co., Ltd. Supervisor No
Wuhu Tunghsu Optoelectronic Technology
Wang Jianqiang Director No
Co., Ltd.
Liaotong Xutong Solar Energy Technology
Wang Jianqiang Director No
Co., Ltd.
Tunghsu (Yingkou) Optoelectronic Display
Wang Jianqiang Director No
Co., Ltd.
Wuhan Tunghsu Optoelectronic Technology
Wang Jianqiang Director No
Co., Ltd.
Wang Jianqiang Mudanjiang Xuyang Technology Co., Ltd. Director No
Jinzhou Xulong New Energy Technology
Wang Jianqiang Director No
Co., Ltd.
Executive
Fuzhou Tunghsu Optoelectronic Technology director and
Wang Jianqiang No
Co., Ltd. General
Manager
Fuzhou Xufu Optoelectronic Technology Board
Wang Jianqiang No
Co., Ltd. chairman
Executive
Anhui Xuan Optoelectronic Technology director and
Wang Jianqiang No
Co., Ltd. General
Manager
Shenzhen Sanbao Innovation Intelligence Board
Wang Jianqiang No
Co., Ltd. chairman
Fuzhou Tunghsu Investment Development Executive
Wang Jianqiang No
Co., Ltd. director
Executive
Chongqing Jinghuateng Optoelectronic director and
Wang Jianqiang No
Technology Co., Ltd. General
Manager
Wang Jianqiang Dalian Sihai Da Tong guiding equipment Manager No
122
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Co., Ltd.
Executive
Jiangsu Tunghsu Yitai Intelligent Equipment director and
Wang Jianqiang No
Co., Ltd. General
Manager
Board
Wang Jianqiang Suzhou Tengda Optical Technology Co.,Ltd. No
chairman
Executive
Zhejiang Xuheng Yongxin Intelligent
Wang Jianqiang director and No
Science and Technology Co., Ltd.
Manager
Chongqing Xufu Optoelectronic Technology Executive
Wang Jianqiang No
Co., Ltd. director
Wuhu Tunghsu Optoelectronic Equipment Board
Liu Wentai No
Technology Co., Ltd. chairman
Beijing Tunghsu Investment Development
Liu Wentai Director No
Co., Ltd.
Director and
Zhengzhou Xufei Optoelectronic
Wang Junming General No
Technology Co., Ltd.
Manager
Board
Shanghai Tanyuan Huigu New Material
Wang Junming chairman, No
Technology Co., Ltd.
Manager
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives in the reporting period
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The payments for the company board directors, supervisors and senior managers are determined on the salary
management system. The annual payments (including basic wages, bonus, allowance, subsidy, welfare expense
and insurance premium, housing accumulation funds and other pretax net payments paid by the company) paid to
board directors, supervisors and senior managers in 2018 are all based on the salary standard administration
related to the job responsibilities, performance appraisal and salary level of the corresponding post. During the
report period, the salaries for board directors, supervisors and senior managers have been paid monthly.
Remuneration to directors, supervisors and senior executives in the reporting period
In 10，000 yuan
Total Whether to get
Name Positions Sex Age Office status remuneration paid in the
received from the company related
123
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Company party
Li Zhaoting Board chairman Male 51 In Office 142.56 No
Independent
Zhang Shuangcai Male 57 In Office 5 No
Director
Independent
Lu Guihua Male 50 In Office 5 No
Director
Independent
Han Zhiguo Male 55 In Office 5 No
Director
Guo Xuan Director Male 52 In office Yes
Zhou Yongjie Director Male 37 In office Yes
Wang Zhong Director Female 42 In office Yes
Chairman of the
Guo Chunlin supervisory Male 38 In office Yes
committee
Xu Lingzhi Supervisor Female 51 In office Yes
Chen Dewei Supervisor Male 54 In office Yes
Xie Juwen Supervisor Male 41 In office 39 No
Wan Huanhuan Supervisor Female 33 In office 36.72 No
Director/Board
Gong Xin Female 39 In office 126 No
secretary
Feng Qiuju CFO Female 41 In office 72 No
Deputy General
Wang Jianqiang Male 54 In office 99 No
Manager
Deputy General
Liu Wentai Male 49 In office 84 No
Manager
Deputy General
Wang Junming Male 54 In office 73.2 No
Manager
Li Zhaoting Board chairman Male 53 Dimission Yes
Wu Jiwei Board chairman Male 47 Dimission Yes
Huang Jinliang CFO Male 39 Dimission No
Deputy General
Wang Zhonghui Male 40 Dimission 130 No
Manager
Total -- -- -- -- 817.48 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable √ Not applicable
124
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
V. Particulars about employees.
（1）Particulars about employees.
Number of in-service staff of the parent company(person) 141
Number of in-service staff of the main subsidiaries(person) 8,465
The total number of the in-service staff(person) 8,606
The total number of staff receiving remuneration in the current 8,606
period(person)
Retired staff with charges paid by the parent company and main 0
subsidiaries (person)
Professional
Category Number of persons（person）
Production
2,689
Sales
934
Tech
3,563
Finance
259
Administration
1,161
Total 8,606
Education
Category Number of persons（person）
Doctor 8
Master 264
Bachelor degree 2,891
Below college diploma 5,443
Total 8,606
2. Remuneration policies
To keep fair to all employees and competitive in business circles and more importantly to inspire employees,
we stick to a principle "payment closely matches value of job position, employee’s performance and operation,
development and change of performance of the company itself" and stick to another principle "High responsibility,
high requirement, high payment" based on the company’s fact. In addition, payment inclines to core job positions
and core talents. Make short-term, medium-term and long-term incentive plans. Short-term incentives mainly
include payment (annual pay) and profit sharing. Medium-term incentives include equity subscription and option
subscription. Long-term incentives include employee stock ownership plan and partnership.
125
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
3.Training plan
1. Employment training for recruiters: one training is taken per month. Professional learning of recruiters
shall be not less than 2h.
2. Management cadre team (leadership) training: Based on different levels of leadership and expected goals,
provide training for senior management personnel and middle management personnel, enhance the operating
philosophy of senior management personnel, and improve the overall quality of middle management personnel.
3. (Professional) training for ready-to-be professionals: provide professional training for ready-to-be
professionals. Professional learning shall be not less than 2h. Build "Tunghsu School" and "Tunghsu Posthouse".
4. (Profession Enhancement) training of performance improvement: based on management and profession
channels, provide sub-channel and systematic training separately. Train and reserve administrative personnel to
make performance of company achievable and push the implementation of strategy.
4.Outsourcing situation
□ Applicable √ No Applicable
126
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
IX. Administrative structure
I. General situation
The company adheres to honest operation, standard operation and performs obligation of information
disclose required in Company Law, Securities Law, Rule of Stock Exchange Listing in Shenzhen Stock Exchange
and Guideline on Standard Operation of Listing Companies on Main Board in Shenzhen Stock Exchange and
other laws and regulations as well as related standard files in order to ensure fairness, timeliness and accuracy of
information disclosure.
Based on standard files on listing companies issued by China Securities Regulatory Commission, the
company constantly adjusts and improves its organizations to ensure completeness, independence and
standardization of organizations. Core management organization is composed of general meeting of shareholders,
Board of Directors, Board of Supervisors and administrative personnel. A good mechanism shall be created
among authorities, decision-making body, supervising body and administrative personnel, namely clearly defied
powers and responsibilities, standard operation, mutual coordination and balance of mutual distraction. Separation
of positions, clearly defined powers and responsibilities and balance of mutual distraction among different
organizations and departments shall be maintained in order to effectively ensure the "Profession",
"Standardization" and "Transparency" of company’s management and even to guarantee all shareholders’ benefits,
especially minority shareholders.
General meeting of shareholders is an authority of the company. In 2018，10 meetings was held totally,
among which 1 meeting was annual general meeting of shareholders, 9 were temporary. Board of Directors serves
general meeting of shareholders. During reporting period, 21 meetings were held in Board of Director and 121
bills were approved. Special committee is set under Board of Director and 8 meetings were held in 2018. Board of
Supervisors serves all shareholders and 13 meeting were held in reporting period. Above meetings were held in
conformity with related regulations of Articles of Association, Rule of Procedure of General Meeting of
Shareholders, Rule of Procedure of Board of Director, Rule of Procedure of Board of Supervisor. Above meetings
were convened, held and voted reasonably and legally while resolutions were all legal and valid, so the meetings
play an important role in rapid development of the company.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The controlling shareholder of the company has the standard behavior and hasn‘t directly or indirectly interfered
the decision-making and operations of the company beyond the shareholders‘ meeting. “Five Separations”
achieved on the fields of human resource, finance, assets, organization and business by the company and holding
shareholders.
1. Human resource: Management on labor, personnel and wages by the company is independent from holding
127
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
shareholders. Senior managers all receive payments in the company; none of them receive payment from or serve
in controlling shareholder's entities.
2. Finance: An independent financial management department and accounting system have been established. A
formal financial management system has been set up for independent financial decisions. An independent bank
account has been opened for independent tax payment in accordance with the law. No accountant work
simultaneously in controlling shareholder's entities.
3. Assets: The property rights of company's assets are clear and complete. Production system and supporting
facilities independent from holding shareholders have been built up, and free use and embezzlement of corporate
assets by holding shareholders or other related parties will not happen.
4. Organization: A sound organization system has been constructed in the company, with which Board of
Directors, Board of Supervisors and internal organizations operate independently and no affiliation exists between
holding shareholders and functional departments. All the holding shareholders participate in corporate decisions in
accordance with legal procedures and have caused no influence on the independence of the corporate operation
and management.
5. Business: The company operates independently with complete business structure as well as independent
production, sale and financial systems. The company operates and manages independently in accordance with the
statutory scope of business, and no shareholders will directly or indirectly control and intervene in the supply and
sale. Complete and independent business has been maintained with major shareholders.
III. Competition situations of the industry
□Applicable e √Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Disclosure
Sessions Type participation Meeting Date Disclosure index
date
ratio
Announcement No.2018—011,China
The First provisional Provisional
Securities Daily, Securities Time,
shareholders’ shareholders’
21.88% January 26,2018 January 27,2018 Shanghai Securities News ,Securities
General meeting in General
daily ,Hongkong Commercial Daily and
2018 meeting
www.cninfo.com.cn
The Second Announcement No.2018—028,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’
shareholders’ 21.95% March 26,2018 March 27,2018 Shanghai Securities News ,Securities
General
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
The Third Provisional Announcement No.2017—052,China
provisional shareholders’ 21.96% April 25,2018 April 26,2018 年 Securities Daily, Securities Time,
shareholders’ General Shanghai Securities News ,Securities
128
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
General meeting in meeting daily ,Hongkong Commercial Daily and
2018 www.cninfo.com.cn
Announcement No.2018—059,China
Annual
Securities Daily, Securities Time,
2017 Shareholders’ Shareholders’
22.66% May 10,2018 May 11,2018 Shanghai Securities News ,Securities
general meeting General
daily ,Hongkong Commercial Daily and
Meeting
www.cninfo.com.cn
The Fourth Announcement No.2017—087,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’
shareholders’ 22.73% June 28,2018 June 29,2018 Shanghai Securities News ,Securities
General
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
Announcement No.2018—100,China
The Fifth provisional Provisional
Securities Daily, Securities Time,
shareholders’ shareholders’
21.99% July 30,2018 July 31,2018 Shanghai Securities News ,Securities
General meeting in General
daily ,Hongkong Commercial Daily and
2018 meeting
www.cninfo.com.cn
The Sixth Announcement No.2018—117,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’
shareholders’ 27.68% August 20,2018 August 21,2018 Shanghai Securities News ,Securities
General
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
The Seventh Announcement No.2018—133,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’ November November
shareholders’ 21.87% Shanghai Securities News ,Securities
General 15,2018 16,2018
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
The Eighth Announcement No.2018—147,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’ December December
shareholders’ 21.92% Shanghai Securities News ,Securities
General 10,2018 11,2018
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
The Ninth Announcement No.2018—155,China
Provisional
provisional Securities Daily, Securities Time,
shareholders’ December December
shareholders’ 21.93% Shanghai Securities News ,Securities
General 25,2018 26,2019
General meeting in daily ,Hongkong Commercial Daily and
meeting
2018 www.cninfo.com.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
129
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
V. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
Independent Directors’ Attendance at Board Meetings
Number of
Failure to
Board Number of Number of
personally
meetings Number of meetings Number of attendance at
Independent Number of attend board
necessary to be spot attended by attendances by general
Directors absence meetings
attended in the attendances Communicatio representative meetings of
successively
reporting n shareholders
twice (Yes/No)
period
Zhang Shuangcai 27 27 0 0 0 No 10
Lu Guihua 27 27 0 0 0 No 10
Han Zhiguo 27 27 0 0 0 No 10
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
During the report period, the independent directors of the company has strictly followed the relevant laws and
regulations of “Governance Rules of Listed Companies”, “Stock Listed Rules in Shenzhen Stock Exchange” and
“Guidance Suggestion on the Establishment of Independent Directors System by the Listed Company”, and the
provisions of “Articles of Association” to attend the Board of Directors and Shareholders of the company,
conscientiously perform their duties, express the constructive comments or suggestions for the development
decisions of the company, Is the company's annual profit distribution plan, annual internal control self assessment,
annual related party guaranty fund occupancy, year, renewed annual financial and internal audit institutions, raise
money deposit associated with use, finance companies, supplement directors, accounting policy changes, related
party transactions, to increase commitment subject changes, raise funds use and replacement, raise funds investment
project change, company executives change, company public offering of A shares, convertible corporate bonds and
audit opinions issued by the independent directors, which has effectively ensured the impartiality and objectivity of
decision-making of the Board of Directors, maintained the whole interests of the company and the legitimate rights
of miedium and small shareholders, and played a positive role in the company‘s standard operation and healthy
development.
130
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting period
1.Performance of duties of the Nomination Committee
In 2018, The Nomination Committee of the Board of Directors earnestly performs their duties, and reviews and
make recommendations on the company’s Candidate for additional director and new CFO candidates as per the
provisions of “Implementation Rules of Nomination Committee of the Board of Directors”.
2.Performance of Remuneration and Appraisal Committee
In 2018, Remuneration and Appraisal Committee under the Board of Directors have conscientiously performed
their duties, and conducted the review and provide the suggestions on the subsidy of the independent directors of
the company according to the provisions of “Detailed Rules for Implementation of Remuneration and Appraisal
Committee under the Board of Directors”.
3. Performance of Audit Committee
In 2018, Audit Committee under the Board of Directors has conscientiously performed the duties, conducted the
duty of care, actively performs all kinds of works according to the relevant provisions of “Detailed Rules for
Implementation of Audit Committee under the Board of Directors” and “Articles of Association”, and mainly
made communication, control and review on the annual audits of the company.
Audit Committee and the certified accountants have made fully communication on the audit plans, business
engagement letters, risks and control matters. The Audit Committee has reviewed the audit opinions and the
financial accounting statements issued by the certified accountants, and supervised the certified accountants to
submit the audit report within the appointment time. At the same time, the Audit Committee believes that the
certified accountants have strictly followed the provisions of the independent audit rules from CPAs to perform
the audit work, the audit time is enough, the audit personnel is allocated reasonably, the certificated competence is
qualified, and the financial accounting statements audited by the certified accountants shall reflect the true,
accurate and complete financial condition.
4. Performance of Strategy Committee
In accordance with related provisions of The Detailed Rules for Implementing the Strategy Committee of the
Board and Articles of Incorporation, Strategy Committee of the company is diligent and dutiful in fulfilling its
duties and carrying out its work in 2018. It mainly focuses on the discussion and revision of strategic development
planning of the company.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The company puts store by performance evaluation of administrative personnel, so the company gradually
improves evaluation and inspiration mechanism of administrative personnel and builds improved payment
management system and performance management system and finally found payment and evaluation committee
under Board of Director, which is in charge of evaluating administrative personnel. Performance evaluation has a
close influence on payment of administrative personnel. The company makes a scientific and effective inspiration
131
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
mechanism.
IX. Internal control situations
1. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2.Self-evaluation report on internal control
Disclosure date of appraisal report on
April 29 , 2019
internal control
Disclosure index of appraisal report on
http://www.cninfo.com.cn
internal control
Proportion of total unit assets covered by
appraisal in the total assets of the
90.00%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
90.00%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Type Financial Report Non-financial Report
Evaluation standards of internal control Criteria of quality refers to the severity
defects in financial reports are based on the of involved business nature, which can
degree of importance of the misstatement be determined by the nature, range of
due to the internal control defects. The influence and other factors of direct or
degree of importance mainly relies on potential negative effects. The following
following factors: (1) the possibility of loss signs indicate possible major defects in
or fraud of related assets or debts; the internal control of non-financial reports:
severity degree of defect control relies on the (1) invalid supervision on internal
possibility of prevention, discovery or control by Audit Committee and the
correction of misstatement concerning to internal audit authority; (2) lack of
Standard account or presentation; (2) involved democratic decision-making process,
account, presentation and related recognized such as the decision-making process of
property: whether there is a recognized “major policies, appointment or
direct relationship with one or more financial dismissal of cadres in important
statements; (3) whether the control for positions, arrangement of major projects
evaluation and compensation can offset the and utilization of sizable funds”; (3)
control defects, whether the control for violation of state laws and regulations,
evaluation and compensation is precise for example environment pollution; (4)
enough to prevent, discover or correct the outflow of managers and technicians;
possible majors misstatements; (4) whether it (5) lack of system control or systemic
can arouse attention of personnel in charge failure in major business; (6) no
132
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
of supervising enterprise financial reports: a. rectification of major or important
control defects have been existed since defects concerning to the results of
previous year and recognized as major ones; internal control appraisal.
b. control defects exist in the rising business
or high-risk business of the company; c.
control defects exist in fields highly focused
by Board of Directors or Audit Committee,
such as special part or sensitive business; (5)
the interaction among control defects:
whether control defects, which influence the
same important account, presentation and
related recognized or internal control factors,
form major defects; (6) the possible
influences caused by control defects in
future. When a cautious manager considers a
control defect or the combination of control
defects are obstacles in formulating basic
recording transactions with applicable
financial reports in a reasonable way, then
the control defect or the combination of
control defects should be considered as the
indication of major defects. The following
signs indicate major defects in internal
control of financial reports: (1) any degree of
fraud carried out by board members,
supervisors and senior managers; (2)
financial statements re-published by the
company to correct major misstatements due
to fraud or mistakes; (3) major
misstatements existed in the current financial
statements of the company, which have not
been discovered during the operation of
internal control; (4) invalid supervision on
internal control carried out by Audit
Committee and internal audit authority; (5)
invalid internal control environment in the
company; (6) major deviation on budgets;
(7) negative effects due to the punishments
by regulators; (8) huge losses of the
company; (9) total amount of associated
business surpasses the upper limit of
associated business amount approved by
general meeting of shareholders; (10) defects
influencing the revenue trend, such as profit
133
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
and loss results; (11) other defects
influencing the sound judgment by statement
users.
(1) Defects and problems concerning to
the internal control: Single defect: when
the influence level reaches or surpasses
0.5% of the sales revenue when
appraising the annual consolidated
statements of Tunghsu Photo-electricity,
（1）In Case of profit① Single defect: a. it will be considered as major defect; b.
when the influence level reaches or when the influence level is lower than
surpasses 5% of the profits before tax when 0.5% but reaches or surpasses 0.05% of
appraising the annual consolidated the sales revenue when appraising the
statements of Tunghsu Photo-electricity, it annual consolidated statements of
will be considered as major defect; b. when Tunghsu Photo-electricity, it will be
the influence level is lower than 5% but considered as major defect; c. when it is
reaches or surpasses 0.5% of the profits not belonged to major or important
before tax when appraising the annual defects, then it will be considered as
consolidated statements of Tunghsu normal defect. ② The collection of
Photo-electricity, it will be considered as defects influencing the same important
major defect; c. when it is not belonged to account title or disclosure: a. when the
major or important defects, then it will be influence level after collection reaches or
considered as normal defect. ② The surpasses 0.5% of the sales revenue
Standards of Quantitation collection of defects influencing the same when appraising the annual consolidated
important account title or disclosure: a. when statements of Tunghsu Photo-electricity,
the influence level after collection reaches or it will be considered as major defect; b.
surpasses 5% of the profits before tax when when the influence level after collection
appraising the annual consolidated is lower than 0.5% but reaches or
statements of Tunghsu Photo-electricity, it surpasses 0.05% of the sales revenue
will be considered as major defect; b. when when appraising the annual consolidated
the influence level after collection is lower statements of Tunghsu Photo-electricity,
than 5% but reaches or surpasses 0.5% of the it will be considered as major defect; c.
profits before tax when appraising the annual when it is not belonged to major or
consolidated statements of Tunghsu important defects, then it will be
Photo-electricity, it will be considered as considered as normal defect. (2) For
major defect; c. when it is not belonged to internal control defects and problems
major or important defects, then it will be including personal fraud, please refer to
considered as normal defect. the integrity management related rules of
the company. Standards of internal
control defects and problems including
personal fraud: a. normal defects: less
than one million yuan, or punishments by
the government departments following
the provincial level (including
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
provincial) without negative effects on
regular reports or disclosures published
by Tunghsu Photo-electricity; b. major
defects: one million yuan (including one
million) to ten million yuan, or
punishments by the government
departments at the national level without
negative effects on regular reports or
disclosures published by Tunghsu
Photo-electricity; c. major defects: 10
million or more or defects which have
been officially announced and caused
negative effects on regular reports or
disclosures published by Tunghsu
Photo-electricity
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
ZXCGHSZZD(2019)No.:105014.
To All Shareholders of Tunghsu Optoelectronic Technology Co., Ltd：
In accordance with Audit Guideline for Enterprise Internal Control and relevant requirement of the practicing standards of Chinese
Certified Public Accountant, we audited the effectiveness of the financial report’s internal control for Tunghsu Optoelectronic
Technology Co., Ltd . (the Company) dated 31December 2018.
I. As for responsibility of internal control,
The Company established and improved and implemented internal control effectively based on Basic Norms of Enterprises Internal
Control, Supporting Guidelines for Enterprise Internal Control and Evaluation Guild lines for Enterprises Internal Control, and
board of the director is responsible for evaluating its effectiveness.
II. Auditor’s responsibilities
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Our responsibility is to express an opinion on the effectiveness of internal control for the financial statements based on our audit.
And disclosed major deficits of noted internal control without financial statement concerned.
III. Inherent feature of internal control:
The internal control has an inherent limitation, and exist mistakes that can not prevent and being discovered. Moreover, the internal
control might be inappropriate due to the changes of conditions, or fails to follow the controlling policies and procedures, to
speculate future effectiveness of the internal control in line with the auditing result has a certain risks.
IV. Auditing opinion: in our opinion, the Company.
In line with Basic Norms of Enterprises Internal Control and relevant regulations, shows an effectiveness internal control of
financial report in all major aspects dated 31 December 2018.
Hebei Guanghua Accounting Firms Co., Ltd.(LLP)
Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:
Beijing China April 29, 2019
Disclosure of internal audit report Disclosure
Disclosure date of audit report
April 29,2019
of internal control (full-text)
Index of audit report of
http://www.cninfo.com.cn
internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the
No
existence of significant deficiencies
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
X. 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
I. Basic information of the corporate bonds
Bond Method of repayment of
Abbreviated Interest
Bond Name Code Issue Date Date Due Balance(RM the principal and interest
Bond Name Rate
B10,000) payment
2015- corporate
Interest paid every year,
bond of Tunghsu
15 Tunghsu the principal will be repaid
Optoelectronic 112243 May 19,2015 May 19,2020 95,200 6.68%
bonds with the last unpaid interest
Technology Co.,
in one time as the bond due
Ltd
Listed place or Transaction
Shenzhen Stock Exchange
place for the corporate bonds
Arrangement of investor’s
Investor’s put table right
eligibility
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
The Company will adjust the coupon rate of the follow-up period at the end of the 3rd year of the
current bond duration for the "15 Tunghsu Bonds". The coupon rate of the bonds is 6.00% for the
Implementation of relevant
first 3 years of the duration. At the end of the 3rd year of the duration, the Company chooses to
special clauses(if applicable)
increase the coupon rate, i.e., the coupon rate of 2 years after the duration of the bonds is increased
such as option clause for the
from 6.00% to 6.80%, and remains unchanged within 2 years after the duration of the bonds (May
bond issuer or investors and
19, 2018 to May 18, 2020). During the Reporting Period, there are 439,573 declared put-back of
exchangeable clause
"15 Tunghsu Bonds", with the put-back amount of RMB 46,594,738.00 (including interest), and
the remaining 9,560,427 custodian bonds.
II. Information about the bond trustee and credit rating agency
Bond trustee:
19,20/F, Main
Tower ,
Guangzhou Guangzhou
Business Shi Jianhua,
Name Securities Co., International Contacts Tel 020-88836999
Address Yan Xiangjun
Ltd. Finance Center,
No.5 Zhujiang
West Road,
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tianhe District
Guangzhou
City
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Business Room 508 Ailiyuan Apartment, No.38 Water
Name United Rating Co.,Ltd
Address 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
Not applicable
the change, performing procedures,
relevant influence on investors, etc ( if
applicable)
III. Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds Using the funds raised by issuing corporate bonds strictly conforming to the purpose
raised by issuing corporate bonds and stipulated by Rules of Management and Use of the Raised Funds and the Prospectus, and
related implementation procedure implemented the corresponding approval procedures
Ending balance of the year(RMB10,000) 0
Operation status of the special account for
Normal
the raised funds
Whether the use of the raised funds
conforming to the purpose, use plan and
The use of the raised funds conformed to the purpose promised in the Prospectus
other provisions specified 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 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.
V. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repayment
Repayment Plan
I. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.
Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
138
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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 day
after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, the
interest 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 other
related institutions. The concrete information of the interest payment will be specified in the Interest Payment
Announcement 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 the
relevant tax should be paid.
II. The repayment of the principal
1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise the
puttable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bonds
being sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall be
postponed to the first working day after the original day, and there is no need to pay interest in the deferred
period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other
related institutions. The concrete information of repayment of the principal of the bonds will be specified in the
Principal Repayment Announcement issued on the media designated by CSRC, with in accordance with the
relevant state regulations.
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
The company designated its finance department to take the lead in the coordination work for repayment of the
bonds 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 and
principal 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, with
the personnel of the finance department being included, to specially in charge of the work of paying the interest of
the bonds and the repayment of the principal.
II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach, the company with bond trustee has established the
Meeting 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 the
interest and the principal of the corporate bonds.
III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach, the company has adopted the institution of bond
trustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement of
Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to
supervise the relevant information about the company and take all necessary measures to protect the legitimate
interest 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 commitment
fulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bond
trustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
139
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Management.
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 Entrusted
Management and relevant regulations, the company shall release the information of major issues, which include
but not limited to the following contents: (1) According to the Prospectus and agreement with the registered
trustee institution, the company shall transfer the maturity interest payment or principal to the account designated
by the registered trustee institution; (2) By estimate or in fact, the company cannot fully repay the interest or
principal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guarantee
contract for external or other major contracts may have significant adverse effects of repaying the interest and
principal of the bonds; (4) A severe loss occurred or expected to occur, and the loss exceeds 10% of the net asset
audited in the last accounting year; (5) Occurrence of capital reduction, merger, division, dissolution, file for
bankruptcy, entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of the
amount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accounting
year; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in the
last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the
stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the
relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may
significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative
regulations and stipulations by the CSRC or exchange.
Ⅴ. Setting up the capital management plan and strictly implementing the plan
After 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 the
general meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of the
bonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutions
and 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 and
bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel
and so on.
VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.
VII. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status,
2017 Entrusted Management Report of 2015 Corporate Bonds of Tunghsu Optoelectronic and and the Interim
Report on the Entrusted Management of Major Events of 2015 Corporate Bond of Tunghsu Optoelectronic (on the
change of Directors and Chairman) were released on May 10, 2018 and August 9, 2018 respectively, and the
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Company was visited on the spot in December 2018 to review the bank reconciliation of the special account for
raised funds and continuously supervise the use of the raised funds.
VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting period
In RMB10,000
Rate of change in the same
Items 2018 2017
period
Earnings before interest, tax,
489,789.49 444,259.47 10.25%
depreciation and amortization
Current ratio 167.08% 223.56% -56.48%
Debt ratio 53.95% 53.11% 0.84%
Quick ratio 131.58% 177.08% -45.50%
EBITDA/Total debts 12.51% 12.19% 0.32%
Interest coverage ratio 36.79 22.23 65.50%
Cash interest coverage ratio 1.61 2.26 -28.76%
EBITDA interest coverage ratio 3.73 3.43 8.75%
Loans repayment rate 100.00% 100.00% 0.00%
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
√Applicable □ Not applicable
The current ratio decreases by 56.48%, mainly due to the increase of RMB 2.6 billion in short-term borrowings at
the end of the current period compared with the end of the previous period.
The significant increase in interest coverage is due to better performance for the current period.
The sharp decline in the quick ratio is also due to a sharp increase in short-term borrowing of RMB 2.6 billion.
The decrease in the multiple of cash interest protection is mainly attributable to the decrease in the ability to
recover from operating activities as compared to the same period in 2017.
IX. Information about the repayment of interest and principal for other bonds or debt financing instruments
1. Bonds issuing, interest payment and cashing within the report period
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 medium
term note in 2016 was 4.7 billion in two periods including the first period with two types of (3+2 years) and 5 years
totaling 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 payment
together with the principal cashing for the last period. The interest payment period has not expires within the report
period and the interest accrued was RMB 224,280,000.00 .
2. Unmatured bonds issuing, interest payment and cashing in previous years
As approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635, the company issued
toward the public 1 billion bones on May 19, 2015 , the first period bond interest 60,000,000.00 was paid in full
141
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
amount on schedule in 2016, and the first period bond interest 43,957,300.00 was paid in full amount on schedule in
2018.
X.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
The balance of the total amount of the short-term and long-term loans is RMB11,102,696,251.33, increased
RMB605,143,618.36 compared with the end of year 2017, which mainly because of the need of the production and
operation and the construction of projects. The company strictly conformed to requests of bank loans to use the
funds and fully repaid the interest and principal to the bank in time.
XI. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
During the reporting period, there is no use of corporate bonds to raise funds, and the company has strictly
fulfilled its commitment that the bond raised funds will not be directly or indirectly invested in the real estate
development business, and will not be used to increase the capital of subsidiaries engaged in the real estate
business or lend money to them.
XII.Major events occurred during the reporting period
Nil
XIII. Whether the corporate bonds have a guarantor
□ Yes √No
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
XI. Financial Report
I. Audit report
Type of auditing opinion Standard report without qualified opinion
Date for signing the auditor’s report April 29,2019
Name of audit firm Hebei Guanghua Accounting Firms Co., Ltd.(LLP)
The audit of the report ZXCGHSKZD(2019)No.:105028
Certified public accountant's name Qi Zhenghua, Meng Xiaoguang
Auditors’ Report
ZXCGHSKZD(2019)No.:105028
To all shareholders of Shareholders of Tunghsu Optoelectronic Technology Co., Ltd.:
I. Opinion
We have audited the financial statements of Tunghsu Optoelectronic Technology Co., Ltd.
(hereinafter referred to as "the Company"), which comprise the balance sheet as at December 31, 2018, the
Company’s and consolidated income statements, the Company’s and consolidated cash flow statements, the
Company’s and consolidated statements of changes in shareholders’ equity for the year then ended, as well as the
notes to the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair view of the
consolidated and parent financial position of the Company as at 31 December 2018 and the consolidated and
parent business performance and cash flow of the Company for 2018
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants
in China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are
independent of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
We confirm that the following matters are the key audit matters that need to be communicated in the
audit report:
(1) Recognition of operating income
1. Description of the matter
For details of relevant information disclosure, please refer to "Note V, 28 and Note VII, 52" of the
financial statements.
Tunghsu Optoelectronic recognized operating income of 28,211.7 million yuan in 2018, up 63.29%
over 2017. The operating income is divided into construction contract income and product sales income:
As for construction contract income, Tunghsu Optoelectronic Company will determine the
completion progress according to the proportion of the accumulated actual cost to the estimated total cost under
the condition that relevant projects can be reliably estimated. The estimated total cost of the budget contract
involves significant accounting estimation and judgment. The estimation and judgment are influenced by existing
experience and judgment on the future market. The rationality of the management's estimation and judgment on
the estimated total cost will have a significant impact on the recognition of the income of relevant projects of
Tunghsu Optoelectronic; Meanwhile, the sales revenue of products accounts for a large proportion of the
operating revenue of Tunghsu Optoelectronic;
Therefore, we will recognize the estimated cost of the construction contract and the recognition of
product sales income as key audit matters.
2. Audit response
(1) For the recognition of product sales income, the main auditing procedures we implement are as
follows:
Understand and evaluate the rationality and effectiveness of management's design of key internal
controls related to revenue recognition; (Check whether the accounting policies for income recognition conform to
the provisions of the accounting standards for enterprises and whether they are consistently implemented;
Take sampling method to check the major sales contracts, sales invoices, transportation documents,
customer acceptance documents, export declaration forms and other documents related to product sales income of
Tunghsu Optoelectronic, and conduct confirmation and visits to important customers to confirm the occurrence of
product sales income;
For the product sales revenue recognized before and after the balance sheet of Tunghsu
Optoelectronic, check the documents such as transportation documents and customer acceptance documents to
evaluate whether the income is recorded in the appropriate accounting period.
(2) As for the estimated cost of the construction contract, the main auditing procedures we have
implemented are as follows:
Understand and evaluate the rationality and operational effectiveness of the management's key
internal control design related to project contract budgeting and revenue recognition;
Using sampling method, compare and analyze the actual total cost of completed projects with the
estimated total cost of the contract made by the management on whether there are abnormal differences, so as to
judge whether the management effectively manages the contract budget dynamically;
Compare and analyze the estimated total cost of unfinished projects with the historical actual cost of
similar completed projects, and evaluate the management's experience and ability in making such accounting
estimate;
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
By sampling method, check the compilation basis of the estimated total cost of Tunghsu
Optoelectronic and evaluate the rationality of the estimated total cost;
Obtain company income calculation details and execute recalculation procedures to determine the
accuracy of income recognition.
(II) Goodwill impairment
1. Description of the matter
Please refer to "Note V, 22, Note VII, 22" to the financial statement for details of the relevant
information disclosure.
As of December 31, 2018, the book value of goodwill in the consolidated financial statements of
Tunghsu Optoelectronic was RMB 2835.6726 million, and the provision for goodwill impairment that had been
made was RMB 10.1634 million. Management performs an impairment test on goodwill at the end of each year
and adjusts the book value of goodwill based on the results of the impairment test. The results of the goodwill
impairment test depend to a large extent on the estimates made and assumptions adopted by management (e.g.
estimates of the expected future cash flow and discount rate of the asset group). These estimates are influenced by
management's judgments on the future market and the economic environment. The use of different estimates and
assumptions will have a significant impact on estimating the recoverable value of goodwill. Because the goodwill
arising from the acquisition of 100% equity interest in Shanghai Sunlong Bus Co., Ltd. amounted to RMB
2443.6274 million, Net carrying amount accounting for 86.17% of the goodwill in the consolidated statement
because of its huge amount. Therefore, we took the impairment measurement of the goodwill arising from the
acquisition of equity interest in Shanghai Sunlong Bus Co., Ltd. as a key audit matter.
2. Audit response
In response to the above key audit matter, we have implemented the following main audit procedures:
(1) Understand and test the internal control of Tunghsu Optoelectronic on goodwill impairment
assessment;
(2) Review the recognition of asset group by management and the allocation method of goodwill;
understand the historical performance and development planning of the asset group, as well as the development
trend of the macro-economy and the industry; evaluate the assumptions and methods used by management in
estimating the recoverable value of assets; evaluate and test the assumptions and valuation methods made by
Tunghsu Optoelectronic in assessing whether goodwill is impaired as of December 31, 2018, determination of
asset groups related to goodwill, cash flow forecasts and other data and parameters used, and evaluate other
important parameters, including sales growth rate, output, production costs, operating expenses and discount rate;
(3) Evaluate the professional competence, independence and objectivity of the asset appraiser,
consult the appraisal technical description of the appraisal report, analyze whether the appraisal value and
calculation formula are reasonable, and review and calculate the appraisal data. At the same time, interview the
appraiser, including the purpose and scope of the appraisal report issued, its independence, the selection of
appraisal process, the selection of the main parameters and the rationality of the appraisal results；
(4) It is appropriate to review the goodwill presentation of Tunghsu Optoelectronic Technology Co.,
Ltd.
