石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
SHIJIAZHUANG BAOSHI ELECTRONIC GLASS COMPANY LIMITED
Semi-annual Report 2012
I．Important notes
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior
Executives of the Company hereby warrant 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.
All directors are attending the Meeting for deliberation and approval for the semi-annual report.
Mr. Li Zhaoting, Person in charge of the Company, Mr.Shi Zhiqiang , Person in charge of
accounting works, Mr. Wang Kuan , in charge of accounting institution represent and warrant the
financial and accounting report in the semi-annual report is true and complete.
II. Basic Information of the Company
（I）Company information
Code of A-Stock 000413 Code of B-Stock 200413
Stock A abbreviation Baoshi A Stock b abbreviation Baoshi B
Shenzhen Stock Exchange
Stock exchange for listing
Statutory name of the
石家庄宝石电子玻璃股份有限公司
Company in Chinese:
Chinese abbreviation
Statutory name of the
SHIJIAZHUANG BAOSHI ELECTRONIC GLASS COMPANY LIMITED
Company in English
English abbreviation SJZBS
Legal representative Li Zhaoting
Registered address 9 Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province
Zip Code 050035
Office Address: 9 Huanghe Road, Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province
Zip Code 050035
Website:
E-mail bs@bseg.cn
（II）Contact person and contact manner
Board secretary Securities affairs Representative
Name Fu Yinfang Wang Qingfei
Contact address 9 Huanghe Road, Shijiazhuang High-tech 9 Huanghe Road, Shijiazhuang High-tech
Industrial Development Area, Industrial Development Area,
1
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
Shijiazhuang, Hebei Province Shijiazhuang, Hebei Province
Tel 0311-86917775 0311-86917775
Fax 0311-86917775 0311-86917775
E-mail bsdz@heinfo.net baoshixzb@126.com
（III）Information disclosure and placed
Newspapers selected by the Company for information
China Securities Daily, Hong Kong Commercial Daily
disclosure
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Interim report of the Company
The place where the Interim report is prepared and Law Securities Dept. of the Company
placed
III. Highlights of financial data and indicators
（I）Highlights of financial data and indicators
Whether retroactive adjusted on previous financial report or not
□ Yes √ No□ Not applicable
Main accounting data
Reporting period Increase/decrease in this
Highlights accounting data Same period of last year report period
（January-June）
year-on-year(%)
Operating Gross income 361,355,746.17 26,820,188.44 1,247.33%
Operating profit 121,155,230.23 -9,976,401.05 1,314.42%
Total profit 121,456,281.19 -10,046,298.56 1,308.97%
Net profit attributable to the shareholders
41,175,784.18 -9,850,826.53 517.99%
of the listed company
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 41,124,720.31 -9,780,929.02 520.46%
listed company
Cash flow generated by business operation,
-47,915,720.68 -9,288,305.16 -415.87%
net
End of report year At the end of last year Changed over last year（％）
Gross Assets 824,610,787.39 374,112,091.30 120.42%
Shareholders’ equity attributable to
273,654,360.07 232,478,763.31 17.71%
shareholders of the listed company
Capital stock 383,000,000.00 383,000,000.00
Main financial indices
Increase/decrease in this
Reporting period
Main financial indices Same period of last year report period
（January-June）
year-on-year(%)
Basic gains per share(RMB/Share) 0.11 -0.03 466.67%
Diluted gains per share(RMB/Share) 0.11 -0.03 466.67%
Basic earning per share after deducting of
0.11 -0.03 466.67%
non-recurring gains/losses(RMB/Share)
Diluted return on equity （%） 15.05% -4.67% 19.72%
Weighted average return on equity（%） 16.27% -4.22% 20.49%
2
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
Diluted return on equity after deducting
15.03% -4.64% 19.67%
non-recurring gains and losses（%）
Net income on asset, weighted and
16.25% -4.19% 20.44%
deducted non-recurring gain/loss(%)
Net cash flow per share generated by
-0.125 -0.024 -420.83%
business operation (RMB/Share)
End of report year At the end of last year Changed over last year（％）
Net assets per share attributable to
shareholders of the Company (RMB 0.71 0.61 16.39%
Yuan/share)
Assets liabilities ratio(%) 57.37% 30.55% 26.82%
The information of main accounting data and main financial indices of the company by the end of report period.(Filling the
adjustment explanation if retroactive adjusted)
Naught
（II）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
2. Simultaneously pursuant to both Chinese accounting standards and overseas accounting standards disclosed in
the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
3. Significant differences between line items
Explanation on IAS and (or)
Items with major differences Amount involved （RMB） Reasons for differences foreign accounting standards
involved
Naught
4. The explanation of accounting data from the Statement on differences between the IAS and Domestic
accounting Standard
On September 12, 2009, CSRC issued the Circular about Issues Concerning Audit of Companies Issuing Domestically Listed Foreign
Investment Shares. According to the circular, the requirement of dual audit, i.e., a company issuing domestically listed foreign
investment shares should be subject to overseas audit while retaining a certified public accountants' firm with securities-related
qualification for audit, in information disclosure code previously promulgated would be cancelled from the issue day of the circular.
The Company did not prepare financial report under international accounting standards from 2007. The financial report of the
Company was prepared according to Chinese Accounting Standards for Business Enterprises. So there was no difference arising from
domestic and international accounting standards in the report period.
（III）Items and amount of deducted non-current gains and losses
√Applicable□ Not applicable
Items Amount（RMB） Notes
Gain/loss form disposal of non-current assets -249,537.09
3
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
Tax refund, deduction and exemption that is examined and
approved by authority exceeding or has no official approval
document.
Governmental Subsidy accounted as current gain/loss,
except for those subsidies at with amount or quantity fixed
by the national government and closely related to the
Company’s business operation.
Capital occupation fee collected from non-financial
organizations and accounted as current gain/loss.
Income from the exceeding part between investment cost of
the Company paid for obtaining subsidiaries associates and
joint-ventures and recognizable net assets fair value
attributable to the Company when acquiring the investment.
Non-monetary asset exchange gain/loss.
Gain/loss investment of Commission
Asset impairment provisions for force major such as natural
disasters
Gain/loss from debt reorganization
Enterprise reorganization expenses, such as payment to stuff
placement and consolidation expenses
Gain/loss from trades obviously departed from fair value
Net gain/loss of current term from consolidation of
subsidiaries under common control from beginning of term
to the consolidation date
Gain/loss from debt forcasting without connection to the
main business operation
In addition to normal business with the company effective
hedging related business, holders of tradable financial
assets, transactions and financial liabilities arising from
changes in fair value gains and losses, as well as the
disposal of trading of financial assets, trading financial
liabilities and available-for-sale financial assets gains return
on investment;
Single impairment test for impairment of receivables
transferred back to preparation
Commissioned external loans by the Gain/loss
The use of fair value measurement model of follow-up to
the fair value of real estate investment gains and losses
arising from changes
According to tax, accounting and other laws, regulations,
the requirements of the current Gain/loss for a one-time
adjustment of the impact of the current Gain/loss;
Entrusted with the operating of the trust to obtain fee
income
Net amount of non-operating income and expense except
300,600.96
the aforesaid items
Other non-recurring Gains/loss items
Amount of influence of minority interests
Amount of influence of income tax
Total 51,063.87 --
Statement of the Company on “ Other gain/loss items satisfying the definitions of non-recurring gain/loss accounts” and the
non-recurring items defined as recurring items according to the nature and characteristics of the businesses.
Items Amount involved （RMB） Remarks
4
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
IV Particulars about the Changes of Share Capital and Shareholders
(1)Particulars about the Changes of Share Capital
1.Statement of changes in shares
□ Applicable√ Not applicable
2.Change in conditional shares
□ Applicable√ Not applicable
（II）The information of issuing shares
1. The information of issuing shares in the previous three years
□ Applicable√ Not applicable
2. Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable√ Not applicable
3.Current employees’ shares
□ Applicable√ Not applicable
（III）Shareholders and the substantial controller of the Company
1.Total of shareholders at the end of report term
Number of shareholding accounts at the end of report term was 18,246，including 10,911 shareholders holding A shares and 7,335
shareholders holding B shares..
2. Particulars about the shareholding of the top ten shareholders
Particulars about the shareholding of the top ten shareholders
Nature of Quantity of Pledged or frozen
Name of shareholder Proportion (%) Conditional shares
shareholder shares held Status Quantity
Domestic
Shijiazhuang Baoshi
Non-State-owned 28.93% 110,785,500
Electronic Group Co., Ltd.
legal person
China Great Wall Asset State-owned
4.6% 17,614,880
Management Corporation Legal person
China Minsheng Banking Co.,
Fund, Financing Pro
Ltd.－Huashang Lead Enterprise duct and Other
3.79% 14,500,000
Mixed Securities Investment
Fund
China East Asset Management State-owned
2.61% 10,010,941
Corporation Legal person
Domestic nature pe
Yao Yanbin 2.36% 9,023,011
rson
Taifook Securities Company Foreign Legal
1.24% 4,765,303
Limited-Account Client person
GUOTAI JUNAN
Foreign Legal
SECURITIES(HONGKONG) 0.9% 3,433,614
person
LIMITED
Foreign nature
Chen Qianfen 0.88% 3,368,300
person
NATWEST SECURITIES Foreign Legal
0.87% 3,337,100
HONG KONG LIMITED person
Foreign nature
LI LEON ZHAN WEI 0.84% 3,229,000
person
5
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
Notes
Top 10 holders of unconditional shares
√Applicable□Not applicable
Amount of tradable Type and Quantity
shares with
Full name of shareholder unrestricted conditions
held at the end of Type Quantity
report period
Shijiazhuang Baoshi Electronic Group Co., Ltd. 110,785,500 A shares 110,785,500
China Great Wall Asset Management
17,614,880 A shares 17,614,880
Corporation
China Minsheng Banking Co., Ltd.－Huashang
Lead Enterprise Mixed Securities Investment 14,500,000 A shares 14,500,000
Fund
China East Asset Management Corporation 10,010,941 A shares 10,010,941
Yao Yanbin 9,023,011 A shares 9,023,011
Taifook Securities Company Limited-Account
4,765,303 B shares 4,765,303
Client
GUOTAI JUNAN
3,433,614 B shares 3,433,614
SECURITIES(HONGKONG) LIMITED
Chen Qianfen 3,368,300 B shares 3,368,300
NATWEST SECURITIES HONG KONG
3,337,100 B shares 3,337,100
LIMITED
LI LEON ZHAN WEI 3,229,000 B shares 3,229,000
Notes to the related relationship between the shareholders or their concerted action
Among the top ten shareholders as listed above, there exists no associated relationship among the shareholders of legal person share.
The relation between the top ten shareholders was unknown. It was unknown whether they are persons taking concerted action
specified in Regulations on the Information Disclosure of the Change of Shareholding of Shareholders of Listed Companies.
3. Introduction to the controlling shareholder and actual controller
（1）The changing information of the controlling shareholder and actual controller
□ Applicable√ Not applicable
（2）The actual introduction to the controlling shareholder and actual controller
Whether exist new actual controller
□ Yes √ No □Not applicable
The Name of the actual controller Li Zhaoting
The classification of actual controller Individual
Explanation :
Li Zhaoting, male, born in July 1965, is a CPC member and a Chinese without obtaining the right of residence in other countries or
regions. From 2006 to 2011, He served as director of Hebei Dongxu investment Group Co., Ltd. He now serves as board chairman of
Dongxu Group Co., Ltd., Dongxu Optoelectronic Investment Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd.,
Mudanjiang Xuyang Solar Energy Technology Co., Ltd., Jinzhou Xulong Solar Energy Technology Co., Ltd., Tongliao Xutong Solar
Energy Technology Co., Ltd., Dongxu (yingkou) Optoelectronic Display Co., Ltd.， Chengdu Xushuang Solar Energy Technology ,
Chengdu Taiyisi Solar Energy Technology Co., Ltd., Zhengzhou Xufei Optoelectronic Technology Co., Ltd., Wuhu Dongxu
Optoelectronic Technology Co., Ltd., Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. , Shijiazhuang Xuguang
Optoelectronic Equipment Technology Co., Ltd., Wuhan Dongxu Optoelectronic Technology Co., Ltd., Shijiazhuang Xuling
Electronic Technology Co., Ltd. and Shijiazhuang Baishi Xuming Tube Co., Ltd., Vice board chairman and General Manager of
Chengdu Zhong Optoelectronic Technology Co., Ltd. , Director of Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. and
General Manager of Zong Optoelectronic Technology Co., Ltd.
Since May 2010, He served as director and board chairman of Shijiazhuang Baoshi Electronic Group Co., Ltd.,Since November 2011,
He served as director and board chairman of the Company.
(3)The block diagram of the title and control relationship between the Company and actual controller is as follows:
6
石家庄宝石电子玻璃股份有限公司 2012 年半年度报告全文
（4）Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable√ Not applicable
4. The other legal person shareholders holding more than 10% shares of the Company.
□ Applicable√ Not applicable
（IV）Information of convertible corporate bonds
□ Applicable√ Not applicable
V. Directors, Supervisors, Senior Executives
7
（I）The changes of holding shares of the directors, supervisors and senior executives
The The Remuneratio
Number of Of which:
increased decreased Number of Final n drawn from
Beginning Ending date shares held at the number
number of number of shares held at numbers of Reason for shareholder
Name Position Sex Age date office of office the of restricted
shares on the shares on the the year-end stock options change entities or
term term year-begin stocks held
report period report period (shares） held（Shares） other related
（Shares） （Shares）
（Shares） （Shares） parties or not
Board November November
Li Zhaoting Male 47 0 0 0 0 0 0 Yes
chairman 30,2011 10, 2012
November 11 November
Wang Lipeng Dirctor Male 44 1,000 0 0 1,000 0 0 No
2009 10, 2012
November 11 November
Zhou Bo Director Male 47 9,724 0 0 9,724 0 0 Yes
2009 10, 2012
Director,
November November
Fu Yinfang Board Female 45 0 0 0 0 0 0 No
10,2009 10,2012
secretary
Independent November 11 November
Yu Rengang Male 66 0 0 0 0 0 0 No
director 2009 10, 2012
Independent November 11 November
Han Zhiguo Male 48 0 0 0 0 0 0 No
director 2009 10, 2012
Zhang Independent November 11 November
Male 44 0 0 0 0 0 0 No
Junhao director 2009 10, 2012
Chairman of
Xie November 11 November
the Male 56 0 0 0 0 0 0 Yes
Mengxiong 2009 10, 2012
supervisory
8
committee
Fan November 11 November
Supervisor Male 56 1,430 0 0 1,430 0 0 Yes
Zhenping 2009 10, 2012
Huang November 11 November
Supervisor Male 45 0 0 0 0 0 0 Yes
Zhichun 2009 10, 2012
November 11 November
Jiang Leze Supervisor Male 41 0 0 0 0 0 0 No
2009 10, 2012
November March 23,
Fan Tao Supervisor Male 52 0 0 0 0 0 0 Yes
10,2009 2012
March 23, November
Liu Li Supervisor Female 50 0 0 0 0 0 0 No
2012 10,2012
General April November
Shi Zhiqiang Male 46 0 0 0 0 0 0 No
Manager 17,2012 10, 2012
Wang November 11 November
Deputy GM Male 50 0 0 0 0 0 0 No
Xiaohu 2009 10, 2012
General November November
Zhou Yumao Male 60 0 0 0 0 0 0 No
Accountant 10, 2009 10,2012
Total -- -- -- -- -- -- --
The directors, supervisors and senior managers did not implement equity incentives.
□Applicable√Not applicable
9
（II）Representation information
Representation of shareholders
√Applicable□Not applicable
Term Whether receiving
Term start
Name Name of corporate shareholders Position terminated remuneration or
date
date subsidy
Shijiazhuang Baoshi Electronic Group Co., Director, Board
Li Zhaoting No
Ltd chairman
Shijiazhuang Baoshi Electronic Group Co., Director, General
Zhou Bo Yes
Ltd Manager
Shijiazhuang Baoshi Electronic Group Co., Deputy secretary of
Xie Mengxiong Yes
Ltd Party committee
Shijiazhuang Baoshi Electronic Group Co., Director, Board
Fu Yinfang No
Ltd secretary
Deputy chief of
Shijiazhuang Baoshi Electronic Group Co.,
Fan Zhenping Public Security Yes
Ltd
Division
Security of Party
Shijiazhuang Baoshi Electronic Group Co., Branch and Deputy
Huang Zhichun Yes
Ltd Manger of Glass
Tube
The
explanation of
Representation
of shareholders
Representation in other unit
√Applicable□Not applicable
Whether received
Service term
Name Other unit Post occupied Service term ended remuneration from other
from
unit or not
Board
Li Zhaoting Dongxu Group Yes
chairman
Dongxu optoelectronic Investment Co., Board
Li Zhaoting No
Ltd. chairman
Shijiazhuang Baoshi Electronic Vacuum
Zhou Bo Director No
Glass Co., Ltd.
Shijiazhuang Baodong Electronic Co., Ltd.
Board
Zhou Bo Chengdu Dongxu Energy saving No
chairman
Technology Co., Ltd.
10
Yu Rengang Hebei Economy and Trade University Professor Yes
Han Zhiguo Zhengchen Law office Lawyer Yes
Hebei Tianhua Certified Public Project
Zhang Junhao Yes
Accountants Co., Ltd manager
Wuhu Dongxu Optoelectronic Technology
Jiang Leze Supervisor No
Co., Ltd.
Wuhan Dongxu Optoelectronic General
Shi Zhiqiang No
Technology Co., Ltd. Manager
Explanation on
Refer to Section IV "Change of the Controlling Shareholder and Actual Controller of the Company" for details about in office
job occupation
information of Li Zhaoting
in other unit
（III）Information of remuneration about Directors, Supervisors and Senior Executives
The determination of
remuneration of Directors, The remuneration of independent directors is determined by shareholders' general meeting.
Supervisors and Senior
Executives.
The rewards determined basis Post skill wage system applied to the directors, supervisors and senior executives of the Company. Their
of directors, supervisors and remuneration is determined according to the wage management system of the Company. The
senior executives remuneration of independent directors is determined by shareholders' general meeting.
Except that current director Zhou Bo, Current supervisor Xie Mengxiong, Fan Zhenping ,Huang
The actual salary payment
Zhichun and Ex-Supervisor Fan Tao receive remuneration from corporate shareholders, other directors,
information of Directors,
supervisors and senior executives all receive remuneration from the Company. The annual subsidy of
Supervisors and Senior
independent directors is RMB 20000 / person. Supervisor
（IV）Information about changing Directors, Supervisors and Senior Executives
Name Jobs taken Changed Date of change Cause of change
Fan Tao Supervisor Resignation March 23, 2012
Liu Li Supervisor Election March 23, 2012
Wang Lipeng General Manager Resignation April 16, 2012
Shi Zhiqiang General Manager Appoint April 17, 2012
（V）The Employees
Number of employees in position 984
Retired employees on the Company’s expense 32
Composition of professions
Categories of professions Number of persons
Production 366
Sales & Marketing 42
11
Technicians 400
Finance & Accounting 28
Executive 148
Education background
Categories of education Number of persons
Junior college and above 595
VI.Report of the Board of Directors
(I) Management discussion and analysis
The company is primarily engaged in production and sales of electric vacuum glass devices and accessory electronic components,
research, development, production and sales of panel display glass base plates and their equipment. Along with the continuous
development in display technologies, CRT displays are gradually replaced by flat-panel displays (In particular the flat-panel TFT
LCDs). The company’s revenue from electric vacuum glass devices and accessory electronic components kept shrinking. In 2010, the
management adjusted its business strategy and gradually shifted toward flat-panel display business.
In 2011, The Company is engaged in the electronic parts and components industry, mainly in the manufacturing and sales of
electronic vacuum glass devices and supporting electronic parts and components investment, construction and operation related to the
industry of glass substrate for optoelectronic display, export of the self-produced products of the Company and the import of
mechanical equipment, parts and components, raw and auxiliary materials needed by the Company.
Considering Chinese government’s optoelectronics industry plans, industry policies and the company’s technological reserves, the
management accelerated product mix optimization. The company established Wuhu Dongxu optoelectronic Equipment Technology
Co., Ltd. and Shijiazhuang Dongxu optoelectronic Equipment Technology Co., Ltd., which are engaged in development and
production of flat-panel display glass base plate and provision of related technological services. On the back of its technological
strength, Wuhu Dongxu optoelectronic Equipment Technology Co., Ltd., which is based in Wuhu, China, started mass production of
G6 liquid crystal glass base plate, and established a business mix consisting of liquid crystal equipment production, technological
service provision and industrialized production. The two production lines under phase 1 project in Wuhu are now under construction.
In recent years, display products became increasingly bigger, flatter, thinner and more eco-friendly. Along with continuous
development in liquid crystal technologies and decline in production costs, flat-panel display products, especially TFT-LCD,
represented an increasing portion of global display sales, and now had become the best-selling display products. Data from Display
Search showed that sales of TFT-LCD products will continue to account for over 90% of that of total display products in terms of
delivered areas during the five years after 2012. Therefore, TFT-LCD products will continue to claim a significant share in global
display market, which will drive sales of upstream products like liquid crystal glass base panel. According to data from Display
search, global sales of TFT-LCD liquid crystal glass base panel may reach 440 million square meters by 2014.
To meet the surging market demand and facilitate business optimization, the company plans to raise fund via private placement. The
fund raised will be used to construct ten production lines for the 6th-generation (compatible with the 5.5th-generation) TFT-LCD
glass base plates. The move can help diversify and expand production for glass base plates, and enhance China’s TFT-LCD display
panel production chain. Meanwhile, the company will step up efforts in trustee company management, on-going project construction,
production and marketing of existing products. On top of that, the company will also integrate resources when appropriate and keep
innovating, with the aim of boosting the development of China’s display panel industry.
For the report period,makes improvement and technical renovation of the glass tube furnace has not been finished 。For the report
period, the Company's operating income, operating profit and Net profit attributable to the shareholders of the listed company were
RMB 361.3557 million, RMB121.1552 million and RMB 41.1758 million respectively, which increased by 1247.33%,1314.42%
12
and517.99 % year on year.
Description for above 20% of the company's actual business performance than the profit forecast disclosed
publicly during the reporting period
□ Yes √ No □Not applicable
Major subsidiaries of the company, shares of the company's operations and performance analysis
(1) Hebei Xubao Construction Installation Engineering Co., Ltd. Its key business: engineering design and construction of houses and
buildings, engineering consultation, etc. Its registered capital is RMB 8 million. The Company owns 100% equity of this company.
For the report period, the Company's Total assets, Net assets and net profit were RMB15.2833million, RMB 11.6786 million and
RMB 0.3769 million respectively, The Company earned operating income of RMB2.8261million and operating profit of
RMB8.364million.
(2) Shijiazhuang Baoshi Color Bulb Co., Ltd.. Its key business: production and sales of glass bulbs for color kinescope and
electronic glass products. Its registered capital is RMB540.68 million, The Company owns 81.26% equity of this company. For the
report period, the Company's Total assets, Net assets and net profit were RMB181.2152 million, RMB 96.3348 million and
RMB-0.5876million respectively.
(3) Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. Its key business: R&D of optoelectronic mechanical equipment
and electronic products, production of all kinds of non-standard equipment and parts and relevant process formulation. Its registered
capital is RMB10 million, The Company owns 51% equity of this company. For the report period, For the report period, the
Company's Total assets, Net assets and net profit were RMB395.5730million, RMB 104.594 million and RMB 90.3166 million
respectively, The Company earned operating income of RMB153.0922 million and operating profit of RMB92.3928million.
(4)Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd., Its key business: optoelectronic device installation and
relevant technological development, technology transfer, technical consultation and technical services. Its registered capital is RMB
10 million. Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd., a controlled subsidiary of the Company, owns 51%
equity of Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. For the report period, the Company's Total assets,
Net assets and net profit were RMB265.6397million, RMB 30.3944 million and RMB 21.0144 million respectively, The Company
earned operating income of RMB178.2254 million and operating profit of RMB29.3854million.
(5) Wuhu Dongxu Optoelectronic Technology Co., Ltd. Its key business: investment, construction and operation related to the
industry of glass substrate for optoelectronic display and relevant technological development. Its registered capital is RMB 5 million.
The Company owns 100% equity of this company. For the report period, the Company's Total assets and Net assets was
RMB205.8609million and RMB 1.9065 million respectively.
（6）Wuhan Dongxu Optoelectronic Technology Co., Ltd.，key business: investment, construction and operation related to the
industry of glass substrate for optoelectronic display(TFE-LCD LED Glass), Its registered capital is RMB 5million. The Company
owns 62.50% equity of this company. For the report period, the Company's Total assets and Net assets was RMB4.6801million and
RMB4.0607 million respectively.
All the risk factors that maybe have adverse influence on the achievement of future development strategy and
business objective of the company
Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.’s liquid crystal glass project requires massive investment. The
company is looking to raise RMB 5 billion. The remainder amount will be funded through bank lending. The private placement plan
is still waiting for approval. All funds raised will be used to fund production line construction. Two production lines in phase 1 of
Wuhu project are still under construction. Banks have provided capital support to construction of such production lines. However,
because crystal glass base panel project requires large one-off investment, investment scale can exert significant impact upon project
progress. Meanwhile, as panel display technology develops very rapidly and this business faces very intense competition, which
requires the company to keep investing in R&D to sustain its competitive advantages. Given the fact that China’s glass base plate
13
production is still at early stage, Chinese manufacturers still lag behind foreign counterparts in terms of production scale and overall
strength. Therefore, we need to keep increasing market share to boost our financial results.
1.The Status of key business in terms of industry of business.
（1）The Status of key business in terms of industry and product of business.
Unit ：RMB
Change of Gross
Increase/decrease Increase/decrease
On industry or Income from key Cost of key Gross profit rate profit rate over
of key business of key business
production business business （％） the same period
turnover（％） cost（％）
of last year（％）
In terms of business line
Glass substrate
Equipment and
276,881,231.97 125,963,789.00 54.51%
Technology
Serves
Glass tube sales 5,480,526.00 4,224,274.96 22.92% -53.56% -71.18% 47.14%
Part sales 17,389,115.54 9,048,169.63 47.97% 378.06% 116.02% 63.12%
Construction
Installation 2,826,107.84 1,894,737.08 32.96%
Engineering
In terms of product
Glass substrate
Equipment and
276,881,231.97 125,963,789.00 54.51%
Technology
Serves
Glass tube sales 5,480,526.00 4,224,274.96 22.92% -53.56% -71.18% 47.14%
Part sales 17,389,115.54 9,048,169.63 47.97% 378.06% 116.02% 63.12%
Construction
Installation 2,826,107.84 1,894,737.08 32.96%
Engineering
The Status of key business in terms of industry and product of business.
