Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Optoelectronic Technology Co., Ltd.
The Semi-annual Report 2018
August 2018
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
I. Important Notice, Table of Contents and Definitions
The Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr. Wang Lipeng, The Company leader, Ms. Feng Qiuju, Chief financial officer and the Mr. Gao Feipeng,
the person in charge of the accounting department (the person in charge of the accounting) hereby confirm the
authenticity and completeness of the financial report enclosed in this semi-annual report.
All the directors attended the board meeting for reviewing the semi-annual Report.
The development strategy, operation plan and other forward-looking statements involved in this report will not
constitute any substantive commitment to the investors by the Company. Investors please be aware of the
investment risks.
The company has already described the risk items existed in details in the report with reference to (IV) possible
risks of X Operation Conditions Discussion and Analysis.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Table of Contents
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Indicators
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds
X. Financial Report
XI. Documents available for inspection
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Definition
Refers
Terms to be defined Definition
to
Refers
Company Law Company Law of the People’s Republic of China
to
Refers
Securities Law Securities Law of the People’s Republic of China
to
Refers
CSRC China Securities Regulatory Commission
to
Refers
SZSE Shenzhen Stock Exchange
to
Refers
Tunghsu Group Tunghsu Group Co., Ltd.
to
Refers
Baoshi Group Shijiazhuang Baoshi Electronics Group Co., Ltd
to
Tunghsu Optoelectronic , Company, The Refers
Tunghsu Optoelectronic Technology Co., Ltd.
Company to
Refers
Tunghsu（Yingkou）Optoelectronic Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.
to
Refers
Xuhong Optoelectronic Sichuan Xuhong Optoelectronic Technology Co., Ltd.
to
Wuhu Tunghsu Optoelectronic Technology Co., Ltd., was the
Refers
Wuhu Optoelectronic implementation unit of the non-public item to raise money for and invest
to
in of “The Project of Production Line for Panel Display Plate” in 2013
Refers
Wuhu Equipment Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd.
to
Tunghsu（Kunshan）Display material Co., Ltd.， In 2015, was the
Refers
Tunghsu (Kunshan ) implementation unit of the non-public item to raise money for and invest
to
in “Project of Production Line for the 5th-generation CF for TFT-LCD”.
Refers
Tunghsu Construction Tunghsu Construction Group Co., Ltd.
to
Fuzhou Xufu Optoelectronic Technology Co., Ltd.， In 2016, was the
Refers
Fuzhou Xufu non-public item to raise money for and invest in “Project of Production
to
Line for the 8.5th-generation CF for TFT-LCD”
Fuzhou Optoelectronic Refers Fuzhou Tunghsu Optoelectronic Technology Co., Ltd.， In 2016, was the
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
to non-public item to raise money for and invest in “Project of Production
Line for the 8.5th-generation CF for TFT-LCD”
Refers
Tunghsu Finance Company Tunghsu Group Finance Co., Ltd.
to
Refers
Shanghai Tanyuan Huigu Shanghai Tanyuan Huigu New Material Technology Co., Ltd.
to
Refers
Xutan New Material Beijing Xutan New Material Technology Co., Ltd.
to
Refers
Mingshuo Technology Mingshuo (Beijing) Electronic Technology Co., Ltd
to
Refers
Tengda Wujiang Tengda Packing Products Co., Ltd.
to
Shanghai Sunlong Bus Co., Ltd.，
Refers
SUNLONG 2017 issue of shares and payment of cash to buy the assets of the enterpris
to
e
Refers
BOE BOE Technology Group Co., Ltd.
to
Refers
CSOT China Star optoelectronics Technology Co., Ltd.
to
Refers
Tianma Tianma Microelectronics Co Ltd
to
Refers
TFT-LCD Thin Film Transistor Liquid Crystal Display
to
Refers
LTPS Low Temperature Poly-silicon
to
Refers
AMOLED Active-matrix organic light emitting diode
to
A thin glass sheet with extremely smooth surface is a basic component of
constituting LCD display device as well as one of the critical basic
Refers
Glass substrate materials in panel display industry. The glass sheet can be divided into
to
various generations by its size, and the higher the generation is, the bigger
the size will be.
Refers
G5 glass substrate The size of the 5th-generation glass substrate is 1100 mm×1300 mm.
to
Refers
G6 glass substrate The size of the 6th-generation glass substrate is 1500 mm×1850 mm.
to
Refers
G8.5 glass substrate The size of the 8.5th-generation glass substrate is 2300 mm×2500 mm
to
Optical film Refers refers to the general name of optical diaphragms such as diffusion,
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
to reflection, prism, composite prism, etc., mainly used in TFT LCD
backlights.
Refers
CF Critical original materials of LCD panel for realizing colorization display
to
Refers Refers to two-dimensional carbon materials related to grapheme, with a
Grapheme materials
to layer less than 10 carbon atoms
In addition to mobile phones, tablet PCs and other displays, for the touch
Refers
Cover glass screen touch module, display and non-touch screen display to protect the
to
transparent glass lens
Refers Adopting new power systems, fully or mainly rely on new energy-driven
New Energy Bus
to passenger bus, including pure electric bus and fuel cell bus
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
II. Basic Information of the Company and Financial index
I. Company Information
Stock abbreviation Tunghsu Optoelectronic, Tunghsu B Stock code 000413、200413
Stock abbreviation after
Tunghsu Optoelectronic, Tunghsu B
change (if any)
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 东旭光电科技股份有限公司
Chinese Abbreviation 东旭光电
English name (If any) Tunghsu Optoelectronic Technology Co.,Ltd.
English abbreviation (If any) Tunghsu Optoelectronic
Legal Representative Wang Lipeng
II. Contact person and contact manner
Board secretary Securities affairs Representative
Name Gong Xin Wang Qingfei
No.5 Court, No.23 A Fuxing Road, No.5 Court, No.23 A Fuxing Road,
Contact address
Haidian District, Beijing Haidian District, Beijing
Tel 010-68297016 010-68297016
Fax 010-68297016 010-68297016
E-mail gongxin_dx@126.com wangqingfei@dong-xu.com
III. Other
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in annual report 2017.
2. Information inquiry
Whether information disclosure and preparation place changed in reporting period or not
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2017.
IV. Summary of Accounting Data and Financial Indicators
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
√Yes □No
Reasons for retrospective restatements:
Business merger under the same control.
Same period of last year YoY+/-（%）
Reporting period
Before adjustment After adjustment After adjustment
Operating Gross income（Yuan） 11,129,851,790.88 4,641,285,527.91 4,876,438,604.10 128.24%
Net profit attributable to the shareholders
858,296,089.08 635,855,750.37 637,480,381.47 34.64%
of the listed company（Yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders 811,345,478.77 559,990,548.41 564,088,026.98 43.83%
of listed company（Yuan）
Cash flow generated by business
83,617,287.66 -1,414,361,686.97 -1,364,949,813.78 106.13%
operation, net（Yuan）
Basic earning per share(Yuan/Share) 0.15 0.13 0.13 15.38%
Diluted gains per
0.15 0.13 0.13 15.38%
share(Yuan/Share)(Yuan/Share)
Net asset earning ratio（%） 2.74% 2.84% 2.73% 0.01%
As at the end of the As at the end of last year YoY+/-（%）
reporting period Before adjustment After adjustment After adjustment
Gross assets（RMB） 66,693,831,497.63 67,683,329,226.91 68,610,779,546.18 -2.79%
Shareholders’ equity attributable to
31,213,233,914.18 30,922,796,455.46 30,949,718,542.41 0.85%
shareholders of the listed company（RMB）
V. Differences between accounting data under domestic and overseas accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
VI. Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-664,826.45
for which assets impairment provision is made)
Govemment subsidies recognized in current gain and
loss(excluding those closely related to the Company’s business 44,668,918.09
and granted under the state’s policies)
Gain/loss on entrusting others with investment or asset
13,923,452.07 Investment financing income
management
Gain/loss from debt reorganization 484,207.00
Net gain/loss of current term from consolidation of subsidiaries Business combination under the
under common control from beginning of term to the -9,555,668.76 same control. Retroactive
consolidation date adjustment
Entrusted with the operating of the trust to obtain fee income 235,849.06
Other non-operating income and expenditure beside for the above
2,694,248.35
items
Less: Influenced amount of income tax 6,987,734.04
Amount of influence of minority interests（After tax） -2,152,164.99
Total 46,950,610.31 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
III. Business Profile
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is a leading and comprehensive service provider of new materials, high-end equipment
manufacturing and new-energy automobile manufacturing at home. It possesses the liquid crystal glass substrate
production capacity ranking first in China and fourth all over the world in the field of new materials represented
by photoelectric display material and at the same time lays out laterally other core ones such as curved cover glass,
color filter and sapphire, etc., which results in its prominence of photoelectric display material industry cluster
advantages; its graphene industrial application in initial development period is the extension and important
supplementation of new material business. In terms of the high-end equipment manufacturing field, its
self-developed complete glass substrate manufacturing equipment has relatively strong technological spillover
effect, has extended into several fields and becomes an important income and profit source thereof. For the new
energy automobile field, based on Sunlong, it has been advancing industrial development of new energy
passenger and logistics cars strongly, has laid out several new energy automobile industry bases in China and has
been devoted to making the new energy automobile business into its new growth level.
I. New material business system
1. Glass substrate original film business
The liquid crystal glass substrate is a core raw material to the upstream of the liquid crystal display panel, with
extremely high requirements of manufacturing process. Based on the breakthrough in the field of complete-set of
liquid crystal glass substrate production equipment, the company took the lead in breaking the international
monopoly and achieved the home-making of liquid crystal glass substrate. Currently, the Company possesses five
production bases of liquid crystal glass substrate respectively located in Zhengzhou, Shijiazhuang, Wuhu Fuzhou
and Yingkou covering G5, G6, and G8.5 (compatible with 8.6 generation) TFT-LCD liquid crystal glass
substrates. The company has 20 liquid crystal glass substrate production lines , with that the mass production
capacity tops first in China and ranks fourth in the world.
The cover glass is used to protect the touch module and the display screen. The company has the original
production line of the advanced float glass substrate in Mianyang, Sichuan, and has the capacity of the first and
the world's third high-aluminum cover glass substrate. Performance, the company is the only company in China
that masters both the overflow melting method and the floating method.
2. Other display materials business
In order to enhance the competitiveness and profitability of the display materials business, the company
implements a horizontal extension strategy of the industry chain. Since 2015, it has successively laid out cover
glass original film, curved-surfaced cover glass, optical diaphragm, color filters and sapphire to optimize its
business structure. Industrial clustering effects appear. The curved cover glass has the advantages of lightness,
transparency, anti-fingerprint, anti-glare, and good weather resistance. It can enhance the appearance of smart
terminal products and bring excellent touch feeling. The company's optical film covers diffusion, reflection, prism,
Subdivisions such as composite prisms, mainly used in TFT LCD backlights. The color filter is a key component
of the colorization of the liquid crystal display. The company's main product is the G5 color Filters; sapphire is
widely used in LED substrate materials and optical components and other fields, the company's main products are
2-inch and 4-inch LED substrate products.
3. Industrial application of graphene material
The graphene has excellent characteristics of optics, electricity, heat and mechanics and important application
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
prospects in terms of materialogy and energy, etc. and is deemed as a revolutionary new material. Leading the
graphene material industrial application, the Company has already formed four series of grapheme material
industrial application products of grapheme battery, graphene electrical heating, graphene anticorrosive paint and
grapheme lighting, among which, partial ones have already realized batch production and been sold overseas.
Several countries alongside One Belt and One Road become main markets for such graphene products. The
grapheme new material layout is a strategic input for long-term development in the future, caters for new material
and new energy automobile development direction in the future and has large growth potential and market space.
II. High-end equipment manufacturing business
Thanks to the company's independent research and development to break through the foreign blockade, the
solid foundation laid by the high-tech front-end equipment in the production of glass substrates has been
established. Under the background of domestic industrial manufacturing replacing equipment by equipment and
satisfying intelligent and efficient production, the company's high-end equipment and technical services Business
continues to work. The company's high-end equipment business currently mainly adopts an integrated mode. The
business mainly involves high-end equipment such as photoelectric display materials, semiconductor cleaning,
grinding, testing, cutting, laminating, automated logistics, and corresponding technical services, control systems
and special equipment. Supply of products, with a large number of large group customers who have demand in the
intelligent field
III. New energy automobile business
The company has engaged in the high-end equipment manufacturing industry for almost 20 years and
possesses strong spillover capacity from technology to management and from capital to talent. Since it acquired
100% equities of Sunlong through share issuance and assets purchase through capital payment in 2017, based on
the listed company platform, the Company has supported Sunlong from several aspects of technology,
management, market and resource, etc., exerted industrial synergy with the same, enriched its existing industrial
structure, seized rapidly industrial opportunities of new energy passenger and logistics cars. In the first half of the
year, the company sold a total of 2,072 passenger cars, a year-on-year increase of 17.53%, including 1,696 new
energy buses, accounting for 82% of the total sales, and sales of new energy buses increased by 33%. The new
energy vehicle business maintained a good growth momentum.
IV. Other business system
1. Electrocommunication product business
To break the industrial dilemma of “chip and display panel lack” of China, the Company, through integrating
large quantities of customer resources and photoelectric display material sale channels, endeavors to realize the
industrial integration and synergy of photoelectric display materials and relevant accessories. Simultaneously, the
Company tries to expand import and export channels for liquid crystal display module and storage chip, etc.,
expand supply and marketing channels for Internet of Things equipment, perfect gradually links of customs
clearance, storage and logistics, etc. and provide clients with integrated solutions based on their unique demands.
2. Construction & installation business
As a company's traditional business, the construction & installation business has played an important role in
assisting the company's production base’s construction and maintenance, thus effectively reducing the company's
various project construction costs. Meantime, as a supplement to the main business, and with the continuous
development of domestic industrialization and urbanization, the construction & installation business has contributed
a certain amount of revenue and profits for the company in recent years.
Ⅱ.Major Changes in Main Assets
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
1. Major Changes in Main Assets
Main assets Major changes
Equity assets There were no major changes in this period compared to the previous period.
Fixed assets There were no major changes in this period compared to the previous period.
Intangible assets There were no major changes in this period compared to the previous period.
Construction in process The production line investment construction was formed.
2. Main Conditions of Overseas Assets
□ Applicable √ Not applicable
Ⅲ.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In Annual Report 2017, the Company disclosed five core competitive forces, namely “strong advantage in
independent research and development and innovation ability”, “scale advantage of core photoelectric display
material”, “integration advantage of endogenous and epitaxial industrial chains”, “synergistic advantages of
mutual dependence of business sectors” and “advantage in efficient management and decision-making
mechanism”. In the first half year of 2018, such core competitive force has been strengthened and deepened
further without any other significant change.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
IV. Performance Discussion and Analysis
Ⅰ.General
In 2018, Tunghsu will forge ahead. Under leadership of the company Board of Directors and management
layer and unremitting efforts of all staff, the Company, centering on established strategic layout of the company in
the first half year, optimizes the industrial structure positively, deepens the existing product market pattern and
promotes strongly development of core business including new materials, high-end equipment manufacturing and
new energy automobile, etc. to make each item of business increase stably and rapidly. During the reporting
period, the Company achieves an operating income of RMB 11.13 billion , an increase of 128.24% over the same
period in 2017; The net profit attributable to shareholders of listed companies, net of non-recurring gains and
losses, was RMB 811 million, an increase of 43.83% over the first half of 2017.
The company's each business development status in the first half of 2018:
1. Product upgrade and high-generation glass substrate production line performance contribution level
improvement
As the panel and glass substrate large size and high generation have become an industrial trend in recent years,
the Company has liquid glass substrate products covering G5, G6 and G8.5 and is capable of providing each-type
high-quality glass substrate product for down-stream clients. Within the report period, its two G8.5 glass substrate
production lines in Fuzhou were in good condition and received good production and sales achievements, which
make its high-generation glass substrate product market share increased and glass substrate product structure
optimized. As the high-generation glass substrate placement and investment projects develop continuously in the
future and the company's technical accumulation in glass substrates for OLED display, the Company will have an improved
core competitive force in such glass substrate field.
2. Curved cover glass layout and rapid formation of effective capacity
Within the report period, the Company implemented “curved display cover glass production project” based
on Xuhong Optoelectronic and already formed the annual capacity of [5 million] pieces and supplied the same in
batch to clients. The curved cover glass, with flexible, thin, transparent and clean, anti-fingerprint, anti-dazzle and
good weather-resistance, etc. characteristics is applicable to the flexible display area as a strong measure adopted
by the Company to follow OLED flexile display screen trend. At the same time, after the high aluminum cover
glass substrate Sheet Production Line of Xuhong Optoelectronic was included into the Company’s new material
industrial system officially in October 2017, such product has set all-time new highs repeatedly through vigorous
expansion of end clients and production process and sale type structure optimization and becomes an effective
growth point for the Company’s new material business.
3.With synergistic development, continue to advance the optical film, color filter, sapphire business
During the reporting period, Tengda Optical Film Business and Jiangsu Jixing Sapphire Business achieved
rapid growth, and the supporting supply of Tenda Optics and Jiangsu Jixing Optoelectronic Display Materials had
well enhanced the major customers’ adhesiveness of the Company. In December 2017, the Company completed the
first 5th generation color filter production line for TFT-LCD. During the reporting period, the Company actively
promoted the work including the debugging of color filter production lines, customer development and sample
certification. Currently, the Company has obtained orders from customers such as Longteng Optoelectronics. The
Color filters has realized the bulk supply, which is conducive to increase the added value of products of the
existing G5 liquid crystal glass substrates.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
4. Obtaining big orders and new progress realization in grapheme material industrial application
Within the report period, Tunghsu Carbon, MS Technology and Tan Yuan Graphene, subsidiaries of the
Company, concluded Graphene Application Product Strategic Partnership Agreement on expansion and sale of
graphene electric heating products, graphene street lamp products and graphene anticorrosive paint, etc. with 15
downstream grapheme application enterprises, whose price reaches 610 million yuan. The grapheme material
industrial application is getting better in the initial development period and will become an important supplement
to its new material business system. In addition, the “lithium-ion secondary battery”(TanYuanG18650) project of
Tan Yuan Graphene was deemed as “a high-tech outcome transformation project in Shanghai” by Shanghai
High-tech Outcome Transformation Project Certification Office based on the macro-batch production technology
of high-quality and low-cost grapheme and was included into the 1st Shanghai High-tech outcome transformation
project in 2018.
5. High-end equipment business stable and continuous development
In recent years, under the background of domestic industrial manufacturing adopting equipment replacing labor
for satisfying the intelligent and efficient production, the Company's high-end equipment business has steadily
expanded and well developed, gradually supplying optoelectronic display materials and equipment, semiconductor
equipment and other general-purpose equipment to domestic high-end customers. During the reporting period, the
Company closely focused on the investment boom of domestic panel production lines and semiconductor
production lines, continued to sign equipment business orders with BOE, CSOT, Visionox and other group
customers in the intelligent application field, and actively explored the high-end equipment market in the
semiconductor field. With the acceleration of investment in the domestic semiconductor production line, the
semiconductor equipment business has a broad market space. The Company will strive to expand and develop the
high-end equipment market in the semiconductor field, and make the high-end equipment business become another
rapid growth point, thus providing new driving force for the steady development of the Company's high-end
equipment business.
6. Business upgrade and intelligent robot platform company acquisition
The intelligent manufacturing is the development direction of the Company high-end equipment business
industry upgrade. Within the report period, the Company realized its high-end equipment manufacturing business
expansion into the intelligent platform robot field through acquisition of Shenzhen Sanbao Innovation Intelligence
Co., Ltd. Next, it will combine its strong manufacturing industrialization basis, integrate advanced intelligent
manufacturing technology, optimize its existing complete-set intelligent scene application capacity, improve its
competition in high-end equipment business field, improve its whole business synergy and realize its high-end
equipment business industrial upgrade.
7. Expansion into a new city: new energy automobile industry basis location in Jiangsu
Within the report period, to seize sufficiently development opportunities of national new energy automobile
industry and speed up the industrial layout in new energy automobile field, the Company, based on its technical
advantages in new energy automobile and local and investment environmental advantages of Suqian People’s
Government, concluded the New Energy Automobile Project Investment Cooperation Agreement with such
government on construction of the production basis project with annual capacity of 5,000 new-energy passenger
cars and 50,000 new-energy logistics cars through investment of 3 billion yuan in Suqian city. Then, the Company
completes the industrial layout of new energy automobile industrial base in East, South, West, North China and
will become a new-energy automobile manufacturer of important influence across country after such bases
construction and putting into operation.
8. Step-by-step consolidation and synergic development of construction and installation business and
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
electrommunication business
Within the report period, in terms of construction and installation business, the Company obtained a series of
engineering business orders in fields of underground comprehensive pipeline corridor, municipal infrastructure,
sponge city and smart city, etc. based on strong comprehensive strength and various flexible business modes,
which contribute to the Company’s operation revenue and net profit increase correspondingly; the
electrommunication business as a supplement to its main business kept fast increase continuously and played a
positive role to increase its industrial synergy and expand its business scale.
II.Main business analysis
Refer to relevant contents of “1. Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
Mainly due to business
Operating income 11,129,851,790.88 4,876,438,604.10 128.24%
growth.
Mainly due to the
increase in the
Operating cost 9,021,989,897.09 3,473,962,810.22 159.70%
corresponding cost of
business growth
93,892,692.42 42,456,252.57 121.15% Mainly due to the
Sale expenses increase in the cost of
freight, etc.
389,977,702.76 229,378,673.33 70.01% Mainly due to the
increase in the cost of
Administrative expenses
housing, water and
electricity, etc.
Financial expenses 395,227,116.30 368,191,927.63 7.34%
Mainly due to the growth
Income tax expenses 282,130,776.24 191,513,884.53 47.32% of business in the current
period.
Mainly due to the
increase investment in
R & D Investment 125,155,597.43 62,869,570.14 99.07%
research and
development
Net cash generate by 83,617,287.66 -1,364,949,813.78 106.13%
operating activities
Net cash generated by -1,660,557,972.96 -1,088,549,503.22 -52.55%
investing activities
Net cash generated by -2,092,134,104.87 -629,365,921.93 -232.42%
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
financing activities
Net increase in cash and -3,671,727,390.78 -3,074,153,558.61 -19.44%
cash equivalents
Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Breakdown of main business
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
Industry
Optoelectronic
2,162,239,379.37 1,693,307,933.68 21.69% 83.71% 118.34% -12.42%
display material
Equipment and
Technology 3,665,532,801.81 2,886,526,928.27 21.25% 49.79% 93.31% -17.73%
serves
Industrial
application of 22,186,020.97 9,070,660.39 59.12% 3,911.09% 4,162.41% -2.41%
graphene
New energy
1,022,266,461.81 819,614,476.46 19.82%
vehicle
Construction
1,555,645,862.34 1,500,887,029.86 3.52% 164.78% 167.26% -0.89%
Installation
Electronic
communication 1,571,252,619.47 1,538,031,287.70 2.11% 139.47% 139.55% -0.03%
products
Products
Optoelectronic
2,162,239,379.37 1,693,307,933.68 21.69% 83.71% 118.34% -12.42%
display material
Equipment and
Technology 3,665,532,801.81 2,886,526,928.27 21.25% 49.79% 93.31% -17.73%
serves
Industrial
application of 22,186,020.97 9,070,660.39 59.12% 3,911.09% 4,162.41% -2.41%
graphene
New energy 1,022,266,461.81 819,614,476.46 19.82%
16
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
vehicle
Construction
1,555,645,862.34 1,500,887,029.86 3.52% 164.78% 167.26% -0.89%
Installation
Electronic
communication 1,571,252,619.47 1,538,031,287.70 2.11% 139.47% 139.55% -0.03%
products
Area
China 8,842,543,603.09 7,343,203,923.92 16.96% 96.95% 136.13% -13.78%
Hongkong,Macau
1,091,131,396.31 1,058,509,705.07 2.99% 188.36% 191.85% -1.16%
and Taiwan
Overseas 65,448,146.37 45,724,687.36 30.14% 67,938.20% 106,337.97% -25.20%
III.Non-core business analysis
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Other income 108,362,056.52 9.21% Government subsidy Yes
IV. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year
Change in
As a percentage Reason for significant
percentage
Amount of total change
(%)
assets(%)
Monetary fund 23,794,597,055.80 35.68% 27,456,759,768.86 40.02% -4.34%
Accounts
9,937,647,168.77 14.90% 7,873,419,684.42 11.48% 3.42%
receivable
Inventories 4,210,883,497.85 6.31% 4,914,482,277.21 7.16% -0.85%
Real estate
66,930,130.01 0.10% 58,229,439.86 0.08% 0.02%
Investment
Long-term equity
2,142,476,783.38 3.21% 2,130,640,158.90 3.11% 0.10%
investment
Fixed assets 10,938,598,162.98 16.40% 11,378,564,235.15 16.58% -0.18%
Construction in 5,387,496,213.47 8.08% 3,663,486,639.90 5.34% 2.74%
17
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
process
Short-term loans 6,812,784,698.87 10.22% 5,712,826,382.20 8.33% 1.89%
Long-term loans 3,823,532,289.32 5.73% 5,209,726,250.77 7.59% -1.86%
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Restrictions on asset rights at the end of the reporting period are as follows:
1. The total amount of restricted Cash and bank balances at the end of the reporting period was RMB
2,351,663,690.33,Mainly for fixed deposits, deposits and so on.
2. RMB10,433,568,773.5 at the end of the period. Fixed assets were used as collateral and financial lease objects.
3. At the end of the period, the intangible assets of RMB 350,282,096.92 were borrowed as collateral.
4. At the end of the period, RMB 1,210,207,009.84 was pledged for construction in progress as collateral.
5. At the end of the period, RMB 66,930,130.01 was pledged for Real estate investment as collateral.
Ⅴ.Investment situation
1．External investment
√ Applicable □Not applicable
Investments made in same period of last
Investments made in the reporting period +/- %
year
3,148,450,556.06 6,175,411,729.77 -49.02%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □ Not applicable
In RMB
Name Progre Gain or
Whether
of the Invest Invest ss up Less or Date of
Main Invest Share Antici to Disclos
Compa ment Capital ment Product to the Disclosu
Busines ment Proport Partner pated Involve ure
ny Amoun Source Horizo Type Balanc Current re(Note
s Way ion % Incom in Index
Investe t n e Sheet Investm 5)
e Lawsuit
d Date ent
Tunghs
u
http://w
（Ying Glass 195,00 Glass
Purcha Long-t Compl -9,555,6 June ww.cnin
kou） subst 0,000.0 65.00% Self No substrat 0.00 No
se erm eted 68.76 13,2018 fo.com.
Optoele rates 0 es
cn
ctronic
Display
18
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Co.,
Ltd.
Shenzh
en High-en High-e
Sanbao d nd http://w
157,75
Chuang intellige Purcha Long-t intellig Compl -1,101,9 May ww.cnin
0,000.0 67.00% Self No 0.00 No
xin nt se erm ent eted 97.15 29,2018 fo.com.
0
Intellig equipm equipm cn
ent Co., ent ent
Ltd.
Shangh
ai http://w
New Increas 1,400,0 New
Sunlon 100.00 Raising Long-t Compl 109,136, ww.cnin
energy e 00,000. No energy 0.00 No
g Bus % Funds erm eted 890.07 fo.com.
vehicle Capital 00 vehicle
Co., cn
Ltd.，
Sichuan
Xuhong
Optoele http://w
Increas 800,00
ctronic Glass 100.00 Raising Long-t Glass Compl 44,618,3 ww.cnin
e 0,000.0 No 0.00 No
Technol cover % Funds erm cover eted 29.52 fo.com.
Capital 0
ogy cn
Co.,
Ltd.
2,552,7
143,097,
Total -- -- 50,000. -- -- -- -- -- -- 0.00 -- -- --
553.68
00
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
Nil
（2）Investment in Derivatives
□ Applicable √ Not applicable
19
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Nil
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
√ Applicable □ Not applicable
Proporti
Net on on of
profits the net Whether
contribu profits execute
ted by of the as
Whether
the contribu schedul
the
equities ted ed and
involve
Transact to the Influenc amount if failed,
Pricing Whether Relation d
ion listed e of the of the should
principl was the ship equities Disclos
Counter Sold Sold price(Te compani selling equities state the Disclos
es of the related with the all ure
party equities date n es from of the selling reasons ure date
equities transacti center complet Index
thousan the Compan to the and the
selling on party e ed the
d yuan) period-b y listed adopted
ownersh
egin to compani measure
ip
the sold es to the ments of
transfer
date total the
(Ten amo9un compan
thousan t of the y
d yuan) net
profits
Xuyou
Electron
Tunghsu ic
Based
Techno Material Same http://w
on
logy s April parent April ww.cnin
55,000 205.36 No -0.24% audited Yes Yes Yes
Group Technol 28,2018 compan 14,2018 fo.com.
net
Co., ogy y cn
assets
Ltd. (Wuxi)
Co.,
Ltd.
20
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Shijiazhuang
Xuxin
Optoelectron
Optoelectro 1,906,000,00 3,614,327,96 2,185,344,57 257,758,187. 50,116,654
Subsidiary ic Display 42,667,836.04
nic 0.00 4.30 3.32 11 .12
material
Technology
Co., Ltd.
Sichuan
Xuhong Optoelectron
1,900,000,00 3,933,116,97 2,067,268,81 211,280,233. 52,984,015
Optoelectroni Subsidiary ic Display 44,618,329.52
0.00 5.62 2.55 31 .91
c Technology material
Co., Ltd.
Shanghai
New Energy 2,500,000,00 7,352,250,47 2,848,886,83 851,962,505. 48,645,039
Sunlong Bus Subsidiary 38,466,842.93
Bus 0.00 4.71 1.19 15 .46
Co., Ltd.
Guangxi
Sunlong
New Energy 2,311,111,11 2,835,425,11 1,785,564,78 277,893,932. 78,784,420
Automobile Subsidiary 71,723,089.43
Bus 2.00 1.60 9.07 92 .10
Manufacturin
g Co., Ltd.
Wuhu
Tunghsu
Equipment
Optoelectroni
and 1,000,000,00 12,745,478,0 2,952,254,79 1,448,811,43 596,270,06
c Subsidiary 510,256,680.37
technology 0.00 55.37 0.26 5.46 7.22
Equipment
Service
Technology
Co.,Ltd.
Beijing
Building and
Xufeng Real 870,000,000. 2,204,338,31 783,972,669. 1,094,173,84 408,282,97
Subsidiary construction 311,897,319.71
estate Co., 00 2.81 58 9.22 3.44
Industry
Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
Name Mode Influence
Shenzhen Sanbao Chuangxin Intelligent M&A Increase business
21
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Co., Ltd.
Tunghsu（Yingkou）Optoelectronic Display
M&A Increase business
Co., Ltd.
Xuyou Electronic Materials Technology Based on overall strategic layout planning
Disposition
(Wuxi) Co., Ltd. considerations
Notes
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2018
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable√ Not applicable
X. Risks facing the Company and countermeasures
1. Risk of macroeconomic cyclical fluctuations
The optoelectronic display materials business centered on glass substrate relies on the LCD panel industry,
which is a cyclical industry and a downstream industry to the company. As the prosperity of the panel industry is
affected by the macroeconomic fluctuations, then if the panel price fluctuates sharply due to the deterioration of
the macroeconomic environment or the imbalance between the supply and the demand, the company may face the
risk of industry downturn.
Improvement actions: The Company, through development for many years, has developed into an advanced
comprehensive service provider for new materials, high-end equipment manufacturing and new-energy
automobile manufacturing at home from the single manufacturer for liquid crystal glass substrate equipment and
liquid crystal glass substrate; at the same time, it will, through close tracking of latest news on macro economy,
industrial policies and industrial development, seize the investment and expansion pace and adjust the
development strategies timely to guarantee its operation efficiency and effects and deal with macro economy
periodic fluctuation effectively.
2. Risk of technological upgrading alternatives
The company never stops the technical research and development and technology reserves, and has made
breakthroughs in many areas. However, if the downstream panel display industry undergoes major technological
changes and the company fails to achieve timely corresponding technological innovation, then the company will
face certain risks when the technological upgrading alternatives hit the market.