IV. Other information
The management of the Company is responsible for the other information. The other information
comprises information of the Company's annual report in 2018, but excludes the financial statements and our
auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
If, based on the work we have performed on the other information that we obtained prior to the date
of this auditor's report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with
the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for
designing, implementing and maintaining internal control that is necessary to ensure that the financial statements
are free from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the
Company's ability to continue as a going concern, disclosing matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting
process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of
the Company, and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
146
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements and bear all liability for
the opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit matters, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Hebei Guanghua Accounting Firms Co., Ltd.(Special General Partnership)
Accountants Chinese C.P.A(Project Partner).: Accountants Chinese C.P.A.:
Beijing China April 29, 2019
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1.Consolidated Balance sheet
Prepared by: Tunghsu Optoelectronic Technology Co., Ltd.
December 31,2018
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 19,807,094,397.16 27,456,759,768.86
Settlement provisions
Outgoing call loan
Financial assets measured at fair value
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
with variations accounted into current
income account
Derivative financial assets
Notes receivable & Account receivable 14,852,563,398.56 8,411,548,269.26
Including：Notes receivable 499,781,503.17 538,128,584.84
Account receivable 14,352,781,895.39 7,873,419,684.42
Prepayments 5,215,414,219.51 2,021,119,950.95
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 1,125,991,020.55 1,094,347,121.61
Including：Interest receivable 56,811,961.67 49,456,785.29
Dividend receivable
Repurchasing of financial assets
Inventories 3,510,786,666.85 4,909,570,356.36
Assets held for sales 119,355,435.58 213,034,435.58
Non-current asset due within 1 year
Other current asset 809,360,778.49 2,559,947,333.75
Total of current assets 45,440,565,916.70 46,666,327,236.37
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 243,158,605.30 100,000,056.00
Expired investment in possess
Long-term receivable 344,430,815.68 143,988,866.91
Long term share equity investment 2,174,347,969.22 2,130,640,158.90
Property investment 686,993,881.02 58,229,439.86
Fixed assets 9,634,463,323.77 11,379,727,456.13
Construction in progress 5,013,941,980.61 3,667,972,406.42
Productive biological assets
Gas & petrol
Gas & petrol 1,146,949,745.14 1,001,796,110.02
Intangible assets 37,122,235.94 15,397,704.97
Development expenses 2,835,672,586.90 2,587,678,140.99
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Long-germ expenses to be amortized 21,884,204.82 26,538,304.02
Deferred income tax asset 533,094,627.68 526,633,526.09
Other non-current asset 4,463,496,966.82 306,402,939.48
Total of non-current assets 27,135,556,942.90 21,945,005,109.79
Total of assets 72,576,122,859.60 68,611,332,346.16
Current liabilities
Short-term loans 8,361,106,651.33 5,712,826,382.20
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair value
with variations accounted into current
income account
Derivative financial liabilities
Notes payable & account payable 10,276,094,132.88 5,700,886,719.54
Advance payment 1,402,283,662.37 1,655,137,563.63
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 238,146,977.17 207,697,362.25
Tax payable 817,173,127.12 294,979,419.96
Other account payable 2,089,603,676.60 2,029,716,039.08
Including：Interest payable 117,554,951.58 107,195,147.20
Dividend payable 35,000,000.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due within 1 year 3,697,392,864.91 5,045,608,756.45
Other current liability 315,193,128.73 227,155,178.97
Total of current liability 27,196,994,221.11 20,874,007,422.08
Non-current liabilities：
Long-term loan 2,741,589,600.00 5,209,726,250.77
Bond payable 5,630,818,825.32 5,665,126,090.52
Including：preferred stock
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Sustainable debt
Long-term payable 2,644,309,592.95 3,276,308,254.44
Long-term payable Employees'
remuneration
Expected liabilities 99,765,750.04 156,421,713.31
Deferred income 676,146,399.31 592,290,617.42
Deferred income tax liability 55,192,983.97 60,149,328.74
Other non-current liabilities 108,000,000.00 608,000,000.00
Total non-current liabilities 11,955,823,151.59 15,568,022,255.20
Total of liability 39,152,817,372.70 36,442,029,677.28
Owners’ equity
Share capital 5,730,250,118.00 5,730,250,118.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 21,786,233,393.78 21,979,242,606.60
Less：Shares in stock 4,422,320.00 4,422,320.00
Other comprehensive income -29,175.80 -4,518.45
Special reserves 12,614,331.35 1,983,921.21
Surplus reserves 245,507,019.95 224,133,824.86
Common risk provision
Retained profit 4,750,977,557.86 3,009,860,755.82
Total of owner’s equity belong to the
32,521,130,925.14 30,941,044,388.04
parent company
Minority shareholders’ equity 902,174,561.76 1,228,258,280.84
Total of owners’ equity 33,423,305,486.90 32,169,302,668.88
Total of liabilities and owners’ equity 72,576,122,859.60 68,611,332,346.16
Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Current asset：
Cash and bank balances 9,732,302,654.23 11,224,359,236.39
Financial assets measured at fair value with
variations accounted into current income
account
Derivative financial assets
Notes receivable & account receivable 176,613,926.23 24,037,262.59
Including：Notes receivable 50,000.00 200,000.00
Account receivable 176,563,926.23 23,837,262.59
Prepayments 2,008,364.11 16,902,375.19
Other account receivable 6,281,675,319.27 5,497,581,593.85
Including：Interest receivable 7,521,489.86 41,868,921.15
Dividend receivable 500,000,000.00 665,000,000.00
Inventories 269,759,580.95 509,283,364.38
Assets held for sales
Non-current asset due within 1 year
Other current asset 148,973.38 1,220,148,973.38
Total of current assets 16,462,508,818.17 18,492,312,805.78
Non-current assets：
Available for sale of financial assets 129,500,056.00 100,000,056.00
Expired investment in possess
Long-term receivable
Long term share equity investment 26,504,735,200.89 23,020,364,897.17
Property investment
Fixed assets 160,867,244.63 44,669,881.93
Construction in progress
Production physical assets
Oil & gas assets
Intangible assets 9,339,387.26 9,687,094.58
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 119,964,967.85 58,105,970.47
Other non-current asset 1,381,400.00
Total of non-current assets 26,924,406,856.63 23,234,209,300.15
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Total of assets 43,386,915,674.80 41,726,522,105.93
Current liabilities
Short-term loans 4,278,000,000.00 2,760,000,000.00
Financial liabilities measured at fair value
with variations accounted into current
income account
Derivative financial liabilities
Notes payable& account payable 11,500,796.58 15,219,920.86
Advance payment 1,991,498.78 421,587.90
Employees’ wage payable 4,484,401.86 4,061,413.48
Tax payable 17,959,833.09 28,150,779.48
Advance payment 3,656,725,253.66 503,617,925.37
Employees’ wage payable 97,197,464.99 79,827,566.10
Tax payable
Liabilities held for sales
Non-current liability due within 1 year 1,533,383,333.28 2,769,233,333.30
Other current liability
Total of current liability 9,504,045,117.25 6,080,704,960.39
Non-current liabilities：
Long-term loan 1,512,500,000.00
Bond payable 5,630,818,825.32 5,665,126,090.52
Including：preferred stock
Sustainable debt
Long-term payable
Long-term Employees’ wage payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 5,630,818,825.32 7,177,626,090.52
Total of liability 15,134,863,942.57 13,258,331,050.91
Owners’ equity
Share capital 5,730,250,118.00 5,730,250,118.00
Other equity instruments
Including：preferred stock
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Sustainable debt
Capital reserves 21,832,453,907.50 21,861,207,672.90
Less：Shares in stock 4,422,320.00 4,422,320.00
Other comprehensive income
Special reserve
Surplus reserves 226,517,795.62 205,144,600.53
Retained profit 467,252,231.11 676,010,983.59
Total of owners’ equity 28,252,051,732.23 28,468,191,055.02
Total of liabilities and owners’ equity 43,386,915,674.80 41,726,522,105.93
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 28,211,700,021.12 17,276,969,039.03
Incl：Business income 28,211,700,021.12 17,276,969,039.03
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 25,817,783,711.68 15,436,795,701.80
Incl：Business cost 23,204,078,792.38 13,674,487,646.24
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 237,483,799.16 94,070,286.07
Sales expenses 334,476,301.51 209,160,183.73
Administrative expenses 653,479,277.58 393,125,009.94
R & D expenses 572,089,634.30 256,991,555.91
Financial expenses 722,695,173.66 753,977,500.45
Including：Interest expenses 1,204,287,050.60 1,142,316,421.06
Interest income 506,083,846.24 442,489,241.64
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Asset impairment loss 93,480,733.09 54,983,519.46
Add：Other income 251,303,953.08 352,095,131.45
Investment gain（“-”for loss） 80,925,191.79 63,704,853.98
Incl: investment gains from affiliates 64,366,051.65 4,663,254.00
Gains from change of fir value （“-”for
loss）
Gains from currency exchange
（“-”for loss）
Assets disposal income 1,515,607.51
III. Operational profit（“-”for loss） 2,727,661,061.82 2,255,973,322.66
Add ：Non-operational income 19,063,270.76 3,569,062.38
Less：Non business expenses 8,892,705.00 2,408,772.80
IV.Total profit(“-”for loss) 2,737,831,627.58 2,257,133,612.24
Less：Income tax expenses 469,003,541.40 336,234,590.36
V. Net profit 2,268,828,086.18 1,920,899,021.88
1.Net continuing operating profit 2,268,828,086.18 1,920,899,021.88
2.Termination of operating net profit
Net profit attributable to the owners of
2,163,607,505.39 1,730,174,564.57
parent company
Minority shareholders’ equity 105,220,580.79 190,724,457.31
VI. Net after-tax of other
-42,240.07 -8,409.93
comprehensive income
Net of profit of other comprehensive inc
ome attributable to owners of the parent -24,657.35 -4,518.45
company.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b -24,657.35 -4,518.45
e reclassified into profit or loss.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
-24,657.35 -4,518.45
ancial statements
6.Other
Net of profit of other comprehensive inc
-17,582.72 -3,891.48
ome attributable to Minority
shareholders’ equity
VII. Total comprehensive income 2,268,785,846.11 1,920,890,611.95
Total comprehensive income
attributable to the owner of the parent 2,163,582,848.04 1,730,170,046.12
company
Total comprehensive income
105,202,998.07 190,720,565.83
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.38 0.32
(II)Diluted earnings per share 0.38 0.32
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB -11,435,425.33, last period the combined party realized RMB-13,043,965.22.
Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-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 192,196,941.80 224,036,245.36
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Incl：Business cost 152,993,440.70 157,850,832.08
Business tax and surcharge 6,644,502.15 5,861,889.82
Sales expenses
Administrative expenses 39,463,721.23 36,146,618.59
R & D expenses 8,322,311.54 4,750,475.24
Financial expenses 379,774,437.36 440,687,806.43
Including：Interest expenses 645,866,773.53 715,302,441.40
Interest income 275,451,910.63 277,294,157.23
Asset impairment loss 10,403,118.18 953,612.93
Add：Other income 5,000.00
Investment gain（“-”for loss） 556,448,607.09 728,710,908.36
Including: Investment gains from
64,362,875.25 4,680,716.60
affiliates
Gains from change of fir value
Assets disposal income -83,936.54
II. Operational profit（“-”for loss） 150,960,081.19 306,500,918.63
Add ：Non-operational income 1,125,858.13 3,258.50
Less：Non business expenses 212,985.83
III.Total profit(“-”for loss) 151,872,953.49 306,504,177.13
Less：Income tax expenses -61,858,997.38 -54,393,366.62
IV. Net profit（“-”for net loss） 213,731,950.87 360,897,543.75
1.Net continuing operating profit 213,731,950.87 360,897,543.75
2.Termination of operating net profit
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（ II ）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 213,731,950.87 360,897,543.75
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
24,460,106,952.41 16,319,362,118.18
rending of services
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
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 342,117,355.30 368,068,395.17
Other cash received from business
1,112,750,115.02 1,393,784,267.32
operation
Sub-total of cash inflow 25,914,974,422.73 18,081,214,780.67
Cash paid for purchasing of
22,506,440,909.95 13,863,864,085.75
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 1,148,904,118.69 675,531,188.29
Taxes paid 874,045,127.91 851,129,505.84
Other cash paid for business activities 997,332,261.66 1,437,511,489.48
Sub-total of cash outflow from business
25,526,722,418.21 16,828,036,269.36
activities
Net Cash flow generated by business
388,252,004.52 1,253,178,511.31
operation
II.Cash flow generated by investing
Cash received from investment
2,287,107,423.40 10,720,000,000.00
retrieving
Cash received as investment gains 14,623,990.55 61,158,304.69
Net cash retrieved from disposal of 1,342,541.78 4,233.00
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
392,179,613.50
subsidiaries or other operational units
Other investment-related cash received 2,065,561,030.00 110,685,142.80
Sub-total of cash inflow due to
4,760,814,599.23 10,891,847,680.49
investment activities
Cash paid for construction of
fixed assets, intangible assets 5,397,726,636.77 2,120,419,910.48
and other long-term assets
Cash paid as investment 1,100,017,546.00 2,743,196,945.39
Net increase of loan against pledge
Net cash received from subsidiaries and
392,683,239.84 409,333,786.20
other operational units
Other cash paid for investment
4,514,811,164.19 11,372,003,800.00
activities
Sub-total of cash outflow due to
11,405,238,586,80 16,644,954,442.07
investment activities
Net cash flow generated by investment -6,664,423,987.57 -5,753,106,761.58
III.Cash flow generated by financing
Cash received as investment 29,782,250.00 4,089,127,645.26
Incl: Cash received as investment from
29,000,000.00 381,127,660.00
minor shareholders
Cash received as loans 9,271,938,586.70 6,415,966,666.66
Cash received from bond placing
Other financing –related ash received 1,625,337,955.88 6,079,515,983.16
Sub-total of cash inflow from financing
10,927,058,792.58 16,584,610,295.08
activities
Cash to repay debts 10,790,796,153.46 7,676,192,931.29
Cash paid as dividend, profit, or
1,634,663,688.12 1,506,017,279.72
interests
Incl: Dividend and profit paid by
35,000,000.00 30,000,000.00
subsidiaries to minor shareholders
Other cash paid for financing activities 2,448,920,714.02 3,305,362,985.49
Sub-total of cash outflow due to
14,874,380,555.60 12,487,573,196.50
financing activities
Net cash flow generated by financing -3,947,321,763.02 4,097,037,098.58
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
IV. Influence of exchange rate
5,470,280.86 -20,700,620.86
alternation on cash and cash equivalents
V.Net increase of cash and cash
-10,198,023,465,21 -423,591,772.55
equivalents
Add: balance of cash and cash
25,114,660,756.25 25,538,252,528.80
equivalents at the beginning of term
VI ..Balance of cash and cash
14,916,637,291.04 25,114,660,756.25
equivalents at the end of term
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
72,531,777.31 257,729,472.43
rending of services
Tax returned
Other cash received from business
727,597,222.22
operation
Sub-total of cash inflow 72,531,777.31 985,326,694.65
Cash paid for purchasing of
39,022,885.88 499,508,106.89
merchandise and services
Cash paid to staffs or paid for staffs 23,420,776.83 12,003,112.70
Taxes paid 17,690,820.97 13,008,194.55
Other cash paid for business activities 12,832,370.74 704,986,879.59
Sub-total of cash outflow from business
92,966,854.42 1,229,506,293.73
activities
Net Cash flow generated by business
-20,435,077.11 -244,179,599.08
operation
II.Cash flow generated by investing
Cash received from investment
2,788,307,423.40 10,720,000,000.00
retrieving
Cash received as investment gains 678,923,452.07 631,146,896.47
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Other investment-related cash received 18,756,644,994.40 4,090,240,995.50
Sub-total of cash inflow due to
22,223,875,869.87 15,441,387,891.97
investment activities
Cash paid for construction of
fixed assets, intangible assets 56,199.61 108,600.00
and other long-term assets
Cash paid as investment 4,234,000,000.00 8,020,648,977.50
Net cash received from subsidiaries and
817,834,645.97
other operational units
Other cash paid for investment
20,503,969,862.86 16,271,549,676.04
activities
Sub-total of cash outflow due to
25,555,860,708.44 24,292,307,253.54
investment activities
Net cash flow generated by investment -3,331,984,838.57 -8,850,919,361.57
III.Cash flow generated by financing
Cash received as investment 3,707,999,985.26
Cash received as loans 4,858,000,000.00 4,241,666,666.66
Cash received from bond placing
Other financing –related ash received 10,928,715,830.12 241,954,213.63
Sub-total of cash inflow from
15,786,715,830.12 8,191,620,865.55
financing activities
Cash to repay debts 6,132,307,300.02 3,730,033,333.36
Cash paid as dividend, profit, or
1,020,777,853.83 1,044,754,330.46
interests
Other cash paid for financing activities 6,773,267,342.75 49,565,032.84
Sub-total of cash outflow due to
13,926,352,496.60 4,824,352,696.66
financing activities
Net cash flow generated by financing 1,860,363,333.52 3,367,268,168.89
IV. Influence of exchange rate
433,490.39
alternation on cash and cash equivalents
V.Net increase of cash and cash
-1,492,056,582.16 -5,727,397,301.37
equivalents
Add: balance of cash and cash
11,224,359,236.39 16,951,756,537.76
equivalents at the beginning of term
VI ..Balance of cash and cash
9,732,302,654.23 11,224,359,236.39
equivalents at the end of term
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrument Other Commo Total of
Items shareho
Share Less: Speciali
Capital Compre Surplus n risk Retaine owners’
Capita prefer Shares zed lders’
Sustai reserves hensive reserves provisio d profit equity
l red in stock reserve equity
Other
nable Income n
stock
debt
5,730, 21,979, 3,009,8 1,228,2 32,169,
I.Balance at the 4,422,3 -4,518.4 1,983,9 224,133
250,11 242,606 60,755. 58,280. 302,668
end of last year 20.00 5 21.21 ,824.86
8.00 .60 82 84 .88
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 5,730, 21,979, 3,009,8 1,228,2 32,169,
4,422,3 -4,518.4 1,983,9 224,133
beginning of 250,11 242,606 60,755. 58,280. 302,668
20.00 5 21.21 ,824.86
current year 8.00 .60 82 84 .88
-193,00 1,741,1 -326,08 1,254,0
III.Changed in the -24,657. 10,630, 21,373,
9,212.8 16,802. 3,719.0 02,818.
current year 35 410.14 195.09
2 04 8 02
（1）Total 2,163,6 2,268,7
-24,657. 105,202
comprehensive 07,505. 85,846 .
35 ,998.07
income 39 11
（II）Investment
2,516,2 38,810, 41,326,
or decreasing of
87.18 610.28 897.46
capital by owners
1．Ordinary Share 39,734, 39,734,
s invested by Shar 500.00 500.00
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
eholders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
2,516,2 -923,88 1,592,3
4．Other
87.18 9.72 97.46
-422,49 -401,11
（III）Profit 21,373,
0,703.3 7,508.2
allotment 195.09
5 6
1.Providing of 21,373, -21,373,
surplus reserves 195.09 195.09
2.Providing of
common risk
provisions
3．Allotment to the -401,11 -401,11
owners (or 7,508.2 7,508.2
shareholders) 6 6
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
163
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
5．Other
(V). Special 10,630, 7,169,3 17,799,
reserves 410.14 63.61 773.75
1. Provided this 38,527, 7,324,9 45,852,
year 044.56 78.46 023.02
-27,896, -155,61 -28,052,
2．Used this term
634.42 4.85 249.27
-195,52 -477,26 -672,79
（VI）Other 5,500.0 6,691.0 2,191.0
0 4 4
5,730, 21,786, 4,750,9 33,423,
IV. Balance at the 4,422,3 -29,175. 12,614, 245,507 902,174
250,11 233,393 77,557. 305,486
end of this term 20.00 80 331.35 ,019.95 ,561.76
8.00 .78 86 .90
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrument Other Commo Total of
Items shareho
Share Less: Speciali
Capital Compre Surplus n risk Retaine owners’
Capita prefer Shares zed lders’
Sustai reserves hensive reserves provisio d profit equity
l red in stock reserve equity
Other
nable Income n
stock
debt
4,939, 16,338, 1,823,6 1,093,0 24,379,
I.Balance at the 4,422,3 188,044
928,98 960,810 95,278. 61,728. 268,550
end of last year 20.00 ,070.48
3.00 .89 31 31 .99
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities -155,09
194,098 91,021, 130,022
under common 7,190.9
,440.35 359.68 ,609.11
control 2
Other
II.Balance at the 4,939, 16,533, 1,668,5 1,184,0 24,509,
4,422,3 188,044
beginning of 928,98 059,251 98,087. 83,087. 291,160
20.00 ,070.48
current year 3.00 .24 39 99 .10
III.Changed in the 790,32 5,446,1 -4,518.4 1,983,9 36,089, 1,341,2 44,175, 7,660,0
164
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
current year 1,135. 83,355. 5 21.21 754.38 62,668. 192.85 11,508.
00 36 43 78
（1）Total 1,730,1 1,920,8
-4,518.4 190,724
comprehensive 74,564. 94,503.
5 ,457.31
income 57 43
（II）Investment 790,32 6,683,0 7,856,2
382,886
or decreasing of 1,135. 65,275. 72,452.
,041.50
capital by owners 00 65 15
1．Ordinary Share 790,32 6,728,5 7,901,7
382,886
s invested by share 1,135. 22,710. 29,887.
,041.50
holders 00 65 15
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
-45,457, -45,457,
4．Other
435.00 435.00
-388,91 -387,82
（III）Profit 36,089, -35,000
1,896.1 2,141.7
allotment 754.38 ,000.00
4 6
1.Providing of 36,089, -36,089,
surplus reserves 754.38 754.38
2.Providing of
common risk
provisions
3．Allotment to the -352,82 -387,82
-35,000
owners (or 2,141.7 2,141.7
,000.00
shareholders) 6 6
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
165
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．Other
(V). Special 1,983,9 1,906,1 3,890,0
reserves 21.21 20.38 41.59
1. Provided this 38,971, 1,906,1 40,877,
year 707.64 20.38 828.02
-36,987, -36,987,
2．Used this term
786.43 786.43
-1,236,8 -496,34 -1,733,2
（VI）Other 81,920. 1,426.3 23,346.
29 4 63
5,730, 21,979, 3,009,8 1,228,2 32,169,
IV. Balance at the 4,422,3 -4,518.4 1,983,9 224,133
250,11 242,606 60,755. 58,280. 302,668
end of this term 20.00 5 21.21 ,824.86
8.00 .60 82 84 .88
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
In RMB
Amount in this period
Other Equity instrument
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Retaine
preferre Sustain Shares in owners’
Capital Other reserves ensive d reserve reserves d profit
d stock able stock equity
Income
debt
I.Balance at the 5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
end of last year 0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
beginning of
0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
current year
-208,75
III.Changed in the -28,753,7 21,373,19 -216,139,
8,752.4
current year 65.40 5.09 322.79
8
（I）Total
213,731 213,731,9
comprehensive
,950.87 50.87
income
(II) Investment or
-28,753,7 -28,753,7
decreasing of
65.40 65.40
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other -28,753,7 -28,753,7
167
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
65.40 65.40
-422,49
（III）Profit 21,373,19 -401,117,
0,703.3
allotment 5.09 508.26
5
1.Providing of 21,373,19 -21,373,
surplus reserves 5.09 195.09
2．Allotment to the -401,11
-401,117,
owners (or 7,508.2
508.26
shareholders) 6
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 5,730,25 21,832,45 4,422,320 226,517,7 467,252 28,252,05
end of this term 0,118.00 3,907.50 .00 95.62 ,231.11 1,732.23
Amount in last year
In RMB
168
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Amount in last year
Other Equity instrument
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Retaine
preferre Sustain Shares in owners’
Capital Other reserves ensive d reserve reserves d profit
d stock able stock equity
Income
debt
I.Balance at the 4,939,92 15,130,19 4,422,320 169,054,8 696,998 20,931,75
end of last year 8,983.00 1,736.27 .00 46.15 ,223.03 1,468.45
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
4,939,92 15,130,19 4,422,320 169,054,8 696,998 20,931,75
beginning of
8,983.00 1,736.27 .00 46.15 ,223.03 1,468.45
current year
III.Changed in the 790,321, 6,731,015 36,089,75 -20,987, 7,536,439
current year 135.00 ,936.63 4.38 239.44 ,586.57
（I）Total
360,897 360,897,5
comprehensive
,543.75 43.75
income
(II) Investment or
790,321, 6,731,015 7,521,337
decreasing of
135.00 ,936.63 ,071.63
capital by owners
1．Ordinary Share
790,321, 6,728,522 7,518,843
s invested by share
135.00 ,710.65 ,845.65
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
2,493,225 2,493,225
4．Other
.98 .98
-381,88
（III）Profit 36,089,75 -345,795,
4,783.1
169
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
allotment 4.38 9 028.81
1.Providing of 36,089,75 -36,089,
surplus reserves 4.38 754.38
2．Allotment to the -345,79
-345,795,
owners (or 5,028.8
028.81
shareholders) 1
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4.Change amount
of defined benefit
plans that carry
forward
Retained earnings
5．Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
end of this term 0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
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 stock
170
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
limited company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang
Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua Hebei
Import and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par value
of 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 stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total
number 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 Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the
Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng
Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million
shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company
increased 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 Company
privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share
on April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of the
Company was changed to RMB 903.00 million.
The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Tu
nghsu 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 G
lass 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 of
association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders,
and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31,
2013. Thus, the registered capital of RMB1,806 million applied to add by the company should be transferred into the
share capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2,709
million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Tunghsu Optoelectronic Technology Co., Ltd. (Draft)” and
its 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 of
RMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3.08
million 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 after
the 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, the
company shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, and
the share capital is RMB2,662,080,001.00 after changed.
Referring to the resolutions determined on the 27th Meeting of the 7th Board of Directors of the company, the 31st
Meeting of the 7th Board of Directors, the 1st General Meeting of Extraordinary Shareholders in 2015, the 38th
Meeting of the 7th Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
171
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Tunghsu Photoelectric
Technology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The
planned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of
the 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 approved
on the 43rd Meeting of the 7th Board of Directors of the company convened on October 29, 2015, the company
plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity
incentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financial
leasing are considered as operating leasing
According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to Tunghsu
Optoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved
in the 7th 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 issued
stocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and
the 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 the
company shall issue 262,626,262 shares to Shanghai Huimao Enterprise Management Co., Ltd (hereinafter
referred 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 to
Sichuan Changhong Electric Appliance Co., Ltd (hereinafter referred to as "Sichuan Changhong") for purchasing
the 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 the
matching funds, The issue price per share is 9.26 yuan;thus the capital stock after the change became RMB
5,730,250,118.00.
As of June 30, 2018, Registered capital : RMB 5,730,250,118.00, Legal representative: Wang Lipeng,
Enterprise unified social credit code: 911301001043959836, Registered Address: No.9, Huanghe Road,
Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
Tunghsu Optoelectronic Parent Company is the Tunghsu Group，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 61th meeting of the 8th Board of
Directors on April 29, 2019.
The company's business scope: investing in the project investments with its own funds; research and
development of machinery equipment and electronic products; manufacturing and production-process
development of various non-standard equipments and components; processing and sales of electronic products for
grinding machine (excluding public safety equipment and devices); self operated and agent import and export
business of various commodities and technologies; computer system integration, software development, technical
consulting; installation of electrical and mechanical equipment (not including pre-licensing ones), engineering
172
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
advice. (All of the above scope, excluded those prohibited or restricted by laws, regulations and State Council
decisions; matters needing approval by other departments can be operated after the approval).
In the reporting period, 22 subsidiaries and 93 sub-subsidiaries were included in the consolidation scope by
the company, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the
company increased by 33 and decreased by 2 companies year on year at this reporting period, see details at Note
8“Change of consolidation scope.
IV.Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the 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 Convention
of 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 of
accounting. Except for certain financial instruments, the Company adopts the historical cost as the principle of
measurement in the financial statements. The valuation will be made according to the lower one between the
amount of on-sales non-current assets after fair value deducts the predicted costs and the original book value
which conforms to the condition of being on-sales. When assets are impaired, provisions for asset impairment are
made in accordance with relevant requirements.
2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period,
and hasn’t the major issues impacting on the sustainable operation ability.
V. The company's major accounting policies, accounting estimates and prior errors
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement on compliance with accounting standards for business Enterprises
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 December
31, 2018, operational results, cash flow, and other relevant information of 2018.
173
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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 cycle
The 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 its
assets and liabilities.
4. Currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
174
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
5. Accounting treatments for a business combinations under common control and under non common control
The 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 under
common control and business combinations not involving enterprises under common control.
(1) A business combination involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of 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, the
party obtaining the control right over other enterprises involved in the combination on the combination date is the
combining party, while other enterprises involved in the combination is the combined party. The combination date
is 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 combining
entities at the date of the combination. The difference between the carrying amount of the net assets obtained and
the carrying amount of the consideration paid for the combination [the aggregate face value of shares issued as
consideration] is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb
the 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 are
incurred.
（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 of
the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination. For the business combination not involving enterprises under common control, the party obtaining
the control right over other enterprises involved in the combination on the combination date is the combining
party, while other enterprises involved in the combination is the combined party. The combination date is the date
on which one combining enterprise obtains control of other combining enterprises.
175
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities
incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree, the
intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy
services and other associated administrative expense attributable to the business combination are charged to profit
or loss when they are incurred. The costs of issuing equity or debt securities as a part of the consideration for the
acquisition are included in the carrying amounts of these equity or debt securities upon initial recognition. The
contingent costs as a part of the consideration for the acquisition are included in the cost of combination on fair
values 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 the
recognition 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 and
recognised as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the
acquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If
after that reassessment, the cost of combination is still less than the acquirer’s interest in the fair value of the
acquiree’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 new
information indicating that relative situation exists and the economic benefit associated with the deductible
temporary difference will flow to the Company, the goodwill will be reduced accordingly. If the goodwill is less
than the deductible temporary difference, the difference will be charged into profit or loss in current period.
For a business combination involving enterprise not under common control and achieved in stages, it should 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 Article
51 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 equity
investment” 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 before
the acquisition date involving other consolidated incomes, at the disposal date, other consolidated incomes related
to this investment shall be subjected to accounting treatment (i.e. except the corresponding share accounted by
equity 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 the
acquiree for the direct disposal of relevant assets or liabilities.
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In consolidated financial statement, the share equity held before the acquisition date shall be measured again
according to the fair value of this share equity on the acquisition date, the balance of the fair value and its book
value shall be counted in the current investment income; when the share equity held before the acquisition date
involving other consolidated incomes, other consolidated incomes related shall be subjected to accounting
treatment (i.e. except the corresponding share accounted by equity 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 of the acquisition date) on the same basis as that adopted by the acquiree for the direct disposal
of relevant assets or liabilities.
6. Preparation on consolidation financial statements
(1) Preparation on consolidation financial statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increased
through the business combination under non-common control, the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control, the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When preparing the consolidated financial statement, the necessary adjustment shall be made according to the
accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control, the financial statement shall
be 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 of
the 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 from
the 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.
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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 difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are
transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or
the 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 for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes V, 14
“Long-term Equity Investment” or Notes V, 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment 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 or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete 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 Investment
in Subsidiary without Control Lost” (please refer to V 14, (2) ④ in Notes III,) and “The Control on Original
Subsidiary 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 right
lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
7. Accounting treatment for classification and co-operation of joint arrangement
Joint 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 involving
in the joint arrangement. Under co-operation, the Company has joint control and rights to the relevant assets and
liability of the arrangement. Under joint venture, the Company only has joint control and rights to the net assets of
the arrangement.
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The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies
stated in "Long-term Stock Ownership for Equity Method Calculation" in Note V 14 (2).
Under co-operation, the Company recognizes 1) its solely held of assets and liability, 2) assets and liabilities
jointly 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 incurred
based on share proportions.
When the Company invests, sells or purchase assets (the asset does not constitute a business, the same below), to
or from the co-operation, the Company only recognizes the profit or loss belong to other joint parties before
selling those assets to third party. If those assets are impaired in compliance with Accounting Standards for
Business Enterprises No.8-Assets impairment, the Company should recognize loss for all the invested or sold
assets to co-operation. For the assets purchased from co-operation, the Company should recognize loss based on
share proportion.
8. Cash and cash equivalent
Cash 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 an
insignificant 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 the
foreign currency amount by the spot exchange rate on the transaction dates, while the foreign currency exchange
business or transactions relating to foreign currency exchange are recorded in the functional currency by applying
to 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. The
exchange gains or losses arising from occurrence of transactions and exchange of currencies are recognized in
profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing
denominated in foreign currency that qualifies for capitalization are capitalized as part of the cost of the qualified
asset during the capitalization period; (2) exchange differences arising from changes in the carrying amounts of
available-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 functional
currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain
unchanged. Foreign currency non-monetary items measured at fair value are re-converted at the spot exchange
rate on the date the fair value is determined. Difference between the re-converted functional currency amount and
the 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
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As an accounting treatment in respect to a foreign operation, if there are monetary items relating to the investment
to 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 sheet
date. Equity items, excluding retained earnings, are converted to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are converted to Renminbi at the rates that
approximate the spot exchange rates at the transaction dates. The beginning balance of retained earnings is the
prior year ending balance of retained earning converted, while the ending balance of retained earnings is sum total
of 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 the
spot exchange rate at the transaction date. The effect of foreign exchange fluctuation is treated as recociling item
that 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 the
foreign 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 instruments
Financial 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. For
financial assets and financial liabilities at fair value through profit or loss, transaction costs are recognized in
profit and loss for the current period. For other financial assets and financial liabilities, transaction costs are
included 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 transaction
between market participants at the measurement date. If an active market exists for specific financial assets or
liabilities, quoted prices in active markets for identical assets or liabilities are used as fair value. Quoted prices in
an active market refers to the prices which are readily available regularly in exchange markets, brokers, industry
associations and other pricing institutions and represents the prices at which the assets or liabilities are traded in
an arm length transaction in the marketplace. If an active market does not exist, the Company uses valuation
model to determine the fair value. Valuation model takes into account quoted price for identical or similar assets
or 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
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All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On
initial recognition, the Company's financial assets are classified into one of the four categories, including financial
assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and
available-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 designated
upon initial recognition as at fair value through profit or loss.
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A financial asset held for trading is the financial asset that meets one of the following conditions: A the financial
asset is acquired for the purpose of selling it in a short term; B. the financial asset is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the
enterprise 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 a
derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted
price 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 initial
recognition, as financial assets or financial liabilities at fair value through profit or loss and of which the variation
is included in the current profits and losses: A. The designation is able to eliminate or obviously reduce the
discrepancies in the recognition or measurement of relevant gains or losses arising from the different basis of
measurement of the financial assets or financial liabilities; B. The official written documents on risk management
or 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 will
be 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 or
losses related to financial assets at fair value through profit or loss and dividend or interest income related to those
financial 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 fixed
maturity 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 the
current period.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial
liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest
expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly
discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where
appropriate, 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 contractual
terms of the financial asset or financial liability (without considering future credit losses), and also considers all
fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
③ Loans and Receivables
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in 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 or
loss 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 recognition
as available for sale, and financial assets that are not classified as financial assets at fair value through profit or
loss, 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 cost
at period end, which is the initially recognized amount of financial asset or financial liability deducting the already
paid principal, plus or minus the accumulated amount of amortization incurred from amortizing the balance
between the initially recognized amount and the amount of the maturity date by adopting the actual interest rate
method and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments in
equity instruments is the initially recognized amount at acquisition.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from
changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except
that impairment losses and exchange differences related to amortized cost of financial assets are recognized in
profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and
recognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured and derivative financial assets that are linked to and
must 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-sale
financial assets are held, are recognized in investment income.
Impairment of Available-for-sale financial assets
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
If all the related information considered indicates that the decline in fair value of available-for-sale financial assets
is significant or non-temporary decline, impairment incurred for available-for-sale financial assets. Significant
decline refers to accumulated decline in fair value exceed 20%; non-temporary decline refers to continuous
decline in fair value more than 12 months.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value
previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The
amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the
acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment
loss 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 objective
evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after
the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of
impairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while the
amount 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 in
an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the impairment loss on such financial asset
is 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 the
financial asset expire; or ② it transfers the financial asset and substantially all the risks and rewards of
ownership 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 continuing
involvement in the transferred financial asset and recognized an associated liability. The extent of the enterprise's
continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the
transferred 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 the
transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in
profit or loss.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
If the transfer of partial financial asset satisfies the derecognition criteria, the entire book value of the transferred
financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition
has not been stopped, be apportioned according to their respective relative fair value and the difference between
the amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The book
value of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whose
recognition has been stopped, and the portion of the accumulative amount of the changes in the fair value
originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped.
In terms of financial assets sold with recourse or financial assets transferred by endorsement, the Company shall
determine 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 the
financial asset to the transferee, it shall stop recognizing the financial asset. If it retained substantially all of the
risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. If
the 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 assets
in 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 or
loss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at their
fair values. For the financial liabilities at fair value through profit or loss, the transaction expenses thereof shall be
directly recorded into the profit or loss of the current period; for other financial liabilities, the transaction expenses
thereof 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 are
classified under the same criteria as the transactional financial assets and designated financial assets at fair value
through profit or loss.