Due to glass tube market price increases, gross profit rate increased considerably;
Component production volume increased over last year, unit production costs reduced and therefore gross profit margins increased
considerably.
（2）Main operation in terms of areas are as follows:
Unit：RMB
Area Income from key business Increase/decrease of income（％）
North East 125,315,423.94
South West 79,595,000.00
Middle China 76,250,027.69
North China 21,416,529.72 35.56%
（3）Reasons for the material change of key business and its structure
14
√Applicable□Not applicable
The main structure of the product transfered gradually from Color TV picture tube element to high-end display glass base plate
equipment and technical services
（4）Reasons for the material change of the profitability ( gross profit rate) of the key business compared with the previous year
√Applicable□Not applicable
The main structure of the product transfered gradually from Color TV picture tube element to high-end display glass base plate
equipment and technical services
（5）Analysis of the reasons for the material change of profit structure compared with the previous year
√Applicable□Not applicable
The main structure of the product transfered gradually from Color TV picture tube element to high-end display glass base plate
equipment and technical services
（6）Business nature, main products or service as wells net profit for stock jointly enterprises who take over 10% of the net profit
□ Applicable√ Not applicable
（7）Problems and difficulties in operation
Naught.
2.Internal controlling system related to accounting of fair value
□ Applicable√ Not applicable
3.Holding of financial assets and liabilities in foreign currency
□ Applicable√ Not applicable
（II）Investment of Company
1.The Company raised funds in the report period.
□Applicable√Not applicable
2.Commitments on projects of raised funds
□Applicable√Not applicable
3.Changes of projects of raised funds
□ Applicable√ Not applicable
4.Investment on major projects of non-raised funds
□ Applicable√ Not applicable
（III）Revising of business plan of the second half of year by the Board
□ Applicable√ Not applicable
（IV）Prediction of Business performance for Jan-Sept 2012.
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
√ Applicable □ Not applicable
Forenotice of earnings: Carry-back of Losses
Type of date filled for the prediction.
□ Actual figures √ interval figures
Year beginning to end of next Same period of
Increase or decrease%
report period the previous year
Estimated amount of 10000 -- 11000 -227.71 -- □ Increase --
15
accumulative net □Decrease
profit(RMB’0000)
Basic earnings per shares --- □ Increase
0.26 -- 0.29 -0.0059 --
(Yuan/share) □Decrease
Notes to forenotice of In January to September of 2012, the company sold LCD glass substrate production line equipment
earnings and provided glass substrates technical service which rapidly increased its profits.
（V）The management’s remarks on the “non-standard opinions” by the auditors for the
report period
□ Applicable√ Not applicable
(VI)The management’s remarks on any changes in and results of issues related to the “non
opinions” by the auditors for the previous year.
□ Applicable√ Not applicable
（VII）Results of discussion by the Board on the causation and impact of change in
accounting policies and estimations or correction of material accounting errors..
□ Applicable√ Not applicable
（VIII）Establishment and Implementation of Cash Dividend Policy of the Company
In accordance with the relevant provisions of “Notice on Further Implementation of the Issues related to the Cash Dividends of
Listed Companies” issued by the China Securities Regulatory Commission (CSRC) and considering reality of the company, the
company has made amendment to the part of terms related to the profit distribution policy in the “Articles of Association”, made
further perfection on cash dividend policy, and had the open and transparent formulation of cash dividend policy and
decision-making procedure for the company, which all meet the relevant provisions. The revised “Articles of Association” has
clarified the ways of profits distribution, the implementation conditions of cash dividends and stock dividends, the proportion and
interval of cash dividends, the decision-making procedure and mechanism of profits distribution policy, and a variety of channels
provided to hear the opinions of the independent directors and minority shareholders, which has improved the transparency and
operability of the profits distribution decision-making and further perfected the conduct of profits distribution of the company. Also,
the company has formulated “Shareholder Returns Plan in the Next Three Years (2012 to 2014)”. The amendment to “Articles of
Association” and the “Shareholder Returns Plan in the Next Three Years (2012 to 2014)” have been examined and approved by the
25th Meeting of the 6th Board of Directors of the Company and 2012 Second Extraordinary Shareholders General Meeting, the
decision-making procedure is transparent, and the relevant specifications are met. The “Amendment to Articles of Association” and
the “Shareholder Returns Plan in the Next Three Years (2012 to 2014)” have published on www.cninfo.com) on July 7, 2012.
The company shall strictly implement above relevant rules and regulations.
（IX）Profit distribution or capitalizing of common reserves
□ Applicable√ Not applicable
(X)Situation Of positive retained profit at end of 2011 but no cash dividend was proposed
□ Applicable√ Not applicable
（XI）Other Disclosures
1. The company’s wholly owned subsidiary of Wuhu Dongxue Optoelectronic in the LCD business has submitted to the Anhui
16
provincial development and Reform Commission for the record, the project's environmental impact report has been made and
received by Anhui Province Environmental Protection Office audit and officially replied, For the project site, the pre-audit opinion of
Anhui Land and Resource Department on land for construction project has been obtained. For the project site of 134,724.84 square
meters, corresponding land use right certificate has been obtained. Two lines of phase-I project are under construction.
2. According to the actual conditions of domestic A share market, the 30th meeting of the board of directors and the 21st of the sixth
supervisory committee of the Company examined and adopted the Proposal for Adjusting the Scheme for the Company's Private
Issue of A Shares on August 16, 2012 to ensure the smooth progress of private issue of shares. (Refer to relevant announcements
disclosed by the Company on China Securities Daily, Hong Kong Commercial Daily and www.cninfo.com.cn on August 17, 2012 for
details.) Such proposal is to be submitted to the fourth provisional shareholders' general meeting of the Company in 2012 for
examination.
3. After examination and adoption by the 13th meeting of the sixth board of directors of the Company, the board of directors
authorized the management of the Company to dispose of the rhodium platinum parts according to market conditions. The Company
sold noble metal of rhodium platinum of 198.78 kg. The total price is RMB 50.6676 million.
（XII）Liabilities, credit changes and cash arrangement for debt paying in later year(only
applies to listed company with corporate convertible bonds offered)
□ Applicable√ Not applicable
VII. Important Events
(1).Governance of the Company
The company shall strictly abide by the relevant laws, rules and regulations, and the requirements of regular documents of Listed
Companies governance such as “Corporate Law”, “Securities Law” and “Governance Rules of Listed Companies” to continuously
improve the corporate governance structure, standardize the company operations, and strictly comply with the relevant laws and
regulations to convene and hold the General Meeting of Shareholders; the Board of Directors of the company shall earnestly
implement the resolutions of the shareholders’ meeting; the Supervisory Board shall strictly perform the supervision functions as per
the provisions, and safeguard the legitimate rights and interests of the company and its all shareholders; the management of the
company shall seriously implement the resolutions of the shareholders’ meeting and the Board of Directors and perform all kinds of
decisions-making; and the company shall conduct the information disclosure truly, accurately, completely, timely and fairly. During
the report period, the company has formulated the implementation scheme of internal control norms according to the “Fundamental
Norms for Enterprise Internal Control” jointly issued by five departments, such as Ministry of Finance, China Securities Regulatory
Commission and combined with the actual situation of the company. Also, during the report period, the company has made
arrangement for the key business processes and prepared the risk list and the business flowchart to find out the defects of internal
control according to the implementation plans and schemes of internal control.
As of the end of operating period for the report, the company’s corporate governance structure is in line with requirements under
Chinese laws and regulations and related written requirements of China Security Regulatory Commission.
（II）Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previous
period and implemented in the current period.
□ Applicable√ Not applicable
17
（III）Material lawsuits
√ Applicable □Not applicable
Date of Serial number of
Joint liability Profile of the Amount claimant Progress of the Results and Progress of
The claimer The defendant Type of claim information the
party claim RMB’0000 lawsuit influence execution
disclosure announcement
Shijiazhuang
approve request collected RMB
Shanxi Tianlu Arbitration
The Company Arbitration 60 of Shanxi Tianlu 600,000 from
Company Committee has
Company our company
given an award
Material lawsuit or arbitration issues occurred after the last annual report were amounted to RMB 0.
Material lawsuit or arbitration issues presented in the last annual report but was not settled were amounted to RMB 0.6million.
Provisions provided for the liabilities formed by the lawsuit was RMB 0.
Description of the material lawsuit or arbitration issues
On April 2009, the company had transferred two commercial acceptance drafts(total of RMB 0.70 million, Payee Nanjing Huafei Company) that held and own the right of bill by the company to Shanxi
Tianlu Company, in order to decrease both credit and debt. On July 2009, Shanxi Tianlu Company cashed RMB 0.1 million, the remaining RMB 0.6 million did not be advanced. On July 2011, the
company received the written application for arbitration from Shijiazhuang Arbitration Commission applied from Shanxi Tianlu Company, Shanxi Tianlu Company requested to return the draft and our
company should pay the remaining RMB 0.6 million. Shijiazhuang Arbitration Committee has given an award to approve request of Shanxi Tianlu Company. Our company has applied to Shijiazhuang
Intermediate People’s Court to revoke the award given by Shijiazhuang Arbitration Committee. On August 15, 2012, Shanxi Tianlu Company applied for compulsory enforcement on the strength of
ruling of Shijiazhuang Intermediate People’s Court, and collected RMB 600,000 from our company. Our company has claimed draft rights against the draft payer Nanjing Huafei Company. Because
Nanjing Huafei Company has been placed into bankruptcy procedures, the RMB 600,000 draft will be handled according to bankruptcy settlement rules.
18
（IV）Bankruptcy or capital reorganizing
□ Applicable√ Not applicable
（V）Holding other PLC’S shares or participating of financial entities
1. Securities investment
□ Applicable√ Not applicable
2. Holding of other PLC’S shares
□ Applicable√ Not applicable
3.Shareholding in non-listed financial entities
□ Applicable√ Not applicable
4.Trading of other PLC’S shares
□ Applicable√ Not applicable
（VI）Asset trade
1. Acquisition or swap in of assets
□ Applicable√ Not applicable
2. Disposal or swap out of assets
□ Applicable√ Not applicable
3.Asset exchange
□ Applicable√ Not applicable
4.Merger of entities
□ Applicable√ Not applicable
5. The progress of the event after the publishing of asset reorganization report or announcement of acquisition or
disposal of assets and its influence on the operating results and financial status for the report period.
□ Applicable√ Not applicable
（VII）Statement on share increasing proposal raised by the holding shareholder or its
action-in-concert parties in the report period
□ Applicable√ Not applicable
（VIII）Implementation and influences of share equity incentive program
□ Applicable√ Not applicable
（IX）Important Related transactions
19
1.Related transaction related to daily operation
√ Applicable □Not applicable
Reasons of
major
Related Related
Content of Proportion In Clearing form Influence of Market Price difference
Type of related Pricing transaction Transaction
Related party Relationship related similar for related profit of the between
transaction principle price amount (RMB’0000)
transaction transactions(%) transaction Company trading price
(RMB’0000) (RMB’0000)
and market
reference price
Shijiazhuang Commodity
Make price and
Baoshi Controlling purchased/labor
two sides 244.23 100% Currency
Electronic Shareholder service
agreement
Group Co., Ltd. received
High-lead Glass
Shijiazhuang Sales tube, Lobour
Make price and
Baoshi Controlling Goods/Labor services,
two sides 2,363.46 100% Currency Profit increase
Electronic Shareholder service Construction
agreement
Group Co., Ltd. received Installation
lobour
Dongxu( Yingk
Sales Equipment for
ou) Make price and
Goods/Labor High-end displa
Optoelectronic Related party two sides 12,070 43.19% Currency Profit increase
service y production lin
Display Co., agreement
received e
Ltd.
High-end displa
Sichuan
Sales y production lin
Xuhong Make price and
Goods/Labor e， technology
Optoelectronic Related party two sides 8,251.54 29.53% Currency Profit increase
service transfer, manual
Technology agreement
received ly installation se
Co., Ltd.
rvices
Zhengzhou Sales High display Make price and
Related party 7,625 27.28% Currency Profit increase
Xufei Goods/Labor parts production two sides
20
Optoelectronic service line technology agreement
Technology received transfer, Lobour
Co., Ltd. Installation
services
A-frame ,Overfl
Sales ow brick
Make price and
Goods/Labor processing,
Dongxu Group Related party two sides 900.15 53.92% Currency Profit increase
service Construction
agreement
received Installation
lobour
Shijiazhuang Sales
Make price and
Dongxu Goods/Labor
Related party A-frame two sides 300 31.14% Currency Profit increase
Machine Co., service
agreement
Ltd. received
Sichuan Sales
Make price and
Xuhong Goods/Labor
Related party A-frame two sides 169.5 17.59% Currency Profit increase
Optoelectronic service
agreement
Technology received
Shijiazhuang
Sales
Baoshi Construction Make price and
Goods/Labor
Large-diameter Related party Installation two sides 15.19 6.42% Currency Profit increase
service
plastic tube lobour agreement
received
Co., Ltd
Sales
Make price and
Shijiazhuang Goods/Labor
Related party two sides 16.6 100% Currency Profit increase
Baodong service
agreement
received
Total -- -- 31,955.67 -- -- -- --
Details of major sold-goods return Naught
Necessity and sustainable of related transaction as well as reasons
Related party transactions matched the company's current reality, is based on the production and management of company needs,
of related transaction with related parties(not with other
conducive to the use of the advantages of the company resources, cost savings, improve efficiency.
marketing dealers)
21
Influence on independence of listed company from related The Company has operations, assets, personnel, financial, institutional independence, have an independent capacity to implement
transaction business, product production and sales to be independent, related party transactions do not affect the independence of the company.
Because the reason for changes in industry trends and the company's development history, the company and the Shijiazhuang Baoshi
Dependence on related parties by Company as well as relevant
Electronic Group Co., Ltd.., Dongxu Group have connected transactions, with the upgrading of the company's business, the
solutions(If applicable)
associated transaction may be gradually reduced or terminated.
Actual implementation of those amount that predicted in this These related party transactions in the company's 2012 daily related transaction were expected.
period by category for daily related transaction.
Explanation on related transactions
Related transactions concerned with routine operations
Selling products and providing labor service to related party Purchasing commodity and accepting labor service form relatedparty
Related party Proportion in Similar transactions Proportion in Similar transactions
Trading amount（RMB’0000） Trading amount（RMB’0000）
amount (%) amount (%)
Shijiazhuang Baoshi Electronic Group Co.,
2,363.46 100% 244.23 100%
Ltd.
Dongxu( Yingkou) Optoelectronic Display
12,070 43.19%
Co., Ltd.
Sichuan Xuhong Optoelectronic Technology
8,251.54 29.53%
Co., Ltd.
Zhengzhou Xufei Optoelectronic Technology
7,625 27.28%
Co., Ltd.
Dongxu Group 900.15 53.92%
Shijiazhuang Dongxu Machine Co., Ltd. 300 31.14%
Sichuan Xuhong Optoelectronic
169.5 17.59%
Technology
22
Shijiazhuang Baoshi Large-diameter plastic
15.19 6.42%
tube Co., Ltd
Shijiazhuang Baodong 16.6 100%
Total 31,711.44 244.23 100%
Of Which：In reporting period, RMB303.2551millionwas arising from related transaction by selling commodity to controlling shareholders and its subsidiary or providing labor service.
2.Related transactions related to asset purchasing or disposal
□ Applicable√ Not applicable
3.Material related transactions related to collaborated external investment
□ Applicable√ Not applicable
4. Current related liabilities and debts
√Applicable□ Not applicable
Whether have non-operational current related liabilities and debts
□ Yes √No
The Company's financing to related party(RMB’0000) Financing of related party to the Company(RMB’0000)
Intere
Balance at Refund Balance at Refund
Interest st
Related parties Related relation the amou Balance at Interest the amoun Balance at Interest
beginning
Amount nt the end of
return
expense beginning
Amount t the end of
return
expen
period period se
of period of period
Non-operational
23
Subtotal
Operational
Sichuan Xuhong Optoelectronic
Related party 8,369.5 8,369.5
Technology
Dongxu Yingkou Optoelectronic Display
Related party 14,121.9 5,000 9,121.9
Co., Ltd.
Zhengzhou Xufei Optoelectronic
Related party 7,625 7,625
Technology Co., Ltd.
Shijiazhuang Baoshi Electronic Group Co., Controlling
2,363.46 769.41 1,594.05 1,061.96 1,188.82 886.34 1,364.44
Ltd.Co Shareholder
Shijiazhuang Dongxu Machine Co., Ltd. Related party 300 90 210 91.36 90.8 0.56
Dongxu Group Co. Related party 751.21 900.15 1,155 496.36
Shijiazhuang Baoshi Xuming Tube Co.,
Related party 180.38 33.57 163.44 50.51 9.7 9.7
Ltd.
Shijiazhuang Baoshi Large-diameter
Related party 787.54 15.19 801.12 1.61
plastic tube Co., Ltd.
Shijiazhuang Baodong Electronic
Related party 154.15 16.63 170.78 0
Co.,Ltd.
Shijiazhuang Baoshi Zhonghe Steel
Related party 557.08 50.47 557.08 50.47
Plastic Shape Co., Ltd.
Shijiazhuang Baoshi Lighting Co.,
Related party 145.51 17.66 143.71 19.46
Ltd.
Shijiazhuang Baoshi Electronic vacuum
Related party 369.74 369.74 0 578.03 97.04 480.99
Glass Co., Ltd.
Jinzhou Xulong Solar Energy Technology
Related party 150 150
Co., Ltd.
Total 2,945.61 33,813.53 9,220.28 27,538.86 1,153.32 1,926.55 1,074.18 2,005.69
24
Total 2,945.61 33,813.53 9,220.28 27,538.86 1,153.32 1,926.55 1,074.18 2,005.69
Funds offered to controlling shareholders and its subsidiary by the
33,813.53
company in report period(RMB’0000)
Including: Amount occurring non-operational (RMB’0000) 0
Balance Of funds offered to controlling shareholders and its
27,538.86
subsidiary by the Company(RMB’0000)
Including :Balance Of non-operational (RMB’0000) 0
Reasons of Related liabilities and debts Related to the relevant transaction in daily operation
The company and related companies were doing normal business, the credit and debt obligations will be cleaned according to contrac
liquidation of related liabilities and debts
t after finishing the contract
Commitments concerned with related liabilities and debts According to the contract settlement
Influence on business performance and financial status of the
It is normal coming and going of funds which did not influence the company outcomes and finance
Company from related liabilities and debts
Capital appropriation and progress of clearing in report period
□ Applicable√ Not applicable
The penalty plan proposed by board if the clearing of non-operational capital appropriation is not completed till the end of report period.
□ Applicable√ Not applicable
25
5. Other Important Related transactions
Naught.
（X）Important contracts and their performance
1.Trusteeship , contract, or leasing issues which contributes 10% or over of total profit of the period
（1）Trusteeship
□ Applicable√ Not applicable
（2）Contracts
□ Applicable√ Not applicable
（3）Leasing
□ Applicable√ Not applicable
2.Guarantees
√Applicable □ Not applicable
Unit：RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
Name of the date/No. of Amount of Guarantee Guarantee implemen
(Date of mount of associated
Company the Guarantee type term tation
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
Shijiazhuang
September September 18,
Construction 1,880 1,880 Mortgage 1 year No
23, 2006 2006
Investment Co., Ltd.
Total of external guarantee Total of actual external
approved in Period(A1) guarantee in Period(A2)
Total balance of actual
Total of external guarantee
external guarantee at 1,880
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Relevant
Date of Complete Guarantee
disclosure
Name of the Amount happening Actual implemen for
date/No. of Guarantee Guarantee
Company of (Date o mount of tation associated
the type term
guaranteed guarantee signing guarantee or parties
guaranteed
agreement) not (Yes or no)
amount
Total of guarantee for subsidiaries Total of actual guarantee
approved in the Period (B1) for subsidiaries in the
26
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
for subsidiaries at 0
approved at Period-end (B3)
Period-end (B4)
Total of Company’s guarantee（namely total of the large two aforementioned）
Total of actual guarantee in
Total of guarantee in the Period
the Period
(A1+B1)
(A2+B2)
Total of actual guarantee at
Total of guarantee at Period-end
Period-end 1,880
(A3+B3)
(A4+B4)
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is A4+ 6.87%
B4)
Including：
Amount of guarantee for shareholders, actual controller and its
associated parties(C)
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of
the Company exceed 50%(E)
Total guarantee amount of the abovementioned
guarantees(C+D+E)
Explanations on possibly bearing joint and several liquidating
responsibilities for undue guarantees
Remarks on illegal providing of external guarantee
3.Entrusted capital management
□ Applicable√ Not applicable
4.Implementation of material contracts entered into during the normal operation
Naught
5.Other material contracts
√Applicable □ Not applicable
(1) Wuhu Dongxu Optoelectronics Co., Ltd., a wholly-owned subsidiary of the company, is mainly engaged in the production and
sales of the flat panel display glass substrate. For the effective solution to the horizontal competition between the company and the
affiliated party, and after examined and approved by the 18th Meeting of the 6th Board of Directors of the Company and 2012 First
Extraordinary Shareholders General Meeting, the company has respectively signed the "Entrustment Operation and Management
Agreement" with the shareholders of Shijiazhuang Xuxin Photoelectric Technology Co., Ltd., Dongxu (Yingkou) Optoelectronic
Display Co., Ltd., Sichuan Xuhong Optoelectronic Technology Co., Ltd. and Zhengzhou Xufei Optoelectronic Technology Co., Ltd..
Also, the company shall exclusively conduct the operation, management, supervision and direction to above four companies, and
27
shall have full discretion and control of all matters of the operation and management for above four companies.
(2) After examined and approved by the 18th Meeting of the Sixth Board of Directors of the Company and 2012 First Provisional
Shareholders General Meeting, the company has signed the "Patent Licensing Contract" with Dongxu Group, who shall license the
company and the subsidiaries of the company to use the rights of its owning 30 patents related to TFT-LCD glass substrate
production and other balance of 12 patents related to TFT-LCD glass substrate production in the licensing period, and the use charge
of patent licensing is zero.
（XI）Statement on issuing of company bonds
□ Applicable√ Not applicable
(XII)Fulfilling of commitments
1.Commitment made by the PLC, Its directors, supervisors, executives, and shareholders with 5% over shares of
the Company , and its substantial dominator in the report term or carried over to the report term :
√Applicable □ Not applicable
Commitme Commitm Implement
Commitments Accepter Content
nt date ent term ation
If Shijiazhuang Baoshi Electronic Group Co., Ltd.plans
to sell tradable stocks of Shijiazhuang Baoshi Electronic
Glass Company Limited through the bid trading system
Shijiazhuang of Shenzhen Stock Exchange and sell greater than 5% of
Baoshi shares within six months after the first sales,
Perform
Share merger reform Electronic Shijiazhuang Baoshi Electronic Group Co., Ltd.will
strictly
Group Co., disclose the contents specified by the Form Guide to
Ltd. Prompt Announcement of Removing Restriction on
Sales of Non-tradable Stocks of Listed Companies
through the prompt announcement of disclosing sales of
listed companies.
Commitments in
report of acquisition
or equity change
Commitments in
assets replacement
1.From the date of commitment letter issued, except
Shijiazhuang Xuxin Optoelectronic Technology co.,
Ltd., this company and majority-owned subsidiaries do
not in any way, directly or indirectly, engaged in
business and gem shares and its subsidiaries are the
same, or similar, future gem shares and its subsidiaries
Shijiazhuang are not engaged in the same or similar businesses.
Baoshi
Commitments made 2.The company assurances against the use of Perform
Electronic April 2012
in issuing precious stones share any act prejudicial to the control strictly
Group Co.,
relationship of stones share interests and its
Ltd.
wholly-owned subsidiaries, holding, or causing Baoshi
shares and its wholly-owned subsidiaries, holding form
business competition decisions.
3. The company will not directly invest, purchase and
Baoshi shares identical or similar business enterprises
and projects.
28
4.If the assets owned by the company due to any
reason in the future competition with Baoshi shares, the
company (person) will take positive and effective
measures to give up such a competitive business.
5. If the company cause competition with Baoshi shares
and caused loss of gem shares, the company will assume
responsibility for all related.
6. Subject to securities regulation under the relevant
conditions, the company makes a commitment to inject
full ownership of Shijiazhuang Xuxin shares in Baoshi
Shares.
The Commitments will be effective during the company
is still the controlling shareholders of Baoshi Shares.
Other commitments
for medium and
small shareholders
Completed on time
√ Yes □No □Not applicable
or not
Detail reasons for
un-complement and
further plan
Whether made a
promise to horizontal
competition and √ Yes □No □Not applicable
related transactions
that resulted or not
Solution term
promised
Solution way
Complement station Perform strictly
2.Explanation on assets or projects that reached the original profit forecast as well as its reasons while the
reporting period still in forecast period, and there are profit forecast on assets or projects of the Company.