Improvement actions: The Company has very strong technical strength and is the only one at home with two
glass substrate manufacturing processes including overflow fusion method and float glass at the same time, among
which, TFT-LCD glass substrate complete equipment production line is deemed as “a national strategic
innovative product” and the glass liquid processing method in platinum channels obtains “Chinese gold medal for
patent”. To deal with risk of technology replacement, the Company will, based on successful industrialization
experience obtained, continue strengthening R&D capital investment, strengthen R&D cooperation with
22
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
institutions of higher learning and research institutes and improve the R&D strength in ultrathin, large-size and
LTPS glass and OLED new-type display technology glass, etc.
3. The risk caused by the continued fade-out of subsidy policies for new energy vehicles
As the new energy auto companies have a certain dependence on government subsidies at this stage, the
decline in the subsidy standards will have a certain impact on the future sales of new energy auto products of
Sunlong Bus. Although the company has in detail measured the feasibility of the company's implementation of the
related business plan after the full fade-out of the subsidy, if there are major adverse changes in the relevant
industrial policies in the future, Sunlong Bus will face the risk of that its operating performance will fall short of
expectations.
Improvement actions: As parts (including power battery) and vehicle manufacturing technical level and
production process improve constantly, the infrastructure including charging piles/stations, etc. realizes
large-scale coverage, pure electric passenger car endurance mileage and other items of performance improve
gradually, the up-stream suppliers release the capacity continuously, the production cost and sale unit price
decrease, the new energy automobile popularization brings about pure electric passenger car acceptance
improvement on a continuous basis of end clients and the environmental pollution results in the public emphasis
improvement on clean energy, it’s predicted that the pure electric passenger car production cost of Sunlong will
decrease gradually, which will offset adverse influence from subsidy policy decline and will drive the demand
growth and sale of Sunlong new-energy passenger cars in the future.
23
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
V. Important Events
1. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
The First provisional
Provisional Announcement No.
shareholders’
shareholders’ 21.88% January 26,2018 January 27,2018 2018-011,
General meeting in
General meeting www.cninfo.com.cn
2018
The Second
provisional Provisional Announcement No.
shareholders’ shareholders’ 21.95% March 26,2018 March 27,2018 2018-028,
General meeting in General meeting www.cninfo.com.cn
2018
The Third
provisional Provisional Announcement No.
shareholders’ shareholders’ 21.96% April 25,2018 April 26,2018 2018-052,
General meeting in General meeting www.cninfo.com.cn
2018
Annual Announcement No.
2017 Shareholders’
Shareholders’ 22.66% May 10,2018 May 11,2018 2018-059,
general meeting
General Meeting www.cninfo.com.cn
The Fourth
provisional Provisional Announcement No.
shareholders’ shareholders’ 22.73% June 28,2018 June 29,2018 2018-087,
General meeting in General meeting www.cninfo.com.cn
2018
The Fifth provisional
Provisional Announcement No.
shareholders’
shareholders’ 21.99% July 30,2018 July 31,2018 2018-100,
General meeting in
General meeting www.cninfo.com.cn
2018
The Sixth
Provisional Announcement No.
provisional
shareholders’ 27.68% Aug 20,2018 Aug 21,2018 2018-117
shareholders’
General meeting www.cninfo.com.cn
General meeting in
24
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2018
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
√ Applicable □ Not applicable
Time of
Commitment Period of
Commitment Type Contents making Fulfillment
maker commitment
commitment
Commitment on share reform
Commitment in the acquisition report
or the report on equity changes
Commitment made upon the assets
replacement
Before June
30, 2018, the
entire equity
of Tunghsu
Yingkou,
which is held
Commitments by Tunghsu
on horizontal Group and is
competition, entrusted to
Tunghsu December Valid for
Commitments made upon issuance related the company's Fulfilled
Group 14,2017 June30,2018-
transaction management,
and capital will be
occupation injected into
Tunghsu
Optoelectroni
c through cash
purchase and
add-directiona
l share
25
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
issuance.
During the
above-mentio
ned period, if
external
factors such as
the decline in
the overall
prosperity of
the industry,
changes in
regulatory
requirements,
and other
external
factors lead to
Tunghsu
Yingkou
equity not
meeting the
conditions for
asset
injection, the
actual
controllers Li
Zhaoting and
Tunghsu
Group will
actively
consult with
relevant
parties and
continue to
entrust the
equity and
operating right
of the
above-said
company to
Tunghsu
Optoelectroni
c.
Equity incentive commitment
26
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
The
controlling
shareholder of
the company,
Tunghsu
Group, has
announced its
plan of
increasing its
holding of
shares not less
than 1% and
not exceeding
3% of the
company’s
current total
share capital
via buying
through the
Shenzhen
Stock
Share
Other commitments made to minority Tunghsu Exchange February Valid for
holdings Fulfilled
shareholders Group trading system 2,2018 August 2,2018
commitment
(i.e. the
secondary
market) with
not less than
RMB 500
million and
not exceeding
RMB1.5
billion in the
next six
months since
the date of the
announcement
(February 2,
2018).
Tunghsu
Group
promised not
to reduce the
holdings of
the company's
27
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
shares during
the
implementatio
n period of
this plan of
increasing
share-holding
and during the
statutory
period.
Executed timely or not? Yes
If the commitment has not been
implemented at the end of the
reporting period, it is necessary to
Not applicable
explain the specific reason of failure
in implementation and the future
work plan.
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √ Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the reporting period.
VIII. Legal matters
Significant lawsuits or arbitrations
□ Applicable √ Not applicable
No such cases in the reporting period.
28
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
√ Applicable □Not applicable
1. The scale of Phase 1 for Employee Stock Ownership Plan of Tunghsu Optoelectronic was RMB 495.4 million ,
subscribing 72,639,296 of non-publicly issued shares of 2015 with full amount through No.2 Changjiang Xingli
Oriented Plan, where the above shares were listed in SSE on December 17, 2015, which was with 36-month
locking period.
2.The company’s second ESOP, via Zhonghai Trust-Tunghsu Optoelectronic ESOP Collective Funds Trust Plan,
in the secondary market bought 52,555,280 shares of the company by centralized bidding and/or bulk trading, with
transaction amount of RMB 496,410,000 and the average transaction price of about 9. 45 yuan per share. The
buying has been completed as of December 28th 2017 and the ownership has been transferred into the name of the
Collective Funds Trust Plan, with a lock-in period of 12 months.
The employee stock ownership plan is still locked during the report period.
XII.Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of Amount approve price of of
of the pricing of trade Ratio in approve Date of
Related Relation Type of Price of Way of similar inform
related the (ten similar d disclosu
parties ship trade trade payment trade ation
transacti related thousan trades d(ten re
availabl disclos
ons transacti d) limited e ure
ons thousan
or not
d)
(Y/N)
Guangd Controll Selling Constru
Referen
ong ed by goods ction Currenc April
ce price 1,994.53 1,994.53 20,000 No 1,994.53
Huakai the same and Enginee y 20,2018
setting
Real actual providin ring
29
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Estate controll g
Develop er services
ment
Co.,
Ltd.
Huidong
Baoan
Controll Selling
Hongji
ed by goods Constru
Real Referen
the same and ction Currenc April
Estate ce price 4,661.40 4,661.4 20,000 No 4,661.40
actual providin Enginee y 20,2018
Develo setting
controll g ring
pment
er services
Co.,
Ltd.
Huidong
Baoan
Controll Selling
Jinan
ed by goods Constru
Real Referen
the same and ction Currenc April
Estate ce price 4,643.51 4,643.51 20,000 No 4,643.51
actual providin Enginee y 20,2018
Develo setting
controll g ring
pment
er services
Co.,
Ltd.
Kunmin
g
Tunghsu Controll Selling
Qiming ed by goods Constru
Referen
Investm the same and ction 14,070.7 14,070.7 Currenc 14,070.7 April
ce price 35,000 No
ent actual providin Enginee 9 9 y 9 20,2018
setting
Develop controll g ring
ment er services
Co.,
Ltd.
Shengzh
Controll Selling
ou
ed by goods Constru
Zhexu Referen
the same and ction Currenc April
Real ce price 3,516.81 3,516.81 20,000 No 3,516.81
actual providin Enginee y 20,2018
Estate setting
controll g ring
Co.,
er services
Ltd.
Yixian Controll Selling Constru Referen
Currenc April
Xuhua ed by goods ction ce price 3,961.61 3,961.61 15,000 No 3,961.61
y 20,2018
Park the same and Enginee setting
30
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Constru actual providin ring
ction controll g
Develop er services
ment
Co.,
Ltd.
Yingxhu
an
Fengxia
ng Controll Selling
Street ed by goods Constru
Referen
Compre the same and ction Currenc April
ce price 4,527.32 4,527.32 11,000 No 4,527.32
hensive actual providin Enginee y 20,2018
setting
Constru controll g ring
ction er services
Manage
ment
Co., Ltd
Zhangzh
ou
Controll Selling
Shenghu
ed by goods Constru
a ,Real Referen
the same and ction Currenc April
Estate ce price 2,241.39 2,241.39 20,000 No 2,241.39
actual providin Enginee y 20,2018
Develop setting
controll g ring
ment
er services
Co.,
Ltd.
Chongqi
Controll Selling
ng
ed by goods Constru
Tunghsu Referen
the same and ction Currenc April
Real ce price 1,834.88 1,834.88 5,500 No 1,834.88
actual providin Enginee y 20,2018
Estate setting
controll g ring
Co.,
er services
Ltd.
41,452.2 166,500.
Total -- -- -- -- -- -- -- --
4 00
Details of any sales return of a large
Nil
amount
Give the actual situation in the report
period where a forecast had been
Nil
made for the total amounts of routine
related-party transactions by type to
31
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the Nil
market reference price (if applicable)
2. Related-party transactions arising from asset acquisition or sold
√ Applicable □Not applicable
Book
Principle value of Valuation of
Subjects of Transacti
assets transferred Transfer Index of
of the pricing Way of on gain or Date of informati
Related Relations Type of
related the transferr assets（Ten price（Ten
parties hip trade payment loss（Ten disclosure on
transacti related
ed（Ten thousand） thousand） disclosure
ons transacti thousand）
ons thousand （If any）
）
Tunghsu
Technol Disposal
Based on http://ww
ogy Same Equity of 108,394. Monetary April
audited 0 55,000 -205.36 w.cninfo.
Group control transfer subsidiar 56 funds 14,2018
net assets com.cn
Co., ies
Ltd.
Reasons for the difference between the
transfer price and the book value or Nil
valuation value（If any）
Impact on the company's operating
Nil
results and financial status
If the relevant transaction involves
performance agreement, the
Nil
performance of the report during the
reporting period
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No such cases in the reporting period.
4. Credits and liabilities with related parties
√ Applicable □Not applicable
Whether has non-operational contact of related liability and debts or not
□ Yes √ No
No such cases in the reporting period.
32
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
5. Other significant related-party transactions
√□Applicable √ Not applicable
Nil
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement on the participation of
wholly-owned subsidiaries in the PPP （http://www.cninfo.com.cn）
January 27,,2018
project private equity investment fund and (Announcement No/:2018-013)
related party transactions
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
（1）Entrustment
√ Applicable □Not applicable
Description of custodies
During the reporting period, the Company continued entrusted with the management of Tunghsu( Yingkou)
Optoelectronic Display Co., Ltd.
In December 2011, Tunghsu Group signed the Equity Trusteeship Agreement with the Company , of which
60% share rights of Tunghsu (Yingkou) Optoelectronic Display Co., Ltd., were entrusted by the Company, where
the agreement went into effect as of March 2012. The clients paid the Company 500 thousand RMB of
management fee per year for each subject.
Expiration Confirmed
Type of Starting Date
Name of Date of Entrusting
Entrusting of Entrusting
Name of Clients/Contractee Trustee/Contra Entrusting /Contracting Fee
Asset/Contract /Contracting
ctee /Contractin at the Current
ing Asset
g Period
Tunghsu Group, Yingkou Coastal Tunghsu Tunghsu(Ying January 2012 Notes 1 250,000.00
Development Construction Co., Optoelectronic kou)
Ltd. Minmetals (Yingkou) Technology Optoelectronic
Industrial Park Development Co., Co., Ltd. Display Co.,
Ltd. Ltd.
33
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Total 250,000.00
Note 1: The trustee fee includes share right trustee fee(500 thousand RMB/year) and operation trustee fee. The
operation trustee fee is basic management fee and incentive management fee, of which the basic management fee
is RMB 1 million/year, the incentive management fee is counted by 5% of the after-tax net profit yearly achieved
by the trustee company
Note 2:On April 20, 2016, Tunghsu (Yingkou) Optoelectronic Display Co.,Ltd, upon the approval by general
shareholders’ meeting, amended the Article of Association, thus the stake of Tunghsu (Yingkou) Optoelectronic
Display Co.,Ltd held by Tunghsu Group was changed to 65% from 60%.
Note 3:On June 30, 2018, Tunghsu Group Co., Ltd. transferred all 65% of the shares in Tunghsu (Yingkou)
Optoelectronic Display Co., Ltd. to Tunghsu Optoelectronic Technology Co., Ltd.
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable √ Not applicable
No such cases in the reporting period.
2.Significant guarantees
√ Applicable □Not applicable
（1）Guarantees
Ten thousand
External Guarantee (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
Name of the date/No. of Amount of implementa
(Date of mount of Guarantee type Guarantee term associated
Company the Guarantee tion
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
Guarantee of the Company for the controlling subsidiaries
Complete Guarante
Name of the Relevant Amount Date of Actual Guarantee Guarantee
implemen e
Company disclosure of happening mount of type term
tation for
34
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
guaranteed date/No. of guarantee (Date o guarantee or associate
the signing not d
guaranteed agreement) parties
amount (Yes or
no)
Wuhu Tunghsu Two years
Optoelectronic The joint from te date
June September
Equipment 150,000 37,000 liability of advance of No No
20,2013 25,2014
Technology Co., guaranty te loan due
Ltd. date
Wuhu Tunghsu
Optoelectronic The joint
September
Equipment July 1,2016 9,500 9,500 liability 1 year No No
7,2017
Technology Co., guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic June November
132,000 83,125 liability 8 years No No
Technology Co., 19,2013 12,2013
guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic September
20,000 April 8,2014 20,000 liability 8 years No No
Technology Co., 27,2013
guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic September
20,000 May 6,2014 20,000 liability 8 years No No
Technology Co., 27,2013
guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic September December
10,000 8,125 liability 8 years No No
Technology Co., 27,2013 13,2013
guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic October November
52,300 52,300 liability 6 years No No
Technology Co., 31,2016 25,2016
guaranty
Ltd.
Fuzhou Tunghsu
The joint
Optoelectronic July
10,000 August 16,2016 10,000 liability 2 years No No
Technology Co.,, 29,2016
guaranty
Ltd.
Wuhu Tunghsu June The joint
15,000 June 29,2018 15,000 7 months No No
Optoelectronic 15,2018 liability
35
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Equipment guaranty
Technology Co.,
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic December
6,000 March 1,2018 6,000 liability 1 year No No
Technology Co., 25,2017
guaranty
Ltd.
Wuhu Tunghsu
The joint
Optoelectronic March
10,000 March 27,2018 10,000 liability 1 year No No
Technology Co., 26,2018
guaranty
Ltd
Wuhu Tunghsu
The joint
Optoelectronic March
10,000 March 28,2018 10,000 liability 1 year No No
Technology Co., 26,2018
guaranty
Ltd
Wuhu Tunghsu
The joint
Optoelectronic April
5,000 April 24,2018 5,000 liability 1 year No No
Technology Co., 13,2018
guaranty
Ltd
Wuhu Tunghsu
The joint
Optoelectronic December
10,500 May 31,2018 10,500 liability 1 year No No
Technology Co., 25,2017
guaranty
Ltd
Wuhu Tunghsu
The joint
Optoelectronic December
5,000 June 11,2018 5,000 liability 1 year No No
Technology Co., 25,2017
guaranty
Ltd
Wuhu Tunghsu
The joint
Optoelectronic June
15,000 June 26,2018 15,000 liability 7 months No No
Technology Co., 15,2018
guaranty
Ltd
Zhengzhou Xufei
The joint
Optoelectronic June
5,000 June 29,2018 5,000 liability 1 year No No
Technology Co., 12,2018
guaranty
Ltd.
Sichuan Xuhong
The joint
Optoelectronic January
4,000 February 9,2018 4,000 liability 1 year No No
Technology Co., 10,2018
guaranty
Ltd.
Sichuan Xuhong January February The joint
4,000 4,000 1 year No No
Optoelectronic 10,2018 12,2018 liability
36
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Technology Co., guaranty
Ltd.
Suzhou Tengda
The joint
Optical June
2,000 June 28,2018 2,000 liability 1 year No No
Technology Co., 12,2018
guaranty
Ltd.
The joint
Shanghai Sunlong March
5,000 March 30,2018 5,000 liability 1 year No No
Bus Co., Ltd. 26,2018
guaranty
The joint
Shanghai Sunlong March
3,000 April 2,2018 3,000 liability 1 year No No
Bus Co., Ltd. 26,2018
guaranty
The joint
Shanghai Sunlong March
7,000 March 27,2018 7,000 liability 1 year No No
Bus Co., Ltd. 26,2018
guaranty
Guangxi Sunlong
The joint
Automobile December
10,000 January 12,2018 10,000 liability 1 year No No
Manufacturing 28,2017
guaranty
Co., Ltd.
From the
effective date
of the
Guarantee
Contract to
the date of
expiration of
the
performance
period of the
Tunghsu
The joint Finance
（Kunshan） May
20,000 May 14,2018 20,000 liability Lease No No
Display Material 10,2018
guaranty Contract (if
Co., Ltd.
the date of
expiration of
the two
financial
lease
contracts is
inconsistent,
the latter
shall be
subject to the
37
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
latter);
Total of guarantee for Total of actual guarantee
subsidiaries 125,950 for subsidiaries in the 136,500
approved in the Period (B1) Period (B2)
Total of guarantee for Total of actual guarantee
subsidiaries 540,300 for subsidiaries at 376,550
approved at Period-end (B3) Period-end (B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
125,950 136,500
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
540,300 Period-end 376,550
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the
12.06%
net assets of the company(A4+B4+C4)
Including ：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 63,500
70% directly or indirectly（E）
Description of the guarantee with complex method
（2）Illegal providing of external guarantees
□ Applicable √Not applicable
No illegal providing of external guarantees in the report period.
3. Other significant contracts
□Applicable √ Not applicable
No such cases in the reporting period.
38
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
XV. Social responsibilities
1.Major environmental protection
The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Main
Emission Emission Implemente Verified
Company or pollutant Total Excessive
Emission Emission port concentratio d pollutant total
subsidiary and specific emission emission
way port number distribution n emission emission(To
name pollutant condition
condition (mg/Nm3) standards ns)
name
After the Total
Fuzhou Integrated
treatment discharge of
Tunghsu wastewater
reaches the wastewater
Optoelectro discharge 117.1T/ Not
COD standard, 1 in the 25mg/L 3.19T/ year
nic standard year exceeded
enter the southeast
Technology GB8978-19
urban corner of
Co., Ltd. 97
sewage pipe the plant
Sewage
After the Total
Fuzhou discharge
treatment discharge of
Tunghsu into urban
reaches the wastewater
Optoelectro Ammonia sewer water Not
standard, 1 in the 1 6.8m/L 0.87T/ year 15.6T/ year
nic nitrogen quality exceeded
enter the southeast
Technology standard
urban corner of
Co., Ltd. CJ-343-201
sewage pipe the plant
0
Emission
After being
Standard for
processed
Sichuan 60m high Air
by the SCR
Xuhong chimney in Pollutants
system, it is
Optoelectr Nitrogen the in 83.55T/ 87.26T/ Not
discharged 1 530mg/m3
onic Oxide northwest Electronic year year exceeded
into the
Technolog corner of Glass
atmosphere
y Co., Ltd. the plant Industry
through the
GB29495-2
chimney.
013
Sichuan After being 60m high Emission
Xuhong processed chimney in Standard for
Optoelectro by the SCR the Air Not
SO2 1 3.52mg/m3 0.48T/ year 8.49T/year
nic system, it is northwest Pollutants exceeded
Technology discharged corner of in
Co., Ltd. into the the plant Electronic
39
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
atmosphere Glass
through the Industry
chimney. GB29495-2
013
Sewage
Total
After the discharge
discharge of
Shanghai treatment into urban
wastewater
Sunlong reaches the sewer water Not
COD 1 in the 182.25mg/L
Bus Co., standard, quality exceeded
southeast
Ltd. enter the standard
corner of
urban DB31/445-2
the plant
009
Sewage
After the Total
discharge
treatment discharge of
Shanghai into urban
reaches the wastewater
Sunlong 12.1125mg/ sewer water Not
TN standard, 1 in the
Bus Co., L quality exceeded
enter the southeast
Ltd. standard
urban corner of
DB31/445-2
sewage pipe the plant
009
Sewage
After the Total
discharge
treatment discharge of
Shanghai into urban
reaches the wastewater
Sunlong sewer water Not
SS standard, 1 in the 80 mg/L
Bus Co., quality exceeded
enter the southeast
Ltd. standard
urban corner of
DB31/445-2
sewage pipe the plant
009
Sewage
After the Total
discharge
treatment discharge of
Shanghai into urban
reaches the wastewater
Sunlong 1.5975 sewer water Not
Petroleum standard, 1 in the
Bus Co., mg/L quality exceeded
enter the southeast
Ltd. standard
urban corner of
DB31/445-2
sewage pipe the plant
009
After the Total Sewage
treatment discharge of discharge
Shanghai
reaches the wastewater into urban
Sunlong 3.0267 Not
TP standard, 1 in the sewer water
Bus Co., mg/L exceeded
enter the southeast quality
Ltd.
urban corner of standard
sewage pipe the plant DB31/445-2
40
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
009
"Automotiv
e
Manufacturi
High-altitud
ng
Shanghai e emissions
(Painting)
Sunlong after Factory Not
VOCs 4 16.20mg/mAir
Bus Co., treatment west exceeded
Pollutant
Ltd. has reached
Emission
the standard
Standards"
DB32/859-2
014
7.6 mg/m "Emission 0.00136 0.02
High-altitud Standards
Shanghai e emissions West part of for Air
Sunlong after the middle Pollutants Not
SO2 10
Bus Co., treatment of Factory in Industrial exceeded
Ltd. has reached Furnaces"
the standard DB31/860-2
014
7.5 mg/m "Emission 0.636 0.84
High-altitud Standards
Shanghai e emissions West part of for Air
Sunlong after the middle Pollutants Not
NO 10
Bus Co., treatment of Factory in Industrial exceeded
Ltd. has reached Furnaces"
the standard DB31/860-2
014
3.79mg/m "Integrated 0.881 1.04
High-altitud
Emission
Shanghai e emissions South part
Standards
Sunlong after of the Not
PM 18 for Air
Bus Co., treatment middle of exceeded
Pollutants"
Ltd. has reached Factory
DB31/933-2
the standard
015
1. Fuzhou Tunghsu optoelectronic operates normally during the whole year and produces main pollution of waste
water. In 2017, it built the rain and sewage diversion system and waste water treatment station with designed
treatment capacity of 1000t/d, which adopts PH adjustment + secondary concrete sedimentation treatment process.
All production waste water will be collected after treatment and meeting standards and discharged into Rongyuan
sewage treatment plant together with pre-treated sanitary sewage by septic tank for uniform treatment. The waste
water treatment station operates normally during the report period and discharges per standards.
2. Xuhong Optoelectronic operates normally during the whole year and produces main pollution of waste gas. In
41
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2015, it built SCR flue gas denitration system for discharge of smoke discharged outside kiln after treatment of
the same, for which, the continuous online monitoring system is installed. All production waste gas will be
discharged through 60m chimney after treatment and meeting standards. SCR system operates normally during
the report period and discharges per standards.
3. Sunlong Bus operates normally during the whole year and produces main pollution of waste water, waste gas
and hazardous waste. In 2008, for treatment of coating waste water during production, it built the rain and sewage
diversion system and industrial waste water treatment station with designed treatment capacity of 10t/h, which
adopts physical + biochemical treatment process. All production waste water will be collected after treatment and
meeting standards and discharged into urban sewage pipeline (in Yuanshan Road) together with sanitary sewage
and into Bailong Port system finally. The waste water treatment station operates normally during the report period
and discharges per standards. Waste gas treatment: coating VOCs adopts emission after meeting standards
through treatment of zeolite roller+RTO combustion process, low-concentration VOCs discharge bag is equipped
with online monitoring system (FID) for real-time monitoring of the emission value; for pollution including PM
and welding fume , etc., the filter filter core drum is adopted for dust removal, after which, the gas will be emitted
in the upper air after meeting standards; any facility needing heating during production process adopts the natural
gas burner and the gas will be burned efficiently through ternary internal circulation process to reduce the energy
consumption and pollution emission.
1. Fuzhou Tunghsu optoelectronic implements strictly the environmental influence appraisal system and
“simultaneous design, construction and use” system, whose construction project conforms to laws and
regulations. For the project, the environmental appraisal reply was obtained in September 2016 from Sichuan
Environmental Protection Department.
2. Xuhong Optoelectronic implements strictly the environmental influence appraisal system and “simultaneous
design, construction and use” system, whose construction project conforms to laws and regulations. For the
project, the environmental appraisal reply was obtained in November 2016 from Sichuan Environmental
Protection Department and environmental protection acceptance was already qualified.
3.Sunlong Bus implements strictly the environmental influence appraisal system and “simultaneous design,
construction and use” system, whose construction project conforms to laws and regulations. In January 2009, the
completion acceptance reply for the project was received from Minhang District Environmental Protection Bureau,
Shanghai (MHBGXY[2009] No. 041).
1. Fuzhou Tunghsu Optoelectronic entrusts one qualified third party with preparation of Emergency Program for
Environmental Emergencies of Fuzhou Tunghsu Photoelectricity Technology Co., Ltd. and organizes and
conducts training on such program regularly to improve the company’s capacity to deal with any environmental
pollution emergency practically.
2. Xuhong Optoelectronic entrusts one qualified third party with preparation of Emergency Program for
Environmental Emergencies of Sichuan Xuhong Optoelectronic Technology Co., Ltd., sets internally full-time
environmental-protection managers and equipment operators for implementation of each
environmental-protection job and organizes and conducts training on such program regularly to improve the
company’s capacity to deal with any environmental pollution emergency practically.
3.Sunlong Bus entrusts one qualified third party with preparation of Emergency Program for Environmental
Emergencies of Shanghai Sunlong Bus Co., Ltd.., sets internally full-time environmental-protection managers and
equipment operators for implementation of each environmental-protection job and organizes and conducts training
on such program regularly to improve the company’s capacity to deal with any environmental pollution
emergency practically.
42
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
1. Fuzhou Tunghsu Optoelectronic abides by national and local laws, regulations and relevant provisions strictly,
and entrust Fujian Tuopu Detection Technology Co., Ltd. to carry out monthly detection of wastewater and
quarterly detection of noise of Fuzhou Tunghsu Photoelectricity as required, and log in to the self-monitoring
website in time every month to upload data information such as detection results.
2. Xuhong Optoelectronic abides by national and local laws, regulations and relevant provisions strictly, and
entrusts Sichuan Zhonghuan Environmental Testing Technology Co., Ltd. to carry out quarterly testing of the
company’s exhaust gas as required, and Sichuan Jiente Environmental Protection Equipment Co., Ltd. to carry
out operation and maintenance of our company’s flue gas online monitoring equipment, so as to ensure that the
company’s air pollution data are transmitted to the national environmental protection monitoring platform in real
time.
3. Sunlong Bus abides by national and local laws, regulations and relevant provisions strictly, and entrusts Ingel
Testing Technology Service (Shanghai) Co., Ltd. to carry out quarterly testing of waste water, waste gas and noise
as required, and regularly log in the environmental protection survey platform and the environmental statistics
business system to upload data such as testing results.
Other environmental information that should be disclosed
Company Name of Disposal Storage Place Distruibution Carried Annual Disposal Inentory
Name or major Method of Producing Standard Output (tons) Quantity Quanity
Subsidiary pollutants and
Name characteristic
pollutants
Shanghai Waste residue, Entrust a Dangerous Painting / 35.18 13.66 18.52
Sunlong Bus waste thinner qualified third waste workshop,
Co., Ltd. party for temporary assembly
Waste 11.28 6.73 3.05
disposal storage shop,
adhesive
commissionin
sealant
g workshop
Waste empty 16.53 6.73 4.8
barrel
Notes：This table shows the hazardous wastes status of Sunlong Bus. It’s the amount of hazardous waste generated
in 2017. The annual amount of hazardous waste changes with the change of production capacity. The untreated
inventory is due to the limited annual disposal capacity of the hazardous waste, and it will be disposed in the next
year if the treatment and dispose is not completed in the current year.
Other environmental protection related information
Notes：
1. The Shanghai Municipal Pollutant Discharge Permit obtained by Sunlong Bus does not state the request of the
total amount of wastewater discharged and the total amount of normative emissions. The emission concentration
in the table is the average value of the quarterly test data.
2. The Shanghai Municipal Pollutant Discharge Permit does not state the requirement of the total amount of
volatile organic compounds emitted in the exhaust gas and the total normative amount of emissions. The total
43
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
amount of SO2 and NOX emissions of Sunlong Bus is calculated based on the total amount of natural gas used and
the combustion emissions coefficient.
2.Overview of the annual targeted poverty alleviation
(1) Precision poverty alleviation planning
（2）Half-year poverty relieving summary
1. On February 2, 2018, Tunghsu Photoelectricity donated the first batch of 300 graphene heaters to Fuping
County, Hebei Province for free in order to realize clean heating in winter. At the same time, it also donated
200,000 yuan worth of books. This donation is only the first pilot project, and the scope of donation will be
appropriately expanded in the later period according to the operation situation.
2. On February 8, 2018, Tunghsu Photoelectricity donated 530 sets of graphene heaters which worth 890,400 yuan
and 200,000 yuan worth of books to the central primary school at Gonghui Town, Zhangbei County, Hebei
Province and to center gerocomium at Haojiaying township to help primary school students and widows and
orphans live in warm in the winter and do their part in the primary and secondary education.
3. On June 19, 2018, Guangxi Sunlong Automobile Manufacturing Co., Ltd., a wholly-owned subsidiary of the
company, donated 228,500 yuan to Zhongdang village, which lies at Jiafang Township, Mashan County, Guangxi
Province, so as to assist in the Sunlong twinning project of poverty alleviation project of the deep poverty-stricken
village in Guangxi: reservoir project of drinking water engineering.
4. During the reporting period, Shanghai Sunlong, Jiangsu Jixing and Suzhou Tenda, which are the wholly-owned
subsidiaries of the company, donated 10,000 yuan, 10,000 yuan and 20,000 yuan respectively for poverty
alleviation.
XVI.Other material events
□Applicable √ Not applicable
No such cases in the reporting period.