On subsequent measurement of financial liabilities at fair value through profit or loss, gain or loss arising from
changes in fair value and dividends and interests related to the financial liabilities are recognized in the profit or
loss of the current period.
② Other Financial Liability
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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 subsequently
measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method, with gain or loss arising from derecognition or amortization recognized in profit or loss.
(5) Derecognition of financial liabilities
The 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 replace
the original financial liability with a new financial liability with substantially different terms is accounted for as an
extinguishment 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 the
carrying 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 liabilities
When 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 the
financial liability simultaneously, financial assets and financial liabilities are offset with the net amounts presented
on the balance sheet. Otherwise, financial assets and financial liabilities are separately presented on the balance
sheet without offsetting.
(7) Equity Instruments
An 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 the
Company 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 The accounts receivable with single-item amount of RMB 5
standard for significant amount million and above
The method of separate provision for bad debts of the accounts Impairment test shall be separately conducted. If the test proves
receivable with significant single-item amount the occurrence of impairment, impairment loss shall be
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
determined and provision for bad debts shall be made according
to the difference between the present value of its future cash flow
and its book value. For the accounts receivable whose
impairment is not proved by separate test, such accounts
receivable, together with those with insignificant single-item
amount, are divided into some groups based on similar
characteristics of credit risks. For these groups of accounts
receivable, provision for bad debts shall be made according to
the regulation mentioned in "(2) provision for bad debts shall be
made for accounts receivable on group basis".
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
Other Group Other method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Including 1 year） 5.00% 5.00%
During the credit period 0.00% 0.00%
The credit period within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 70.00% 70.00%
Over 5 years 100.00% 100.00%
In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group ,adopting other method for bad debt provision：
√ Applicable □ Not applicable
Name Account receivable proportion Other account receivable proportion
Affiliated company exchanges 0.00% 0.00%
Security deposit 0.00% 0.00%
Deposit 0.00% 0.00%
Petty cash 0.00% 0.00%
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
Reason for separate provision for bad debts The accounts receivable with single-item amount of less than
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
RMB 5 million whose risk characteristics can’t be reflected by
provision for bad debts on basis of group.
Provision for bad debts is made according to the difference
Method of provision for bad debts between the present value of its future cash flow and its book
value.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation
materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,
development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be
measured 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 goods
shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials
shall 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 shall
make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for 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 costs
of 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 commercial
non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meeting
two of the following conditions, the book value will be divided into on-sales category: (1) When a certain
non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with
the convention , assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment,
predicting that selling will be completed within one year.( The selling, which can only be sold after acquiring
approval from relevant authorities or supervision departments according to relevant provision requirement , has
acquired 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 condition
that the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or
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remeasured and divided into on-sales category on balance sheet date, if its book value is higher than the net
amount after fair value deducts selling expense, the book value will be written down to the net amount after fair
value deducts selling expense, and the written-down amount will be confirmed as assets impairment losses and
counted 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, Disposal
Groups and Operation Termination
If any increment occurs in the net amount after the on-sales non-current assets on the subsequent balance
sheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred back
within the amount of asset impairment losses confirmed after being divided into on-sales category, and the amount
transferred back will be counted into the current profits and losses. There will be no restitution for asset
impairment losses confirmed before being divided into on-sales category. The amount deducted previously of
on-sales disposal group shall be recovered, and when after being divided into on-sales category, it will be
transferred back within the amount of impairment confirmed by non-current assets by the means of the measure
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, Disposal
Groups and Operation Termination, and the amount transferred back will be counted into the current profits and
losses. There will be no restitution for the book value of goodwill which has been deducted and for asset
impairment losses confirmed before being divided into on-sales category which can be adopted by the measure
stipulation of this principle.
No depreciation and amortization will be made in the non-current assets which are on sales or in the disposal
group. Confirmation will continue to be made in the debt interest in on-sales disposal group as well as other
expenses.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-sales
category, the Company will not continue to divide it into on-sales category or remove the non-current assets from
the 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 the
situation 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 and
losses which are yet to be confirmed into the current profits and losses.
14.Long-term Equity Investment
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Long-term equity investments refer to all investments that are the Company with control of, joint control of, or
significant influence over, an investee. The Company accounted investments that are the Company without
control 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 V 10 “Financial instruments” for detail.
Joint control refers to the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant
influence refers to the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies.
(1) Initial measurement
For business combination under common control, if the consideration of the merging enterprise is that it makes
payment in cash, transfers non-cash assets or bear its debts, 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 the long-term equity
investment. 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 against
the capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. If the
consideration 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 the
long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while
the difference between the initial cost of the long-term equity investment and total face value of the shares issued
shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be
adjusted. Business combination under common control achieved in stages by several transactions shall determine
whether the transactions belong to one package. If the transactions belong to one package, the Company
accounted these transactions as one transaction with control of the investee. If the transactions do not belong to
one package, on the date of combination, the Company shall regard the share of the book value of the owner's
equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the
initial cost of the long-term equity investment and the sum of book value of long-term equity investments prior to
the combination and the book value of consideration paid at the date of combination in order to achieve control of
the investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retained
earnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arising
from equity investment under equity method before the combination date or recognized with available-for-sale
financial assets.
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For business combination under different control, the Company accounts initial cost of long-term equity
investment as combination costs on the acquisition date. Combination costs refer to the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
acquirer. Business combination under different control achieved in stages by several transactions, shall determine
whether the transactions belong to one package. If the transactions belong to one package, the Company accounts
these transactions as one transaction with control of, joint control of, significant influence over, the investee. If the
transactions do not belong to one package, the initial cost of long-term equity shall be accounted under cost
method and recognized amount shall be the sum of book value of long-term equity investment before acquisition
and cost of additional investment. For equity investments previously accounted under equity method, other
comprehensive income related to these investments does not change. For equity investments previously accounted
as financial assets available for sale, difference between fair value and book value and accumulated changes in
fair value originally recorded in other comprehensive income shall be transferred to profit or loss of current
period.
The direct cost for the business combination of the combining party shall, including the expenses for audit,
assessment and legal services, be recorded into the profits and losses at the current period.
Besides the long-term equity investments formed by business combination, the initial cost of a long-term equity
investment obtained by other means shall be initially recognized at cost.The cost shall be ascertained in
accordance with the provisions as follows: (a) The initial cost of a long-term equity investment obtained by
making payment in cash shall be the purchase cost which is actually paid; (b) The initial cost of a long-term equity
investment 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 investment
contract or agreement; (d) The initial cost of a long-term investment obtained by the exchange of non-monetary
assets shall be the fair value or book value of transferred assets. (e) The initial cost of a long-term investment shall
be the fair value of the long-term investment; etc. The initial cost also consists of the expenses directly relevant to
the obtainment of the long term equity investment, taxes and other necessary expenses. Long-term equity
investment which, due to additional investment, can exercise significant influence over, joint control of, but not
control of, the investees, shall recognize its cost as the sum of fair value of long-term equity investment before
additional investment and cost of additional investment according to Accounting Standard for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Subsequent Measurement and Recognition Method
Long-term equity investments which are the Company with joint control of (excluding joint operation), significant
influence over the investees shall be accounted under equity method. Besides, long-term equity investments which
are 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 or
disinvestments shall make an adjustment to the cost of long-term equity investment. The investment income
recognized by the Company shall be limited to the dividends or profits declared to distribute by the invested entity,
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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 adjustment
is made to the initial investment cost. Where the initial investment cost is less than the Company’s share of the fair
value 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 comprehensive
income made by the investee as investment income and other comprehensive income respectively, and adjust the
carrying amount of the long-term equity investment accordingly; The carrying amount of the investment is
reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to
the 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 of
the 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 by
the investee are not consistent with those of the Company, the Company shall adjust the financial statements of
the investee to conform to its own accounting policies and accounting period, and recognize investment income
and other comprehensive income based on the adjusted financial statements. For the Company's transactions with
its associates and joint ventures where assets contributed or sold does not constitute a business, unrealized
intra-group profits or losses are recognized as investment income or loss to the extent that those attributable to the
Company's proportionate share of interest are eliminated. However, unrealized losses resulting from the
Company's transactions with its associates and joint ventures which represent impairment losses on the transferred
assets are not eliminated. When the assets invested by the Company to associates or joint ventures constitute an
operation, and the investors thereafter own long-term equity investment without control of the Company, fair
value of the operation invested shall be accounted as cost of additional long-term equity investments, and
difference between initial recognized cost of additional long-term equity investments and its book value shall be
accounted in the profit or loss of current period. When the assets sold by the Company to associates or joint
ventures constitute an operation, the difference between consideration paid and book value of the operation shall
be recorded in profit or loss of current period. When the assets bought by the Company from associates or joint
ventures constitute an operation, gain or loss related shall be recognized according to Accounting Standard for
Business Enterprises No.20-Business Combination.
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The Company discontinues recognizing its share of net losses of the investee after the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of its net investment
in the investee is reduced to zero. If the Company has incurred obligations to assume additional losses of the
investee, a provision is recognized according to the expected obligation, and recorded as investment loss for the
period. Where net profits are subsequently made by the investee, the Company resumes recognizing its share of
those 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, shall
adjust capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
(4) Disposal of long-term equity investments
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In consolidated financial statements, when parent company partially disposes long-term equity investments
in 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 shall
be made in accordance to Note V 6 (2).
Under other circumstances, for disposal of long-term equity investment, the Company shall derecognize such
investment and recognize in profit or loss the difference between the proceeds received, and the carrying amount
of the investment in the associates and joint ventures.
In terms of long-term equity investments accounted under equity method, the accounting method after
disposal shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income in relation to that investment on the same basis as would have been required if the investee
had 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 disposal
shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income, arising from according equity method or recognition and measurement standard of
financial instruments before control of investees, in relation to that investment on the same basis as would have
been required if the investee had directly disposed of the related assets or liabilities. The amount in other
comprehensive 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 of
individual financial statements, if the Company with retained shares after disposal can still joint control, or
influence over, the investee, the Company shall account for the investment under equity method and retained
shares shall be adjusted as would have been required if the retained shares had been recorded on initial recognition
under 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 of
financial instruments and recognize in profit or loss difference between the fair value of any retained shares and
carrying amount of the investment at the date of control lost. The Company shall account for amount previously
recognized in other comprehensive income, arising from according equity method or recognition and
measurement standard of financial instruments before control of investee in relation to that investment on the
same basis as would have been required if the investee had directly disposed of the related assets or liabilities. If
equity 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; if
retained 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.
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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 and
difference between fair value and carrying amount shall be recorded in current period profit or loss. The Company
shall account for amount previously recognized in other comprehensive income arising from equity method in
relation to that investment on the same basis as would have been required if the investee had 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.
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 to
control lost, the difference between proceeds received and carrying amount of investment sold shall be recorded in
other comprehensive income first and transferred to current period profit or loss when control lost.
15. Investment real estate
The measurement mode of investment property
The measurement by the cost method
Depreciation 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 the
property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while
other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in
accordance with the relevant regulations for fixed assets or intangible assets.
16. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental 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 to
the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation methods
Estimated useful Estimated residual value
Type Detail Depreciation rate(%)
rate
Life
Over the period of title
(the period specified on
the real estate title
House and Building Straight-line method 5 3.17
certificate or land use
right certificate) or 30
years in case of no period
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of title
Kiln Straight-line method 5 5 19
Platinum passage Straight-line method 3 95.50 1.5
Glass flat-panel and other
Straight-line method 15 5 6.33
equipment
other equipment Straight-line method 10 5 9.5
Transportation
Straight-line method 5 5 19
equipment
According to the length
Temporary equipment Straight-line method 0
of the project
Testing, quality
inspection, office
Straight-line method 5 5 19
equipment, tools and
other tool
The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost has
no 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 its
accumulated 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 value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one, adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one, adjustment will be made for the estimated
one.
(3) Basis of asserting, valuation and depreciation method for fixed assets under financing lease
Fixed assets leased by the Company shall be recognized as fixed assets acquired under finance leases when
they meet one or more of the following criteria: ① Upon expiration of the lease term, the ownership of the
leased assets shall be transferred to the Company. ② The Company has the option to purchase the asset at a price
that is expected to be sufficiently lower than the fair value at the date of the option becomes exercisable for it to
be reasonably certain, at the inception of the lease, that the option will be exercised. (3) the lease term accounts
for a substantial proportion of the useful life of the leased asset, notwithstanding that the ownership will not be
transferred; ④ At the inception of lease, the present value of minimum lease payments amount to substantially
all of the fair value of leased asset. ⑤ Leased assets are of a specialized nature that only the Company can use
them without major modifications. Forthe fixed assets that are under finance leases, if the ownership of the
leasedassets can be reasonably determined at the end of the lease term, thedepreciation shall be made within the
service life of such leased assets;otherwise the depreciation shall be made for a shorter period between the
leaseterm and the remaining service life of such leased assets. (4) Major repair expenses: The major repair
expenses incurred by the Company in carrying out regular inspections of fixed assets, if there is conclusive
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evidence showing that they meet the conditions for recognition of fixed assets, are included in the cost of fixed
assets, while those that do not meet the conditions for recognition of fixed assets are included in the profits and
losses of the current period. Fixed assets are under depreciation during regular overhaul intervals.17. Construction
in progress
17 Whether the Company needs to comply with the disclosure requirements for specific industries
No
The 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 expenses
Borrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses,
exchange differences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to the
acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and
borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that
are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or
sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of the capitalized interest is the
actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the
borrowed funds before being used on the asset or any investment income on the temporary investment of those
funds. Where funds are borrowed under general-purpose borrowings, the Company determines the amount of
interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the
excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying
asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognized as a financial expense when incurred.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need to
be acquired, constructed or produced through a long period of time, in order to become ready for its intended use
or sale.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the
borrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the
special borrowings times the capitalization rate of the used general borrowings, which is determined by the
weighted average interest rate of the general borrowings.
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19.Biological Assets
20.Oil & Gas assets
21.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
The 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, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; 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 a
limited 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 Company
records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures 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 is
feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product
generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used
internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to
complete the development of the intangible assets and the intangible assets can be used or sold; the development
expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,
the project will enter the development stage.
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22. Impairment of the long-term assets
Fixed 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 for
impairment if there is any indication that an asset may be impaired at the balance date. If there is an indication that
the 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 tested
each 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’s
carrying 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 shall
be determined as the price as stipulated in the sales agreement in the orderly transaction. Where there is no sales
agreement but there is an active market of assets, fair value shall be determined as the quoted price in active
market for identical assets or liabilities. Where there is no sales agreement and no active market of assets, fair
value shall be estimated according to the best information available. The disposal expenses shall include the
relevant legal expenses, relevant taxes, truckage as well as the direct expenses for bringing the assets into a
marketable state. The present value of the expected future cash flow of an asset shall be determined by the
discounted cash with an appropriate discount rate, on the basis of the expected future cash flow generated during
the continuous use or final disposal of an asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group 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 of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the
synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset
group or group of asset groups, including the goodwill allocated, is lower than its carrying amount, the
corresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount of
goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying
amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts of
other assets.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the
subsequent periods.
23.Long-term amortizable expenses
Long-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
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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 off
entirely in the twelve months following the reporting year the employees have provided their services, which
excludes those given for employment termination. Short-term compensation includes payroll, bonus, allowances
and subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birth
insurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profit
share plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-term
compensation incurred during the accounting period that the employees provide their services and records in
current profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefits
Post-employment benefits are mainly defined contribution plans, which include basic pension, unemployment
insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss
when incurred.
(3) Accounting methods for demission benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourage
employees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation,
post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for the
disabled, long-term profit sharing plans etc.
25. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to
receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
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26 Share-based Payment
(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for, the
options pricing model is adopted to determine the fair value.
(3) Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
27.Preferred shares, perpetual capital securities and other financial instruments
28.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow
of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco
me, including revenue from selling goods, income of labor ,transferring assets use right and
Construction contract income.
(1) Merchandise sales
The merchandises will be transferred to the purchaser when they meet with both the major risk and reward of
the merchandise ownership; The Company will no longer keep the continuous management right which is usually
related to the ownership, and no longer carry out valid control on the merchandises sold; The amount of income
can be reliably calculated; Relevant economic interest can inflow; Relevant costs incurred or about to incur can be
reliably calculated to confirm the realization of the income of merchandise sales.
Specific methods for revenue recognition: Companies which are engaged in photoelectric display materials,
graphene and electronic communication products, according to the stipulations in the sales contract, will have
their revenue recognized after the goods have been delivered to clients and checked and accepted by clients;
Those which are engaged in passenger car business, according to the agreement, Confirm the sales revenue when
the goods are delivered to the customer and invoiced according to the contract.; Those which are engaged in
export sales business will have their revenue recognized when receiving the export certificate(customs
declaration).
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue c
an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra
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nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured
For the services that start and end during the same accounting year, the revenue shall be recognized upon
completion; if the services end in a different accounting year and the service transaction results can be measured
reliably, 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 incurred
and 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 t
reated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that h
ave occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not e
xpected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is r
ecognized.
Contract or agreement entered into with other companies, including the sale of goods when providing services, the
sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the s
ale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of
goods and rendering of services can not be distinguished, or can be distinguished but can not be measured separat
ely, should be part of the sale of goods and provision of services as part of the total sales of goods.
If property management has provided service, economic interest related to property management service is
able 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 Alienation
The right of using transferred asset includes lease earning, intermediate business income, interest income and
usage fee income.
When the right of use the transferred asset can, at the same time, conform with the condition that relevant
interest income is likely to inflow and the income amount can be reliably calculated, the income of the right of use
the 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 incurred
occupies the predicted total contract cost
That the result of construction contract can be reliably estimated refers to that the following can be conformed
with at the same time: 1)The total income of contract can be reliably calculated; 2)The economic interest related
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to the contract has major possibility to flow into the enterprise; 3)The contract costs actually incurred can be
clearly distinguished and reliably calculated; 4)The completion progress of contract and the costs which still needs
to 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 contract
income will be confirmed according to the actual contract costs which can be recoverable, and the contract costs
will be confirmed the contract fee at its current period; The contract costs which can not be recoverable will be
confirmed 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 fee
related 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 as
the current fee.
The accumulated cost of the construction contract which has incurred, the accumulated gross profit (loss) has been
confirmed, and the payment amount which has been settled will be presented as the net amount after offset in the
balance 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 to
be settled.The part, where the sum that the payment amount settled of the construction contract is more than the
accumulated cost incurred and the accumulated gross profit (loss) confirmed, will be presented as the one which
has 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 the
government, not including the capital into which the government invests as a investor who has relevant ownership
interest. 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 the
amount receivable. Those which related to non-monetary assets will be measured according to fair value; For any
fair value which can not be reliable to be obtained, the assets will be measured according to the nominal amount,
and the one measured according to the nominal amount will be directly counted into the current profits and losses.
The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss
by stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the
pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocated
pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and the
recognized government grant needs to be refunded, then it shall write down the carrying amount of the relevant
deferred income and the excess part shall be included in the current profit and loss.
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2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The 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 loss
for the period when the relevant costs, expenses or losses are recognized; those government grants used for
compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits
and losses.
For the government subsidy which includes both the assets related part and the income related part, the different
parts are treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy related
to the income.
Government subsidies related to the daily activities of the company shall be included in other earnings in
accordance with the substance of the economic business. Government subsidies not related to the daily activities
of 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 the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. 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 such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that
can 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 during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant 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
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the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely 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 a
finance 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 loss
over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable 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 be
distinguished 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 Repurchase
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the
stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to
submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the
unlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the
repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the
unlocking period, the restricted stock with the unlocking application qualification in the current period cannot be
unlocked 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, the
Company’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 to
stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □ Not applicable
Contents and causes for changes of
Approval procedures Remarks
accounting policy
The company will hold the 49th meeting of
Implementation of the new accounting eighth board meeting on October 30,
standards for enterprises - "notice on the 2018 to review and approve the Notices on
revision and issuance of the 2018 annual the change of accounting policy. Notice on
general financial statement format for the revision and issuance of the format of
enterprises" (finance and accounting general corporate financial statements for
[2018] no. 15) implementation of the new the year 2018 (finance and accounting
accounting standards for enterprises [2018] no. 15)
①Accounting policy changes arising from the implementation of the new accounting standards for business
enterprises
The Ministry of Finance issued the Notice on Amending the Format of Financial Statements of General Enterprises in 2018
(CK No. [2018] 15.
The impact of the company's implementation of this accounting policy on the items and amounts presented in
the previous financial statements is as follows：
No Name of affected item in the statements Affected amount of December 31, 2017 / 2017
Increase + / decrease - -
1 Notes receivable -538,128,584.84
Account receivable -7,873,419,684.42
Notes receivable & account receivable +8,411,548,269.26
2 Interest receivable -49,456,785.29
Other account receivable +49,456,785.29
3 Notes payable -1,063,897,679.89
Account payable -4,636,989,039.65
Notes payable & Account payable +5,700,886,719.54
4 Interest payable -107,195,147.20
Dividend payable -35,000,000.00
Other account payable +142,195,147.20
5 Administration expenses -256,991,555.91
R & D expenses +256,991,555.91
(2) Change of main accounting estimations
□Applicable√ Not applicable
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34.Other
1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written in
current 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 amount
is 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 the
temporary 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 trade
is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it
happens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint
enterprises and associated enterprises. The temporary difference return time may be controlled and may not return
in foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income tax
liabilities according to applicable tax between expected recovered assets and paid liabilities, and also the company
will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of
balance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If it
was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it was
likely 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 in
improving 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 asset
and is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is ready
to put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it as
equivalent accumulated depreciation.
3. Judgement and Estimation for Significant Accounting
During the process of applying accounting policies, due to to inherent uncertainties in business activities, the
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Company requires judgement, estimation and assumption for the book value of the report items which can not be
measured 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 such
judgement, 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 based
on going concern. The changes of accounting estimation only influence those which are influenced at the current
period, and of which the influence number will be confirmed at that current period; For those changes which have
influence both at the current period and the future period, the influence number of them will be confirmed at that
current period and the future period.
On balance sheet date, the significant fields where the Company needs to make judgement, estimation and
assumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction Contract
When the result of construction contract can be estimated reliably, the Company will confirm the contract revenue
on balance sheet date by adopting Percentage of Completion Method. The percentage of completion will be
confirmed according to Article 28-Revenue Recognition Principle in Note V and it will be totalized in each
accounting 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 the
contract. The project management will make judgement mainly by means of previous experience and work. The
total predicted revenue and total cost of the contract, as well as the estimation changes of contract execution result
will probably have effect on the operation revenue, the operation cost at the current changing period or at the
subsequent period, as well as the profits and losses during that period, and significant influence is likely to be
formed due to the above-mentioned changes.
(2) Provision for bad debts
The Company uses the allowance method to account for bad debt losses in accordance with the accounting policy
for accounts receivable. Impairment of accounts receivable is based on the assessment of the recoverability of
accounts 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 of
accounts receivable and the provision or reversal of bad debt provision for accounts receivable during the period
in which the estimate is changed.
(3) Inventory falling price preparation
According to the inventory accounting policy, the Company measures the lower of cost and net realizable
value, and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value,
obsolete and unsalable. The depreciation of inventories to net realizable value is based on the assessment of the
saleability of inventories and their net realizable value. Identification of impairment of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence and considering the
purpose of holding the inventory and the influence of events after the balance sheet date. The difference between
the actual result and the original estimate will affect the book value of inventory and provision or reversal of
inventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortization
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
After considering the salvage value of investment real estate, fixed assets and intangible assets, the company
shall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularly
reviews the service life to determine the amount of depreciation and amortization expenses to be included in each
reporting period. The service life is determined by the Company based on past experience of similar assets and
combined with expected technical updates. If there has been a significant change in previous estimates, the
depreciation and amortization expense will be adjusted in the future period.
(5) Deferred income tax assets
Insofar as it is highly probable that there will be sufficient taxable profits to offset losses, the company will
recognize deferred income tax assets for all unused tax losses. This requires the management of the company to
use a large number of judgments to estimate the time and the amount of future taxable profits, and combine the tax
planning strategy to determine the amount of deferred income tax assets that should be recognized.
(6) Income tax
In the normal business activities of the company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. It requires the approval of the tax authorities on whether some items can be
listed as deductible in the profit before tax. If there is a difference between the final recognized result of these
taxation matters and the originally estimated amount, the difference will have an impact on the income tax and the
deferred income tax of that period with the final recognition being made.
VI. Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
VAT Sales revenue 3%、10%、11%、16%、17%
Urban construction tax Turnover tax to be paid allowances 5%、7%
Enterprises income tax Taxable income 9%、10%、15%、16.5%、25%
VAT Technical services revenue 6%
Educational surtax Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 1%、2%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
2.Tax Preference
① On September 11, 2018,The Company was rated as the national high-tech enterprise with validity of 3 years.
As per the provisions of enterprise income tax law, the Company adopts 15% enterprise tax rate applicable for
high-tech enterprises for three years since 2018.
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.
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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 Company
adopts 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, the
Company adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑤On November 29, 2018,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the 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 2018.
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 Company
adopts 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% enterprise
tax 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 Company
adopts 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 Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑩On October 25, 2017,Beijing Xutan New Material Technology Co., Ltd. was rated as the national
high-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 Company
adopts 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% enterprise
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
tax rate applicable for high-tech enterprises for three years since 2016.
⒁On December 8, 2016,Chengdu Tunghsu Intelligence Technology Co., Ltd. was rated as the 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 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 originally
belongs to the local place, thus actually implementing the income tax rate of 9%.
⒃Guangxi Sunlong Automobile Manufacturing Co., Ltd, based on the Guangxi People’s Government’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 from
the 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 28th clause of “The People's Republic of China
Enterprise 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%.
According to the Notice of the Ministry of Finance, the General Administration of Customs, P.R. China and the
State Taxation Administration on Issues Concerning Tax Policies Related to the Further Implementation of the
Western Development Strategy (CS (2011) No. 58), Catalogue of Encouraged Industries in the Western Region
(Decree No. 15 of the State Development and Reform Commission of the People's Republic of China),
Announcement of the State Taxation Administration on Issues Concerning Enterprise Income Tax Related to the
Further Implementation of the Strategy for the Development of the Western Region (Announcement of the State
Administration No.12, 2012), Announcement of the State Taxation Administration on Implementing the Issues
Concerning Enterprise Income Tax in the Catalogue of Encouraged Industries in the Western Region
(Announcement of the State Administration No.14, 2015): From January 1, 2011 to December 31, 2020, the
enterprise income tax rate may be reduced and paid at 15% for those enterprises located in the western region
whose main business is the industrial projects specified in the Catalogue of Encouraged Industries in the Western
Region and whose main business income accounts for more than 70% of the total enterprise income in the current
year. In 2018, Tunghsu Construction Co., Ltd. shall enjoy this policy and pay enterprise income tax at the rate of
15%.
On October 12, 2018,Tunghsu(Yingkou) Optoelectronic Display 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 2018.
On November 124, 2018,Chongqing Jinghuateng 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 2018.
On November 30, 2018,Huzhou Mingshuo 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 2018.
211
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
3.Other
VII. Notes of consolidated financial statement
1. Cash and Bank Balances
In RMB
Items Year-end balance Year-beginning balance
Cash 2,593,055.78 2,461,658.94
Bank deposit 19,285,678,472.37 26,666,668,936.88
Other monetary assets 518,822,869.01 787,629,173.04
Total 19,807,094,397.16 27,456,759,768.86
Including：Total amount deposited
2,307,958.14 15,577,823.27
abroad
Other note
Note 1: The decrease of monetary fund at the end of the period compared with the beginning of the period is
mainly due to the increase of purchase payment in the current period.
Note 2：The amount of restricted cash and bank balances by the end of the period is RMB4,890,457,106.12. The
main types are l/c and acceptance bill deposit, time deposit certificate, pledged deposit certificate and letter of
guarantee deposit.
2.Financial assets measured at fair value through current profit and loss
3.Derivative financial assets
□Applicable √ Not applicable
4.Notes receivable & account receivable
In RMB
Items Year-end balance Year-beginning balance
Notes receivable 499,781,503.17 538,128,584.84
Account receivable 14,352,781,895.39 7,873,419,684.42
Total 14,852,563,398.56 8,411,548,269.26
212
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
（1）Notes receivable
（1）Classification Notes receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 142,810,310.93 267,121,031.99
Trade acceptance 356,971,192.24 271,007,552.85
Total 499,781,503.17 538,128,584.84
（2）Notes receivable pledged by the Company at the period -end
In RMB
Items Amount
Bank acceptance 0.00
Trade acceptance 0.00
Total 0.00
（3）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance
sheet date
In RMB
Amount derecognized as at December Amount underecognized as at January
Items
31,2018 1,2018
Bank acceptance 1,074,945,963.88
Trade acceptance 350,505,600.00
Total 1,074,945,963.88 350,505,600.00
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
In RMB
Items Transfer of accounts receivable at the end of the period
Trade acceptance 0.00
Total 0.00
Other note
(2) Account receivable
(1)Classification account receivables.
213
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
In RMB
Year-end balance Year-beginning balance
Provision for bad
Book balance Net Book balance Provision for bad debts Net
Category debts
carrying carrying
Proportio Proportio Proportio Proportion
Amount Amount amount Amount Amount amount
n（%） n（%） n（%） （%）
Accounts receivable
of individually
withdrawing bad debt 154,637, 154,637, 175,782 175,782,0
1.06% 100.00% 2.16% 100.00%
provision with 381.31 381.31 ,084.76 84.76
significant individual
amount
Account receivables
with provision for
14,450,5 7,975,7
bad debt made on a 97,758,8 14,352,78 102,357,1 7,873,419,6
40,744.2 98.94% 0.68% 76,808. 97.84% 1.28%
portfolio with similar 48.85 1,895.39 24.41 84.42
4 83
risk credit
characteristics basis
14,605,1 8,151,5
252,396, 14,352,78 278,139,2 7,873,419,6
Total 78,125.5 100.00% 1.73% 58,893. 100.00% 3.41%
230.16 1,895.39 09.17 84.42
5 59
Accounts receivable subject to individually withdrawing bad debt provision with significant individual amount..
√ Applicable □Not applicable
In RMB
Amount in year-end
Account receivable(Unit)
Account receivable Provision for bad debts Proportion% Reason
Inner Mongolia Not expected to be
Zhunxing Heavy Haul 136,922,651.00 136,922,651.00 100.00% recovered as a result of
Expressway Co., Ltd. litigation
Korea Sunlong Bus
17,714,730.31 17,714,730.31 100.00% Uncollectible
Co.Ltd
Total 154,637,381.31 154,637,381.31 -- --
Accounts receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Account receivable Provision for bad debts Proportion%
Withitem 1 year
214
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Within credit period 8,737,320,986.99
Within 1 year after credit period 1,070,531,899.41 53,526,594.96 5.00%
Subtotal within 1 year 9,807,852,886.40 53,526,594.96 5.00%
1-2 years 189,920,028.18 18,992,002.82 10.00%
2-3 years 35,279,812.36 10,583,943.71 20.00%
Over 3 years 20,711,170.96 14,656,307.36
3-4 years 10,708,702.83 5,354,351.42 30.00%
4-5 years 2,335,040.62 1,634,528.43 50.00%
Over 5years 7,667,427.51 7,667,427.51 70.00%
Total 10,053,763,897.90 97,758,848.86 100.00%
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
C.Accounts receivable of combinational withdrawing bad debt provision by Other methods
Group Name Amount in year-end Provisionfor bad debt
State subsidy. Local subsidy 2,810,817,714.40
Other Group 1,585,959,131.94
Total 4,396,776,846.34
Continued：
Group Name Amount in year- beginning Provision for bad debts
State subsidy. Local subsidy 2,160,997,954.00
Other Group 254,753,079.36
Total 2,415,751,033.36
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB116,848,675.65;The
amount of the reversed or collected part during the reporting period was of RMB55,997,072.38.
（3）The current accounts receivable written-offs situation
In RMB
Items Amount written-offs
Accounts receivable written-offs 86,594,582.28
Account receivables actually written-offs during the reporting period：
In RMB
Nature of account Reason for written Verification Arising form related
Name Amount written-off
receivable -off procedures transactions(Y/N)
215
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Relevant approval
Korea sunlong Bus Unexpected to
Goods 33,605,450.90 procedures have No
Co.Ltd recover
been implemented
Relevant approval
Siam Standard Unexpected to
Goods 29,683,695.30 procedures have No
Energy Co.,Ltd recover
been implemented
Foshan Sanshui Bankruptcy of the
Relevant approval
Yuejing Automobile enterprise is not
Goods 5,695,816.45 procedures have No
Transportation Co., expected to be
been implemented
Ltd. recovered.
Total -- 68,984,962.65 -- -- --
Account receivable verification instructions:
Note: the company has completed the related examination and approval procedures for the accounts receivable actually written off in
the current period
（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 is
RMB1,861,131,011.67, which accounts for 12.74% of the total receivables. The total amount of closing balance
for corresponding accrued bad-debt provision is RMB2,204,560.00.
Note：
Nil
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
Other note：
Note 1: the increase of accounts receivable at the end of the period compared with the beginning of the period is caused by the
increase of sales income in the current period and the corresponding increase of receivables.
Note 2: details of factoring financing at the end of accounts receivable are shown in note 70 to the consolidated financial statements
5. Prepayments
（1）Disclosed by aging:
In RMB
Amount in year-end Amount in year- beginning
Aging
Amount Proportion(%) Amount Proportion(%)
216
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Within 1 year 4,876,126,216.78 93.49% 1,771,543,035.64 87.65%
1-2 years 146,513,615.36 2.81% 196,545,999.45 9.73%
2-3 years 148,601,980.13 2.85% 27,318,669.74 1.35%
Over 3 years 44,172,407.24 0.85% 25,712,246.12 1.27%
Total 5,215,414,219.51 -- 2,021,119,950.95 --
Note：
Note Note: the prepayment amount of 220,285,693.73 yuan with aging over 1 year and significant amount is not
carried forward because the settlement conditions are not met.
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Note 1：As of December 31, 2018, the total amount of the top five companies in advance payments is RMB
1,860,688,593.47 , accounting for 35.68% of the total ending balance of prepayments of advance payments.
Other note：
6. Other accounts receivable
In RMB
Items Amount in year-end Amount in year-begin
Interest receivable 56,81196.67 49,456,785.29
Other receivable 1,069,179,058.88 1,044,890,336.32
Total 1,125,991,020.55 1,094,347,121.61
（1）Interest receivable
（1）Classification Interest receivable
In RMB
Items Amount in year-end Amount in year-begin
Fixed deposit 56,811,961.67 49,456,785.29
Total 56,811,961.67 49,456,785.29
（2）Important overdue interest
Other note：
Nil
217
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(2).Dividend receivable
（3）Other account receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Net Book Balance Bad debt provision Net
Category
Amount Proportio Amount Proportio carrying Amount Proportio Amount Proportion( carrying
n(%) n(%) amount n(%) %) amount
Other Accounts
receivable of
individually
9,056,8 9,056,821
withdrawing bad debt 0.83% 100.00%
21.74 .74
provision with
significant individual
amount
Other receivables
subject to provision 1,080,8
1,075,68 19,934,8 1,055,751 35,930,81 1,044,890,3
for bad debts on 98.19% 1.85% 21,148. 98.85% 3.32%
6,445.89 34.82 ,611.07 2.05 36.32
credit risk 37
characteristics basis
Other Accounts
receivable of
individually
19,817,7 6,390,26 13,427,44 3,471,1 3,471,143
withdrawing bad debt 1.81% 32.25% 0.32% 100.00%
16.37 8.56 7.81 43.41 .41
provision with
non-significant
individual amount
1,093,3
1,095,50 26,325,1 1,069,179 48,458,77 1,044,890,3
Total 100.00% 2.40% 49,113. 100.00% 4.43%
4,162.26 03.38 ,058.88 7.20 36.32
52
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□ Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other account receivable Provision for bad debts Proportion(%)
Within item 1 year
218
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Within credit period 270,308,778.79
Within 1 year after credit period 33,176,078.81 1,658,803.94 5.00%
Subtotal Within 1 year 303,484,857.60 1,658,803.94 5.00%
1-2 years 48,822,292.15 4,882,229.21 10.00%
2-3 years 26,135,402.05 7,840,620.61 30.00%
Over 3 years 9,516,681.87 5,553,181.06
3-4 years 7,896,375.72 3,948,187.86 50.00%
4-5 years 51,043.17 35,730.22 70.00%
Over 5 years 1,569,262.98 1,569,262.98 100.00%
Total 387,959,233.67 19,934,834.82
Note：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√ Applicable □ Not applicable
B. other receivable of individually withdrawing bad debt provision with not significant individual amount
Other receivable （Unit） Book balance
Provision for bad
Proportion(%) Reason
debts
Harbin Junqi Automobile Leasing Co., Ltd. 1,886,873.28 462,229.61 24.50 Estimated recoverable
amount
Shenzhen Haisheng Transportation Service Co., 2,765,624.60 1,103,381.59 39.90 Estimated recoverable
Ltd. amount
Shenzhen Xinguangtong Automobile 2,519,037.04 1,148,020.60 45.57 Estimated recoverable
Transportation Co., Ltd amount
Datong Longtuo Travel Co., Ltd. 1,969,899.05 571,507.85 29.01 Estimated recoverable
amount
Harbin Tianlu Automobile Leasing Co., Ltd. 1,866,499.22 801,693.19 42.95 Estimated recoverable
amount
Xuchang Yuntong Bus Travel Co., Ltd. 1,478,721.26 802,334.27 54.26 Estimated recoverable
amount
Datong Longlu Travel Co.,Ltd. 1,274,996.21 20,059.22 1.57 Estimated recoverable
amount
Huhehaote Juding Automobile Sales Co., Ltd. 1,105,311.68 144,270.58 13.05 Estimated recoverable
amount
Other 4,950,754.03 1,336,771.65 27.00 Estimated recoverable
amount
219
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Total 19,817,716.37 6,390,268.56 32.25
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB22,110,365.98, the account collected or switches back amounting to
RMB30,868,265.50.