□ Applicable√ Not applicable
（XIII）Other misc. income subjects
Unit：RMB
Items Occurred current term Occurred in previous term
1．Gains(losses)from sellable financial assets 0.00 0.00
Less：Income tax influence of sellable financial assets 0.00 0.00
Net amount written into other gains and transferred into gain/loss in
0.00 0.00
previous terms
Subtotal 0.00 0.00
2．Shares in the other misc. income subjects in the investee on equity
0.00 0.00
basis
Less：income tax influence of shares in other gains of investees on 0.00 0.00
29
equity basis
Net amount written into other gains and transferred into gain/loss in
0.00 0.00
previous terms
Subtotal 0.00 0.00
3．Amount of gains(or losses) from cash flow hedge instrument 0.00 0.00
Less: Income tax influence of cash flow hedge instruments 0.00 0.00
Net amount written into other gains and transferred into gain/loss in
0.00 0.00
previous terms
Adjusted amount transferred to initial amount of the target project 0.00 0.00
Subtotal 0.00 0.00
4．Difference from translating of foreign currency financial statements 0.00 0.00
Less: Net amount of disposing overseas Business and transferred to
0.00 0.00
current gain/loss
Subtotal 0.00 0.00
5．Other 0.00 0.00
Less：Income tax influence by other accounted into other misc. incomes 0.00 0.00
Net amount accounted into other misc. income and transferred into
0.00 0.00
current gain/loss in previous terms
Subtotal 0.00 0.00
Total 0.00 0.00
（XIV）The registration form of acceptance of investigation, communication and interview in
the report period for future reference
Content of discussion and
Date Place Mode Type Visitor
materials provided
Zhongjin
Zhengzhou Xufei Understand the business
Company,
January 7, 2012 Optoelectronic Onsite investigation Institution of Dongxu Group and
Anxin
Technology Co., Ltd. Xufei Company
Securities
Zhengzhou Xufei Understand the business
Everbright
April 18, 2012 Optoelectronic Onsite investigation Institution of Dongxu Group and
Securities
Technology Co., Ltd. Xufei Company
Understand the glass
substrate production of
trustee and the litigation
April 27, 2012 Telephone Individual
progress between Dongxu
Group and American
Corning Company
Understand the production
June 26, 2012 Telephone Individual and operation of the
company
Understand the company's
June 26, 2012 Telephone Individual non-public issuance for A
shares
（XV）Engagement and removal of certified public accountants
30
If the Semi-annual Report is audited
□ Yes √ No □ Not applicable
Whether re-engaged the CPA or not
□ Yes □No√ Not applicable
（ XVI ） Punishment on the Company and/or the directors, supervisors, executives,
shareholders, substantial controller, and purchasers, and correcting of misbehaviors
□ Applicable√ Not applicable
（XVII）Other Material events
□ Applicable√ Not applicable
（XVIII）Material change in profit ability, asset, and credit situation of the guarantor of the
convertible bonds
（Only applies to listed company with corporate convertible bonds offered）
□ Applicable√ Not applicable
（XIX）Index for information disclosed
Name and layout of Website for publishing and searching
Matter Date of publishing
newspapers for publishing path
Announcement of the
China Securities Daily, Hong
resolutions of 17th Meeting of February 14, 2012 http://www.cninfo.com.cn2012-001
Kong Commercial Daily
the sixth Board of Directors
Announcement on the foreign
China Securities Daily, Hong
investment in the establishment February 14, 2012 http://www.cninfo.com.cn2012-002
Kong Commercial Daily
of a holding subsidiary
Announcement on the change
China Securities Daily, Hong
of 2011 annual report February 16, 2012 http://www.cninfo.com.cn2012-003
Kong Commercial Daily
disclosure date
Announcement of the
China Securities Daily, Hong
resolutions of 18th Meeting of February 28, 2012 http://www.cninfo.com.cn2012-004
Kong Commercial Daily
the sixth Board of Directors
Announcement of the 16th
China Securities Daily, Hong
Meeting of Sixth Supervisor February 28, 2012 http://www.cninfo.com.cn2012-005
Kong Commercial Daily
Committee
Announcement on the Related
China Securities Daily, Hong
transactions of entrusted February 28, 2012 http://www.cninfo.com.cn2012-006
Kong Commercial Daily
operation
Announcement on the affiliated China Securities Daily, Hong
February 28, 2012 http://www.cninfo.com.cn2012-007
transactions of patent licensing Kong Commercial Daily
Announcement on the Related
China Securities Daily, Hong
transactions of technical February 28, 2012 http://www.cninfo.com.cn2012-008
Kong Commercial Daily
services contracting
Notice of Holding the First
China Securities Daily, Hong
provisional Shareholders’ February 28, 2012 http://www.cninfo.com.cn2012-009
Kong Commercial Daily
General Meeting in 2012
Announcement of the
China Securities Daily, Hong February 29, 2012 http://www.cninfo.com.cn2012-010
resolutions of 19th Meeting of
31
the sixth Board of Directors Kong Commercial Daily
Announcement of the 17th
China Securities Daily, Hong
Meeting of Sixth Supervisor February 29, 2012 http://www.cninfo.com.cn2012-011
Kong Commercial Daily
Committee
Announcement on the
expectation of 2012 daily
China Securities Daily, Hong
Related transactions between February 29, 2012 http://www.cninfo.com.cn2012-012
Kong Commercial Daily
the company and its
wholly-owned subsidiary
Notice of Holding the
China Securities Daily, Hong
Shareholders’ General Meeting February 29, 2012 http://www.cninfo.com.cn2012-013
Kong Commercial Daily
in 2011
Announcement on the increase
China Securities Daily, Hong
of 2011 daily Related February 29, 2012 http://www.cninfo.com.cn2012-014
Kong Commercial Daily
transactions
2011 annual report of the
China Securities Daily, Hong
Company and its summary February 29, 2012 http://www.cninfo.com.cn2012-015
Kong Commercial Daily
(English Version)
Suggestive announcement of
Holding of 2011 the First China Securities Daily, Hong
March 7, 2012 http://www.cninfo.com.cn2012-016
provisional Shareholders’ Kong Commercial Daily
General Meeting
Announcement of the
China Securities Daily, Hong
resolutions of 20th Meeting of March 8, 2012 http://www.cninfo.com.cn2012-017
Kong Commercial Daily
the sixth Board of Directors
Correct Announcement of2011 China Securities Daily, Hong
March 13, 2012 http://www.cninfo.com.cn2012-018
annual report Kong Commercial Daily
Announcement of Resolutions
of the First Provisional China Securities Daily, Hong
March 15, 2012 http://www.cninfo.com.cn2012-019
Shareholders’ General meeting Kong Commercial Daily
in 2012
Announcement of the
China Securities Daily, Hong
replacement of supervisor of March 27, 2012 http://www.cninfo.com.cn2012-020
Kong Commercial Daily
the employee representative
Announcement of the
China Securities Daily, Hong
resolutions of 21st Meeting of March 29, 2012 http://www.cninfo.com.cn2012-021
Kong Commercial Daily
the sixth Board of Directors
Announcement on the ignition
of PDP glass substrate project I China Securities Daily, Hong
April 12, 2012 http://www.cninfo.com.cn2012-022
for the trustee of Xuhong Kong Commercial Daily
Optoelectronic
Forenotice of Earning’s for the China Securities Daily, Hong
April 12, 2012 http://www.cninfo.com.cn2012-023
first Quarterly of 2012 Kong Commercial Daily
Announcement of resignation
China Securities Daily, Hong
of Mr. Wang Lipeng as general April 18, 2012 http://www.cninfo.com.cn2012-024
Kong Commercial Daily
manager
Announcement of the
China Securities Daily, Hong
resolutions of 22nd Meeting of April 18, 2012 http://www.cninfo.com.cn2012-025
Kong Commercial Daily
the sixth Board of Directors
Full text and Abstract of the China Securities Daily, Hong
April 20,2012 http://www.cninfo.com.cn2012-026
First Quarterly Report 2012 Kong Commercial Daily
32
Announcement of Resolutions
China Securities Daily, Hong
of the Shareholders’ General April 27, 2012 http://www.cninfo.com.cn2012-027
Kong Commercial Daily
meeting in 2011
Notice of Online Briefing of China Securities Daily, Hong
May 18, 2012 http://www.cninfo.com.cn2012-028
Earnings Kong Commercial Daily
Announcement on the progress
China Securities Daily, Hong
of project for the trustee of June 9, 2012 http://www.cninfo.com.cn2012-029
Kong Commercial Daily
Xufei Optoelectronic
Announcement of the
China Securities Daily, Hong
resolutions of 24th Meeting of June 28, 2012 http://www.cninfo.com.cn2012-030
Kong Commercial Daily
the sixth Board of Directors
XIII. Financial Report
（I）Auditor's report
If the interim report is audited
□ Yes √ No □not applicable
（II）Financial statements
Consolidated or not：
√Yes □ No □not applicable
All figures in the financial statements are in RMB yuan except fro otherwise stated.
All figures in the Notes to the financial statements are in RMB yuan.
1. Consolidated Balance sheet
Prepared by: Shijiazhuang Baoshi Electronic Glass Co., Ltd.
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 50,749,160.02 15,847,225.73
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 1,295,624.00 450,000.00
Account receivable 267,904,035.44 12,293,588.86
Prepayments 52,532,923.09 5,672,207.76
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other account receivable 32,581,686.82 24,349,986.54
Repurchasing of financial
assets
33
Inventories 169,010,778.06 141,982,009.03
Non-current asset due in 1
year
Other current asset 58,438,446.68 58,153,190.35
Total of current assets 632,512,654.11 258,748,208.27
Non-current assets：
Loans and payment on
other’s behalf disbursed
Disposable financial asset
Expired investment in
0.00 0.00
possess
Long-term receivable
Long term share equity
150,000.00 150,000.00
investment
Property investment 16,024,060.77 17,817,841.32
Fixed assets 50,716,829.25 52,896,805.40
Construction in progress 52,857,817.10 22,302,509.06
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 58,878,552.51 11,498,305.96
R & D petrol 2,772,452.36
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset 10,698,421.29 10,698,421.29
Other non-current asset 0.00 0.00
Total of non-current assets 192,098,133.28 115,363,883.03
Total of assets 824,610,787.39 374,112,091.30
Current liabilities
Short-term loans 160,000,000.00 0.00
Loan from Central Bank
Deposit received and hold for
others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 116,137,180.78 13,442,371.13
Advance payment 29,891,828.79 1,060,332.76
Selling of repurchased
financial assets
Fees and commissions
receivable
34
Employees’ wage payable 9,391,032.26 4,269,284.78
Tax payable 19,611,253.20 804,265.53
Interest payable 667,083.11 0.00
Dividend payable 0.00 0.00
Other account payable 40,585,070.48 31,601,289.10
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1
year
Other current liability 63,009,000.00 63,009,000.00
Total of current liability 439,292,448.62 114,186,543.30
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable 0.00 0.00
Expected liabilities
Differed income tax liability
Other non-current liabilities 33,764,000.00 105,000.00
Differed income 33,764,000.00 105,000.00
Total of liability 473,056,448.62 114,291,543.30
Owners’ equity
Share capital 383,000,000.00 383,000,000.00
Capital reserves 387,380,227.13 387,380,227.13
Less：Shares in stock
Special reserves
Surplus reserves 36,523,881.05 27,454,788.05
Common risk provision
Undistributed profit -533,249,748.11 -565,356,251.87
Different of foreign currency
translation
Total of owner’s equity belong to
273,654,360.07 232,478,763.31
the parent company
Minority shareholders’ equity 77,899,978.70 27,341,784.69
Total of owners’ equity 351,554,338.77 259,820,548.00
Total of liabilities and owners’
824,610,787.39 374,112,091.30
equity
2. Balance sheet of the Parent Company
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
35
Monetary fund 13,027,879.93 2,267,777.81
Trading financial assets
Bill receivable 1,295,624.00 450,000.00
Account receivable 11,207,603.09 10,244,977.45
Prepayments 7,061,679.68 3,397,641.09
Interest receivable
Dividend receivable
Other account receivable 78,877,896.33 20,745,751.98
Inventories 89,382,598.99 140,601,359.82
Non-current asset due in 1
year
Other current asset 153,190.35
Total of current assets 200,853,282.02 177,860,698.50
Non-current assets：
Disposable financial asset
Expired investment in
possess
Long-term receivable
Long term share equity
82,544,306.96 79,419,306.96
investment
Property investment 7,188,745.00 8,660,614.54
Fixed assets 30,509,275.02 32,773,520.42
Construction in progress 23,096,922.36 21,561,509.06
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 11,335,524.10 11,498,305.96
R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset 10,698,421.29 10,698,421.29
Other non-current asset
Total of non-current assets 165,373,194.73 164,611,678.23
Total of assets 366,226,476.75 342,472,376.73
Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable 16,563,592.58 16,470,725.61
Advance payment 29,889,803.79 1,025,332.76
Employees’ wage payable 3,897,163.84 4,229,855.72
36
Tax payable -4,469,668.25 1,139,016.69
Interest payable
Dividend payable
Other account payable 104,876,530.26 106,445,047.72
Non-current liability due in 1
year
Other current liability
Total of current liability 150,757,422.22 129,309,978.50
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability
Other non-current liabilities 95,000.00 105,000.00
Total of Non-current liabilities 95,000.00 105,000.00
Total of liability 150,852,422.22 129,414,978.50
Owners’ equity
Share capital 383,000,000.00 383,000,000.00
Capital reserves 358,047,576.01 358,047,576.01
Less：Shares in stock
Special reserves
Surplus reserves 32,204,150.60 32,204,150.60
Commonly risk Reserves
Undistributed profit -557,877,672.08 -560,194,328.38
Different of foreign currency
translation
Total of owners’ equity 215,374,054.53 213,057,398.23
Total of liabilities and owners’
366,226,476.75 342,472,376.73
equity
3. Consolidated Profit statement
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 361,355,746.17 26,820,188.44
Incl：Business income 361,355,746.17 26,820,188.44
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 239,261,213.61 36,796,589.49
Incl：Business cost 193,280,345.36 29,645,303.24
Interest expense
37
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 12,812,567.72 420,016.01
Sales expense 1,370,322.96 359,099.05
Administrative expense 33,495,079.80 6,344,180.44
Financial expenses -507,812.81 27,990.75
Asset impairment loss -249,987.09 0.00
Add：Gains from change of
0.00 0.00
fir value （“-”for loss）
Investment gain（“-”for loss） 0.00 0.00
Incl: investment gains from
affiliates
Gains from currency
exchange（“-”for loss）
III. Operational profit（“-”for
121,155,230.23 -9,976,401.05
loss
Add：Non-business income 319,150.96 48,504.90
Less：Non business expenses 18,100.00 118,402.41
Incl：Loss from disposal of
non-current assets
IV.Total profit(“-”for loss) 121,456,281.19 -10,046,298.56
Less：Income tax expenses 31,597,490.41 61,049.68
V. Net profit（“-”for net loss 89,858,790.78 -10,107,348.24
Including: Net profit realized by
the entity taken over before the
takeover
Net profit attributable to the
41,175,784.18 -9,850,826.53
owners of parent company
Minority shareholders’
48,683,006.60 -256,521.71
equity
VI. Earnings per share： -- --
（I）Basic earnings per share 0.11 -0.03
(II)Diluted earnings per share 0.11 -0.03
VII. Other comprehensive income 0.00 0.00
VIII. Total comprehensive income 89,858,790.78 -10,107,348.24
Total comprehensive income
attributable to the owner of the 41,175,784.18 -9,850,826.53
parent company
Total comprehensive income
48,683,006.60 -256,521.71
attributable minority shareholders
38
Enterprise combination under same controlling at the end of current period. the net profit for the enterprise to be
combined is 0.00.
4. Profit statement of the Parent Company
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 80,698,882.01 22,712,994.72
Incl：Business cost 66,638,502.22 26,538,225.06
Business tax and surcharge 2,122,252.81 317,858.18
Sales expense 192,738.39 359,009.05
Administrative expense 10,000,556.78 4,504,841.90
Financial expenses -22,552.60 37,734.99
Asset impairment loss -249,987.09 0.00
Add：Gains from change of
0.00 0.00
fir value （“-”for loss）
Investment gain（“-”for loss） 0.00 0.00
Incl: investment gains from
affiliates
II. Operational profit（“-”for
2,017,371.50 -9,044,764.46
loss
Add：Non-business income 299,284.80 48,504.90
Less：Non business expenses 0.00 118,401.94
Incl：Loss from disposal of
0.00 0.00
non-current assets
III.Total profit(“-”for loss) 2,316,656.30 -9,114,661.50
Less：Income tax expenses 0.00 0.00
IV. Net profit（“-”for net loss） 2,316,656.30 -9,114,661.50
V. Earnings per share： -- --
（I）Basic earnings per share 0.006 -0.02
(II)Diluted earnings per share 0.006 -0.02
VI. Other comprehensive income
VII. Total comprehensive income 2,316,656.30 -9,114,661.50
5. Consolidated Cash flow statement
Unit ：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
223,903,219.77 57,809,281.13
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
39
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 27,490.84
Other cash received from
48,170,659.89 2,654,623.12
business operation
Sub-total of cash inflow 272,073,879.66 60,491,395.09
Cash paid for purchasing of
189,589,601.67 53,540,762.12
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
36,392,442.47 8,084,676.84
staffs
Taxes paid 39,913,882.10 4,841,276.61
Other cash paid for business
54,093,674.10 3,312,984.68
activities
Sub-total of cash outflow
319,989,600.34 69,779,700.25
from business activities
Cash flow generated by business
-47,915,720.68 -9,288,305.16
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment
gains
Net cash retrieved from
disposal of fixed assets, intangible
assets, and other long-term assets
Net cash received from disposal
40
of subsidiaries or other
operational units
Net cash received from disposal
of subsidiaries or other 33,669,000.00 0.00
operational units
Sub-total of cash inflow due to
33,669,000.00 0.00
investment activities
Cash paid for construction of
fixed assets, intangible assets and 112,383,100.90 50,610.69
other long-term assets
Cash paid as investment 0.00
Net increase of loan against
pledge
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
0.00 0.00
activities
Sub-total of cash outflow
112,383,100.90 50,610.69
due to investment activities
Net cash flow generated by
-78,714,100.90 -50,610.69
investment
III.Cash flow generated by
financing
Cash received as investment 1,875,000.00 0.00
Incl: Cash received as
investment from minor
shareholders
Cash received as loans 160,553,289.20 0.00
Cash received from bond
placing
Other financing –related ash
0.00 0.00
received
Sub-total of cash inflow from
162,428,289.20 0.00
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
896,533.33 0.00
interests
Incl: Dividend and profit paid
by subsidiaries to minor
shareholders
Other cash paid for financing
0.00 0.00
activities
Sub-total of cash outflow due
896,533.33 0.00
to financing activities
Net cash flow generated by
161,531,755.87 0.00
financing
IV. Influence of exchange rate
alternation on cash and cash
41
equivalents
V.Net increase of cash and cash
34,901,934.29 -9,338,915.85
equivalents
Add: balance of cash and cash
equivalents at the beginning of 15,847,225.73 10,211,579.96
term
VI.Balance of cash and cash
50,749,160.02 872,664.11
equivalents at the end of term
6. Cash flow statement of the Parent Company
Unit：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
120,113,141.94 54,192,296.48
rending of services
Tax returned 27,490.84
Other cash received from
299,284.80 449,725.91
business operation
Sub-total of cash inflow 120,412,426.74 54,669,513.23
Cash paid for purchasing of
20,439,083.17 48,474,050.34
merchandise and services
Cash paid to staffs or paid for
7,636,254.05 7,922,576.68
staffs
Taxes paid 19,869,861.90 2,516,544.85
Other cash paid for business
56,397,688.14 734,936.62
activities
Sub-total of cash outflow
104,342,887.26 59,648,108.49
from business activities
Cash flow generated by business
16,069,539.48 -4,978,595.26
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment
gains
Net cash retrieved from
disposal of fixed assets, intangible
assets, and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Other cash receivable for
investment activities
Sub-total of cash inflow due to
investment activities
Cash paid for construction of
fixed assets, intangible assets and 2,184,437.36
other long-term assets
42
Cash paid as investment 3,125,000.00
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
activities
Sub-total of cash outflow
5,309,437.36
due to investment activities
Net cash flow generated by
-5,309,437.36
investment
III.Cash flow generated by
financing
Cash received from capital
contributions
Cash received as loans
Cash received from bond
placing
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing
activities
Sub-total of cash outflow due
0.00 0.00
to financing activities
Net cash flow generated by
0.00 0.00
financing
IV. Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash
10,760,102.12 -4,978,595.26
equivalents
Add: balance of cash and cash
equivalents at the beginning of 2,267,777.81 5,070,664.29
term
VI.Balance of cash and cash
13,027,879.93 92,069.03
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Report period
Unit：RMB
Report period
Owner’s equity Attributable to the Parent Company Minor
Items Total of
sharehol
Share Capital Less: Special Surplu Comm Attribu ders’
owners’
Other
Capital reserve Shares ized s on risk
table equity
equity
in reserve provisi
43
s stock reserve s on profit
383,000 387,380, 27,454, -565,35 27,341,78 259,820,54
I.Balance at the end of last year
,000.00 227.13 788.05 6,251.87 4.69 8.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 383,000 387,380, 27,454, -565,35 27,341,78 259,820,54
current year ,000.00 227.13 788.05 6,251.87 4.69 8.00
9,069,0 32,106,5 50,558,19 91,733,790
III.Changed in the current year
93.00 03.76 4.01 .77
32,106,5 50,558,19 82,664,697
（I） Net profit
03.76 4.01 .77
9,069,0 9,069,093.
（II）Other misc.income
93.00 00
9,069,0 32,106,5 50,558,19 91,733,790
Total of (I) and (II)
93.00 03.76 4.01 .77
(III) Investment or decreasing
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 383,000 387,380, 36,523, -533,24 77,899,97 351,554,33
term ,000.00 227.13 881.05 9,748.11 8.70 8.77
Amount of the previous term
44
Unit:RMB
Amount of the previous term
Owner’s equity Attributable to the Parent Company
Minor
Items Less: Surplu Comm Total of
Capital Special Attribu sharehol
Share Shares s on risk owners’
reserve ized table Other ders’ equity
Capital in reserve provisi equity
s reserve profit
stock s on
383,000 387,380, 27,454, -577,20 17,876,53 238,504,94
I.Balance at the end of last year
,000.00 227.13 788.05 6,604.52 4.09 4.75
Add：Retrospective adjustment
caused by merger of entities
under common control
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 383,000 387,380, 27,454, -577,20 17,876,53 238,504,94
current year ,000.00 227.13 788.05 6,604.52 4.09 4.75
11,850,3 9,465,250 21,315,603
III.Changed in the current year
52.65 .60 .25
11,850,3 285,250.6 12,135,603
（I） Net profit
52.65 0 .25
（II）Other misc.income
11,850,3 285,250.6 12,135,603
Total of (I) and (II)
52.65 0 .25
(III) Investment or decreasing 9,180,000 9,180,000.
of capital by owners .00 00
9,180,000 9,180,000.
1. Capital inputted by owners
.00 00
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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.
45
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 383,000 387,380, 27,454, -565,35 27,341,78 259,820,54
term ,000.00 227.13 788.05 6,251.87 4.69 8.00
8. Statement of change in owner’s Equity of the Parent Company
Amount of the Current term
Unit：RMB
Amount of the Current term
Items Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners’
Capital reserves reserves ble profit
stock reserve provision equity
383,000,00 358,047,57 32,204,150 -560,194,3 213,057,39
I.Balance at the end of last year
0.00 6.01 .60 28.38 8.23
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 383,000,00 358,047,57 32,204,150 -560,194,3 213,057,39
current year 0.00 6.01 .60 28.38 8.23
2,316,656. 2,316,656.
III.Changed in the current year
30 30
2,316,656. 2,316,656.
（I） Net profit
30 30
（II）Other misc.income
2,316,656. 2,316,656.
Total of (I) and (II)
30 30
(III) Investment or decreasing of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
46
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 383,000,00 358,047,57 32,204,150 -557,877,6 215,374,05
term 0.00 6.01 .60 72.08 4.53
Amount of the previous term
Unit：RMB
Amount of the previous term
Items Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners’
Capital reserves reserves ble profit
stock reserve provision equity
383,000,00 355,857,85 32,204,150 -569,564,1 203,687,58
I.Balance at the end of last year
0.00 1.87 .60 40.75 5.86
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 383,000,00 355,857,85 32,204,150 -569,564,1 203,687,58
current year 0.00 1.87 .60 40.75 5.86
2,189,724. 9,369,812. 9,369,812.
III.Changed in the current year
14 37 37
2,189,724. 9,369,812. 9,369,812.
（I） Net profit
14 37 37
（II）Other misc.income
2,189,724. 9,369,812. 9,369,812.
Total of (I) and (II)
14 37 37
(III) Investment or decreasing of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
47
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 383,000,00 358,047,57 32,204,150 -560,194,3 213,057,39
term 0.00 6.01 .60 28.38 8.23
(III).Brief introduction of the Company：
Shijiazhuang Baoshi Electronic Glass Co., Ltd.(Hereinafter referred to as “ The Company”)is a company listed with Shenzhen stock
Exchange which issued domestically listed ordinary shares (A shares) and domestically listed foreign-capital shares (B shares). The
approved business scope of the Company is the manufacturing and sales of kinescope bulb and kinescope for black-and –white TV.
Due to the abrupt change of domestic TV market in 1997, the Company’s production line producing kinescope bulb and kinescope
for black –and-white TV stopped production from June 1997. The Company held provisional general meeting on March 30, 2000.
The meeting passed the resolution for selling this production line to its controlling shareholder Shijiazhuang Baoshi Electronic Group
Co., Ltd.(the Controlling Co.) to exchange it for the component factory of the Controlling Co. engaged in the production of
kinescope part of color TV.
The Sixth of the fifth board of directors meeting examined and adopted the proposal of investing and establishing wholly-owned
subsidiaries company in august, 2010. In November, 2010, The company invested RMB 800 millions to establish wholly-owned
subsidiary company Hebei Xubao Construction Installation Co., Ltd. The contents of the company are: Building Design,
Construction, Engineering Consulting, Construction of anti-corrosion insulation, Construction of Urban Road Lighting, Indoor and
Outdoor Decoration, Fire Protection Construction, Air Conditioning Installation, Building Intellectualization Project, Landscape
Construction. Mechanical and Electrical Equipment, Pipeline(except for pressure pipeline) Installation, Electric Instrument
Installation, Construction Materials(except for wood), Mechanical and Electrical Products, Electronic components and spare parts
sales, Domestic services(except for the professional intermediaries), House Leasing.(the matters that laws, regulations, and the State
Council decided to ban or limit should not operate, the matters that waiting for other departments to approve, Can operate after being
approved).
Under the support of Shijiazhuang government, Dongxu Group Co., Ltd. acquired 22.94% state-owned equity of Shijiazhuang
Baoshi Electronic Group Co., Ltd. in 2011 after acquisition of 47.06% state-owned equity thereof and thus held Shijiazhuang Baoshi
Electronic Group Co., Ltd. and became the indirect controller of the company
Dongxu Group Co., Ltd. supported the Company to actively develop equipment manufacturing and transferred the processing and
manufacturing and partial installation of key parts of complete set of glass equipment for liquid crystal display, i.e., A-frames and
overflowing bricks to the Company in 2011.