XVII. Material events of subsidiaries
□ Applicable √ Not applicable
44
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proporti Capitalizat
on Share ion of
Bonus Subtot Proportio
allotm common Other Quantity
shares al n
ent reserve
fund
1.Shares with conditional
1,385,624,525 24.18% 1,385,624,525 24.18%
subscription
1. State-owned legal
60,389,095 1.05% 60,389,095 1.05%
person shares
3.Other domestic shares 1,325,235,430 23.13% 1,325,235,430 23.13%
Incl：Domestic legal
1,323,974,680 23.11% 1,323,974,680 23.11%
person shares
Domestic Natural Person
1,260,750 0.02% 1,260,750 0.02%
shares
II.Shares with
4,344,625,593 75.82% 4,344,625,593 75.82%
unconditional subscription
1.Common shares in RMB 4,094,625,592 71.46% 4,094,625,592 71.46%
2.Foreign shares in
250,000,001 4.36% 250,000,001 4.36%
domestic market
III. Total of capital shares 5,730,250,118 100.00% 5,730,250,118 100.00%
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
45
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II. Issuing and listing
□ Applicable √ Not applicable
III. Shareholders and shareholding
In Shares
Total number of preferred
358,541 (including
Total number of common shareholders that had restored
341,239shareholders holding A
shareholders at the end of the the 0
shares and 17,302 shareholders
reporting period voting right at the end of the
holding B shares）
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proporti Changes Number of share
Nature of Number of Amount of Amount of
on of in pledged/frozen
Shareholders shareholde shares held at restricted un-restricted
shares reporting State of
r period -end shares held shares held Amount
held（%） period share
Domestic
Non
Tunghsu Group -State-own 15.97% 915,064,091 791,889,488 123,174,603 Pledge 799,643,042
4,088,500
ed legal
person
Domestic
Shijiazhuang Non
Baoshi Electronic -State-own 5.80% 332,382,171 0 0 332,382,171 Pledge 153,520,000
Group Co., Ltd. ed legal
person
Domestic
Shanghai Huimao
Non
Enterprise
-State-own 4.58% 262,626,262 0 262,626,262 0 Pledge 80,240,722
Management Co.,
ed legal
Ltd.
person
46
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
China Fund
Management Co.,
Ltd.－Huaxia
Bank－TTCO
Trust Co., Ltd.－ Other 2.54% 145,759,116 0 0 145,759,116
TTCO Trust Co.,
Ltd.－Shunjing
No.5 Single
capital trust
Minsheng Royal
Fund Management
Co., Ltd－-Ping
Other 1.70% 97,192,224 0 97,192,224 0
An Bank-Daye
TrustZengli 2
single Fund Trust
Tunghsu
Optoelectronic
Technology Co., Other 1.27% 72,639,296 0 72,639,296 0
Ltd.－The first
ESOP
Beixin Ruifeng
Fund－China
Merchants Bank
－Daye Trust－ Other 1.08% 62,095,032 0 62,095,032 0
Daye TrustProfit
increase 3 single
fund plan
Domestic
Shenzhen Taianer
Non
Information
-State-own 1.07% 61,165,682 0 0 61,165,682 Pledge 55,265,682
Technology Co.,
ed legal
Ltd.
person
Wanhe Securities
－China
Merchants Bank
－Wanhe
Other 0.96% 55,246,500 0 0 55,246,500
Securities and
No.1 Collective
asset management
plan
Nuoan
Other 0.96% 55,246,487 0 0 55,246,487
Fund-Industrial
47
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Securities-Nanjing
Shuangan Assets
Management Co.,
Ltd.
Among the top 10 shareholders, CITIC Fund-Huaxia Bank-Tibet Trust-Tibet Trust-Shunjing No.5
Single Fund Trust, and Shenzhen Taianer Information Technology Co., Ltd became the top 10
shareholders of the company by participating in the subscription of the company's non-public share
issuance in 2016-and the sale-restricted period for those shares held is 12 months, that is, from
August 26, 2016 to August 25, 2017. Among the top 10 shareholders, Shanghai Huimao Enterprise
Strategy investors or general Management Co., Ltd, Minsheng Jiayin Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2
legal person becomes top 10 Single Fund Trust, and Beixin Ruifeng Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli
shareholders due to rights No.3 Single Fund Plan became the top 10 shareholders of the company by participating in the
issued (if applicable)（See subscription of shares of the company's 2017 Non-public Share Issuance and Paying Cash to
Notes 3） Purchase Assets and Raising Matching Funds and The Related Transaction, with that: the shares
held by Shanghai Huihao Enterprise Management Co., Ltd has a sale-restricted period of 36 months,
namely from November 30, 2017 - November 29, 2020; and the shares held by Minsheng Jiayin
Fund-Ping An Bank-Daye Trust-Daye Trust Zengli No.2 Single Fund Trust and Beixin Ruifeng
Fund-China Merchants Bank-Daye Trust-Daye Trust Zengli No.3 Single Fund Plan have a
sale-restricted period of 12 months, namely from December 29, 2017 to December 28, 2018.
Among the top ten shareholders , Tunghsu Group and Baoshi Group have relationship and
Explanation on shareholders
constitute persons taking concerted action. The company does not know whether there is
participating in the margin
relationship between other 8 shareholders or whether they are persons taking concerted action
trading business
defined in Administrative Measures Relating to Acquisitions of Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Shijiazhuang Baoshi Electronic RMB Common
332,382,171 332,382,171
Group Co., Ltd. shares
China Fund Management Co., Ltd.
－Huaxia Bank－TTCO Trust Co., RMB Common
145,759,116 145,759,116
Ltd.－TTCO Trust Co., Ltd.－ shares
Shunjing No.5 Single capital trust
RMB Common
Tunghsu Group Co., Ltd. 123,174,603 123,174,603
shares
Shenzhen Taianer Information RMB Common
61,165,682 61,165,682
Technology Co., Ltd. shares
Wanhe Securities－China
Merchants Bank－Wanhe Securities RMB Common
55,246,500 55,246,500
and No.1 Collective asset shares
management plan
Nuoan Fund-Industrial 55,246,487 RMB Common 55,246,487
48
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Securities-Nanjing Shuangan Assets shares
Management Co., Ltd.
Zhonghai Trust Co., Ltd.－
Zhonghai Trust－Tunghsu RMB Common
52,555,280 52,555,280
Optoelectronic ESOP pooled Fund shares
trust
Notional Securities fund－Bohai
Bank－Minsheng Trust－China
RMB Common
Minsheng TrustZhicheng No.192 48,619,336 48,619,336
shares
Tunghsu Optoelectronic Directional
additional l fund trust plan
Minsheng Royal Fund Management
Co., Ltd.-Ping An Bank-Ping An RMB Common
47,492,649 47,492,649
Trust-Ping An Wealth* Huitai shares
No.163 Single Fund Trust
RMB Common
China Securities Finance Co., Ltd. 30,906,112 30,906,112
shares
Explanation on associated
relationship or consistent action
among the top 10 shareholders of The top 10 tradable shareholders of Shijiazhuang Baoshi Electronic Group Co., Ltd. and the to
non-restricted negotiable shares and p ten shareholders of Tunghsu
that between the top 10 shareholders Group Co., Ltd. have relationship and constitute persons taking concerted action.
of non-restricted negotiable shares
and top 10 shareholders
Notes to the shareholders involved
in financing securities (if any)(See Not applicable
Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
IV. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
49
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
50
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2017 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Mr. Li Zhaoting is the chairman of Tunghsu Group, in
Director, Board
Li Zhaoting Dimission April 25,2018 order to focus more on the overall strategic planning of
Chairman
Tunghsu Group and related matters. Job changes.
Director, Board
Wu Jiwei Appointment April 25,2018 New Appointment
Chairman
Director, Board Unable to perform due to health reasons, apply for
Wu Jiwei Dimission August 3,2018
Chairman resignation.
Director, Board
The chairman of the board of directors was elected by
Wang Lipeng Chairman, Elected August 3,2018
the eighth board of directors.
General Manager
Huang Jinliang CFO Dimission July 27,2018 Job Change
Feng Qiuju CFO Appointment July 27,2018 New Appointment
Resigned as a director in accordance with the
Director, Board
Gong Xin Dimission August 3,2018 company's talent strategy adjustment, and continued to
secretary
serve as secretary of the board of directors
51
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
Yes
1. Basic information of the corporate bonds
Method of
Bond repayment of
Abbreviated
Bond Name Code Issue Date Date Due Balance(RMB’ Interest Rate the principal
Bond Name
0000) and interest
payment
Interest paid
2015- every year, the
corporate bond principal will
of Tunghsu 15 Tunghsu be repaid with
112243 May 19,2015 May 19,2020 95,604.27 6.80%
Optoelectronic bonds the last unpaid
Technology interest in one
Co., Ltd time as the
bond due
Listed place or Transaction
Shenzhen Stock Exchange
place for the corporate bonds
Arrangement of investor’s
Investor resale option
eligibility
Information about interest paid
The first period bond interest 60,000,000.00 was paid in full amount on schedule in the current
and bonds honored during the
period.
reporting period
According to the sell back terms set out in the 2015 Corporate Bond Prospectus of Tunghsu
Optoelectronic Technology Co., Ltd. announced by Tunghsu Optoelectronic Technology Co.,
Ltd., the company issued the First Indicative Notice of Tunghsu Optoelectronic Technology Co.,
Ltd. on the Adjustment of the Nominal Interest Rate of “15 Tunghsu Bonds” and the
Implementation Method of Investors’ Sell Back (notice No.: 2018-036) on April 3, 2018, the
Second Indicative Notice of Tunghsu Optoelectronic Technology Co., Ltd. on the Adjustment of
Implementation of relevant the Nominal Interest Rate of “15 Tunghsu Bonds” and the Implementation Method of Investors’
special clauses(if applicable) Sell Back (notice No.: 2018-037) on April 4, 2018, and the Third Indicative Notice of Tunghsu
such as option clause for the optoelectronic Technology Co., Ltd. on the Adjustment of the Nominal Interest Rate of “15
bond issuer or investors and Tunghsu Bonds” and the Implementation Method of Investors’ Sell Back (notice No.: 2018 - 038)
exchangeable clause on April 9, 2018. The sell back price of “15 Tunghsu Bonds” is RMB 100.00 yuan/sheet
(excluding interest), the sell back reporting period is from April 3, 2018 to April 9, 2018. The
issuer of this corporate bond, i.e. the company, has the right to decide to adjust the coupon rate of
the subsequent term at the end of the third year of the current bond’s duration during the duration
of the current corporate bond (bond code: 112243, hereinafter referred to as “15 Tunghsu Bonds”).
The coupon rate of this bond is 6.00 % in the first three years of the duration. At the end of the
third year of the duration of this bond, the company chose to raise the coupon rate, that is, the
52
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
coupon rate of this bond will be raised from 6.00 % to 6.80 % in the next two years of the duration
of this bond, and will remain unchanged for this two years (from May 19, 2018 to May 18, 2020).
2.Information about the bond trustee and credit rating agency
Bond trustee:
19-20/F, Main
Tower ,
Guangzhou
International
Guangzhou
Business Finance Center, Shi Jianhua,
Name Securities Co., Contacts Telephone 020-88836999
Address No.5 Zhujiang Yan Xiangjun
Ltd.
West Road,
Tianhe District
Guangzhou
City
The credit rating agency who follow up and rate the corporate bonds in the reporting period:
Business Room 508 Ailiyuan Apartment, No.38 Water
Name United Rating Co.,Ltd
Address Park North Road, Nankai District, Tianjin City
During the report period, the bond trustee,
credit rating agency employed by the
company that have changed, reasons for
Not applicable
the change, performing procedures,
relevant influence on investors, etc ( if
applicable)
III. Information about the use of the funds raised by issuing corporate bonds
The information of the use of the funds Using the funds raised by issuing corporate bonds strictly conforming to the purpose
raised by issuing corporate bonds and stipulated by Rules of Management and Use of the Raised Funds and the Prospectus,
related implementation procedure and implemented the corresponding approval procedures
Ending balance of the year（Ten thousand） 0
Operation status of the special account for
Normal
the raised funds
Whether the use of the raised funds
conforming to the purpose, use plan and
The use of the raised funds conformed to the purpose promised in the Prospectus
other provisions specified in the
Prospectus
IV. Information about the rating of the corporate bonds
On June 14, 2018, United Ratings Co., Ltd. issued trace rating report LHPZ [2018] No.960 based on the
company’s 2017 Annual Report. This rating result is long-term credit rating AA+ and its outlook is "Steady".
53
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(For details, please refer to the "Tracking Rating Announcement" of the company disclosed on www.cninfo.com
cn June 16, 2018)
According to the United Rating Co.,Ltd’s requirements on tacking and rating, a regular rating shall be carried out
within 2 months after the company’s disclosure of 2017 annual report. Also, the United Rating Co.,Ltd shall carry
out randomly tracking and rating during the duration of the corporate bonds based on relevant information.
V. The corporate bond’s credit mechanism, repayment plan and other safeguard measures for repayment
Repayment Plan
I. Payment of the interest
1. The interest of the bonds shall be paid each year and the last payment of interest shall be paid with the principal.
Every payment of interest shall not be charged on interest after the interest paying day and the principal shall not
be charged on interest after the bond’s date due. The interest payment day of this corporate bond is May 19 of
each year from 2016 to 2020(If it is not a working day, the payment day will be postponed to the first working day
after the day).If the investors exercise the puttable right at the end of the third year in the duration of the bond, the
interest payment day of the bonds sold back is May 19 of each year from 2016 to 2018.
2. The payment of the interest of the bonds shall be handled through the bond registration institution and other
related institutions. The concrete information of the interest payment will be specified in the Interest Payment
Announcement issued on the media designated by CSRC, with in accordance with the relevant state regulations.
3. According to relevant national tax laws and regulations, the investor of the corporate bond shall fully bear the
relevant tax should be paid.
II. The repayment of the principal
1. The principal will be fully repaid in a time, and its repaying day is May 19, 2020. If the investors exercise the
puttable right at the end of the third year in the duration of the bond, the repaying day of the principal of the bonds
being sold back is May 19, 2018. (If the repaying day aforesaid is not a working day, the repaying day shall be
postponed to the first working day after the original day, and there is no need to pay interest in the deferred
period)
2. The repayment of the principal of the bonds will be handled through the bond registration institution and other
related institutions. The concrete information of repayment of the principal of the bonds will be specified in the
Principal Repayment Announcement issued on the media designated by CSRC, with in accordance with the
relevant state regulations.
Safeguard measures for the repayment
I. A designated special department in charge of the repayment working
The company designated its finance department to take the lead in the coordination work for repayment of the
bonds and the finance department shall coordinate other relevant departments to schedule the demanded funds for
the repayment of the bonds in every year’s financial budget, for ensuring the repayment of the interest and
principal of the bonds is timely, guaranteeing the bond-holder’s interest. The company will set up a working team
for repayment 15days before the day that is the interest paying day or principal repaying day of the bonds, with
the personnel of the finance department being included, to specially in charge of the work of paying the interest of
the bonds and the repayment of the principal.
II. Establishing Meeting Rules for Bond-holders
According to the provisions specified in the Pilot Approach, the company with bond trustee has established the
Meeting Rules for Bond-holders for the corporate bonds. The Meeting Rules for Bond-holders specified the scope,
procedures and other important items for the bond-holders to exercise rights through the Meeting of the
54
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Bond-holders, which provided a reasonable institutional arrangement for the timely and full payment to the
interest and the principal of the corporate bonds.
III. Making the full use of the bond trustee
According to the requirements specified in the Pilot Approach, the company has adopted the institution of bond
trustee, engaged Guangzhou Securities Co.,Ltd as the trustee of the bonds this time and signed the Agreement of
Bond Entrusted Management with Guangzhou Securities. The Bond Trustee shall represent all the bond-holders to
supervise the relevant information about the company and take all necessary measures to protect the legitimate
interest of the bond-holders when the interest or principal of the bonds cannot be repaid in time.
The company shall strictly conform to the provisions specified in the Agreement of Bond Entrusted Management,
being cooperative when the bond trustee performance its duties, and regularly submit the report of commitment
fulfillment status to the bond trustee. When there is a possible bond default, the company shall notice the bond
trustee in time, thus the bond trustee can take other necessary measures in time according to the Bond Entrusted
Management.
Ⅳ. Strictly fulfilling the obligation of information disclosure
The company shall adhere to the information disclosure principles of authentic, accurate and completed, making
the information of the company’s repaying ability and use of the raised funds to be supervised by the bond trustee
and shareholders, for preventing the risk of repayment. According to the Agreement of Bond Entrusted
Management and relevant regulations, the company shall release the information of major issues, which include
but not limited to the following contents: (1) According to the Prospectus and agreement with the registered
trustee institution, the company shall transfer the maturity interest payment or principal to the account designated
by the registered trustee institution; (2) By estimate or in fact, the company cannot fully repay the interest or
principal of the bonds in time according to the provisions stipulated in the Prospectus; (3) Singing the guarantee
contract for external or other major contracts may have significant adverse effects of repaying the interest and
principal of the bonds; (4) A severe loss occurred or expected to occur, and the loss exceeds 10% of the net asset
audited in the last accounting year; (5) Occurrence of capital reduction, merger, division, dissolution, file for
bankruptcy, entering into bankruptcy procedure or other main changes of the company; (6) Occurrence of the
amount of subject in the major arbitration or lawsuit exceeding 10% of the net asset audited in the last accounting
year; (7) Planning to dispose the asset or debt with subject amount exceeding 10% of the net asset audited in the
last accounting year; (8) Planning to change the bond trustee; (9) Failing to perform or Planning to change the
stipulations specified in the Prospectus; (10) Alteration of the designated person for specially in charge of the
relevant matters of the corporate bonds; (11) Occurrence of suspending the bond transaction; (12) Others may
significantly impact the repaying of the interest and principal or circumstances specified by laws, administrative
regulations and stipulations by the CSRC or exchange.
Ⅴ. Setting up the capital management plan and strictly implementing the plan
After the issuance of the bonds, the company shall further reinforce the company’s assets and liabilities
management, liquidity management, use management of the raised funds, funds management and so forth
according to the company’s debt structure. Also, the company will set up monthly and yearly funds use plan based
on the maturity of repaying the interest and principal, ensuring on-schedule, timely and full-amount preparing of
the funds for repaying every year’s interest or principal of the bonds to adequately protect the investor’s interest.
VI. Commitments
According to the resolutions of the issuance of the bonds approved on the board meeting on Oct 21, 2014 and the
general meeting of shareholders on Nov 6, 2014, when the company cannot repay the interest or principal of the
bonds in time or fully repay the interest or principal of the bonds, the company shall take the following resolutions
and make corresponding measures: (1) None profit distribution to shareholders; (2) Postponing capital
55
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
expenditure items, such as major investment, merger and acquisition; (3) Reducing or stopping the salaries and
bonuses of the directors and senior management personnel; (4) No transferring of principal responsible personnel
and so on.
VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the reporting period.
VII. Information about the obligations fulfilled by the bond trustee in the reporting period
The bond trustee has been continuously following up the company’s credit status, The bond trustee Guangzhou
Securities Co., Ltd. disclosed the Tunghsu Optoelectronic Technology Co., Ltd. on April 27, May 10, and August
9, 2018, according to major changes in the chairman of the company and partial bond resale. The company's 2015
corporate bond major issues were entrusted with an interim report on management affairs.
VIII. The key accounting data and financial indicators of the latest two years to the end of the reporting
period
Ten thousand
As at the end of the reporting
Items As at the end of last year YoY+/-（%）he same period
period
Current ratio 205.16% 223.59% -18.43%
Debt ratio 52.04% 53.11% -1.07%
Quick ratio 171.37% 177.08% -5.71%
Reporting period The same period of last year At the same time rate of change
EBITDA interest coverage ratio 3.44 2.85 20.70%
Loans repayment rate 100.00% 100.00% 0.00%
Interest payment rate 100.00% 100.00% 0.00%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
□ Applicable √ Not applicable
IX. The company fails to repay the debt
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Information about the repayment of interest and principal for other bonds or debt financing
instruments
1. Bonds issuing, interest payment and cashing within the report period
Nil
2. Unmatured bonds issuing, interest payment and cashing in previous years
(1)As approved by China Securities Regulatory Commission file of ZJXK[2015] No. 635, the company
issued toward the public 1 billion bones on May 19, 2015 , In 2018, the third-phase bond interest was paid RMB
60,000,000.00; on May 19, 2018, the resale amount was RMB 43,957,300.00, and the coupon rate was adjusted
from 6.00% to 6.80%.
（2）The company 8th Board of Directors approved the application to National Association of Financial Market
56
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Institutional Investors (NAFMII) for registration and issuance of less than 4.7 billion medium term note on
September 8, 2016. The extraordinary general shareholders’ meeting was convoked on September 26, 2016 and
approved the program concerning the proposed registration and issuance of the medium term note. The medium
term note in 2016 was 4.7 billion in two periods including the first period with two types of (3+2 years) and 5 years
totaling up to 3 billion and the second period with two types of (3+2 years) and 5 years totaling up to 1.7 billion,
which would both adopt the interest payment per year, principal repayment upon expiration and the interest payment
together with the principal cashing for the last period. The interest payment period has not expires within the report
period and the interest accrued was RMB147,856,644.84 .
XI.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
The balance of the total amount of the short-term and long-term loans is RMB 13,934,712,962.15, decreased
RMB1,184,082,357.41compared with the end of year 2017, which mainly because of the need of the production and
operation and the construction of projects. The company strictly conformed to requests of bank loans to use the
funds and fully repaid the interest and principal to the bank in time.
XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the
issuance of the bonds during the reporting period
During the reporting period, the company had been strictly conforming to the stipulations specified in the
Prospectus of the issuance of the bonds to use the raised funds, and the company had fulfilled the commitments of
not using any raised funds to indirectly or directly invest real estate business or raise capital for the subsidiaries
engaged in real estate business.
XIII.Major events occurred during the reporting period
The bond trustee Guangzhou Securities Co., Ltd. disclosed the Tunghsu Optoelectronic Technology Co., Ltd. on
April 27, May 10, and August 9, 2018, according to major changes in the chairman of the company and partial
bond resale. The company's 2015 corporate bond major issues were entrusted with an interim report on
management affairs.
XIV. Whether the corporate bonds have a guarantor
□ Yes √No
57
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1.Consolidated Balance sheet
Prepared by: Tunghsu Optoelectronic Technology Co., Ltd.
June 30,2018
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 23,794,597,055.80 27,456,759,768.86
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 775,388,432.95 538,128,584.84
Account receivable 9,937,647,168.77 7,873,419,684.42
Prepayments 1,531,060,694.47 2,021,119,950.95
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 29,306,335.47 49,456,785.29
Dividend receivable
Other account receivable 1,349,893,792.08 1,044,890,336.32
Repurchasing of financial assets
58
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Inventories 4,210,883,497.85 4,914,482,277.21
Assets held for sales 126,264,435.58 213,034,435.58
Non-current asset due in 1 year
Other current asset 1,207,390,102.41 2,559,947,333.75
Total of current assets 42,962,431,515.38 46,671,239,157.22
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 243,158,605.30 100,000,056.00
Expired investment in possess
Long-term receivable 138,899,570.70 143,988,866.91
Long term share equity investment 2,142,476,783.38 2,130,640,158.90
Property investment 66,930,130.01 58,229,439.86
Fixed assets 10,938,598,162.98 11,378,564,235.15
Construction in progress 5,387,496,213.47 3,663,486,639.90
Engineering material
Fixed asset pending for disposal
Productive biological assets
Gas & petrol
Intangible assets 1,149,208,605.35 1,001,796,110.02
R & D petrol 23,318,709.50 15,397,704.97
Goodwill 2,840,823,542.00 2,587,678,140.99
Long-germ expenses to be amortized 15,312,986.85 26,538,304.02
Differed income tax asset 503,169,733.61 526,817,792.76
Other non-current asset 282,006,939.10 306,402,939.48
Total of non-current assets 23,731,399,982.25 21,939,540,388.96
Total of assets 66,693,831,497.63 68,610,779,546.18
Current liabilities
Short-term loans 6,812,784,698.87 5,712,826,382.20
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
59
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Derivative financial liabilities
Notes payable 999,267,096.40 1,063,897,679.89
Account payable 4,690,738,505.02 4,636,989,039.65
Advance payment 976,357,517.81 1,655,137,563.63
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 162,528,069.08 207,697,362.25
Tax payable 454,014,088.92 294,979,419.96
Interest payable 196,787,018.42 107,195,147.20
Dividend payable 313,488,825.93 35,000,000.00
Other account payable 1,801,519,889.12 1,887,520,891.88
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 4,373,736,193.82 5,045,608,756.45
Other current liability 159,985,427.25 227,155,178.97
Total of current liability 20,941,207,330.64 20,874,007,422.08
Non-current liabilities：
Long-term loan 3,823,532,289.32 5,209,726,250.77
Bond payable 5,625,817,373.23 5,665,126,090.52
Including：preferred stock
Sustainable debt
Long-term payable 2,976,840,728.76 3,276,308,254.44
Long-term payable employees’s
remuneration
Special payable
Expected liabilities 113,262,230.99 156,421,713.31
Deferred income 555,127,835.23 592,290,617.42
Differed income tax liability 62,295,616.96 60,149,328.74
Other non-current liabilities 608,000,000.00 608,000,000.00
Total non-current liabilities 13,764,876,074.49 15,568,022,255.20
Total of liability 34,706,083,405.13 36,442,029,677.28
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Owners’ equity
Share capital 5,730,250,118.00 5,730,250,118.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 21,793,727,706.54 21,987,405,220.42
Less：Shares in stock 4,422,320.00 4,422,320.00
Other comprehensive income 3,233.93 -4,518.45
Special reserves 1,990,473.67 1,983,921.21
Surplus reserves 224,133,824.86 224,133,824.86
Common risk provision
Undistributed profit 3,467,550,877.18 3,010,372,296.37
Total of owner’s equity belong to the
31,213,233,914.18 30,949,718,542.41
parent company
Minority shareholders’ equity 774,514,178.32 1,219,031,326.49
Total of owners’ equity 31,987,748,092.50 32,168,749,868.90
Total of liabilities and owners’ equity 66,693,831,497.63 68,610,779,546.18
Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-in -charge of the accounting organ：Gao Feipeng
2. Balance sheet of the Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Cash and bank balances 7,180,172,168.51 11,224,359,236.39
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Notes receivable 1,250,000.00 200,000.00
Account receivable 23,732,862.59 23,837,262.59
Prepayments 7,684,221.64 16,902,375.19
Interest receivable 8,763,055.45 41,868,921.15
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Dividend receivable 665,000,000.00
Other account receivable 7,276,060,704.75 4,790,712,672.70
Inventories 499,916,720.50 509,283,364.38
Assets held for sales
Non-current asset due in 1 year
Other current asset 148,973.38 1,220,148,973.38
Total of current assets 14,997,728,706.82 18,492,312,805.78
Non-current assets：
Disposable financial asset 129,500,056.00 100,000,056.00
Expired investment in possess
Long-term receivable
Long term share equity investment 25,058,355,620.34 23,020,364,897.17
Property investment
Fixed assets 42,430,964.28 44,669,881.93
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 9,513,240.92 9,687,094.58
R & D petrol
Goodwill
Long-germ expenses to be amortized
Differed income tax asset 59,375,663.74 58,105,970.47
Other non-current asset 1,381,400.00 1,381,400.00
Total of non-current assets 25,300,556,945.28 23,234,209,300.15
Total of assets 40,298,285,652.10 41,726,522,105.93
Current liabilities
Short-term loans 2,640,000,000.00 2,760,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 11,734,918.78 15,219,920.86
62
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Advance payment 421,587.90 421,587.90
Employees’ wage payable 2,841,705.33 4,061,413.48
Tax payable 28,982,766.19 28,150,779.48
Interest payable 164,902,902.61 79,827,566.10
Dividend payable 313,488,825.93
Other account payable 983,980,211.32 423,790,359.27
Liabilities held for sales
Non-current liability due in 1 year 2,138,316,666.62 2,769,233,333.30
Other current liability
Total of current liability 6,284,669,584.68 6,080,704,960.39
Non-current liabilities：
Long-term loan 611,000,000.00 1,512,500,000.00
Bond payable 5,625,817,373.23 5,665,126,090.52
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Differed income
Differed income tax liability
Other non-current liabilities
Total of Non-current liabilities 6,236,817,373.23 7,177,626,090.52
Total of liability 12,521,486,957.91 13,258,331,050.91
Owners’ equity
Share capital 5,730,250,118.00 5,730,250,118.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 21,833,675,749.27 21,861,207,672.90
Less：Shares in stock 4,422,320.00 4,422,320.00
Other comprehensive income
Special reserves
Surplus reserves 205,144,600.53 205,144,600.53
63
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Undistributed profit 12,150,546.39 676,010,983.59
Total of owners’ equity 27,776,798,694.19 28,468,191,055.02
Total of liabilities and owners’ equity 40,298,285,652.10 41,726,522,105.93
3.Consolidated income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 11,129,851,790.88 4,876,438,604.10
Incl：Business income 11,129,851,790.88 4,876,438,604.10
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 10,088,242,118.58 4,162,420,389.45
Incl：Business cost 9,021,989,897.09 3,473,962,810.22
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 186,096,120.70 48,928,687.73
Sales expense 93,892,692.42 42,456,252.57
Administrative expense 389,977,702.76 229,378,673.33
Financial expenses 395,227,116.30 368,191,927.63
Asset impairment loss 1,058,589.31 -497,962.03
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 23,706,518.19 6,676,924.21
Incl: investment gains from affiliates 11,836,624.48 -15,506,492.83
Gains from currency exchange
（“-”for loss）
Assets disposal income -664,826.45
Other income 108,362,056.52 86,680,000.00
64
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
III. Operational profit（“-”for loss） 1,173,013,420.56 807,375,138.86
Add ：Non-operational income 5,945,896.93 70,508,514.69
Less：Non business expenses 2,767,812.01 602,497.65
IV.Total profit(“-”for loss) 1,176,191,505.48 877,281,155.90
Less：Income tax expenses 282,130,776.24 191,513,884.53
V. Net profit 894,060,729.24 685,767,271.37
1.Net continuing operating profit 894,060,729.24 685,767,271.37
2.Termination of operating net profit
Net profit attributable to the owners of
858,296,089.08 637,480,381.47
parent company
Minority shareholders’ equity 35,764,640.16 48,286,889.90
VI. Other comprehensive income 14,095.23 -1,368.93
Net of profit of other comprehensive inco
me attributable to owners of the parent co 7,752.38 -1,368.93
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be 7,752.38 -1,368.93
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina 7,752.38 -1,368.93
65
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
ncial statements
6.Other
Net of profit of other comprehensive inco
6,342.85
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 894,074,824.47 685,765,902.44
Total comprehensive income 858,303,841.46 637,479,012.54
attributable to the owner of the parent
company
Total comprehensive income
35,770,983.01 48,286,889.90
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.15 0.13
(II)Diluted earnings per share 0.15 0.13
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB-9,555,668.76, last period the combined party realized RMB-5,213,532.93.