Significant amount of reversed or recovered bad debt provision：
(3) Other account receivables actually cancel after write-off
In RMB
Items Amount
Other receivables actually written off 13,375,774.30
Of Which, Other receivable write-off：
In RMB
Nature of account Reason for written Verification Arising form related
Name Amount written-off
receivable -off procedures transactions(Y/N)
Confirm bad debt
Foshan Sanshui
Expected according to the
Yuejing Automobile Current account 3,471,143.41 No
unrecoverable report - Foshan
Services Co., Ltd.
Sanshui yuejing
According to the
company's
examination and
Korea Sunlong Bus Expected
Current account 9,904,630.89 approval report to No
Co.Ltd unrecoverable
confirm the loss of
South Korea
Sunlong bad debt
Total -- 13,375,774.30 -- -- --
Note：
(4) Other account receivables category by nature of money
In RMB
Nature Ending book balance Beginning book balance
Current account 305,650,872.46 283,565,756.25
Deposit 621,344,394.44 507,704,264.31
Personal official borrowing 59,482,116.20 84,988,267.52
Persona Returnable Insurance 5,863,292.04 2,564,564.43
Export tax refunds 1,037,409.54 6,453,137.37
220
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Advance payment 55,633,246.16 129,922,874.94
Project fund 37,831,545.08 68,529,879.43
Other 8,661,286.34 9,620,369.27
Total 1,095,504,162.26 1,093,349,113.52
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
Sichuan City Within 1 year after
Construction No.5 credit period:80
Infrastructure Deposit 200,000,000.00 million yuan, 1-2 18.26%
Development Co., years: 120 million
Ltd.
Sichuan Panxi
Lingshan Tourism
Enterprises fund
Investment 83,188,661.00 Within credit period 7.59%
transfers
Development Co.,
Ltd.
Chongqing Haolong
Enterprises fund
Platinum Industry 50,163,611.11 Within credit period 4.58%
transfers
Co., Ltd.
Tibet transportation
Deposit 30,305,918.60 1-2 years 2.77%
Dept.
Within 1
Chengdu Dingyang year:20,672,055.62
Deposit 25,024,900.25 2.28%
Technology Co., Ltd. yuan, the rest are 1-2
years
Total -- 388,683,090.96 -- 35.48%
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other note：
221
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Nil
7.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industries
No
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items Provision for bad Net carrying Provision for bad Net carrying
Book Balance Book Balance
debts amount debts amount
Raw materials 1,011,195,380.28 39,101,593.48 972,093,786.80 2,210,317,909.51 23,802,249.09 2,186,515,660.42
Processing
144,788,638.36 144,788,638.36 243,932,972.44 243,932,972.44
products
Stock goods 675,474,531.36 21,859,006.00 653,615,525.36 457,130,464.91 9,080,902.13 448,049,562.78
Completed but
unsettled assets
caused by 1,200,764,859.02 1,200,764,859.02 760,198,642.91 760,198,642.91
construction
contract
Development
317,769,074.78 317,769,074.78
product
Commissioned
processing 33,093,172.93 435,243.31 32,657,929.62 60,471,813.36 1,443,698.36 59,028,115.00
material
Commissioned
6,883,551.21 6,883,551.21 13,306,134.19 13,306,134.19
materials
land arrangement 182,213,301.70 182,213,301.70 10,346,187.21 10,346,187.21
Development cost 1,188,193,081.41 1,188,193,081.41
Total 3,572,182,509.64 61,395,842.79 3,510,786,666.85 4,943,897,205.94 34,326,849.58 4,909,570,356.36
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No.11 - listed companies engaged in jweelry related business" disclosure requirements
No
222
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(2) Inventory depreciation reserve
In RMB
Beginning of Increased in current period Decreased in current period
Items End of term
term Provision Other Transferred back Other
Raw materials 23,802,249.09 15,299,344.39 39,101,593.48
Stock goods 9,080,902.13 14,146,518.02 1,368,414.15 21,859,006.00
Processing
1,443,698.36 1,008,455.05 435,243.31
prodects
Total 34,326,849.58 29,445,862.41 2,376,869.20 61,395,842.79
Notes 1：Basis of provision for inventory revaluation reserve was cost and net realizable value, and reason 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 balance
The end of the development cost includes interest capitalization of 32,101,989,.83 yuan.
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Items Amount
Accumulated Incurred Cost 8,396,256,236.64
Accumulated Confirmed Gross Profit 844,504,632.54
Settlement Amount 8,039,996,010.16
Unliquidated Completed Assets Formed in the Construction
1,200,764,859.02
Contract
Other note：
（4）Development cost
Name Starting time Estimated Expected Opening balance Inventory Cloding Cloding
completion time total depreciation blance Inventory
investment reserve depreciati
(ten on reserve
thousand)
Tunghsu 2015.12.29 2018.10.16 220,000.00 1,188,193,081.41
International Center
Including： 101,544,263.19
Capital interest
Total 1,188,193,081.41
（5）Development Product
Name Completion time Opening Increased in this Decreased in this Ending balance Depreciation
223
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
balance period period reserve
Tunghsu 2018/10/16 1,459,295,506.43 1,141,526,431.65 317,769,074.78
International
Center
Including： 125,233,711.67 93,131,721.84 32,101,989.83
Capital interest
Note 2: Note 2: For details of Mortages of end-of-period, please refer to Note 70 of Consolidated Financial
Statements
8. Holding assets for sale
In RMB
Items End book value Fair value Estimated disposal cost Estimated disposal time
Holding assets for sale 119,355,435.58 119,355,435.58 December 31,2019
Total 119,355,435.58 119,355,435.58 --
Other note：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co., Ltd. acquires Sub-Subsidiary
Mingshuo (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., Sold on 31 December 2019.
Pursuant to the agreement of the acquisition of sub-subsidiary company Daosui Group Engineering Co., Ltd.:
Daosui Group Engineering Co., Ltd originally held a subsidiary .Sichuan Panxi Liangshan Travel Investment
Development Co., Ltd.,Sichuan Panxi Lingshan Travel Investment Huanshun real estate Co., Ltd. Subei Hexing
Water Co., Ltd. was stripped after the acquisition, Sold on 31 December 2019.
9. Non current assets due within one year
10. Other current assets
In RMB
Items Year-end balance Year-beginning balance
USD exchange 58,000,000.00 58,000,000.00
Prepayment of income tax 663,642,694.01 1,281,947,333.75
Short –term Financing 87,718,084.48 1,220,000,000.00
Total 809,360,778.49 2,559,947,333.75
Other note：
Note: The decrease at the end of the period compared with the beginning of the period is mainly due to the
decrease in short-term financial management, advance payment and taxes to be deducted.
224
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
11. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision for Net carrying Provision for Net carrying
Book balance Book balance
impairment amount impairment amount
Available-for-sale Equity
243,158,605.30 243,158,605.30 100,000,056.00 100,000,056.00
instrument
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
Book balance Provision for impairment Percentage
Cash
of
dividends
Investee Balance of Balance of End of shareholdi
Increase Increase Decrease for the
term term term ng in
year
investees%
Beijing
Yihuatong 100,000,05 100,000,05
5.51%
Technolog 6.00 6.00
y Co., Ltd.
Beijing
Shenwei
Lixing 29,500,000 29,500,000
16.50%
Auto .00 .00
Service
Co., Ltd.
China
Metallurgi
cal
investment
113,658,54 113,658,54
fund
9.30 9.30
manageme
nt
(Beijing)
Co., Ltd.
225
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
100,000,05 143,158,54 243,158,60
Total --
6.00 9.30 5.30
(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 provision
Other note:
Notes 1: On July 10, 2017, the Company subscribed for 1,282,052.00 shares of the add-directional share issuance of the
New Third Board Beijing Yihuatong Technology Co., Ltd at the price of RMB 78.00 per share, with paying the
consideration 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.
Note 2: On July 12, 2018, the company signed an agreement with Ming Feng, Liang Hongjie, Liu Jie and Tu
Liying to invest 29.5 million yuan in Beijing Shenwei Shixing Automobile Service Co., Ltd. capital increase,
holding 16.5% of Beijing Shenwei Shixing after the capital increase. Since fair value cannot be obtained, it is
measured at cost.
Note 3: Tunghsu Construction Group Co., Ltd., a wholly-owned subsidiary of the company (hereinafter referred to
as "Tunghsu Construction"), participates in the subscription of the Hengshui Funan New District Municipal Pipe
Rack Project Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter
referred to as "Hengshui Pipe Rack Fund") and Hengshui Funan New District Municipal Road Project
Government-Social Capital Cooperation PPP Project Private Equity Investment Fund (hereinafter referred to as
"Hengshui Road Fund") initiated by MCC Jianxin Investment Fund Management (Beijing) Co., Ltd. Hengshui
Pipe Rack Fund has a total scale of 386.0271 million yuan, of which Tunghsu Construction contributed 200
million yuan in cash and China Metallurgical Tiangong Group Co., Ltd. contributed 186.0271 million yuan in
cash. Hengshui Road Fund has a total scale of 64.6776 million yuan, of which Tunghsu Construction contributed
40 million yuan in cash and MCC Tiangong Group Co., Ltd. contributed 24.6776 million yuan in cash. Both
Hengshui Pipe Rack Fund and Hengshui Road Fund are managed by MCC Jianxin Investment Fund Management
(Beijing) Co., Ltd. and the co-managed funds are managed by Beijing Dongfang Xujie Fund Management Co.,
Ltd.
12. Held-to-maturity investment
13. Long-term account receivables
（1）Long-term account receivables
In RMB
End of term Beginning of term
Items Provision for Net carrying Provision for Net carrying Range of rate
Book balance Book balance
impairment amount impairment amount
Sale of 347,225,434.0 344,430,815.6 143,988,866.9 143,988,866.9 6%-7.6%
2,794,618.37
commodities by 5 8 1 1 45.78%
226
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
installment
347,225,434.0 344,430,815.6 143,988,866.9 143,988,866.9
Total 2,794,618.37 --
5 8 1 1
(2) Long-term account receivables recognition terminated due to transfer of financial assets
Nil
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
Nil
Other note
Nil
14. Long-term equity investment
In RMB
Increase/decrease
Closing
Other
Withdraw balance
Deductio Gains/los comprehe Declarati
Opening Addition Other n Closing of
Investees n s under nsive on of cash
balance investmen changes impairme Other balance impairme
investmen equity income dividends
t in equity nt nt
t method adjustmen or profit
provision provision
ts
I. Joint ventures
II. Associates
Tunghsu
Group 2,004,062 52,198,29 2,056,260
Finance ,204.94 0.80 ,495.74
Co., Ltd.
Tunghsu
(Deyang)
Graphene
Industry
20,436,73 20,502,80
Develop 66,069.02
8.11 7.13
ment
Fund
Partnershi
p (LP)
Zibo Bus
32,678,81 9,137,725 41,816,53
service
3.57 .63 9.20
Co., Ltd.
CUHK 73,306,96 2,963,966 76,270,93
227
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
internatio 8.08 .20 4.28
nal
business
factoring
co., Ltd
2,130,484 20,502,80 64,366,05 2,174,347
Subtotal
,724.70 7.13 1.65 ,969.22
2,130,484 20,502,80 64,366,05 2,174,347
Total
,724.70 7.13 1.65 ,969.22
Other note
Note 1: Tunghsu (Deyang) Graphene Industry Development Fund Partnership (Limited Partnership), the joint
venture, was liquidated in November 2018.
Note 2: The long-term equity investment at the beginning of the period includes the investment of RMB
155,434.20 in the subsidiary Tunghsu Technology Co., Ltd. which has decided to be cancelled. The decrease at the
end of the period is attributable to the cancellation completion of Tunghsu Technology Co., Ltd. in May 2018.
15. Investment real estate
(1) Investment real estate by cost measurement
√ Applicable □Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
58,843,742.66 58,843,742.66
period-beginning
2.Increase in the current
650,839,934.77 650,839,934.77
period
(1) Purchase
（2）Inventory\Fixed
assets\ Transferred from 650,839,934.77 650,839,934.77
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
228
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
4. Balance at period-end 709,683,677.43 709,683,677.43
II. Accumulated
amortization
1.Opening balance 614,302.80 614,302.80
2.Increased amount of
22,075,493.61 22,075,493.61
the period
(1) Withdrawal 1,311,370.70 1,311,370.70
（2）Other transfers 20,764,122.91 20,764,122.91
3.Decrease in the
reporting period
（1）Disposal
（2）Other out
4.Closing balance 22,689,796.41 22,689,796.41
III. Impairment provision
1.Opening balance
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
（2）Other out
4. Closing balance
IV. Book value
1.Book value of the
686,993,881.02 686,993,881.02
period-end
2.Book value of the
58,229,439.86 58,229,439.86
period-begin
(2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Investment real estate without certificate of ownership
Other note:
229
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Note 1: At the end of the period, there is no investment real estate without a property right certificate.
Note 2: For details of restrictions on the use of end-of-period ownership, please refer to Note 70 of
Consolidated Financial Statements
16. Fixed assets
In RMB
Items End of term Beginning of term
Fixed assets 9,634,463,323.77 11,379,727,456.13
Total 9,634,463,323.77 11,379,727,456.13
(1) List of fixed assets
In RMB
Machinery
Items House, building Transportations Other equipment Total
equipment
I. Original price
1. Balance at
2,113,818,494.63 11,507,750,402.79 122,144,132.07 185,704,090.92 13,929,417,120.41
period-beginning
2.Increase in the
10,207,180.25 246,913,236.99 12,199,683.44 17,281,305.55 286,601,406.23
current period
(1) Purchase 3,461,826.41 102,143,588.91 11,778,832.81 14,896,843.09 132,281,091.22
（2）
Transferred from con 6,745,353.84 135,659,667.72 420,850.63 154,608.75 142,980,480.94
struction in progress
9,109,980.36 2,229,853.71 11,339,834.07
(3)Increased of
Enterprise
Combination
3.Decreased amount 55,773,182.12 1,490,329,299.95 5,451,335.92 8,506,417.41 1,560,060,235.40
of the period
（1）Disposal 1,643,394.46 31,261,718.03 2,172,216.69 2,555,836.20 37,633,165.38
（2）Investment 54,129,787.66 54,129,787.66
real estate transfer
（3）Transfer of 1,423,046,991.10 1,423,046,991.10
project under
construction
（4）Decreased of 34,979,102.26 3,224,838.34 3,917,061.15 42,121,001.75
Enterprise
consolidation
（5）Other decrease 1,041,488.56 54,280.89 2,033,520.06 3,129,289.51
230
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
4.Closing balance 2,068,252,492.76 10,264,334,339.83 128,892,479.59 194,478,979.06 12,655,958,291.24
II. Accumulated
depreciation
1.Opening balance 404,808,570.47 2,013,275,887.71 57,491,501.47 73,521,319.79 2,549,097,279.44
2.Increased 748,514,807.63 14,306,694.96 22,334,400.51 857,534,971.08
amount of the 72,379,067.98
period
（1）Withdrawal 72,379,067.98 748,456,500.83 14,306,694.96 22,299,885.01 857,442,148.78
58,306.80 34,515.50 92,822.30
(2) Combined to
increase
20,267,629.35 360,768,003.71 1,457,400.78 3,236,634.05 385,729,667.89
3.Decreased
amount of the
period
（1）Disposal or
711,850.91 22,966,383.95 1,057,436.73 943,282.86 25,678,954.45
scrap
（2）Investment real
19,555,778.44 19,555,778.44
estate transfer
（3）
Transferred from con 336,099,776.16 336,099,776.16
struction in progress
Combined to reduce 660,355.04 345,683.16 259,831.13 1,265,869.33
（4）Other decrease 1,041,488.56 54,280.89 2,033,520.06 3,129,289.51
4.Closing balance 456,920,009.10 2,401,022,691.63 70,340,795.65 92,619,086.25 3,020,902,582.63
III. Impairment
provision
1.Opening balance 36,444.84 555,940.00 592,384.84
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 36,444.84 555,940.00 592,384.84
231
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
IV. Book value
1.Book value of the
1,611,332,483.66 7,863,275,203.36 57,995,743.94 101,859,892.81 9,634,463,323.77
period-end
2.Book value of the
1,709,009,924.16 9,494,438,070.24 64,096,690.60 112,182,771.13 11,379,727,456.13
period-begin
(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
Accumulated Accumulated
Items Original book value Net carrying amount
depreciation depreciation
Machinery equipment 1,438,000,000.00 397,112,850.07 1,040,887,149.93
Total 1,438,000,000.00 397,112,850.07 1,040,887,149.93
(4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
In RMB
Items Net carrying amount Reason
Substation 249,637.97 Processing
Boiler room 3,700,833.84 Processing
Other note:
Note 1: For details of the mortgage right of fixed assets at the end of the period and the restrictions on financial
leasing, please refer to Note 70 of the Consolidated Financial Statements
（6）Liquidation of fixed assets
17. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under
5,013,940,816.82 3,667,972,406.42
construction
Engineering Materials 1,163.79
Total 5,013,941,980.61 3,667,972,406.42
232
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Net carrying Book balance Provision for Net carrying
devaluation amount devaluation amount
Wuhu LCD glass
substrate
2,258,254,792.65 2,258,254,792.65 1,992,039,147.54 1,992,039,147.54
production line
project
Wuhan LCD
glass substrate
14,645,209.52 14,645,209.52 14,645,209.52 14,645,209.52
production line
project
Kunshan Color
617,456,517.49 617,456,517.49 363,976,794.49 363,976,794.49
film project
Polarizer project 763,009,412.48 763,009,412.48
Surface display
125,655,703.76 125,655,703.76 15,954,258.93 15,954,258.93
cover glass
High aluminum
silicon cover
glass sheet 1,003,879,240.41 1,003,879,240.41
production line
upgrade project
Glass substrate
production line
with annual
570,129,313.14 570,129,313.14 414,857,526.62 414,857,526.62
output of 1.65
million (G5)
TFT-LCD
New energy bus
and logistics
vehicle 147,947,403.38 147,947,403.38 0.00 0.00
production
project
Other 290,617,845.99 290,617,845.99 118,135,266.36 118,135,266.36
Total 5,028,586,026.34 14,645,209.52 5,013,940,816.82 3,682,617,615.94 14,645,209.52 3,667,972,406.42
(2)Changes of significant construction in progress
In RMB
Name Budget Amount Increase Transferr Other Balance Proporti Progress Capitaliz Includin Capitaliz Source
233
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
at year at this ed to decrease in on(%) of work ation of g： ation of of funds
beginnin period fixed year-end interest Current interest
g assets accumul amount ratio（%)
ated of
balance capitaliz
ation of
interest
Wuhu
LCD
glass
7,576,52 1,992,03 266,215, 2,258,25 800,297, 83,615,8 IPO
substrate 96.66% 96.66%
0,000.00 9,147.54 645.11 4,792.65 668.32 83.39 funds
producti
on line
project
Kunshan
Color 3,115,50 363,976, 253,479, 617,456, IPO
21.30% 21.30%
film 0,000.00 794.49 723.00 517.49 funds
project
Surface
display 1,497,38 15,954,2 109,701, 125,655, 13,715,7 IPO
12.18% 12.18%
cover 0,000.00 58.93 444.83 703.76 01.19 funds
glass
High
aluminu
m silicon
cover
glass 1,300,00 1,003,87 1,003,87 IPO
85.44% 85.44%
sheet 0,000.00 9,240.41 9,240.41 funds
producti
on line
upgrade
project
New
energy
bus and
logistics 2,955,07 147,947, 147,947, IPO
10.41% 10.41%
vehicle 4,600.00 403.38 403.38 funds
producti
on
project
Annual 981,050, 414,857, 155,271, 570,129, 56,702,5 23,550,3
109.17% 95.00% Other
output 000.00 526.62 786.52 313.14 56.91 11.10
234
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
1.65
million
(G5)
TFT-LC
D glass
substrate
producti
on line
Pilot
producti
on line
project 126,490, 120,788, 120,788,
95.49% 100.00% Other
for thick 000.00 399.94 399.94
film
substrate
s
Polarizer 2,200,00 763,009, 15,793,2 778,802,
Other
project 0,000.00 412.48 20.47 632.95
19,752,0
3,549,83 2,073,07 120,788, 778,802, 4,723,32 870,715, 107,166,
Total 14,600.0 -- -- --
7,140.06 6,863.66 399.94 632.95 2,970.83 926.42 194.49
0
（3）Impairment provision of construction projects
18. Engineering Material
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision for Net carrying Book balance Provision for Net carrying
devaluation amount devaluation amount
Special Material 1,163.79 1,163.79
Total 1,163.79 1,163.79
Other note:
Note 1: For details of the mortgage at the end of the construction in progress, see Note 70 of the consolidated
financial statements.
235
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
18. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
19. Oil-and-gas assets
□ Applicable √ Not applicable
20. Intangible assets
（1）Information
In RMB
Non patent Right of trade
Items Land use right Patent right Software Total
technology mark
I. Original price
1. Balance at
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
period-beginning
2.Increase in the
145,458,869.94 66,657,413.82 14,204,413.89 12,316,749.51 238,637,447.16
current period
(1) Purchase 145,458,869.94 2,234,200.42 12,316,749.51 160,009,819.87
（2）Internal R &
D
（3）Increased of
Enterprise 53,688,713.40 14,204,413.89 67,893,127.29
Combination
(4)Investor 10,734,500.00 10,734,500.00
investment
3.Decreased
amount of the 5,632,373.72 5,632,373.72
period
（1）Disposal
（2）Investment
real estate 5,632,373.72 5,632,373.72
transfer
4. Balance at 1,027,354,753.34 90,240,410.62 165,136,282.74 20,071,813.48 87,050,298.13 1,389,853,558.31
236
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
period-end
II. Accumulated
amortization
1. Balance at
76,219,489.09 3,138,879.85 28,677,985.20 2,965,954.66 44,050,066.05 155,052,374.85
period-beginning
2. Increase in the
22,744,757.95 5,204,892.49 15,878,742.46 2,331,780.50 42,899,609.40 89,059,782.80
current period
(1) Withdrawal 22,744,757.95 4,688,497.61 15,878,742.46 2,331,780.50 42,899,609.40 88,543,387.92
（2）Increased of
Enterprise 447,405.94 447,405.94
Combination
（3）Investment 68,988.94 68,988.94
3.Decreased
amount of the 1,208,344.48 1,208,344.48
period
（1）Disposal
（2）
Investment real 1,208,344.48 1,208,344.48
estate transfer
4. Balance at
97,755,902.56 8,343,772.34 44,556,727.66 5,297,735.16 86,949,675.45 242,903,813.17
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at 929,598,850.78 81,896,638.28 120,579,555.08 14,774,078.32 100,622.68 1,146,949,745.14
237
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
period -end
2.Book value at
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
period-beginning
The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of
the balance of intangible assets 0.00%
⑵Details of Land use right failed to accomplish certification of property
Other note:
Note 1: the certificate of title has been completed by the end of this period.
Note2: For details of the ending mortgage of intangible assets, see Note 70 of the consolidated financial
statements.
21.Development expenses
In RMB
Beginning Ending
Items Increase in the period Decrease in period
balance balance
Metal
phosphate as
a negative
electrode 3,883,495.16 7,260,906.60 2,557,863.40 8,586,538.36
material for
lithium ion
batteries, etc.
Jingang
3,361,420.59 3,361,420.59
Robot
Warehouse
2,855,282.54 2,855,282.54
robot
Companion
robot 2,900,641.21 2,900,641.21
(desktop)
EASSupply
2,236,772.24 2,236,772.24
chain system
Landscape
street lamp
2,141,940.99 1,673,576.37 3,815,517.36
design
project
Magnolia
762,432.49 762,432.49
lamp design
238
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
project
Low voltage
distribution
2,055,487.81 2,055,487.81
system
project
High voltage
distribution
3,096,837.78 3,096,837.78
system
project
Intelligent
photovoltaic 914,598.09 914,598.09
junction box
Vehicle
charging pile 519,955.68 803,963.60 519,955.68 803,963.60
Project
Energy
storage 2,022,956.97 2,022,956.97
project
Development
of main
Control
5,522,571.93 5,522,571.93
system for
AC charging
pile
Research on
an efficient
3,903,701.39 3,903,701.39
LED module
street lamp
Chinese style
courtyard
1,663,986.67 1,663,986.67
lamp design
project
Flexible
1,456,310.68 1,456,310.68
battery
Other 15,529.37 15,529.37
15,397,704.9 33,654,663.1 11,930,132.2 37,122,235.9
Total
7 9 2 4
22. Goodwill
(1) Original book value of goodwill
239
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
In RMB
Increase Decrease
Beginning
Investees/ Item Business Ending balance
balance Purchase Disposal
Combination
Mingshuo
（Beijing）
Electric 32,783,882.96 32,783,882.96
Technology Co.,
Ltd.
Chenzhou
Hongcheng
Public Traffic
10,163,443.61 10,163,443.61
Constriction
Development
Co., Ltd.
Daosui Group
Engineering Co., 40,095,298.31 40,095,298.31
Ltd.
Chuanglian
Huatai(HK) Co., 722,450.89 722,450.89
Ltd.
Suzhou Tengda
Optics
82,350,192.94 82,350,192.94
Technology Co.,
Ltd.
Guangxi Sunlong
Automobile
55,664,910.37 55,664,910.37
Manufacturing
Co., Ltd .
Shanghai
Tanyuan Huigu
33,935,384.57 33,935,384.57
New Material
Co., Ltd.
Shanghai
Sunlong Bus Co., 2,331,962,577.34 2,331,962,577.34
Ltd.
Zhongcheng
National
133,269,567.62 133,269,567.62
construction co.,
Ltd.
240
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shenzhen Sanbao
Innovation
68,888,405.50 68,888,405.50
Intelligent Co.,
Ltd.
Huaxi Nanchong
Automobile Co., 55,999,916.40 55,999,916.40
Ltd.
Total 2,587,678,140.99 258,157,889.52 2,845,836,030.51
（2）Impairment provision of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Chenzhou
Hongcheng
Public Traffic
10,163,443.61 10,163,443.61
Constriction
Development
Co., Ltd.
Total 10,163,443.61 10,163,443.61
Relevant information about the asset group or asset group combination in which goodwill resides
The asset group or asset group combination related to goodwill impairment test is that can benefit from the
synergistic effect of business merger. The test scope at the balance sheet date is the assets and liabilities involved
in the smallest asset group related to goodwill, specifically including business capital and long-term assets.
The asset group has changed in the current period:The Company acquired Shanghai Sunlong Bus Co., Ltd.
(hereinafter referred to as "Shanghai Sunlong") in October 2017. There was no consolidation of the bus business
due to the short merger and acquisition. Therefore, goodwill impairment test was carried out with Shanghai
Sunlong and Guangxi Sunlong Automobile Manufacturing Co., Ltd. (hereinafter referred to as "Guangxi
Sunlong"), a subsidiary thereof, as 2 independent asset groups. In 2018, with the consolidation of bus business,
unified management of bus R&D, procurement and sales, and unified allocation of resources, the management
conducted goodwill impairment test with Shanghai Sunlong, Guangxi Sunglong and Huaxi Nanchong Automobile
Co., Ltd. (hereinafter referred to as "Huaxi Nanchong") which was acquired by Shanghai Sunlong in April 2018,
as independent asset groups.
Except for the above asset groups, there is no change in other asset groups in the current period.
Describe the goodwill impairment test process, key parameters (e.g. forecast period growth rate, stable period
growth rate, profit margin, discount rate and forecast period when forecasting the present value future cash flow)
and the recognition method of goodwill impairment loss
The recoverable amounts for asset group and asset group combination are based on the three-to five-year
241
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
budgets approved by the management, Then use a fixed growth rate to estimate based on the entry stability period.
and calculated using the cash flow forecast method.
Chenzhou Hongsheng has made a full cycle of cash flow forecast due to the construction period and operating
period up to 2036.
The discount rate adopted by the management of the company is the pre-tax interest rate reflecting the time
value of the current market currency and the specific risks of the relevant asset group. Different asset groups are
located in different industries, and the discount rate results are different, including 11.03% for Shanghai Sunlong;
11.39% for Suzhou Tengda; 14.23% for Shenzhen Sanbao; 12.79% for Daosui; 14.11% for Tanyuan Huigu;
12.63% for Mingshuo; 10.29% for Chenzhou Hongsheng.
The recoverable amount of the asset group shall be determined according to the fair value (future disposal
value) of the asset minus the disposal expenses due to the future disposal of Zhongcheng National construction co., Ltd.
Ltd..
Impact of goodwill impairment test
Zhongming International Asset Appraisal (Beijing) Co., Ltd. evaluated and confirmed the present value of the
future cash flow of the asset group on December 31, 2018, and issued the appraisal report.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0008), Shanghai Sunlng Asset Group shows no sign of
goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0009), Suzhou Tengda shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0010), Sanbao Innovation shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0011), Daosui shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0012), Tanyuan Huigu shows no sign of goodwill
impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0013), Mingshuo shows no sign of goodwill impairment.
Confirmed in the appraisal report (ZMPBZ [2019] No. 0014), Chengzhou Hongcheng shows no sign of goodwill
impairment.
Zhongcheng National Construction co., Ltd.has signed an equity transfer agreement in April 2019, and the valuation
price of 70% equity of Zhongcheng National construction co., Ltd. held by Tunghsu Construction Group Co., Ltd. is
RMB 140 million, thus there is no sign of goodwill impairment.
23.Long-term amortization expenses
In RMB
Balance in Increase at this Amortization
Items Other decrease Balance in year-end
year-begin period balance
Building renovation 20,884,579.02 12,415,384.73 7,862,496.12 8,590,217.81 16,847,249.82
NEG Technology
5,653,725.00 616,770.00 5,036,955.00
Use fee
Total 26,538,304.02 12,415,384.73 8,479,266.12 8,590,217.81 21,884,204.82
242
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
24.Deferred income tax assets/deferred income tax liabilities
(1)Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets devaluation
343,092,733.65 64,950,015.23 361,268,489.05 72,770,445.79
provision
Not realized the internal
2,085,646,185.70 313,672,923.77 2,184,199,412.75 350,253,995.33
profit
Deductible loss 813,056,144.42 123,065,344.84 434,657,411.04 65,723,232.54
Deferred income
99,944,032.99 14,878,382.57 73,641,000.14 11,046,150.02
difference
Non-identical control
9,424,416.78 909,279.99 8,652,114.93 783,147.37
enterprise
Projected liability 20,944,899.84 5,236,224.96 38,543,627.93 9,635,906.98
Advance quality margin 78,820,850.20 10,382,456.32 117,878,085.38 16,420,648.06
Total 3,450,929,263.58 533,094,627.68 3,218,840,141.22 526,633,526.09
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Balance in year-end Balance in year-begin
Items Temporarily Deductible Deferred Income Tax Temporarily Deductible Deferred Income Tax
or Taxable Difference liabilities or Taxable Difference liabilities
Impairment of assets
under the control of
293,849,152.24 54,572,072.64 349,818,170.15 60,149,328.74
enterprises under the
same control
Depreciation difference
due to different tax law
4,198,490.69 620,911.33
and accounting
depreciation period
Total 298,047,642.93 55,192,983.97 349,818,170.15 60,149,328.74
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
243
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
533,094,627.68 526,633,526.09
assets
Deferred income
55,192,983.97 60,149,328.74
liabilities
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible losses 152,606,559.26 74,905,668.59
Fixed assets depreciation reserves 0.00 36,444.84
Provision for impairment of construction
14,645,209.52 14,645,209.52
projects
Bad debt provision 86,413.68 86,413.68
Total 167,338,182.46 89,673,736.63
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2018 0.00 15,649.80
2019 386,221.54 436,608.64
2020 3,751,170.54 3,751,170.54
2021 22,199,323.24 32,084,711.54
2022 27,911,201.66 38,617,528.07
2023 98,358,642.28
Total 152,606,559.26 74,905,668.59 --
25 .Other non-current assets
In RMB
Items Balance in year-end Balance in year-begin
Prepaid land fund 6,590,000.00
Prepaid engineering equipment 4,463,496,966.82 299,812,939.48
Total 4,463,496,966.82 306,402,939.48
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
26.Short –term loans
（1）Short-term loans by category
In RMB
Items Balance in year-end Balance in year-begin
Pledge loan 2,666,853,417.34 320,666,279.80
Mortgage loan 1,847,600,000.00 374,600,000.00
Guarantee loan 3,589,753,471.68 4,997,500,000.00
Credit loan 256,899,762.31 20,060,102.40
Total 8,361,106,651.33 5,712,826,382.20
Note：
Note 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.
Note 2.At the end of the period, the company's Mortgage loans of RMB 847,600,000.00.
Including: (1) End-of-period mortgage loan is RMB 110,000,000.00 which is both a guarantee loan and a
mortgage loan. Tunghsu Group Co., Ltd., the Company and its subsidiary Shanghai Sunlong Bus Co., Ltd. provide
guarantee for Guangxi Sunlong Automobile Manufacturing Co., Ltd., the grandson company; the collateral is the
inspection line workshop, warehouse and No. 1 production workshop located at No. 99 Puxing Avenue, Yongning
District, Nanning City, numbered as No. 0243831, 0243689, 0137166 of Gui (2018) Nanning Real Estate Right;
(2) End-of-period mortgage loan is RMB 49,600,000.00 which is both a guarantee loan and a mortgage loan.
Tunghsu Construction Group Co., Ltd. and Yang Jianzhong provide joint liability guarantee for Daosui Group
Engineering Co., Ltd., the grandson company. The collateral is the No. 384 construction land (HGY (2012) Z) and
No. 200700980 real estates (HYZ No.200700980) located at No. 66 Yingbin Road, Huaying City.
(3) End-of-period mortgage loan is RMB 110,000,000.00. The collateral is the machinery and equipment of
the subsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd. and the land and real estate corresponding to the
first production line;
(4) End-of-period mortgage loan is RMB 98,000,000.00 which is both a guarantee loan and a mortgage loan.
Tunghsu Group Co., Ltd. and Li Zhaoting provide joint liability guarantee for the Company. Tunghsu Zhuding
Investment Development Group Co., Ltd., the mortgagor, will mortgage the house and other fixtures (J (2018) H
Real Estate No. 0050316) located in No. 115 office property, Yangfangdian, Haidian District, Beijing.
(5) End-of-period guarantee loan is RMB 480,000,000.00. Li Zhaoting provides joint and several guarantees
for the Company. All parcel number 33010801200000004 residential lands and parcel number
33010801200000006 commercial lands of Hangzhou Yuanbang Real Estate Development Co., Ltd. located in
Kanshan Town, Xiaoshan District, Hangzhou City, Zhejiang Province, serve as the second order mortgage
guarantee for the state-owned transfer of land use right. The first floor of Binjiang Huayue Phase III apartment
building and the first floor of Binjiang Huayue Phase III office building of Anhui Meisheng Real Estate Co., Ltd.
are located in No.368 Baohe Avenue, Baohe District, Hefei City, Anhui Province serve as the mortgage guarantee.
(6) The pledged loan at the end of the period is RMB 1,000,000,000.00.