After examination and adoption by the 14th meeting of the sixth board of directors of the Company, the Company established Wuhu
Dongxu Optoelectronic Equipment Technology Co., Ltd. jointly with Dongxu Group Co., Ltd. in December 2011. Its registered
capital is RMB 10 million. The Company contributed capital of RMB 5.1 million, which accounts for 51% of registered capital.
Dongxu Group Co., Ltd. contributed capital of RMB 4.9 million, which accounts for 49% of registered capital. The meeting
examined and adopted the establishment of a wholly-owned subsidiary called Wuhu Dongxu Optoelectronic Technology Co., Ltd.
48
with registered capital of RMB 5 million. The Company holds 100% equity of this company. After examination and adoption by the
15th meeting of the sixth board of directors of the Company, Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd., a
controlled subsidiary of the Company, established Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. jointly with
Dongxu Group Co., Ltd. Its registered capital is RMB 10 million. Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd.
contributed capital of RMB 5.1 million, which accounts for 51% of registered capital. Dongxu Group Co., Ltd. contributed capital of
RMB 4.9 million, which accounts for 49% of registered capital. After examination and adoption by the 17th meeting of the sixth
board of directors of the Company, the Company established Wuhu Dongxu Optoelectronic Technology Co., Ltd. jointly with Hubei
Technology Investment Group Co., Ltd., Its registered capital is RMB 5 million. The Company contributed capital of RMB3.125
million, which accounts for 62.5% of registered capital. Hubei Technology Investment Group Co., Ltd. contributed capital of RMB
1.875 million, which accounts for 37.5% of registered capital.
As of June 30, 2012, The company has set up the wholly-owned subsidiary of Hebei Xubao Construction Installation Engineering
Co., Ltd. and Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd. the controlling Subsidiary of Shijiazhuang Baoshi
Colour Bulb Co., Ltd.,Wuhu Dongxu Optoelectronic Equipment & Technology Co., Ltd.and Wuhan Dongxu Optoelectronic
Technology Co., Ltd. and a grandson company Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. and
Components Shop, Machine Repair Shop, Tools and Moulds Shop, Electronic Equipment Department, Second Stage of Bulb Shop.
Registration No. of Business License: 130000000001040, Legal Representative: Li Zhaoting, Address: No.9, Huanghe Road,
Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province, Business scope: production and sales of electric
vacuum glass components and supporting electronic components; export of self-produced goods of the Company, and import of
mechanical equipment, spare parts, and raw and auxiliary materials needed by the Company (other than goods and technologies that
are limited to operate or prohibited to import and export by China); production and sales of hydrogen, oxygen, and nitrogen,
construction and operation related to the industry of glass substrate for optoelectronic display and Technology development ,
technology consultation, technology services and technology transfer.
（IV）Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
The Company’s financial statement is prepared on the basis of sustainable operation, and recognized and measured based on
transactions and events that actually occur and in accordance with provisions of the Accounting Standards of Business Enterprises
and its application guidelines issued by the Ministry of Finance on February 15, 2006.
2.Complying with the statements in Accounting Standards for Business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting standards in line with
of system, and have truly and completely reflected of the financial status, operational results, cash flow, and other relevant
information.
3.Accounting year: from January 1 to December 31 as one accounting year.
4.Standard currency for bookkeeping：The Company takes RMB as the standard currency for bookkeeping.
Standard Currency for bookkeeping of overseas subsidiaries
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control
The Company’s assets and liabilities obtained from the enterprise merger are measured according to the book value of the
merged party on the date of merger. The balance between the book value of net assets and the merger consideration price paid (or an
aggregate of par value amount of issued shares) is used to adjust the capital reserve. Where the capital reserve is insufficient to
deduct, adjust the retained earnings. Costs directly related to the merger of the merger party are recorded to the current profit and loss.
For the merger of majority interests, assets and liabilities of the merger party are measured in the consolidated balance sheet
according to their book values.
49
（2）Enterprise merger under different control：
The merger cost is the fair value of the paid assets, occurred or incurred liabilities, and issued equity securities which are used to
obtain the control right over the merged party on the date of purchase. For enterprise merger achieved through multiple exchanges
and transactions, the merger cost is the sum of all costs of each individual transaction. Costs directly related to the merger of the
merger party are recorded to to the current profit and loss.
① For mergers, the balance of the merger cost over the obtained recognizable net assets and fair value quota of the merged
party during the merger is recognized as goodwill. The balance of the merger cost smaller than the obtained recognizable net assets
and fair value quota of the merged party during the merger is recorded to the current profit and loss.
② For the merger of majority interests, the recognizable assets and liabilities of the merged party are listed in the consolidated
balance sheet according to the fair value determined in the merger. The balance of the merger cost over the obtained recognizable net
assets and fair value quota of the merged party during the merger is recognized as goodwill in the consolidated balance sheet on the
date of purchase. The balance of the merger cost smaller than the obtained recognizable net assets and fair value quota of liabilities of
the merged party during the merger is recorded to the current profit and loss.
6. Methods for compilation of consolidated financial statements
(1). Principles to determine the scope of merger:
The Company compiles consolidated accounting statements according to the provisions of Accounting Standards of Business
Enterprises No. 33 – Consolidated Financial Statement stipulated by the Ministry of Finance.
The Company begins to merge the revenues, costs, and profits of the corresponding period from the date when the Company
obtains the actual control right over the subsidiary, and stops to merge the revenues, costs, and profits of the corresponding period
from the date when the Company loses the actual control right over the subsidiary. All major balances, transactions and unrealized
profits in the Group have been offset during the compiling of consolidated accounting statements.
The owner’s interests of subsidiaries that are incorporated in the merger and that do not belong to the Group are listed in the
minority interests under the subject of owner’s interests of the consolidated balance sheet. The net profit and loss of the current
period that belong to minority interests are listed in the minority profit and loss under the net profit subject of the consolidated
income statement.
（2）Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold and purchased in
successively two years.
Naught.
7.Cash and cash equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for payment at any
time. Cash equivalent refers to the investments with holding period of less than three months that are readily
convertible to known amount of cash and subject to insignificant risk of changes in value.
8.Foreign currency translation
（1）Foreign currency Transactions
Transactions denominated in foreign currencies are translated of into RMB at the applicable basic rates of exchange quoted by
the People’s Bank of China ( “PBOC”) prevailing at the dates of the transaction.
（2）Foreign currency statement Convert
On the balance sheet day, foreign currency monetary item shall be converted at the benchmark exchange rate on the balance
sheet day. The exchange difference resulting from difference between spot exchange rate and that recognized initially or the
benchmark exchange rate on the prior balance sheet day shall be calculated into the profit and loss of current period; foreign currency
non-monetary item measured by historical cost shall still be converted at the spot exchange rate on the transaction day and the
recording currency sum shall not changed. The exchange difference resulting from foreign currency loan related to qualified assets
under acquisition, construction and production shall be handled by the principle of borrowing costs capitalization.
9. Financial instruments
A financial instrument refers to a contract that forms the financial assets of an enterprise and forms the financial liabilities or
equity instruments of other enterprises. When a company becomes a party of a financial instrument contract, a financial asset or
liability is recognized
.(1) Classification of financial assets:
Financial assets are classified into four categories during the initial recognition: (1) financial assets that are measured by their fair
values and whose changes are recorded in the current profit and loss, including tradable financial assets and financial assets that are
specified to be measured by their fair values and whose changes are recorded in the current profit and loss; (2) held-to-maturity
investments; (3) loans and accounts receivable; (4) financial assets available for sale. Financial liabilities are classified into two
categories during the initial recognition: (1) financial liabilities that are measured by their fair values and whose changes are recorded
50
in the current profit and loss, including tradable financial liabilities and financial liabilities that are specified to be measured by their
fair values and whose changes are recorded in the current profit and loss; (2) other financial liabilities.
(2) Measurement of financial assets
The Company measures financial assets by their fair values during the initial recognition. During the subsequent measurements, the
measurement methods vary with assets.
(1) For financial assets that are measured by their fair values and whose changes are recorded in the current profit and loss, the
initial amount are recognized by their fair values at the time of obtainment and the related transaction costs are recorded into the
profit or loss of the current period. The paid cash dividends or bond interests included in the payment are separately recognized as
accounts receivable. Interests or cash dividends obtained during the holding period are recognized as investment revenues. The gain
or loss that is measured by the fair value on the date of balance sheet and is formed by the changes of the fair value is recorded into
the profit or loss of the current period. During the disposal of financial assets, the balance between the fair value and the initial
recorded amount is recognized as investment revenues. At the same time, the changed profit and loss of the fair value are adjusted.
(2) For the held-to-maturity investments of the Company, the sum of fair values of financial assets at the time of obtainment and
the related transaction fees are recognized as the initial recognition amount. Where the paid bond interests are included in the
payment, the paid bond interests are separately recognized as accounts receivable. During the holding period, the interest income is
calculated and recognized according to the actual interest rate and amortized cost, and recorded into the investment revenue. During
the disposal of financial assets, the balance between the price at the time of obtainment and the book value is recognized as the
investment revenue.
(3) For accounts receivable generated by selling goods or providing services, the initial amount is recognized by the price
stipulated in the contract or agreement. During the holding period, the subsequent measurement is conducted based on the amortized
cost and actual interest rate method. During the collection and disposal of accounts receivable, the balance between the price at the
time of obtainment and the book value is recorded into the current profit and loss.
(4) For financial assets available for sale, the sum of fair values of financial assets at the time of obtainment and the related
transaction fees are recognized as the initial recognition amount. Where the paid bond interests or cash dividends are included in the
payment, the paid bond interests or cash dividends are separately recognized as accounts receivable. Interests or cash dividends
obtained during the holding period are recognized as investment revenues. The gain or loss that is measured by the fair value on the
date of balance sheet and is formed by the changes of the fair value is directly recorded into the capital reserve. During the
disposal of financial assets, the balance between the price at the time of obtainment and the book value is recognized as the
investment revenue. At the same time, the changes of the fair value that is originally recorded into the capital reserve are carried
forward to the investment revenue.
Financial assets that are measured by their fair values and whose changes are recorded in the current profit and loss are
recognized by their fair values at the time of obtainment and the related transaction fees are directly recorded into the profit or loss of
the current period. During the holding period, the subsequent measurement is conducted based on the fair value. For other financial
liabilities, the initial amount is recognized by the sum of their fair values at the time of obtainment and related transaction fees.
During the holding period, the measurement is conducted based on the amortized cost and actual interest rate method.
（3）Recognition basis and measurement for transferred financial assets
Recognition of the transfer of financial assets:
In the following situations, the Company recognizes the transfer of financial assets and terminates the recognition of financial
assets when the Company transfers almost all the risks and rewards of the ownership of financial assets to the transferee.
① The Company sells financial assets by means of non-recourse.
②The Company sells financial assets and enters into an agreement with the buyer at the same time, which stipulates that the
Company will repurchase the financial assets at their fair values on the date when the prescribed term ends.
③The Company sells financial assets and enters into an agreement of put option with the buyer at the same time. The put option
is a material out-of-the-money option from the contract terms.
Measurement of the transfer of financial assets：
When financial assets are transferred overall, the balance of the book value of the transferred financial assets over the received
consideration price and accumulated fair value changes that are originally and directly recorded to the owner’s equity is recognized
and recorded into the current profit and loss.
When financial assets are transferred partly, the overall book value of the transferred financial assets, between the derecognized
part of and the non-derecognized part, is apportioned according to their relative fair values respectively, and according to the book
value of the derecognized part and the received consideration of the derecognized part and the corresponding derecognition sum in
the accumulated fair value alteration amount that is directly included into the owner’s rights and interests originally, it should be
recognized after apportionment to this accumulated amount according to the relative fair value of the derecognized part in the
financial assets.
（4）Condition of terminating the recognition of financial liabilities
Only if the existing obligations of financial liabilities have been removed wholly or partly, the financial liabilities can be
terminated to recognize wholly or partly.
（5）Determination of fair values of financial assets and financial liabilities
51
If there’s an active market for financial assets or liabilities, the fair value is recognized by the quotation in the active market. If
there’s no an active market for financial assets or liabilities, the fair value is recognized by the evaluation. For initially obtained or
originative financial assets or undertaken financial liabilities, the fair value is recognized based on the market transaction price.
Where the fair value of financial instruments is recognized by the future cash flow discount method, the discount rate is the market
yield rate of other financial instruments that are substantially same in contract terms and features. Where the short-term accounts
receivable whose interest rate is not indicated and the balance between the present value of accounts payable and the actual
transaction price is small, the measurement is conducted based on the actual transaction price.
（6）Providing of impairment provision on financial assets (exclude receivable accounts)
On the date of the balance sheet, the Company checks the book value of financial assets other than the financial assets that are
measured by their fair values and whose changes are recorded in the current profit and loss. Where there is an objective evidence to
indicate that the financial assets are impaired, the impairment provision is accrued. Financial assets whose single amount is great are
conducted with an impairment test separately. Financial assets whose single amount is not great can be conducted with an impairment
test either separately or jointly in financial asset portfolios with the feature of credit risks.
For loans, accounts receivable, and held-to-maturity investments, the impairment provision is accrued based on the balance
between the present value and the book value of the estimated future cash flow. If there is an objective evidence to indicate that the
value has been restored after the accrual, the previously-recognized impairment loss can be recovered and recorded into the current
profit and loss.
If an impairment occurs to financial assets available for sale, even if this financial asset is not derecognized, the accumulated
losses that are caused by the reduced fair value and that are originally and directly recorded in the owner’s interests should be
transferred out and recorded into the current profit and loss, Among which, for the debt instrument available for sale, if the fair value
increases subsequently, the original impairment provision can be recovered and recorded into the current profit and loss. For the
equity instrument available for sale, the impairment provision shall not be recovered through the profit or loss.
（7）If investment held to mature is recztegorized to sellable financial assets, please state the intention or
evidence of change incapability
Main judgment basis of the re-classification of the undue long-term investment as financial assets available for sale.：
①For there are no financial resources available for the continual capital support for the financial assets, the financial assets has
to be due;
②There is no intention for holding due in the management；
③Due to the restrictions of the law and the executive rules, or other reasons, it is impossible for holding the financial assets due;
④And Other indications to the Company’s incapability for holding due.
The re-classification of the undue long-term investment as financial assets available for sale may be decided by the approval of
the Board of Directors.
10. Recognition standard and providing basis of bad debt provision on receivable accounts
（1）Accounts receivable with material specific amount and specific provisioned bad debt preparation.
Judgment criteria or amount
Accounts receivable whose balance ranks the top five or whose amount of receivables accounts
standard of material specific amount
for over 10% of total accounts receivable.
or amount criteria
Provision method with material The Company conducts a separate impairment test on accounts receivable whose single amount is
specific amount and provision of great. Where there is an objective evidence to indicate that the impairment occurs, the impairment loss
specific bad debt preparation is recognized based on the balance of the present value smaller than the book value of the future cash
flow, and the bad debt provision is accrued.
(2)The accounts receivable of bad debt provisions made by Group
Method for recognition
Name of impairment allowances by Basis of determination of groups
group
The company conducted an
impairment test on significant or The company conducted an impairment test on significant
insignificant receivables and set aside or insignificant receivables and set aside no bad debt provisions
Other
no bad debt provisions for those of for those of which there were no objective evidences indicating
which there were no objective impairment.
evidences indicating impairment.
Accounts on age basis in group
□ applicable √not applicable
52
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
√applicable □not applicable
Name Notes
Account receivable belong t individual
significance and non-material and individually The company conducted an impairment test on significant or insignificant
assessed for impairment receivables and set aside no bad debt provisions for those of which there
were no objective evidences indicating impairment.
（3）Account receivable with non-material specific amount but specific bad debt preparation
Reason of specific bad debt preparation provision：
Single receivables that the amount is not significant and appropriation of bad debt provisions by group cannot reflect their risk
characteristics .
Method of appropriation of bad debt provision
How much the present value of the future cash flows is lower than their book value.
11. Inventories
(1).Inventories class:
Inventories including raw materials, products in production, Low-value consumable goods, goods in stock, spare parts, are listed
depending on which is lower between cost and net value realizable.
（2）Pricing method of stock delivered
□ firs-in –first-out √ weighted average□ individual recognition □other
（3）Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.
For inventory at period end, accounts the inventory price falling reserve according to the difference between the cost of
individual inventory project and the net value realizable. For the inventories that have similar purposes and relate to the products in
the same region, and in fact, are difficult to distinguish the serial products from other items, collectively account the price falling
reserve; For inventories that have large quantity but low in price, account the price falling reserve according to stock categories. For
the net value realizable in accordance with the normal production process, determine the amount by the estimated stock price minus
the estimated cost, cost of sales and related taxes.
（4）Inventory system
√ Perpetual inventory □ Fixed date inventory □Other
（5）Amortization method of consumption goods with low value and wrap page
Consumption goods with low value
Consumption goods with low value adopt one time amortization method when used.
Packing
Wrap page：Wrap page adopts one time amortization when used
12.Long-term equity investment
（1）Initial measurement
(i)Long-term equity investment formed by Consolidation
For the corporate merger under the same control, the merging parties paying by cash, transfer of non-cash assets, or the means
of debt bearing as the merger price. The merger should be made in accordance with the combined book value of the owner's equity
share of the equity investment as a long-term investment in the initial cost, long-term equity investment initial investment costs the
cash payment, transfer of the non-cash assets and the assumption of debt by book value to the difference between the adjusted capital
surplus; for surplus less than the offset capital, adjusts the retained earnings; for the merging parties with the issuance of securities as
interest on the price of the merger, the merger should be made in accordance with the merging parties the rights of owners book value
of equity shares as a long-term investment in the initial cost of the investment. In accordance with the issued shares and total value of
equity, long-term equity investments and the cost of initial investment by issuing shares of a face value of the difference between the
53
amount should be adjusted capital surplus; for Less capital surplus, adjusts the retained earnings.
Combination of businesses not under common control shall have as the investment cost the fair value of the assets expended, the
liabilities incurred or assumed and the equity securities issued to acquire the control over the business on the purchase day. If the fair
value of the purchase cost is higher than that of the purchased part of the identifiable net assets in business combination, the
difference shall be seen as good will while if it is lower, the difference shall be recorded in the profit and loss of the period.
(ii) Besides the long-term equity investment obtained by the other way of the merger, determine the initial investment cost in
accordance with the following provisions:
For such combination by cash, the purchase price actually expended shall be taken as the investment cost; if by issuing equity
securities, it shall be the fair value of such securities; for the long-term equity investments by investors, the value set by the
investment contract or agreement shall be the investment cost unless the set value is not fair; for the long-term, essentially
commercial and fair value reliably measurable equity investments acquired by means of non-monetary assets exchange, the fair value
and the expended taxes shall be the investment cost and the difference between the book value of the expended assets and the fair
value shall be recorded in the profit and loss of the period; and for the long-term equity investments arising of debts restructuring, the
fair value shall be the investment cost and the difference between the fair value and the book value of the restructured debts shall be
recorded in the profit and loss of the period.
(2) Follow-up measurement:
(i)For the long-term equity investments that do not have joint control or significant influence on subsidiaries, have no market
quotations, the and the fair value can not be reliably measured, accounts by the cost method..
For the cash dividend or profit declared by the units invested, recognizes it as current investment income. Confirmation of
investment income is restricted to cumulative net profit of sub-quotas after units invested receiving the investments. For the part that
surpass the above amount, recovers it as the initial investment cost.
(ii) For the long-term equity investments that have joint control or significant influence on the units invested, accounts it by the
method of equity.
Upon the acquiring of the long-term equity investment, based on the fair assets value recognized by the units invested, confirm
the investment losses or gains and adjust the account value of long-term equity investment after adjusting the net losses and gains
achieved by the units invested. The owning part of the profit and cash dividends declared by the units invested, correspondingly
reduce the book value of the long-term equity investment. For the other changes in the rights of the owners apart from the net gains
and losses of the units invested, adjusts the book value of the long-term equity investments and recognizes it as capital surplus.
Adjust the book value of long-term equity investment and include it in owner's equity.
(3) Basis for confirming joint control and significant impact towards the invested unit
Joint control refers to the common control towards certain economic activity in accordance with agreement of contract. When
the outward investment of company conforms to the following situations, confirm the joint control towards the invested unit: ① any
joint operational party shall not separately control the production and operation activities of the joint enterprise; ② any strategic
decision related to the basic operation activity of the joint enterprise shall be agreed by all joint operational parties; ③ all joint
operational parties may appoint any of joint operational parties to manage the daily activities of the joint enterprise by contract or
agreement; nevertheless, the operational party shall exercise the right of management within the scope of financial and operational
policies that have been jointly approved by all joint operational parties.
When the company’s outward investment conforms to the following situations, confirm the significant impact towards the
invested unit: ① having representatives in such authority institution as the Board of Directors in the invested unit; ②
participating in the strategy formulation process of the invested unit, including formulation of dividend distribution policy; ③
occurring significant trade with the invested unit; ④ dispatching management staff to the invested unit; ⑤ providing key
technology materials to the invested unit. When the company directly holds more than 20% but less than 50% shares with right to
vote or by subsidiary, it is generally recognized to have significant impact on the invested unit.
(4)On the date of balance sheet, accounts it according to which is lower between the book value of long-term
equity investments and the amount recoverable, if the amount recoverable is lower than the book value, accounts
the assets devaluation preparations and confirms the devaluation losses.
The Company adopts the method of accounting long-term equity investment term by term, once the devaluation preparation is
confirmed, it shall not be converted back in the accounting period in the future.
For the long-term investments that have market price, judge and account the devaluation preparations according to the
following situations:
The market price lower than the book value in continuous two years;
The investment is suspended for one year or more;
The units invested have serious losses in that year;
The units invested have losses in continuous two years;
The units invested have rectification, liquidation and other signs of unsustainable business.
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For the long-term investments without market price, judge and account the devaluation preparations in accordance with the
following signs:
The changes in political or legal environment like the issuance or rectification of tax lows and trading lows that affect the
operation of the units invested, may result in the huge losses in the units invested.
The changes in market demands due to the goods or labor provided by the units invested are obsolete or due to consumers’
preferences change, resulted in serious influences in the financial situation in the units invested;
The production technologies in the industries of the units invested have significant changes, the units invested have lost their
competitive capacity, thus leading to serious financial situations, for example: rectification, liquidation etc;
The other situations that there is evidence to show the investment will not actually bring economic interests for the Group
Standards for fixed assets: the assets held for the purpose of goods production, labor providing, rent or management; the service
life more than one year; the tangible assets with high unit value.
13.Real estate investment
Investment real estate refers to the properties held for the purpose of generating rent and/or capital
appreciation. The company’s investment real estate includes the land use right rented and the constructions leased.
(1) Recognition of the investment real estate
The investment real estate shall be recognized unless it meets the following requirements simultaneously: ① The economic
benefits pertinent to the investment property are likely to flow into the enterprise; and ② The cost of the investment real estate can
be reliably measured.
(2) Initial measurement of the investment real estate
① The cost of an investment real estate by acquisition consists of the acquisition price, relevant taxes, and other expenses
directly relegated to the asset.
② The cost of a self-built investment real estate composes of the necessary expenses for building the asset to the hoped
condition for use.
③ The cost of an investment real estate obtained by other means shall be recognized in accordance with the relevant accounting
standards.
④ The follow-up expenses pertinent to an investment real estate, if they meet the recognition conditions of the investment
property, they shall be included in the cost of the investment real estate; otherwise, if they fail to meet the recognition conditions of
the investment property, they shall be included in the current profits and losses when they are incurred.
(3) Follow-up measurement of the investment real estate
The company makes a follow-up measurement to the investment real estate through the cost pattern on the date of the balance
sheet. According to the relevant provisions of the “Accounting Standards for Enterprises No.4 - Fixed Assets” and the “Accounting
Standards for Enterprises No.6 - Intangible Assets”, the actual amortization or depreciation is made for the investment real estate by
the straight-line method in the estimated useful life.
(4) Conversion of the investment real estate
The company has well-established evidence to indicate that the purpose of the real estate has changed, it shall convert the
investment real estate to other assets, or vise versa. And the book value of the real estate prior to the conversion shall be entry value
after conversion.
14.Fixed assets
（1）Confirmation conditions of fixed assets
(1) Economic benefits related to the fixed assets may flow to the enterprise;
(2) The cost of the fixed assets can be reliably measured.
Initial measurement of fixed assets: account the value of the fixed assets in accordance with the actual cost of construction &
purchase of them.
The follow-up expenditures related to fixed assets, for the ones that meet the conditions of fixed assets confirmation, should
be included in the cost of fixed assets; For the ones that do not meet the conditions of fixed assets recognition, should be included in
the current gains and losses. For the follow-up expenditures on fixed assets, should be included in the cost of fixed assets, and
should terminate the book value of fixed assets that was replaced.
The leased fixed assets of the company should be classified as a finance lease if it transfers substantially all the risks and
rewards incidental to the assets. For the fixed assets costs acquired under finance leases, the company takes less of the fair value of
the leased asset on the acquisition date and the present value of the minimum lease payments.
（3）Fixed assets depreciation method
The enterprise should account depreciation for all fixed Assets. But except the fixed assets that had accounted adequate
depreciation but continued to use and the land separately accounted.
Depreciation Method: for depreciation of fixed assets, uses the straight-line method, accounting by the recorded value minus the
estimated residual net value in the expected life period.
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The depreciation policy adopted for the fixed assets acquired under finance leases should be the same as that of own fixed assets
to recognize the depreciation for the lease assets.
If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the
leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership
of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or
its useful life.
Type Expected useful Estimated residual value Annual depreciation rate（%）
life（Year） rate
Produce House and Building 20～21 3 4.62～4.85
Machinery and equipment 11～12 3 8.08～8.82
Electronic Equipment
Transportation equipment 11～12 3 8.08～8.82
Other equipment 11～12 3 8.08～8.82
financial leasing fixed assets -- -- --
thereunto：House and
Building
Machinery and equipment
Electronic Equipment
Transportation equipment
Other equipment
（4）Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
At the end of each year, the Group checks the fixed assets item by item. If recoverable amount is below the book value because
the steady fall of the market price, or technological obsolescence, damage or long-term idleness or other factors, them make the
difference between the recoverable amount and the book value as the reserve for fixed assets devaluation, which was accounted as
the individual assets.