Legal representative ：Wang Lipeng
Person-in-charge of the accounting work：Feng Qiuju
Person-in -charge of the accounting organ：Gao Feipeng
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 55,315,982.40 38,597,681.18
Incl：Business cost 38,492,540.23 28,092,263.28
Business tax and surcharge 2,172,697.75 3,585,313.26
Sales expense
Administrative expense 24,293,737.94 22,819,056.56
Financial expenses 251,600,276.69 251,791,850.48
Asset impairment loss 7,901,312.69 -279,738.15
Add：Gains from change of fir value
（“-”for loss）
66
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Investment gain（“-”for loss） 5,131,289.44 6,675,734.01
Incl: investment gains from affiliates 11,835,887.67 -15,507,683.03
Assets disposal income
Other income
II. Operational profit（“-”for loss） -264,013,293.46 -260,735,330.24
Add ：Non-operational income 671.41 6,388.00
Less：Non business expenses 0.15
III.Total profit(“-”for loss) -264,012,622.20 -260,728,942.24
Less：Income tax expenses -1,269,693.27 3,374,750.50
IV. Net profit（“-”for net loss） -262,742,928.93 -264,103,692.74
1.Net continuing operating profit -262,742,928.93 -264,103,692.74
2.Termination of operating net profit
V.Net of profit of other comprehensive i
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（ II ）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
67
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income -262,742,928.93 -264,103,692.74
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
9,938,756,230.71 5,146,821,885.37
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
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
68
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tax returned 89,994,925.74 171,066,018.68
Other cash received from business
730,551,299.36 203,747,413.68
operation
Sub-total of cash inflow 10,759,302,455.81 5,521,635,317.73
Cash paid for purchasing of
8,162,424,567.65 5,213,805,385.34
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 608,921,172.96 277,912,435.10
Taxes paid 568,158,273.01 544,190,992.27
Other cash paid for business activities 1,336,181,154.53 850,676,318.80
Sub-total of cash outflow from business 6,886,585,131.51
10,675,685,168.15
activities
Cash flow generated by business -1,364,949,813.78
83,617,287.66
operation, net
II.Cash flow generated by investing
Cash received from investment 1,251,030,000.00 5,399,999,000.00
retrieving
Cash received as investment gains 13,923,452.07 22,183,417.04
Net cash retrieved from disposal of 1,339,040.00
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of 393,727,652.59
subsidiaries or other operational units
Other investment-related cash received 200,000,000.00 190,962.49
Sub-total of cash inflow due to 1,860,020,144.66 5,422,373,379.53
investment activities
Cash paid for construction of 2,686,335,621.99 1,082,436,888.19
fixed assets, intangible assets
and other long-term assets
Cash paid as investment 408,243,324.50 5,375,599,000.00
Net increase of loan against pledge
69
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Net cash received from subsidiaries and 107,762,094.14 2,886,994.56
other operational units
Other cash paid for investment 50,000,000.00
318,237,076.99
activities
Sub-total of cash outflow due to 6,510,922,882.75
3,520,578,117.62
investment activities
Net cash flow generated by investment -1,660,557,972.96 -1,088,549,503.22
III.Cash flow generated by financing
Cash received as investment 4,169,500.00 185,130,000.00
Incl: Cash received as investment from 4,169,500.00 185,130,000.00
minor shareholders
Cash received as loans 3,146,840,211.91 3,307,676,666.66
Cash received from bond placing
Other financing –related ash received 565,785,278.10 461,896,848.85
Sub-total of cash inflow from financing
3,716,794,990.01 3,954,703,515.51
activities
Cash to repay debts 4,528,169,601.04 3,299,247,331.44
Cash paid as dividend, profit, or 640,756,867.95 785,097,280.87
interests
Incl: Dividend and profit paid by 30,000,000.00
subsidiaries to minor shareholders
Other cash paid for financing activities 640,002,625.89 499,724,825.13
Sub-total of cash outflow due to 4,584,069,437.44
5,808,929,094.88
financing activities
Net cash flow generated by financing -2,092,134,104.87 -629,365,921.93
IV. Influence of exchange rate -2,652,600.61 8,711,680.32
alternation on cash and cash equivalents
V.Net increase of cash and cash -3,671,727,390.78 -3,074,153,558.61
equivalents
Add: balance of cash and cash 25,114,660,756.25 25,537,802,101.80
equivalents at the beginning of term
VI ..Balance of cash and cash 21,442,933,365.47 22,463,648,543.19
equivalents at the end of term
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
70
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
I.Cash flows from operating activities
Cash received from sales of goods or
63,990,000.00 51,105,726.47
rending of services
Tax returned 13,719.30
Other cash received from business
330,847,011.69 4,513,958,096.78
operation
Sub-total of cash inflow 394,850,730.99 4,565,063,823.25
Cash paid for purchasing of
33,858,206.35 172,870,594.52
merchandise and services
Cash paid to staffs or paid for staffs 16,144,890.38 5,039,091.78
Taxes paid 3,755,213.45 8,445,826.76
Other cash paid for business activities 217,407,719.04 7,197,399,250.81
Sub-total of cash outflow from business
271,166,029.22 7,383,754,763.87
activities
Cash flow generated by business
123,684,701.77 -2,818,690,940.62
operation, net
II.Cash flow generated by investing
Cash received from investment
1,770,000,000.00 5,399,999,000.00
retrieving
Cash received as investment gains 678,923,452.07 592,183,417.04
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
2,448,923,452.07 5,992,182,417.04
investment activities
Cash paid for construction of
fixed assets, intangible assets
and other long-term assets
Cash paid as investment 2,617,565,500.00 9,117,899,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
12,759,192,480.99 170,000,000.00
activities
Sub-total of cash outflow due to 15,376,757,980.99 9,287,899,000.00
71
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
investment activities
Net cash flow generated by investment -12,927,834,528.92 -3,295,716,582.96
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 580,000,000.00 2,016,666,666.66
Cash received from bond placing
Other financing –related ash received 10,804,871,140.21 108,271,893.76
Sub-total of cash inflow from
11,384,871,140.21 2,124,938,560.42
financing activities
Cash to repay debts 2,276,373,966.68 1,576,266,666.68
Cash paid as dividend, profit, or
348,534,414.26 552,539,171.23
interests
Other cash paid for financing activities 28,679,113.18
Sub-total of cash outflow due to
2,624,908,380.94 2,157,484,951.09
financing activities
Net cash flow generated by financing 8,759,962,759.27 -32,546,390.67
IV. Influence of exchange rate
433,490.32
alternation on cash and cash equivalents
V.Net increase of cash and cash
-4,044,187,067.88 -6,146,520,423.93
equivalents
Add: balance of cash and cash
11,224,359,236.39 16,951,756,537.76
equivalents at the beginning of term
VI ..Balance of cash and cash
7,180,172,168.51 10,805,236,113.83
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrument Other Commo Total of
Items shareho
Share Less: Speciali
Capital Compre Surplus n risk Retaine owners’
Capita prefer Shares zed lders’
Sustai reserves hensive reserves provisio d profits equity
l red Other in stock reserve equity
nable Income n
stock
debt
72
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
5,730, 21,987, 3,010,3 1,219,0 32,168,
I.Balance at the 4,422,3 -4,518.4 1,983,9 224,133
250,11 405,220 72,296. 31,326. 749,868
end of last year 20.00 5 21.21 ,824.86
8.00 .42 37 49 .90
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 5,730, 21,987, 3,010,3 1,219,0 32,168,
4,422,3 -4,518.4 1,983,9 224,133
beginning of 250,11 405,220 72,296. 31,326. 749,868
20.00 5 21.21 ,824.86
current year 8.00 .42 37 49 .90
-193,67 -444,51 -181,00
III.Changed in the 7,752.3 6,552.4 457,178
7,513.8 7,148.1 1,776.4
current year 8 6 ,580.81
8 7 0
（1）Total
7,752.3 858,296 35,764, 894,068
comprehensive
8 ,089.08 640.16 ,481.62
income
（II）Investment
-270,36 4,169,5 3,899,1
or decreasing of
4.11 00.00 35.89
capital by owners
1．Ordinary Share
4,169,5 4,169,5
s invested by share
00.00 00.00
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
-270,36 -270,36
4．Other
4.11 4.11
-401,11 -401,11
（III）Profit
7,508.2 7,508.2
allotment
7 7
1.Providing of
73
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the -401,11 -401,11
owners (or 7,508.2 7,508.2
shareholders) 7 7
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special 6,552.4 6,552.4
reserves 6 6
1. Provided this 6,552.4 6,552.4
year 6 6
2．Used this term
-193,40 -484,45 -677,85
（VI）Other 7,149.7 1,288.3 8,438.1
7 3 0
5,730, 21,793, 3,467,5 31,987,
IV. Balance at the 4,422,3 3,233.9 1,990,4 224,133 774,514
250,11 727,706 50,877. 748,092
end of this term 20.00 3 73.67 ,824.86 ,178.32
8.00 .54 18 .50
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company Total
Minor
Items
Share Other Equity Capital Less: Other Speciali Surplus Commo Retaine shareho of
Capita instrument reserves Shares Compre zed reserves n risk d profits lders’ owner
74
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
l in stock hensive reserve provisio equity s’
prefer
Sustai Income n equity
red Other
nable
stock
debt
4,939, 16, 1,823,6 1,093,0 24,379,
I.Balance at the 4,422,3 188,044
928,98 338,960 95,278. 61,728. 268,550
end of last year 20.00 ,070.48
3.00 ,810.89 31 31 .99
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities -157,61
195,000 89,140, 126,528
under common 2,768.1
,000.00 997.13 ,229.03
control 0
Other
II.Balance at the 4,939, 16,533, 1,666,0 1,182,2 24,505,
4,422,3 188,044
beginning of 928,98 960,810 82,510. 02,725. 796,780
20.00 ,070.48
current year 3.00 .89 21 44 .02
790,32 5,453,4 1,344,2 7,662,9
III.Changed in the -4,518.4 1,983,9 36,089, 36,828,
1,135. 44,409. 89,786. 53,088.
current year 5 21.21 754.38 601.05
00 53 16 88
（1）Total 1,733,2 1,923,8
-4,518.4 190,638
comprehensive 01,682. 36,083.
5 ,919.68
income 30 53
（II）Investment 790,32 6,690,3 7,863,5
382,886
or decreasing of 1,135. 26,329. 33,506.
,041.50
capital by owners 00 82 32
1．Ordinary Share 790,32 6,728,5 7,901,7
382,886
s invested by share 1,135. 22,710. 29,887.
,041.50
holders 00 65 15
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
-38,196, -38,196,
4．Other
380.83 380.83
(IV) Internal 36,089, -388,91 -35,000 -387,82
75
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
transferring of 754.38 1,896.1 ,000.00 2,141.7
owners’ equity 4 6
1. Capitalizing of
36,089, -36,089,
capital reserves (or
754.38 754.38
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up -352,82 -387,82
-35,000
losses by surplus 2,141.7 2,141.7
,000.00
reserves. 6 6
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
end of this term
(V) Special 1,983,9 1,906,1 3,890,0
reserves 21.21 20.38 41.59
1. Provided this 38,971, 1,906,1 40,877,
year 707.64 20.38 828.02
-36,987, -36,987,
2．Used this term
786.43 786.43
-1,236,8 -503,60 -1,740,4
（VI）Other 81,920. 2,480.5 84,400.
29 1 80
5,730, 21,987, 3,010,3 1,219,0 32,168,
IV. Balance at the 4,422,3 -4,518.4 1,983,9 224,133
250,11 405,220 72,296. 31,326. 749,868
end of this term 20.00 5 21.21 ,824.86
8.00 .42 37 49 .90
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Items Amount in this period
76
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Other Equity instrument
Other
Less: Common Total of
Share Capital Compreh Surplus Retaine
preferre Sustain Shares in risk owners’
Capital Other reserves ensive reserves d profits
d stock able stock provision equity
Income
debt
I.Balance at the 5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
end of last year 0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
beginning of
0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
current year
-663,86
III.Changed in the -27,531,9 -691,392,
0,437.2
current year 23.63 360.83
0
（I）Total -262,74
-262,742,
comprehensive 2,928.9
928.93
income 3
(II) Investment or
-27,531,9 -27,531,9
decreasing of
23.63 23.63
capital by owners
1．Ordinary Share
-27,531,9 -27,531,9
s invested by share
23.63 23.63
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
-401,11
（III）Profit -401,117,
7,508.2
allotment 508.27
7
1.Providing of
77
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
surplus reserves
2．Allotment to the -401,11
-401,117,
owners (or 7,508.2
508.27
shareholders) 7
3．Other
(IV)Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 5,730,25 21,833,67 4,422,320 205,144,6 12,150, 27,776,79
end of this term 0,118.00 5,749.27 .00 00.53 546.39 8,694.19
Amount in last year
In RMB
Amount in last year
Other Equity instrument
Other
Less: Common Total of
Items Share Capital Compreh Surplus Retaine
preferre Sustain Shares in risk owners’
Capital Other reserves ensive reserves d profits
d stock able stock provision equity
Income
debt
I.Balance at the 4,939,92 15,130,19 4,422,320 169,054,8 696,998 20,931,75
end of last year 8,983.00 1,736.27 .00 46.15 ,223.03 1,468.45
Add: Change of
78
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
4,939,92 15,130,19 4,422,320 169,054,8 696,998 20,931,75
beginning of
8,983.00 1,736.27 .00 46.15 ,223.03 1,468.45
current year
III.Changed in the 790,321, 6,731,015 36,089,75 -20,987, 7,536,439
current year 135.00 ,936.63 4.38 239.44 ,586.57
（I）Total
360,897 360,897,5
comprehensive
,543.75 43.75
income
(II) Investment or
790,321, 6,731,015 7,521,337
decreasing of
135.00 ,936.63 ,071.63
capital by owners
1．Ordinary Share
790,321, 6,728,522 7,518,843
s invested by share
135.00 ,710.65 ,845.65
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
2,493,225 2,493,225
4．Other
.98 .98
-381,88
（III）Profit 36,089,75 -345,795,
4,783.1
allotment 4.38 028.81
9
1.Providing of 36,089,75 -36,089,
surplus reserves 4.38 754.38
2．Allotment to the -345,79
-345,795,
owners (or 5,028.8
028.81
shareholders) 1
3．Other
(IV)Internal
transferring of
owners’ equity
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the 5,730,25 21,861,20 4,422,320 205,144,6 676,010 28,468,19
end of this term 0,118.00 7,672.90 .00 00.53 ,983.59 1,055.02
III. Brief introduction of the Company
Approved by Hebei Economic System Reform Commission with the Approval of Establishment of Tunghsu
Optoelectronic Technology Co., Ltd.（Hereinafter referred to as “The Company” or “Tunghsu Optoelectronic”）(Ji
Ti Gfai Wei Gu Zi(1992) No.5 Document) in 1992, Shijiazhuang Baoshi Electronic Glass Co., Ltd. is a joint stock
limited company jointly established by Shijiazhuang Kinescope General Factory (transformed into Shijiazhuang
Baoshi Electronics Group Co., Ltd.later), China Electronic Import and export Corporation and Zonghua Hebei
Import and Export Company. At the Time of establishment, the Company had 25.68 million shares (the par value
of each share is RMB 10) and total share capital of RMB 256.80 million.
On July 17, 1993, the Company held a provisional shareholders' general meeting and decided to split the stock
equity with par value of RMB 10 per share into stock equity with par value of RMB 1 per share. As a result, the total
number of the Company's shares became 256.80 million and its total share capital became RMB 256.80 million.
Approved by Securities Commission under State Council with the Approval of Issue of 100 Million Domestically
Listed Foreign Investment Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zheng Wei Fa (1996) No. 15
Document) on June 11, 1996, the Company issued 100 million domestically listed foreign investment shares (B
shares) (the par value of each share is RMB 1). Approved by China Securities Regulatory Commission with the
Approval of the Application of Shijiazhuang Baoshi Electronic Glass Co., Ltd. to Publicly Issue Shares (Zheng
Jian Fa Zi (1996) No. 174 Document) on August 30 of the same year, the Company publicly issued 26.20 million
shares (the par value of each share is RMB 1). As of September 17, 1996, the total share capital of the Company
increased to RMB 383 million.
According to the Approval of Private Issue of Shares by Shijiazhuang Baoshi Electronic Glass Co., Ltd. (Zhen Jian
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Xu Ke (2012) No. 1661 Document) issued by China Securities Regulatory Commission ("CSRC"), the Company
privately issued 520 million RMB ordinary shares (A shares) to specific investors at the price of RMB 9.69 per share
on April 3, 2013. All investors subscribed for shares in cash. After this private issue, the registered capital of the
Company was changed to RMB 903.00 million.
The controlling shareholder of the company by the Shijiazhuang Baoshi Electronic Group Co., Ltd. changed to Tu
nghsu Group , a direct stake of 14.40%, Shijiazhuang Baoshi Electronic Glass Co., Ltd. held the indirectly 12.27%
of the share.
The 6th Provisional shareholder meeting in 2013 approved the name change of Shijiazhuang Baoshi Electronic G
lass Co., Ltd. to Tunghsu Optoelectronic Technology Co., Ltd..
According to the resolution of annual shareholder meeting in 2013 and the provisions of amendments to articles of
association approved on April 27, 2014, the company has transferred 20 shares for each 10 shares to all shareholders,
and with total shares of 1806 million transferred on the basis of the general capital of 903 million on December 31,
2013. Thus, the registered capital of RMB1806 million applied to add by the company should be transferred into the
share capital by the capital reserve with the reference date on May 27, 2014, and the registered capital is RMB2709
million after changed.
As per the provisions of “Restricted Stock Incentive Plan of Tunghsu Optoelectronic Technology Co., Ltd. (Draft)” and
its summary proposal approved after the second temporary shareholders’ resolution in 2014, the company has
implemented the stock option incentive to grant 41 people the restricted stocks of RMB3,080,000.00 with the price of
RMB3.88 per share, which are all in cash subscription. Thus, the company shall increase the share capital of RMB3.08
million and the capital reserve of RMB 8,870,400.00, and the share capital is RMB2,712,080,000.00 after changed.
Under the provisions of “Proposal on Repurchase of Part of Domestic Listed Foreign Shares (Share B)” approved after
the second temporary shareholders’ resolution in 2014, the company has repurchased 49,999,999.00 B shares released
outside, and the repurchased shares shall be written off and the registered capital is reduced correspondingly. Thus, the
company shall decrease the share capital of RMB49,999,999.00 and the capital reserve of RMB218,024,376.60, and
the share capital is RMB2,662,080,001.00 after changed.
Referring to the resolutions determined on the 27th Meeting of the 7th Board of Directors of the company, the 31st
Meeting of the 7th Board of Directors, the 1st General Meeting of Extraordinary Shareholders in 2015, the 38th
Meeting of the 7th Board of Directors and the Regulatory Approval No. [2015] 2270 by China Securities
Regulatory Commission: Replies on Approval of Private Issuing of Stocks by Tunghsu Photoelectric
Technology Co., Ltd., it is approved that the company issues new shares less than 1,186,943,620 privately. The
planned number of privately issued stocks is less than (including) 1,186,943,620. The actual issuance number of
the stock is 1,173,020,525, and the modified equity capital is 3,835,100,526.00 yuan.
According to Proposals on the Repurchase and Cancellation of Partial Restricted Shares deliberated and approved
on the 43rd Meeting of the 7th Board of Directors of the company convened on October 29, 2015, the company
plans to repurchase and cancel restricted shares. The granted but unlocked restricted shares held by left equity
incentive objects sum to 100,000 at the repurchase price of 3.78 yuan/share. Other forms of lease besides financial
leasing are considered as operating leasing
According to ZJXK [2016] No. 1322 document On the Approval of Non-public Stock to Tunghsu
Optoelectronic Technology Co. Ltd permitted by China Securities Regulatory Commission and also was resolved
in the 7th board of the forty-eight meeting and the first extraordinary shareholders' general meeting，it is approved
that the company issues new shares less than 1,104,928,457.00 privately. The planned number of privately issued
stocks is less than (including) 1,104,928,457.00. The actual issuance number of the stock is 1,104,928,457.00, and
the modified equity capital is 4,939,928,983.00 yuan.
According to the company's eleventh meeting of the eighth Board of Directors held on March 20, 2017, the
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
eighteenth meeting of the eighth Board of Directors held on June 9, 2017, the fourth temporary shareholders’
general meeting of 2017 held on June 26, 2017 and the Approval on Tunghsu Optoelectronic Technology Co.,
Ltd’s Share Issuance to Objects Including Shanghai Huimao Enterprise Management Co., Ltd for Asset
Purchase and Raising Matching Funds by CSRC (Zhen Jian Xu Ke [2017] No. 1841 Doc), approved that the
company shall issue 262,626,262 shares to Shanghai Huimao Enterprise Management Co., Ltd (hereinafter
referred to as "Shanghai Huimao"), 106,326,446 shares to Tunghsu Group Co., Ltd (hereinafter referred to as
"Tunghsu Group"), 11,380,165 shares to Mianyang Science and Technology City Development Investment
(Group) Co., Ltd (hereinafter referred to as "Mianyang Science and Technology Group") and 5,020,661 shares to
Sichuan Changhong Electric Appliance Co., Ltd (hereinafter referred to as "Sichuan Changhong") for purchasing
the underlying assets; and approved that the Company shall raise no more than RMB 3,750,000,000 of matching
funds by the company’s non-public share issuance. The Company actually issued 385,353,534.00 shares for
purchasing the assets, The issue price per share is 9.90 yuan; and issued 404,967,601.00 shares for raising the
matching funds, The issue price per share is 9.26 yuan;thus the capital stock after the change became RMB
5,730,250,118.00.
As of June 30, 2018, Registered capital : RMB 5,730,250,118.00, Legal representative: Wang Lipeng,
Enterprise unified social credit code: 911301001043959836, Registered Address: No.9, Huanghe Road,
Shijiazhuang High-tech Industrial Development Area, Shijiazhuang, Hebei Province.
Tunghsu Optoelectronic Parent Company is the Tunghsu Group，Uitimate controller is Li Zhaoting.
Financial statements and notes to the financial statements approved at the 46th meeting of the 8th Board of
Directors on August 30, 2018.
The company's business scope: investing in the project investments with its own funds; research and
development of machinery equipment and electronic products; manufacturing and production-process
development of various non-standard equipments and components; processing and sales of electronic products for
grinding machine (excluding public safety equipment and devices); self operated and agent import and export
business of various commodities and technologies; computer system integration, software development, technical
consulting; installation of electrical and mechanical equipment (not including pre-licensing ones), engineering
advice. (All of the above scope, excluded those prohibited or restricted by laws, regulations and State Council
decisions; matters needing approval by other departments can be operated after the approval).
In the reporting period, 19 subsidiaries and 86 sub-subsidiaries were included in the consolidation scope by
the company, see details at Note 9 “Rights and Interests in Other Subjects ”. The consolidation scope of the
company increased by 24 ,decreased by 2 and a net increased by 22 companies year on year at this reporting
period, see details at Note 8“Change of
IV.Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
The financial statements of the company are prepared based on the going-concern assumption and the actual
transactions and items,，the Company prepared financial statements in accordance with the ASBE-Basic Standard
and revised thereafter, Application Guidance of Accounting Standard for Business Enterprises, Interpretation of
Accounting Standards for Business Enterprises and other regulations(hereinafter referred to as “the Accounting
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Standards for Business Enterprises”, “China Accounting Standards” or “CAS”)，Rules for Preparation Convention
of Disclosure of Public Offering Companies No.15 – General Regulations for Financial Reporting (revised in
2014) by China Securities Regulatory Commission.
In accordance with Accounting Standards for Business Enterprises, the Company has adopted the accrual basis of
accounting. Except for certain financial instruments, the Company adopts the historical cost as the principle of
measurement in the financial statements. The valuation will be made according to the lower one between the
amount of on-sales non-current assets after fair value deducts the predicted costs and the original book value
which conforms to the condition of being on-sales. When assets are impaired, provisions for asset impairment are
made in accordance with relevant requirements.
2. Ongoing-operation
The company has the capacity to continually operate within 12 months at least since the end of report period,
and hasn’t the major issues impacting on the sustainable operation ability.
V. The company's major accounting policies, accounting estimates and prior errors
Important prompt:
Nil
1.Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system, and have truly and completely reflected of the financial status in June
30,2018 , operational results, cash flow, and other relevant information of January –June 2018.
2.Accounting year:
The Group’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year..from
January 1 to December 31 as one accounting year.
3. The operating cycle
The normal business cycle refers to the period starting from assets purchased for processing to cash or cash
equivalents converted. The Company uses a 12-month operating cycle as liquidity classification criteria for its
assets and liabilities.
4. Currency for bookkeeping：
The Company takes RMB as the standard currency for bookkeeping.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
5. Accounting treatments for a business combinations under common control and under non common control
The term "business combination" refers to a transaction or event combining two or more separate enterprises into
one reporting entity. Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
(1) A business combination involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination,
and that control is not transitory. For the business combination involving enterprises under common control, the
party obtaining the control right over other enterprises involved in the combination on the combination date is the
combining party, while other enterprises involved in the combination is the combined party. The combination date
is the date on which one combining enterprise obtains control of other combining enterprises.
Assets and liabilities obtained are measured at their respective carrying amounts as recorded by the combining
entities at the date of the combination. The difference between the carrying amount of the net assets obtained and
the carrying amount of the consideration paid for the combination [the aggregate face value of shares issued as
consideration] is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb
the difference, any excess is adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are
incurred.
（2）A business combination not involving enterprises under common control
A business combination not involving enterprises under common control is a business combination in which all of
the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination. For the business combination not involving enterprises under common control, the party obtaining
the control right over other enterprises involved in the combination on the combination date is the combining
party, while other enterprises involved in the combination is the combined party. The combination date is the date
on which one combining enterprise obtains control of other combining enterprises.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities
incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree, the
intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy
services and other associated administrative expense attributable to the business combination are charged to profit
or loss when they are incurred. The costs of issuing equity or debt securities as a part of the consideration for the
acquisition are included in the carrying amounts of these equity or debt securities upon initial recognition. The
contingent costs as a part of the consideration for the acquisition are included in the cost of combination on fair
values at the acquisition date, and will be adjusted if any new situation incurred or further evidence provided in 12
months subsequent to acquisition date, then the goodwill will be adjusted accordingly. The acquiree’s identifiable
assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet the
recognition criteria are measured at fair value at the acquisition date. Where the cost of combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is treated as an asset and
recognised as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the
acquiree’s identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If
after that reassessment, the cost of combination is still less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for
the current period.
The deductible temporary difference from the acquiree not recognized as deferred tax assets on the acquisition
date, will be recognized as deferred tax assets, if in 12 months subsequent to acquisition date, there is new
information indicating that relative situation exists and the economic benefit associated with the deductible
temporary difference will flow to the Company, the goodwill will be reduced accordingly. If the goodwill is less
than the deductible temporary difference, the difference will be charged into profit or loss in current period.
For a business combination involving enterprise not under common control and achieved in stages, it should make
judgement on whether those transactions are regard as “Package deal” based on “No. 5 Notice on Explanation on
Accounting Standards for Business Enterprises by the Ministry of Finance" (CAIKUAI [2012] No.19) and Article
51 of "Accounting Standards for Business Enterprises No. 33: Consolidated Financial Statement". If it is regarded
as “package deal”, the accounting treatment refers to above-mentioned principle and “Long-term equity
investment” in Note III, 14; If it is not regarded as “package deal”, the accounting treatment should be different
for individual and consolidated financial statements.
In individual financial statement, the initial investment cost is the sum of the book value of equity investment held
before the acquisition date and the cost of new investment on acquisition date. When the stock equity held before
the acquisition date involving other consolidated incomes, at the disposal date, other consolidated incomes related
to this investment shall be subjected to accounting treatment (i.e. except the corresponding share accounted by
equity method in the change due to remeasurement and setting of net indebtedness or net assets of benefit plan,
the remaining shall be transferred to the current investment income) on the same basis as that adopted by the
acquiree for the direct disposal of relevant assets or liabilities.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
In consolidated financial statement, the share equity held before the acquisition date shall be measured again
according to the fair value of this share equity on the acquisition date, the balance of the fair value and its book
value shall be counted in the current investment income; when the share equity held before the acquisition date
involving other consolidated incomes, other consolidated incomes related shall be subjected to accounting
treatment (i.e. except the corresponding share accounted by equity method in the change due to remeasurement
and setting of net indebtedness or net assets of benefit plan, the remaining shall be transferred to the current
investment income of the acquisition date) on the same basis as that adopted by the acquiree for the direct disposal
of relevant assets or liabilities.
6. Preparation on consolidation financial statements
(1) Preparation on consolidation financial statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. Meanwhile, for the subsidiaries increased
through the business combination under non-common control, the business performance and the cash flow after
the acquisition date have been properly included in the consolidated profit statement and the consolidated cash
flow statement, and the opening balance and the comparison balance of the consolidated financial statement shall
not be adjusted. For the subsidiaries increased through the business combination under common control, the
business performance and the cash flow from the beginning of current combination period to the combination date
have been properly included in the consolidated profit statement and the consolidated cash flow statement, and the
comparison balance of the consolidated financial statement shall be adjusted simultaneously.
When preparing the consolidated financial statement, the necessary adjustment shall be made according to the
accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control, the financial statement shall
be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of
the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
shall be respectively as the minority equity and the minority interest income and individually listed under the
shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion from
the net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons,
the remaining equity should be measured again according to the fair value on the control lost date. The difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are
transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or
the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes III, 14
“Long-term Equity Investment” or Notes III, 10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at least.
④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment
in Subsidiary without Control Lost” (please refer to 14, (2) ④ in Notes III,) and “The Control on Original
Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right
lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
7. Accounting treatment for classification and co-operation of joint arrangement
Joint arrangement is an arrangement whereby two or more parties have joint control. The Company classified the
joint arrangement into co-operation arrangement and joint venture according to the right and obligation involving
in the joint arrangement. Under co-operation, the Company has joint control and rights to the relevant assets and
liability of the arrangement. Under joint venture, the Company only has joint control and rights to the net assets of
the arrangement.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies
stated in "Long-term Stock Ownership for Equity Method Calculation" in Note III 14 (2).
Under co-operation, the Company recognizes 1) its solely held of assets and liability, 2) assets and liabilities
jointly owned based on share proportions, 3) revenue from sales of assets jointly owned by the Company, 4)
revenue from sales of assets based on share proportions, 5) expense incurred by the Company, 6) expense incurred
based on share proportions.
When the Company invests, sells or purchase assets (the asset does not constitute a business, the same below), to
or from the co-operation, the Company only recognizes the profit or loss belong to other joint parties before
selling those assets to third party. If those assets are impaired in compliance with Accounting Standards for
Business Enterprises No.8-Assets impairment, the Company should recognize loss for all the invested or sold
assets to co-operation. For the assets purchased from co-operation, the Company should recognize loss based on
share proportion.
8. Cash and cash equivalent
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, and
short-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an
insignificant risk of change in value.
9. Conversion method of foreign currency transactions
(1) Conversion method of foreign currency transactions
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying the
foreign currency amount by the spot exchange rate on the transaction dates, while the foreign currency exchange
business or transactions relating to foreign currency exchange are recorded in the functional currency by applying
to the foreign currency amount at the actual exchange rate used.
(2) Conversion method of foreign currency monetary items and foreign currency non-monetary items
Foreign currency monetary items are convered using the spot exchange rate on the balance sheet date. The
exchange gains or losses arising from occurrence of transactions and exchange of currencies are recognized in
profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing
denominated in foreign currency that qualifies for capitalization are capitalized as part of the cost of the qualified
asset during the capitalization period; (2) exchange differences arising from changes in the carrying amounts of
available-for-sale monetary items are recognized as other comprehensive income.
Foreign currency non-monetary items measured at historical cost are converted to the amounts in functional
currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain
unchanged. Foreign currency non-monetary items measured at fair value are re-converted at the spot exchange
rate on the date the fair value is determined. Difference between the re-converted functional currency amount and
the original functional currency amount is treated as changes in fair value (including changes of exchange rate)
and is recognized in profit and loss or as other comprehensive income.
(3) Conversion of financial statements denominated in foreign currencies
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
As an accounting treatment in respect to a foreign operation, if there are monetary items relating to the investment
to foreign operation, the resulting conversion differences are recognized in other comprehensive income as
“conversion reserve”. The conversion differences accumulated in shareholders’ equity with respect to a foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed.
Assets and liabilities of foreign operation are converted to Renminbi at the spot exchange rate on the balance sheet
date. Equity items, excluding retained earnings, are converted to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are converted to Renminbi at the rates that
approximate the spot exchange rates at the transaction dates. The beginning balance of retained earnings is the
prior year ending balance of retained earning converted, while the ending balance of retained earnings is sum total
of converted items of income statement. The resulting conversion differences are recognized in other
comprehensive income. The conversion differences accumulated in shareholders’ equity with respect to a foreign
operation is transferred to profit or loss in the period when the foreign operation is disposed
Cash flow denominated in foreign currency and cash flow of foreign operation are converted to Renminbi at the
spot exchange rate at the transaction date. The effect of foreign exchange fluctuation is treated as recociling item
that is separately disclosed on cash flow statement.
The beginning balance is present as same as converted balance of financial statement in prior year.
The conversion differences accumulated in shareholders’ equity with respect to a foreign operation is transferred
to profit or loss in the period when the foreign operation is fully or partially disposed or lost control over the
foreign operation due to other causes.
Disposing investment in a foreign operation without losing control, the conversion differences accumulated in
shareholder’s equity associated with the disposing part is transferred to minority stockholder’s interest. Disposing
investment in a foreign operation which is joint venture enterprise, the conversion differences accumulated in
shareholder’s equity associated with the disposing part is transferred to profit or loss in the disposing period with
the disposing proportion.
10. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For
financial assets and financial liabilities at fair value through profit or loss, transaction costs are recognized in
profit and loss for the current period. For other financial assets and financial liabilities, transaction costs are
included in their initial recognized amounts.