Li Zhaoting provides joint and several guarantees for the Company.Tunghsu optoelectronic Technology Co.,
Ltd., Tunghsu Group and Li Zhaoting provides joint and serveral guarantees for the Company, The company also
pledged 100% shares of its subsidiary Beijing Xufeng Real Estate Co., Ltd., which provides mortgage on its own
land.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Note 3: The guarantee loan is RMB 3,589,753,471.68:
Of which: (1) End-of-period guarantee loan is RMB 210,000,000.00, The Company and Li Zhaoting provides
joint liability guarantee for the Company;
（2）End-of-period guarantee loan is RMB 100,000,000.00, The company provides joint liability guarantee to the
Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（3）End-of-period guarantee loan is RMB 25,000,000.00, The company and Li Zhaoting provides joint liability
guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（4）End-of-period guarantee loan is RMB 20,000,000.00, The company provides joint liability guarantee to the
Sub-Subsidiary –Suzhou Tengda Optics Technology Co., Ltd.;
（5）End-of-period guarantee loan is RMB 205,000,000.00, The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（6）End-of-period guarantee loan is RMB 95,000,000.00, The company provides joint liability guarantee to the
Subsidiary –Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;
（7）End-of-period guarantee loan is RMB 50,000,000.00, The company provides joint liability guarantee to the
Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
(8) End-of-period guarantee loan is RMB 80,000,000.00, Tunghsu Group Co., Ltd. and Li Zhaoting provide
joint guarantee for Sichuan Xuhong Optoelectronic Technology Co., Ltd.;
（9）End-of-period guarantee loan is RMB 50,000,000.00, The Company provides joint liability guarantee to the
subsidiary -Shanghai Sunlong Bus Co., Ltd;
（10）End-of-period guarantee loan is RMB100,000,000.00, The Company and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（11）End-of-period guarantee loan is RMB45,000,000.00, The Company and Tunghsu Group provides joint
liability guarantee to the sub-subsidiary –Suzhou Tengda Optics Technology Co., Ltd.;
（12）End-of-period guarantee loan is RMB200,000,000.00, The Company and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（13）End-of-period guarantee loan is RMB400,000,000.00, Li Zhaoting and Tunghsu Group provides joint
liability guarantee to the Company.;
（14）End-of-period guarantee loan is RMB100,000,000.00, Li Zhaoting and Tunghsu Group provides joint
liability guarantee to Shanghai Sunlong Bus Co., Ltd.;
（15）End-of-period guarantee loan is RMB200,000,000.00, Li Zhaoting and Tunghsu Group provides joint
liability guarantee to the Subsidiary –Zhengzhou Xufei Optoelecronic Technology Co., Ltd.;
（16）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group.provides joint liability guarantee to
the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（17）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee to
the Company.;
（18）End-of-period guarantee loan is RMB250,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Daosui Group Co., Ltd.;
（19）End-of-period guarantee loan is RMB150,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
（20）End-of-period guarantee loan is RMB320,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Shanghai Sunlong Bus Co., Ltd.;
（21）End-of-period guarantee loan is RMB50,000,000.00, Tunghsu Group provides joint liability guarantee to
the Subsidiary –Wuhu Tunghsu Optoelectronic Technology Co., Ltd.;
（22）End-of-period guarantee loan is RMB200,000,000.00, Tunghsu Group provides joint liability guarantee to
246
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
the Subsidiary –Zhengzhou Xufei Optoelectronic Technology Co., Ltd.;
（23）End-of-period guarantee loan is RMB30,000,000.00, Subsidiary-Shanghai Sunlong Bus Co., Ltd.provides
joint liability guarantee to the Sub- Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.;
(24)End-of-period guarantee loan is RMB55,253,471.68, Sub-Subsidiary-Shenzhen Xinyingtong Technology
Co., Ltd.provides guarantee with 100% Pledge .;
（25）End-of-period guarantee loan is RMB150,000,000.00,The Company provides joint liability guarantee to
Subsidiary - Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.;
（26）End-of-period guarantee loan is RMB25,000,000.00, The Company provides joint liability guarantee to the
sub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.;
（27）End-of-period guarantee loan is RMB49,500,000.00, The Company provides joint liability guarantee to the
Subsidiary –Tunghsu (Kunshan) Display Co., Ltd.;
（28）End-of-period guarantee loan is RMB20,000,000.00, The Company and Li Zhaoting provides joint liability
guarantee to the sub-subsidiary –Hunan Tunghsu Delai Electric Technology Co., Ltd.;
（29）End-of-period guarantee loan is RMB10,000,000.00, The Company provides joint liability guarantee to the
sub-subsidiary –Chongqing Jinghuateng Optoelectronic Technology Co., Ltd.
Note 4: End-of-period pledge loan is RMB2,666,853,417.34:
(1) The Company pledges a loan of RMB 142,500,000.00 and provides pledge guarantee for Wuhu Tunghsu
Optoelectronic Technology Co., Ltd. with the fixed deposit receipt of RMB 150,000,000.00.
（2）The Company provides a guarantee of RMB 20,000,000.00 for the sub-subsidiary Chongqing
Jinghuateng Optoelectronic Technology Co., Ltd. which uses the accounts receivable of RMB 25,674,800.00 as
pledge.
(3) End-of-period pledge loan is RMB 180,000,000.00 which is both a guarantee loan and a pledge loan.
Tunghsu Group Co., Ltd., Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. and Wuhu Tunghsu
Weiyu Medical Apparatus Technology Co., Ltd., a sub-subsidiary of the Company, provide joint guarantee; Hunan
Tunghsu Weigao Medical Apparatus Technology Co., Ltd., the grandson company, provides pledge guarantee with
fixed deposit receipt of RMB 100 million;
(4) End-of-period pledge loan is RMB 142,500,000.00. Wuhu Tunghsu Optoelectronic Equipment
Technology Co., Ltd. provides pledge guarantee with the fixed deposit receipt of RMB 150,000,000.00.
(5) End-of-period pledge loan is RMB 69,000,000.00. Daosui Group Engineering Co., Ltd., the
sub-subsidiary company, provides pledge guarantee with the fixed deposit receipt of RMB 72,010,000.00;
(6) The pledged loan at the end of the period is RMB 1,800,000,000.00. Li Zhaoting and Shenzhen Oufuyuan
Technology Co., Ltd. hold 75% of the equity of Zhongshan Shenzhong Real Estate Development Co., Ltd. to
provide pledge guarantee.
(7) End-of-period pledge loan is RMB 12,853,417.34. Suzhou Tengda Optical Technology Co., Ltd., the
sub-subsidiary company, provides pledge guarantee with accounts receivable pledge .
(8) End-of-period pledge loan is RMB 300,000,000.00.Tunghsu Group's loan is both a guarantee loan and a
pledge loan guarantee. Li Zhaoting,Tunghsu Group Co., Ltd. and Shanghai Sunlong Bus Co., Ltd. provide joint
liability guarantee. Shanghai shenlong bus co., LTD. Provides pledge guarantee for the company with the pledge
of 350 million accounts receivable.
(2) Situation of Overdue Outstanding Short-Term Borrowing
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
27. Financial liabilities measured at fair value through current profit and loss
28. Derivative financial liabilities
□ Applicable√ Not applicable
29.Notes payable & account payable
In RMB
Items Balance in year-end Balance in year-begin
Notes payable 1,643,167,026.68 1,063,897,679.89
Account payable 8,632,927,106.20 4,636,989,039.65
Total 10,276,094,132.88 5,700,886,719.54
（1）List of Notes payable
In RMB
Items Balance in year-end Balance in year-begin
Commercial acceptance 1,288,410,321.68 826,294,597.49
Bank acceptance bills 354,756,705.00 237,603,082.40
Total 1,643,167,026.68 1,063,897,679.89
（2）List of account payable
In RMB
Items Balance in year-end Balance in year-begin
Materials engineering labor payment 6,796,000,151.83 3,434,306,764.15
Project Fouds 1,749,055,669.87 1,093,739,288.73
Transportation expenses 28,726,403.86 11,172,407.72
Other 59,144,880.64 97,770,579.05
Total 8,632,927,106.20 4,636,989,039.65
（2）Significant accounts payable that aged over one year
In RMB
Items Balance in year-end Balance in year-begin
Sichuan zhongde construction labor
48,000,000.00 Unpaid payment term
service co. LTD
Beijing Guoxun investment co., Ltd. 41,088,123.25 Unpaid payment term
Sichuan Chaohang Construction Services 22,500,000.00 Unpaid payment term
248
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Co., Ltd. Chengdu Branch
Ningxia tianshun electric power
21,052,646.58 Unpaid payment term
engineering co. LTD
Xinjiang Anpuneng New Energy
20,895,884.25 Unpaid payment term
Investment Co., Ltd.
Total 153,536,654.08 --
30.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 133,288,930.47 635,268,325.76
Engineering fund 1,268,994,731.90 1,019,869,237.87
Total 1,402,283,662.37 1,655,137,563.63
(2) Accounts payable with major amount and aging of over one year
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
In RMB
Items Amount
Accumulated Incurred Cost 2,275,075,178.00
Accumulated Confirmed Gross Profit 162,467,492.90
Settlement Amount 2,688,749,974.00
Unliquidated Completed Assets Formed in the Construction
-251,207,303.10
Contract
Other note
Note: At the end of the period, there are no important advance receipts with an age of more than one year.
31. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
I. Short –term wages 205,475,973.45 1,098,774,156.49 1,068,386,812.83 235,863,317.11
249
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
II. Welfare after waving
of position-fixed 2,221,388.80 75,449,849.88 75,387,578.62 2,283,660.06
provision scheme
III. Termination benefit 2,985,525.91 2,985,525.91
Total 207,697,362.25 1,177,209,532.28 1,146,759,917.36 238,146,977.17
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
158,272,400.10 965,100,495.48 953,664,721.94 169,708,173.64
allowances and subsidies
2.Employee welfare 54,843.85 37,806,600.30 37,724,038.16 137,405.99
3. Social insurance
1,209,437.58 38,925,976.09 38,618,326.35 1,517,087.32
premiums
Including：Medical
1,043,116.93 33,687,308.23 33,593,331.33 1,137,093.83
insurance
Work injury insurance 66,261.87 2,562,329.37 2,384,798.52 243,792.72
Maternity insurance 100,058.78 2,676,338.49 2,640,196.50 136,200.77
4. Public reserves for
986,360.29 28,309,758.40 27,377,817.94 1,918,300.75
housing
5.Union funds and staff
44,804,730.41 23,167,792.00 5,776,294.23 62,196,228.18
education fee
Other 148,201.22 5,463,534.22 5,225,614.21 386,121.23
Total 205,475,973.45 1,098,774,156.49 1,068,386,812.83 235,863,317.11
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
2,080,192.50 71,033,325.56 70,982,835.70 2,130,682.36
insurance premiums
2.Unemployment
141,196.30 4,416,524.32 4,404,742.92 152,977.70
insurance
Total 2,221,388.80 75,449,849.88 75,387,578.62 2,283,660.06
Other note：Employee benefits payable has no arrears of wages.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
32. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 349,650,560.67 60,982,068.15
Enterprise Income tax 307,974,748.03 170,094,083.01
Individual Income tax 8,509,011.91 30,271,740.75
City Construction tax 13,922,593.39 7,530,509.66
Land VAT 101,545,748.03
House property tax 10,701,618.07 8,631,413.12
Land use tax 1,534,812.83 1,802,208.59
Educational surtax 10,584,164.68 6,453,814.04
Stamp Tax 3,930,901.55 3,666,280.55
Other 8,818,967.96 5,547,302.09
Total 817,173,127.12 294,979,419.96
Other note:
Note: The increase in taxes payable at the end of the period compared with the beginning of the period is mainly
due to the increase in value added tax payable, enterprise income tax and land value-added tax.
33.Other payable
In RMB
Items Balance in year-end Balance in year-begin
Interest payable 117,554,951.58 107,195,147.20
Dividend payable 35,000,000.00
Other account payable 1,972,048,725.02 1,887,520,891.88
Total 2,089,603,676.60 2,029,716,039.08
（1）Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans interest of installment and
37,542,540.23 29,020,856.73
interest charge
Enterprise bond interest 71,935,414.10 66,833,709.29
Short term loan interest payable 8,076,997.25 11,340,581.18
251
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Total 117,554,951.58 107,195,147.20
- Particulars of significant overdue unpaid interest
Other note：
Nil
（2）Dividends payable
In RMB
Items Balance in year-end Balance in year-begin
Common dividends 35,000,000.00
Total 35,000,000.00
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
Nil
(3)Other payable
（1）Disclosure by nature
In RMB
Items Balance in year-end Balance in year-begin
Related party current account 632,884,079.05 475,619,957.85
Project Current account 558,426,427.62 575,733,577.03
Deposit 370,070,455.32 332,956,845.59
Individual official borrowing 95,995,501.74 118,851,620.51
Government Subsidy 15,000,000.00 15,000,000.00
Social security withholding 8,526,750.21 1,823,102.07
Engineering fund 55,246,500.11
Advance funds 10,363,123.11 33,376,954.61
Stock right fund 266,310,044.77 252,444,235.97
Restricted stock repurchase obligations 4,422,320.00 4,422,320.00
Other 10,050,023.20 22,045,778.14
Total 1,972,048,725.02 1,887,520,891.88
(2) Other payables with large amount and aging of over one year
Other instructions
Note: other important payables with an aging of more than 1 year at the end of the accounting period are 527,931,897.61 yuan.
The reason for not paying back or carrying forward is that the settlement conditions are not met.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
34. Divided into liability held for sale
35.Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans due within 1 year 2,523,290,150.75 4,196,242,686.59
Long-term Account payable due within 1
1,124,359,280.45 801,679,582.86
year
Deferred income due within 1 year 49,743,433.71 47,686,487.00
Total 3,697,392,864.91 5,045,608,756.45
36.Other current liabilities
In RMB
Items Balance in year-end Balance in year-begin
USD exchange 68,632,000.00 65,342,000.00
For resale tax 136,561,128.73 79,012,267.85
Financing 110,000,000.00 82,800,911.12
Total 315,193,128.73 227,155,178.97
Other note：
Notes ：In 1993,the Group signed the agreement on exchange of US dollars which agreed returning 10,000,000
US dollars to the Exchange Unit and repossess the RMB58,000,000.00 exchanged in November 1998, As of
December 31, 2018, the Group still consults with the Exchange Unit on the returning of the exchange.
37. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance in year-end Balance in year-begin
Pledge loans 450,000,000.00 950,000,000.00
Mortgage loans 3,013,496,417.47 4,096,235,604.06
Guarantee loans 1,801,383,333.28 4,359,733,333.30
Less ：Long-term loan due 1 year -2,523,290,150.75 -4,196,242,686.59
Total 2,741,589,600.00 5,209,726,250.77
Note：
Notes 1：At the end of the period, the Company has no long-term borrowings that have not yet been repaid.
Notes 2：The Guarantee of RMB 1,801,383,333.28 is both the mortgage loan and the guarantee loan, reclassified
into the non-current liabilities due within one year RMB 1,533,383,333.28.
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Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Thereinto: (1) Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing provided the joint and several guarantee for the
company's borrowings of RMB 615,000,000.00, of which RMB 615,000,000.00 was reclassified to non-current
liabilities due within one year; Tunghsu Group Co., Ltd,and Li Zhaoting provided the joint and several guarantee for the
company's borrowings of RMB 218,833,333.28, Tunghsu Group , Li Zhaoting and Li Qing provided the joint and
several guarantee for Company's borrowings of 299,550,000.00, of which RMB 518,383,333.28 was reclassified to
non-current liabilities due within one year; Tunghsu Group, Tunghsu Optoelectronic Investment Co., Ltd. and Li
Zhaoting provided the joint and several guarantee for the company's borrowings of RMB 400,000,000.00, of which
RMB 400,000,000.00 was reclassified to non-current liabilities due within one year; Tunghsu Group provided the
guarantee for RMB 80,000,000.00 for Sichuan Tunghsu Fanrong Construction Development Co., Ltd., of which RMB
0 was reclassified to non-current liabilities due within one yea
（2）NEG provides joint guarantee for the loan of RMB 188,000,000.00 of Fuzhou Xufu Optoelectronic
Technology Co., Ltd., the grandson company, of which the non-current liabilities reclassified and transferred into
one-year maturity shall be RMB 0.00.
Note 3: Mortgage loan RMB 3,013,496,417.47 is both a mortgage loan and a guarantee loan, and the
non-current liabilities reclassified and transferred into one-year maturity shall be RMB 989,906,817.47.
Of which: (1) The non-current liabilities reclassified and transferred into one-year maturity in the loan of
RMB 204,000,000.00 are RMB 136,000,000.00. The collateral and guarantor of the loan are: a. The 202 mu
state-owned land use right and the plant after the completion of the project are mortgaged by Wuhu Tunghsu
Optoelectronic Technology Co., Ltd., and 2 precious metal platinum passages are provided for mortgage
guarantee; b. The loan guarantor is Wuhu Construction Investment Co., Ltd.
(2) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
1,125,000,000.00 are RMB 375,000,000.00. The collateral and guarantor of the loan are: a. 8 precious metal
platinum passage assets owned by Wuhu Tunghsu Optoelectronic Technology Co., Ltd. provides mortgage and
guarantee; b. The Company provides joint and several liability guarantee for Wuhu Tunghsu Optoelectronic
Technology Co., Ltd., the subsidiary of the Company.
(3) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
213,726,400.00 are RMB 375,000,000.00. The collateral and guarantor of the loan are: a. Tunghsu Group Co.,
Ltd., the guarantor, provides joint liability guarantee to the Lender for the loan equivalent to RMB 450 million
under the Project and the interest, penalty interest, compound interest, compensation, liquidated damages, damage
awards and the expenses of the realized creditor's rights thereof; b. The appraisal value of the collateral of the
buildings, machinery and equipment on the ground (including 4 precious metal platinum passages) is RMB
1,055,713,019.27.
(4) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB
425,000,000.00 are RMB 35,000,000.00. The mortgage and pledge guarantee of the loan are: a. Real estates
(YFQZYZ No. 20150301716, YFQZYZ No. 20150301767, YFQZYZ No. 20150301734, YFQZYZ No.
F20150301760, YFQZYZ No. 20150301711, YFQZYZ No. 20150301725, YFQZYZ No. 20150301769,
YFQZYZ No. 1715047 of Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd.; b. Tunghsu Group Co., Ltd.
shall provide joint liability guarantee for Tunghsu (Yingkou) Optoelectronic Technology Co., Ltd. and provide
pledge guarantee of 40 million shares.
(5) The non-current liabilities reclassified and transferred into one-year maturity in the loan of RMB
180,417.47 are RMB 180,417.47. The collateral and guarantor of the loan are: Zeng Jiankai shall provide joint
liability guarantee and vehicle with a value of RMB 729,238.00 as collateral.
(6) The non-current liabilities reclassified and transferred into one-year maturity in the roan of RMB
450,000,000.00 are RMB 150,000,000.00. The collateral and guarantor of the loan are: a. Shijiazhuang Xuxin
254
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Optoelectronic Technology Co., Ltd., the mortgagor, provides mortgage guarantee with the assets formed by the
mortgagable Project, including the land use right, plants and other buildings, machinery and equipment (including
the three precious metal platinum passages), etc.; b. Tunghsu Group Co., Ltd. and the couple Li Zhaoting and Li
Qing provide joint guarantee.
(7) The amount reclassified and transferred into one-year maturity in the roan of RMB 330,000,000.00 is
RMB 80,000,000.00. The collateral and guarantor of the loan are: a. The land use right of WK (Gong) GY 2013
No. 020, WK (Gong) GY 2013 No. 021 and WK (Gong) GY 2014 No. 008 and the fixed assets after the
completion of the project owned by Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. are
mortgaged; b. The Company provides joint liability guarantee for its subsidiary Wuhu Tunghsu Optoelectronic
Equipment Technology Co., Ltd.
Note 4: The pledge loan of RMB 450,000,000.00 is both a pledge loan and a guarantee loan, and the
non-current liabilities reclassified and transferred into one-year maturity shall be RMB 0.00.
Of which, the loan is RMB 450,000,000.00. The the loan pledge and the guarantor are: a. The pledge is the
RMB 5 million circulating stocks of Tunghsu Optoelectronic Technology Co., Ltd. held by Tunghsu Group Co.,
Ltd. and the full pledge of the equity corresponding to the paid-in contribution of RMB 178,750,000.00 of
Chengdu Tunghsu Intelligent Technology Co., Ltd. held by Tunghsu Group Co., Ltd.; b. Tunghsu Group Co., Ltd.
and Li Zhaoting provide guarantee.
Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.50%.
38. Bonds payable
（1）Bonds payable
In RMB
Items Balance in year-end Balance in year-begin
15 Tunghsu bonds 952,223,306.45 993,310,440.39
Mid-term note I 2,986,250,396.83 2,981,914,109.61
Mid -term note II 1,692,345,122.04 1,689,901,540.52
Less：Bond payable due 1 year
Total 5,630,818,825.32 5,665,126,090.52
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability)
In RMB
15
956,042,7 1,000,000 993,310,4 63,088,91 2,870,166 43,957,30 952,223,3
Tunghsu 2015.5.19 5 years
00.00 ,000.00 40.39 3.18 .06 0.00 06.45
bonds
Mid-term 3,000,000 2016.11.1 3,000,000 2,981,914 139,280,0 4,336,287 2,986,250
5 years
note I ,000.00 7 ,000.00 ,109.61 00.00 .22 ,396.83
Mid -term 1,700,000 2016.12.0 1,700,000 1,689,901 85,000,00 2,443,581 1,692,345
5 years
note II ,000.00 2 ,000.00 ,540.52 0.00 .52 ,122.04
255
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
5,700,000 5,665,126 287,368,9 9,650,034 43,957,30 5,630,818
Total -- -- --
,000.00 ,090.52 13.18 .80 0.00 ,825.32
(3) Note to conditions and time of share transfer of convertible bonds
Nil
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Nil
Notes:On May 19, 2015, the “15 Tunghsu Debt” with a total amount of RMB 1 billion was issued. In May 2018,
the resale amount was RMB 43,957,300.00, and the coupon rate was adjusted from 6.00% to 6.80%.
39. Long-term payable
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 2,644,309,592.95 3,276,308,254.44
Total 2,644,309,592.95 3,276,308,254.44
(1) Long-term payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 4,441,492,662.34 4,935,555,693.56
Less：Unconfirmed financing costs 672,823,788.94 857,567,856.26
Less：Port due Within 1 year 1,124,359,280.45 801,679,582.86
Other note
Note: Tunghsu Group Co., Ltd. provides a guarantee of RMB 1,047,092,103.61 for financial lease, Tunghsu
Group Co., Ltd. and Li Zhaoting provide a guarantee of RMB 732,372,469.64 for financial lease, and Tunghsu
Group Co., Ltd., Li Zhaoting and Li Qing provide a guarantee of RMB 208,000,000.00 for financial lease; Yang
Jianzhong, Hong Shuping, You Shaoguo, Li Yan, Hu Yongsheng and Li Jun provide a guarantee of RMB
123,276,502.66 for the financial lease; The Company and Li Zhaoting provide a guarantee of RMB
11,0316,039.24 for financial lease; Subsidiaries of the Company provide RMB 71,830,000.00 as security deposit
pledge for financing lease; The production lines and machinery and equipment of the subsidiaries of the Company
provide a mortgage of RMB 2,148,605,547.19 for financing lease.
40. Long-term employee salary payable
41. Estimates liabilities
In RMB
Items Balance in year-end Balance in year-begin Rreason
256
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Lispendens 20,944,899.84 38,543,627.93
Product guarantee 78,820,850.20 117,878,085.38
Total 99,765,750.04 156,421,713.31 --
42.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 601,213,644.42 143,338,833.67 46,218,458.32 698,334,019.77
Less ：Government
subsidies due within -36,478,840.45 -2,056,946.72 -38,535,787.17
one year
Not realized after
38,763,460.00 16,348,166.82 27,555,813.56 27,555,813.26
sale rental return
Less：Unrealized
customer service due
-11,207,646.55 -11,207,646.55
within 1 year rent to
profit or loss
Total 592,290,617.42 157,630,053.77 73,774,271.88 676,146,399.31 --
Details of government subsidies
In RMB
Amount Other income Amount of
New subsidy Asset-related
Beginning of transferred to recorded in cost deducted Other
Items in current End of term orincome-rel
term non-operatio the current in the current changes
period ated
nal income period period
Grant of
Government
25,438,800.0 23,194,200.0 Related to
Infrastructure 2,244,600.00
0 0 assets
（Land
refund）
Grant of
Industry
Revitalizatio
Related to
n and 2,644,444.61 233,333.28 2,411,111.33
assets
Technology
Reconstructio
n Project
Technical Related to
2,666,666.65 266,666.68 2,399,999.97
reconstructio assets
257
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
n
Grant of
Glass Related to
9,999,999.94 1,000,000.00 8,999,999.94
Substrate assets
Project
Industry
Related to
Development 4,666,666.65 466,666.68 4,199,999.97
assets
Fund
Project
Related to
finance 313,333.37 31,333.32 282,000.05
assets
discount
Grant of
Industry
Revitalizatio
71,668,666.7 65,153,333.3 Related to
n and 6,515,333.32
1 9 assets
Technology
Reconstructio
n n Project
2013
Provincial
strategic
Related to
emerging 4,250,000.04 333,333.32 3,916,666.72
assets
industries of
special grant
funds
Technology
reconstructio 28,822,333.3 26,666,333.3 Related to
2,156,000.00
n on Special 2 2 assets
funds
Investment
and Subsidies
of “Double
Hundred
Plan” Project Related to
1,783,333.33 200,000.00 1,583,333.33
granted by assets
the People's
Government
of Henan
Province
TFT glass
Related to
substrate 89,166.77 10,000.00 79,166.77
assets
technology
258
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
R& D fund
TFT glass
substrate Related to
5,944,444.43 666,666.67 5,277,777.76
project assets
Subsidy
Investment
and Subsidies
within
Budget for
Technologica
l
Transformati
on Project by
Related to
National 8,322,222.23 933,333.33 7,388,888.90
assets
Development
and Reform
Commission
and the
Ministry of
Industry and
Information
Technology
TFT glass
substrate 11,888,888.9 10,555,555.5 Related to
1,333,333.33
project 1 8 assets
Subsidy
Subsidy
Major
Scientific and
Technical
Related to
Projects by 594,444.43 66,666.67 527,777.76
assets
Finance
Bureau of
Zhengzhou
City
Financial
Supports for
National Key
Industry and Related to
8,322,222.23 933,333.33 7,388,888.90
Technical assets
Transformati
on on
Projects
259
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Granted by
the Municipal
Finance
Bureau
Economic
and
Technologica
l
Development Related to
4,161,111.10 466,666.67 3,694,444.43
Zone Finance assets
Bureau
Industrial
Development
Support Fund
Funds for
Independent
Innovation of Related to
3,566,666.71 400,000.00 3,166,666.71
Provincially assets
Supported
Enterprises
Supporting
Funds on Related to
1,188,888.91 133,333.33 1,055,555.58
Finance assets
Discounts
Funds for
Education,
Science and
Related to
Culture 891,666.71 100,000.00 791,666.71
assets
Granted by
the Finance
Bureau
Supporting
Funds for
Industrial
Structure
-adjusting Related to
1,742,222.16 186,666.67 1,555,555.49
Projects assets
Granted by
the Regional
Finance
Bureau
Industry 1,004,444.42 106,666.67 897,777.75 Related to
260
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
discount and assets
expenses
Financial Related to
3,194,444.50 333,333.33 2,861,111.17
discount assets
Industrial
restructuring
Related to
project 3,493,333.29 320,000.00 3,173,333.29
assets
financial
funds
Special
Funds for
High-end
Information
Industry
Chain
Granted by
Related to
the Finance 3,861,111.09 333,333.33 3,527,777.76
assets
Bureau of the
Economic
and
Technologica
ll
Development
Zone
2015 project
equipment 29,981,766.6 27,690,166.4 Related to
2,291,600.16
investment 0 4 assets
subsidies
Zhengzhou C
ity Finance B
ureau in 2011
and 2012 has
been the acc
eptance of th Related to
2,412,222.08 173,333.39 2,238,888.69
e provincial i assets
ndustrial stru
cture adjustm
ent project th
e second batc
h of funds
Project Related to
1,760,000.00 1,760,000.00
subsidy of assets
261
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Chongqing
Liangjiang
New Area
Finance
Bureau
Equipment
subsidy of
Chongqing
Related to
Liangjiang 880,000.00 880,000.00
assets
New Area
Finance
Bureau
Investment in
the Central
Budget of 25,500,000.0 23,500,000.0 Related to
2,000,000.00
Strategic 0 0 assets
emerging
Industries
The high-tech
zone
Related to
appropriates 5,866,666.65 426,666.68 5,439,999.97
assets
baseboard
projects
Production
19,241,899.3 17,734,955.9 Related to
line award 1,506,943.40
7 7 assets
fund
Special fund
for the
transformatio
n of scientific Related to
6,158,080.51 635,162.01 5,522,918.50
and assets
technological
achievements
in 2015
G8.5tft-lcd
glass
substrate
manufacturin 45,000,000.0 42,000,000.0 Related to
3,000,000.00
g precision 0 0 assets
intelligent
digital
workshop
262
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
construction
project
Investment in
the Central
Budget of Related to
3,933,333.41 799,999.92 3,133,333.49
Strategic assets
emerging
Industries
2011Key
technical
Related to
transformatio 491,666.70 99,999.96 391,666.74
assets
n project
funds
2011Strategic
emerging
Related to
industry 565,416.70 114,999.96 450,416.74
assets
development
funds
2012Electron
ic
Information
Related to
Industry 983,333.30 200,000.04 783,333.26
assets
Development
Assistance
Project
Subsidies
from the
Bureau of
Finance of
Related to
the Economic 9,399,999.99 800,000.02 8,599,999.97
assets
and
technological
Development
Zone
2013Strategic
emerging Related to
392,777.78 33,333.34 359,444.44
industry assets
funds
Mianyang
Municipal Related to
236,666.66 20,000.02 216,666.64
Bureau of assets
Finance
263
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Special funds
Glass
substrate
finishing Related to
548,333.33 46,666.67 501,666.66
production assets
Transformati
on Project
Special fund
subsidy for
industrial
Related to
development 433,888.86 36,666.69 397,222.17
assets
of municipal
financial
bureau
2013 fund of
Related to
strategic new 3,944,444.44 333,333.34 3,611,111.10
assets
industry
Sichuan
Province
Industrial
18,608,333.3 17,158,333.3 Related to
Transformati 1,449,999.98
5 7 assets
on and
upgrading
Project 2015
Special funds
for Industrial 39,852,753.5 36,650,568.2 Related to
3,202,185.31
Development 4 3 assets
in 2016
Technical
Reformation
of key Green
Related to
Technology 8,400,000.00 140,000.00 8,260,000.00
assets
for Glass
substrate
（840）
Intelligent
manufacturin
g pilot
Related to
demonstratio 1,000,000.00 66,666.67 933,333.33
assets
n project
subsidy fund
（100）
264
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Group
transfer
subsidy
(National key
R&D
Program, key
basic Related to
915,400.00 915,400.00
Materials assets
Technology
Promotion
and
industrializati
on Project,
2016)
Intelligent
Manufacturin
Related to
g New Mode 3,990,000.00 3,990,000.00
assets
Engineering
Project
Annual
production of
10 million
square meters
Related to
high 4,700,000.00 4,700,000.00
assets
aluminum
ultra-thin
display panel
glass items
2017 funds
for
technological
Transformati 30,000,000.0 30,000,000.0 Related to
on of 0 0 assets
Electronic
Information
Industry
Subsidy fund
for technical
transformatio
Related to
n of 2,580,000.00 172,000.00 2,408,000.00
assets
industrial
enterprises in
Fuzhou
265
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technical
Transformati
on of
Industrial
Enterprises in Related to
1,290,000.00 86,000.00 1,204,000.00
Fuzhou and assets
supporting
subsidy funds
in Fuqing
City
2018
Industrial
Internet
Innovation
Development
Project and
Intelligent
45,000,000.0 43,699,421.9 Related to
Manufacturin 1,300,578.03
0 7 assets
g Integrated
Standardizati
on and New
Model
Application
Project
Subsidy
The
Development
Bureau of
Economic
and Trade
Development
of Wuhu
Economic
and 13,417,100.0 12,522,626.8 Related to
894,473.18
technological 0 2 assets
Development
Zone in 2017
"Triple
creation"
high-end
equipment
and new
material
266
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Glass
substrate
production
30,000,000.0 30,000,000.0 Related to
line
0 0 assets
transformatio
n special
funds
Tunghsu
group limited
Related to
transfer to 150,400.00 150,400.00
assets
project five
funds
China
National
Building
Material
International
Engineering Related to
496,000.00 496,000.00
Group Co., assets
Ltd.
transferred
funds for
11-625
projects
Bengbu
Glass
Industry
Design and
Research
Institute Co.,
Related to
Ltd., China 521,000.00 521,000.00
assets
Building
Materials
Co., Ltd.,
transferred to
indirect funds
(subject 4)
Factory
building
Related to
construction 854,475.22 30,699.72 823,775.50
assets
award
877,500
267
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Qualification
acquisition 45,653,100.0 45,653,100.0 Related to
and factory 0 0 assets
rental subsidy
Special fund
for Related to
114,399.00 1,800,000.00 1,914,399.00
automobile assets
development
Project
subsidy from
the Bureau of
Related to
Finance of 6,966,547.39 588,957.03 6,377,590.36
assets
the Economic
Development
Zone
National key
R&D
Program key
basic Related to
2,280,000.00 2,280,000.00
Materials assets
Technical
Project
subsidy
Financial
subsidy for
the major
scientific and
technological
achievements
Related to
transformatio 1,000,000.00 1,000,000.00
assets
n project of
"High
Aluminium
cover Glass
complete
Technology"
2017 Special
Fund for
Industrial Related to
5,000,000.00 289,855.07 4,710,144.93
Development assets
in Economic
Development
268
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Zone
Intelligent
factory
construction
and
application of Related to
9,350,000.00 9,350,000.00
key materials assets
and
components
for curved
display
Key new
Related to
product 160,000.04 39,999.96 120,000.08
assets
projects
Financial
allocation for
Strategic
Related to
emerging 3,366,000.00 306,000.00 3,060,000.00
assets
Industries in
Sichuan
Provinc
Technical
revamping
items of
300,000 Related to
644,999.92 86,000.04 558,999.88
production assets
Line of
Pole-less
Lights Ballast
Intelligent
Engineering
Laboratory of
Related to
High 1,783,333.29 200,000.04 1,583,333.25
assets
efficiency
Lighting
system
District level
technical
Related to
reform 0.00 1,500,000.00 1,500,000.00
assets
project
subsidy 150
The subsidy 1,892,899.93 5,860.37 1,887,039.56 Related to
269
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
for the assets
construction
of the factory
building is
1,892,900
yuan
Glass
substrate 86,971,803.6 85,655,410.9 Related to
1,316,392.68
project 6 8 assets
subsidy fund
Research and
development Related d to
2,226,000.00 2,226,000.00
project funds income
159
2017 loan
Related d to
discount 1,127,484.71 1,127,484.71
income
4.871 million
Science and
Related d to
education 1,787,595.41 500,000.00 2,287,595.41
income
support fund
Subsidy for
post Related d to
0.00 2,833.74 2,833.74
stabilizatio income
n
Special funds
Related d to
for scientific 400,000.00 400,000.00
income
research 40
43.Other Non-current liabilities
In RMB
Items Balance in year-end Balance in year-begin
CDB financing 500,000,000.00
Yingkou coastal financing 108,000,000.00 108,000,000.00
Total 108,000,000.00 608,000,000.00
Other note：
Note 1: According to the investment contract signed between Tunghsu Group Co., Ltd., Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. and Yingkou Coastal Development and Construction Group Co., Ltd., Yingkou
Coastal Development and Construction Group Co., Ltd. has increased the capital of Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. with RMB 108 million. The Company undertakes all the rights and obligations
270
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
to be fulfilled by Tunghsu Group, with the repurchase no more than RMB 108 million of investment principal of
Yingkou Coastal Development and Construction Group Co., Ltd. and the compensation obligation corresponding
to 1.2%/year investment income involved in total. before June 2024, the equity of Tunghsu Yingkou
corresponding to the registered capital of RMB 108 million will be transferred to the Company after the payment
of the investment principal of RMB 108 million and 1.2%/year investment income is completed.
Note 2: According to the investment contract signed between Tunghsu Optoelectronic Technology Co., Ltd.,
Wuhu Tunghsu Optoelectronic Technology Co., Ltd. Fuzhou Tunghsu Investment Development Co., Ltd. and
China Development Bank Development Fund Co., Ltd., China Development Bank Development Fund Co., Ltd.
has increased the capital of Fuzhou Tunghsu Investment Development Co., Ltd. with RMB 50,000.00 million and
enjoyed a fixed annual rate of return. Upon completion of the project, Tunghsu Optoelectronic Technology Co.,
Ltd. will redeem the equity held by China Development Bank Development Fund Co., Ltd. in installments.
Pursuant to the relevant agreement, the Company redeemed the equity interest held by China Development Bank
Development Fund Co., Ltd. in December 2018.
44.Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
share from reserves
5,730,250,118. 5,730,250,118.