（5）Other
When one of the following circumstances exists, completely account the reserve for fixed assets devaluation in accordance with
the full book value of fixed assets:
The fixed assets that being put aside in long term, or no longer be used in the foreseeable future, and have no value of transfer;
Due to technological advances and other factors, the fixed assets can not be used;
Although the fixed assets can be used, but if use, large quantity of unqualified products may produce;
The fixed assets that had been damaged, and there is no usage value or value of transfer;
Other fixed assets that cannot bring economic benefits for the Group.
Upon the recognition of the fixed assets devaluation losses, depreciation or amortization expenses of the devalued assets should
have correspondent adjustment in the future periods, so that in the remaining service life of the assets, systematically adjust the book
value of the assets (excluding the predicted net residuals).
Upon the recognition of the fixed assets devaluation losses, in the subsequent accounting period they shall not be converted back.
15.Construction-in -progress
（1）Categories of projects under construction
Construction in progress represents capital assets under construction or installation and is stated at actual cost. The projects that had
long been stopped or the projects that will not restarted in three years.;
（2）Standard and timing for transferring of projects under construction to fixed assets
The projects that was lagged behind in both performance and in technique, and that may bring great uncertainty for the economic
benefits of the Group.
（3）Impairment text and providing of impairment provisions on projects under construction
The company makes a overall assessment of the project under construction at the end of each year. If there is any evidence that
the construction in progress has been impaired, the company provides for such impairment losses. In case of existing of one or
several of the following cases, the impairment losses should been provided for the construction in progress:
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The project under construction has been suspended for long period and is not expected to restart in 3 years.
The projects that was lagged behind in both performance and in technique, and that may bring great uncertainty for the economic
benefits of the Group.
Other situations that can prove that depreciation has already occurred to the construction projects.
Once any loss of the construction-in-process impairment is recognized, it shall not be switched back in the future accounting periods.
16. Borrowing cost
（1）Principle of the recognition of capitalized borrowing costs
For the loan expenses, if can be directly attributed to the capital, account them into the capital costs; For the other loan expenses,
account them into the losses and gains in the current period according to the occurrence amount.
If the loan expenses meet the all following conditions in the same time, they shall be capitalized and included into the cost of
that assets : ① Assets expenditure has occurred; ② The loan costs have occurred; ③ The necessary construction or production
activities for the assets to achieve the predicted state.
The loans include the specialized loan and the general loan.
For the additional expenses from specialized loan, before the achieving of the expected use or sale state and meet the capitalized
condition, according to the occurrence amount to have capitalization, and account it into the capital cost that meet the capitalization
condition; after the achieving of the expected use or sale state and meet the capitalized conditions, according to the occurrence
amount to recognize as cost, and account it into the current losses and gains.
For the additional expenses from general loans, recognize the occurrence amount as the expenses, and account it into the current
losses and gains.
（2）Capitalizing period of borrowing expenses
The capitalization period refers to the period from starting capitalization of loan costs to the stop of capitalization, the period of
the break of capitalization of loan costs is not included.
（3）Temporarily suspension of capitalizing period
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period
lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
（4）Calculating of borrowing expense capitalizing
For the special loan for the construction and production of capitalized assets, the actual interest expense from special loan minus
the interest income from loan deposited in the bank or the amount of investment gains from temporary investment.
For the general loan for the construction and production of capitalized assets, according to the capital expense weighted average
amount of the cumulative capital expenditure multiply the capitalization rate of the general loan occupied, account interest amount of
the general loan capitalization. The capitalization rate is accounted according to the general loan weighted average interest rate.
17. Biological assets
Biological assets are those of living animals and plants, and under international accounting standards is identical to the concept
of a live animal or plant. Biological assets and accounting principle be divided into consumable biological assets, productive
biological asset and public welfare biological assets in three categories.
The Company will check the consumable biological assets at least at the end of each year. if obvious evidences indicate that the
net realizable value of consumable biological assets or receivable amounts of production biological assets is less than their book
values for the reasons of natural calamities, disease and insect pest, infection of animal diseases or changes about market demands,
etc, and the depreciation reserve of biological assets will be with drawn based on the difference between the net realizable values or
receivable amounts and book values, and be accrued to the current profit and loss.
The aforesaid realizable net value and recoverable amount shall be ascertained in accordance with the "Accounting Standards
for Enterprises No.1 --- Inventories" and the "Accounting Standards for Enterprises No.8 --- Asset Impairment" respectively.
If the factors causing any impairment of a consumptive biological asset have disappeared, the amount of write-down shall be
resumed and shall be reversed from the provision for the loss on decline in value of the consumptive biological asset that has been
made. The reversed amount shall be included in the current profits and losses.
Once the provision for impairment of a productive biological asset is made, it shall not be reversed.
No provision shall be made for public welfare biological assets.
This asset is not applicable to the company
18.Oil gas assets
Refers to oil and gas extraction wells and related facilities owned or controlled by the enterprise and mining interests.Oil and
gas assets belonging to the diminished radix complement, reflect the Enterprise holds interests in mining areas and oil and gas wells
and related facilities of the original cost less accumulated depletion and accumulated net amount after impairment.
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This asset is not applicable to the company
19. Intangible assets
（1）Pricing of intangible assets
For the right of land use, the actual payment of the purchase price is the actual cost, accounting the intangible assets before the
construction of the project, and using method of straight line to amortize according to the land use period.
Use the straight-line method and amortize it in 50 year.
For the expenditures on internal research & development projects, the company pays the expenses according to the research phase
and development phase. The expenditures in the research phase are included in current profit and loss; For the expenditures that meet
the conditions in the development phase, shall be capitalized and recognized as intangible assets.
（2）Estimation of service life of intangible assets with limited service life
For the intangible assets with limited service life, the company generally considers the following factor when estimating the
service life: ① the general life cycle of products produced by the asset and the available information of service life of similar assets;
② the estimation of current situation of stage such as technology, craft and future development trends; ③ the demands in the
products or services produced or offered by the asset in the market; ④ an anticipative action taken by current or potential
competitors; ⑤ the anticipative maintenance expenditure that is in order to maintain the capacity of economic benefits produced by
the asset, and the ability to pay for the related expenses expected by the company; ⑥ the relevant regulations of laws or similar
constraints in the period of the assets control, such as the special privilege of use period, the lease term, etc.
（3）Intangible assets without certain useful life
Service life of uncertainty judgment: ① stems from contractual or other legal rights, but the life of the contract requires or
provides no clear;② combined industry or related experts, still cannot tell that the intangible assets for the duration of the economic
interests of the company.
（4）Provision for impairment of investment assets
At the end of each year, the Group checks the capability of all intangible assets that is expected to bring economic benefits for
the Group in the future. For the expected recoverable amount below its book value, account the reserves for devaluation. For the
intangible assets, account the reserves for devaluation according to the individual item.
When there is one or more of the following cases, the book value of intangible assets shall be completely converted to the current
profit and loss:
The intangible asset that have been replaced by some other new technology, and it had no use value and transfer value;
The intangible assets the has exceeded the legal time limit, and it can not bring economic benefits for the Group;
Other cases that can prove the intangible asset had lost its use value and transfer value.
When there is one or more of the following circumstances, account the devaluation reserves for the intangible assets:
The intangible assets that have been replaced by other new technologies, and that makes it produce great adverse affect to
economic interests of the Group.
The market value of certain intangible assets had a sharp decline in the current period, and will no resume in the remaining
amortization period;
The intangible assets the has exceeded the legal time limit, but they still have some value;
Other cases that can prove the intangible assets have had devaluations.
Once the devaluation losses of the intangible assets have been recognized, they can not be converted back in the subsequent
accounting period.
（5）Dividing of research stage and development stage of internal R& D projects
Study of internal R& D projects phase is exploratory research phase of the project, information refers to further develop
activities and related preparatory stage; Stage of development means that you have completed the research phase of the work, to a
large extent, internal research and development projects have formed the basic conditions for a new product or new technology.
（6）Accounting of internal R & D expenses
The Expenditure of the research stage in R & D project internally shall reckon into current gains and losses while occurred.
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time: (1) Owes feasibility in
technology and completed the intangible assets for useful or for sale; (2) Owes the intention for completed the intangible assets and
for sale purpose; (3) Way of profit generated including: Show evidence that the products generated from the intangible assets owes a
market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness; (4) Possess
sufficient technique , financial resources and other resources for the development of kind of intangible assets and has the ability for
used or for sale; (5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
20.Long-term amortization expenses
If the long-term amortization expenses are precious metals, amortize according to the actual damage degree of the precious
metals, and listed by the net amount of actual expenditure minus the accumulated amortization.
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21.Asset transferring with repurchasing terms
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22.Anticipated liabilities
（1）Recognition of expectable liabilities
Estimated liabilities are recognized if both the Company and the related obligation of contingencies meet the following
conditions at the same time: (1) The obligation is a present obligation undertaken by the enterprise; (2) The fulfillment of the
obligation may likely cause an outflow of economic interests; (3) The amount of the obligation can be reliably measured.
（2）Accounting of expectable liabilities
The Company conducts the initial measurement in accordance with the best estimated amount of expenditure required to fulfill
related present obligations, reviews the estimated liabilities on the date of the balance sheet, and adjusts the book value based on the
current best estimated amount.
23.Share payment and equity instrument
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（1）Category of share payment
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（2）Recognition of fair value of equity instruments
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（3）Recognition basis of best estimation of exercisable equity instruments
□ applicable √not applicable
（4）Accounting treatment of share payment plan to be implemented, revised , and terminated
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24.Repurchasing of the Company’s shares
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25. Revenues
(1). Recognition time for sales of goods
The risks and rewards on goods ownership are transferred to the buyers. The company will no longer implement the right of
management and the right of actual control. The amount of income can be reliably accounted. The economic interest related to
transactions flows into the Group and the cost related to the sale of the goods, the realization of business income confirmed.
Provision of Labor services：
（2）Incomes from transferring asset use right.
The related economic interests are likely to flow into the enterprise, and the amount of the revenue can be reliably measured,
confirm it as income. For the income from use fee, account it according to the charge time and method agreed in the contract or the
agreement.
（3）Deciding of completion percentage when percentage basis is adopted to recognize income from service
providing or construction contracts.
The operating income from the labor services started and finished within the same fiscal year is recognized when the labor
services are finished. The Company recognizes the related labor income by the percentage of completion of services on the date of
the balance sheet. If the result of providing labor services cannot be estimated reliably, the Company recognizes the income on the
balance sheet date according to the labor costs that have already occurred and are estimated to be compensated, and costs are carried
forward based on the same amount. If the labor costs that have already occurred in current period cannot be compensated, the income
is not recognized and the costs that have already occurred are recognized as the current expenses.
The Company determines the completion schedule of the provision of services by the following methods: (1) the measurement
of works that have been complete; (2) the proportion of the labor services that have provided in the total labor services that should be
provided; (3) the proportion of costs that have occurred in the estimated total costs.
26. Governmental subsidy
（1）Categories
59
The Company recognizes government subsidies when the Company is able to meet the conditions of government subsidies and
can receive government subsidies Monetary assets is measured by the amount that is received or should be received. Non-monetary
government subsidies are measured by fair values. Where the fair value cannot be obtained, the non-monetary government subsidies
are measured by the nominal amount of RMB1
（2）Accounting treatment
Government subsidies related to assets are recognized as deferred incomes, which are averagely distributed within the usage life
of related assets and recorded in current loss and profit. Government subsidies measured in nominal amount are directly recorded in
the current profit and loss. Government subsidies that are related to incomes and used to compensate the related fees and losses of the
future period are recognized as deferred incomes, and are recorded in the current profit and loss in the period of recognition of related
fees. Government subsidies that are used to compensate the related fees and losses occurred are recorded in the current profit and
loss.
27. Deferred income tax assets/Deferred income tax liability
（1）Confirmation of deferred income tax assets
If there is a deductible temporary difference between the book value of assets and liabilities and the tax base, recognize the
deferred tax assets generated by the deductible temporary difference based on the limitation of taxable income that is used to deduct
the deductible temporary difference.
(2) The confirmation of deferred income tax liability
If taxable temporary differences exist between the book value of assets, liabilities and its tax base, in accordance with the
applicable tax rates in the expected period for drawing back the asset or settling the liabilities, it will be recognized as deferred
income tax liabilities by calculation.
28.Operational leasing and Financing leasing
（1）Accounting of operational leasing
Operating lease, also known as operational leasing, is the symmetry of the financing lease. Is designed to meet business on the
use of temporary or seasonal require asset leasing. An operating lease is a form of short-term leasing, it refers to the lesser to the
lessee not only provide equipment right, but also to the lessee to provide maintenance of equipment, insurance, maintenance and
other specialized technical services of a form of leasing.
（2）Accounting treatment of financing leasing
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29.Sellable assets in possession
（1）Recognition of sellable assets in possession
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（2）Accounting treatment of sellable assets in possession
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30.Securitilization of assets
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31.Hedging instruments
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32.Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
□ Yes √ No □not applicable
（1）Change of accounting policies
Is there any change in accounting policies in the report period
□ Yes √ No □not applicable
（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
□ Yes √ No □not applicable
33.Correction of accounting errors in previous period
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Is there any accounting error with previous period found in the report period
□ Yes √ No □not applicable
（1）Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term .
□ Yes √ No □not applicable
（2）Future adoption method
Is there any future adoption method apply able to accounting errors with previous period, found in the report
period
□ Yes √ No □not applicable
34.Other principal accounting policies, estimations and preparation method of financial statements
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（V）Taxation
1.Main categories and rates of taxes
Tax items Tax basis Tax rate
VAT Product sales revenue. 17%
Excise Sales revenue of energy and power 13%
Business tax Income from labor services and lease. 3～5%
City maintenance and construction tax Turnover tax to be paid allowances. 7%
Enterprise income tax Taxable income 25%
Education surtax Turnover tax to be paid allowances. 5%
Income tax rate apply able to branches and factories 25%
2.Preferential tax and approving documents
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3.Other statements Naught
61
(VI). Enterprise Consolidation and Consolidation Financial Statement
1.Subsidiary Company
（1）The company has established and invested a subsidiary
Shijiazhuang Baoshi Colour Bulb Co., Ltd. , Hebei Xubao Construction Installation Engineering Co., Ltd. , Wuhu Dongxu Optoelectronic Equipment Technology Co., Ltd., Wuhu Dongxu
Optoelectronic Equipment Technology Co., Ltd.,Wuhan Dongxu Optoelectronic Technology Co.,
Ltd. and Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. are the subsidiaries and grandson companies of this company
Unit：RMB
After wrote down
current period loss
Other
Wheth Amount of minority
Actual projects
Holdin Propor er used to write shareholders over
capital balance Interest of
g tion of consol down lost equity beginning
Full name of Subsidiary Registration Registered Curre amou essentially minority
Business Business scope proport voting idation included in share of minority
subsidiary type place capital ncy nts of from net shareholde
ion rights( of minority shareholders in the
the investmen r
(%) %) report shareholder subsidiary from the
end t to
form interest parent company’s
subsidiary
share ,Balance of
Owner's equity
Hebei
Building architectural
Xubao No.9,
engineering design,
Constructio Limited Huanghe Constructio 8,000,
8,000,000.0 construction, engineering
n Liability Road, n CNY 000.0 100% 100% Yes
0 consultancy, city and roads
Installation Company Shijiazhuan Installation 0
lighting projects, interior and
Engineering g
exterior decoration projects.
Co., Ltd.
Shijiazhuan No.9,
g Limited Huanghe Production and sales of glass 439,3
Manufacturi 540,680,000 81.26 15,330,000
Baoshi Liability Road, CNY bulbs for color kinescope 40,00 81.26% Yes
ng Industry .00 % .00
Color bulb Company Shijiazhuan and electronic glass products 0.00
Co., Ltd. g
Wuhu Other 3/F, Wuhu R&D of optoelectronic 5,100,
Manufacturi 10,000,000. CNY 51% 51% Yes 4,900,000.
Dongxu Limited Economy mechanical equipment and 000.0
62
Optoelectro Liability Technology ng Industry 00 electronic products, 0 00
nic Company Developme production of all kinds of
Equipment nt Zone, non-standard equipment and
Technology Managemen parts and relevant process
Co., Ltd. t Committee formulation.
3/F, Wuhu
Wuhu Personal lim Economy Investment, construction and
Dongxu ited operation related to the
Technology 5,000,
Optoelectro Manufacturi 5,000,000.0 industry of glass substrate
liability co Developme CNY 000.0 100% 100% Yes
nic ng Industry 0 for optoelectronic display
mpany nt Zone, 0
Technology and relevant technological
Managemen
Co., Ltd. development.
t Committee
Shijiazhuan
Optoelectronic device
g Dongxu No.9,
Other installation and relevant
Optoelectro Huanghe 5,100,
Limited Manufacturi 10,000,000. technological development, 4,280,000.
nic Road, CNY 000.0 51% 51% Yes
Liability ng Industry 00 technology transfer, 00
Equipment Shijiazhuan 0
Company technical consultation and
Technology g
technical services.
Co., Ltd.
Optoelectronic display glass
substrate industry
Wuhan investment, construction and
Dongxu operation, Machinery and
Limited 3,125,
Optoelectro Wuhan , Manufacturi 5,000,000.0 equipment, design and sale 1,875,000.
Liability CNY 000.0 62.5% 62.5% Yes
nic Hubei ng Industry 0 of electronic products, 00
Company 0
Technology Provide relevant technology
Co., Ltd. development, technical
advice, technical services,
transfer of technology etc.
Other statements on Subsidiaries obtained through incorporation or investment：
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（2）Subsidiaries procured through merger of entities under common control
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（3）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
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2. Entities with special purposes or entities on which the Company has controlling power through entrusted
operation or leasing
□Applicable √Not applicable
3. Changes of combination scope at current period
Change of consolidation scope:
On March 22, 2012, Wuhan Dongxu Optoelectronic Technology Co.,Ltd.new into the scope of consolidation, the net assets at end of
term was RMB 4.0607 million.
□Applicable √Not applicable
4.Entities included or excluded in the consolidation range in the report period.
There is no other changes in consolidation scope except this. there is no other main part to be newly included or to be excluded in
consolidation scope of this period.
Unit：RMB
Name Net asset at end of term Net profit of the current term
Wuhan Dongxu Optoelectronic Technology Co., Ltd. 4,060,697.67 -939,302.33
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or
leasing excluded from the consolidation range in the report period.
Naught
Other statements on entities included to or excluded from the consolidation range in the report period：
Naught
5. Enterprise consolidation under same controlling at the end of current period.
Naught
6. Enterprise consolidation under non-same controlling within the reporting period.
Naught
7. Sell stock right losing controlling right to decrease subsidiary company.
Naught
8. Reverse acquisition occurred in the report period.
Naught
9. Takeover occurred in the report period.
Naught
10.Exchange rate of main accounts of overseas businesses.
Not applicable
(VII). Notes of consolidated financial statements
1. Currency funds
64
Unit：RMB
Year-end balance Year-beginning balance
Items Exchan Original Exchange
Original currency ge rate RMB currency rate RMB
Stock cash -- -- 746,529.72 -- -- 227,397.85
RMB -- -- 746,529.72 -- -- 227,397.85
Bank deposit -- -- 50,002,630.30 -- -- 15,619,827.88
RMB -- -- 50,002,630.30 -- -- 15,619,827.88
Other monetary capital -- -- 0.00 -- -- 0.00
RMB -- -- -- --
Total -- -- 50,749,160.02 -- -- 15,847,225.73
Accounts under pledge, restriction, or saved abroad, which are attached with potential risks, shall be stated individually.：
Naught
2.Financial assets for transaction
(1)Financial assets for transaction
Naught
（2）Transactional financial assets with restriction to liquefy
Naught
（3）Statements on hedge instruments and related trading
Naught
3. Bill receivable
（1）Classification Bill receivable
Unit RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 1,295,624.00 450,000.00
Total 1,295,624.00 450,000.00
（2）Bill receivable under pledge
Naught
（3）Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to
other parties but are not mature yet at the end of period.
Unit：RMB
Issuer Date of issue Expired on Amount Remark
Sichuang Xuguang
Optoelectronic March 13, 2012 September 12, 2012 800,000.00
Technology Co., Ltd.
Zhangjiagang
Xindongxu Textile
May 29, 2012 November 29, 2012 100,000.00
Printing & dyeing Co.,
Ltd
Zhejiang Zhaolin
May 28, 2012 November 25, 2012 100,000.00
Industry Co., Ltd.
Wujiang Weimin
May 29, 2012 November 29, 2012 100,000.00
Chengxin Weaving Plant
Shaoxing Jinsheng May 25, 2012 November 25, 2012 100,000.00
65
Textiles Co., Ltd.
Total -- -- 1,200,000.00 --
Notes：
Bill endorsed to other parties but not due is RMB 1,200,000..00.
Statements on commercial accepted notes already discounted or under pledge：
Naught
4.Dividend receivable
Naught
5.Interest receivable
（1）Interest receivable
Naught
（2）Overdue interests
Naught
（3）Statement on interest receivable
Naught
6. Account receivable
（1）Classification Account receivable :
Unit :RMB
Year-end balance Year-beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Classification
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
（%） （%） （%） （%）
Receivables with major
individual amount and bad
debt provision provided
individually receivables 28,849,155. 28,849,155. 28,849,15 28,849,155.9
9.59% 100% 63.57% 100%
with major individual 91 91 5.91 1
amount and bad debt
provision provided
individually
Receivables provided bad debt provision in groups
The receivables that the
267,904,03 12,293,58
individual amount is not 89.07% 27.09%
5.44 8.86
large but the risk is great
267,904,03 12,293,58
Subtotal of group 89.07% 27.09%
5.44 8.86
Account receivable with
minor individual amount 4,027,946.9 4,027,946.9 4,236,634
1.34% 100% 9.34% 4,236,634.05 100%
but bad debt provision is 6 6 .05
provided
300,781,13 32,877,102. 45,379,37 33,085,789.9
Total -- -- -- --
8.31 87 8.82 6
Receivable accounts with large amount individually and bad debt provisions were provided.
√Applicable □Not applicable
Unit：RMB
Description of the receivable accounts Book balance Bad debt provision Rate Reason to provide
Baoshi TV Factory 14,009,355.59 14,009,355.59 100% Can't withdraw
Tianjing Anjing Electronic Glass Co., Ltd 8,041,810.32 8,041,810.32 100% Can't withdraw
66
Anyang Xinyi Electronic Glass Co., Ltd. 3,796,390.00 3,796,390.00 100% Can't withdraw
Fuyang Stores 2,000,000.00 2,000,000.00 100% Can't withdraw
City Lingchao Trading Company 1,001,600.00 1,001,600.00 100% Can't withdraw
Total 28,849,155.91 28,849,155.91 --
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions：
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of
period.
√Applicable □Not applicable
Unit：RMB
Name Book balance Amount of bad debt
The receivables that the individual
267,904,035.44 0.00
amount is not large but the risk is great
Total 267,904,035.44 0.00
In the current report period, Separate amount is not large, the account receivable with big combination risk after
combined via risk character:
√Applicable □Not applicable
Unit：RMB
Description Of Account receivables Book balance Amount of bad debt rate reason
Baoshi process Plant 921,915.24 921,915.24 100% Can't withdraw
Tianjing Communication Tadio Company 570,000.00 570,000.00 100% Can't withdraw
Shijiazhuang Radio and TV
483,604.75 483,604.75 100% Can't withdraw
Company. Economic Department
Henan Anfei Electronic Glass Co., Ltd. 96,912.77 96,912.77 100% Can't withdraw
Baoshi Trading Company 269,792.40 269,792.40 100% Can't withdraw
Tianjing Jingjing Glass Bulb Co., Ltd. 266,960.00 266,960.00 100% Can't withdraw
Xingji Industry product marketing—Ji Weiying 220,000.00 220,000.00 100% Can't withdraw
Puyang Baoshi Glass Co., Ltd. 186,050.75 186,050.75 100% Can't withdraw
Meng Jun 161,125.00 161,125.00 100% Can't withdraw
Shanxi Huguang Five cross station 101,200.00 101,200.00 100% Can't withdraw
Shuping Home Appliances 74,070.00 74,070.00 100% Can't withdraw
Anyang Radio tube Factory 68,486.00 68,486.00 100% Can't withdraw
Shijida Design 60,000.00 60,000.00 100% Can't withdraw
Shahe Town Enterprises industrial Supply Company 56,400.00 56,400.00 100% Can't withdraw
Shenzhen Dimotai Industry Company 56,244.44 56,244.44 100% Can't withdraw
Anyang Dali Electronic Company 45,006.00 45,006.00 100% Can't withdraw
Zhang Jinjiang 42,500.00 42,500.00 100% Can't withdraw
Huaneng Company 42,000.00 42,000.00 100% Can't withdraw
Xinxiang Industry and trade 36,960.00 36,960.00 100% Can't withdraw
67
Xinle People SecurityDept 33,600.00 33,600.00 100% Can't withdraw
Tiangong Technology 30,000.00 30,000.00 100% Can't withdraw
Baibo Trading Company 30,000.00 30,000.00 100% Can't withdraw
Jiangshu Metal & chemical 27,435.00 27,435.00 100% Can't withdraw
Shixinsheng Industry Company 27,050.00 27,050.00 100% Can't withdraw
HeBei Yiling Machine Manufacture Factory 22,500.00 22,500.00 100% Can't withdraw
Shanxi Chengzhi Chemical station 20,840.00 20,840.00 100% Can't withdraw
Other 77,294.61 77,294.61 100% Can't withdraw
Total 4,027,946.96 4,027,946.96 100% --
（2）Receivable accounts written back or retrieved in the report period
Naught
（3）Receivable accounts written back or retrieved in the report period
Naught
(4)Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s shares
√Applicable □Not applicable
Unit：RMB
Year-end balance
Year-beginning balance
Name
Balance Book Bad debt amount Balance Book Bad debt amount
Shijiazhuang Baoshi Electronic
575,572.85 0.00 0.00 0.00
Group Co., Ltd.
Total 575,572.85 0.00 0.00 0.00
（5）The front 5 units’ information of account receivable
Unit：RMB
Portion in total
Name Relation with the Company Amount Ages
receivables(%)
Dongxu(ingkou) Optoelectronic
Related parties 91,219,046.01 Within 1 year 30.33%
Display Co., Ltd.