(1) Fair value of financial assets and financial liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. If an active market exists for specific financial assets or
liabilities, quoted prices in active markets for identical assets or liabilities are used as fair value. Quoted prices in
an active market refers to the prices which are readily available regularly in exchange markets, brokers, industry
associations and other pricing institutions and represents the prices at which the assets or liabilities are traded in
an arm length transaction in the marketplace. If an active market does not exist, the Company uses valuation
model to determine the fair value. Valuation model takes into account quoted price for identical or similar assets
or liabilities between familiar and willing parties, quoted price for similar assets or liabilities in an active market,
discounted cash flow method and options pricing model.
(2) Classification, Recognition and Measurement of Financial Assets
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All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. On
initial recognition, the Company's financial assets are classified into one of the four categories, including financial
assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and
available-for-sale financial assets.
① Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated
upon initial recognition as at fair value through profit or loss.
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A financial asset held for trading is the financial asset that meets one of the following conditions: A the financial
asset is acquired for the purpose of selling it in a short term; B. the financial asset is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the
enterprise recently manages this group for the purpose of short-term profits; C. the financial asset is a derivative,
except for a derivative that is designated as effective hedging instrument, or a financial guarantee contract, or a
derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted
price from an active market) whose fair value cannot be reliably measured.
The financial assets or financial liabilities meeting any of the following requirements can be designated, on initial
recognition, as financial assets or financial liabilities at fair value through profit or loss and of which the variation
is included in the current profits and losses: A. The designation is able to eliminate or obviously reduce the
discrepancies in the recognition or measurement of relevant gains or losses arising from the different basis of
measurement of the financial assets or financial liabilities; B. The official written documents on risk management
or investment strategies of the enterprise concerned have recorded that the combination of said financial assets,
the combination of said financial liabilities, or the combination of said financial assets and financial liabilities will
be managed and evaluated on the basis of their fair values and be reported to the key management personnel.
Financial assets at fair value through profit or loss are subsequently measured at fair value. The gains or
losses related to financial assets at fair value through profit or loss and dividend or interest income related to those
financial assets are recognized in profit or loss for the current period.
②Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that an entity has the positive intention and ability to hold to maturity.
Such kind of financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, impairment or amortization are recognized in profit or loss for the
current period.
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial
liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest
expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly
discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where
appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Company estimates future cash flows considering all contractual
terms of the financial asset or financial liability (without considering future credit losses), and also considers all
fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
③ Loans and Receivables
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Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Financial assets classified as loans and receivables by the Company include notes receivable,
accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or
loss arising from derecognition, impairment or amortization is recognized in profit or loss for the current period.
④ Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition
as available for sale, and financial assets that are not classified as financial assets at fair value through profit or
loss, loans and receivables or held-to-maturity investments.
Cost of available-for-sale investments in debt instruments are measured on the basis of the post-amortization cost
at period end, which is the initially recognized amount of financial asset or financial liability deducting the already
paid principal, plus or minus the accumulated amount of amortization incurred from amortizing the balance
between the initially recognized amount and the amount of the maturity date by adopting the actual interest rate
method and deducting the impairment loss that have actually incurred. Cost of available-for-sale investments in
equity instruments is the initially recognized amount at acquisition.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from
changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except
that impairment losses and exchange differences related to amortized cost of financial assets are recognized in
profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and
recognized in profit or loss. Investments in equity instruments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured and derivative financial assets that are linked to and
must be settled by delivery of such unquoted equity instruments are subsequently measured at cost.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale
financial assets are held, are recognized in investment income.
Impairment of Available-for-sale financial assets
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If all the related information considered indicates that the decline in fair value of available-for-sale financial assets
is significant or non-temporary decline, impairment incurred for available-for-sale financial assets. Significant
decline refers to accumulated decline in fair value exceed 20%; non-temporary decline refers to continuous
decline in fair value more than 12 months.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value
previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The
amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the
acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment
loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective
evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after
the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of
impairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while the
amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in
an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the impairment loss on such financial asset
is not reversed once it is recognized.
(3) Transfer and measurement of financial assets
The Company derecognizes a financial asset only when: ① the contractual rights to the cash flows from the
financial asset expire; or ② it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity; or ③ it transfers the financial asset, neither transfers nor retains
substantially all the risks and rewards of ownership but has not retained control over the financial assets.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset, and retains its control of the financial asset, it recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognized an associated liability. The extent of the enterprise's
continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the
transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1)
the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the
transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in
profit or loss.
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If the transfer of partial financial asset satisfies the derecognition criteria, the entire book value of the transferred
financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition
has not been stopped, be apportioned according to their respective relative fair value and the difference between
the amounts of the following 2 items shall be included into the profit or loss of the current period: (1)The book
value of the portion whose recognition has been stopped; (2)The sum of consideration of the portion whose
recognition has been stopped, and the portion of the accumulative amount of the changes in the fair value
originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped.
In terms of financial assets sold with recourse or financial assets transferred by endorsement, the Company shall
determine whether substantially all the risks and rewards of ownership of the financial asset are transferred.
Where an enterprise has transferred substantially all of the risks and rewards related to the ownership of the
financial asset to the transferee, it shall stop recognizing the financial asset. If it retained substantially all of the
risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the financial asset. If
the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset,
the Company shall determine whether it retains the control of the financial assets and account the financial assets
in accordance with the Standards mentioned above.
(3) Classification and Measurement of Financial Liability
On initial recognition, financial liabilities are classified as either financial liabilities at 'fair value through profit or
loss' (FVTPL) or 'other financial liabilities'. The financial liabilities initially recognized shall be measured at their
fair values. For the financial liabilities at fair value through profit or loss, the transaction expenses thereof shall be
directly recorded into the profit or loss of the current period; for other financial liabilities, the transaction expenses
thereof shall be included into the initially recognized amount.
① Financial liabilities at fair value through profit or loss
The transactional financial liabilities and designated financial liabilities at fair value through profit or loss are
classified under the same criteria as the transactional financial assets and designated financial assets at fair value
through profit or loss.
On subsequent measurement of financial liabilities at fair value through profit or loss, gain or loss arising from
changes in fair value and dividends and interests related to the financial liabilities are recognized in the profit or
loss of the current period.
② Other Financial Liability
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For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument
(without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently
measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method, with gain or loss arising from derecognition or amortization recognized in profit or loss.
(5) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part
of it) is discharged. An agreement between the Company (an existing borrower) and an existing lender to replace
the original financial liability with a new financial liability with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference between the
carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid
(including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
(6) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, financial assets and financial liabilities are offset with the net amounts presented
on the balance sheet. Otherwise, financial assets and financial liabilities are separately presented on the balance
sheet without offsetting.
(7) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments issued (including refinanced), repurchased, sold or cancelled by the
Company are treated as changes in equity. Changes in the fair value of equity instruments are not recognized.
Transaction costs related to equity transactions are deducted from equity.
Distributions to holders of equity instruments by the Company (excluding dividends) reduce shareholders’ equity.
The Company does not recognize changes in fair value of equity instruments.
11. Account receivable
The receivables include accounts receivable and others, etc.
（1） Provision for bad debts of account receivable that are individually significant
The judgment basis for significant single-item amount or The accounts receivable with single-item amount of RMB 5
standard for significant amount million and above
The method of separate provision for bad debts of the accounts Impairment test shall be separately conducted. If the test proves
receivable with significant single-item amount the occurrence of impairment, impairment loss shall be
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determined and provision for bad debts shall be made according
to the difference between the present value of its future cash flow
and its book value. For the accounts receivable whose
impairment is not proved by separate test, such accounts
receivable, together with those with insignificant single-item
amount, are divided into some groups based on similar
characteristics of credit risks. For these groups of accounts
receivable, provision for bad debts shall be made according to
the regulation mentioned in "(2) provision for bad debts shall be
made for accounts receivable on group basis".
(2)The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
Other Group Other method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
During the credit period 0.00% 0.00%
The credit period within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 70.00% 70.00%
Over 5 years 100.00% 100.00%
In Group, adopting balance percentage method for bad debt provision：
□ Applicable √ Not applicable
In Group ,adopting other method for bad debt provision：
√ Applicable □ Not applicable
Name Account receivable proportion Other account receivable proportion
Related party group 0.00% 0.00%
Security deposit 0.00% 0.00%
Deposit 0.00% 0.00%
Petty cash 0.00% 0.00%
(3) Accounts receivable that are individually insignificant but with bad debt provision provided on an
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individual basis
The accounts receivable with single-item amount of less than
Reason for separate provision for bad debts RMB 5 million whose risk characteristics can’t be reflected by
provision for bad debts on basis of group.
Provision for bad debts is made according to the difference
Method of provision for bad debts between the present value of its future cash flow and its book
value.
12. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of Inventories
This enterprise's inventories is classified as raw materials, works in process, finished products, circulation
materials, low-value consumption goods, packing materials, supplies purchasing, engineering construction,
development cost,etc.
(2) Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be
measured by their actual cost when they are obtained. Raw materials, works in process, finished products, etc.
shall be measured with the weighted average method when they are being sent out. Low-value consumption goods
shall be written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials
shall be recorded into cost according to the predicted usage times.
(3) Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall
make the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
(4) Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
13.Asset-held for sale
The Company will retrieve its book value by means of selling assets (including the exchange of commercial
non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meeting
two of the following conditions, the book value will be divided into on-sales category: (1) When a certain
non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with
the convention , assets can be sold immediately under the current situation.
(2)The Company has made decision for the selling plans and has acquired assured purchase commitment,
predicting that selling will be completed within one year.( The selling, which can only be sold after acquiring
approval from relevant authorities or supervision departments according to relevant provision requirement , has
acquired its approval ).
The Company will be specifically for dividing the non-current assets or disposal group which are acquired from
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reselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated condition
that the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or
remeasured and divided into on-sales category on balance sheet date, if its book value is higher than the net
amount after fair value deducts selling expense, the book value will be written down to the net amount after fair
value deducts selling expense, and the written-down amount will be confirmed as assets impairment losses and
counted into the current profits and losses, and the impairment provision with on-sales assets will be withdrawn
in the meanwhile. For the on-sales disposal group’s confirmed amount of loss of asset impairment, the book value
of goodwill will be deducted first, and its book value will then be deducted proportionally according to the book
value’s percentages of all non-current assets in the disposal group which can be adopted by the measurement
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, Disposal
Groups and Operation Termination
If any increment occurs in the net amount after the on-sales non-current assets on the subsequent balance
sheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred back
within the amount of asset impairment losses confirmed after being divided into on-sales category, and the amount
transferred back will be counted into the current profits and losses. There will be no restitution for asset
impairment losses confirmed before being divided into on-sales category. The amount deducted previously of
on-sales disposal group shall be recovered, and when after being divided into on-sales category, it will be
transferred back within the amount of impairment confirmed by non-current assets by the means of the measure
stipulations of Accounting Standards for Business Enterprises NO.42- On-sales Non-current Assets, Disposal
Groups and Operation Termination, and the amount transferred back will be counted into the current profits and
losses. There will be no restitution for the book value of goodwill which has been deducted and for asset
impairment losses confirmed before being divided into on-sales category which can be adopted by the measure
stipulation of this principle.
No depreciation and amortization will be made in the non-current assets which are on sales or in the disposal
group. Confirmation will continue to be made in the debt interest in on-sales disposal group as well as other
expenses.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-sales
category, the Company will not continue to divide it into on-sales category or remove the non-current assets from
the on-sales disposal group, and the valuation will be made according to the lower one between two of followings:
(1)Book value before being divided into on-sales category, and the amount of money after being under the
situation where book value is supposed not to be divided into on-sales category and adjustment is made in
depreciation, amortization or impairment which should have been confirmed. （2）Recoverable amount.
When derecognizing the on-sales non-current assets or disposal group, the Company will count the gains and
losses which are yet to be confirmed into the current profits and losses.
14.Long-term Equity Investment
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Long-term equity investments refer to all investments that are the Company with control of, joint control of, or
significant influence over, an investee. The Company accounted investments that are the Company without
control of, joint control of, or significant influence over, an investee as financial assets available-for-sale or
financial assets at fair value through profit or loss. Please refer to Note III 10 “Financial instruments” for detail.
Joint control refers to the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant
influence refers to the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies.
(1) Initial measurement
For business combination under common control, if the consideration of the merging enterprise is that it makes
payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of combination, regard the share of
the book value of the stockholder's equity of the merged enterprise as the initial cost of the long-term equity
investment. The difference between the initial cost of the long-term equity investment and the payment in cash,
non-cash assets transferred as well as the book value of the debts borne by the merging party shall offset against
the capital reserve. If the capital reserve is in sufficient to dilute, the retained earnings shall be adjusted. If the
consideration of the merging enterprise is that it issues equity securities, it shall, on the date of combination,
regard the share of the book value of the stockholder's equity of the merged enterprise as the initial cost of the
long-term equity investment. The total face value of the stocks issued shall be regarded as the capital stock, while
the difference between the initial cost of the long-term equity investment and total face value of the shares issued
shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be
adjusted. Business combination under common control achieved in stages by several transactions shall determine
whether the transactions belong to one package. If the transactions belong to one package, the Company
accounted these transactions as one transaction with control of the investee. If the transactions do not belong to
one package, on the date of combination, the Company shall regard the share of the book value of the owner's
equity of the merged enterprise as the initial cost of the long-term equity investment. The difference between the
initial cost of the long-term equity investment and the sum of book value of long-term equity investments prior to
the combination and the book value of consideration paid at the date of combination in order to achieve control of
the investees shall offset against the capital reserve. If the capital reserve is in sufficient to dilute, the retained
earnings shall be adjusted. No accounting treatment will be made for the other comprehensive income arising
from equity investment under equity method before the combination date or recognized with available-for-sale
financial assets.
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For business combination under different control, the Company accounts initial cost of long-term equity
investment as combination costs on the acquisition date. Combination costs refer to the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
acquirer. Business combination under different control achieved in stages by several transactions, shall determine
whether the transactions belong to one package. If the transactions belong to one package, the Company accounts
these transactions as one transaction with control of, joint control of, significant influence over, the investee. If the
transactions do not belong to one package, the initial cost of long-term equity shall be accounted under cost
method and recognized amount shall be the sum of book value of long-term equity investment before acquisition
and cost of additional investment. For equity investments previously accounted under equity method, other
comprehensive income related to these investments does not change. For equity investments previously accounted
as financial assets available for sale, difference between fair value and book value and accumulated changes in
fair value originally recorded in other comprehensive income shall be transferred to profit or loss of current
period.
The direct cost for the business combination of the combining party shall, including the expenses for audit,
assessment and legal services, be recorded into the profits and losses at the current period.
Besides the long-term equity investments formed by business combination, the initial cost of a long-term equity
investment obtained by other means shall be initially recognized at cost.The cost shall be ascertained in
accordance with the provisions as follows: (a) The initial cost of a long-term equity investment obtained by
making payment in cash shall be the purchase cost which is actually paid; (b) The initial cost of a long-term equity
investment obtained on the basis of issuing equity securities shall be the fair value of the equity securities issued;
(c) The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement; (d) The initial cost of a long-term investment obtained by the exchange of non-monetary
assets shall be the fair value or book value of transferred assets. (e) The initial cost of a long-term investment shall
be the fair value of the long-term investment; etc. The initial cost also consists of the expenses directly relevant to
the obtainment of the long term equity investment, taxes and other necessary expenses. Long-term equity
investment which, due to additional investment, can exercise significant influence over, joint control of, but not
control of, the investees, shall recognize its cost as the sum of fair value of long-term equity investment before
additional investment and cost of additional investment according to Accounting Standard for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Subsequent Measurement and Recognition Method
Long-term equity investments which are the Company with joint control of (excluding joint operation), significant
influence over the investees shall be accounted under equity method. Besides, long-term equity investments which
are the Company with control of the investees shall be accounted under cost method.
(1)A long-term equity investment accounted under cost method
Under the cost method, long-term equity investment is measured at initial cost, additional investments or
disinvestments shall make an adjustment to the cost of long-term equity investment. The investment income
recognized by the Company shall be limited to the dividends or profits declared to distribute by the invested entity,
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
except dividends or profits declared in the consideration paid to acquire the investees.
(2) A long-term equity investment accounted under the equity method.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
Company’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, no adjustment
is made to the initial investment cost. Where the initial investment cost is less than the Company’s share of the fair
value of the investee’s identifiable net assets at the time of acquisition, the difference is recognized in profit or
loss for the period, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, the Company recognizes its share of the net profit or loss and other comprehensive
income made by the investee as investment income and other comprehensive income respectively, and adjust the
carrying amount of the long-term equity investment accordingly; The carrying amount of the investment is
reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to
the Company; the share of changes in owners' equity of the investee other than those arising from net profit or loss,
other comprehensive income and profit distribution are recognized in the capital reserve, the carrying amount of
the long-term equity investment is adjusted accordingly. The Company recognizes its share of the investee's net
profit or loss after making appropriate adjustments based on the fair value of the investee’s individual separately
identifiable assets, etc. at the acquisition date. Where the accounting policies and accounting period adopted by
the investee are not consistent with those of the Company, the Company shall adjust the financial statements of
the investee to conform to its own accounting policies and accounting period, and recognize investment income
and other comprehensive income based on the adjusted financial statements. For the Company's transactions with
its associates and joint ventures where assets contributed or sold does not constitute a business, unrealized
intra-group profits or losses are recognized as investment income or loss to the extent that those attributable to the
Company's proportionate share of interest are eliminated. However, unrealized losses resulting from the
Company's transactions with its associates and joint ventures which represent impairment losses on the transferred
assets are not eliminated. When the assets invested by the Company to associates or joint ventures constitute an
operation, and the investors thereafter own long-term equity investment without control of the Company, fair
value of the operation invested shall be accounted as cost of additional long-term equity investments, and
difference between initial recognized cost of additional long-term equity investments and its book value shall be
accounted in the profit or loss of current period. When the assets sold by the Company to associates or joint
ventures constitute an operation, the difference between consideration paid and book value of the operation shall
be recorded in profit or loss of current period. When the assets bought by the Company from associates or joint
ventures constitute an operation, gain or loss related shall be recognized according to Accounting Standard for
Business Enterprises No.20-Business Combination.
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The Company discontinues recognizing its share of net losses of the investee after the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of its net investment
in the investee is reduced to zero. If the Company has incurred obligations to assume additional losses of the
investee, a provision is recognized according to the expected obligation, and recorded as investment loss for the
period. Where net profits are subsequently made by the investee, the Company resumes recognizing its share of
those profits only after its share of the profits exceeds the share of losses previously not recognized.
(3) Acquisition of non-controlling shares
When preparing consolidated financial statements, differences between additional long-term equity
investments due to acquisition of non-controlling shares and attributable share of invested entity’s identifiable net
assets accumulated since acquisition date (or consolidation date) at shareholding ratio after acquisition, shall
adjust capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
(4) Disposal of long-term equity investments
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In consolidated financial statements, when parent company partially disposes long-term equity investments
in subsidiaries without losing control, the difference between proceeds received and attributable share of invested
entity’s identifiable net assets related to such investments sold, shall be recorded in shareholder’s equity; when
parent company partially disposes long-term equity investments in subsidiaries with control lost, adjustments shall
be made in accordance to Note III 6 (2).
Under other circumstances, for disposal of long-term equity investment, the Company shall derecognize such
investment and recognize in profit or loss the difference between the proceeds received, and the carrying amount
of the investment in the associates and joint ventures.
In terms of long-term equity investments accounted under equity method, the accounting method after
disposal shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income in relation to that investment on the same basis as would have been required if the investee
had directly disposed of the related assets or liabilities. The Company shall also reclassify to current period profit
or loss the proportion of changes in shareholders’ equity that had previously been recognized excluding changes
arising from net gain or loss, other comprehensive income, profit or loss.
In terms of long-term equity investments accounted under cost method, the accounting method after disposal
shall not change. The Company shall account for proportionate amount previously recognized in other
comprehensive income, arising from according equity method or recognition and measurement standard of
financial instruments before control of investees, in relation to that investment on the same basis as would have
been required if the investee had directly disposed of the related assets or liabilities. The amount in other
comprehensive income shall be transferred to current period profit or loss proportionately.
When the Company loses control over an investee due to partial disposal of its shares, during preparation of
individual financial statements, if the Company with retained shares after disposal can still joint control, or
influence over, the investee, the Company shall account for the investment under equity method and retained
shares shall be adjusted as would have been required if the retained shares had been recorded on initial recognition
under equity method; if the Company with retained shares after disposal cannot joint control, or influence over,
the investee, the Company shall account for the investment under the recognition and measurement standard of
financial instruments and recognize in profit or loss difference between the fair value of any retained shares and
carrying amount of the investment at the date of control lost. The Company shall account for amount previously
recognized in other comprehensive income, arising from according equity method or recognition and
measurement standard of financial instruments before control of investee in relation to that investment on the
same basis as would have been required if the investee had directly disposed of the related assets or liabilities. If
equity method is used before control, the Company shall also reclassify to current period profit or loss changes in
shareholders’ equity that had previously been recognized excluding changes arising from net gain or loss, other
comprehensive income, profit or loss. If retained shares are accounted under equity method, other comprehensive
income and changes in shareholders’ equity shall be transferred to current period profit or loss proportionally; if
retained shares are accounted under cost method, other comprehensive income and changes in shareholders’
equity shall be transferred to current period profit or loss at once.
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When the Company ceases to joint control or influence over investee due to partial disposal of its shares,
retained shares shall be accounted for under recognition and measurement standard of financial instruments and
difference between fair value and carrying amount shall be recorded in current period profit or loss. The Company
shall account for amount previously recognized in other comprehensive income arising from equity method in
relation to that investment on the same basis as would have been required if the investee had directly disposed of
the related assets or liabilities. The Company shall also reclassify to current period profit or loss the proportion of
changes in shareholders’ equity that had previously been recognized excluding changes arising from net gain or
loss, other comprehensive income, profit or loss.
When the Company ceases to control an investee due to partially dispose its shares by stages, if transactions
belong to one package, each transaction shall be accounted for as one event which lead to control cease. Prior to
control lost, the difference between proceeds received and carrying amount of investment sold shall be recorded in
other comprehensive income first and transferred to current period profit or loss when control lost.
15. Investment real estate
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property refers to the properties held for the purpose of generating rent and/or capital appreciation. The company’s
investment property includes the land use right rented and the constructions leased.
The Company makes initial measurement at the costs that the properties is acquired and records as part of the
property costs the subsequent expenses that could bring economic benefit inflows and be measured reliably while
other subsequent expenses as part of current profit and loss. Such properties are depreciated or amortized in
accordance with the relevant regulations for fixed assets or intangible assets.
16. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes, and have useful lives of more than one accounting year.
A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to
the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation methods
Estimated useful Estimated residual value
Type Detail Depreciation rate(%)
rate
Life
Over the period of title
(the period specified on
the real estate title
House and Building Straight-line method 5 3.17
certificate or land use
right certificate) or 30
years in case of no period
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of title
Kiln Straight-line method 5 5 19
Platinum passage Straight-line method 3 95.50 1.5
Glass flat-panel and other
Straight-line method 15 5 6.33
equipment
other equipment Straight-line method 10 5 9.5
Transportation
Straight-line method 5 5 19
equipment
According to the length
Temporary equipment Straight-line method 0
of the project
Testing, quality
inspection, office
Straight-line method 5 5 19
equipment, tools and
other tool
The platinum channel is mainly made up of precious metals such as platinum and rhodium, which almost has
no losses. Hence, the channel has a higher rate of net residual value.
Thereinto, the fixed asset whose asset impairment provision has been withdrawn should also have its
accumulated amount deducted to count and confirm the depreciation rate.
When the year of the fixed asset comes to an end, the Company will review its service life, net residual value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one, adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one, adjustment will be made for the estimated
one.
（3）Cognizance evidence and pricing method of financial leasing fixed assets
Fixed assets from finance lease are depreciated during the useful life if it is reasonable to determine that the
ownership could be obtained upon lease expiration; otherwise, the Company chooses the shorter of the lease
period and the remaining useful life to depreciate the assets.
When the year of the fixed asset comes to an end, the Company will review its service life, net residual value
and depreciation method. Should there be any differences between the estimated amount of service life and the
initially estimated one, adjustment will be made for the service life; Should there be any differences between the
estimated amount of net residual value and the initially estimated one, adjustment will be made for the estimated
one.
(4)Charge for Major Overhaul
The Company conducts regular checking on major overhaul fee incurred in the fixed asset, and any parts of
the fee that have unambiguous evidence to indicate they conform with the condition for confirming fixed asset
will be counted into the fixed asset costs, otherwise into the profit and loss of the current period. During the
interval period of regular major overhaul, the fixed asset will be depreciated as before.
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17. Construction in progress
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
18. Borrowing expenses
Borrowing costs include interest expenses, amortization of discount or premium, auxiliary expenses,
exchange differences arising from foreign currency borrowings, etc. Borrowing costs directly attributable to the
acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and
borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that
are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or
sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of the capitalized interest is the
actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the
borrowed funds before being used on the asset or any investment income on the temporary investment of those
funds. Where funds are borrowed under general-purpose borrowings, the Company determines the amount of
interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the
excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to the principal and interest on a
specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying
asset. The exchange differences related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognized as a financial expense when incurred.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need to
be acquired, constructed or produced through a long period of time, in order to become ready for its intended use
or sale.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the
borrowing cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the
special borrowings times the capitalization rate of the used general borrowings, which is determined by the
weighted average interest rate of the general borrowings.
19.Biological Assets
20.Oil & Gas assets
21.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
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use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is
feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product
generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used
internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to
complete the development of the intangible assets and the intangible assets can be used or sold; the development
expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study,
the project will enter the development stage.
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22. Impairment of the long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties measured
using the cost model and long-term equity investments in subsidiaries, joint ventures and associates are tested for
impairment if there is any indication that an asset may be impaired at the balance date. If there is an indication that
the asset may be impaired, the Company shall estimate the recoverable amount and perform impairment test.
Goodwill, intangible assets with indefinite useful life and intangible assets not available for use, shall be tested
each year no matter whether there is an indication that the asset may be impaired.
If the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying
amount, a provision for impairment and an impairment loss are recognized for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell and the present value of the future cash flows expected to be derived from the asset. Fair value shall
be determined as the price as stipulated in the sales agreement in the orderly transaction. Where there is no sales
agreement but there is an active market of assets, fair value shall be determined as the quoted price in active
market for identical assets or liabilities. Where there is no sales agreement and no active market of assets, fair
value shall be estimated according to the best information available. The disposal expenses shall include the
relevant legal expenses, relevant taxes, truckage as well as the direct expenses for bringing the assets into a
marketable state. The present value of the expected future cash flow of an asset shall be determined by the
discounted cash with an appropriate discount rate, on the basis of the expected future cash flow generated during
the continuous use or final disposal of an asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment,
irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the
synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset
group or group of asset groups, including the goodwill allocated, is lower than its carrying amount, the
corresponding impairment loss is recognized. The impairment loss is first deducted from the carrying amount of
goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying
amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts of
other assets.
Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the
subsequent periods.
23.Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
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24 Employees’ Remuneration
(1) Accounting methods for short-term compensation
Employee remuneration refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefits and
other long-term employee benefits as well as the benefits the Company provides to employees’ spouses, children,
dependents, deceased employees’ family and other beneficiaries.
The Company classifies into short-term compensation the employee remuneration that needs to be paid off
entirely in the twelve months following the reporting year the employees have provided their services, which
excludes those given for employment termination. Short-term compensation includes payroll, bonus, allowances
and subsidies, employee welfare, social security expenses including medical insurance, injury insurance and birth
insurance, housing fund, labor union and employee training expenditures, short-term paid leaves, short-term profit
share plans, non-monetary benefits and other short-term rewards. It recognizes as liabilities the actual short-term
compensation incurred during the accounting period that the employees provide their services and records in
current profit and loss or the relevant asset costs. Non-monetary benefits are measured at the fair value.
(2) Accounting methods for post-employment benefits
Post-employment benefits are mainly defined contribution plans, which include basic pension, unemployment
insurance etc. The corresponding contributions are recorded in the relevant asset costs or current profit and loss
when incurred.
(3) Accounting methods for demission benefits
Demission benefits are the compensations paid to terminate employment before expiration or encourage
employees to accept lay-off.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits are all other employee compensations than short-term compensation,
post-employment benefits and demission benefits. They are long-term paid leaves, long-term benefits for the
disabled, long-term profit sharing plans etc.
25. Estimated Liabilities
The Company recognizes as estimated liabilities the obligations that meet the following conditions:
A. Current obligations being undertaken by the Company;
B. Fulfillment of the obligations that lead to cash flow out of the Company;
C. The amount of the obligations that can be measured reliably.
If it is expected that a third party can compensate for all or partial expenditures to pay off the recognized
estimated liabilities, the compensation can be recognized separately as assets only when the Company is sure to
receive it. The amount to recognize cannot exceed the book value of the recognized liabilities.
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26 Share-based Payment
(1) Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
(2) Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for, the
options pricing model is adopted to determine the fair value.
(3) Recognition Basis for Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
27.Preferred shares, perpetual capital securities and other financial instruments
28.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Income, is an enterprise formed in daily activities, will lead to an increase in shareholders' equity, the total inflow
of capital has nothing to do with the economic interests of the owner of investment. The company involved in inco
me, including revenue from selling goods, income of labor ,transferring assets use right and
Construction contract income.
(1) Merchandise sales
The merchandises will be transferred to the purchaser when they meet with both the major risk and reward of
the merchandise ownership; The Company will no longer keep the continuous management right which is usually
related to the ownership, and no longer carry out valid control on the merchandises sold; The amount of income
can be reliably calculated; Relevant economic interest can inflow; Relevant costs incurred or about to incur can be
reliably calculated to confirm the realization of the income of merchandise sales.
Specific methods for revenue recognition: Companies which are engaged in photoelectric display materials,
graphene and electronic communication products, according to the stipulations in the sales contract, will have
their revenue recognized after the goods have been delivered to clients and checked and accepted by clients;
Those which are engaged in passenger car business, according to the agreement, Confirm the sales revenue when
the goods are delivered to the customer and invoiced according to the contract.; Those which are engaged in
export sales business will have their revenue recognized when receiving the export certificate(customs
declaration).
(2) Services
Service transaction can be estimated reliably, meaning the following conditions are satisfied: amount of revenue c
an be measured reliably; the relevant economic benefits are likely to flow into the enterprise; completion of the tra
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nsaction can be measured reliably; transactions that have occurred and will occur costs can be reliably measured
For the services that start and end during the same accounting year, the revenue shall be recognized upon
completion; if the services end in a different accounting year and the service transaction results can be measured
reliably, the Company adopts the completion percentage method to recognize the revenue on balance sheet dates;
if not measurable reliably, the Company recognizes the revenue at the amount of the service costs that are incurred
and can be compensated expectedly; otherwise, the service costs incurred are recognized as current expenses.
The Company adopts the following methods to determine the completion progress of service transactions:
①measurement of the completed jobs; ②the proportion of the completed services to all; ③the proportion of the
costs incurred to the total.
The company provides services at the balance sheet date, the transaction can not be reliably estimated, it shall be t
reated as follows: the costs incurred are expected to be compensated, according to the amount of labor costs that h
ave occurred service revenue is recognized, and the same amount knot turn labor costs; the costs incurred are not e
xpected to be compensated, labor costs should be recognized in profit or loss has occurred, no service revenue is r
ecognized.
Contract or agreement entered into with other companies, including the sale of goods when providing services, the
sale of goods and rendering of services can be measured in part to distinguish and separate, should be part of the s
ale of goods as sale of goods, the provision of services and as part of the provision of services deal with. Sales of
goods and rendering of services can not be distinguished, or can be distinguished but can not be measured separat
ely, should be part of the sale of goods and provision of services as part of the total sales of goods.
If property management has provided service, economic interest related to property management service is
able to flow into the enterprise, and costs related to the property management service can be reliably calculated,
the realization of property management income will be confirmed.
(3) Use Rights of Assets on Alienation
The right of using transferred asset includes lease earning, intermediate business income, interest income and
usage fee income.