Total shares
00 00
45. Other equity instruments
46. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 21,947,720,231.34 4,475,242.57 197,484,455.39 21,754,711,018.52
Other capital reserves 31,522,375.26 31,522,375.26
Total 21,979,242,606.60 4,475,242.57 197,484,455.39 21,786,233,393.78
Other exlanation, including changes and reasons for changes：
Changes in capital reserve: The merger of Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. under the same
control in the current period results in a decrease of RMB 195,525,500.00 in capital reserve; the non-proportional
capital increase to Tunghsu (Kunshan) Display Material Co., Ltd. in the current period results in a decrease of
RMB558,955.39 in capital reserve; the non-proportional capital increase to Chenzhou Xuhong Transportation
Construction Co., Ltd., the grandson company, in the current period results in an increase of RMB 1,881,000.00 in
capital reserve; the non-proportional capital increase to Shenzhen Xinyingtong Technology Co., Ltd., the grandson
company, in the current period results in a decrease of RMB 1,400,000.00 in capital reserve; the non-proportional
capital increase to Beijing Xujiang Technology Co., Ltd., the grandson company, in the current period results in an
271
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
increase of RMB 1,002,082.92 in capital reserve; the disposal of Xuyou Electronic Material Technology (Wuxi)
Co., Ltd., a subsidiary, in the current period results in an increase of RMB 1,592,159.65 in capital reserve.
47.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
The obligation to
repurchase equity 4,422,320.00 4,422,320.00
incentive
Total 4,422,320.00 4,422,320.00
48. Other comprehensive income
In RMB
Amount of current period
Less：
Amount for Previously rec After - tax a After - tax a
Year-beginni Year-end
Items the period ognized in pro Less： ttributable t ttributable t
ng balance balance
before inco fit or loss in ot Income tax o the parent o minority s
me tax her comprehen company hareholders
sive income
2.Other comprehensive income
-29,175.8
reclassifiable to profit or loss in -4,518.45 -42,240.07 -24,657.35 -17,582.72
0
subsequent periods
Balance form the translation of -29,175.8
-4,518.45 -42,240.07 -24,657.35 -17,582.72
foreign currency financial statements 0
-29,175.8
Total of Other comprehensive income -4,518.45 -42,240.07 -24,657.35 -17,582.72
0
49. Special reserves
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Safety production cost 1,983,921.21 38,527,044.56 27,896,634.42 12,614,331.35
Total 1,983,921.21 38,527,044.56 27,896,634.42 12,614,331.35
50. Surplus reserve
In RMB
272
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 224,133,824.86 21,373,195.09 245,507,019.95
Total 224,133,824.86 21,373,195.09 245,507,019.95
51. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
3,009,860,755.82 1,823,695,278.31
beginning
Total adjustment of retained earnings at the
-155,097,190.92
beginning of the year
Retained earnings after adjustments at the year
3,009,860,755.82 1,668,598,087.39
end
Add: Net profit attributable to owners of the
2,163,607,505.39 1,730,174,564.57
Company for the period
Less: Appropriation to statutory surplus reserve 21,373,195.09 36,089,754.38
Common stock dividend payable 401,117,508.26 352,822,141.76
Retained earnings at the year end 4,750,977,557.86 3,009,860,755.82
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning 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 profits
are RMB -155,097,190.92
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
52. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 27,532,911,433.28 22,666,699,476.31 17,245,606,616.24 13,644,514,366.81
Other business 678,788,587.84 537,379,316.07 31,362,422.79 29,973,279.43
Total 28,211,700,021.12 23,204,078,792.38 17,276,969,039.03 13,674,487,646.24
53. Business tax and subjoin
273
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 33,810,482.30 25,979,433.14
Education surcharge 23,159,424.99 17,674,597.83
Property tax 16,876,028.18 12,698,590.04
Land use tax 21,346,497.10 21,300,624.63
vehicle and vessel usage tax 132,583.31 32,274.84
Stamp tax 13,856,742.20 12,325,654.26
Land VAT 124,554,237.34
Other 3,747,803.74 4,059,111.33
Total 237,483,799.16 94,070,286.07
Other note：
54.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage and welfare insurance 92,273,371.89 58,561,217.08
Shipment 90,294,560.21 63,453,918.97
Travel 20,406,607.49 8,645,322.33
Business expenses 25,334,960.74 8,067,708.92
Quality inspection certification fee 355,243.12 400,656.64
Consultancy services 23,399,717.86 10,178,128.46
car expenses 22,148,062.40 6,054,493.14
Low value consumables and repairs 4,482,483.49 970,196.52
Office fee 5,349,463.64 4,311,147.89
Depreciation 1,264,353.73 837,982.02
Advertising 10,333,401.71 6,800,911.81
Product sales guarantee fee 32,639,764.21 27,469,125.70
Other 6,194,311.02 13,409,374.25
Total 334,476,301.51 209,160,183.73
55. Administrative expenses
In RMB
274
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Items Amount of current period Amount of previous period
Wage and additional cost 288,091,860.23 180,518,516.88
Business expenses 16,030,918.90 6,808,507.59
Labor protect fee 2,722,389.79 1,944,101.86
Office fees 25,841,772.52 25,043,067.11
Travel fees 17,009,388.53 9,719,098.91
Publicize Fees 8,345,441.30 7,383,473.36
Miscellaneous charges 8,035,086.41 1,946,988.14
Depreciation accumulative 144,145,302.18 62,962,111.58
Low value consumables and repair costs 24,488,949.88 10,288,171.00
Consultation fees 53,847,915.52 51,079,357.72
Miscellaneous charges 45,502,177.92 26,010,092.75
Equity incentive cost -3,685,060.00
Other 19,418,074.40 13,106,583.04
Total 653,479,277.58 393,125,009.94
Other note：
Note: The increase in 2018 compared with 2017 is mainly due to the increases in labor and depreciation.
In RMB
Items Amount of current period Amount of previous period
Labor cost 204,666,344.41 84,414,093.62
Material expenses 220,667,309.89 109,611,282.99
Test inspection fee 86,313,301.06 28,773,748.12
Hydropower and gas charge 14,396,778.76 13,647,405.72
Depreciation expenses 23,882,733.08 12,320,763.99
Amortization of Intangible assets 4,322,047.03 1,256,897.08
Other 17,841,120.07 6,967,364.39
Total 572,089,634.30 256,991,555.91
57. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 1,204,287,050.60 1,142,316,421.06
Less：Interest income 506,083,846.24 442,489,241.64
Exchange gains and losses -23,199,230.78 18,458,150.08
275
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Commission charge 21,943,537.39 5,619,616.01
Note discount rate 7,137,552.53 14,514,160.04
Financing 18,000,000.00 14,509,424.87
Other 610,110.16 1,048,970.03
Total 722,695,173.66 753,977,500.45
58. Asset impairment loss
In RMB
Items Amount of current period Amount of previous period
I. Bad debt loss 54,879,882.12 45,785,385.37
II. Losses for falling price of inventory 28,437,407.36 9,198,134.09
XIII.Goodwill impairment loss 10,163,443.61
Total 93,480,733.09 54,983,519.46
Other note
Note: The increase in 2018 compared with 2017 is mainly due to the increase in inventory depreciation loss and
goodwill impairment loss.
59.Other gains
In RMB
Items Amount of this period Amount of last period
Government subsidy 250,713,869.96 352,095,131.45
Personal income tax fee 590,083.12
Total 251,303,953.08 352,095,131.45
60. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
64,366,051.65 4,663,254.00
method
Disposal of investment income from long-term
1,935,149.59
equity investments
Financing income 14,623,990.55 59,041,599.98
Total 80,925,191.79 63,704,853.98
Other note
276
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Investment income from disposal of long-term equity investment: The investment income generated by the
disposal of Xuyou Electronic Material Technology (Wuxi) Co., Ltd., a subsidiary is RMB 3,182,206.12. The
investment income generated by the current liquidation of the partnership of Tunghsu (Deyang) Graphene
Industrial Development Fund, the joint venture, is RMB -1,195,383.73. The investment income generated after
the grandson disposes of the current liquidation of Tunghsu Technology Co., Ltd. is RMB -51,672.80.
61. Fair value change income
62. Assets disposal income
In RMB
Source Amount of current period Amount of previous period
Non-current assets disposal gains and
1,515,607.51
losses
Including：Income from disposal of fixed
1,515,607.51
assets
Total 1,515,607.51
63. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Government Subsidy 203,256.52 1,646,890.81 203,256.52
Unpayable amount 1,100,000.00 1,100,000.00
Net fine income 200,053.96 200,053.96
Insurance premium 10,799,394.15 10,799,394.15
Other 6,760,566.13 1,922,171.57 6,760,566.13
Total 19,063,270.76 3,569,062.38 19,063,270.76
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Subsidy Issuing subsidies on
Issuing body Nature special current previous d/income
items reason the current
subsidies period period –related
profit and
loss
Housing Finance Subsidy Grants No No 1,546,890.81 Related to
277
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
maintenance bureau of obtained due income
subsidies suqian to the country
economic and encourage
technological and support
development specific
zone industries
(Obtained in
accordance
with the
national
policies and
regulations)
Grants
obtained due
to
conforming
to the local
Land tax Coastal Subsidy supporting Related to
No No 100,000.00
return industry base policies such income
as local
government’s
investment
attraction
policy
Grants
obtained due
to research
China
and
Building
Research Subsidy development, Related to
Materials No No 153,262.52
funds technical income
Design
renovation
Institute
and
transformatio
n, etc.
A subsidy
obtained due
to
Social undertaking
Subsidy Related to
稳岗补贴 security the state’s No No 29,994.00
income
bureau safeguarding
for protection
for a certain
utility or
278
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
socially
necessary
product
supply or
price control
function.
A subsidy
obtained due
to
undertaking
the state’s
safeguarding
for protection
Tax for a certain Related to
Tax bureau Award No No 20,000.00
incentives utility or income
socially
necessary
product
supply or
price control
function.
Total 203,256.52 1,646,890.81
64.Non-Operation expense
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Donation expense 2,764,006.00 695,000.00 2,764,006.00
Penalty 2,526,929.14 753,616.36 2,526,929.14
Non current assets disposal loss 1,660,746.89 65,061.78 1,660,746.89
Other 1,941,022.97 895,094.66 1,941,022.97
Total 8,892,705.00 2,408,772.80 8,892,705.00
65. Income tax
(1) Details of income tax
In RMB
Items Amount of current period Amount of previous period
Current Income tax 486,169,741.93 419,418,513.13
279
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Deferred income tax -17,166,200.53 -83,183,922.77
Total 469,003,541.40 336,234,590.36
（2）Accounting profit and tax expense adjustment process
InRMB
Items Amount of current period
Total profit 2,737,831,627.58
Income tax expense at statutory / applicable tax rates 410,674,744.19
Effect of different tax rates applicable to subsidiaries 53,321,675.38
Effect of non-taxable income -5,732,239.03
The influence of R & D expenses deduction -14,980,132.99
Effect of non-taxable income 24,827,760.53
Affect the use of deferred tax assets early unconfirmed
-320,369.80
deductible losses
The current period does not affect the deferred tax assets
17,547,779.09
recognized deductible temporary differences or deductible loss
Tax preferences -41,462,810.37
Changes in tax rate resulting in changes in the balance of
deferred income tax assets/liabilities at the beginning of the 25,127,134.40
period
Income tax expense 469,003,541.40
66 .Other comprehensive income
Refer to section XI Notes, VII, 485 for details.
67.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 72,580,223.31 140,642,106.05
Government subsidy 285,674,986.53 182,198,655.37
Deposits income 341,556,036.47 898,714,597.84
Advances fund 95,881,327.96 128,508,839.16
Withholding VAT refund 244,105,762.29
280
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Personal official loans 49,113,531.62 42,487,900.06
Collection of funds 12,042,902.50
Insurance claims 9,121,325.00
Other 2,674,019.34 1,232,168.84
Total 1,112,750,115.02 1,393,784,267.32
(2)Other cash paid related to operation activities
In RMB
Items Amount of current period Amount of previous period
Donation expenses 3,003,932.05 164,100.97
Petty cash 37,390,022.00 39,765,728.35
Deposit 384,336,174.24 1,032,128,416.85
Period expenses paid in cash 572,602,133.37 365,453,243.31
Total 997,332,261.66 1,437,511,489.48
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Investment 200,000,000.00 50,000,000.00
Cash and cash equivalents of the
subsidiary on the date of acquisition after
51,681,062.80
deducting the monetary investments paid
for the acquisition
Fixed deposit 1,402,500,000.00
Current account 463,061,030.00 9,004,080.00
Total 2,065,561,030.00 110,685,142.80
（4）Other Cash payable related to investment activities
In RMB
Items Amount of current period Amount of previous period
Short-term Financing 113,658,549.30 9,940,000,000.00
Fixed deposit 3,751,750,000.00 1,352,500,000.00
Investment 200,000,000.00 50,000,000.00
281
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Current account 449,402,614.89 29,503,800.00
Total 4,514,811,164.19 11,372,003,800.00
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
Interest income 426,148,446.55 252,390,350.30
Finance lease 533,750,000.00 2,502,800,000.00
Factoring financing 27,199,088.88 100,000,000.00
Fixed deposit 157,000,000.00
Current account 481,240,420.45 3,224,325,632.86
Total 1,625,337,955.88 6,079,515,983.16
（6）Other Cash payable related to Financing activities
In RMB
Items Amount of current period Amount of previous period
Bank charges 37,017,570.05 39,217,775.67
Finance lease deposit 47,666,666.66
Factoring financing 17,199,088.88
Finance lease 984,205,977.49 693,258,375.43
Acquisition of minority equity payments 571,040,000.00
Sunlong No private funds 31,979,671.29
Current account 856,657,166.48 2,476,041,407.56
Total 2,448,920,714.02 3,305,362,985.49
68. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
2,268,828,086.18 1,920,899,021.88
Net profit
282
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
93,480,733.09 54,983,519.46
Add: Impairment loss provision of assets
Depreciation of fixed assets, oil and gas 858,753,519.46
1,003,010,229.32
assets and consumable biological assets
Amortization of intangible assets 88,543,387.92 29,493,603.50
Amortization of long-term deferred expenses 8,479,266.12 10,640,874.16
Loss on disposals of fixed assets, intangible
assets and other long-term assets ("-" for -1,515,607.51
gains)
Loss on write-off of fixed assets 1,660,746.89 65,061.78
Financial cost 823,755,233.08 882,333,791.42
Investment losses -80,925,191.79 -63,704,853.98
Decrease in deferred income tax assets -6,306,027.61 -81,706,028.32
Increased in deferred income tax liabilities -10,860,172.92 -1,477,894.45
Decrease in inventories 799,334,364.53 -701,656,101.00
Decease in operating receivables -10,076,576,343.39 -2,798,458,529.59
Increase in operating payables 5,621,600,010.47 998,755,817.13
Cash flows from operating activities 388,252,004.52 1,253,178,511.31
2.Significant investment and financing
-- --
activities not affecting cash flows
Fixed assets acquired under financial leasing 525,209,012.42 3,234,833,741.02
3．Changes in cash and cash equivalents： -- --
Ending balance of cash 14,916,637,291.04 25,114,660,756.25
Less: Beginning balance of cash 25,114,660,756.25 25,538,252,528.80
Net increase of cash and cash equivalents -10,198,023,465.21 -423,591,772.55
(2) Cash paid for acquiring subsidiaries and other business units
In RMB
Items Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
313,924,083.50
in the Current Period Paid in the Current Period
Including： --
Shenzhen Sanbao Innovation Intelligence Co., Ltd. 33,598,587.50
Zhongcheng National construction co., Ltd. 39,999,996.00
Huaxi Nanchong Automobile Co., Ltd. 44,800,000.00
283
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu（Yingkou）Optoelectronic Display Co., Ltd. 195,525,500.00
Less：Cash or Cash Equivalent Owned by Subsidiary on the
4,930,677.33
Purchasing Date
Including： --
Shenzhen Sanbao Innovation Intelligence Co., Ltd. 3,075,645.81
Zhongcheng National construction co., Ltd. 1,854,947.92
Huaxi Nanchong Automobile Co., Ltd. 83.60
Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.
Add： Cash or cash equivalents paid in the current period for
83,689,833.67
business combinations in the previous period
Including： --
Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. 17,670,558.47
Jiangsu Tengda Optics Technology Co., Ltd. 20,019,275.20
Changzhou Hongsheng Public Transportation Construction
8,000,000.00
Development Co., Ltd.
Guangxi Sunlong Automobile Co., Ltd. 38,000,000.00
Obtain the net cash paid by the subsidiary 392,683,239.84
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Cash or cash equivalents received by the disposal company in the
550,103,761.40
current year
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. 550,000,000.00
Tunghsu Technology Co., Ltd. 103,761.40
Less：Cash and cash equivalents held by a controlling subsidiary 157,924,147.90
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. 157,924,147.90
Tunghsu Technology Co., Ltd.
Including： --
Net cash received from disposal subsidiaries 392,179,613.50
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-beginning
284
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
14,916,637,291.04 25,114,660,756.25
I. Cash
2,593,055.78 2,461,658.94
Including: cash in treasury
Bank savings could be used at any time 14,914,044,235.26 24,971,467,452.68
Other monetary capital could be used at any
140,731,644.63
time
III. Balance of cash and cash equivalents at
14,916,637,291.04 25,114,660,756.25
the period end
69. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
70. The assets with the ownership or use right restricted
In RMB
Items Closing book value Causation of limitation
Monetary funds 4,890,457,106.12 Mainly term deposits and deposits
Inventory 317,769,074.78 Mortgage loans
Set up the mortgage and the fixed assets of
Fixed assets 9,130,840,228.68
the financial lease
Intangible assets 352,121,698.93 Pledge loans
Construction in progress 3,143,663,638.12 Pledge loans
Investment property 678,833,230.08 Pledge loans
Account receivable 455,136,717.34 Factoring financing
Total 18,968,821,694.05 --
71. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Cash and bank balances -- --
Including：USD 6,526,979.25 6.8632 44,795,960.10
Euro 6,016.60 7.8473 47,214.06
HKD 10,379.45 0.8762 9,094.97
JPY 563,299,791.60 0.0619 34,860,934.19
Account receivable -- --
Including：USD 53,519,866.68 6.8632 367,317,549.01
285
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Euro 1,490.00 7.8473 11,692.48
HKD 23,697,714.31 0.8762 20,763,937.29
JPY 981,801,683.00 0.0619 60,760,760.76
Long-term loans -- --
Including：USD 5,000,000.00 6.8632 34,316,000.00
Euro
HKD
Notes payable
Including：USD 5,015,000.00 6.8632 34,418,948.00
Interest payable
Including：USD 170,737.09 6.86 1,171,802.79
Short-term loans
Including：USD 8,407,370.00 6.8632 57,701,461.78
Account payable
Including：USD 75,451,654.63 6.8632 517,839,796.09
Euro 2,680,492.77 7.8473 21,034,630.92
HKD 28,442,325.26 0.8762 24,921,165.40
JPY 234,698,455.00 0.0619 14,521,991.37
GBP 1,230,210.14 8.6762 10,673,549.18
(2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
72. Hedging
Disclosure of hedging items and related hedging instruments, qualitative and quantitative information on hedged
risks in accordance with the hedging category:
73.Govemment subsidy
1）Government subsidies confirmed in current period
In RMB
Amount included in current
Type Amount Items
profit or loss
Project subsidy of Chongqing
1,760,000.00 Deferred income
Liangjiang New Area Finance
286
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Bureau
Equipment subsidy of
Chongqing Liangjiang New 880,000.00 Deferred income
Area Finance Bureau
Project subsidy for industrial
internet innovation
development project and
integrated standardization and 45,000,000.00 Deferred income
new mode application of
intelligent manufacturing in
2018
Special fund for glass substrate
30,000,000.00 Deferred income
production line transformation
Subsidy for qualification
45,653,100.00 Deferred income
acquisition and plant rental
Special fund for automobile
1,800,000.00 Deferred income
development
Special fund for industrial
development in Economic 5,000,000.00 Deferred income
Development Zone in 2017
Intelligent factory construction
and application project of key
9,350,000.00 Deferred income
materials and components for
curved display
Subsidy for district-level
technical transformation 1,500,000.00 Deferred income
projects150
Subsidy for plant construction:
1,892,899.93 Deferred income
RMB 1,892,900
Science and education support
500,000.00 Deferred income
fund
Subsidy for post stabilization 2,833.74 Deferred income
Special fund for scientific and
technological achievement 635,162.01 Other income 635,162.01
transformation in 2015
1.9 Receive Jinshan Talent
500,000.00 Other income 500,000.00
subsidy fund
3.12 CCB receives the science
and technology innovation 100,000.00 Other income 100,000.00
award of the Science and
287
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Bureau
3.1 Receive the award for
promoting industrial towns in 80,000.00 Other income 80,000.00
2017
3.16 CCB receives the first
batch of patent funds from the
15,000.00 Other income 15,000.00
Science and Technology Bureau
in 2018
2017 provincial intellectual
property management system 10,000.00 Other income 10,000.00
performance evaluation award
4.8 CCB receives the incentive
funds for outsourcing
50,000.00 Other income 50,000.00
implementation from the
Finance Bureau
5.31 CCB receives the reward
funds for the implementation of 10,000.00 Other income 10,000.00
the enterprise standards
The second batch of patent
6,000.00 Other income 6,000.00
special funds in 2018
5.31 CCB receives reward
funds for academician 100,000.00 Other income 100,000.00
workstation
Subsidy for "Double-hundred
Plans" project investment of
200,000.00 Other income 200,000.00
Henan Provincial People's
Government
Budget for complete set of
technology research and
10,000.00 Other income 10,000.00
development of TFT glass
substrate
Subsidy for TFT glass substrate
666,666.67 Other income 666,666.67
project
Subsidy for technology
transformation project
investment within budget of
National Development and 933,333.33 Other income 933,333.33
Reform Commission and
Ministry of Industry and
Information Technology
Subsidy for TFT glass substrate 1,333,333.33 Other income 1,333,333.33
288
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
project.
Special fund for major science
and technology of Zhengzhou 66,666.67 Other income 66,666.67
Municipal Finance Bureau
Fund for national key industries
and technical transformation
933,333.33 Other income 933,333.33
project support of Municipal
Finance Bureau
Fund for industrial development
support of Economic and
466,666.67 Other income 466,666.67
Technological Development
Zone Finance Bureau
Fund for provincial supporting
independent innovation of 400,000.00 Other income 400,000.00
enterprises
Fund for financial discount
133,333.33 Other income 133,333.33
support
UNESCO fund of Finance
100,000.00 Other income 100,000.00
Bureau
Supporting fund for industrial
restructuring projects of District 186,666.67 Other income 186,666.67
Finance Bureau
Industrial interest discount and
106,666.67 Other income 106,666.67
budget
Financial discount of
state-owned assets holding
333,333.33 Other income 333,333.33
operation limited company in
Henan Province
The first batch of financial
funds for industrial 320,000.00 Other income 320,000.00
restructuring projects in 2013
Special fund for high-end
information industry chain of
Economic and Technological 333,333.33 Other income 333,333.33
Development Zone Finance
Bureau
Subsidy fund for investment in
2,291,600.16 Other income 2,291,600.16
project equipment in 2015
The second batch of funds for
173,333.39 Other income 173,333.39
accepted provincial industrial
289
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
adjustment projects in 2011 and
2012 of Zhengzhou Municipal
Finance Bureau
Occupational injury prevention
fee of Zhengzhou Municipal
30,000.00 Other income 30,000.00
Social Security Bureau in
January
Unemployment insurance and
post stabilization subsidy of
215,600.00 Other income 215,600.00
Zhengzhou Municipal Social
Security Bureau
College student probation
subsidy of Zhengzhou 246,000.00 Other income 246,000.00
Municipal Finance Bureau
Special subsidy for Zhengzhou
200,000.00 Other income 200,000.00
opening-up in 2017
Patent subsidy of Zhengzhou
Economic and Technological
14,400.00 Other income 14,400.00
Development Zone
Administrative Committee
Patent subsidy of Zhengzhou
Economic and Technological
22,800.00 Other income 22,800.00
Development Zone
Administrative Committee
Subsidy funds after R&D
2,000,000.00 Other income 2,000,000.00
expenses in 2017
Corporate licensed patent
46,400.00 Other income 46,400.00
funding in 2017
Service charge for returning
8,816.64 Other income 8,816.64
three generations
Subsidy for post stabilization 10,553.00 Other income 10,553.00
New subsidy for specialization 250,000.00 Other income 250,000.00
Subsidy for post stabilization 17,946.00 Other income 17,946.00
Enterprise Technology
Innovation Project -
50,000.00 Other income 50,000.00
Engineering Technology
Research Center
Industrial transformation and
50,000.00 Other income 50,000.00
upgrading support
Accelerate the transformation 30,000.00 Other income 30,000.00
290
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
and upgrading of enterprises to
improve quality and efficiency
support
Investment in strategic
emerging industry projects
799,999.92 Other income 799,999.92
within the budget of the central
government
Fund for municipal key
technological transformation 99,999.96 Other income 99,999.96
projects in 2011
Fund for strategic emerging
industry development 114,999.96 Other income 114,999.96
promotion in 2011
Projects supported by the
electronic information industry 200,000.04 Other income 200,000.04
development fund in 2012
Subsidy of Economic and
Technological Development 800,000.02 Other income 800,000.02
Zone Finance Bureau
Glass substrate finishing
achievement transformation 46,666.67 Other income 46,666.67
project
Industrial transformation and
upgrading projects in Sichuan 1,449,999.98 Other income 1,449,999.98
Province in 2015
Fund for strategic emerging
33,333.34 Other income 33,333.34
industries in 2013
Special fund of Mianyang
20,000.02 Other income 20,000.02
Municipal Finance Bureau
Special fund subsidy for
industrial development of 36,666.69 Other income 36,666.69
Municipal Finance Bureau
Funds allocated by the
Economic Development Zone
Government on behalf of the
333,333.34 Other income 333,333.34
Provincial Finance Department
for strategic emerging industries
in 2013
Special fund for industrial
development in Economic 3,202,185.31 Other income 3,202,185.31
Development Zone in 2016
291
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Subsidy for project of
Economic Development Zone 588,957.03 Other income 588,957.03
Finance Bureau
Special fund for industrial
development in Economic 289,855.07 Other income 289,855.07
Development Zone in 2017
(Municipal supporting) funds
200,000.00 Other income 200,000.00
for talent introduction project
Major innovative products 1,000,000.00 Other income 1,000,000.00
Encourage technological
transformation of enterprises in 500,000.00 Other income 500,000.00
2017
First batch of patent subsidies in
16,000.00 Other income 16,000.00
2018
Provincial patent subsidy fund 8,400.00 Other income 8,400.00
Additional expenditure for the
120,000.00 Other income 120,000.00
talent introduction in 2017
Provincial patent award in 2017 150,000.00 Other income 150,000.00
Patent subsidy 21,260.00 Other income 21,260.00
Provincial intellectual property
project (high strength glass
200,000.00 Other income 200,000.00
version conversion project) in
2018
National project of talent and
500,000.00 Other income 500,000.00
expert introduction in 2018
Group transfer payment subsidy
(key basic materials technology
upgrading and industrialization
91,540.00 Other income 91,540.00
special project of the state key
research and development plan
in 2016)
Enterprise recruitment subsidy 3,000.00 Other income 3,000.00
First batch of provincial
intellectual property funds in 50,000.00 Other income 50,000.00
2018
Fund subsidy for civil-military
20,000.00 Other income 20,000.00
integration
Subsidy for technological
80,000.00 Other income 80,000.00
transformation and innovation
292
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
achievements in 2017
Subsidy for enterprise post
60,561.00 Other income 60,561.00
stability in 2018
Promote benefit up the step:
enterprises with warehousing
105,000.00 Other income 105,000.00
taxes breaking through RMB 20
million
Land tax refund for coastal
500,000.00 Other income 500,000.00
industrial bases
Patent subsidy of Yingkou
17,100.00 Other income 17,100.00
Science and Technology Bureau
Subsidy fund for glass substrate
1,316,392.68 Other income 1,316,392.68
project
Patent subsidy 5,000.00 Other income 5,000.00
Tax refund 63,490,000.00 Other income 63,490,000.00
Provincial science and
60,000.00 Other income 60,000.00
technology award in 2018
Subsidy for construction of
demonstration activity room of 200,000.00 Other income 200,000.00
party committee
Municipal science and
technology plan project fund of
210,000.00 Other income 210,000.00
Wuhu Science And Technology
Bureau
The third batch of "5111"
industrial team support funds of
Wuhu Municipal CPC 100,000.00 Other income 100,000.00
Committee Organization
Department
Technical standard award of
Wuhu Economic and
30,000.00 Other income 30,000.00
Technological Development
Zone Finance Bureau
Trademark registration award of
Wuhu Economic and
600.00 Other income 600.00
Technological Development
Zone Finance Bureau
Provincial culture
demonstration enterprise funds 10,000.00 Other income 10,000.00
of Wuhu Economic and
293
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technological Development
Zone Finance Bureau
Strategic emerging industries
talent support of Wuhu Human
100,000.00 Other income 100,000.00
Resources and Social Security
Bureau
Independent innovation subsidy
of Wuhu Economic
400,000.00 Other income 400,000.00
Development Zone Finance
Bureau
Independent innovation award
of Wuhu Economic and
200,000.00 Other income 200,000.00
Technological Development
Zone Finance Bureau
Independent innovation policy -
patent award of Wuhu
Economic and Technological 106,250.00 Other income 106,250.00
Development Zone Finance
Bureau
Government subsidy 240,000.00 Other income 240,000.00
Post stability subsidy of
development zone in 2018 of 219,999.00 Other income 219,999.00
Wuhu Social Insurance Center
Training and identification
subsidy of Wuhu Economic and
126,000.00 Other income 126,000.00
Technological Development
Zone Finance Bureau
Industrial transformation and
upgrading funds of Finance
6,742,100.00 Other income 6,742,100.00
Division of Ministry of Industry
and Information Technology
Construction funds for building
strong province in 2018 of
Wuhu Economic and 3,000,000.00 Other income 3,000,000.00
Technological Development
Zone Finance Bureau
Provincial foreign trade subsidy
of Wuhu Economic and
189,300.00 Other income 189,300.00
Technological Development
Zone Finance Bureau
Subsidy for infrastructure (land 2,244,600.00 Other income 2,244,600.00
294
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
refund)
Industrial revitalization and
technological transformation 233,333.28 Other income 233,333.28
projects
“Subsidy for "Three Majors and
One Innovation" emerging 894,473.18 Other income 894,473.18
industries
Technical modifications 266,666.68 Other income 266,666.68
Subsidy fund for glass substrate
1,000,000.00 Other income 1,000,000.00
project
Industrial development fund 466,666.68 Other income 466,666.68
Financial discount of project 31,333.32 Other income 31,333.32
Subsidy for industrial
revitalization and technological 6,515,333.32 Other income 6,515,333.32
transformation projects
Special fund subsidy for
provincial strategic emerging 333,333.32 Other income 333,333.32
industries
Special fund for technological
2,156,000.00 Other income 2,156,000.00
transformation
Fund for strategic emerging
2,000,000.00 Other income 2,000,000.00
industry development projects
Funds allocated by High-tech
426,666.68 Other income 426,666.68
Zone for substrate projects
Reward fund for production line 1,506,943.40 Other income 1,506,943.40
Green key technological
transformation of glass 140,000.00 Other income 140,000.00
substrate (840)
Subsidy fund for intelligent
manufacturing pilot 66,666.67 Other income 66,666.67
demonstration project (100)
Fund for CSCEC International
2,226,000.00 Other income 2,226,000.00
Project 159
Special fund for scientific
400,000.00 Other income 400,000.00
research 40
Project fund subsidy 6,824,000.00 Other income 6,824,000.00
Municipal patent application
500.00 Other income 500.00
funds in 2018
Subsidies for input-output 1,400.00 Other income 1,400.00
295
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
surveyors in Statistical Bureau
Receive the bonus for new flat
panel display glass substrate
technology achievement 80,000.00 Other income 80,000.00
transformation and
industrialization
Seagull Plan 999,980.01 Other income 999,980.01
Funds for technological
innovation projects of key 89,000.00 Other income 89,000.00
industries in Kunshan in 2018
Key industry projects of
200,000.00 Other income 200,000.00
Science and Technology Bureau
Receive patent subsidy of
Shanghai Intellectual Property 7,232.00 Other income 7,232.00
Office
Subsidy for additional training
34,464.00 Other income 34,464.00
in education
Subsidy for education costs
with additional training of
101,616.00 Other income 101,616.00
Human Resources and Social
Security Bureau
Receive subsidy for VOC
governance of Shanghai
Minhang District 110,000.00 Other income 110,000.00
Environmental Protection
Bureau
Acceptance balance of key
projects of zhangjiang special 500,000.00 Other income 500,000.00
fund
Acceptance funds for science
40,000.00 Other income 40,000.00
and technology projects
Acceptance balance of key
projects of Zhangjiang special 500,000.00 Other income 500,000.00
fund
The fourth batch of domestic
17,800.00 Other income 17,800.00
intellectual property funds
Reward for plant construction 30,699.72 Other income 30,699.72
Budget subsidy for science and
300,000.00 Other income 300,000.00
technology projects
Subsidy for enterprise post 74,146.00 Other income 74,146.00
296
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
stability
Recommended catalogue
63,000,000.00 Other income 63,000,000.00
subsidy
Steady growth subsidy 1,000,000.00 Other income 1,000,000.00
Hi-tech subsidy 100,000.00 Other income 100,000.00
Subsidy for project R&D of
200,000.00 Other income 200,000.00
Technology Center
Probation subsidy 3,600.00 Other income 3,600.00
Reward fund for science and
100,000.00 Other income 100,000.00
technology award
Down payment for planned
210,000.00 Other income 210,000.00
projects
Patent budget subsidy of
Nanxun District Science and 16,800.00 Other income 16,800.00
Technology Bureau
Special budget subsidy of
Nanxun District Science and 50,000.00 Other income 50,000.00
Technology Bureau
Special budget subsidy of
100,000.00 Other income 100,000.00
Huzhou Finance Bureau
Subsidy for talent development
1,000,000.00 Other income 1,000,000.00
in Nanxun District
Tax incentive 50,000.00 Other income 50,000.00
Subsidy for post stabilization 5,376.32 Other income 5,376.32
The second quarter growth
support of Enterprise Service 300,000.00 Other income 300,000.00
Center
New warehousing support of
100,000.00 Other income 100,000.00
modern service industry
The third quarter growth
100,000.00 Other income 100,000.00
support of Service Center
Talent subsidy 31,500.00 Other income 31,500.00
Integrated standardization
project of intelligent 2,550,000.00 Other income 2,550,000.00
manufacturing in 2016
Subsidy allocated by industrial
development for building strong 4,620,000.00 Other income 4,620,000.00
province
297
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Integrated standardization
project of intelligent 3,990,000.00 Other income 3,990,000.00
manufacturing in 2016
Provincial key R&D project
900,000.00 Other income 900,000.00
funds in 2017
VAT refund in 2017 1,590,000.00 Other income 1,590,000.00
Provincial technology
enterprises warehousing award
123,300.00 Other income 123,300.00
in 2017 of Suqian Development
Zone Finance Bureau
Provincial financial funds for
research and development
expenses in 2017 of Suqian 203,100.00 Other income 203,100.00
Development Zone Finance
Bureau
Provincial innovation coupon
cashout fund in 2016 of Suqian
150,000.00 Other income 150,000.00
Development Zone Finance
Bureau
special bonus for municipal
industry introducing science
and technology innovation in 150,000.00 Other income 150,000.00
2017 of Suqian Development
Zone Finance Bureau
One-off award for talent
introduction in Suqian City in 10,000.00 Other income 10,000.00
2017
Municipal patent subsidy in
20,500.00 Other income 20,500.00
Suqian City in 2017
Subsidy fund for technological
transformation of industrial 172,000.00 Other income 172,000.00
enterprises in Fuzhou City
Fuqing supporting subsidy for
technological transformation of
86,000.00 Other income 86,000.00
industrial enterprises in Fuzhou
City
G8.5 TFT-LCD glass substrate
precision intelligent
3,000,000.00 Other income 3,000,000.00
manufacturing digital workshop
construction project
298
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Project subsidy for industrial
internet innovation
development project and
integrated standardization and 1,300,578.03 Other income 1,300,578.03
new mode application of
intelligent manufacturing in
2018
Special fund for utilization of
300,000.00 Other income 300,000.00
foreign capital in 2017
Award for increasing
production and efficiency in the 343,000.00 Other income 343,000.00
first quarter of 2018
Award for city-wide industrial
steady growth, increased
610,000.00 Other income 610,000.00
production and efficiency in
2017
Award for policy upgrading
scale industrial enterprises in 200,000.00 Other income 200,000.00
2017
New material insurance subsidy 2,922,323.47 Other income 2,922,323.47
Award for increasing
71,500.00 Other income 71,500.00
production and efficiency
Urban bus subsidy of Municipal
1,508,400.00 Other income 1,508,400.00
Finance Bureau
Key new product projects 39,999.96 Other income 39,999.96
Financial fund for strategic
emerging industries in Sichuan 306,000.00 Other income 306,000.00
Province
Technical transformation
project of 300,000 sets of
86,000.04 Other income 86,000.04
electrodeless lamp ballast
production line
Intelligent Engineering
Laboratory of High Efficiency 200,000.04 Other income 200,000.04
Lighting System
First batch of science and
technology plans in 2018 (key 300,000.00 Other income 300,000.00
new products of the province)
District science and technology
20,000.00 Other income 20,000.00
plan
299
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Interest subsidy for working
210,000.00 Other income 210,000.00
capital loans
Industrial enterprise support 400,000.00 Other income 400,000.00
Dynamic monitoring of
1,200.00 Other income 1,200.00
unemployment
Government subsidy for post
47,132.90 Other income 47,132.90
stability
Reward and subsidy for
14,424,000.00 Other income 14,424,000.00
enterprise operation (tax refund)
Employment subsidy 16,800.00 Other income 16,800.00
Special support project fund for
50,000.00 Other income 50,000.00
safety production
Subsidy fund for sales income 6,924,000.00 Other income 6,924,000.00
Post-subsidy bonus for
50,000.00 Other income 50,000.00
high-tech enterprises
Subsidy for booth fee of China
50,000.00 Other income 50,000.00
Industrial Expo
Subsidy fund for Health
Literacy Promotion Action in 10,000.00 Other income 10,000.00
2018
Subsidy of Family Planning
10,000.00 Other income 10,000.00
Bureau
Bonus for automobile in the
2,392,000.00 Other income 2,392,000.00
consumption month
Budget for emergency
management standardization 10,000.00 Other income 10,000.00
construction demonstration site
Subsidy fund for supporting key
200,000.00 Other income 200,000.00
industries
Subsidy for plant construction:
5,860.37 Other income 5,860.37
RMB 1,892,900
Subsidy for statistical primary
2,000.00 Other income 2,000.00
construction
Special advanced
manufacturing industry
535,000.00 Other income 535,000.00
development project in
Minhang District in 2018
Small and medium-sized
120,000.00 Other income 120,000.00
enterprise technology
300
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
innovation plan project in
Minhang District
Shanghai technology-based
small and medium-sized
200,000.00 Other income 200,000.00
enterprise technology
innovation fund project
Science and technology award 5,600.00 Other income 5,600.00
Feasibility study budget 153,262.52 Non- operating income 153,262.52
Subsidy for post stabilization 29,994.00 Non- operating income 29,994.00
Tax incentive 20,000.00 Non- operating income 20,000.00
（2）Government subsidy return
□ Applicable √Not applicable
74. Other
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
（1）Enterprise consolidation not under the same control in reporting period
In RMB
Income of Net Profit of
Determinatio Acquire Acquire from
Ratio of
Time-point of Obtained Method of n Basis on from the the
Name of Obtained Purchasing
Obtained Cost of Obtained the Purchasing Purchasing
Acquiree Equity Date
Equity Equity Equity Purchasing Date to the Date to the
(100%)
Date End of the End of the
Period Period
Shenzhen
Merger of
Sanbao
157,598,587. non-identical Acquisition -12,733,040.1
Chuangxin May 30,2018 67.00% May 30,2018 7,659,108.35
00 controlled of controlled 3
Intelligent
enterprises
Co., Ltd.