Sichuan Xuhong Optoelectronic
Related parties 83,695,000.00 Within 1 year 27.83%
Technology Co., Ltd.
Zhengzhou Xufei Optoelectronic
Related parties 76,250,027.69 Within 1 year 25.35%
Technology Co., Ltd.
Tianjing Anjing Electronic Glass
Non-Related parties 8,041,810.32 Over 3 years 2.67%
Co., Ltd
Baoshi TV Factory Non-Related parties 6,661,700.00 Over 3 years 2.21%
Total -- 265,867,584.02 -- 88.39%
（6）Account due from related parties
Unit：RMB
Name Relation with the company Amount Portion in total receivables(%)
Sichuan Xuhong Optoelectronic
Related parties 83,695,000.00 27.83%
Technology Co., Ltd.
Dongxu(Yingkou) Optoelectronic
Related parties 91,219,046.01 30.33%
Display Co., Ltd.
Zhengzhou Xufei Optoelectronic Related parties 76,250,027.69 25.35%
68
Technology Co., Ltd.
Shijiazhuang Baoshi Electronic
Controlling shareholder 575,572.85 0.19%
Group Co., Ltd.
Shijiazhuang Dongxu Machine
Related parties 2,100,000.00 0.7%
Co., Ltd.
Dongxu Group Related parties 4,963,602.00 1.65%
Total -- 258,803,248.55 86.05%
（7）Recognition of receivable accounts terminated
Naught
（8）For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
Naught
7.Other Account receivable
（1）Category of other account receivable:
Unit ：RMB
Year-end balance Year-beginning balance
Book balance Book balance Book balance Book balance
Classification
Proporti Proportio Proportion Proportio
Amount Amount Amount Amount
on（%） n（%） （%） n（%）
Other Receivables with
major individual amount
3,930,418.78 10.13% 3,930,418.78 100% 3,930,418.78 12.84% 3,930,418.78 100%
and bad debt provision
provided individually
Other Receivables provided bad debt provision in groups
Other receivables that the
32,581,686.8 24,349,986.5
individual amount is not 83.98% 79.56%
2 4
large but the risk is great
32,581,686.8 24,349,986.5
Subtotal of group 83.98% 79.56%
2 4
Other Account receivable
with minor individual
2,285,844.75 5.89% 2,285,844.75 100% 2,327,144.75 7.6% 2,327,144.75 100%
amount but bad debt
provision is provided
38,797,950.3 30,607,550.0
Total -- 6,216,263.53 -- -- 6,257,563.53 --
5 7
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Description Of other receivables Book balance Amount of bad debts Rate Reason
Shijiazhuang Baoshi Electronic
1,544,512.64 1,544,512.64 100% Can't withdraw
Group Industry & trading Company
Henan Anfei Electronic Co., Ltd. 1,094,333.29 1,094,333.29 100% Can't withdraw
Shijiazhuang Baoshi Electronic
Group Industry & trading Company, 470,281.48 470,281.48 100% Can't withdraw
Mineral water Plant
Puyang Baoshi Glass Co., Ltd. 416,930.75 416,930.75 100% Can't withdraw
69
New century Capsule 404,360.62 404,360.62 100% Can't withdraw
Total 3,930,418.78 3,930,418.78 -- --
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions：
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Name Book balance Amount of bad debts
Other receivable accounts with minor amount but
were provided had debt provisions individually at end 32,581,686.82 0.00
of period.
Total 32,581,686.82 0.00
Separate amount is big at end of the period or not big but other account receivable and doubtful reserves shall be withdrawn.
√Applicable □Not applicable
Unit：RMB
Amount of bad
Description Of other receivables Book balance Rate Reason
debts
Tianjihng Electronic Instrument import &
266,745.75 266,745.75 100% Can't withdraw
export Company
City Sida 241,350.00 241,350.00 100% Can't withdraw
Shenzhen SEG Zhongkang Co., Ltd. 161,568.10 161,568.10 100% Can't withdraw
Advances transferred 147,557.46 147,557.46 100% Can't withdraw
Guizhou Xingqian Union Antimony Products
120,000.00 120,000.00 100% Can't withdraw
Company
Picture tube Plant 111,521.59 111,521.59 100% Can't withdraw
Baohao Company 108,730.00 108,730.00 100% Can't withdraw
Zhao Junqing 106,863.00 106,863.00 100% Can't withdraw
Xu Xin 100,000.00 100,000.00 100% Can't withdraw
Urban construction archives 70,000.00 70,000.00 100% Can't withdraw
Provincial Software Center 61,035.00 61,035.00 100% Can't withdraw
Zhao Junqing 60,000.00 60,000.00 100% Can't withdraw
Jinzhou Tube mould Factory 50,001.34 50,001.34 100% Can't withdraw
Xinxiang Lifting Equipment Plant 46,200.00 46,200.00 100% Can't withdraw
Electric cars into 43,366.86 43,366.86 100% Can't withdraw
Capsule plant 42,269.23 42,269.23 100% Can't withdraw
Reserve fund 41,300.00 41,300.00 100% Can't withdraw
Shanghai Sea Electrical Store 40,426.00 40,426.00 100% Can't withdraw
Thermal Plant 38,735.55 38,735.55 100% Can't withdraw
70
Xinjiang Nonferrous metal industry Company 37,122.88 37,122.88 100% Can't withdraw
Shenyang Zhongje Friendship plant 35,969.53 35,969.53 100% Can't withdraw
Pingshan Ore processing plant 35,461.95 35,461.95 100% Can't withdraw
Xianyang Caihong Machine Plant 30,575.00 30,575.00 100% Can't withdraw
Dongan Company 27,640.04 27,640.04 100% Can't withdraw
Shijiazhuang Graphite electrode plant, Specialty
25,000.00 25,000.00 100% Can't withdraw
graphite products factory
Zhengding Xizhaotong 23,000.00 23,000.00 100% Can't withdraw
Supply Dept 22,294.41 22,294.41 100% Can't withdraw
Provincial Second construction Company, No.5
20,000.00 20,000.00 100% Can't withdraw
Dept
Other 171,111.06 171,111.06 100% Can't withdraw
Total 2,285,844.75 2,285,844.75 100% --
（2）Other receivable accounts written back or retrieved in the report period
Naught
（3）Other receivable accounts actually written off in the report period
Naught
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company’s
shares in the report period.
√Applicable □Not applicable
Unit：RMB
Balance at the period end Balance in year-begin
Name
Amount Proportion(%) Amount Proportion(%)
Shijiazhuang Baoshi Electronic
15,364,907.30 0.00 0.00 0.00
Group Co., Ltd.
Total 15,364,907.30 0.00 0.00 0.00
（5）Natures or contents of other receivable accounts with large amount
Naught
（6） The front 5 units’ information of Other account receivable
Unit：RMB
Portion in total other
Name Relation with the Company Amount Ages
receivables (%)
Shijiazhuang Baoshi Electronic
Controlling Shareholders 15,364,907.30 Within 1 year 47.16%
Group Co., Ltd.
Shijiazhuang Baoshi Electronic
Not- Related parties 1,544,512.64 Over 3 years 4.74%
Group Co., Ltd.
Henan Anfei Electronic Co.,
Not- Related parties 1,094,333.29 Over 3 years 3.36%
Ltd.
Shijiazhuang Baoshi Zhonghe
Related parties 504,663.50 Within 6 months 1.55%
Steel Plastic Shape Co., Ltd.
Shijiazhuang Baoshi Electronic
Group Industry & trading Not- Related parties 470,281.48 Over 3 years 1.44%
Company, Mineral water Plant
71
Total -- 18,978,698.21 -- 58.25%
（7）Account receivable from Related parties
Unit： RMB
Portion in total other receivables
Name Relation with the Company Amount
(%)
Shijiazhuang Baoshi Xuming
Related parties 335,097.90 1.03%
Tube Co., Ltd.
Shijiazhuang Baoshi
Controlling shareholder 15,364,907.30 47.16%
Electronic Group Co., Ltd.
Shijiazhuang Baoshi
Related parties 16,100.00 0.05%
Large-diameter Co.Ltd
Shijiazhuang Baoshi Zhonghe Related parties 504,663.50 1.55%
Hebei Baoshi Lighting Co.,
Related parties 176,591.50 0.54%
Ltd.
Total -- 16,397,360.20 50.33%
（8）Termination of other receivable accounts
Naught
（9）For securitization on other receivable accounts, please provide the amount of asset and liability formed by
continuous involving
Naught
8.Prepayments
（1）Prepayments age :
Unit: RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 51,924,558.07 98.84% 4,864,897.79 85.77%
1-2 years 281,032.06 0.54% 790,172.03 13.93%
2-3 years 321,358.21 0.61% 16,513.19 0.29%
Over 3 years 5,974.75 0.25% 624.75 0.01%
Total 52,532,923.09 -- 5,672,207.76 --
（2） The front 5 units’ information of Prepayments
Unit：RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
Tianjing Development
Advance preparation
Zone Lihua Industry & Not- Related parties 6,468,720.00 December 31, 2012
fund
Trade Co., Ltd.
Yuoyan Yijin New Advance preparation
Not- Related parties 4,539,850.00 December 31, 2012
Material Co., Ltd. fund
Jiangshu Jinyongli Air
Advance preparation
Conditioning Not- Related parties 3,542,500.00 December 31, 2012
fund
Manufacture Co., Ltd.
72
Xuzhou Ruiyang
Advance preparation
Lighting Electrical Not- Related parties 1,164,000.00 December 31, 2012
fund
Engineering Co., Ltd.
Beijing Yiruo Weiye Advance preparation
Not- Related parties 1,065,371.00 December 31, 2012
Trade Co., Ltd. fund
Total -- 16,780,441.00 -- --
（3）Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the report
period.
□Applicable √Not applicable
（4）Statements on prepayments
Naught
9.Inventory
（1）Inventory types
Unit ：RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for bad Book value
bad debts debts
Raw materials 158,152,366.86 8,230,334.26 149,922,032.60 125,449,462.28 8,230,334.26 117,219,128.02
Processing products 599,047.52 599,047.52 1,552,040.25 1,552,040.25
Stock goods 21,739,117.55 3,459,635.91 18,279,481.64 26,354,396.73 3,459,635.91 22,894,760.82
Turnover materials 0.00 0.00
Consumable
biological assets
Goods and materials
0.00 0.00
shipped
Entrust processing
138,088.86 138,088.86 24,778.64 24,778.64
goods and material
Low value
0.00 0.00 12,916.32 12,916.32
consumption goods
Material cost
72,127.44 72,127.44 109,384.87 109,384.87
difference
Material
0.00 0.00 169,000.11 169,000.11
procurement
Total 180,700,748.23 11,689,970.17 169,010,778.06 153,671,979.20 11,689,970.17 141,982,009.03
（2）Inventory Impairment provision
Unit： RMB
Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
Type
beginning current period Transferred back Reselling end
Raw materials 8,230,334.26 8,230,334.26
Processing products
Stock goods 3,459,635.91 3,459,635.91
Turnover materials
Consumable biological
assets
73
Total 11,689,970.17 11,689,970.17
（3）Condition of stock value decline
Naught
10.Other current assets
Unit：RMB
Items End of term Beginning of term
Replace with US dollar 58,000,000.00 58,000,000.00
Financing expenses unconfirmed 153,190.35
Other 438,446.68
Total 58,438,446.68 58,153,190.35
11. Disposable financial asset
（1）Sellable financial assets
Naught
（2）Long-germ liability investment in the sellable financial assets
Naught
12.Investment held to mature
（1）Investment held to mature
Naught
（2）Investment held to mature disposed in the report period before mature
Naught
13.Long-term receivables
Naught
14. Investment to joint venture and Affiliated Enterprises
Naught
74
15. Long term share equity investment.
（1）Details of long-term equity investment
Unit：RMB
Explanation of
difference between
Shareholding Voting right shareholding Cash
Accounting Initial investment
Name Original balance change Ending Balance proportion in the proportion in the proportion and Devalue Current devalue
method cost bonus
investee investee voting right
proportion in
investee
Shijiazhuang Equity
Baolihua method
Technology 200,000.00 200,000.00 0.00 200,000.00 40% 40% 50,000.00 0.00 0.00
&Trading Co.,
Ltd.
Total -- 200,000.00 200,000.00 0.00 200,000.00 -- -- -- 50,000.00 0.00 0.00
75
（2）Constrains on the ability to transfer capital to invested entities
Naught
16.Investment real estate
（1）Measured by the cost of investment in real estate
√Applicable □Not applicable
Unit:RMB
Items Book amount at year Increase at this period Decrease at this period Book balance in year -end
beginning
1. Total original price 77,990,458.53 0.00 0.00 77,990,458.53
1.House, Building 77,990,458.53 77,990,458.53
2.Land use right
II.Total accumulated
depreciation accumulated 60,172,617.21 1,793,780.55 0.00 61,966,397.76
amortization
1.House, Building 60,172,617.21 1,793,780.55 0.00 61,966,397.76
2.Land use right
III. Total book value of
17,817,841.32 -1,793,780.55 0.00 16,024,060.77
investment real estate
1.House, Building 17,817,841.32 -1,793,780.55 16,024,060.77
2.Land use right
IV. Total of accumulated
provision for devaluation of 0.00 0.00 0.00 0.00
investment real estate.
1.House, Building
2.Land use right
V. Total book value of
17,817,841.32 -1,793,780.55 0.00 16,024,060.77
investment real estate
1.House, Building 17,817,841.32 -1,793,780.55 16,024,060.77
2.Land use right
Unit ：RMB 元
This period
Current amount of depreciation and amortization 1,793,780.55
Investment real estate in this period the amount of impairment 0.00
（2）Investment property on fair value basis
□Applicable √Not applicable
17. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at Increase at this period Decrease at this Book balance in
year beginning period year -end
1. Total original price 251,833,117.97 253,639,357.76
Including: House , Building 105,786,470.97 108,025,273.18
Machinery equipment 135,298,141.13 135,705,256.17
Transportations 3,782,309.42 2,870,809.42
Office Equipment and other 6,966,196.45 7,038,019.00
Book balance at Decrease at this Book balance in
--
year beginning Current term Current term period year -end
76
new extra provision
II. Total of accumulative
195,700,017.44 3,961,095.52 199,686,233.38
depreciation
Including: House , Building 70,392,724.45 2,421,374.16 72,937,090.17
Machinery equipment 118,872,477.80 1,375,085.09 119,994,358.10
Transportations 859,404.67 108,883.25 968,287.93
Office Equipment and other 5,575,410.52 55,753.02 5,786,497.19
Book balance at Book balance in
-- --
year beginning year -end
III. Total book value of
56,133,100.53 -- 53,953,124.38
Fixed assets
Including: House , Building 35,393,746.52 -- 35,088,183.01
Machinery equipment 16,425,663.33 -- 15,710,898.07
Transportations 2,922,904.75 -- 1,902,521.49
Office Equipment and other 1,390,785.93 -- 1,251,521.81
IV. Total of Devalued
3,236,295.13 -- 3,236,295.13
Provision
Including: House , Building --
Machinery equipment 3,236,295.13 -- 3,236,295.13
Transportations --
Office Equipment and other --
V. Total book value of
52,896,805.40 -- 50,716,829.25
Fixed assets
Including: House , Building 35,393,746.52 -- 35,088,183.01
Machinery equipment 13,189,368.20 -- 12,474,602.94
Transportations 2,922,904.75 -- 1,902,521.49
Office Equipment and other 1,390,785.93 -- 1,251,521.81
Current depreciation is RMB 3,961,095.52 . The issue of fixed assets transferred from construction in progress original price is
RMB 0.
（2）Fixed assets temporarily in idle status
Unit：RMB
Accumulated Impairment
Items Original book value Net book value Notes
depreciation provision
Including: House ,
Building
Machinery
4,765,286.22 1,445,927.10 3,236,295.13 83,063.99
equipment
Transportations
（3）Fixed assets leased by finance
□Applicable √Not applicable
（4）Fixed assets leased out on finance.
√Applicable□Not applicable
Unit：RMB
Type Book balance in year -end
Including: House , Building 7,188,745.00
Machinery equipment 767,703.11
77
Transportations
（5）Fixed assets held for sale at end of period
Naught
（6）Fixed asset not licensed yet
Naught
18.Project under construction
（1）
Unit：RMB
Year-end balance Year-beginning balance
Book Provision for Book Net Book Provision for Book Net
Items balance devaluation value balance devaluation value
Glass tube 2 period
23,096,922.36 21,561,509.06
transform
Other 29,760,894.74 741,000.00
Total 52,857,817.10 22,302,509.06
（2）Significant changes in projects of construction-in-progress
Naught
（3）Impairment Provisions of Construction in progress
Naught
（4）Major projects under construction
Naught
（5）Statement on projects under construction
Naught
19.Engineering Material
Naught
20.Liquidation of fixed assets
Naught
21.Production biological assets
（1）On costs
□Applicable √Not applicable
（2）On fair value
□Applicable √Not applicable
22.Petrolum assets
Naught
23. Intangible assets
（1）Intangible assets
Unit：RMB
Items Book Balance in Increase at this Book Balance in
Decrease at this period
year-begin period year-end
1. Total original price 16,005,611.00 47,702,677.00 0.00 63,708,288.00
Land Use right 15,997,361.00 47,660,677.00 63,658,038.00
Financing Software 8,250.00 42,000.00 50,250.00
II. Total amount of
4,507,305.04 322,430.45 0.00 4,829,735.49
accumulated
Land Use right 4,499,055.04 320,797.22 4,819,852.26
Financing Software 8,250.00 1,633.23 9,883.23
III. Book value of
11,498,305.96 47,380,246.55 0.00 58,878,552.51
intangible assets
Land Use right 11,498,305.96 47,339,879.78 58,838,185.74
78
Financing Software 40,366.77 -40,366.77
IV.Total value of
provision for 0.00 0.00 0.00 0.00
impairment
Land Use right
Financing Software
V.Total value of
11,498,305.96 47,380,246.55 0.00 58,878,552.51
Intangible assets
Land Use right 11,498,305.96 47,339,879.78 58,838,185.74
Financing Software 40,366.77 40,366.77
The amortization amount is RMB 322,430.45.
（2）The current expenditure on non-development projects
Naught
（3）Uncertificated intangible assets
Naught
24. Goodwill
Naught
25. Long-term amortization expenses
Naught
26. Deferred income tax assets/Deferred income tax liabilities
（1）Recognized deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
Recognized deferred income tax assets and deferred income tax liabilities
Unit：RMB
Items Year-end balance Year-beginning balance
Deferred income tax assets：
Assets depreciation reserves
Start-up costs
Deductible loss
Bad debt reserve. 5,556,355.30 5,556,355.30
Inventory devaluation provision 2,083,749.33 2,083,749.33
Impairment loss of fixed assets 212,948.83 212,948.83
Long-term equity investment 9,286.91 9,286.91
Welfare for workers’ dismissing 86,080.92 86,080.92
Losses Covered in Latter Year 2,750,000.00 2,750,000.00
Subtotal 10,698,421.29 10,698,421.29
Deferred income tax liability：
Trading of financial instruments and Derivative
financial instruments
Increase and decrease of fair value of
available-for-sale financial assets
Subtotal
Details of taxable differences and deductible differences
Unit：RMB
Items At end of term At beginning of term
Deductible provisional differences
Neutralizable losses 4,905,694.43 4,905,694.43
Bad debt reserve. 4,279,483.08 4,279,483.08
79
Inventory devaluation provision 838,743.21 838,743.21
Impairment loss of fixed assets 596,124.95 596,124.95
Long-term equity investment 3,213.09 3,213.09
Welfare for workers’ dismissing 29,782.33 29,782.33
Losses Covered in Latter Year 10,653,041.09 10,653,041.09
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Unit：RMB
Year At end of term At beginning of term Notes
2014 6,633,761.27 6,633,761.27
2015 12,989,016.45 12,989,016.45
Total 19,622,777.72 19,622,777.72 --
Details of taxable differences and deductible differences
Unit：RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Subtotal
Details of deductible difference items
Bad debt reserve. 22,225,421.18
Inventory devaluation provision 8,334,997.34
Impairment loss of fixed assets 851,795.32
Long-term equity investment 37,147.64
Welfare for workers’ dismissing 344,323.67
Losses Covered in Latter Year 11,000,000.00
Subtotal 42,793,685.15
（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
□Applicable √Not applicable
Statement on deferred income tax assets and liabilities：
27.Detail of asset impairment provision
Unit： RMB
Balance of book Decrease at this period
Balance of
value at Increase at this Withdrawal amount Transfer in
Items book value at
beginning of period in this
end of term
term
1. Bad debt provision 39,343,353.49 249,987.09 39,093,366.40
2 Inventory impairment
11,689,970.17 11,689,970.17
provision
3. Disposable financial asset
impairment provision
4. Investment equity hold till
expiring impairment
provision
5. Long-term equity
investment impairment 50,000.00 0.00 50,000.00
provision
6. Property investment
0.00 0.00 0.00
impairment provision
7.Fixed asset impairment
3,236,295.13 3,236,295.13
provision
8. Project material impairment
provision
80
9. Construction in process
impairment provision
10 Production biological
material asset impairment
provision
Incl. Mature production
biological material asset
impairment provision
11. Gas & oil asset
impairment provision
12. Intangible asset
0.00 0.00 0.00
impairment provision
13. Goodwill impairment
provision
14.Other
Total 54,319,618.79 0.00 249,987.09 0.00 54,069,631.70
Statement on details of asset impairment：
28.Other non-current assets
Naught
29. Short-term borrowings
（1）Categories of short-term loans
Unit：RMB
Items At end of term At beginning of term
Loan by pledge
Pledged loan 160,000,000.00
Guarantee loan
Credit loan
Total 160,000,000.00 0.00
（2）Short-term loans expired but not repaid
Naught
30.Transactional financial liabilities
Naught
31.Bills payable
Naught
32 Account payable
（1）
Unit：RMB
Items At end of term At beginning of term
Account payable 116,137,180.78 13,442,371.13
Total 116,137,180.78 13,442,371.13
（2）Account payable to shareholders holding 5% or over of the Company’s shares in the report period
□Applicable √Not applicable
Statement on payable accounts due for over one year
The payment for Shenzhen Baohao Company is RMB1,120,338.50, over1 year. This company didn’t urge. The payable amount for
New Ao gas company is RMB 3,928,391.61.Over 1 year, currently in consultation with this company about the repayment issues.
33. Received in advance
（1）
Unit：RMB
Items Balance in year-end Balance in year-begin
Received in advance 29,891,828.79 1,060,332.76
Total 29,891,828.79 1,060,332.76
（2）Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report period.
81
□Applicable √Not applicable
The description of large-sum accounts payable with the age over 1 year:
There is no large receivable amount within 1 year .
34. Employee salary of payable
Unit: RNB
Items Book Balance in Increase in the current Decrease in the current Book Balance in
year-begin period period year-end
1.Wages, bonuses,
allowances and 39,429.06 27,153,041.33 21,937,695.64 5,254,774.75
subsidies
2.Employee welfare 0.10 5,654,705.38 5,609,982.95 44,722.53
3. Social insurance
141,930.32 4,064,225.05 3,979,112.98 227,042.39
premiums
(1)Medical
1,128,142.61 1,128,142.61
insurance
(2)Basic old-age
insurance 57,630.62 2,466,149.60 2,399,849.37 123,930.85
premiums
(3) Unemployment
38,684.45 220,450.19 240,395.58 18,739.06
insurance
（ 4 ） Work injury
45,615.25 125,203.36 135,210.63 35,607.98
insurance
（ 5 ） Maternity
124,279.29 75,514.79 48,764.50
insurance
IV. Public reserves
1,159,283.88 1,048,165.23 111,118.65
for housing
V. Dismiss welfares 463,453.00 0.00 463,453.00 0.00
VI.Other 3,624,472.30 143,902.01 15,000.37 3,753,373.94
Union funds and
3,624,472.30 143,902.01 15,000.37 3,753,373.94
staff education fee
Total 4,269,284.78 38,175,157.65 33,053,410.17 9,391,032.26
The amounts of arrears of staff salary and welfare payable are RMB 0 00.
The amounts of trade union funds and staff education expenses are RMB3,753,373.94, the amounts of non-monetary benefits are
RMB 0.00, and the compensations for the lifting of labor relations is 0
35. Tax Payable
Unit：RMB
Items At end of term At beginning of term
VAT -9,369,273.43 -4,669,243.97
Consumption tax
Business Tax 13,192,940.85 3,906,947.41
Enterprise Income tax -29,755.35 1,150,287.77
Individual Income tax 14,201,479.51 -353.62
City Construction tax 886,086.35 258,340.72
House property Tax -121,144.94 16,159.01
Surcharge for education 261,632.27 140,898.20
Stamp tax 589,287.94 1,230.01
Total 19,611,253.20 804,265.53
36. Interest Payable
Unit：RMB
82
Items At end of term At beginning of term
Long-term loans interest of installment and interest
charge
Debenture interest
Short term loan interest payable 667,083.11 0.00
Total 667,083.11 0.00
37.Dividend payable
Naught
38.Other Payable
（1） Unit：RMB
Name At end of term At beginning of term
Other Payable 40,585,070.48 31,601,289.10
Total 40,585,070.48 31,601,289.10
（2）In the balance of other payable, there were no funds of shareholders holding 5% (including 5%) or more of
the voting right of the Company;
√ applicable □Not applicable
Unit：RMB
Name At end of term At beginning of term
Shijiazhuang Baoshi Electronic Group Co., Ltd. 13,644,405.08 0.00
Total 13,644,405.08 0.00
（3）Statement on large amount other payable accounts due for over one year
The other payable accounts, aging more than 1 year, come to RMB 21,405,216.27.
（4）Statement on large amount other payable accounts
Naught
39.Estimated liabilities
Naught
40. Non-current liabilities due within one year
Naught
41.Other current liabilities
Unit：RMB
Items Year-end balance Year-Beginning balance
USD exchange 63,009,000.00 63,009,000.00
Total 63,009,000.00 63,009,000.00
Note：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 RMB 58,000,000 exchanged in November 1998, As of June 30, 2012, the Group still consults with
the Exchange Unit on the returning of the exchange.