When the right of use the transferred asset can, at the same time, conform with the condition that relevant
interest income is likely to inflow and the income amount can be reliably calculated, the income of the right of use
the transferred asset can be confirmed. The interest income will be counted and confirmed according to the time
and actual interest rate of the enterprise’s monetary capital used by others; The charge for use will be counted and
confirmed according to charging time and method stipulated in the relevant contracts or agreements.
（4） Construction Contracts
Under the situation where the result of contract forming can be reliably estimated, the contract income and
contract costs will be confirmed by the contract’s completion percentage on the balance sheet date. The contract’s
completion percentage will be confirmed by the proportion that the accumulated contract costs actually incurred
occupies the predicted total contract cost
That the result of construction contract can be reliably estimated refers to that the following can be conformed
with at the same time: 1)The total income of contract can be reliably calculated; 2)The economic interest related
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to the contract has major possibility to flow into the enterprise; 3)The contract costs actually incurred can be
clearly distinguished and reliably calculated; 4)The completion progress of contract and the costs which still needs
to incurred for completing the contract can be reliably confirmed.
If the result of construction contract can not be reliably estimated while its costs can be recoverable, the contract
income will be confirmed according to the actual contract costs which can be recoverable, and the contract costs
will be confirmed the contract fee at its current period; The contract costs which can not be recoverable will be
confirmed as not the cost income but the cost fee when the recovery incurs.
If the uncertainties that result construction contract to be not reliably estimated no longer exist, the income and fee
related to the construction contract will be confirmed according to the completion percentage.
If the predicted total contract cost is more than the total contract income, the predicted loss be will confirmed as
the current fee.
The accumulated cost of the construction contract which has incurred, the accumulated gross profit (loss) has been
confirmed, and the payment amount which has been settled will be presented as the net amount after offset in the
balance sheet. The part that the sum of the accumulated cost incurred and the accumulated gross profit (loss)
confirmed more than the payment amount settled will be presented as the one which has been completed but yet to
be settled.The part, where the sum that the payment amount settled of the construction contract is more than the
accumulated cost incurred and the accumulated gross profit (loss) confirmed, will be presented as the one which
has been settled but yet to be completed.
29.Governmental subsidy
(1)Basis and accounting methods for assets related government subsidies
Government subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from the
government, not including the capital into which the government invests as a investor who has relevant ownership
interest. Government subsidies are divided into the subsidy related to assets and the other related to earnings.
Government subsidies related to monetary assets will be measured according to the amount received or the
amount receivable. Those which related to non-monetary assets will be measured according to fair value; For any
fair value which can not be reliable to be obtained, the assets will be measured according to the nominal amount,
and the one measured according to the nominal amount will be directly counted into the current profits and losses.
The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss
by stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the
pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocated
pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and the
recognized government grant needs to be refunded, then it shall write down the carrying amount of the relevant
deferred income and the excess part shall be included in the current profit and loss.
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2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income
The government grants pertinent to income that are used to compensate the relevant costs or losses of the
subsequent period of the enterprise are recognized as deferred income and are credited to the current profit or loss
for the period when the relevant costs, expenses or losses are recognized; those government grants used for
compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits
and losses.
For the government subsidy which includes both the assets related part and the income related part, the different
parts are treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy related
to the income.
Government subsidies related to the daily activities of the company shall be included in other earnings in
accordance with the substance of the economic business. Government subsidies not related to the daily activities
of the company shall be included in the non-operating income and expenditure.
30. Deferred income tax assets/Deferred income tax liability
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax liabilities shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax liabilities caused by deductible temporary differences within the limit of likely obtained taxable income that
can be used to deduct the deductible temporary differences of the taxable income.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
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the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
31.Operational leasing
（1）Accounting of operational leasing
The Company will transfer substantially all the risks and rewards of ownership of an asset lease is recognized as a
finance lease. Other forms of lease besides financial leasing are considered as operating leasing.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
(2) Accounting Method for Financing Leases
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
32. Other significant accounting policies and estimates
（1）Discontinued Operation
Discontinued operation means enterprises which can meet one of the following conditions and can be
distinguished into a constituent part separately, and this part has been disposed or divided into a on-sales category.
②This part is a one of the related parts which proposes to dispose an independent main business or an
independent main business area.
③This part is a subsidiary acquired from being specifically for reselling.
For accounting treatment methods for discontinued operation, see the relevant descriptions at Article 13-
Possession of On-Sales Asset in Note III
(2) Share Repurchase
Share repurchase refers to the behavior of repurchasing a certain sum of Company's outstanding stocks from the
stock market by cash and other methods; and the behavior that the incentive objects of restricted stocks fail to
submit a written application to the Board in the prescribed period shall be deemed as voluntarily give up the
unlocking, the corresponding restricted stocks shall no longer be unlocked and shall be logged out after the
repurchase at the awarded price by the Company. If any period fails to meet the unlocking conditions within the
unlocking period, the restricted stock with the unlocking application qualification in the current period cannot be
unlocked and shall be logged out after the repurchase by the Company.
Upon the legal procedures and reporting approval and through repurchasing the Company’s stocks, the
Company’s reduction of capital is conducted according to the total nominal value of written-off stocks. The part of
price paid to stock repurchase (including transaction expenses) that excesses the total nominal amount shall offset
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
the capital reserve (share premium), earned surplus and undistributed profits in sequence; The part of price paid to
stock repurchase (including transaction expenses) that less than the total nominal amount shall increase the capital
reserve (share premium).
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other
1. Income tax
Income tax is composed of current income tax and deferred income tax. All taxes and expenses are written in
current profit and loss except those for reputation adjustment in enterprise combination or trades directly counted
into shareholder’s equity or some deferred income tax which is counted in shareholder’s equity.
Current income tax is payable tax amount currently calculated as current taxable income. Payable tax amount
is calculated by adjusting pre-tax accounting profit specified in related tax laws.
The company confirms deferred income tax by adopting liability method in Balance Sheet based on the
temporary difference between book value of asset and liability in Balance Sheet and tax base.
Temporary difference of items of payable taxes are confirmed to be related deferred income tax liabilities,
except the temporary difference of payable taxes are made in the following conditions:
A. Initial confirmation of reputation or that of assets or liabilities made in trades with these features: the trade
is not enterprise combination and it neither influences accounting profit nor amount of payable tax when it
happens.
B. As for temporary difference of items of payable taxes related to investment to subsidiaries, joint
enterprises and associated enterprises. The temporary difference return time may be controlled and may not return
in foreseeable future.
On the date of balance sheet , the company will calculate deferred income tax assets and deferred income tax
liabilities according to applicable tax between expected recovered assets and paid liabilities, and also the company
will reflect the income tax influence in ways of expected recovered assets and paid liabilities on the date of
balance sheet.
On the date of balance sheet, the company will check the book value of the deferred income tax assets. If it
was unlikely to obtain sufficient taxable income taxes to offset benefit of deferred income tax assets, while it was
likely to obtain sufficient taxable income, carrying amount of deferred income tax assets shall be written down.
2. Safety production expenses
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
The company counts and draws safety production expenses specified in Notification on Printing and
Distributing and Administrative Measures on Drawing and Using Enterprise’s Safety Production Expenses issued
by Ministry of Finance and State Administration of Work Safety. Safety production expenses is specialized in
improving safe production.
Safety production expense is counted into related product’s cost or current profit and loss. At the same time,
it is also counted into specialized reserve. In case the safety production expense to be delivered is used in expense,
we directly consume specialized reserve. In case safety production expense to be delivered belongs to fixed asset
and is spent in construction in-process, confirm it as fixed asset when the project is completed safely and is ready
to put into use. Meantime, consume specialized reserve as the cost forming into fixed asset and confirm it as
equivalent accumulated depreciation.
3. Judgement and Estimation for Significant Accounting
During the process of applying accounting policies, due to to inherent uncertainties in business activities, the
Company requires judgement, estimation and assumption for the book value of the report items which can not be
measured accurately. Such judgement, estimation and assumption is made basing on the previous experience of
the Company’s management as well as the consideration of other relevant factors. And the reported amount of
revenue, cost and asset, as well as the disclosure of balance sheet date and the liability will be influenced by such
judgement, estimation and assumption; However, there may be differences between the actual result caused by the
uncertainties of such estimation and the current estimation of the Company’s management, thereby significant
adjustment will be made for the assets influenced in the coming future and the indebted book value.
The Company will periodically recheck the above-mentioned judgement, estimation and assumption based
on going concern. The changes of accounting estimation only influence those which are influenced at the current
period, and of which the influence number will be confirmed at that current period; For those changes which have
influence both at the current period and the future period, the influence number of them will be confirmed at that
current period and the future period.
On balance sheet date, the significant fields where the Company needs to make judgement, estimation and
assumption for the financial statement items will be as follows:
(1)Revenue Recognition-Construction Contract
When the result of construction contract can be estimated reliably, the Company will confirm the contract revenue
on balance sheet date by adopting Percentage of Completion Method. The percentage of completion will be
confirmed according to Article 26-Revenue Recognition Principle in Note III and it will be totalized in each
accounting year of executing this contribution contract.
Significant judgement needs to be made when confirming the percentage of completion, the contract cost occurred,
the total predicted revenue of the contract and total cost of the contract, as well as the recoverability of the
contract. The project management will make judgement mainly by means of previous experience and work. The
total predicted revenue and total cost of the contract, as well as the estimation changes of contract execution result
will probably have effect on the operation revenue, the operation cost at the current changing period or at the
subsequent period, as well as the profits and losses during that period, and significant influence is likely to be
formed due to the above-mentioned changes.
(2) Provision for bad debts
The Company uses the allowance method to account for bad debt losses in accordance with the accounting policy
for accounts receivable. Impairment of accounts receivable is based on the assessment of the recoverability of
accounts receivable. The identification of impairment of accounts receivable requires management's judgment and
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
estimation. The difference between the actual result and the original estimate will affect the book value of
accounts receivable and the provision or reversal of bad debt provision for accounts receivable during the period
in which the estimate is changed.
(3) Inventory falling price preparation
According to the inventory accounting policy, the Company measures the lower of cost and net realizable
value, and makes provision for inventory devaluation for inventory whose cost exceeds net realizable value,
obsolete and unsalable. The depreciation of inventories to net realizable value is based on the assessment of the
saleability of inventories and their net realizable value. Identification of impairment of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence and considering the
purpose of holding the inventory and the influence of events after the balance sheet date. The difference between
the actual result and the original estimate will affect the book value of inventory and provision or reversal of
inventory depreciation provision during the period in which the estimate is changed.
(4) Depreciation and amortization
After considering the salvage value of investment real estate, fixed assets and intangible assets, the company
shall accrue depreciation and amortization on a straight-line basis over its useful life. The Company regularly
reviews the service life to determine the amount of depreciation and amortization expenses to be included in each
reporting period. The service life is determined by the Company based on past experience of similar assets and
combined with expected technical updates. If there has been a significant change in previous estimates, the
depreciation and amortization expense will be adjusted in the future period.
(5) Deferred income tax assets
Insofar as it is highly probable that there will be sufficient taxable profits to offset losses, the company will
recognize deferred income tax assets for all unused tax losses. This requires the management of the company to
use a large number of judgments to estimate the time and the amount of future taxable profits, and combine the tax
planning strategy to determine the amount of deferred income tax assets that should be recognized.
(6) Income tax
In the normal business activities of the company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. It requires the approval of the tax authorities on whether some items can be
listed as deductible in the profit before tax. If there is a difference between the final recognized result of these
taxation matters and the originally estimated amount, the difference will have an impact on the income tax and the
deferred income tax of that period with the final recognition being made.
VI. Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
Sales revenue and
VAT 3%、10%、16%、17%、11%
Technical services revenue
Urban construction tax Turnover tax to be paid allowances 7%
Enterprises income tax Taxable income 9%、10%、15%、16.5%、25%
VAT Technical services revenue 6%
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Educational surtax Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
2.Tax Preference
① On September 29, 2015,The Company was rated as the national high-tech enterprise with validity of 3 years.
As per the provisions of enterprise income tax law, the Company adopts 15% enterprise tax rate applicable for
high-tech enterprises for three years since 2015.
②On July 20, 2017,Wuhu Tunghsu Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2017.
③On October 21, 2016,Wuhu Tunghsu Optoelectronic Equipment Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
④On November 21, 2016,Shijiazhuang Tunghsu Optoelectronic Equipment Technology Co., Ltd. was rated as the
national high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the
Company adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑤On August 3, 2015,Zhengzhou Xufei Optoelectronic Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2015.
⑥On November 21, 2016,Shijiazhuang Xuxin Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑦On November 30, 2016,Jiangsu Jixing New Material Co., Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2016.
⑧On November 24, 2016,Shanghai Tanyuan Huigu New Material Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑨On December 1, 2016,Mingshuo(Beijing) Electric Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⑩On October 25, 2017,Beijing Xutan New Material Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2017.
⑾On November 17, 2017,Suzhou Tengda Optical Technology Co., Ltd. was rated as the national high-tech
enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15%
enterprise tax rate applicable for high-tech enterprises for three years since 2017.
⑿On December 8, 2016,Sichuan Xuhong Optoelectronic Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒀On November 24, 2016,Shanghai Sunlong Bus Co., Ltd. was rated as the national high-tech enterprise
with validity of 3 years. As per the provisions of enterprise income tax law, the Company adopts 15% enterprise
tax rate applicable for high-tech enterprises for three years since 2016.
⒁On December 8, 2016,Chengdu Tunghsu Intelligence Technology Co., Ltd. was rated as the national
high-tech enterprise with validity of 3 years. As per the provisions of enterprise income tax law, the Company
adopts 15% enterprise tax rate applicable for high-tech enterprises for three years since 2016.
⒂Daosui Group Tibet Construction Development Co., Ltd, based on the “Notice of the People's Government
of Tibet Autonomous Region on Issuing the Measures for the Implementation of Enterprise Income Tax Policy of
Tibet Autonomous Region” (Zangzhengfa [2014] No. 51) policy, enjoys the corporate income tax at the rate of
15% for the strategy of developing the western region and is exempted from the 40% tax share that originally
belongs to the local place, thus actually implementing the income tax rate of 9%.
⒃Guangxi Yuanzheng New Energy Automobile Co., Ltd, based on the Guangxi People’s Government’s
Circular on the Continuation and Revision of Certain Policies Concerning the Promotion of the Open
Development of the Guangxi Beibu Gulf Economic Zone” (Gui Zhengfa [2014] No. 5) policy, enjoys the
corporate income tax at the rate of 15% for the strategy of developing the western region and is exempted from
the 40% tax share that originally belongs to the local place, thus actually implementing the income tax rate of 9%.
⒄Harbin Sunlong New Energy Automobile Sales Co., Ltd, based on the “Notice of Ministry of Finance,
State Administration of Taxation on the Relevant Issues Concerning the Preferential Policies for Small-scale,
Low-profit Enterprises” (Cai Shui [2011] No. 117) and the 28th clause of “The People's Republic of China
Enterprise Income Tax Law”- that the small profit-making enterprise that meets the requirements enjoys a
reduction of 20% tax rate on the corporate income tax, actually implements the income tax rate of 10%.
3.Other
VII. Notes to the major items of consolidated financial statement
1.Cash and bank balances
In RMB
Items Year-end balance Year-beginning balance
Cash 460,584.36 2,461,658.94
Bank deposit 23,203,703,585.91 26,666,668,936.88
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Other 590,432,885.53 787,629,173.04
Total 23,794,597,055.80 27,456,759,768.86
Other notes
The amount of restricted cash and bank balances by the end of the period is RMB 2,351,663,690.33.
2.Financial assets measured at fair value through current profit and loss
3.Derivative financial assets
□Applicable √ Not applicable
4.Note receivable
（1）Classification bill receivable
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 327,763,684.95 267,121,031.99
Trade acceptance 447,624,748.00 271,007,552.85
Total 775,388,432.95 538,128,584.84
（2）Note receivable pledged by the Company at the period -end
（3）Note receivable endorsed or discounted by the Company as at June 30.2018 but not expired on the balance
sheet date
In RMB
Amount underecognized as at June
Items Amount derecognized as at June 30,2018
30,2018
Bank acceptance 215,608,081.81
Trade acceptance 598,836,048.03
Total 814,444,129.84
（4）There is no notes transferred to accounts receivable because drawer of the notes fails to exited the contract or
agreement
Notes：As of the semi-annual disclosure date, the company has signed an agreement with the relevant parties, the
company will receive the RMB 215 million of notes receivable from the company, such as Waterma, to give the
ticket holder, etc., and finally obtain the assessed value of not less than RMB 215 million of assets. "(Money funds
do not need to be assessed). 5. Account receivable
(1)Classification account receivables.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
In RMB
Year-end balance Year-beginning balance
Provision for bad
Book balance Book balance Provision for bad debts
debts Book
Category Book Value
Proport Value
Proportio Proportio Proportion
Amount ion Amount Amount Amount
n（%） n（%） （%）
（%）
Accounts receivable
of individually
withdrawing bad debt 169,193,82 169,193, 175,782 175,782,0
1.66% 100.00% 0.00 2.16% 100.00% 0.00
provision with 9.11 829.11 ,084.76 84.76
significant individual
amount
Account receivables
with provision for
7,975,7
bad debt made on a 10,042,312, 98.34 104,665, 9,937,647 102,357,1 7,873,419,6
1.04% 76,808. 97.84% 1.28%
portfolio with similar 738.35 % 569.58 ,168.77 24.41 84.42
83
risk credit
characteristics basis
8,151,5
10,211,506, 100.00 273,859, 9,937,647 278,139,2 7,873,419,6
Total 2.68% 58,893. 100.00% 3.41%
567.46 % 398.69 ,168.77 09.17 84.42
59
Accounts receivable subject to individually withdrawing bad debt provision with significant individual amount..
√ Applicable □Not applicable
In RMB
Amount in year-end
Account receivable(Unit) Provision for bad
Account receivable Proportion% Reason
debts
Inner Mongolia
Not expected to be recovered as a result
Zhunxing Heavy Haul 136,922,651.00 136,922,651.00 100.00%
of litigation
Expressway Co., Ltd.
Notes：For the account receivable of
Korea Sunlong Bus Co. Ltd-that the
outstanding payment of goods has been
long delayed due to the disruption of
Korea Sunlong Bus vehicle sales caused by the serious
32,271,178.11 32,271,178.11 100.00%
Co.Ltd contraction of Korean Tourism Market
and the Policy of Automobile Emission
Standard, the company has adopted a
variety of dunning measures, but has not
yet achieved results. At the end of the
121
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
period, the company conducted a
separate impairment test for that. After
being tested for impairment, the
impairment loss was determined based
on the difference of the present value of
its future cash flow lower than its book
value, making the provision for bad
debts.
Total 169,193,829.11 169,193,829.11 -- --
Accounts receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Account receivable Provision for bad debts Proportion%
Withitem 1 year
Within credit period 6,478,928,089.29
Within 1 year after credit period 823,936,445.65 41,196,822.36 5.00%
Subtotal within 1 year 7,302,864,534.94 41,196,822.36
1-2 years 141,927,415.09 14,192,741.51 10.00%
2-3 years 26,330,517.90 7,899,155.37 30.00%
3-4 years 58,707,194.54 29,353,597.27 50.00%
4-5 years 5,458,198.00 3,820,738.60 70.00%
Over 5years 8,202,514.47 8,202,514.47 100.00%
Total 7,543,490,374.94 104,665,569.58
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
Provisionfor Provision for
Group name Amount in year-end Amount in year- beginning
bad debt bad debts
State subsidy. Local subsidy 2,129,070,128.00 2,160,997,954.00
Other Group 369,752,235.41 293,949,697.69
Total 2,498,822,363.41 2,454,947,651.69
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB8,855,265.67;The amount
of the reversed or collected part during the reporting period was of RMB3,817,512.69.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（3）The current accounts receivable written-offs situation
In RMB
Items Amount written-offs situation
Sales goods 9,317,563.46
Account receivables actually written-offs during the reporting period：
In RMB
Nature of account Reason for written Verification Arising form related
Name Amount written-off
receivable -off procedures transactions(Y/N)
Bankruptcy and
Foshan Sanshui
liquidation of the
Yuejing Automobile
Sales goods 6,588,255.65 enterprise is not Internal approvals No
Transportion Co.,
expected to be
Ltd.
recovered.
Total -- 6,588,255.65 -- -- --
Notes：
（4）The ending balance of account receivables owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB3,135,836,063.48 which accounts for 30.71% of the total receivables. The total amount of closing balance
for corresponding accrued bad-debt provision is RMB158,300.88.
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
6. Advance payments
（1）Disclosed by aging:
In RMB
Amount in year-end Amount in year- beginning
Aging
Amount Proportion(%) Amount Proportion(%)
Within 1 year 1,317,256,741.99 86.04% 1,771,543,035.64 87.65%
1-2 years 156,933,894.37 10.25% 196,495,357.45 9.72%
2-3 years 15,382,125.47 1.00% 27,318,669.74 1.35%
Over 3 years 41,487,932.64 2.71% 25,762,888.12 1.28%
Total 1,531,060,694.47 -- 2,021,119,950.95 --
Notes ：
Nil.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（2）The ending balance of Prepayments owed by the imputation of the top five parties
As of June 30, 2018, the total amount of the top five companies in advance payments is RMB
283,116,591.02 , accounting for 18.49% of the total ending balance of prepayments of advance payments.
Other notes：
7.Interest receivable
（1）Classification Interest receivable
In RMB
Items Amount in year-end Amount in year-begin
Fixed deposit 29,306,335.47 49,456,785.29
Total 29,306,335.47 49,456,785.29
（2）Important overdue interest
8.Dividend receivable
（1）Dividend receivable
（2）Dividend receivable aging over 1 years
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion( Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Other Accounts
receivable of
individually
9,171,03 9,171,03 9,056,8 9,056,821
withdrawing bad debt 0.66% 100.00% 0.83% 100.00%
3.44 3.44 21.74 .74
provision with
significant individual
amount
Other receivables 1,374,76 99.34% 24,875,1 1.81% 1,349,893 1,080,8 98.85% 35,930,81 3.32% 1,044,890,3
subject to provision 8,974.30 82.22 ,792.08 21,148. 2.05 36.32
for bad debts on 37
credit risk
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
characteristics basis
Other Accounts
receivable of
individually
3,471,1 3,471,143
withdrawing bad debt 0.32% 100.00%
43.41 .41
provision with
non-significant
individual amount
1,093,3
1,383,94 34,046,2 1,349,893 48,458,77 1,044,890,3
Total 100.00% 2.46% 49,113. 100.00% 4.43%
0,007.74 15.66 ,792.08 7.20 36.32
52
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
End of term
Other receivable（Unit） Other Bad debt
Proportion Reason
receivable provision
Notes：For the account receivable of Korea Sunlong
Bus Co. Ltd-that the outstanding payment of goods
has been long delayed due to the disruption of
vehicle sales caused by the serious contraction of
Korean Tourism Market and the Policy of
Automobile Emission Standard, the company has
adopted a variety of dunning measures, but has not
KoreasunlongBusCo.Ltd 9,171,033.44 9,171,033.44 100.00%
yet achieved results. At the end of the period, the
company conducted a separate impairment test for
that. After being tested for impairment, the
impairment loss was determined based on the
difference of the present value of its future cash flow
lower than its book value, making the provision for
bad debts.
Total 9,171,033.44 9,171,033.44 -- --
Other receivable of combinational withdrawing bad debt provision by aging analysis method
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other account receivable Provision for bad debts Proportion(%)
Withinitem 1 year
Within credit period 321,164,774.89
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Within 1 year after credit period 60,045,557.92 3,002,277.90 5.00%
Subtotal Within 1 year 381,210,332.81 3,002,277.90
1-2 years 77,846,956.73 7,784,695.67 10.00%
2-3 years 41,371,145.56 12,411,343.66 30.00%
3-4 years 210,338.53 105,169.39 50.00%
Over 5 years 1,571,695.60 1,571,695.60 100.00%
Total 502,210,469.23 24,875,182.22
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√ Applicable □ Not applicable
In RMB
Group name Amount in year-end Bad debt provision
Persona Returnable Insurance 2,683,210.08
Deposit 862,419,394.97
Export tax refunds 7,455,900.02
Total 872,558,505.07
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB7,115,436.63, the account collected or switches back amounting to
RMB18,056,854.76.
Significant amount of reversed or recovered bad debt provision：
In RMB
Name Amount Method
Sichuan Panxi Lingshan Tourism
7,891,958.95 Retracted
Investment Development Co., Ltd
Total 7,891,958.95 --
(3) Other account receivables actually cancel after write-off
In RMB
Items Amount
Sales goods 3,471,143.41
Of Which, Other receivable write-off：
In RMB
Nature of account Reason for written Verification Arising form related
Name Amount written-off
receivable -off procedures transactions(Y/N)
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Bankruptcy and
Foshan Sanshui liquidation of the
Yuejing Automobile Sales goods 3,471,143.41 enterprise is not Internal approvals No
Services Co., Ltd. expected to be
recovered.
Total -- 3,471,143.41 -- -- --
Notes：
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Current account 387,321,573.47 413,488,631.19
Deposit 862,419,394.97 592,692,531.83
Project petty cash 80,043,589.50 68,529,879.43
Persona Returnable Insurance 2,683,210.08 2,564,564.43
Export tax refunds 7,455,900.02 6,453,137.37
Other 44,016,339.70 9,620,369.27
Total 1,383,940,007.74 1,093,349,113.52
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
Within credit
Sichuan City
period :80,000,000.0
Construction No.5
0; Within 1 year
Infrastructure Deposit 200,000,000.00 14.45%
after credit
Development Co.,
period:120,000,000.
Ltd.
00
Sichuan Panxi
Lingshan Tourism
Enterprises fund
Investment 93,188,661.00 Within credit period 6.73%
transfers
Development Co.,
Ltd.
Chongqing Haolong
Enterprises fund
Platinum Industry 69,163,611.11 Within credit period 5.00%
transfers
Co., Ltd.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Sichuan Nengtou
New City Anning
Valley Tourism
Equity transfer 51,970,000.00 Within credit period 3.76%
Investment and
Development Co.,
Ltd.
Within credit
period :2,830,829.70
Tibet transportation ; Within 1 year after
Deposit 35,154,463.70 2.54%
Dept. credit
period:32,323,634.0
0
Total -- 449,476,735.81 -- 32.48%
10.Inventory
（1）Inventory types
In RMB
Year-end balance Year-beginning balance
Items Provision for bad Provision for bad
Book Balance Book value Book Balance Book value
debts debts
Raw materials 1,829,971,611.21 22,577,740.86 1,807,393,870.35 2,210,317,909.51 23,802,249.09 2,186,515,660.42
Processing
237,283,016.68 1,443,698.36 235,839,318.32 243,932,972.44 1,443,698.36 242,489,274.08
products
Stock goods 495,293,750.48 17,267,664.82 478,026,085.66 457,130,464.91 9,080,902.13 448,049,562.78
Completed but
unsettled assets
caused by 844,012,557.86 844,012,557.86 760,198,642.91 760,198,642.91
construction
contract
Commissioned
processing 20,173,731.74 20,173,731.74 13,306,134.19 13,306,134.19
material
Development cost 749,023,361.73 749,023,361.73 1,188,193,081.41 1,188,193,081.41
Commissioned
processing 23,770,009.81 23,770,009.81 65,383,734.21 65,383,734.21
material
land arrangement 52,644,562.38 52,644,562.38 10,346,187.21 10,346,187.21
Total 4,252,172,601.89 41,289,104.04 4,210,883,497.85 4,948,809,126.79 34,326,849.58 4,914,482,277.21
128
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Inventory depreciation reserve
In RMB
Beginning of Increased in current period Decreased in current period
Items End of term
term Provision Other Transferred back Other
Raw materials 23,802,249.09 1,224,508.23 22,577,740.86
Processing
1,443,698.36 1,443,698.36
products
Stock goods 9,080,902.13 8,186,762.69 17,267,664.82
Total 34,326,849.58 8,186,762.69 1,224,508.23 41,289,104.04
Notes 1：Basis of provision for inventory revaluation reserve was cost and net realizable value, and reason of
inventory revaluation reserve provision was that final realizable net value was lower than cost.
(3) Explanation on inventories with capitalization of borrowing costs included at ending balance
The end of the development cost includes interest capitalization of 117,430,461.67 yuan.
(4) Assets unsettled formed by construction contract which has completed at period-end
In RMB
Items Amount
Accumulated Incurred Cost 6,320,487,912.95
Accumulated Confirmed Gross Profit 443,903,048.67
Settlement Amount 5,920,378,403.76
Unliquidated Completed Assets Formed in the Construction
844,012,557.86
Contract
Other notes：
11. Holding assets for sale
In RMB
Items End book value Fair value Estimated disposal cost Estimated disposal time
Long-term Equity
126,264,435.58 126,264,435.58 December 31,2018
Investment
129
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Total 126,264,435.58 126,264,435.58 --
Other notes：
Notes:Subsidiary-Shenzhen Xuhui Investment Control Co., Ltd. acquires Sub-Subsidiary
Mingshuo (Beijing) Electric Technology Co., Ltd., and the acquisition agreement stipulates that: Mingshuo (Beijin
g) Electric Technology Co., Ltd.’s original subsidiary, Mingshuo (Beijing) Trade Co., Ltd., Huzhou Mingwang Li
ghting Technology Co., Ltd
Pursuant to the agreement of the acquisition of sub-subsidiary company Daoshui Group Engineering Co.,
Ltd.: Daosui Group Engineering Co., Ltd originally held a subsidiary .Sichuan Panxi Liangshan Travel Investment
Development Co., Ltd.,Sichuan Panxi Lingshan Travel Investment Huanshun real estate Co., Ltd. Subei Hexing
Water Co., Ltd. was stripped after the acquisition, Sold on 31 December 2018
12. Non current assets due within one year
13. Other current assets
In RMB
Items Year-end balance Year-beginning balance
USD exchange 58,000,000.00 58,000,000.00
Prepayment of income tax 1,149,390,102.41 1,281,947,333.75
Short –term Financing 1,220,000,000.00
Total 1,207,390,102.41 2,559,947,333.75
14. Available-for-sale financial assets
(1) Available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Available-for-sale Equity
243,158,605.30 243,158,605.30 100,000,056.00 100,000,056.00
instrument
Cost measured 243,158,605.30 243,158,605.30 100,000,056.00 100,000,056.00
Total 243,158,605.30 243,158,605.30 100,000,056.00 100,000,056.00
（2）Available-for-sale financial assets measured by cost
（3）Available-for –sale financial assets measured at cost at the end of the year
In RMB
130
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Book balance Provision for impairment Percentage
Cash
of
dividends
Investee Balance of End of Balance of End of shareholdi
Increase Decrease Increase Decrease for the
term term term term ng in
year
investees%
Beijing
Yihuatong 100,000,05 100,000,05
5.51%
Technolog 6.00 6.00
y Co., Ltd.
Beijing
Shenwei
Lixing 29,500,000 29,500,000
16.48%
Auto .00 .00
Service
Co., Ltd.
China
Metallurgi
cal
investment
113,658,54 113,658,54
fund
9.30 9.30
manageme
nt
(Beijing)
Co., Ltd.
100,000,05 143,158,54 243,158,60
Total --
6.00 9.30 5.30
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair
value or non temporary decline but not related to impairment provision
Other notes:
Notes 1: On July 10, 2017, the Company subscribed for 1,282,052.00 shares of the add-directional share issuance of the
New Third Board Beijing Yihuatong Technology Co., Ltd at the price of RMB 78.00 per share, with paying the
consideration of RMB 100,000,056.00. After the subscription, the company holds 5.51% stake of Beijing Yihuatong
Technology Co., Ltd. As it’s unable to obtain fair value, the estimate is measured at cost.
Notes 2:On January 15, 2018, the Company obtained 16.48% equity of Beijing Shenwei Shixing Automobile
Service Co., Ltd. by RMB 29.5 million, and as there was no quotation in the active market and its fair value couldn’t
be reliably measured, the subsequent measurement was carried out according to cost.