Zhongcheng Merger of
National March 140,000,000. non-identical March Acquisition
70.00% -7,172,706.59
construction 30,2018 00 controlled 30,2018 of controlled
co., Ltd. enterprises
Merger of
Huaxi Bus 56,000,000.0 Acquisition
April 4,2018 100.00% non-identical April 4,2018
Co., Ltd. 0 of controlled
controlled
301
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
enterprises
Other note：
（2）Consolidation Cost and Goodwill
In RMB
Consolidation Cost Shenzhen Sanbao Chuangxin Zhongcheng National Huaxi Bus Co., Ltd.
Intelligent Co., Ltd. construction co., Ltd.
--Cash 157,598,587.50 39,999,996.00 44,800,000.00
Contingent fair value 100,000,004.00
Other 11,200,000.00
Consolidation Cost 157,598,587.50 140,000,000.00 56,000,000.00
Less：Reduction: Obtained
Definable Net Assets Fair 88,710,182.00 6,730,432.38 83.60
Proportion
Goodwill/ The Consolidation
Cost is Less Than the Obtained
68,888,405.50 133,269,567.62 55,999,916.40
Definable Net Assets Fair
Proportion
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Shenzhen Sanbao Chuangxin Zhongcheng National construction Huaxi Bus Co., Ltd.
Intelligent Co., Ltd. co., Ltd.
Fair value on Book value on Fair value on Book value on Fair value on Book value on
purchase date purchase date purchase date purchase date purchase date purchase date
Cash and bank
127,075,645.81 127,075,645.81 1,854,947.92 1,854,947.92 83.60 83.60
balances
Account
203,360.00 203,360.00
receivable
Inventory 26,320,943.47 18,724,138.92
Fixed assets 11,205,970.95 9,391,876.78 41,040.82 44,833.14
Intangible asset 53,241,307.46 53,849,371.07 14,204,413.89
Prepayments 318,723.00 318,723.00 284,956.45 284,956.45
Other receivable 5,297.05 5,297.05 171,120.78 171,120.78
Other current
7,989,608.01 7,989,608.01 28,559.54 28,559.54
assets
Deferred Income
154,125.90 2,110.00 948.08
tax assets
302
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Account payable 4,200.00 4,200.00
Deferred Income
2,352,724.68 3,551,103.47
tax Liabilities
Advance
410,909.49 410,909.49
Payments
Employees’ wage
59,926.94 59,926.94 1,261,899.22 1,261,899.22
payable
Tax payable 7,677.39 7,677.39
Other account
91,280,486.44 91,280,486.44 2,153,881.38 2,153,881.38
payable
Net assets 132,403,256.71 125,801,130.38 9,614,903.41 -1,035,562.77 83.60 83.60
Less：Minority
43,693,074.71 41,514,373.03 2,884,471.03 -310,668.83
equity
Acquire net assets 88,710,182.00 84,286,757.35 6,730,432.38 -724,893.94 83.60 83.60
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the controlduring the reporting period
□ Yes √ No
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income of the Net profit of
Income of the Net profit of
combined the combined
Recognition merged party the combined
party from party from
Combined Proportion of Combination basis of during the party during
Basis the beginning the beginning
party the profits date combination comparison the period of
of the year to of the year to
date period comparison
the date of the date of
the merger the merger
Tunghsu
Pay
（Yingkou） 16,069,429.2 -13,043,965.2
Same parent consideration 27,289,664.9 -11,435,425.3
Optoelectroni 65.00% June 30,2018 1 2
company , control 9 3
c Display
operation
Co., Ltd.
（2） Consolidation Cost
In RMB
Consolidation Cost Tunghsu(Yingkou)Optoelectronic Display Co., Ltd.
--Cash 195,525,500.00
303
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.
End of previous period
Merger date
Cash and bank balances 49,876,382.38 85,581,351.01
Account receivable 26,247,411.94 27,508,065.58
25,751,148.63 23,963,131.18
Fixed assets 330,341,703.53 335,451,284.12
Intangible assets 24,988,633.63 25,314,850.99
Prepayments 498,425.88 858,504.05
Other receivable 32,000.00 2,000.00
Other current assets 75,603,084.09 74,056,644.01
Construction in process 586,201,554.22 570,609,032.67
Deferred Income tax assets 4,807,992.36 5,334,663.88
Other non-current assets 1,985,104.15 1,985,104.15
Account payable 30,134,535.09 101,667,530.90
Advance Payments 11,593.50 9,537.00
Employees’ wage payable 296,037.13 249,318.39
Tax payable 1,840,851.65 280,315.37
Other payable 188,164,916.74 125,478,801.61
Non-current liabilities due 1 year 36,316,392.68 36,316,392.68
Long-term loans 420,000,000.00 425,000,000.00
Deferred Income 84,997,214.64 85,655,410.98
Other non- current liabilities 108,000,000.00 108,000,000.00
Net assets 256,571,899.38 268,007,324.71
Less：Minority equity 89,800,164.78 93,802,563.65
Acquire net assets 166,771,734.60 174,204,761.06
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
304
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
The
differenc
e
between
the The
disposal Determin amount
price and ation of of other
the share Regainin the fair compreh
of the The g gains value of ensive
The fair
subsidiar Proporti book or losses the income
value of
Determi y's net on of value of arising remainin related to
the
ning the assets at remainin the from g equity the
Equity Equity Loss of remainin
Disposal basis for the level g stocks remainin re-measu at the atomic
Name disposal disposal control g equity
of equity the loss of the at the g equity rement date of company
price ratio point at the
of consolid date of at the of the loss of 's equity
date of
control ated loss of date of remainin control investme
loss of
financial control loss of g equity rights nt
control
statemen control at fair and its transferr
t value main ed to
correspo assumpti investme
nding to ons nt profit
the and loss
disposal
of the
investme
nt
Xuyou
Electroni
Received
c
consider
Materials 550,000, April 3,182,20
51.00% Sell ation and 0.00% 0.00 0.00 0.00 0.00
Technolo 000.00 28,2018 6.12
lost
gy
control
(Wuxi)
Co., Ltd.
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
305
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
New important subsidiaries in the current period
（1）On March 8,2018,Shenzhen Xuhui Investment Holding Co., Ltd and Jiangxi University of Science and
Technology set up a subsidiary-Beijing Xujiang Technology Co., Ltd., with the registered capital of 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.
subscribet of RMB 316.1197 million and Holding 90% of the shares;Xiji Traffic Construction Co., Ltd. subscribet
and pays RMB 35.1244 million, holding 10% of the shares,Jiangxi University of Science and Technology
subscribet and pays RMB 10.7345 million , holding 47.22% of the shares.
（2）On March 23,2018, Mingshuo(Beingjing )Electronic Technology Co., Ltd. set up a wholly-owned
subsidiary-Mudanjiang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB30
million and the paid-up capital of RMB 0.00.
（3）On May 17,2018, Tunghsu Constructtion Group Co., Ltd .set up a wholly-owned subsidiary- Luoyang
Construction Engineering Co., Ltd ., With the registered capital of RMB 100 million and the paid-up capital of
RMB 100 million.
（ 4 ） On July 16,2018, Mingshuo(Beijing)Electronic Technology Co., Ltd.set up a wholly-owned
subsidiary-Zaozhuang Mingshuo Optoelectronic Technology Co., Ltd., With the registered capital of RMB 30
million and the paid-up capital of RMB 10,000
（5）On July 26,2018, Jiangsu Yitai Intelligent Equipment Co., Ltd. acquired equity of Tunghsu Ruiqi (Beijing)
Technology Co., Ltd. With the registered capital of RMB 20 million , Jiangsu Tunghsu Yitai Intelligent Equipment
Co., Ltd. holds 51% of the shares, Liu Yang holds 32% of the shares, Xiajinlong holds 17% of the shares.
（6）November 6,2018, Tunghsu Optoelectronic Technology Co., Ltd.set up a wholly-owned subsidiary-Anhui
Xuan Optoelectronic Technology Co., Ltd., With the registered capital of RMB 1 million and the paid-up capital
of RMB10 million.
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
9 Huanghe Road,
Shijiazhuang
Shijiazhuang
High-tech Photoelectric
Colour Bulb Co., Shijiazhuang 81.26% Establish
Industrial display material
Ltd.
Development
Area,
306
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shijiazhuang,
Hebei Province
No.36, Daowei 2
Road, Wanchun
Wuhu Tunghsu
Street , Wuhu
Optoelectronic Photoelectric
Wuhu Economy 100.00% Establish
Technology Co., display material
Technology
Ltd.
Development
Zone
1/F, No.2
Business tower,
Huazhong
Wuhan Tunghsu
Shuguang
Optoelectronic Photoelectric
Wuhan Software park, 100.00% Establish
Technology Co., display material
No.1Guanshan
Ltd.
Road,Donghu
Development
Zone, Wuhan
Room C17,
Building 1,
Beijing Xufeng
No.10, Xinghuo Real estate
Real Estate Co., Beijing 100.00% Establish
Road, Technology Development
Ltd.
City, Fengtai
District, Beijing
No.500, Pengxi
Tunghsu
North Road,
（Kunshan） Photoelectric
Kunshan Economic 88.89% Establish
Display Material display material
Development
Co., Ltd.
Area,Kunshan
66,No 3
Zhengzhou Xufei Jingnan Road,
Optoelectronic Econornic & Photoelectric Control
Zhengzhou 100.00%
Technology Co., Technology display material combination
Ltd. Development
Zone, Zhengzhou
Shijiazhuang No.377,Zhujiang
Xuxin Road, High-tech
Photoelectric Control
Optoelectronic Shijiazhuang Area, 100.00%
display material combination
Technology Shijiazhuang,
Co.,Ltd. Hebei
Beijing Xutan 206, 2/F, Building Industrial
Beijing 70.00% Establish
New Material 2B,No.80, application of
307
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Co., Xingshikou Road, graphene
Ltd. Haidian District,
Beijing
New Material
Jiangsu Jixing
Industry Zone, Photoelectric Non control
New Material Jiangsu 100.00%
Youfang Town, display material combination
Co., Ltd.
Yangzhong City
1201-E18(Area)1
2/F,No.1, 6-3
Beijing Tunghsu
Building,
Huaqing
Beijng Autornobile Investment 70.00% Establish
Investment Co.,
Museum East
Ltd.
Road, Fengtai
District, Beijing
(072) Room
109,Supervision
Building,
Fuzhou Tunghsu Processing trade
Optoelectronic Free zone, Photoelectric
Fuzhou 87.25% 12.75% Establish
Technology Co., Fuzhou, display material
Ltd. Fujian.(No.9,
Xinjiang Road,
Xincuo Town,
Fuqing City)
Wuhu Tunghsu Room 302, A floo
Optoelectronic r,Management Co
Equipment and
Equipment Wuhu mmittee of Jiangb 100.00% Establish
technical services
Technology Co., ei Industry Zone,
Ltd. Anhui Prov
Room 02,
Shanghai
2/F,No.3
Tanyuan Huigu Industrial
Building, No.28,, Non control
New Material Shanghai application of 50.50%
Jiangcchuan East combination
Technology Co., graphene
Road, Minhang
Ltd.
District ,Shanghai
Room 201, A
building, No.1,
Shenzhen Xuhui Qianwan Road,
Investment Co., Shenzhen Qianhai Investment 100.00% Establish
Ltd. Shenzhen-Hongk
ong Cooperation
Zone, Shenzhen
308
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
No.21, 15
Tunghsu Building, No.181,
Non control
Construction Sichuan Erhuan Road, Building Installing 100.00%
combination
Group Co., Ltd. Jinniu District,
Chengdu
A, No .2898,
Shanghai
Huaning Road, New Energy Non control
Sunlong Bus Co., Shanghai 100.00%
Minhang Autonobile combination
Ltd.
District ,Shanghai
No.177, Fubin
Sichuan Xuhong
Nortth Road,
Optoelectronic Photoelectric Control
Mianyang Economic 100.00%
Technology Co., display material combination
Development
Ltd.
Zone, Mianyang
28/F, Shenye
R&D and
Shenzhen Sanbao Shangcheng ,
manufacturing of
Innovation Huanggang Road, Non control
Shenzhen robots and 67.00%
Intelligent Co., Hufu Street, combination
intelligent electronic
Ltd. Futian District,
devices
Shenzhen
Tunghsu
No.19, Xincheng
(Yingkou) Photoelectric Control
Liaoning Street, Yingkou 65.00%
Optoelectronic display material combination
City, Liaoning
Display Co., Ltd.
Strawinskylaan
Tunghsu
909, 1077XX Overseas investment
Optoelectronic Holland 100.00% Establish
Amsterdam, the management
EU.C.V
Netherlands
Anhui Xuan
No.155, Quanjiao
Optoelectronic Photoelectric
Chuzhou Road, Chuzhou , 100.00% Establish
Technology Co., display material
Anhui
Ltd.
9 F. main
building,
recreation and
Jiangsu xuheng Research and
sports center,
new material co. JiangSu development of new 100.00% Establish
no.36, hanjing
LTD material technology
avenue, yunlong
district, xuzhou
city
Note：It is filled in according to the sum of the shareholding proportion of each enterprise in the Group to these
subsidiaries
309
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss attributable
Holding proportion of Dividend declared to Closing balance of
Name to non-controlling
non-controlling interest non-controlling interest non-controlling interest
interest
Fuzhou Xufu
Optoelectronic 40.00% 15,261,279.63 127,875,221.16
Technology Co., Ltd..
Daosui Group
49.00% 12,848,583.00 86,002,179.03
Engineering Co., Ltd.
Shanghai Tanyuan Huigu
New Material 49.50% 10,138,966.40 63,373,844.58
Technology Co., Ltd.
Shenzhen Sanbao
Innovation Intelligent 33.00% -4,201,903.25 39,491,171.47
Co., Ltd.
Tunghsu (Yingkou)
Optoelectronic Display 35.00% 90,685.60 93,893,249.25
Co., Ltd.
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Non Current Non Non Current Non
Name Current Total Total Current Total Total
current Liabilitie current current Liabilitie current
assets assets liabilities assets assets liabilities
assets s liabilities assets s liabilities
Fuzhou
Xufu
Optoelec
875,591, 556,167, 1,431,75 924,168, 188,000, 1,112,16 646,709, 423,862, 1,070,57 601,135, 188,000, 789,135,
tronic
098.65 620.87 8,719.52 474.44 000.00 8,474.44 574.39 686.32 2,260.71 214.70 000.00 214.70
Technolo
gy Co.,
Ltd..
Daosui
Group
2,167,50 202,708, 2,370,21 2,073,26 121,889, 2,195,15 1,703,23 212,928, 1,916,16 1,652,02 129,832, 1,781,85
Engineer
9,492.45 811.48 8,303.93 7,879.04 831.33 7,710.37 5,393.81 263.97 3,657.78 0,253.77 585.29 2,839.06
ing Co.,
Ltd.
Shanghai 54,919,7 89,462,4 144,382, 15,988,1 366,037. 16,354,1 29,877,8 84,534,6 114,412, 6,477,59 389,647. 6,867,24
310
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tanyuan 12.81 17.94 130.75 24.61 32 61.93 54.31 00.13 454.44 8.47 55 6.02
Huigu
New
Material
Technolo
gy Co.,
Ltd.
Shenzhe
n Sanbao
Innovati
54,727,7 71,302,6 126,030, 5,342,55 1,017,59 6,360,14
on
02.15 61.35 363.50 3.57 3.35 6.92
Intellige
nt Co.,
Ltd.
Tunghsu
(Yingko
u)
325,578, 1,104,10 1,429,68 579,076, 582,339, 1,161,41 211,969, 938,694, 1,150,66 264,001, 618,655, 882,657,
Optoelec
183.83 4,232.11 2,415.94 971.21 018.30 5,989.51 695.83 935.81 4,631.64 895.95 410.98 306.93
tronic
Display
Co., Ltd.
In RMB
Amount of current period Amount of previous period
Cash flows Cash flows
Total Total
Name Business from Business from
Net profit Comprehensi Net profit Comprehensi
income operating income operating
ve income ve income
activities activities
Fuzhou Xufu
Optoelectroni 1,346,878,74 38,153,199.0 38,153,199.0 691,769,381. 431,614,395. 41,290,334.2 41,290,334.2 -72,064,807.1
c Technology 9.65 7 7 35 70 5 5 6
Co., Ltd..
Daosui
Group 1,861,703,06 26,141,288.1 26,141,288.1 -193,439,024. 314,838,576. 65,139,015.2
3,830,635.45 3,830,635.45
Engineering 5.12 2 2 46 30 1
Co., Ltd.
Shanghai
Tanyuan
Huigu New 88,995,675.6 20,482,760.4 20,482,760.4 17,171,660.2 23,827,340.6 23,827,340.6
8,168,288.19 6,575,862.80
Material 1 0 0 7 2 2
Technology
Co., Ltd.
311
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Shenzhen
Sanbao
-12,733,040.1 -12,733,040.1 -11,678,623.7
Innovation 7,659,108.35
3 3 0
Intelligent
Co., Ltd.
Tunghsu
(Yingkou)
147,376,006. 61,789,360.0 16,069,429.2 -13,043,965.2 -13,043,965.2
Optoelectroni 259,101.72 259,101.72 -7,604,917.03
85 2 1 2 2
c Display
Co., Ltd.
2. Equity in joint venture arrangement or associated enterprise
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Obtaining
Name of Main Places of Registration Nature of Shareholding Ratio (%)
Method
Subsidiary Operation Place Business
direct indirect
Tunghsu Group Shijiazhuang
Hebei Finance 40.00% Equity method
Finance Co., Ltd. Hebei
（2）Main financial information of Significant joint venture
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/This period Opening balance/Last period
Dongxu group finance co. LTD Dongxu group finance co. LTD
Current assets 3,045,452,313.85 2,682,394,584.48
Non-current assets 28,093,049,900.77 9,907,461,970.78
Total of assets 31,138,502,214.62 12,589,856,555.26
Current liabilities 25,997,850,975.29 7,579,701,042.91
Total of Liabilities 25,997,850,975.29 7,579,701,042.90
Attributable to shareholders of the parent
5,140,651,239.33 5,010,155,512.35
company
Share of net assets calculated by stake 2,056,260,495.73 2,004,062,204.94
Book value of equity investment in
2,056,260,495.73 2,004,062,204.94
associates
Business income 520,973,281.19 123,282,711.28
Net profit 130,495,726.98 10,155,512.35
Total comprehensive income 130,495,726.98 10,155,512.35
312
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/This period Opening balance/Last period
Joint venture: -- --
The total number of shares in each of the
-- --
following shares
Associated enterprise： -- --
Total investment book value 118,087,473.48 126,422,519.76
The total number of shares in each of the
-- --
following shares
--Net 12,167,760.85 601,000.00
Total comprehensive income 12,167,760.85 601,000.00
X. The risk related financial instruments
The 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 of
risk management objectives and policies, and assumes the ultimate responsibility for the risk management
objectives and policies. The Business Management Department of the Company reviews the effectiveness of the
performed programs as well as the rationality of risk management objectives and policies through monthly work
statement submitted by the Functional Department.
The objective of the Company’s engagement in risk management is to obtain a proper balance between the risks
and 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, the
basic 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 supervise
various risks to control the risks within a limited range.
1. Credit Risk
Credit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to perform
its 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 credit
sale 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 quarterly
audits of existing customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoring
the customer's credit risk, according to the customer's credit characteristics of its grouping. Customers who are
rated as "high risk" will be placed on the restricted customer list and the company will be able to credit it in the
next period, subject to additional approval, otherwise it must be required to pay the corresponding payment in
advance.
2. Market Risk
The market risk of financial instruments refers to the risk that the fair value or future cash flow of the financial
instruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchange
313
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from
short-term bank loans. The Company meets various short-term financing needs through establishing good
bank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guarantee
the sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interest
rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses
as 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 financial
liabilities priced by US dollar, Yen, Euro and GBP . For the amount of foreign currency financial assets and
foreign currency financial liabilities converted into RMB, please refer to Note VII. In the notes to the consolidated
financial statements, 71 foreign currency monetary items.
XI. Disclosure of fair value
XII.Related parties and related-party transactions
1. Parent company information of the enterprise
Vote right ratio of
Share ratio of parent
Parent company parent company
Registration place Nature Registered capital company against the
name against the
company(%)
company(%)
No.369, Zhujiang Investment ,
Tunghsu Group Road, High-tech production and R & 36.8 billion 15.97% 21.85%
zone, Shijiazhuang D, etc.
Explanation on parent company of the enterprise
During the reporting period, the paid-in capital of the parent company changed as follows：
Items Opening balance Indrease Decerease Closing balance
Paid-in capital 21,800,000,000.00 15,000,000,000.00 36,800,000,000.00
Ultimate controller of the Company is Li Zhaoting
Other note
Nil
314
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
2.Subsidiary of the Enterprise
See details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.
3.Cooperative enterprise and joint venture
See 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
Zibo Bus Co., Ltd. Associated enterprise
Other note
4.Other related party
Other related party Relationship with the Enterprisse
Tunghsu Technology Group Co., Ltd. The shareholders of the company
Tunghsu Optoelectronic Investment Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Xuming Tube Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baodong Electronic Co.,Ltd. Controlled by the same actual controller
Hebei Baoshi Lighting Co., Ltd. Controlled by the same actual controller
Jinzhou Xulong New Material Technology Co., Ltd. Controlled by the same actual controller
Hebei Decoration Printing Machine Co., Ltd. Controlled by the same actual controller
Chengdu Optoelectronic Technology Co., Ltd. General Manager: Li Zhaotin
Shijiazhuang Xuling Electronic Technology Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic Group Co., Ltd. Controlled by the same actual controller
Tibet Financial Leasing Co., Ltd. A joint venture of the parent company
Tunghsu Group Finance Co., Ltd. Joint venture of the company
Yinchuan Fengxiang Street Underground integrated Management
Controlled by the same actual controller
Co., Ltd.
Yixian Xuhua Park Construction Development Co., Ltd. Controlled by the same actual controller
315
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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
Controlled by the same actual controller
Factory
Shanghai Anxuan Autormation Technology Co., Ltd. Controlled by the same actual controller
Tibet Xuri Asset Management Co., Ltd. Controlled by the same actual controller
Beijing Hexie Guanglu Technology Co., Ltd. Controlled by the same actual controller
Chengdu Taiyisi Technology Co., Ltd. Controlled by the same actual controller
Beijing Zhonghuan Xinrong Trade Co., Ltd. Controlled by the same actual controller
Tunghsu Chuanzhi（Beijing）Cultural Media Co., Ltd. Controlled by the same actual controller
Tunghsu International Investment Group Co., Ltd. Controlled by the same actual controller
Tunghsu KechuangTechnology Industry Development Co., Ltd. Controlled by the same actual controller
Fujian Tunghsu Qiming Real Estate Co., Ltd. Controlled by the same actual controller
Hangzhou Yuanbang Real Estate Development Co., Ltd. Controlled by the same actual controller
Shijiazhuang Tunghsu Medical Equipment Co., Ltd. Controlled by the same actual controller
Tibet Tunghsu Electric Power Engineering Co., Ltd. Controlled by the same actual controller
Zhangzhou Nanrong Real Estate Development Co., Ltd. Controlled by the same actual controller
Zhongshan Shenzhong Real Estate Development Co., Ltd. Controlled by the same actual controller
Zhongshan Shenzhong Real Estate Investment Co., Ltd Controlled by the same actual controller
316
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu Honghai Environmental Protection Technology Co.,Ltd. Controlled by the same actual controller
Jinzhou Xulong New Material Co., Ltd. Controlled by the same actual controller
Tunghsu Lantian New Energy Co., Ltd. Controlled by the same actual controller
Huizhou Dexin Real Estate Co., Ltd. Controlled by the same actual controller
Xudong Machinery Industry Co., Ltd. Controlled by the same actual controller
Tunghsu (HK) Holding Co., Ltd. Controlled by the same actual controller
Zhongshan Donghong Real Estate Development Co., Ltd. Controlled by the same actual controller
Anhui Tunghsu Dangtu Solar Energy Technology Co., Ltd. Controlled by the same actual controller
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Content of related Amount of current Amount of previous Over the trading limit
Related parties Amount of last period
transaction or not?
period period
Chengdu China
Glass substrate
Optoelectronic
semi-finished 20,000,000.00
Technology Co.,
product
Ltd.
Shijiazhuang
Baoshi Zhonghe Doors and
8,963,488.82 289,743.58
Steel Plastic Shape windows
Co., Ltd.
Chengdu China
Optoelectronic Equipment
1,064,512.80
Technology Co., Material
Ltd.
Chengdu Taiyisi
Equipment
Technology Co., 361,965.81
Material
Ltd.
Tunghsu Honghai
Environmental
Combustion
Protection 340,517.24
machine
Technology
Co.,Ltd.
Anhui Tunghsu
Camellia Oi 48,364.00
Dabieshan
317
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Agricultural
Science &
Technology Co.,
Ltd.
Shijiazhuang Bofa
Mechanical A frame 568,390.00
Equipment Co., Ltd
Shijiazhuang
Baoshi Electronic Electromechanical
1,196,581.20
vacuum Glass Co., equipment
Ltd.
Shijiazhuang
Baoshi Electronic Energy 908,190.45 792,773.07
Group Co., Ltd.
Shijiazhuang
Baoshi Electronic Security fee 630,779.00
Group Co., Ltd.
Total 32,883,620.32 2,281,685.65
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Anhui Tunghsu Kangtu Solar
Spares 274,310.34
Energy Technology Co., Ltd.
Beijing Hexie Guanglu
Construction 287,179.49
Technology Co., Ltd.
Beijing Zhonghuan Xinrong
Construction 196,132,742.57
Trade Co., Ltd.
Chengdu Taiyisi Technology
Construction 23,131.62
Co., Ltd.
Chengdu China Optoelectronic
Construction 14,647.38
Technology Co., Ltd.
Chengdu China Optoelectronic
Traction roll project 611,459.82 1,851,454.70
Technology Co., Ltd.
Chengdu China Optoelectronic
Sales of alkyne 3,439.66
Technology Co., Ltd.
Dongguan Yijiu Real Estate
Construction 7,435,707.37
Development Co., Ltd.
Tunghsu North Real Estate Construction 54,568.04
318
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
(Beijing) Co., Ltd.
Tunghsu North Real Estate
Alkyne 71,503.37
(Beijing) Co., Ltd.
Tunghsu
Chuangzhi(Beijing)Cultural Robot 175,862.12
Media Co., Ltd.
Tunghsu International
Spares 8,892.24
Investment Group Co., Ltd.
Tunghsu Group Equity custody income 235,849.06
Tunghsu Group Construction 648,458.60
Tunghsu Group Glass 34,482.76
Tunghsu Group Lamps 8,717.94
Tunghsu Group Spares 253,922.41
Tunghsu Group Equipment 20,085,470.09
Tunghsu Kechuang Technology
Spares 247,586.21
Industry Development Co., Ltd.
Tunghsu Technology
Construction 9,771,017.46
Development Co., Ltd.
Tunghsu Technology Group
Efficient lightbulb 811.97 5,384.62
Co., Ltd.
Tunghsu Lantian New
Graphene 39,490,909.09 34,102.56
EnergyCo., Ltd.
Fujian Tunghsu Real Estate Co.,
Construction 9,178,396.21
Ltd.
Fujian Tunghsu Qiming Real
Sales of alkyne 33,456.70
Estate Co., Ltd.
Guangdong Huakai Real Estate
Construction 46,479,358.32 50,231,982.84
Development Co., Ltd.
Hangzhou Yuanbang Real
Spares 3,008.62
Estate Development Co., Ltd.
Hunan Baoan Hongji Real
Construction 28,799,566.55
Estate Development Co., Ltd.
Huiyin Gold Control Asset Construction 387,177.52
Management Co., Ltd.
Huidong Baoan Hongji Real
Construction 80,564,662.74
Estate Development Co., Ltd.
Huidong Baoan Jinan Real Construction 313,409,269.67
319
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Estate Development Co., Ltd.
Jinzhou Xulong New Material
Construction 2,334,172.94
Co., Ltd.
Kunming Tunghsu Qiming
Investment Development Co., Construction 472,417,467.35 57,628,263.37
Ltd.
Kunming Tunghsu Qiming
Investment Development Co., 15,474.14
Ltd.
Shanghai Anxuan Automation
Part 184,745.94
Technology Co., Ltd.
Shenzhen Hongji Property
Construction 263,333.34
Management Co., Ltd.
Shengzhou Zhexu Real Estate
Construction 132,136,363.64
Co., Ltd.
Shengzhou Zhexu Real Estate
Sales of alkyne 20,520.34
Co., Ltd.
Shijiazhuang Baoshi
Large-diameter plastic tube Co., Construction 594,000.00
ltd.
Shijiazhuang Bofa Mechanical t
A frame 7,285,897.44
Co., Ltd.
Ningxia Xutang New Material
Sales material 11,964.11
Technology Co., Ltd.
Shijiazhuang Tunghsu Medical
Construction 3,636,363.60
Equipment Co., Ltd.
Tibet Tunghsu Electric Power
Speres 3,275.86
Engineering Co., Ltd.
Tibet Financial Leasing Co.,
Graphene 5,115.39
Ltd.
Tibet Xuri Capital Management
Robot 8,448.28
Co., Ltd.
Yixian Xuhua Park
Construction Development Co., Construction 58,744,654.57 41,574,488.29
Ltd.
Yinchuan Fengxiang Street
Comprehensive Construction Construction 52,741,795.14 336,755,509.90
Management Co., Ltd.
Zhangzhou Nancai Real Estate Construction 3,517.24
320
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Development Co., Ltd.
Zhangzhou Nanrong Real
Alkene 6,879.31
Estate Development Co., Ltd.
Zhangzhou Shenghua Real
Construction 159,100,004.55
Estate Development Co., Ltd.
Zhangzhou Shenghua Real
Spares 8,732.98
Estate Development Co., Ltd.
Zhongshan Shenzhong
Zhangzhou Shenghua Real Construction 388,042,917.70
Estate Development Co., Ltd.
Zhongshan Shenzhong Real
Construction 51,747,572.82
Estate Investment Co.,Ltd.
Chongqing Tunghsu Qide Real
Construction 72,347,034.55
Estate Co., Ltd.
Huizhou Dexin Real Estate Co.,
Construction 84,628,947.48
Ltd.
Total 2,211,283,426.74 517,812,524.19
Note
Nil
（2）Related trusteeship or contracting
Related custody/contracting situation statement
Nil
Related management/out of the package situation
Nil
(3) Information of related lease
Related lease situation description
Nil
（4）Status of related party guarantee
As a guarantor for the company
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
As a secured party for the company
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
321
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu Group Co., Ltd.
and its 40 million shares
of Tunghsu 425,000,000.00 November 7,2016 June 20,2024 No
Optoelectronics
Technology Co., Ltd.
Tunghsu Group , Li
17,792,407.79 June 16,2016 June 16,2019 No
Zhaoting
Tunghsu Group、Li
300,000,000.00 April 1,2014 April 11,2022 No
Zhaoting、Li Qing
Tunghsu Group、 Li
150,000,000.00 April 22,2015 April 11,2022 No
Zhaoting、Li Qing
Tunghsu Optoelectronic
Technology Co., Ltd., 100,000,000.00 March 27,2018 March 27,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., 100,000,000.00 March 28,2018 March 28,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., 110,000,000.00 December 28,2018 December 28,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., 70,000,000.00 March 27,2018 March 15,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., 30,000,000.00 April 2,2018 March 15,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., Li 60,000,000.00 March 1,2018 March 1,2019 No
Zhaoting
Tunghsu Optoelectronic
Technology Co., Ltd., 50,000,000.00 March 30,2018 March 29,2019 No
Tunghsu Group
Tunghsu Optoelectronic
Technology Co., Ltd., Li 92,350,746.73 September 30,2018 September 29,2021 No
Zhaoting
Tunghsu Optoelectronic
Investment Co., Ltd.,
Tunghsu Group, Li 1,000,000,000.00 December 7,2018 December 6,2019 No
Zhaoting, Tunghsu
Optoelectronic
322
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Co., Ltd.
Tunghsu Group 50,000,000.00 July 26,2018 July 26,2019 No
Tunghsu Group 95,000,000.00 March 19,2018 March 12,2019 No
Tunghsu Group 90,000,000.00 April 12,2018 April 2,2019 No
Tunghsu Group 15,000,000.00 June 12,2018 May 7,2019 No
Tunghsu Group , Li
115,000,000.00 October 31,2017 October 31,2019 No
Zhaoting, Li Qing
Tunghsu Group , Li
98,000,000.00 July 7,2017 July 6,2019 No
Zhaoting
Tunghsu Group,
Tunghsu Optoelectronic 20,000,000.00 September 26,2018 September 26,2019 No
Technology Co., Ltd.
Tunghsu Group, Li
Zhaoting, Tunghsu
25,000,000.00 December 3,2018 December 2,2019 No
Optoelectronic
Technology Co., Ltd.
Tunghsu Group, Li
Zhaoting, Tunghsu
400,000,000.00 November 30,2016 November 30,2019 No
Optoelectronic
Technology Co., Ltd.
Tunghsu Group, Li
200,000,000.00 May 27,2016 May 26,2019 No
Zhaoting
Tunghsu Group, Li
100,000,000.00 March 3,2017 March 2,2019 No
Zhaoting
Tunghsu Group, Li
136,301,749.37 November 7,2017 November 7,2020 No
Zhaoting
Tunghsu Group, Li
180,000,000.00 November 10,2017 November 15,2022 No
Zhaoting
Tunghsu Group, Li
Zhaoting, Tunghsu
40,000,000.00 February 9,2018 February 8,2019 No
Optoelectronic
Technology Co., Ltd.