42. Long-term loan
（1）Long-term loans classifications
Naught
（2）The top five of long-term loans
Naught
43.Bond payable
Naught
44.Long-term payable
（1）Top 5 long-term payable
Naught
（2）Details of finance leasing payments in long-term payable
Naught
45.Special payable
Naught
46.Other Non-current liabilities
Unit：RMB
83
Items Year-end balance Year-beginning balance
Government subsidy 95,000.00 105,000.00
Land retuning fund 33,669,000.00 0.00
Total 33,764,000.00 105,000.00
Statement on other non-current liabilities, including asset-related and income-related government subsidy and closing balances:
Closing balance return of land according to the provisions of paragraph can not enter the benefits part of the donation for the
current period, Government subsidies provided for environmental protection funds allocated by the Government do not have access
to part of the profit or loss for the current period.
47. .Stock capital
Unit：RMB
Increase/decrease this time (+ , - )
Balance Balance
Year-beginning Issuing of new Bonus shares
Transferred
Other Subtotal year-end
share from reserves
Total of capital
383,000,000 0 383,000,000
shares
Statement of change in capital shares. Name of CPA and number of verification report shall be provided if capital increasing or
decreasing occurred in the report period; as for shareholding limited companies incorporated for less than three years, only net assets
is required for the years prior to incorporation; for shareholding limited companies reformed from limited companies shall provide
the capital verification at incorporation.
48.Shares in stock
Naught
49.Special reserves
Naught
50. Capital reserves
Unit：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 355,857,851.87 355,857,851.87
Other 31,522,375.26 31,522,375.26
Total 387,380,227.13 0.00 0.00 387,380,227.13
51. Surplus reserve
Unit：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 27,454,788.05 9,069,093.00 36,523,881.05
Optional surplus reserves
Preserved fund
Enterprise development fund
Other
Total 27,454,788.05 9,069,093.00 0.00 36,523,881.05
52.Providing of common risk provisions
Naught
53. Retained profits
Unit：RMB
Items Amount Extraction or distribution
of the proportion
Before adjustments: Retained profits at the
-565,356,251.87 --
period end
Adjustments: Total retained profits at the
-187.42 --
period beginning
After adjustments: Retained profits at the
-565,356,439.29 --
period beginning
84
Add：Net profit belonging to the owner of the
41,175,784.18 --
parent company
Less：Drawing statutory surplus reserve
Drawing discretionary surplus reserve 9,069,093.00
Drawing commonly risk provisions
Payable dividends of common shares
Transfer to common stock equity dividends
Retained profits at the period end -533,249,748.11 --
54. Business income, Business cost
（1）Business income, Business cost
Unit： RMB
Items Amount of current period Amount of previous period
Income from Business income 302,576,981.35 15,437,806.00
Other Business income 58,778,764.82 11,382,382.44
Business cost 193,280,345.36 29,645,303.24
（2）Main business（Industry）
√Applicable □Not applicable
Unit ：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Glass Plain tube sales income 276,881,231.97 125,963,789.00
Glass tube sale 5,480,526.00 4,224,274.96 11,800,350.01 14,658,237.70
Part sale 17,389,115.54 9,048,169.63 3,637,455.99 4,188,497.27
Construction installation 2,826,107.84 1,894,737.08
Total 302,576,981.35 141,130,970.67 15,437,806.00 18,846,734.97
（3）Main business（Production）
√Applicable □Not applicable
Unit ：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Glass Plain tube sales income 276,881,231.97 125,963,789.00
Glass tube sale 5,480,526.00 4,224,274.96 11,800,350.01 14,658,237.70
Part sale 17,389,115.54 9,048,169.63 3,637,455.99 4,188,497.27
Construction installation 2,826,107.84 1,894,737.08
Total 302,576,981.35 141,130,970.67 15,437,806.00 18,846,734.97
（4）Main Business（Area）
√Applicable □Not applicable
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Northeast 125,315,423.94 53,370,857.40
Southwest 79,595,000.00 36,919,986.56
Middle China 76,250,027.69 35,672,945.04
North China 21,416,529.72 15,167,181.67 15,437,806.00 18,846,734.97
Total 302,576,981.35 141,130,970.67 15,437,806.00 18,846,734.97
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
85
Name Business Income Proportion(%)
Dongxu（Yingko）Optoelectronic
120,700,000.00 33.4%
Display Co., Ltd.
Sichuan Xuhong Optoelectronic
84,210,400.00 23.3%
Technology Co., Ltd.
Zhengzhou Xufei Optoelectronic
76,250,027.69 21.1%
Technology Co., Ltd.
Dongxu Group. 8,085,897.44 2.24%
Shijiazhuang Baoshi Electronic
5,480,526.00 1.52%
Group Co., Ltd.
Total 294,726,851.13 81.56%
55. Contract income
□Applicable√ Not applicable
56. Business taxes and surcharges
Unit：RMB
Amount of current period Amount of previous
Items Project payment standard
period
Consumption tax
Business tax 9,714,941.79 333,882.18 5 or 3%
City construction tax 1,806,948.47 29,236.97 7%
Education surcharge 1,290,677.46 20,883.50 4%
Resource tax
Real estate tax 36,013.36 12%
Total 12,812,567.72 420,016.01 --
Statement on Business taxes and surcharges：
Real estate tax is the tax paid the Renting Property Bureau for renting out the real estate.
57.Income from fair value fluctuation
Naught
58. Investment income
（1）Income from investment
Naught
（2）Long-term equity investment gains on cost basis
Naught
（3）Long-term equity investment gains on equity basis
Naught
59. .Loss of assets impairment
Unit： RMB
Name Amount of current period Amount of previous period
1．Loss for bad debts -249,987.09 0.00
2．Loss for falling price of Inventory
3．Loss for devaluation of financial asset available for
sales
4．Loss for devaluation of held-to maturity investment
5．Loss for devaluation of long-term equity investment
6．Loss for devaluation of investing property
7．loss for devaluation of fixed assets
8．loss for devaluation of engineering materials
9．loss for devaluation of construction in progress
10．loss for devaluation
Of productive biological asset
11．loss for devaluation of oil asset
86
12．loss for devaluation of intangible asset
13．loss for devaluation of goodwill
14．other
Total -249,987.09 0.00
60. Non-operating income
（1）
Unit：RMB
Items Amount of current period Amount of previous period
Total income from liquidation of non-current assets 450.00 32,522.80
Including：Income from liquidation of fixed asset 450.00 32,522.80
Income of the sale of intangible assets
Debt restructuring profits
Non-monetary assets Exchange profits
Donation accepted
Government Subsidy 8,148.00 0.00
Other 310,552.96 15,982.10
Total 319,150.96 48,504.90
（2）Government subsidy list
Unit：RMB
Items Amount of current period Amount of previous Notes
period
Government returned new
Enterprise opened the 8,148.00 0.00
registration-related costs
Total 8,148.00 0.00 --
:
61. Non-operating expenses
Unit： RMB
Items Amount of current period Amount of previous period
Total Disposal of loss of non-current assets
Including：Disposal of net loss of fixed assets
Disposal of loss of Intangibles assets
Losses from debt restructuring
Non-monetary assets exchange losses
Donation expenses
Fine expenses 18,100.00 77,464.19
Net Loss of Non-current assets Disposition 40,938.22
Total 18,100.00 118,402.41
62. .Income tax expenses
Unit ：RMB
Items Amount of current period Amount of previous period
Income tax at current period according to taxation and related
31,597,490.41 61,049.68
regulation
Adjustment Deferred income tax
Total 31,597,490.41 61,049.68
87
63. Calculation process of basic earnings per share and dilute earning per share
Items Code January-June 2012 January-June 2011
Items P1 41,175,784.18 -9,850,826.53
Net profit attributable to shareholders of
F 51,063.87 69,897.51
parent company in the report period.
Net profit attributable to common share P2=P1-F
holders of the Company after deducting 41,124,720.31 -9,780,929.02
of non-recurring gain/loss
Influences of diluted items on the net P3 --
profit classed under the Company’s
common shareholders
Influences of diluted items on the net P4 --
profit classed under the Company’s
common shareholders after deduction of
non- frequent gains and losses
Total shares at the beginning of period S0 383,000,000 383,000,000
Shares increased for increase of shares S1 --
transferred from public reserve or for
share dividend distribution in the report
period
Shares increased for issuance of new Si --
shares or shares transferred from
liabilities in report period
Number of months from the next month Mi --
of share increase to the end of report
period
Shares decreased for buyback, etc .in Sj --
report period.
Number of months from the next month Mj --
of share decrease to the end of report
period
Shares shortened in report period Sk --
Number of months in report period M0 6 6
Weighted average number of common S=S0+S1+Si*Mi/M0-
shares issued externally Sj*Mj/M0-Sk
Add：Weighted average number of X1 --
common shares increased in condition
that the diluted potential common shares
are supposed transferred into issued
common shares
Weighted average number of common X2=S+X1
shares with diluted eps calculated
Including：Weighted average number of common shares increased --
from transfer of convertible corporate bonds
Weighted average number of common shares increased from --
equity warrant/stock equity implementation right
Weighted average number of common shares increased --
frombuyback promise implementation
Basic eps classed under the Company’s Y1=P1/S 0.11 -0.03
common shareholders
Basic eps classed under the Company’s Y2=P2/S
common shareholders after deduction of 0.11 -0.03
non-frequent gains and losses
Diluted eps classed under the Company’s Y3=（P1＋P3）
common shareholders 0.11 -0.03
/X2
Diluted eps classed under the Company’s Y4=（P2＋P4）
common shareholders after deduction of 0.11 -0.03
/X2
non-frequent gains and losses
88
64. Other comprehensive income
Naught
65.Cash flow statement Notes
（1）Cash received related to other operating activities
Unit：RMB
Items Amount
Cash received related to other operating activities 48,170,659.89
Total 48,170,659.89
（2） Cash paid related to other operating activities
Unit：RMB
Items Amount
Cash paid related to other operating activities 54,093,674.10
Total 54,093,674.10
（3） Cash received related to other investment activities
Unit：RMB
Items Amount
Cash received related to other investment activities
33,669,000.00
Total 33,669,000.00
（4）Cash paid related to other investment activities
Naught
（5）Cash received related to financing activities
Naught
（6）Cash paid related to financing activities
Naught
66. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Unit :RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit 89,858,790.78 -10,107,348.24
Add: Impairment loss provision of assets -249,987.09 0.00
Depreciation of fixed assets, oil and gas assets and
5,814,474.59 7,313,561.83
consumable biological assets
Amortization of intangible assets 322,430.45 163,606.86
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other
long-term deferred assets
Loss from Fixed assets Discard
Loss of fair value fluctuation on assets
Financial cost -430,453.87 27,990.75
Loss on investment
Decrease of deferred income tax assets
Increased of deferred income tax liabilities
Decrease of inventories -27,028,769.03 -4,068,005.89
Decease of operating receivables -287,857,220.88 -5,412,952.96
Increased of operating Payable 171,655,014.37 2,288,562.52
89
Other 506,279.97
Net cash flows arising from operating activities -47,915,720.68 -9,288,305.16
II. Significant investment and financing activities that
-- --
without cash flows:
Liability transfer to capital
Convertible corporate bond due within 1 year
Finance leased fixed assets
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 50,749,160.02 872,664.11
Less: Beginning balance of cash 15,847,225.73 10,211,579.96
Add: Ending balance of cash
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents 34,901,934.29 -9,338,915.85
（2）Information on acquiring or disposing subsidiary company and other business unit at this period.
Naught
（3）Composition of cash and cash equivalents
Unit：RMB
Items Amount of current period Amount of previous period
I. Cash 50,749,160.02 15,847,225.73
Of which: Cash in stock 746,529.72 227,397.85
Bank savings could be used at any time 50,002,630.30 15,619,827.88
Other monetary capital could be used at any time
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Of which: bond investment which will due in three months
III. Balance of cash and cash equivalents at the period end 50,749,160.02 15,847,225.73
67.Notes to statement of change in owners’ equity
Naught
（VIII）Accounting treatment of asset securitization
1. On the principal of asset securitization transactions and its accounting, bankruptcy, isolation provisions
Naught
2. The Company does not have controlled over but in fact assume the risk situation of special-purpose body
Naught
(IX). Related parties and related-party transactions
1. Parent company information of the enterprise
90
Unit：RMB
Vote right ratio
Share ratio of
Parent Legal of parent
Related Enterprise Business parent company Ultimate controlling
company Registration place represent Registered capital Currency company Organization code
parties type character against the party
name ative against the
company(%)
company(%)
Shijiazhu 9 Huanghe Road,
ang Shijiazhuang
Holding
Baoshi Limited High-tech Industrial Li
Sharehold Production 850,000,000.00 CNY 28.93% 28.93% Li zhaoting 10441204-2
Electroni Liability Development Area, Zhaoting
er
c Group Shijiazhuang, Hebei
Co., Ltd. Province
2. Subsidiary companies information of the enterprise
Unit:RMB
Subsidiary Share
Full name of Enterprise Legal Vote right
company Registration place Business character Registered capital Currency holding Organization code
subsidiary company type representative ratio (%)
type ratios(%)
Hebei Xubao 9 Huanghe Road, Shijiazhuang
Construction Controlling Limited High-tech Industrial Construction
Li Zhaoting 8,000,000.00 CNY 100% 100% 564858483
Installation subsidiary Liability Development Area, Installation
Engineering Co., Ltd. Shijiazhuang, Hebei Province
9 Huanghe Road, Shijiazhuang
Shijiazhuang Color Controlling Limited High-tech Industrial
Shang Jianbin Production 540,680,000.00 CNY 81.26% 81.26% 236042258
Bulb Co., Ltd. subsidiary Liability Development Area,
Shijiazhuang, Hebei Province
Wuhu Dongxu Other
3/F, Wuhu Economy
Optoelectronic Controlling Limited
Technology Development Li Zhaoting Manufacturing 10,000,000.00 CNY 51% 51% 58723108-5
Equipment subsidiary Liability
Zone, Management Committee
Technology Co., Ltd. Company
Personal lim
Wuhu Dongxu 3/F, Wuhu Economy
Controlling ited
Optoelectronic Technology Development Li Zhaoting Manufacturing 5,000,000.00 CNY 100% 100% 58723116-5
subsidiary liability com
Technology Co., Ltd. Zone, Management Committee
pany
91
Shijiazhuang Dongxu 9 Huanghe Road, Shijiazhuang
Other
Optoelectronic Controlling High-tech Industrial
Limited Li Zhaoting Manufacturing 10,000,000.00 CNY 51% 51% 58817255-8
Equipment subsidiary Development Area,
Liability
Technology Co., Ltd. Shijiazhuang, Hebei Province
Wuhan Dongxu
Controlling Limited
Optoelectronic Wuhan, Hubei Li Zhaoting Manufacturing 5,000,000.00 CNY 62.5% 62.5% 591083046
subsidiary Liability
Technology Co., Ltd.
3. Joint-venture and affiliated enterprises information of the company
Naught
92
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the company Organization code
Shijiazhuang Baoshi Electronic vacuum Glass Co.,
Controlled by the same parent company 601903109
Ltd.
Shijiazhuang Baoshi Large-diameter plastic tube Co.,
Controlled by the same parent company 700820907
ltd.
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape
Controlled by the same parent company 601125212
Co., Ltd.
Shijiazhuang Baoshi Xuming Tube Co., Ltd. Controlled by the same parent company 723378699
Shijiazhuang Baodong Electronic Co.,Ltd. Controlled by the same parent company 601008876
Hebei Baoshi Lighting Co., Ltd. Controlled by the same parent company 662202883
Shijiazhuang Xuxin Optoelectronic Technology Co.,
Controlled by the same parent company 694655991
Ltd.
Controlled by the parent company key management
Dongxu Group 768130363
personnel of the company
5. Related Transactions
（1）The providing service/sells goods
Unit： RMB
Occurred current term Occurred in previous term
Pricing and Percentag Percentag
Subjects of the related e in e in
Related parties decision making
transactions Amount similar Amount similar
process
trades trades
（%） （%）
Shijiazhuang Baoshi
Material,merchandise Reference price
Electronic Group 1,117,737.74 4.77%
inentory setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group Process expenses 50,225.21 100% 257,400.00 100%
setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group Services 1,885,000.00 100%
setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group Labour received 1,916,042.35 100%
setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group Energy 2,392,034.16 100% 9,687,916.95 100%
setting
Co., Ltd.
Sales of goods and services
Unit：RMB
Occurred current term Occurred in previous term
Pricing and
Subjects of the related Percentage in Percentage in
Related parties decision making
transactions Amount similar trades Amount similar trades
process
（%） （%）
Dongxu( Yingkou) Equipment for High-e Reference price
120,700,000.00 43.19%
Optoelectronic nd display production l setting
93
Display Co., Ltd. ine
High-end display prod
Sichuan Xuhong
uction line， technolo Reference price
Optoelectronic 82,515,400.00 29.53%
gy services,, manually setting
Technology Co., Ltd.
installation services
High display parts
Zhengzhou Xufei production line
Reference price
Optoelectronic technology services,, 76,250,027.69 27.28%
setting
Technology Co., Ltd. Lobour Installation
services
Shijiazhuang Baoshi
Reference price
Electronic Group High-lead Bulb 6,412,215.42 100% 18,953,404.80 78%
setting
Co., Ltd.
Shijiazhuang Baoshi
Material,merchandise Reference price
Electronic Group 12,682,092.03 100%
inentory setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group Labour 23,059,010.35 19.51% 48,676.21 100%
setting
Co., Ltd.
Reference price
Dongxu Group A-frame 4,940,000.00 51.27% 13,348,340.09 100%
setting
Shijiazhuang
Reference price
Dongxu Machine A-frame 3,000,000.00 31.14%
setting
Co., Ltd.
Sichuan Xuhong
Reference price
Optoelectronic A-frame 1,695,000.00 17.59%
setting
Technology Co., Ltd.
Overflow brick Reference price
Dongxu Group 1,361,500.00 33.33% 11,636,752.14 100%
processing setting
Shijiazhuang Baoshi
Reference price
Electronic vacuum Labour 1,550,000.00 100%
setting
Glass Co., Ltd.
Reference price
Dongxu Group Processing services 95,299.15
setting
Construction Reference price
Dongxu Group 2,700,000.00 90.82% 9,552,445.60 67.98%
installation,labour setting
Shijiazhuang Baoshi
Construction Reference price
Electronic Group 79,000.00 2.66% 4,483,444.99 31.91%
installation,labour setting
Co., Ltd.
Shijiazhuang Baoshi
Construction Reference price
Large-diameter 151,900.00 6.42% 15,769.29 0.11%
installation,labour setting
plastic tube Co., ltd.
Hebei Baoshi Energy
Reference price
saving lighting labour 9,529.91
setting
technology Co., Ltd.
Shijiazhuang Baoshi
Reference price
Electronic Group labour 3,096,782.91 100% 7,861,669.84 100%
setting
Co., Ltd.
Shijiazhuang Baoshi
Reference price
Zhonghe Steel labour 752.14
setting
Plastic Shape Co.,
94
Ltd.
Baodong Electronic Labour and sales Reference price
166,337.03 100% 124,883.52 100%
Co.,Ltd. Goods setting
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
Unit：RMB
Amount of Nature of Gains
Termi
the asset the asset from the Influence of
Name of the Asset situation of Start natin
Name of the employer to be to be Pricing basis deal in the gains on
undertaker the undertaker date g
undertake undertake report the Company
date
n n period
Trusteeship costs include
Dongxu Group basic management fees and
Co.,Yingko Yanhai incentive management fees,
Dongxu Other
Development Shijiazhuang Baoshi including basic management Increased of
（Yingko） assets
Construction Co., Ltd., Electronic Glass fee of 1 million per year, company
Optoelectronic trusteeshi
Minerals (Yingko) Co., Ltd. incentive management fees income
Display Co., Ltd. p
Industry Park per year managed company
Development Co., Ltd. with net operating profit after
tax of 5% calculation
Trusteeship costs include
basic management fees and
Dongxu Optoelectrnic
incentive management fees,
Investment Co.,
Zhenzhou Xufei Other including basic management
Ltd.,Henan State-owned Shijiazhuang Baoshi Increased of
Optoelectronic assets fee of RMB 1 million per
Assets Management Co., Electronic Group company
Technology Co., trusteeshi year, incentive management
Ltd.,Zhengzhou Co., Ltd. income
Ltd. p fees per year managed
Investment Holdings
company with net operating
Co., Ltd.
profit after tax of 5%
calculation
Trusteeship costs include
basic management fees and
Dongxu Group Co., incentive management fees,
Mianyang Investment Sichuang Xuhong Other including basic management
Shijiazhuang Baoshi Increased of
Development (Group) Optoelectronic assets fee of RMB 1 million per
Electronic Glass company
Co., Ltd., Sichuan Technology Co., trusteeshi year, incentive management
Co., Ltd. income
Changhong Electrical Ltd. p fees per year managed
Co., Ltd. company with net operating
profit after tax of 5%
calculation
Trusteeship costs include
basic management fees and
Shijiazhuang Baoshi
incentive management fees,
Electronic Group Co., Shijiazhuang
Other including basic management
Ltd.,Shijiazhuang High Shijiazhuang Baoshi Xuxin Increased of
assets fee of RMB 1 million per
Lanhu Investment Co., Electronic Glass Optoelectronic company
trusteeshi year, incentive management
Ltd., Shijiazhuang State Co., Ltd. Technology Co., income
p fees per year managed
Holding Investment Co., Ltd.
company with net operating
Ltd.
profit after tax of 5%
calculation
Related trusteeship or outsourcing in which the Company is the employer
Naught
Notes:
95
In the report period, Entrusted with the management of Dongxu(Yingkou) Optoelectronic display Co., Ltd., Zhengzhou Xufei
Optoelectronic Technology Co., Ltd. , Sichuan Xuhong Optoelectronic Technology Co., Ltd., Shijiazhuang Xuxin Optoelectronic
Technology Co., Ltd. right.
On December 2011, Dongxu Group, and Dongxu Optoelectronic Investment Co., Ltd. and Shijiazhuang Baoshi Electronic Group
Co., Ltd. responsibility company has and company signed has equity managed agreement, respectively will its holds
Dongxu(Yingkou) Optoelectronic Display limited 60% of equity, and Sichuan Xuhong Optoelectronic Technology Co., Ltd. 51% of
equity, and Zhengzhou Xufei Optoelectronic Technology Co., Ltd. 40% of equity and Shijiazhuang Xuxin Optoelectronic
Technology Co., Ltd. limited 50% of equity delegate to company management.
（3）Related leasing
The Company is the lender
Unit：RMB
Categor Rental Influence of
Description Amount of
Name of the Name of the y of Starting Pricing recognized the rental
of the asset to be Stop date
owner tenant asset for date basis in the on the
property leased
rent period Company
Shijiazhuang
Shijiazhuan
Baoshi
g Color September July 31, Lease Income
Electronic House 802,632.00
Bulb Co., 1, 1999 2017 contract increase
vacuum Glass
Ltd.
Co., Ltd.
Shijiazhuan Shijiazhuang
g Baoshi Baoshi
August 1, July 31, Lease Income
Electronic Electronic House 150,148.35
1999 2017 contract increase
Glass Co., vacuum Glass
Ltd. Co., Ltd.
Shijiazhuan
Shijiazhuang
g Baoshi
Baoshi August 1, July 31, Lease Income
Electronic House 150,160.00
Electronic 2008 2013 contract increase
Glass Co.,
Group Co., Ltd.
Ltd.
Shijiazhuan Shijiazhuang
g Baoshi Baoshi
June 15, June 15, Lease Income
Electronic Large-diameter Land 49,950.00
1998 2010 contract increase
Glass Co., plastic tube
Ltd. Co., ltd.
Shijiazhuan Shijiazhuang
g Baoshi Baoshi
August 1, July 31, Lease Income
Electronic Large-diameter House 17,950.00
2008 2013 contract increase
Glass Co., plastic tube
Ltd. Co., ltd.
Shijiazhuan Shijiazhuang
g Baoshi Baoshi
January 1, December Lease Income
Electronic Zhonghe Steel House 504,663.50
2010 31, 2011 contract increase
Glass Co., Plastic Shape
Ltd. Co., Ltd.
Shijiazhuan
g Baoshi Shijiazhuang
January 1, December Lease Income
Electronic Baoshi Xuming House 335,675.75
2010 31, 2011 contract increase
Glass Co., Tube Co., Ltd.
Ltd.
Shijiazhuan Hebei Baoshi
August 1, July 31, Lease Income
g Baoshi Energy saving House 176,591.50
2008 2013 contract increase
Electronic lighting
96
Glass Co., technology Co.,
Ltd. Ltd.
Shijiazhuan Hebei Baoshi
g Baoshi Energy saving
January 1, December Lease Income
Electronic lighting House 0.00
2010 31, 2011 contract increase
Glass Co., technology Co.,
Ltd. Ltd.
Shijiazhuan
Shijiazhuang House
g Baoshi
Baoshi October 1, Income
Electronic Agreement 810,782.50
Electronic 2008 increase
Glass Co.,
Group Co., Ltd.
Ltd.
Shijiazhuan Shijiazhuang
g Baoshi Shijiazhuang
Equipme October 1, Income
Electronic Baoshi Agreement 137,301.29
nt 2008 increase
Glass Co., Electronic
Ltd. Group Co., Ltd.
The Company is the undertaker
Unit：RMB
Rental Influence of
Category of Description Amount of
Name of the Name of the Starting Pricing recognized the rental
asset for of the asset to be Stop date
owner tenant date basis in the on the
rent property leased
period Company
Shijiazhuan
Shijiazhuan
g Baoshi
g Baoshi
Electronic August 1, July 31, Lease
Electronic House
vacuum 2011 2014 contract
Glass Co.,
Glass Co.,
Ltd.
Ltd.
Shijiazhuan Shijiazhuan
g Baoshi g Baoshi
August 1, July 31, Lease
Electronic Electronic Equipment 900,000.00
2011 2014 contract
Glass Co., Glass Co.,
Ltd. Ltd.
Statement on related leasing
（4）Status of related party guarantee
Naught
（5）Related party funds
Related parties Amount of demolition Start date Expired on Remarks
Bonow in
Shijiazhuang Baoshi
10,000,000.00 March 20, 2012 March 21, 2012
Electronic Group Co., Ltd.