Notes 3:On January 27, 2018, the Company’s wholly-owned subsidiary-Tunghsu Construction Group Co., Ltd,
MCC Jianxin Investment Fund Management (Beijing) Co., Ltd., Beijing Dongfang Xujie Fund Management Co.,
Ltd., China Metallurgical Group Co., Ltd., and Postal Savings Bank of China Chongqing Branch jointly signed the
131
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
“Private Investment Fund Contract of the Government and Social Capital Cooperation (PPP) Project of the
Municipal Pipeline Project of Funan New District of Hengshui City” and the “Private Investment Fund Contract of
Government and Social Capital Cooperation (PPP) of Municipal Road Engineering of Funan New District of
Hengshui City” ). As there was no quotation in the active market and its fair value couldn’t be reliably measured, the
subsequent measurement was carried out according to cost.
15. Held-to-maturity investment
(1) Held-to-maturity investment
(2) Important held-to-maturity investment at period-end
(3) Reclassify of held-to-maturity investment in the period
16. Long-term account receivables
（1）Long-term account receivables
In RMB
End of term Beginning of term
Items Provision for Provision for Range of rate
Book balance Book value Book balance Book value
impairment impairment
Sale of
138,899,570.7 138,899,570.7 143,988,866.9 143,988,866.9
commodities by 4.75%-20.56%
0 0 1 1
installment
138,899,570.7 138,899,570.7 143,988,866.9 143,988,866.9
Total --
0 0 1 1
(2) Long-term account receivables recognition terminated due to transfer of financial assets
(3) Long-term account receivables transferred and assets & liability formed by its continuous involvement
17. Long-term equity investment
In RMB
Increase/decrease
Closing
Other
Withdraw balance
Additi Deduct comprehe Declarati
Opening Gains/loss Other n Closing of
Investees on ion nsive on of cash
balance under equity changes impairme Other balance impairme
invest invest income dividends
method in equity nt nt
ment ment adjustmen or profit
provision provision
ts
I. Joint ventures
132
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
II. Associates
Tunghsu
Group 2,004,062,20 2,010,533
6,471,235.43
Finance 4.94 ,440.37
Co., Ltd.
Tunghsu
(Deyang)
Graphene
Industry
20,436,738.1 20,467,00
Develop 30,264.58
1 2.69
ment
Fund
Partnershi
p (LP)
Zibo Bus
32,678,813.5 35,127,75
service 2,448,937.71
7 1.28
Co., Ltd.
CUHK
internatio
nal 73,306,968.0 76,193,15
2,886,186.76
business 8 4.84
factoring
co., Ltd
2,130,484,72 11,836,624.4 2,142,321
Subtotal
4.70 8 ,349.18
2,130,484,72 11,836,624.4 2,142,321
Total
4.70 8 ,349.18
Other notes
At the beginning of the period, the long-term equity investment of the subsidiary Tunghsu Technology Co., Ltd.
was RMB 155,434.20, and there was no change in the current period. Tunghsu Technology Co., Ltd. is registered
in Germany and is currently in the process of cancellation and liquidation. According to the relevant laws of
Germany, the cancellation of liquidation requires a two-year public notice period, during which the agency is
managed by Tunghsu Optoelectronic Technology Co., Ltd. Unable to control the company, this period is not
included in the scope of consolidation.
18. Investment real estate
(1) Investment real estate by cost measurement
√ Applicable □Not applicable
In RMB
133
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
58,843,742.66 58,843,742.66
period-beginning
2.Increase in the current
9,513,629.19 9,513,629.19
period
(1) Purchase
（2）Inventory\Fixed
assets\ Transferred from 9,513,629.19 9,513,629.19
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end 68,357,371.85 68,357,371.85
II. Accumulated
amortization
1.Opening balance 614,302.80 614,302.80
2.Increased amount of
812,939.04 812,939.04
the period
(1) Withdrawal 614,302.80 614,302.80
（2）Other transfers 198,636.24 198,636.24
3.Decrease in the
reporting period
（1）Disposal
（2）Other out
4.Closing balance 1,427,241.84 1,427,241.84
III. Impairment provision
1.Opening balance
2.Increase in the
reporting period
134
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
（2）Other out
4. Closing balance
IV. Book value
1.Book value of the
66,930,130.01 66,930,130.01
period-end
2.Book value of the
58,229,439.86 58,229,439.86
period-begin
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
19. Fixed assets
(1) List of fixed assets
In RMB
Machinery
Items House, building Transportations Other equipment Total
equipment
I. Original price
1. Balance at
2,113,818,494.63 11,507,570,974.31 122,144,132.07 185,704,090.92 13,929,237,691.93
period-beginning
2.Increase in the
2,974,656.29 65,079,558.53 6,393,175.10 13,954,213.99 88,401,603.91
current period
(1) Purchase 2,559,600.13 56,226,791.96 5,953,249.38 9,296,571.11 74,036,212.58
（2）
Transferred from con 415,056.16 1,440,795.02 439,925.72 677,559.87 2,973,336.77
struction in progress
(3)Increased of
7,361,971.55 3,980,083.01 11,342,054.56
Enterprise
Combination
135
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（4）Investment
real estate transfer
（5）Sale-leasebacks
（6）Other increase 50,000.00 50,000.00
3.Decreased amount
10,927,023.65 43,952,557.36 4,468,678.34 4,262,534.50 63,610,793.85
of the period
（1）Disposal 1,413,394.46 43,952,557.36 4,468,678.34 4,262,534.50 54,097,164.66
（2）Investment
9,513,629.19 9,513,629.19
real estate transfer
（3）Sale-leasebacks
（4）Other increase
4. Balance at
2,105,866,127.27 11,528,697,975.48 124,068,628.83 195,395,770.41 13,954,028,501.99
period-end
II. Accumulated
depreciation
1.Opening balance 404,808,570.47 2,014,259,680.21 57,491,501.47 73,521,319.79 2,550,081,071.94
2.Increased amount
47,901,589.56 410,967,573.71 8,354,593.22 8,881,287.49 476,105,043.99
of the period
(1) Withdrawal 47,901,589.56 410,860,677.91 8,354,593.22 8,789,262.43 475,906,123.13
(2)Increased of
Enterprise 106,895.80 92,025.06 198,920.86
Combination
（3）Investment
real estate transfer
（4）Sale-leasebacks
（5）Other increase
3.Decrease in the
910,487.15 8,539,821.51 1,437,885.02 459,968.08 11,348,161.76
reporting period
（1）Disposal 711,850.91 8,539,821.51 1,437,885.02 459,968.08 11,149,525.52
（2）Sale-leasebacks
（3）Other decrease 198,636.24 198,636.24
4.Closing balance 451,799,672.88 2,416,687,432.42 64,408,209.67 81,942,639.20 3,014,837,954.17
III. Impairment
provision
1.Opening balance 36,444.84 555,940.00 592,384.84
2.Increase in the
reporting period
136
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 36,444.84 555,940.00 592,384.84
IV. Book value
1.Book value of the
1,654,066,454.39 9,111,974,098.22 59,104,479.16 113,453,131.21 10,938,598,162.98
period-end
2.Book value of the
1,709,009,924.16 9,493,274,849.26 64,096,690.60 112,182,771.13 11,378,564,235.15
period-begin
(2) Fixed assets temporarily idled
(3) Fixed assets rented by finance leases
In RMB
Accumulated Accumulated
Items Original book value Book value
depreciation depreciation
Platinum channel 278,041,238.65 6,986,248.73 271,054,989.92
Machinery equipment 1,388,411,273.94 270,572,104.36 1,117,839,169.58
(4) Fixed assets leased in the operating leases
(5) Fixed assets without certificate of title completed
In RMB
Items Book value Reason
Substation 288,854.51 Processing
Boiler room 3,988,717.38 Processing
20. Project under construction
(1)Project under construction
In RMB
Year-end balance Year-beginning balance
Items
Book balance Provision for Book value Book balance Provision for Book value
137
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
devaluation devaluation
Wuhu LCD glass
substrate
2,171,311,589.88 2,171,311,589.88 1,992,039,147.54 1,992,039,147.54
production line
project
Wuhan LCD glass
substrate
14,645,209.52 14,645,209.52 14,645,209.52 14,645,209.52
production line
project
Kunshan Color
508,106,857.14 508,106,857.14 363,976,794.49 363,976,794.49
film project
G8.5 glass
substrate 431,034,482.76 431,034,482.76
production line
Polarizer project 763,009,412.48 763,009,412.48
Surface display
408,325,886.73 408,325,886.73 15,954,258.93 15,954,258.93
cover glass
Yingkou LCD
glass substrate
425,964,281.66 425,964,281.66 410,371,760.10 410,371,760.10
production line
project
New energy bus
and logistics
1,309,658,561.00 1,309,658,561.00
vehicle production
project
Other 133,094,554.30 133,094,554.30 118,135,266.36 118,135,266.36
Total 5,402,141,422.99 14,645,209.52 5,387,496,213.47 3,678,131,849.42 14,645,209.52 3,663,486,639.90
(2) Changes of significant construction in progress
In RMB
Includin
Capitaliz g：
Amount Transferr ation of Current Capitaliz
Increase Balance
at year ed to Other Proporti Progress interest amount ation of Source
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest of funds
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
Wuhu
7,576,52 1,992,03 179,272, 2,171,31 739,441, 44,760,0 Raising
LCD 95.49% 95.49%
0,000.00 9,147.54 442.34 1,589.88 815.06 30.13 Funds
glass
138
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
substrate
producti
on line
project
Kunshan
Color 3,115,50 363,976, 144,130, 508,106, Raising
17.79% 17.79%
film 0,000.00 794.49 062.65 857.14 Funds
project
Producti
on Line
for the
8.5th-ge 6,950,00 431,034, 431,034, Raising
14.64% 14.64%
neration 0,000.00 482.76 482.76 Funds
Glass
glass
substrate
Xuyou
Sheet
2,200,00 763,009, 763,009,
glass Disposed Other
0,000.00 412.48 412.48
Phase I
Project
Surface
display 1,497,38 15,954,2 392,371, 408,325, Raising
27.84% 27.84%
cover 0,000.00 58.93 627.80 886.73 Funds
glass
New
energy
bus and
logistics 2,955,07 1,309,65 1,309,65 Raising
47.94% 47.94%
vehicle 4,600.00 8,561.00 8,561.00 Funds
producti
on
project
24,294,4
3,134,97 2,456,46 763,009, 4,828,43 739,441, 44,760,0
Total 74,600.0 -- -- --
9,613.44 7,176.55 412.48 7,377.51 815.06 30.13
0
139
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（3）Impairment provision of construction projects
21. Engineering Material
22.Liquidation of fixed assets
23. Productive biological assets
(1) Measured by cost
□ Applicable √ Not applicable
(2) Measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets
（1）Information
In RMB
I Land use Non patent Patent Right of trade
Patent right Software Other Total
tems right technology technology mark
I. Original
price
1. Balance at
887,528,257. 23,582,996.8 150,931,868. 87,050,298.1 1,156,848,48
period-begin 7,755,063.97
12 0 85 3 4.87
ning
2.Increase in
118,694,555. 53,938,713.4 14,445,166.6 191,072,596.
the current 3,994,161.16
29 1 7 53
period
(1) Purchase 118,694,555. 122,919,383.
250,000.01 3,974,827.83
29 13
（2）Internal
R&D
（3）
Increased of 53,688,713.4 14,445,166.6 68,153,213.4
19,333.33
Enterprise 0 7 0
Combination
140
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(4)Investor
investment
3.Decreased
amount of the
period
（1）Disposal
（2）Other
4. Balance at 1,006,222,81 77,521,710.2 165,377,035. 11,749,225.1 87,050,298.1 1,347,921,08
period-end 2.41 1 52 3 3 1.40
II.
Accumulated
amortization
1. Balance at
76,219,489.0 28,677,985.2 44,050,066.0 155,052,374.
period-begin 3,138,879.85 2,965,954.66
9 0 5 85
ning
2. Increase in
11,476,283.1 21,445,707.0 43,660,101.2
the current 1,668,516.73 8,282,595.52 786,998.72
9 4 0
period
(1) 11,476,283.1 21,445,707.0 42,850,991.0
1,221,110.79 7,921,466.35 786,423.71
Withdrawal 9 4 8
（2）
Increased of
447,405.94 361,129.17 575.01 809,110.12
Enterprise
Combination
3.Decreased
amount of the
period
（1）Disposal
（2）Other
4. Balance at 87,695,772.2 36,960,580.7 65,495,773.0 198,712,476.
4,807,396.58 3,752,953.38
period-end 8 2 9 05
III.
Impairment
provision
1. Balance at
period-begin
ning
141
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2. Increase in
the current
period
(1)
Withdrawal
3.Decreased
amount of the
period
（1）
Disposal
4. Balance at
period-end
4. Book value
1.Book value 918,527,040. 72,714,313.6 128,416,454. 21,554,525.0 1,149,208,60
7,996,271.75
at period -end 13 3 80 4 5.35
2.Book value
at 811,308,768. 20,444,116.9 122,253,883. 43,000,232.0 1,001,796,11
4,789,109.31
period-begin 03 5 65 8 0.02
ning
⑵Details of Land use right failed to accomplish certification of property
In RMB
Items Book value Reason
Land use right 70,964,030.64 50% outstanding
26. Research and development expenditure
In RMB
Beginning Ending
Items Increase in the period Decrease in period
balance balance
Graphene and
Lithium
3,883,495.16 3,883,495.16
Battery
Project
Magnolia
lamp design 762,432.49 7,676.59 770,109.08
project
142
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Landscape
street lamp
2,141,940.99 544,636.17 2,686,577.16
design
project
Distributed
photovoltaic
2,022,956.97 528,195.42 2,551,152.39
power plant
project
Low voltage
distribution
2,055,487.81 582,267.04 2,637,754.85
system
project
High voltage
distribution
3,096,837.78 792,293.21 3,889,130.99
system
project
Intelligent
photovoltaic 914,598.09 264,391.71 1,178,989.80
junction box
Electric
vehicle
charging pile 519,955.68 556,235.87 1,076,191.55
Project in
2017
EAS supply
1,002,691.08 1,002,691.08
chain system
Development
of main
Control
830,927.10 830,927.10
system for
AC charging
pile
High
efficiency
830,926.55 830,926.55
lighting
project
High
efficiency
836,864.94 836,864.94
street lamp
project
Jingang 1,143,898.85 1,143,898.85
143
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Robot
15,397,704.9 23,318,709.5
Total 7,921,004.53
7 0
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Mingshuo
(Beijng)
Electronic 32,783,882.96 32,783,882.96
Technology Co.,
Ltd.
Chenzhou
Hongcheng
Public Traffic
10,163,443.61 10,163,443.61
Constriction
Development
Co., Ltd.
Daosui Group
Engineering Co., 40,095,298.31 40,095,298.31
Ltd.
Chuanglian
Huatai(HK) Co., 722,450.89 722,450.89
Ltd.
Suzhou Tengda
Optics
82,350,192.94 82,350,192.94
Technology Co.,
Ltd.
Guangxi Sunlong
Automobile
55,664,910.37 55,664,910.37
Manufacturing
Co., Ltd .
Shanghai
Tanyuan Huigu
33,935,384.57 33,935,384.57
New Material
Co., Ltd.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Shanghai
Sunlong Bus Co., 2,331,962,577.34 2,331,962,577.34
Ltd.
Zhongcheng
national
130,169,968.13 130,169,968.13
construction co.,
Ltd.
Shenzhen Sanbao
Innovation
66,201,670.16 66,201,670.16
Intelligent Co.,
Ltd.
Huaxi Nanchong
Automobile Co., 56,773,762.72 56,773,762.72
Ltd.
Total 2,587,678,140.99 253,145,401.01 2,840,823,542.00
（2）Impairment provision of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes:
The increase in goodwill at the end of the period compared to the beginning of the period was mainly due to the ac
quisition of subsidiaries Zhongcheng national construction co., Ltd. , Shenzhen Sanbao Innovation Intelligent Co., Ltd. And
Huaxi Nanchong Automobile Co., Ltd. in the current period.
28.Long-term amortization expenses
In RMB
Balance in Increase at this Amortization
Items Other decrease Balance in year-end
year-begin period balance
Building renovation 20,884,579.02 7,773,533.85 9,874,189.85 8,816,276.17 9,967,646.85
NEG Technology
5,653,725.00 308,385.00 5,345,340.00
Use fee
145
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Total 26,538,304.02 7,773,533.85 10,182,574.85 8,816,276.17 15,312,986.85
29.Deferred income tax assets/deferred income tax liabilities
(1)Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets devaluation
347,775,330.45 69,202,590.32 361,268,489.05 72,770,445.79
provision
Not realized the internal
2,098,364,756.73 336,844,649.16 2,184,936,479.37 350,438,261.98
profit
Deductible loss 424,876,022.19 66,260,756.48 454,060,832.38 65,723,232.56
Deferred income
72,120,337.62 11,065,630.90 73,641,000.14 11,046,150.02
difference
Non-identical control
9,519,323.16 1,007,829.65 8,652,114.93 783,147.37
enterprise
Projected liability 32,515,694.09 8,128,923.52 38,543,627.93 9,635,906.98
Advance quality margin 80,746,536.90 10,659,353.58 117,878,085.38 16,420,648.06
Total 3,065,918,001.14 503,169,733.61 3,238,980,629.18 526,817,792.76
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Balance in year-end Balance in year-begin
Items Temporarily Deductible Deferred Income Tax Temporarily Deductible Deferred Income Tax
or Taxable Difference liabilities or Taxable Difference liabilities
Impairment of assets
under the control of
336,100,199.64 62,295,616.96 349,818,170.15 60,149,328.74
enterprises under the
same control
Total 336,100,199.64 62,295,616.96 349,818,170.15 60,149,328.74
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Items Trade-off between the End balance of deferred Trade-off between the Opening balance of
146
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
deferred income tax income tax assets or deferred income tax deferred income tax
assets and liabilities liabilities after off-set assets and liabilities at assets or liabilities after
period-begin off-set
Deferred income tax
503,169,733.61 526,817,792.76
assets
Deferred income
62,295,616.96 60,149,328.74
liabilities
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible losses 426,483,832.61 83,300,016.16
Bad debt provision 40,093.76 86,413.68
Impairment of fixed assets 1,935,234.19 1,935,234.19
Fixed assets depreciation reserves 36,444.84 36,444.84
Provision for impairment of construction
14,645,209.52 14,645,209.52
projects
Total l 443,140,814.92 100,003,318.39
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2018 3,000,263.93 2,986,414.60
2019 5,846,342.08 5,860,191.41
2020 3,470,816.94 3,751,170.54
2021 9,394,061.76 32,084,711.54
2022 17,012,060.02 38,617,528.07
2023 37,247,797.62 0.00
2024 383,871.35 0.00
2025 3,421,161.58 0.00
2026 10,452,118.86 0.00
2027 8,444,562.81 0.00
2028 327,810,775.66 0.00
Total 426,483,832.61 83,300,016.16 --
30 .Other non-current assets
In RMB
147
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Items Balance in year-end Balance in year-begin
Prepaid land fund 6,590,000.00
Prepaid engineering equipment 282,006,939.10 299,812,939.48
Total 282,006,939.10 306,402,939.48
31.Short –term loans
（1）Short-term loans by category
In RMB
Items Balance in year-end Balance in year-begin
Pledge loan 558,370,000.00 320,666,279.80
Mortgage loan 292,900,000.00 374,600,000.00
Guarantee loan 5,765,000,000.00 4,997,500,000.00
Credit loan 196,514,698.87 20,060,102.40
Total 6,812,784,698.87 5,712,826,382.20
Notes：
Notes 1. There is no mature but unredeemed short-term borrowing in the company during the accounting period.
Notes 2.At the end of the period, the company's credit loans of RMB 196,514,698.87.
Notes 3. The final mortgage was RMB 292,900,000.00.
（1）The sub-subsidiary Shenzhen Xinyintong Technology Co., Ltd via mortgage loan borrowed RMB
22,000,000.00, with that Zhang Lixia provided the house property of No. 5000615797 Shen Fangdizi and Zhong
Yuhua provided the house property of No. 3000415955 Shen Fangdizi as the collateral, and Zeng Jiankai, Zhong
Yuhua and Zhang Lixia provided the joint and several liability guarantee
（ 2 ） The sub-subsidiary Daosui Group Engineering Co., Ltd via mortgage loan borrowed RMB
120,900,000.00, thereinto, a: for RMB 53,000,000.00 , the guarantors were Yang Jianzhong and You Shaoguo,
with the mortgage of the land of Mianguoyong (2014) No. 0227 and the No. 0358 house property of Mianning
County Fangquanzheng Zi of Sichuan Panxi Lingshan Tourism Investment Development Co., Ltd; b: For RMB
26,000,000.00, the guarantors were Yang Jianzhong and You Shaoguo, with the mortgage of the No. 0358 house
property of Mianning County Fangquanzheng Zi, the No. 45, No. 46, No. 48 to No. 52 house properties of Real
Estate Certificate of Yue Limited Liability Zi and the lands of No.2016-1, No. 2016-2, No. 2016-4 to No. 2016-8
of Yueguoyong (2013) of Huaying Minghua Trading co., Ltd; c: Of which 2 were 27500000.00 yuan, the
guarantors were Yang Jianzhong and You Shaoguo, with the mortgage of No. 011160, No. 011161 and No. 011164
house properties of Huafangquanzheng, the No. 200700978-200700984 house properties of Guangfangquanzheng
and the No.384 land of Huaguoyong (2012); d: for RMB 14,400,000.00, the guarantor was Yang Jianzhong, with
the mortgage of No.011160, No. 011161 and No. 011164 house properties of Huafangquanzheng and the
No.20070
（3） The Sub-subsidiary Fuzhou Xufu Optoelectronic Technology Co., Ltd via mortgage loan borrowed RMB
150,000,000.00, with the maximum amount guarantee provided upon using the Fuzhou Xufu Optoelectronic
Technology Co., Ltd’s own plant and equipment;
Notes 4： Guarantee loan was RMB 5,765,000,000.00
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Whereby,
（1） Tunghsu Group Co., Ltd offered RMB 400,000,000.00 joint liability guarantee to The Company, Li
Zhaoting offered RMB960,000,000.00 joint liability guarantee to the Company，Tunghsu Group and Li Zhaoting
offered RMB1,150,000,000.00 Guarantee to the company,Tunghsu Group,Li Zhaoting and Li Qing offered RMB
1,280,000,000.00 Guarantee to the Company
（2） Tunghsu Group , The company and Li Zhaoting offered RMB 80,000,000.00 joint liability guarantee to
the Subsidiary –Sichuan Xuhong Optoelectronic Technology Co., Ltd.
（3） Tunghsu Group Offered RMB250,000,000.00 Joint liability guarantee to the subsidiary-Zhengzhou
Xufei Optoelectronic Technology Co., Ltd.，Tunghsu Group and Li Zhaoting Offered RMB 280,000,000.00
guarantee to the Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co., Ltd., The Company Offered
RMB50,000,000.00 guarantee to Sub- subsidiary- Zhengzhou Xufei Optoelectronic Technology Co.,
Ltd.,Tunghsu Group Offered RMB250,000,000.00 Joint liability Guarantee to Sub- Subsidiary-Suzhou Tengda
Potics Technology Co., Ltd.，The Company Offered RMB20,000,000.00 guarantee to Sub- subsidiary- Suzhou
Tengda Potics Technology Co., Ltd.
（4） The Company offered RMB 245,000,000.00 joint liability guarantee to the subsidiary- Wuhu Tunghsu
Optoelectronic Technology Co., Ltd.
（5）The Company offered RMB205,000,000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic
Technology Co., Ltd., The Company and Li Zhaoting offered RMB210,000,000.00 guarantee to the subsidiary-
Wuhu Tunghsu Optoelectronic Technology Co., Ltd.,Tunghsu Group and The company offered
RMB200,000,000.00 guarantee to the subsidiary- Wuhu Tunghsu Optoelectronic Technology Co., Ltd.
（6） Tunghsu offered RMB935,000,000.00 joint liability guarantee to the Subsidiary –Shanghai Sunlong
Bus Co., Ltd.,Tunghsu Group and Li Zhaoting offered RMB100,000,000.00 joint liability guarantee to the
Subsidiary –Shanghai Sunlong Bus Co., Ltd.,Tunghsu Group and The company offered RMB50,000,000.00 joint
liability guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd., The company offered RMB100,000,000.00
guarantee to the Subsidiary –Shanghai Sunlong Bus Co., Ltd.,Tunghsu Group offered RMB245,000,000.00 joint
liability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd., The company offered
RMB100,000,000.00 guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile Manufacturing Co., Ltd.,Shanghai
Sunlong Bus ffered RMB30,000,000.00 joint liability guarantee to the Sub-Subsidiary –Guangxi Sunlong Automobile
Manufacturing Co., Ltd .
Notes 5：Final pledge loan amount was RMB558,370,000.00.
Including: The pledge borrowing of RMB142,500,000.00 was provided a pledge guarantee by Wuhu Tunghsu
Optoelectronic Equipment Technology Co., Ltd using the term deposit certificate of RMB 150,000,000.00;
The pledge borrowing of RMB180,000,000.00 was provided a pledge guarantee by Sub--Subsidiary Hunan Tunghsu
Weigao Medical instrument Co., Ltd using the term deposit certificate of RMB100,000,000.00; Tunghsu Group
provides joint liability guarantee; The pledge borrowing of RMB69,000,000.00 was provided a pledge guarantee by
Sub—Subsidiary Daoshui Group Co., Ltd using the term deposit certificate of RMB72,010,000.00; The pledge
borrowing of RMB142,500,000.00 was provided a pledge guarantee by Wuhu Tunghsu Optoelectronic Technology
Co., Ltd using the term deposit certificate of RMB150,000,000.00; The pledge borrowing of RMB24,370,000.00 was
provided a pledge guarantee by Sub—Subsidiary Shenzhen Xinyingtong Technology Co., Ltd using the term deposit
certificate of RMB24,370,000.00;
(2) Situation of Overdue Outstanding Short-Term Borrowing
Final overdue outstanding short-term borrowing was zero.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
32. Financial liabilities measured at fair value through current profit and loss
33. Derivative financial liabilities
□ Applicable√ Not applicable
34. Note payable
In RMB
Items Balance in year-end Balance in year-begin
Commercial acceptance 344,370,940.00 237,603,082.40
Bank acceptance bills 654,896,156.40 826,294,597.49
Total 999,267,096.40 1,063,897,679.89
Amount due in next fiscal period is RMB0.00.
35. Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Engineering fund 1,392,966,173.99 1,095,153,995.50
Material fund 3,191,668,273.67 3,433,073,854.24
Transportation expenses 13,759,120.88 11,172,407.72
Technology Service 5,495,219.34 6,069,737.32
Other 86,849,717.14 91,519,044.87
Total 4,690,738,505.02 4,636,989,039.65
（2）Significant accounts payable that aged over one year
In RMB
The reason for not repaid or carried forwar
Items Balance in year-end
d
Failure to meet agreed terms and duration
Wuxi Jingke automobile Part Co., Ltd. 18,121,142.66
of payment
Failure to meet agreed terms and duration
Jiangsu Chengyi Technology Co., Ltd. 11,328,581.84
of payment
Total 29,449,724.50 --
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
36.Advance account
（1）Advance account
In RMB
Items Closing balance Opening balance
Goods 394,669,033.49 635,268,325.76
Engineering fund 581,688,484.32 1,019,869,237.87
Total 976,357,517.81 1,655,137,563.63
(2) Accounts payable with major amount and aging of over one year
（3）Information of unliquidated completed assets formed in the construction contract at the end of the
period
37. Employee compensation payable
(1)Classification of employee compensation payable
In RMB
Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end
I. Short –term wages 205,475,973.45 595,147,895.45 640,164,409.72 160,459,459.18
II. Welfare after waving
of position-fixed 2,221,388.80 30,526,036.84 30,678,815.74 2,068,609.90
provision scheme
III. Termination benefit 633,692.10 633,692.10
Total 207,697,362.25 626,307,624.39 671,476,917.56 162,528,069.08
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
158,272,400.10 541,739,195.25 589,129,164.56 110,882,430.79
allowances and subsidies
2.Employee welfare 54,843.85 15,315,888.40 15,327,038.59 43,693.66
3. Social insurance
1,209,437.58 15,908,948.99 15,918,971.63 1,199,414.94
premiums
Including：Medical
1,043,116.93 13,903,813.19 13,891,643.80 1,055,286.32
insurance
Work injury insurance 66,261.87 964,919.36 984,415.41 46,765.82
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Maternity insurance 100,058.78 1,040,216.44 1,042,912.42 97,362.80
4. Public reserves for
986,360.29 13,192,401.82 13,532,528.32 646,233.79
housing
5.Union funds and staff
44,804,730.41 5,765,542.19 3,069,334.05 47,500,938.55
education fee
8.Other 148,201.22 3,225,918.80 3,187,372.57 186,747.45
Total 205,475,973.45 595,147,895.45 640,164,409.72 160,459,459.18
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
2,080,192.50 29,094,532.72 29,231,356.98 1,943,368.24
insurance premiums
2.Unemployment
141,196.30 1,431,504.12 1,447,458.76 125,241.66
insurance
Total 2,221,388.80 30,526,036.84 30,678,815.74 2,068,609.90
38.Tax Payable
In RMB
Items Balance in year-end Balance in year-begin
VAT 95,390,421.31 60,982,068.15
Enterprise Income tax 177,344,409.38 170,094,083.01
Individual Income tax 31,738,325.42 30,271,740.75
City Construction tax 6,198,035.13 7,530,509.66
Business Tax 3,789,219.75 3,789,219.75
Land VAT 123,402,213.97
House property tax 8,631,784.38 8,631,413.12
Land use tax 1,616,902.49 1,802,208.59
Educational surtax 4,547,924.65 6,453,814.04
Stamp Tax 504,198.36 3,666,280.55
Output tax to be transferred 850,654.08 1,758,082.34
Total 454,014,088.92 294,979,419.96
39. Interest payable
In RMB
152
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Items Balance in year-end Balance in year-begin
Long-term loans interest of installment and
38,757,921.27 29,020,856.73
interest charge
Enterprise bond interest 147,856,644.87 66,833,709.29
Short term loan interest payable 10,172,452.28 11,340,581.18
Total 196,787,018.42 107,195,147.20
40. Dividends payable
In RMB
Items Balance in year-end Balance in year-begin
Common dividends 313,488,825.93 35,000,000.00
Total 313,488,825.93 35,000,000.00
41.Other payable
（1）Disclosure by nature
In RMB
Items Balance in year-end Balance in year-begin
Related party current account 211,378,080.73 475,619,957.85
Project Current account 1,033,083,932.83 727,962,152.15
Deposit 323,299,588.22 332,892,760.85
Government Subsidy 15,000,000.00 15,000,000.00
Social security withholding 1,508,838.35 1,823,102.07
Engineering fund 0.00 55,246,500.11
Stock right fund 195,500,000.00 252,444,235.97
Restricted stock repurchase obligations 4,422,320.00 4,422,320.00
Other 17,327,128.99 22,109,862.88
Total 1,801,519,889.12 1,887,520,891.88
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(2) Other payables with large amount and aging of over one year
42. Divided into liability held for sale
43.Non-current liabilities due within 1 year
In RMB
Items Balance in year-end Balance in year-begin
Long-term loans due within 1 year 3,298,395,973.96 4,196,242,686.59
Long-term Account payable due within 1
1,041,049,457.67 801,679,583.06
year
Deferred income due within 1 year 34,290,762.19 47,686,486.80
Total 4,373,736,193.82 5,045,608,756.45
Other notes：
Note 1: Non-current liabilities due within one year was decreased at the end of the period, The main reason is the
decrease in borrowings due within one year.
Note 2: long-term loans due within one year could be referred to Note VII,45.
Note 3: long-term account receivable due within one year could be referred to Note VII,47.
Note 4: Deferred income due within one year could be referred to Note VII,51.
44.Other current liabilities
In RMB
Items Closing balance Opening balance
USD exchange 66,166,000.00 65,342,000.00
For resale tax 93,819,427.25 79,012,267.85
Financing 82,800,911.12
Total 159,985,427.25 227,155,178.97
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
Pledge loans 450,000,000.00 950,000,000.00
Mortgage loans 3,619,711,596.66 4,096,235,604.06
Guarantee loans 3,052,216,666.62 4,359,733,333.30
Less ：Long-term loan due 1 year -3,298,395,973.96 -4,196,242,686.59
154
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Total 3,823,532,289.32 5,209,726,250.77
Notes：
Notes 1：At the end of the period, the Company has no long-term borrowings that have not yet been repaid.