Tunghsu Group, Li
Zhaoting, Tunghsu
40,000,000.00 February 12,2018 February 11,2019 No
Optoelectronic
Technology Co., Ltd.
Tunghsu Group, Li
206,466,015.69 November 6,2017 November 6,2020 No
Zhaoting
Tunghsu Group, Li 200,000,000.00 June 26,2018 June 24,2019 No
323
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Zhaoting
Tunghsu Group, Li
80,000,000.00 September 18,2018 September 18,2019 No
Zhaoting
Tunghsu Group, Li
40,000,000.00 September 28,2018 September 27,2019 No
Zhaoting
Tunghsu Group, Li
80,000,000.00 September 30,2018 September 27,2019 No
Zhaoting
Tunghsu Group 200,000,000.00 June 8,2018 June 8,2019 No
Tunghsu Group 45,000,000.00 May 28,2018 May 28,2019 No
Tunghsu Group 135,000,000.00 June 27,2018 June 27,2019 No
Tunghsu Group 46,225,932.79 October 12,2018 October 12,2021 No
Tunghsu Group 30,000,000.00 July 26,2018 March 20,2020 No
Tunghsu Group 50,000,000.00 November 1,2018 June 20,2020 No
Tunghsu Group 54,306,914.36 May 25,2016 May 20,2019 No
Tunghsu Group, Li
200,000,000.00 November 26,2018 November 26,2019 No
Zhaoting
Tunghsu Group, Li
98,000,000.00 November 6,2018 November 6,2019 No
Zhaoting
Tunghsu Group, Li
200,000,000.00 November 26,2018 November 25,2019 No
Zhaoting
Tunghsu Group, Li
100,000,000.00 December 11,2018 December 11,2019 否
Zhaoting
Tunghsu Group 85,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 170,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 170,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 85,000,000.00 Septemer 18,2017 September 15,2022 No
Tunghsu Group 170,000,000.00 October 31,2017 September 15,2022 No
Tunghsu Group 170,000,000.00 October 31,2017 September 15,2022 No
Tunghsu Group 100,000,000.00 July 11,2018 July 10,2019 No
Tunghsu Group 200,000,000.00 September 27,2018 September 26,2019 No
Tunghsu Group 20,000,000.00 November 5,2018 November 5,2019 No
Tunghsu Group 100,000,000.00 December 11,2018 December 10,2019 No
Tunghsu Group 345,000,000.00 January 28,2013 January 27,2021 No
Tunghsu Group 27,742,800.00 January 28,2013 January 27,2021 No
Tunghsu Group, Li
133,782,675.98 May 31,2016 May 30,2021 No
Zhaoting
324
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu Group 50,000,000.00 February 7,2018 December 6,2019 No
Tunghsu Group 50,000,000.00 December 4,2018 December 4,2019 No
Tunghsu Group , Li
200,000,000.00 May 15,2017 May 15,2019 No
Zhaoting , Li Qing
Tunghsu Group , Li
300,000,000.00 June 2,2017 June 2,2019 No
Zhaoting , Li Qing
Tunghsu Group , Li
299,550,000.00 June 7,2016 June 7,2019 No
Zhaoting , Li Qing
Tunghsu Group , Li
450,000,000.00 September 30,2016 September 29,2021 No
Zhaoting
Tunghsu Group 200,000,000.00 March 15,2018 March 15,2019 No
Tunghsu Group 450,000,000.00 June 13,2018 June 13,2019 No
Tunghsu Group 250,000,000.00 July 28,2018 July 28,2019 No
Tunghsu Group 10,000,000.00 September 26,2018 September 25,2019 No
Li Zhaoting 480,000,000.00 December 21,2018 December 21,2019 No
Li Zhaoting 1,800,000,000.00 October 16,2018 October 15,2019 No
Tunghsu Group 100,000,000.00 April 5,2017 March 14,2018 Yes
Tunghsu Group 100,000,000.00 June 19,2017 March 14,2018 Yes
Tunghsu Group 45,000,000.00 April 1, 2017 March 23,2018 Yes
Tunghsu Group 45,000,000.00 April 10,2017 March 31,2018 Yes
Tunghsu Group ,Li
150,000,000.00 May 26,2016 April 26,2018 Yes
Zhaoting, Li Qing
Tunghsu Group ,Li
159,000,049.50 June 8,2016 April 8,2018 Yes
Zhaoting, Li Qing
Tunghsu Group ,Li
40,999,950.50 June 21, 2016 April 21,2018 Yes
Zhaoting, Li Qing
Tunghsu Group , Li
38,000,000.00 April 20,2017 April 19,2018 Yes
Zhaoting
Tunghsu Group , Li
20,000,000.00 June 30,2017 June 29,2018 Yes
Zhaoting
Tunghsu Group , Li
22,000,000.00 July 7,2017 July 6,2018 Yes
Zhaoting
Tunghsu Group 10,000,000.00 June 20,2017 April 25,2018 Yes
Tunghsu Group 30,000,000.00 June 20,2017 Aprlil 20,2018 Yes
Tunghsu Group, Li
387,700,000.00 April 29,2016 April 28,2018 Yes
Zhaoting, Li Qing
Tunghsu Group 100,000,000.00 May 17,2016 May 17,2018 Yes
325
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu Group 100,000,000.00 May 20,2016 May 20,2018 Yes
Tunghsu Group, Li
150,000,000.00 May 19,2016 May 18,2018 Yes
Zhaoting, Li Qing
Tunghsu Group 81,500,000.00 May 26,2016 May 26,2018 Yes
Tunghsu Group 40,000,000.00 May 9,2017 May 8,2018 Yes
Tunghsu Group 160,000,000.00 May 11,2017 May 10,2018 Yes
Tunghsu Optoelectronic
Technology Co., Ltd. Li 75,000,000.00 May 31,2017 May 31,2018 Yes
Zhaoting
Tunghsu Optoelectronic
Technology Co., Ltd. Li 30,000,000.00 June 9,2017 June 9,2018 Yes
Zhaoting
Tunghsu Group , Li
400,000,000.00 August 15,2017 June 29,2018 Yes
Zhaoting
Tunghsu Group 100,000,000.00 July 7,2017 July 6,2018 Yes
Tunghsu Group 20,000,000.00 July 26,2017 July 6,2018 Yes
Tunghsu Group 100,000,000.00 July 31,2017 July 30,2018 Yes
Tunghsu Group , Li
30,000,000.00 May 22,2018 May 22,2019 Yes
Zhaoting
Tunghsu Group , Li
400,000,000.00 August 15,2017 August 15,2018 Yes
Zhaoting
Tunghsu Group , Li
50,000,000.00 August 3,2017 August 2,2018 Yes
Zhaoting
Tunghsu Group 199,000,000.00 February 24,2017 August 23,2018 Yes
Tunghsu Group 50,000,000.00 August 24,2017 August 24,2018 Yes
Tunghsu Group , Li
80,000,000.00 October 20,2015 October 15,2018 Yes
Zhaoting
Tunghsu Group 204,000,000.00 March 29,2017 September 28,2018 Yes
Tunghsu Group , Li
42,000,000.00 April 10,2018 October 10,2018 Yes
Zhaoting
Tunghsu Group , Li
38,000,000.00 April 11,2018 October 11,2018 Yes
Zhaoting
Tunghsu Group 97,000,000.00 April 27,2017 October 26,2018 Yes
Li Zhaoting 400,000,000.00 October 19,2017 October 19,2018 Yes
Tunghsu Group, Li
200,000,000.00 October 26,2017 October 26,2018 Yes
Zhaoting
Tunghsu Group 25,000,000.00 October 19,2017 October 19,2018 Yes
326
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu Group 50,000,000.00 October 122017 October 10,2018 Yes
Tunghsu Group 100,000,000.00 October 26,2017 October 26,2018 Yes
Tunghsu Group 25,000,000.00 October 20,2017 October 19,2018 Yes
Tunghsu Group 100,000,000.00 September 26,2013 April 11,2022 Yes
Tunghsu Group, Li
200,000,000.00 November 30,2017 November 30,2018 Yes
Zhaoting
Tunghsu Group 50,000,000.00 November 1,2017 November 1,2018 Yes
Tunghsu Group 20,000,000.00 November 16,2017 November 15,2018 Yes
Tunghsu Group 50,000,000.00 December 1,2017 November 30,2018 Yes
Tunghsu Group, Li
100,000,000.00 November 13,2017 November 12,2018 Yes
Zhaoting
Tunghsu Group 220,000,000.00 March 17,2016 March 17,2028 Yes
Tunghsu Group 280,000,000.00 June 16,2016 June 16,2028 Yes
Tunghsu Group 50,000,000.00 December 28,2017 December 27,2018 Yes
Tunghsu Group 200,000,000.00 December 22,2017 December 22,2018 Yes
Li Zhaoting 560,000,000.00 December 15,2017 December 15,2018 Yes
Tunghsu Group 100,000,000.00 January 31,2018 December 31,2018 Yes
Tunghsu Group, Li
200,000,000.00 December 27,2016 December 27,2018 Yes
Zhaoting, Li Qing
Tunghsu Group, Li
200,000,000.00 December 29,2016 December 29,2018 Yes
Zhaoting, Li Qing
Tunghsu Group, Li
100,000,000.00 December 23,2016 December 23,2018 Yes
Zhaoting, Li Qing
Tunghsu Group 200,000,000.00 December 15,2016 December 15,2018 Yes
Tunghsu Group 100,000,000.00 December 29,2017 December 27,2018 Yes
Tunghsu Group, Li
166,666,666.66 January 6,2017 January 6,2019 Yes
Zhaoting
Tunghsu Optoelectronic
Technology Co., Ltd., Li 142,500,000.00 June 26,2018 January 26,2019 Yes
Zhaoting
Tunghsu Optoelectronic
Technology Co., Ltd., Li 150,000,000.00 June 26,2018 January 26,2019 Yes
Zhaoting
Dong xu group co. LTD 445,000,000.00 January 28,2013 January 27,2021 None
Dong xu group co. LTD 34,316,000.00 January 28,2013 January 27,2021 None
Hangzhou yuanbang real 480,000,000.00 None
December 21,2018 December,21,2019
estate development co.
327
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
LTD
Tunghsu Group, Li 20,000,000.00 December,18,2019 None
December 29,2018
Zhaoting
Dong xu group co. LTD 50,000,000.00 November 29,2018 Novemberr28,2019 None
Dong xu group co. LTD, 20,833,333.28 January,06,2019 None
January 06,2017
Li Zhaoting
Note
Nil
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content
Amount of current period Amount of previous period
51% equity of Xuyou
Tunghsu Technology Group
Electronic Materials 550,000,000.00
Co., Ltd.
Technology (Wuxi) Co., Ltd.
Total 550,000,000.00
(7) Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
817.48 837.29
personnel
（8）Other related transactions
（5）Fund settlement business
As approved by the resolution of the shareholders' meeting of the Company, the Company and Tunghsu Group
Finance Co., Ltd. (hereinafter referred to as "Tunghsu Finance Company") carried out partial capital settlement
business. As of December 31, 2018, the capital settlement between the Company and its subsidiaries and Tunghsu
Finance Company was as follows:
Name Opening balance Increase in the current Interest receivable or
period payable (-)
I. Deposits stored in Tunghsu Finance Company 5,838,232,555.01 73,647,041,005.91 71,365,240,006.18
II. Acceptance bill stored in Tunghsu Finance Company
III. Entrusting Tunghsu Finance Company to issue
acceptance bill
IV. Carry out bill discounting to Tunghsu Finance Company
V. Loan from Tunghsu Finance Company
328
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
VI. Handling non-recourse factoring of accounts receivable
to Tunghsu Finance Company
Continue
Name Closing balance Interest receivable or payable (-)
I. Deposits stored in Tunghsu Finance Company 8,120,033,554.74 135,922,815.23
II. Acceptance bill stored in Tunghsu Finance Company
III. Entrusting Tunghsu Finance Company to issue acceptance bill
IV. Carry out bill discounting to Tunghsu Finance Company
V. Loan from Tunghsu Finance Company
VI. Handling non-recourse factoring of accounts receivable to
Tunghsu Finance Company
6. Payables and receivables of the related party
（1）Receivables
In RMB
Amount at year end Amount at year begiing
Name Related party
Balance of Book Bad debt provision Balance of Book Bad debt provision
Chengdu China
Account receivable Optoelectronic 874,842.20 629,722.6
Technology Co., Ltd.
Hebei Baoshi Energy
Account receivable saving lighting 43,600.00
technology Co., Ltd.
Guangdong Huakai
Real Estate
Account receivable 30,096,793.88 19,184,644.15
Development Co.,
Ltd.
Jinzhou Xulong
Account receivable Solar Energy 2,449,198.07 2,449,198.07
Technology Co., Ltd.
Kunming Tunghsu
Qiming Investment
Account receivable 247,253,556.82 29,110,261.39
Development Co.,
Ltd.
Yinchuan Fengxiang
Street
Account receivable Comprehensive 107,844,476.63 173,363,844.40
Construction
Management Co.,
329
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.
Anhui Tunghsu
Account receivable Kangtu Solar Energy 222,740.00
Technology Co., Ltd.
Baoan Hongji Real
Account receivable Estate Group Co., 35,392,973.72
Ltd.
Beijing Hexie
Account receivable Guanglu Technology 138,000.00
Co., Ltd.
Beijing Zhonghuan
Account receivable Xinrong Trade Co., 215,747,350.00
Ltd.
Dongguan Yijiu Real
Account receivable Estate Development 996,344.71
Co., Ltd.
Tunghsu Chuangzhi
Account receivable （Beijing）Cultural 204,000.00
Media Co., Ltd.
Tunghsu Technology
Account receivable Development Co., 4,133,892.00
Ltd.
Fujian Tunghsu
Account receivable Qiming Real Estate 3,389,184.77
Co., Ltd.
Hunan Baoan Hongji
Real Estate
Account receivable 19,459,762.15
Development Co.,
Ltd.
Huidong Baoan
Hongji Real Estate
Account receivable 32,810,756.93
Development Co.,
Ltd.
Huidong Ban Jinan
Real Estate
Account receivable 256,023,829.26
Development Co.,
Ltd.
Huizhou Dexin Real
Account receivable 67,266,007.88
Estate Co., Ltd.
Account receivable Shanghai Anxuan 109,032.00
330
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Automation
Technology Co., Ltd.
Shenzhen Hongji
Property
Account receivable 15,405.00
Management Co.,
Ltd.
Shengzhou Zhexu
Account receivable 85,658,187.65
Real Estate Co., Ltd.
Tibet Xuri Capital
Account receivable Management Co., 9,800.00
Ltd.
Zhangzhou
Shenghua Real
Account receivable 128,070,429.45
Estate Development
Co., Ltd.
Zhongshan
Shenzhong Real
Account receivable 193,677,332.40
Estate Development
Co., Ltd.
Zhongshan
Shenzhong Real
Account receivable 42,197,817.95
Estate Development
Co., Ltd.
Chongqing Tunghsu
Account receivable Qide Real Estate 57,086,524.08
Co., Ltd.
Hebei Baoshi Energy
Prepayments saving lighting 60,000.00 60,000.00
technology Co., Ltd.
Hebei Decoration
Prepayments Printing Machinery 835,680.87 835,680.87
Co., Ltd.
Tunghsu Technology
Prepayments 4,000.00
Group Co., Ltd.
Zhongshan
Shenzhong Real
Prepayments 1,347,924.53
Estate Development
Co., Ltd.
Huidong Baoan
Other receivable Hongji Real Estate 4,020,000.00
Development Co.,
331
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.
Huizhou Dexin Real
Other receivable 500,000.00
Estate Co., Ltd.
Chongqing Tunghsu
Other receivable Qide Real Estate 1,050,000.00
Co., Ltd.
Shijiazhuang Baoshi
Other non-current
Electronic vacuum 420,000.00
assets
Glass Co., Ltd.
Other non-current
Tunghsu Group 73,876,642.13 132,132,857.44
assets
（2）Payables
In RMB
Name Related party Book balance at year end Book balance at year beginning
Shijiazhuang Bofa Machinery
Account payable 55,444.45
Co., Ltd.
Shijiazhuang Baoshi Xuming
Account payable 14,948.00 14,948.00
Pipe Co., Ltd.
Shijiazhuang Baoshi Electronic
Account payable 6,344.16 6,344.16
vacuum Glass Co., Ltd.
Shijiazhuang Baoshi
Account payable Large-diameter plastic tube Co., 533,942.80 533,942.80
ltd
Shijiazhuang Baoshi Zhonghe
Account payable 3,483,519.11 30,296.40
Steel Plastic Shape Co., Ltd.
Shijiazhuang Xuling Electronic
Account payable 1,320,164.09 1,320,164.09
Technology Co., Ltd.
Tunghsu Honghai
Account payable Environmental Protection 276,500.00
Technology Co., Ltd.
Advance revenue Tunghsu Group 47,075,980.50 46,176,000.00
Chengdu China Optoelectronic
Advance revenue
Technology Co., Ltd.
Yixian Xuhua Garden
Advance revenue Construction Development Co., 110,259,360.60 3,852,318.00
Ltd.
Advance revenue Hangzhou Yuanbang Real 100,000,000.00
332
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Estate Development Co., Ltd.
Zhongshan Donghong Real
Advance revenue 3,318,850.80
Estate Development Co., Ltd.
Jinzhou Xuguang New Material
Other payable
Technology Co., Ltd.
Other payable Baoshi Group 722,000.00 722,000.00
Other payable Tunghsu Group 275,490,964.33 470,099,941.55
Shijiazhuang Baoshi Electronic
Other payable 4,768,691.30 4,700,985.30
vacuum Glass Co., Ltd.
Shijiazhuang Baoshi Xuming
Other payable 97,031.00 97,031.00
Pipe Co., Ltd.
Tunghsu Optoelectronic
Other payable
Investment Co., Ltd.
Chengdu China Optoeelctronic
Other payable 6,850.92
Technology Co., Ltd.
Huidong Baoan Jinan Real
Other payable 4,008,400.00
Estate Development Co., Ltd.
Tibet Xuri Capital Management
Other payable 8,000,000.00
Co., Ltd.
Tunghsu (HK) Holding Co.,
Other payable 782,250.00
Ltd.
Zhongshan Shenzhong Real
Other payable 339,000,000.00
Estate Development Co., Ltd.
7. Related party commitment
Nil
XIII. Stock payment
1. The Stock payment overall situation
333
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
Nil
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
Important commitments not required to be disclosed by the company as of December 31, 2018
2. Contingency
(1).The plaintiff Chongqing Mingyi Labor Service Co., Ltd. requested the amount of 5 million yuan 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 15:30 on July 26th, 2017, and
the case was transferred to the Intermediate People's Court of Chengdu for railway transportation. The case was
handed over to the Chengdu Intermediate People’s Court for Railway Transportation. On December 18, 2017, the
court accepted the case for the first instance and informed the Plaintiff and the Defendant to supplement data, First
instance judgment result: Daosui paid RMB 1.5 million and bore the acceptance fee of RMB 14,040. Daosui
Company appealed, with a court held at 9:30 am on March 4, 2019 and waiting for the result of the second
instance.
(2). Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co., Ltd., Defendant:
Daosui Group Engineering Co., Ltd., Road&bridge International Co., Ltd., Third Party: Earth and Rock
Engineering Branch of Sichuan Nanchong Hongcheng Construction Engineering Co., Ltd., Litigation Request:
Litigation request: Daosui Group Engineering Co., Ltd. pays 4,260,061 yuan for on-site material equipment and
interest on January 23, 2011; Road&bridge International Co., Ltd. and the third party bear joint responsibility for
payment within the scope of 2,75,721.63 yuan of on-site materials and equipment received. The No. 2371 case of
(2017) CHUAN 1302 MINCHU of People's Court of Shunqing District of Nanchong City was held at 15:30 on
July 27th, 2017, and the case was transferred to the Intermediate People’s Court of Chengdu for railway
transportation. The case was handed over to the Chengdu Intermediate People’s Court for Railway Transportation.
On December 18, 2017, the court accepted the case for the first instance and informed the Plaintiff and the
Defendant to supplement data, First instance judgment result: Daosui paid RMB 2,300,720.63 and interest and
334
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
bore the acceptance fee of RMB 21,591.00, and Nanchong Hongcheng Construction Company assumed joint and
several liabilities. Daosui Company has appealed and is now waiting for the judgment result.
(3) Private lending disputes. Plaintiff: Ye Pingyuan, defendant: He Yuanyuan, Daosui Group, plaintiff'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 2.7 million yuan and interest of 972,000 yuan during the period, overdue interest and penalty interest, etc.;
payment of legal fees, travel expenses, property preservation guarantee fees, etc., totaling 50,000 yuan. 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 February 5,2018. (2017) Yu 0108 Zi No. 5009
first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of RMB 3.3 million
and interest, Daosui Company appealed, second instance judgment result: abrogated the first instance judgment,
remanded it to the court of first instance for retrial, and now it is in the remanding and retrial stage. (2017) Yu
0108 Zi No. 5010 first instance judgment result: He Yuanyuan and Daosui Group repaid the principal amount of
RMB 2.7 million and interest, Daosui Company appealed, second instance judgment result: abrogated the first
instance judgment, remanded it to the court of first instance for retrial, and now it is in the remanding and retrial
stage.
(4) Non-governmental loan dispute, plaintiff: Ye Pingyuan, defendant: He Yuanyuan and Daosui Group.
Plaintiff requests: immediate repayment of loan principal of 2,700,000.00 yuan and interest of 972,000.00 yuan,
overdue interest and default interest, etc.; Payment of 50,000.00 yuan in legal fees, travel expenses and property
preservation guarantee fees for realizing creditor's rights. The Nan'an District People's Court of Chongqing
accepted the case and issued the No.5010 notice of respondence to action on February 5, 2018 to Daosui Group.
(5) Construction project contract disputes，Plaintiff: Nanchong Jian'an Labor Service Co., Ltd., Defendant:
Road and Bridge International Co., Ltd., Third party: Daosui Group. Plaintiff's request: Payment of RMB
3,850,838.84. Pleadings, summons, notice of respondence to action, notice of evidence sent by Shunqing District
Court in Nanchong City were received on July 30, 2018. The Company filed application for jurisdiction objection
on July 31, 2018. and The written verdict sent by Shunqing District Court in Nanchong City was received on
September 26, 2018: The case was transferred to Chengdu Railway Transportation Court for trial. Pleadings,
summons, notice of respondence to action, notice of evidence and notice of members of the collegiate bench sent
by Chengdu Railway Court were received on November 29, 2018. It was scheduled to be heard at 2:30 p.m. on
December 19, 2018, and is now waiting for the judgment of first instance.
(6). In March 2016, Daosui Group Engineering Co., Ltd. filed a lawsuit to the owner of Inner Mongolia
Zhunxing Heavy-duty Highway Co., Ltd. for payable quality guarantee deposit, totaling amount of RMB
103,000,000 Yuan, and the owners raised objections to jurisdiction. The first instance ruling was arbitrated by
Beijing Arbitration Commission, and Daosui Group Engineering Co., Ltd. appealed. Through judgment of the
Supreme Court, it decided to be arbitrated by Beijing Arbitration Commission on September 27, 2016. The case is
in a state of suspension, waiting for the Company to apply for arbitration from Beijing Arbitration Commission. In
the same year, Daosui Group Engineering Co., Ltd. counterclaimed AZ-1 and AZ-2 parts except for the quality
guarantee deposit. After the counterclaim, the owner filed an objection to jurisdiction and the first instance judged
to be arbitrated by Beijing Arbitration Commission. The Company appealed, and the second instance of the
Supreme Court judged to be prosecuted by Inner Mongolia High Court in July, 2017. On September 10, 2017, the
complaint was resubmitted. Inner Mongolia High Court accepted the case and has not held a court until the
335
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
reporting date.
(7). Shanghai Sunlong Bus Co., Ltd. provides foreign guarantees to banks or financial leasing companies for
car buyers who purchase cars through financial leasing. As of December 31, 2018, the amount of foreign
guarantees is RMB425,103,861.08
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
3.Other
Nil
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
The profit or dividend to be distributed 401,117,508.26
Profits or dividends declared after deliberation and approval 401,117,508.26
3. Sales return
4.Notes of ohter significant events
1. In April 2019, Tunghsu Construction Group Co., Ltd. signed a equity transfer framework agreement. to transfer
70% of the equity of Zhongcheng National construction co., Ltd. held at an estimated price of RMB 140 million.
XVI. Other signifiant enents
XVII. Notes s of main items in financial reports of parent company
1.Notes receivable & account receivable
In RMB
Items Year-end balance Year-beginning balance
Notes receivable 50,000.00 200,000.00
Account receivable 176,563,926.23 23,837,262.59
Total 176,613,926.23 24,037,262.59
336
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
（1）Notes receivable
（1）Classification Notes receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 50,000.00 200,000.00
Total 50,000.00 200,000.00
（2）Notes receivable pledged by the Company at the period -end
In RMB
Items Amount
（3）Notes receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance
sheet date
In RMB
Amount derecognized as at December Amount underecognized as at January
Items
31,2018 1,2018
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
（2）Account receivable
（1）Account receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Account receivables
provided bad debt 176,852, 288,862. 176,563,9 24,456, 619,428.9 23,837,262.
100.00% 0.16% 100.00% 2.53%
provision in credit 788.81 58 26.23 691.50 1 59
risk groups
176,852, 288,862. 176,563,9 24,456, 619,428.9 23,837,262.
Total 100.00% 0.16% 100.00% 2.53%
788.81 58 26.23 691.50 1 59
337
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
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
Amount in year-end
Aging
Account reivable Provision for bad debts Proportion%
Within item 1 year
Within credit period 82,500,000.00
Within 1 year after credit period
Wubtotal within 1 year 82,500,000.00
4-5 years 34,668.39 24,267.87 70.00%
Over 5 yers 264,594.71 264,594.71 100.00%
Total 82,799,263.10 288,862.58
Note：
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision：
□ Applicable √ Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
B In the groups, accounts receivable adopting other methods to accrue bad debt provision
Group Name Year-end balance Provision for bad debts
Other group 94,053,525.71
Continued：
Group Name Year-beginning balance Provision for bad debts
Other group 23,220,877.08
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the
reversed or collected part during the reporting period was of RMB330,566.33.
Where the current bad debts back or recover significant amounts:Nil
（3）The current accounts receivable write-offs situation
The important write-off of accounts receivable：
Note：
Nil
338
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
（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 is
RMB169,546,593.20, which accounts for 95.87%% of the total receivables. The total amount of closing balance
for corresponding accrued bad-debt provision is RMB0.00.
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Nil
Other note：
Nil
4.Other accounts receivable
In RMB
Items Balance in year-end Balance in year- beginning
Interest receivable 7,521,489.86 41,868,921.15
Dividend receivable 500,000,000.00 665,000,000.00
Other 5,774,153,829.41 4,790,712,672.70
Total 6,281,675,319.27 5,497,581,593.85
（1）Interest receivable
1) Classification of interest receivable
In RMB
Items Balance in year-end Balance in year- beginning
Fixed deposit 7,521,489.86 41,868,921.15
Total 7,521,489.86 41,868,921.15
2) Important overdue interest
Nil
Other note：
Nil
（2）Dividend receivable
1) Dividend receivable
In RMB
339
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Items Balance in year-end Balance in year- beginning
Wuhu Tunghsu Equipment Technology
500,000,000.00 665,000,000.00
Co., Ltd.
Total 500,000,000.00 665,000,000.00
（2）Significant dividend receivable aged over 1 year
Other note：
Nil
(3)Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Balance in year-end Balance in year- beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion( Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Other account
4,792,3
receivables provided 5,775,78 1,635,14 5,774,153 1,590,109 4,790,712,6
100.00% 0.03% 02,782. 100.00% 0.03%
bad debt provision in 8,977.98 8.57 ,829.41 .46 72.70
16
credit risk groups
4,792,3
5,775,78 1,635,14 5,774,153 1,590,109 4,790,712,6
Total 100.00% 0.03% 02,782. 100.00% 0.03%
8,977.98 8.57 ,829.41 .46 72.70
16
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
□Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√Applicable□ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Provision for bad debts Proportion(%)
WithinItem 1 year
Within credit period
Within 1 year after credit period 469,830.82 23,491.54 5.00%
Subtotal within 1 year 469,830.82 23,491.54 5.00%
Over 3 years 1,686,460.99 1,611,657.03
4-5 years 249,346.55 174,542.59 70.00%
340
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Over 5 years 1,437,114.44 1,437,114.44 100.00%
Total 2,156,291.81 1,635,148.57
Note：
Nil
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB45,039.11, the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debt provision：Nil
(3)The actual write-off other accounts receivable
Note：
Nil
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Deposit 29,065,478.16 31,693,666.66
Personal Official borrowing 163,295.56 159,109.89
Related current account 5,743,653,445.32 4,728,633,349.92
Current account 28,846,088.84
Persona Returnable Insurance 603,814.14 446,555.34
Other 2,302,944.80 2,524,011.51
Total 5,775,788,977.98 4,792,302,782.16
(5) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party
In RMB
Proportion of the
total year end
Closing balance of
Name Nature Closing balance Aging balance of the
bad debt provision
accounts
receivable(%)
Wuhu Tunghsu Current account 2,210,541,471.94 Within credit period 38.27%
341
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Optoelectronic
Technology Co., Ltd.
Shanghai Sunlong
Current account 1,533,274,072.27 Within credit period 26.55%
Bus Co., Ltd.
Wuhu Tunghsu
Optoelectronic
Current account 1,269,060,118.34 Within credit period 21.97%
Equipment
Technology Co., Ltd.
Fuzhou Xufu
Within 1 year after
Optoelectronic Current account 282,538,999.97 4.89%
credit period
Technology Co., Ltd.
0.00%
Shijiazhuang Xuxin
Optoelectronic Current account 179,448,608.11 1-2 years 3.11%
Technology Co., Ltd.
Total -- 5,474,863,270.63 --
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Nil
Other note：
Nil
3.Long-term equity investment
In RMB
Year-end balance Year-Beginning balance
Items Impairment Impairment
Book Balance Book value Book Balance Book value
provision provision
Investment in 24,708,559,881.5 24,330,387,231.6 21,269,035,359.7 20,890,862,709.8
378,172,649.84 378,172,649.84
subsidiaries 1 7 1 7
Investment in
joint ventures and 2,174,347,969.22 2,174,347,969.22 2,129,502,187.30 2,129,502,187.30
associates
Total 26,882,907,850.7 378,172,649.84 26,504,735,200.8 23,398,537,547.0 378,172,649.84 23,020,364,897.1
342
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
3 9 1 7
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Wuhu Tunghsu
Optoelectronic
Equipment 290,900,000.00 290,900,000.00
Technology Co.,
Ltd.
Shijiazhuang
Xuxin
Optoelectronic 1,966,568,609.92 1,966,568,609.92
Technology Co.,
Ltd
Zhengzhou Xufei
Optoelectronic
1,791,853,741.58 1,791,853,741.58
Technology Co.,
Ltd.
Sichuan Xuhong
Optoelectronic
1,221,178,272.58 800,000,000.00 2,021,178,272.58
Technology Co.,
Ltd.
Wuhu Tunghsu
Optoelectronic
4,711,064,000.00 4,711,064,000.00
Technology Co.,
Ltd.
Fuzhou Tunghsu
Optoelectronic
1,745,000,000.00 1,745,000,000.00
Technology Co.,
Ltd.
Wuhan Tunghsu
Optoelectronic
3,247,200.00 3,247,200.00
Technology Co.,
Ltd.
Fuzhou Xufu
24,000,000.00 24,000,000.00
Optoelectronic
343
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Technology Co.,
Ltd.
Shenzhen Xuhui
Investment Co., 100,000,000.00 100,000,000.00
Ltd.
Xuyou Electric
Material
570,628,050.30 570,628,050.30
Technology
（Wuxi）Co., Ltd.
Tunghsu
（Yingkou）
166,771,734.60 166,771,734.60
Optoelectroinc
Display Co., Ltd.
Shijiazhuang
Colour Bulb Co., 439,341,956.80 439,341,956.80 378,172,649.84
Ltd
Jiangsu Jixing
New Material Co., 222,345,300.00 75,000,000.00 297,345,300.00
Ltd.
Tunghsu
（Kunshan）
800,000,000.00 200,000,000.00 1,000,000,000.00
Display Material
Co., Ltd.
Beijing Xutan
New Material
10,500,000.00 10,500,000.00
Technology Co.,
Ltd.
Beijing Xufeng
Real Estate Co., 470,000,000.00 470,000,000.00
Ltd.
Tunghsu
Construction 3,000,453,728.53 3,000,453,728.53
Group Co.,Ltd.
Shanghai Sunlong
3,800,000,000.00 2,100,000,000.00 5,900,000,000.00
Bus Co., Ltd.
Shenzhen Sanbao
Chuangxin 157,598,587.50 157,598,587.50
Inteligent Co., Ltd.
Beijing Tunghsu
Huaqing 3,500,000.00 3,500,000.00
Investment Co.,
344
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Ltd.
Shanghai Tanyuan
Huigu New
Material 73,454,500.00 73,454,500.00
Technology Co.,
Ltd.
Taizhou Tunghsu
graphene Industry
Investment Fund 25,000,000.00 25,000,000.00
Management
Center
Fuzhou Tunghsu
Investment
500,000,000.00 500,000,000.00
Development Co.,
Ltd.
Anhui Xuan
Optolectronic
10,000,000.00 10,000,000.00
Technology Co.,
Ltd.
Tunghsu
Optoelectronic 782,250.00 782,250.00
EU.C.V(Holland)
21,269,035,359.7 24,708,559,881.5
Total 4,010,152,572.10 570,628,050.30 378,172,649.84
1 1
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
Tunghsu
Group 2,004,062 52,198,29 2,056,260
Finance ,204.94 0.80 ,495.74
Co., Ltd.
345
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Tunghsu(
Deyang)
Graphen
e
19,454,20 19,517,09
Develop 62,892.62
0.71 3.33
ment
Fund
Partners
hip（LP）
Zibo Bus 32,678,81 9,137,725 41,816,53
Co., Ltd. 3.57 .63 9.20
Zhongda
Chengx
in
Internat
ional 73,306,96 2,963,966 76,270,93
Comm 8.08 .20 4.28
ercial
Factori
ng Co.,
Ltd.
2,129,502 19,517,09 64,362,87 2,174,347
Subtotal
,187.30 3.33 5.25 ,969.22
2,129,502 19,517,09 64,362,87 2,174,347
Total
,187.30 3.33 5.25 ,969.22
（3）Other notes
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 127,730,245.51 92,810,680.07 188,688,625.35 135,848,152.08
Other business 64,466,696.29 60,182,760.63 35,347,620.01 22,002,680.00
Total 192,196,941.80 152,993,440.70 224,036,245.36 157,850,832.08
5. Investment income
In RMB
Items Amount of current period Amount of previous period
346
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Income from long-term equity investment
479,371,949.70 665,000,000.00
measured by adopting the cost method
Investment loss through disposal of
64,362,875.25 4,680,716.60
long-term equity investment
Disposal of long-term equity investment
-1,209,669.93
income
Financing income 13,923,452.07 59,030,191.76
Total 556,448,607.09 728,710,908.36
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current
3,450,757.10
assets
Government grants recognized in the current
period, except for those acquired in the
ordinary course of business or granted at 124,464,054.70
certain quotas or amounts according to the
country’s unified standards
Gains and losses from assets under trusted
14,623,990.55
investment or Management
Net gain/loss of current term from
consolidation of subsidiaries under common
-11,435,425.33
control from beginning of term to the
consolidation date
Entrusted with the operating of the trust to
707,547.18
obtain fee income
Other non-operating income and expenditure
10,172,838.56
beside for the above items
Other gains or losses satisfying the definition
552,086.75
of extraordinary gains or losses
Less: Influenced amount of income tax 20,174,896.94
Amount of influence of minority interests
4,628,919.46
（After tax）
347
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
Total 117,732,033.11 --
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 and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for 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
Earnings per share
Profit of the report period Return on net assets . Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of 6.83% 0.38 0.38
Company.
Net profit attributable to the
Common stock shareholders of
6.44% 0.36 0.36
Company after deducting of
non-recurring gain/loss.
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 and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
348
Tunghsu Optoelectronic Technology Co., Ltd. 2018 Annual Report
XII. Documents available for inspection
1.The original annual report bearing the signature of the Chairman of the Board of Directors of the Company;
2.The text of the financial report bearing the seal and signature of the Legal representative of the Company,
financial controller and the person in charge of accounting organ
3.Original audit report seal with accounting firms and signature and seal from CPA;
4.Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the
newspapers as designated by China Securities Regulatory Commission.
【Note】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：April 29,2019
349