Lend out
（6）The information of asset transfer, debt restructured of the related parties
Naught
6. Account receivable and payable of related parties
The account receivable of related parties of the company
97
Unit ：RMB
Name Related parties Year-end balance Year-beginning balance
Account receivable Dongxu( Yingkou) Optoelectronic Display Co., Ltd. 91,219,046.01
Account receivable Zhengzhou Xufei Optoelectronic Technology Co., Ltd. 76,250,027.69
Account receivable Shijiazhuang Baoshi Electronic Group Co., Ltd. 575,572.85
Account receivable Shijiazhuang Dongxu Machine Co., Ltd. 2,100,000.00
Account receivable Sichuang Xuhong Optoelectronic Technology Co., Ltd. 83,695,000.00
Account receivable Dongxu Group 4,963,602.00 7,512,102.00
Other Account
Shijiazhuang Baoshi Xuming Tube Co., Ltd. 335,097.90 1,633,773.72
receivable
Other Account
Shijiazhuang Baoshi Electronic Group Co., Ltd. 15,364,907.30
receivable
Other Account
Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. 16,100.00 7,875,437.00
receivable
Other Account
Shijiazhuang Baodong Electronic Co., Ltd. 1,541,509.20
receivable
Other Account
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. 504,663.50 5,570,797.82
receivable
Other Account
Hebei Baoshi Energy saving lighting Technology Co., Ltd. 176,591.50 1,437,075.81
receivable
Other Account
Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. 3,697,361.38
receivable
Prepayable account Shijiazhuang Baoshi Xuming Tube Co., Ltd. 170,000.00 170,000.00
Prepayable account Hebei Baoshi Energy saving lighting technology Co., Ltd. 18,000.00 18,000.00
Account payable to related parties
Unit：RMB
Projects Related parties Year-end balance Year-beginning balance
Account payable Shijiazhuang Dongxu Machine Co., Ltd. 5,634.72 13,590.72
Account payable Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. 4,809,913.31
Advance account Shijiazhuang Dongxu Machine Co., Ltd. 900,000.00
Other payable Shijiazhuang Baoshi Electronic Group Co., Ltd. 13,644,405.08 10,619,579.12
Other payable Shijiazhuang Baoshi Xuming Tube Co., Ltd. 97,031.00
Other payable Jinzhou Xulong Solar energy Technology Co., Ltd. 1,500,000.00
(X). Share payment
1.Overall situation of share payment
Naught
2.Share payment settled in term of equity
Naught
3.Share payment settled by cash
Naught
4.Service paid by shares
Naught
98
5.Revising and termination of share payment
Naught
(XI) Subsequent events
1. Liabilities formed from pending lawsuit and mediation and its financial impact
Naught
2. For other units to provide debt guarantees, forming of contingent liabilities and the financial impact.
Naught
(XII). Commitment events.
1.Importance commitment events
The commitments made by Mr.Li Zhaoting, Dongxu Group, Dongxu Optoelectronic Investment Co., Ltd. in 4,2012：
1.From the date of commitment letter issued, entrusted to the Baoshi shares outside the managed hosting company, this company
(person) and majority-owned subsidiaries do not in any way, directly or indirectly, engaged in business and gem shares and its
subsidiaries are the same, or similar, future gem shares and its subsidiaries are not engaged in the same or similar businesses.
2.The company (person) assurances against the use of precious stones share any act prejudicial to the control relationship of
stones share interests and its wholly-owned subsidiaries, holding, or causing Baoshi shares and its wholly-owned subsidiaries,
holding form business competition decisions.
3.The company (person) will not directly invest, purchase and Baoshi shares identical or similar business enterprises and projects.
4.If the assets owned by the company due to any reason in the future competition with Baoshi shares, the company (person) will
take positive and effective measures to give up such a competitive business.
5. If the company (person) cause competition with Baoshi shares and caused loss of gem shares, the company (person) will
assume responsibility for all related.
6. Subject to securities regulation under the relevant conditions, the company (person) commitment will be entrusted to Baoshi
shares held by managed hosting companies injected full ownership of shares in Baoshi Shares.
The Commitments will be effective during the company (person) is still the controlling shareholders of shares of Baoshi Shares (the
actual controller)
2. Information guaranteed at the former period.
Stringent Perform .
(XIII). Post-balance-sheet events
1. Statement on material post-balance-sheet events
Naught
2.Statement on profit distribution in post balance sheet period
Naught
3.Statement on other issues in post balance sheet period
Naught
(XIV). Other Important events
1. Non-monetary asset exchange
Naught
2. Liabilities recombination
Naught
3. Enterprise consolidation.
99
Naught
4. Leasing
Naught
5. Financial instruments issued outside and can be transferred to stock at end period.
Naught
6. Annuity Plan content and significant changes
Naught
7. Other important disclosure matters
Naught
(XV).Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
Unit：RMB
Year-end balance Year-beginning balance
Book Balance Provision for bad debts Book Balance Provision for bad debts
Type
Proportio Proporti Proporti Proporti
Amount n% Amount on% Amount on% Amount on%
Receivables with major
individual amount and bad
debt provision provided
individually receivables
20,423,415.56 58.79% 20,423,415.56 100% 20,423,415.568 60.1% 20,423,415.56 100%
with major individual
amount and bad debt
provision provided
individually
Receivables provided bad debt provision in groups
The receivables that the
individual amount is not 11,207,603.09 32.26% 10,244,977.45 30.15%
large but the risk is great
Subtotal of group 11,207,603.09 32.26% 10,244,977.45 30.15%
Account receivable with
minor individual amount
3,106,031.72 8.95% 3,106,031.72 100% 3,314,718.81 9.75% 3,314,718.81 100%
but bad debt provision is
provided
Total 34,737,050.37 -- 23,529,447.28 -- 33,983,111.82 -- 23,738,134.37 --
Receivable accounts with large amount individually and bad debt provisions were provided.
√Applicable □Not applicable
Unit：RMB
Description of the receivable accounts Book balance Bad debt provision Rate Reason to provide
Baoshi process Plant 921,915.24 921,915.24 100% Can't withdraw
Baoshi TV Factory 6,661,700.00 6,661,700.00 100% Can't withdraw
City Lingchao Trading Company 1,001,600.00 1,001,600.00 100% Can't withdraw
Anyang Xinyi Electronic Glass Co., Ltd. 3,796,390.00 3,796,390.00 100% Can't withdraw
Tianjing Anjing Electronic Glass Co., Ltd 8,041,810.32 8,041,810.32 100% Can't withdraw
100
Total 20,423,415.56 20,423,415.56 -- --
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions：
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit ：RMB
Name Book balance Amount of bad debt
The receivables that the individual
11,207,603.09 0.00
amount is not large but the risk is great
Total 11,207,603.09 0.00
In the current report period, Separate amount is not large, the account receivable with big combination risk after
combined via risk character:
√Applicable □Not applicable
Unit ：RMB
Description Of Account receivables Book balance Amount of bad debt rate reason
Tianjing Communication Tadio Company 570,000.00 570,000.00 100% Can't withdraw
Shijiazhuang Radio and TV Company. Economic
483,604.75 483,604.75 100% Can't withdraw
Department
Henan Anfei Electronic Glass Co., Ltd. 96,912.77 96,912.77 100% Can't withdraw
Baoshi Trading Company 269,792.40 269,792.40 100% Can't withdraw
Tianjing Jingjing Glass Bulb Co., Ltd. 266,960.00 266,960.00 100% Can't withdraw
Xingji Industry product marketing—Ji Weiying 220,000.00 220,000.00 100% Can't withdraw
Puyang Baoshi Glass Co., Ltd. 186,050.75 186,050.75 100% Can't withdraw
Meng Jun 161,125.00 161,125.00 100% Can't withdraw
Shanxi Huguang Five cross station 101,200.00 101,200.00 100% Can't withdraw
Shuping Home Appliances 74,070.00 74,070.00 100% Can't withdraw
Anyang Radio tube Factory 68,486.00 68,486.00 100% Can't withdraw
Shijida Design 60,000.00 60,000.00 100% Can't withdraw
Shahe Town Enterprises industrial Supply Company 56,400.00 56,400.00 100% Can't withdraw
Shenzhen Dimotai Industry Company 56,244.44 56,244.44 100% Can't withdraw
Anyang Dali Electronic Company 45,006.00 45,006.00 100% Can't withdraw
Zhang Jinjiang 42,500.00 42,500.00 100% Can't withdraw
Huaneng Company 42,000.00 42,000.00 100% Can't withdraw
101
Xinxiang Industry and trade 36,960.00 36,960.00 100% Can't withdraw
Xinle People Security
33,600.00 33,600.00 100% Can't withdraw
Dept
Tiangong Technology 30,000.00 30,000.00 100% Can't withdraw
Baibo Trading Company 30,000.00 30,000.00 100% Can't withdraw
Jiangshu Metal & chemical 27,435.00 27,435.00 100% Can't withdraw
Shixinsheng Industry Company 27,050.00 27,050.00 100% Can't withdraw
Hebei Yiling Machine Manufacture Factory 22,500.00 22,500.00 100% Can't withdraw
Shanxi Chengzhi Chemical station 20,840.00 20,840.00 100% Can't withdraw
Other 77,294.61 77,294.61 100% Can't withdraw
Total 3,106,031.72 3,106,031.72 100% --
（2）Switch back or regain of the account receivable in the reporting period
Naught
（3）Receivable accounts actually written off in the report period
There were no receivables written off in this reporting period.
（4）Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s shares in
the report period
□Applicable√ Not applicable
（5）Natures or contents of receivable accounts with large amount
Naught
（6） The front 5 units’ information of the account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Tianjing Anjing
Non-Related parties 8,041,810.32 Over 3 years 23.15%
Electronic Glass Co., Ltd
Baoshi TV Factory Non-Related parties 6,661,700.00 Over 3 years 19.18%
Shijiazhuang Dongxu
Optoelectronic
Controlling Subsidiary 3,863,000.00 Within 1 year 11.12%
Equipment Technology
Co., Ltd.
Anyang Xinyi Electronic
Non-Related parties 3,796,390.00 Over 3 years 10.93%
Glass Co., Ltd.
Hebei Shengshi Machine
Non-Related parties 2,254,566.49 Within 1 year 6.49%
Tools Group Co., Ltd.
Total -- 24,462,900.32 -- 70.42%
（7）Account receivable from Related affiliated parties
Unit：RMB
Unit name Relation with the company Amount Percentage of account receivable
Dongxu Machine Equipment Co., Related parties 2,100,000.00 6.05%
102
Ltd.
Sichuan Xuhong Optoelectronic
Related parties 395,000.00 1.14%
Technology Co., Ltd.
Dongxu Group Related parties 1,363,602.00 3.93%
Total -- 3,858,602.00 11.12%
（8）Account receivable that is not accord with expiration confirmation condition
（9）Account receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions.
Naught
2.Other receivable
（1）Other receivable
Unit：RMB
Year-end balance Year-beginning
Provision for bad
Book balance Book balance Provision for bad debts
debts
Classification
Propo
Proporti Proportion Proportion
Amount Amount rtion( Amount Amount
on(%) (%) (%)
%)
Other Receivables with
major individual amount and
3,930,418.78 4.62% 3,930,418.78 100% 3,930,418.78 14.6% 3,930,418.78 100%
bad debt provision provided
individually
Other Receivables provided bad debt provision in groups
Other receivables that the
individual amount is not 78,877,896.33 92.78% 20,745,751.98 77.06%
large but the risk is great
Subtotal of group 78,877,896.33 92.78% 20,745,751.98 77.06%
Other Account receivable
with minor individual
2,205,133.80 2.6% 2,205,133.80 100% 2,246,433.80 8.34% 2,246,433.80 100%
amount but bad debt
provision is provided
Total 85,013,448.91 -- 6,135,552.58 -- 26,922,604.56 -- 6,176,852.58 --
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Description Of other receivables Book balance Amount of bad debts Rate Reason
Shijiazhuang Baoshi Electronic
Group Industry & trading 1,544,512.64 1,544,512.64 100% Can't withdraw
Company
Henan Anfei Electronic Co., Ltd. 1,094,333.29 1,094,333.29 100% Can't withdraw
Shijiazhuang Baoshi Electronic
Group Industry & trading 470,281.48 470,281.48 100% Can't withdraw
Company, Mineral water Plant
Puyang Baoshi Glass Co., Ltd. 416,930.75 416,930.75 100% Can't withdraw
New century Capsule 404,360.62 404,360.62 100% Can't withdraw
103
Total 3,930,418.78 3,930,418.78 -- --
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions：
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Name Book balance Amount of bad debts
Other receivable accounts with minor amount but
were provided had debt provisions individually at end 78,877,896.33 0.00
of period.
Total 78,877,896.33 0.00
Separate amount is big at end of the period or not big but other account receivable and doubtful reserves shall be withdrawn.
√Applicable □Not applicable
Unit：RMB
Description Of other receivables Book balance Amount of bad debts Rate Reason
Tianjihng Electronic Instrument import & export
266,745.75 266,745.75 100% Can't withdraw
Company
City Sida 241,350.00 241,350.00 100% Can't withdraw
Shenzhen SEG Zhongkang Co., Ltd. 161,568.10 161,568.10 100% Can't withdraw
Advances transferred 147,557.46 147,557.46 100% Can't withdraw
Guizhou Xingqian Union Antimony Products
120,000.00 120,000.00 100% Can't withdraw
Company
Picture tube Plant 111,521.59 111,521.59 100% Can't withdraw
Baohao Company 108,730.00 108,730.00 100% Can't withdraw
Zhao Junqing 106,863.00 106,863.00 100% Can't withdraw
Xu Xin 100,000.00 100,000.00 100% Can't withdraw
Provincial Software Center 61,035.00 61,035.00 100% Can't withdraw
Zhao Junqing 60,000.00 60,000.00 100% Can't withdraw
Jinzhou Tube mould Factory 50,001.34 50,001.34 100% Can't withdraw
Xinxiang Lifting Equipment Plant 46,200.00 46,200.00 100% Can't withdraw
Electric cars into 43,366.86 43,366.86 100% Can't withdraw
Capsule plant 42,269.23 42,269.23 100% Can't withdraw
Reserve fund 41,300.00 41,300.00 100% Can't withdraw
Shanghai Sea Electrical Store 40,426.00 40,426.00 100% Can't withdraw
Thermal Plant 38,735.55 38,735.55 100% Can't withdraw
Xinjiang Nonferrous metal industry Company 37,122.88 37,122.88 100% Can't withdraw
Shenyang Zhongje Friendship plant 35,969.53 35,969.53 100% Can't withdraw
Pingshan Ore processing plant 35,461.95 35,461.95 100% Can't withdraw
104
Xianyang Caihong Machine Plant 30,575.00 30,575.00 100% Can't withdraw
Dongan Company 27,640.04 27,640.04 100% Can't withdraw
Shijiazhuang Graphite electrode plant, Specialty
25,000.00 25,000.00 100% Can't withdraw
graphite products factory
Zhengding Xizhaotong 23,000.00 23,000.00 100% Can't withdraw
Supply Dept 22,294.41 22,294.41 100% Can't withdraw
Provincial Second construction Company, No.5 Dept 20,000.00 20,000.00 100% Can't withdraw
Yangzhou Asia-Pacific Special Pump Factory 19,880.00 19,880.00 100% Can't withdraw
Shanghai HongJiang Automation instrument Factory 18,335.60 18,335.60 100% Can't withdraw
Shi Souzhi 18,014.60 18,014.60 100% Can't withdraw
Insulator 15,280.40 15,280.40 100% Can't withdraw
Benxi Mining Rubber Parts Factory 14,250.00 14,250.00 100% Can't withdraw
Tianjing Liffing Equipment Plant ,Product
13,400.20 13,400.20 100% Can't withdraw
maintenance Dept
Zhongxing store 10,000.00 10,000.00 100% Can't withdraw
Nantian Union Electrical Equipment Factory 10,000.00 10,000.00 100% Can't withdraw
Shanghai Hangtong Electrical & mechanical Company 8,613.98 8,613.98 100% Can't withdraw
Pingshan Material Plant 8,602.16 8,602.16 100% Can't withdraw
Oxygen air separation equipment engineering
8,573.55 8,573.55 100% Can't withdraw
Company
Baofa Supervision Company 5,760.00 5,760.00 100% Can't withdraw
Han Xuming 5,500.00 5,500.00 100% Can't withdraw
Other 4,189.62 4,189.62 100% Can't withdraw
Total 2,205,133.80 2,205,133.80 100% --
（2）Switch back or regain of the other account receivable in the reporting period
Naught
（3）Other receivable accounts actually written off in the report period
Naught
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company’s
shares in the report period
√ applicable □Not applicable
Unit：RMB
Balance at the period end Balance in year-begin
Name
Amount Proportion(%) Amount Proportion(%)
Shijiazhuang Baoshi Electronic
15,364,907.30 0.00 0.00 0.00
Group Co., Ltd.
Total 15,364,907.30 0.00 0.00 0.00
（5）Natures or contents of other receivable accounts with large amount
Naught
（6） The front 5 units’ information of Other account receivable
Unit：RMB
105
Portion in total
Name Relation with the Company Amount Ages other receivables
(%)
Shijiazhuang Dongxu Optoelectronic
Controlling Subsidiary 61,000,000.00 With in 6 monthes 71.75%
Equipment Technology Co., Ltd.
Shijiazhuang Baoshi Electronic Group
Controlling shareholder 15,364,907.30 With in 1 year 18.07%
Co., Ltd.
Shijiazhuang Baoshi Electronic Group
Not- Related parties 1,544,512.64 Over 3 years 1.82%
Industry & Trade Company
Henan Anfei Electronic Co., Ltd. Not- Related parties 1,094,333.29 Over 3 years 1.29%
Shijiazhuang Baoshi Zhonghe Related parties 504,663.50 With in 6 monthes 0.59%
Total -- 79,508,416.73 -- 93.52%
（7）Other Account receivable from Related affiliated parties
Unit：RMB
Unit name Relation with the company Amount Percentage of account receivable
Shijiazhuang Baoshi
Controlling shareholder 15,364,907.30 18.07%
Electronic Group Co., Ltd.
Shijiazhuang Baoshi Xuming
Related parties 335,097.90 0.39%
Tube Co., Ltd.,
Shijiazhuang Baoshi Zhonghe
Related parties 504,663.50 0.59%
Steel Plastic Shape Co., Ltd.
hebei Lighting Co., Ltd. Related parties 176,591.50 0.21%
Shijiazhuang Baoshi
Large-diameter plastic tube Related parties 16,100.00 0.02%
Co., Ltd
Total -- 16,397,160.20 19.29%
（8）Account receivable that is not accord with expiration confirmation condition
（9）Account receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions.
Naught
3. .Long –term stocks equity investment
Unit：RMB
Explanation of
Voting diffidence between
Accounti Initial Shareholding right shareholding
Original Ending Current Cash
Name ng investmen change proportion in proportion proportion and Devalue
balance Balance devalue bonus
method t cost the investee in the voting right
investee proportion in
investee
Shijiazhu
ang
Baoshi Cost 439,341,9 439,341,9 61,169,3 378,172,649.
81.26% 81.26%
Color method 56.80 56.80 06.96 84
Bulb Co.,
Ltd.
Hebei
Xubao
Cost 8,000,000 8,000,000 8,000,00
Construct 100% 100%
method .00 .00 0.00
ion
Engineeri
106
ng
Installatio
n Co.,
Ltd.
Shijiazhu
ang
Baolihua
Equity 200,000.0 200,000.0 150,000.
Technolo 40% 40% 50,000.00
Method 0 0 00
gy &
trading
Co., Ltd.
Wuhu
Dongxu
Optoelect
ronic
Cost 5,100,000 5,100,000 5,100,00
Equipme 51% 51%
method .00 .00 0.00
nt
Technolo
gy Co.,
Ltd.
Wuhu
Dongxu
Optoelect
Cost 5,000,000 5,000,000 5,000,00
ronic 100% 100%
method .00 .00 0.00
Technolo
gy Co.,
Ltd.
Wuhan
Dongxu
Optoelect
Cost 3,125,000 3,125, 3,125,00
ronic 62.5% 62.5%
method .00 000.00 0.00
Technolo
gy Co.,
Ltd.
457,641,9 439,541,9 3,125, 825,443, 378,222,649.
Total -- -- -- --
56.80 56.80 000.00 063.96 84
4. Business income and Business cost
（1）Business income and business cost
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 22,869,641.54 15,437,806.00
Other Business income 57,829,240.47 7,275,188.72
Business cost 66,638,502.22 26,538,225.06
Total 147,337,384.23 49,251,219.78
（2）Main business（Industry）
√Applicable□not Applicable
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
107
Glass tube Sales 5,480,526.00 4,224,274.96 11,800,350.01 14,658,237.70
Part Sales 17,389,115.54 11,632,389.29 3,637,455.99 4,188,497.27
Total 22,869,641.54 15,856,664.25 15,437,806.00 18,846,734.97
（3）Main business（Production）
√Applicable□not Applicable
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Glass tube Sales 5,480,526.00 4,224,274.96 11,800,350.01 14,658,237.70
Part Sales 17,389,115.54 11,632,389.29 3,637,455.99 4,188,497.27
Total 22,869,641.54 15,856,664.25 15,437,806.00 18,846,734.97
（4）Main Business（Area）
√Applicable□not Applicable
Unit：RMB
Name Amount of current period Amount of previous period
Business income Business cost Business income Business cost
North China 22,869,641.54 15,856,664.25 15,437,806.00 18,846,734.97
Total 22,869,641.54 15,856,664.25 15,437,806.00 18,846,734.97
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Shijiazhuang Baoshi Electronic Group Co., Ltd. 5,480,526.00 23.96%
Dongxu Group 5,385,897.44 23.55%
Shijiazhuang Dongxu Machine Co., Ltd. 2,564,102.56 11.21%
Hebei Shengshi Machine Tools Group Co., Ltd. 2,341,160.00 10.24%
Shijiazhuang Dongxu Optoelectronic Equipment Technology Co., Ltd. 2,327,350.43 10.18%
Total 18,099,036.43 79.14%
5. Investment income
（1）Income from investment
Naught
（2）Long term equity investment calculated to cost method：
Naught
（3）Long term equity investment calculated via equity method
Naught
6. Supplement information of Consolidated Flow Statement
108
Unit：RMB
Items Amount of current period Amount of previous period
1. Adjusting net profit to net cash flow in operating activities: -- --
Net profit 2,316,656.30 -9,114,661.50
Add： Provision for impairment of assets -249,987.09 0.00
Fixed assets depreciation 4,285,139.00 6,131,461.13
Amortization of intangible assets 162,781.86 163,606.86
Amortization of long-term expenses to be amortize
The losses on the disposal of fixed assets, intangible assets and other
long-term assets
Loss on retirement of fixed assets
Loss on changes of Fair value
Financial expenses -3,323.95 37,734.99
Investment losses
Decrease of deferred income tax asset
Increase of deferred income tax liability
Decrease in inventory 51,218,760.83 -4,451,554.29
Decrease in operating receivable -154,506,236.54 -2,594,116.77
Increase in operating payables 112,845,749.07 4,543,838.59
Other 305,095.73
Net cash flows from operating activities 16,069,539.48 -4,978,595.26
2.Investing and financing activities that do not involve cash receipts
-- --
and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under financial lease
3.Net increase in cash and cash equivalents -- --
Cash at the end of the period 13,027,879.93 92,069.03
Less：Cash at the beginning of the period 2,267,777.81 5,070,664.29
Add: Cash equivalents at the end of the period
Less：Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 10,760,102.12 -4,978,595.26
7. Reversal purchase of the assess under assessed value, liabilities information
Naught
（XVI）Supplement information
1. Return on net assets and earnings per share
Unit：RMB
Earnings per share（RMB）
Return on net assets .
Profit of the report period
Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the Common stock 16.27% 0.11 0.11
109
shareholders of Company.
Net profit attributable to the Common stock
shareholders of Company after deducting of 16.25% 0.11 0.11
non-recurring gain/loss.
2. The explanation of abnormal circumstance and reasons of items in major accounting statement.
1. Consolidated Balance Sheet
Changed
Items Balance in year-end Balance in year-begin Proportion Reason
Monetary fund 50,749,160.02 15,847,225.73 220.24 Sales returned money
Bill receivable 1,295,624.00 450,000.00 187.92 Sales returned money
Account receivable 267,904,035.44 12,293,588.86 2079.22 Sales returned money
Prepayments 52,532,923.09 5,672,207.76 826.15 Purchase of goods increased
Fixed Assets 50,716,829.25 52,896,805.40 -4.12 Formation of depreciation
Construction in progress 52,857,817.10 22,302,509.06 137.00 New-set up Factory
Long-germ expenses to - -
be amortized
Advance account 29,891,828.79 1,060,332.76 2719.10 Advances On Sales
Other account payable 40,585,070.48 31,601,289.10 28.43 Other related transactions increased
2. Consolidated profit Statement
Amount of current Amount of previous Changed
Items period period Proportion Reason
business income 361,355,746.17 26,820,188.44 1,247.33 Sales increased
business cost 193,280,345.36 29,645,303.24 551.98 Range of activities increased
Business tax and 12,812,567.72 420,016.01 2,950.50 Tax due to income growth increased
surcharge
Administrative 33,495,079.80 6,344,180.44 427.97 Increase in business volume, resulting in
expense increased expenses for the period
-507,812.81 27,990.75 -1,914.22 Exchange rate gained and interest income of
Financial expenses
deposits
Income tax expenses 31,597,490.41 61,049.68 51,657.01 Sales growth, profit increased
3. Consolidated Cash Flow Statement
Amount of current Amount of previous Changed
Items
period period Proportion Reason
Other cash received from 48,170,659.89 2,654,623.12 1,714.60 Sales increased
business operation
Taxes paid 39,913,882.10 4,841,276.61 724.45 Sales growth, profit increased
Other cash paid for business 54,093,674.10 3,312,984.68 1,532.78 Business of activities increased
activities
Cash received from investment 1,875,000.00
retrieving
110
IX. Documents Available for Inspection
Documents Available for Inspection
1.The original Interim 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 person in charge of the Company, financial
controller and the person in charge of accounting organ
3. Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the
newspapers as designated by China Securities Regulatory Commission.
Note: This Report is prepared respectively both in Chinese and English. Should be there any difference in
interpretation of these two versions, the Chinese version shall prevail.
Chairman of the Board：Li Zhaoting
Date of submitting approved by the Board :August 27, 2012.
111