Notes 2：The Guarantee of RMB 3,052,216,666.62 is both the mortgage loan and the guarantee loan, reclassified
into the non-current liabilities due within one year RMB 2,253,216,666.62.
（1）RMB 1,414,650,000.00 borrowings to provide the joint guarantee,, of which RMB 1,299,650,000.00
was reclassified to non-current liabilities due within one year; Tunghsu Group Co., Ltd and Li Zhaoting provided the
joint and several guarantee for the company's borrowings of RMB740,666,666.62, of which RMB 644,666,666.62
was reclassified to non-current liabilities due within one year; Tunghsu Group Co., Ltd provided the joint and several
guarantee for the company's borrowings of RMB194,000,000.00, of which of 194,000,000.00 was reclassified to
non-current liabilities due within one year; Tunghsu Group Co., Ltd, Tunghsu Optoelectronics Investment Co., Ltd and
Li Zhaoting provided the guarantee for the Company.
（2）Tunghsu Group Co., Ltd and Tunghsu Optoelectronic Technology Co., Ltd provided the joint and several
guarantee for RMB 100,000,000.00 for Fuzhou Tunghsu Optoelectronic Technology Co., Ltd; Provide joint guarantees,
which are reclassified to non-current liabilities of RMB 100,000,000.00 due within one year.。Nippon Electric Glass Co.,
Ltd provided the joint and several guarantee for the sub-subsidiary Fuzhou Tunghsu Optoelectronic Technology Co.,
Ltd’s borrowings of RMB 188,000,000.00.
（3）Meishan Shengtong Financing Guarantee Co., Ltd provided the joint and several guarantee for Daosui Group
Engineering Co., Ltd’s borrowings of RMB 14,900,000.00, of which RMB 14,900,000.00 was reclassified to
non-current liabilities due within one year;
Notes 3: The mortgage borrowings of RMB 3,619,711,596.66 were both mortgage borrowings and guarantee
borrowings, of which RMB1,045,179,307.34 was reclassified to non-current liabilities due within one year.
Thereinto: (1)For the borrowings of RMB584,699,600.00, RMB213,233,200.00 was reclassified to non-current
liabilities due within one year, and the collateral and the guarantor: a: The guarantor Tunghsu Group Co., Ltd provided
the joint and several guarantee for the borrowings equivalent to RMB 450 million under this item and the interest,
penalties, compound interest, compensation, liquidated damages, damages, and expense of realization of creditor's
rights arising from that amount to the lender; b: the assessment value of the collateral-the above-ground buildings and
the equipment(including the 4 precious metal lines of platinum channel) were RMB1,055,713,019.27.
（2）For the loan of 455,000,000.00 yuan, 35,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the mortgage and pledge guarantee of the loan: a. the property of YFQZYZ No. F
20150301716 , YFQZYZ No. F 20150301767 , YFQZYZ No. F20150301734, YFQZYZ No. F20150301760,
YFQZYZ No. F20150301711, YFQZYZ No. F20150301725, YFQZYZ No. F20150301769 and YFQZYZ No.
F20150301747 of Tunghsu (Yingko) optoelectronic Technology Co., Ltd. are used as collateral; b. Tunghsu
Group Co., Ltd. provides 40,000,000 shares pledge joint and several guarantee for Tunghsu (Yingko)
optoelectronic Technology Co., Ltd.
（3）For the borrowings of 525,000,000.00 yuan, 375,000,000.00 yuan was reclassified to non-current liabilities
due within one year, and the collateral and the guarantor: a: The mortgagor Shijiazhuang Xuxin Optoelectronic
Technology Co., Ltd used the can-be-mortgaged assets formed by the project including the land use right, buildings and
machinery and equipment (including three precious metal lines of platinum channel) for providing the mortgage
guarantee; b: Tunghsu Group Co., Ltd, Li Zhaoting and Li Qing provide the guarantee.
（4）For the loan of 1,312,500,000.00 yuan, 375,000,000.00 yuan will be reclassified into non-current
155
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
liabilities due within one year, the collateral and guarantor of the loan are: a. eight precious metal platinum
channel assets owned by Wuhu Tunghsu optoelectronic Technology Co., Ltd. are used to provide mortgage
guarantee; b. the company provides joint and several liability guarantee for the subsidiary company of Wuhu
Tunghsu optoelectronic Technology Co., Ltd.
（5）For the loan of 272,000,000.00 yuan, 136,000,000.00 yuan will be reclassified into non-current
liabilities due within one year, the collateral and guarantor of the loan are: a. Wuhu Tunghsu optoelectronic
Technology Co., Ltd. will provide mortgage guarantee through mortgaging 202 mu of state-owned land use rights,
the factory building after the completion of the project and 2 precious metal platinum channels; b. the guarantor of
the loan is Wuhu Construction Investment Co., Ltd.
（6）For the loan of 370,000,000.00 yuan, 80,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: a. WK(G)GY 2013 No. 020, WK(G)GY 2013 No.
021, WK(G)GY 2014 No. 008 land use right mortgage owned by Wuhu Tunghsu Photoelectricity Equipment
Technology Co., Ltd. and fixed assets after the completion of the project; b. the company provides joint and
several liability guarantee for its subsidiary of Wuhu Tunghsu Photoelectricity Equipment Technology Co., Ltd.
（7）For the loan of 50,275,333.28 yuan, 5,801,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: the joint and several liability guarantee is
provided by Zeng Jiankai and his spouse zhong Yuhua, and the collateral is the housing mortgage provided by
Shenzhen Xinyingtong Technology Co., Ltd.
（8）For the loan of 266,663.38 yuan, 175,107.34 yuan will be reclassified into non-current liabilities due
within one year, the collateral and guarantor of the loan are: Zeng Jiankai provides joint and several liability
guarantees, and provides vehicles worth 729,238.00 yuan as collateral.
（9）For the loan of 30,000,000.00 yuan, 30,000,000.00 yuan will be reclassified into non-current liabilities
due within one year, the collateral and guarantor of the loan are: a. the mortgaged property is property worth
16,000,000 yuan of Yongfangquanzheng Zi No. 02674664.b. Gui (2015) Nanning Real Estate Right No. 0000039
Land Certificate which worth 20,000,000; c. Ye Jianhui and Yang Xiangyang provide joint and several liability
guarantee.
（10）For the loan of 19,970,000.00 yuan, 19,970,000.00 yuan will be reclassified into non-current liabilities
due within one year, the mortgage loan is both a mortgage loan and a guarantee loan. The guarantors are Yang
Jianzhong and Hong Shuping, and the collateral is Yu (2016) Hechuan District Real Estate Right No. 000587685
real estate of Chongqing Haolong Platinum Industrial Co., Ltd.
Notes4：the pledged loan of 450,000,000.00 yuan is both the pledged loan and the guaranteed loan, and 0.00 yuan
is reclassified into the non-current debt due within one year. The Pledged and guarantor of the loan are: a. the
collateral is the 5 million circulating shares of Tunghsu Photoelectricity Technology Co., Ltd. held by Tunghsu
Group Co., Ltd. and the corresponding equity of 178,750,000.00 yuan of pain-in capital contributed by Tunghsu
Intelligent Technology Co., Ltd. held by Tunghsu Group Co., Ltd.; b. Tunghsu Group Co., Ltd. and Li Zhaoting
will provide the guarantee.
Other notes including interest rate range:
Notes 5.Rate of annual long-term borrowing is generally ranged from 3.68%--8.17%.
156
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
46.Bond payable
（1）Bond payable
In RMB
Items Balance in year-end Balance in year-begin
15 Tunghsu bonds 950,657,303.79 993,310,440.39
Mid-term note I 2,984,051,742.33 2,981,914,109.61
Mid -term note II 1,691,108,327.11 1,689,901,540.52
Total 5,625,817,373.23 5,665,126,090.52
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual
capital securities that classify as financial liability
In RMB
15
1,000,00 2015.5.1 1,000,00 993,310, 60,000,0 1,304,16 43,957,3 950,657,
Tunghsu 5 years
0,000.00 9 0,000.00 440.39 00.00 3.40 00.00 303.79
bonds
Mid-ter 3,000,00 2016.11. 3,000,00 2,981,91 2,137,63 2,984,05
5 years
m note I 0,000.00 17 0,000.00 4,109.61 2.72 1,742.33
Mid
1,700,00 2016.12. 1,700,00 1,689,90 1,206,78 1,691,10
-term 5 years
0,000.00 02 0,000.00 1,540.52 6.59 8,327.11
note II
5,700,00 5,665,12 60,000,0 4,648,58 43,957,3 5,625,81
Total -- -- --
0,000.00 6,090.52 00.00 2.71 00.00 7,373.23
(3) Note to conditions and time of share transfer of convertible bonds
（4）Other financial instruments that are classified as financial liabilities
The issuance of preferred stock and other financial instruments such as perpetual debt
Table of changes in financial instruments such as preferred stock and perpetual debt
Other notes
Notes 1: On September 8, 2016, the 8th board of directors meeting of the company examined and approved the
company’s application for registration of the medium-term notes issued no more than RMB 4.7 billion. The
accepting institution was National Association of Financial Market Institutional Investors. On September 26, 2016,
the extraordinary shareholders' general meeting adopted the bill on the registration and issuance of medium-term
notes. RMB 4.7 billion medium-term notes was divided into 2 phases in 2016. Among them: total amount of the
first phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 3 billion. Total amount of the
second phase of the medium-term notes varieties (3 + 2) and five-year notes was RMB 1.7 billion.
Notes 2:On May 19, 2015, the “15 Tunghsu Debt” with a total amount of RMB 1 billion was issued. In May 2018,
157
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
the resale amount was RMB 43,957,300.00, and the coupon rate was adjusted from 6.00% to 6.80%.
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Long-term payable 4,800,919,822.81 4,935,555,693.56
Less：Unconfirmed financing costs 783,029,636.38 857,567,856.06
Less：Port due Within 1 year 1,041,049,457.67 801,679,583.06
Total 2,976,840,728.76 3,276,308,254.44
Other notes：
Name of lessor Initial amount Increase in the period Repayment amount Closing balance
Beijing Cultural Technology
Finance Leasing Co., Ltd. 167,086,894.20 55,695,631.40 111,391,262.80
Beijing Guozi Finance Leasing
Co., Ltd. 202,205,984.26 28,886,569.18 173,319,415.08
Haitong Hengxin International
Leasing Co., Ltd. 287,692,310.00 57,538,462.00 230,153,848.00
Ligen Finance
Leasing(Shanghai) Co., Ltd. 54,449,784.17 18,149,928.04 36,299,856.13
Jiangsu Runxing Finance
Leasing Co., ltd. 224,000,000.00 8,000,000.00 216,000,000.00
Lujin Shenhua Finance Leasing
（Shanghai） Co., Ltd. 137,134,391.04 17,141,798.88 119,992,592.16
Xian Runyin Finance Leasing
Co., Ltd. 597,659,736.26 57,517,019.88 540,142,716.38
Dongyin Finance leasing
(Tianjing)Co., Ltd. 83,196,130.50 27,732,043.50 55,464,087.00
Chengdu Huaming Finance
leasing Co., Ltd 1,087,051,918.75 1,087,051,918.75
Chengyu Finance Leasing Co.,
Ltd. 59,056,693.20 13,174,635.21 45,882,057.99
Sichuan Tianfu Finance
Leasing Co., Ltd. 52,857,785.54 5,682,233.61 47,175,551.93
Hebei Finance Leasing Co., ltd.
30,492,852.61 15,160,194.28 15,332,658.33
Wanjiang Finance Leasing Co.,
Ltd. 1,168,483,194.45 25,785,833.33 1,142,697,361.12
Huayun Finance Leasing Co.,
Ltd. 234,847,209.70 26,284,719.96 208,562,489.74
158
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Hubei Finance Leasing Co.,
Ltd. 331,846,944.60 55,307,824.10 276,539,120.50
Hengqin Jintou International
Finance Leasing Co., Ltd. 217,493,864.28 36,248,977.38 181,244,886.90
Shandong Expressway Global
Financing Leasing Co., Ltd. 313,670,000.00 313,670,000.00
Total
4,935,555,693.56 313,670,000.00 448,305,870.75 4,800,919,822.81
Notes: Tunghsu Group Co., Ltd. offered a guarantee of Financing Leasing at RMB 1,056,813,432.82 ,
Tunghsu Group Co., Ltd, Li Zhaoting offered a guarantee of Financing Leasing at RMB 208,471,400.97. Tunghsu
Group Co., Ltd, Li Zhaoting and Li Qing offered a guarantee of Financing Leasing at RMB 802,200,013.06.
The company offered a guarantee of Financing Leasing at RMB 723,000,000.00.
48. Long-term employee salary payable
（1）Long-term employee salary payable
(2) Changes of defined benefit plans
49. Specific payable
50. Estimates liabilities
In RMB
Items Balance in year-end Balance in year-begin Rreason
Lispendens 32,515,694.09 38,543,627.93
Product guarantee 80,746,536.90 117,878,085.38
Total 113,262,230.99 156,421,713.31 --
51.Deferred income
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 601,213,644.42 10,500,000.00 22,295,047.03 589,418,597.39
Less ：Government
subsidies due within -36,478,840.45 2,824,600.01 636,521.72 -34,290,762.16
one year
Not realized after
38,763,460.00 38,763,460.00
sale rental return
Less：Unrealized
-11,207,646.55 11,207,646.55
customer service due
159
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
within 1 year rent to
profit or loss
Total 592,290,617.42 24,532,246.56 61,695,028.75 555,127,835.23 --
Details of government subsidies
In RMB
Amount Other income Amount of
New subsidy Asset-related
Beginning of transferred to recorded in cost deducted Other
Items in current End of term orincome-rel
term non-operatio the current in the current changes
period ated
nal income period period
Grant of
25,438,800.0 24,316,500.0 Related to
Government 1,122,300.00
0 0 assets
Infrastructure
Grant of
Industry
Revitalizatio
Related to
n and 2,644,444.61 116,666.64 2,527,777.97
assets
Technology
Reconstructio
n Project
Grant of
Glass-tube
Related to
Secondary 0.00
assets
Environment
al Protection
Technical
Related to
reconstructio 2,666,666.65 133,333.34 2,533,333.31
assets
n
Grant of
Glass Related to
9,999,999.94 500,000.00 9,499,999.94
Substrate assets
Project
Industry
Related to
Development 4,666,666.65 233,333.34 4,433,333.31
assets
Fund
Project
Related to
finance 313,333.37 15,666.66 297,666.71
assets
discount
Grant of
71,668,666.7 68,411,000.0 Related to
Industry 3,257,666.66
1 5 assets
Revitalizatio
160
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
n and
Technology
Reconstructio
n Project
2013
Provincial
strategic
Related to
emerging 4,250,000.04 166,666.66 4,083,333.38
assets
industries of
special grant
funds
Technology
reconstructi 28,822,333.3 27,744,333.3 Related to
1,078,000.00
on Special 2 2 assets
funds
Investment
and Subsidies
of “Double
Hundred
Plan” Project Related to
1,783,333.33 100,000.02 1,683,333.31
granted by assets
the People's
Government
of Henan
Province
TFT glass
substrate Related to
89,166.77 4,999.98 84,166.79
technology assets
R& D fund
TFT glass
substrate Related to
5,944,444.43 333,333.36 5,611,111.07
project assets
Subsidy
Investment
and Subsidies
within
Budget for
Related to
Technologica 8,322,222.23 466,666.68 7,855,555.55
assets
l
Transformati
on Project by
National
161
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Development
and Reform
Commission
and the
Ministry of
Industry and
Information
Technology
TFT glass
substrate 11,888,888.9 11,222,222.2 Related to
666,666.66
project 1 5 assets
Subsidy
Subsidy
Major
Scientific and
Technical
Related to
Projects by 594,444.43 33,333.36 561,111.07
assets
Finance
Bureau of
Zhengzhou
City
Financial
Supports for
National Key
Industry and
Technical
Transformati Related to
8,322,222.23 466,666.68 7,855,555.55
on on assets
Projects
Granted by
the Municipal
Finance
Bureau
Financial
Supports for
National Key
Industry and
Technical Related to
4,161,111.10 233,333.34 3,927,777.76
Transformati assets
on on
Projects
Granted by
the Municipal
162
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Finance
Bureau
Funds for
Independent
Innovation of Related to
3,566,666.71 199,999.98 3,366,666.73
Provincially assets
Supported
Enterprises
Supporting
Funds on Related to
1,188,888.91 66,666.66 1,122,222.25
Finance assets
Discounts
Funds for
Education,
Science and
Related to
Culture 891,666.71 49,999.98 841,666.73
assets
Granted by
the Finance
Bureau
Supporting
Funds for
Industrial
Structure
-adjusting Related to
1,742,222.16 93,333.36 1,648,888.80
Projects assets
Granted by
the Regional
Finance
Bureau
Industry
Related to
discount and 1,004,444.42 53,333.34 951,111.08
assets
expenses
Financial Related to
3,194,444.50 166,666.68 3,027,777.82
discount assets
Industrial
restructuring
Related to
project 3,493,333.29 160,000.02 3,333,333.27
assets
financial
funds
Special
Related to
Funds for 3,861,111.09 166,666.68 3,694,444.41
assets
High-end
163
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Information
Industry
Chain
Granted by
the Finance
Bureau of the
Economic
and
Technologica
ll
Development
Zone
2015 project
equipment 29,981,766.6 28,835,966.0 Related to
1,145,800.56
investment 0 4 assets
subsidies
Zhengzhou C
ity Finance B
ureau in 2011
and 2012 has
been the acc
eptance of th Related to
2,412,222.08 86,666.64 2,325,555.44
e provincial i assets
ndustrial stru
cture adjustm
ent project th
e second batc
h of funds
Strategic
emerging
25,500,000.0 24,500,000.0 Related to
industry 1,000,000.00
0 0 assets
Development
project funds
High-tech
Zone
Related to
appropriated 5,866,666.65 213,333.34 5,653,333.31
assets
substrate
project
The
production
19,241,899.3 18,488,427.6 Related to
line of 753,471.70
7 7 assets
incentive
funds
164
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Special funds
for 2015
scientific and
Related to
technological 6,158,080.51 301,701.96 5,856,378.55
assets
achievements
transform
project
G8.5tft-lcd
glass
substrate
manufacturin
g precision 45,000,000.0 45,000,000.0 Related to
intelligent 0 0 assets
digital
workshop
construction
project
Investment in
the Central
Budget of Related to
3,933,333.41 399,999.96 3,533,333.45
Strategic assets
emerging
Industries
2011Key
technical
Related to
transformatio 491,666.70 49,999.98 441,666.72
assets
n project
funds
2011Strategic
emerging
Related to
industry 565,416.70 57,499.98 507,916.72
assets
development
funds
2012Electron
ic
Information
Related to
Industry 983,333.30 100,000.02 883,333.28
assets
Development
Assistance
Project
Subsidies Related to
9,399,999.99 400,000.02 8,999,999.97
from the assets
165
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Bureau of
Finance of
the Economic
and
technological
Development
Zone
2013Strategic
emerging Related to
392,777.78 23,333.34 369,444.44
industry assets
funds
Mianyang
Municipal
Related to
Bureau of 236,666.66 236,666.66
assets
Finance
Special funds
Glass
substrate
finishing Related to
548,333.33 548,333.33
production assets
Transformati
on Project
Special fund
subsidy for
industrial
Related to
development 433,888.86 16,666.68 417,222.18
assets
of municipal
financial
bureau
2013 fund of
Related to
strategic new 3,944,444.44 28,333.38 3,916,111.06
assets
industry
2014
Provincial
Related to
funds for 0.00
assets
Science and
Technology
Sichuan
Province
18,608,333.3 17,716,666.6 Related to
Industrial 891,666.66
5 9 assets
Transformati
on and
166
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
upgrading
Project 2015
Special funds
for Industrial 39,852,753.5 38,251,660.9 Related to
1,601,092.62
Development 4 2 assets
in 2016
Technical
Reformation
of key Green
Related to
Technology 8,400,000.00 8,400,000.00
assets
for Glass
substrate
（840）
Intelligent
manufacturin
g pilot
Related to
demonstratio 1,000,000.00 1,000,000.00
assets
n project
subsidy fund
（100）
Group
transfer
subsidy
(National key
R&D
Program, key
basic Related d to
915,400.00 915,400.00
Materials income
Technology
Promotion
and
industrializati
on Project,
2016)
Intelligent
Manufacturin
Related to
g New Mode 3,990,000.00 3,990,000.00
assets
Engineering
Project
Annual
Related to
production of 4,700,000.00 4,700,000.00
assets
10 million
167
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
square meters
high
aluminum
ultra-thin
display panel
glass items
2017 funds
for
technological
Transformati 30,000,000.0 30,000,000.0 Related to
on of 0 0 assets
Electronic
Information
Industry
Subsidy fund
for technical
transformatio
Related to
n of 2,580,000.00 2,580,000.00
assets
industrial
enterprises in
Fuzhou
Technical
Transformati
on of
Industrial
Enterprises in Related to
1,290,000.00 1,290,000.00
Fuzhou and assets
supporting
subsidy funds
in Fuqing
City
The
Development
Bureau of
Economic
and Trade
Development 13,417,100.0 12,969,863.3 Related to
447,236.64
of Wuhu 0 6 assets
Economic
and
technological
Development
Zone in 2017
168
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
"Triple
creation"
high-end
equipment
and new
material
Tunghsu
group limited
Related to
transfer to 150,400.00 150,400.00
assets
project five
funds
China
National
Building
Material
International
Engineering Related to
496,000.00 496,000.00
Group Co., assets
Ltd.
transferred
funds for
11-625
projects
Bengbu
Glass
Industry
Design and
Research
Institute Co.,
Related to
Ltd., China 521,000.00 521,000.00
assets
Building
Materials
Co., Ltd.,
transferred to
indirect funds
(subject 4)
Factory
building
Related to
construction 854,475.22 15,349.86 839,125.36
assets
award
877,500
Special fund Related to
114,399.00 114,399.00
for assets
169
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
automobile
development
Project
subsidy from
the Bureau of
Related to
Finance of 6,966,547.39 294,478.50 6,672,068.89
assets
the Economic
Development
Zone
National key
R&D
Program key
basic Related d to
2,280,000.00 2,280,000.00
Materials income
Technical
Project
subsidy
Financial
subsidy for
the major
scientific and
technological
achievements
Related to
transformatio 1,000,000.00 1,000,000.00
assets
n project of
"High
Aluminium
cover Glass
complete
Technology"
017 Special
Fund for
Industrial
Related to
Development 5,000,000.00 72,463.76 4,927,536.24
assets
in Economic
Development
Zone
Key new
Related to
product 160,000.04 19,999.98 140,000.06
assets
projects
Financial Related to
3,366,000.00 153,000.00 3,213,000.00
allocation for assets
170
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Strategic
emerging
Industries in
Sichuan
Provinc
Technical
revamping
items of
300,000 Related to
644,999.92 43,000.02 601,999.90
production assets
Line of
Pole-less
Lights Ballast
Intelligent
Engineering
Laboratory of
Related to
High 1,783,333.29 100,000.02 1,683,333.27
assets
efficiency
Lighting
system
Research and
development Related d to
2,226,000.00 2,226,000.00
project funds income
159
District level
technical
Related d to
reform 1,500,000.00 1,500,000.00
income
project
subsidy 150
17 year loan
Related d to
discount 1,127,484.71 910,455.00 217,029.71
income
4.871 million
Science and
Related d to
education 1,787,595.41 1,787,595.41
income
support fund
Subsidies for
Related d to
fuel cell 4,000,000.00 4,000,000.00
income
projects
Loan Related d to
0.00
discount income
Special funds
400,000.00 400,000.00 Related d to
for scientific
171
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
research 40 income
Glass
substrate 86,971,803.6 86,313,607.3 Related d to
658,196.34
project 6 3 income
subsidy fund
601,213,644. 10,500,000.0 21,384,592.0 589,418,597.
Total 910,455.00 --
42 0 4 39
52.Other Non-current liabilities
In RMB
Items Balance in year-end Balance in year-begin
CDB financing 608,000,000.00 608,000,000.00
Total 608,000,000.00 608,000,000.00
Other notes：
Notes：According to the investment contract signed by Tunghsu Optoelectronic Technology Co., Ltd, Wuhu
Tunghsu optoelectronic Technology Co., Ltd., Fuzhou Tunghsu Investment Development Co., Ltd and China
Development Fund Co., Ltd, China Development Fund Co., Ltd increased the capital of RMB 500,000,000.00 to
Fuzhou Tunghsu Investment Development Co., Ltd, annually enjoying a fix rate of return. After the project is
completed, Tunghsu Optoelectronic Technology Co., Ltd shall make the installment redemption to the stake held
by China Development Fund Co., Ltd.
According to Tunghsu Optoelectronic Technology Co., Ltd., after the completion of the project,Yingkou Coastal
Development Construction Group Co., Ltd.and China Development Fund Co., Ltd, China Development Fund Co.,
Ltd increased the capital of RMB 108,000,000.00 to Tunghsu (Yingkou)OptoelectronicDisplay Co., Ltd., annually
enjoying a fix rate of return. After the project is completed, Tunghsu Optoelectronic Technology Co., Ltd shall
make the installment redemption to the stake held by China Development Fund Co., Ltd.
53.Stock capital
In RMB
Increase/decrease this time (+ , - )
Balance Balance
Issuing of new Transferred
Year-beginning Bonus shares Other Subtotal year-end
share from reserves
5,730,250,118. 5,730,250,118.
Capital share
00 00
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
172
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 21,760,882,845.16 270,364.11 21,760,612,481.05
Other capital reserves 226,522,375.26 1,592,850.23 195,000,000.00 33,115,225.49
Total 21,987,405,220.42 1,592,850.23 195,270,364.11 21,793,727,706.54
Other exlanation, including changes and reasons for changes：
The parent company acquired Tunghsu (Yingkou) Optoelectronic Display Co., Ltd. at the end of June 2018,
which belongs to the merger of enterprises under the same control. According to the regulations of the standards,
it needs to carry out retroactive adjustment of the previous data, and other retroactive adjustment of capital reserve
at the beginning of the period will increase by 195 million yuan. The capital premium (equity premium) is the
result of the merger of Tunghsu (Yingkou) in the current period. The increase of other capital reserves in this
period is the increase of other capital reserves caused by the disposal of subsidiary Xuyou (Wuxi) company in this
period. The decrease of other capital reserves is the adjustment of capital reserves caused by the merger of
Tunghsu (Yingkou).
56.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
The obligation to
repurchase equity 4,422,320.00 4,422,320.00
incentive
Total 4,422,320.00 4,422,320.00
57. Other comprehensive income
In RMB
Amount of current period
Less：
Amount for Previously rec After - tax a After - tax a
Year-beginni Year-end
Items the period ognized in pro Less： ttributable t ttributable t
ng balance balance
before inco fit or loss in ot Income tax o the parent o minority s
me tax her comprehen company hareholders
sive income
173
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2.Other comprehensive income
reclassifiable to profit or loss in -4,518.45 16,582.62 2,487.39 7,752.38 6,342.85 3,233.93
subsequent periods
Balance form the translation of
-4,518.45 16,582.62 2,487.39 7,752.38 6,342.85 3,233.93
foreign currency financial statements
Total of Other comprehensive income -4,518.45 16,582.62 2,487.39 7,752.38 6,342.85 3,233.93
58. Special reserves
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Safety production cost 1,983,921.21 6,552.46 1,990,473.67
Total 1,983,921.21 6,552.46 1,990,473.67
59. Surplus reserve
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 224,133,824.86 224,133,824.86
Total 224,133,824.86 224,133,824.86
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
3,010,372,296.37 1,823,695,278.31
beginning
Total adjustment of retained earnings at the
-157,612,768.10
beginning of the year
Retained earnings after adjustments at the year
3,010,372,296.37 1,666,082,510.21
end
Add: Net profit attributable to owners of the
858,296,089.08 1,733,201,682.30
Company for the period
Less: Appropriation to statutory surplus reserve -36,089,754.38
Common stock dividend payable 401,117,508.27 352,822,141.76
Common stock dividends converted to shares 3,467,550,877.18 3,010,372,296.37
174
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
61. Business income, Business cost
（1）Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 9,999,123,145.77 8,447,438,316.36 4,868,274,147.73 3,472,556,236.95
Other business 1,130,728,645.11 574,551,580.73 8,164,456.37 1,406,573.27
Total 11,129,851,790.88 9,021,989,897.09 4,876,438,604.10 3,473,962,810.22
62. Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 13,771,482.99 15,039,190.71
Education surcharge 10,156,508.49 10,925,884.41
Property tax 6,512,792.08 6,283,183.73
Land use tax 10,858,460.78 9,674,304.80
vehicle and vessel usage tax 39,819.43 10,822.44
Stamp tax 4,395,608.94 6,119,241.19
Land VAT 140,193,026.84
Environmental protection Tax 168,421.15
Other 876,060.45
Total 186,096,120.70 48,928,687.73
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
175
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Wage and welfare insurance 32,420,959.74 9,574,777.77
Shipment 25,834,245.26 18,933,927.82
Travel 7,538,832.95 1,598,038.88
Business expenses 8,817,205.59 1,896,338.87
Office fee 3,923,420.20 410,144.17
Consumables and repairs 562,745.82 283,143.75
Depreciation 730,676.07 266,676.23
Advertising 963,064.93 874,528.43
Consultancy services 6,399,309.05 5,103,982.43
\Technology Services 3,967,469.34
Other 2,734,763.47 3,514,694.22
Total 93,892,692.42 42,456,252.57
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wages and benefits 141,992,567.21 83,952,482.53
Business expenses 7,359,258.97 1,993,042.89
Labor protect fee 1,128,621.91 1,218,523.31
Office fees 6,110,342.22 4,516,755.75
Travel fees 8,120,703.11 3,055,829.14
Publicize Fees 3,787,328.88 2,256,407.59
Miscellaneous charges 7,514,986.97 1,855,091.84
Depreciation accumulative 39,025,365.01 28,206,344.83
Low value consumables and repair costs 3,471,887.09 1,292,268.34
Test expenses 125,698,218.19 62,869,570.14
Consultation fees 21,680,834.70 12,630,531.96
Rent, water, electricity and property
17,785,438.11 8,564,803.02
charges
Communication expenses 674,807.32 206,798.13
Equity incentive cost 796,800.00
Other 5,627,343.07 15,963,423.86
Total 389,977,702.76 229,378,673.33
176
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
65. Financial expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 595,740,917.45 572,259,300.47
Less：Interest income 198,162,232.24 196,711,767.79
Net interest expenses 397,578,685.21 375,547,532.68
Exchange gains and losses -11,686,449.38 -12,691,241.36
Financial institution 2,132,029.71 1,966,716.26
Note discount rate 4,213,453.93 0.00
Financing 2,829,302.85 3,353,312.92
Other 160,093.98 15,607.13
Total 395,227,116.30 368,191,927.63
Other notes：
66. Asset impairment loss
In RMB
Items Amount of current period Amount of previous period
I. Bad debt loss -5,903,665.15 -703,581.80
II.Losses for falling price of inventory 6,962,254.46 205,619.77
Total 1,058,589.31 -497,962.03
67. Gains from changes in fair value
68. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by equity
11,836,624.48 -15,506,492.83
method
Disposal of investment income from long-term
-2,053,558.36
equity investments
Financing income 13,923,452.07 22,183,417.04
Total 23,706,518.19 6,676,924.21
69. Assets disposal income
In RMB
177
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Source Amount of current period Amount of previous period
Non-current assets disposal gains and
-664,826.45
losses
70.Other income
In RMB
Source Amount of current period Amount of previous period
Government Subsidy 108,362,056.52 86,680,000.00
71. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Debt restructuring gains 484,207.00 484,207.00
Government Subsidy 320,000.00 69,887,507.52 320,000.00
Other 95,955.07 95,955.07
Other Non-Operation income 5,045,734.86 621,007.17 5,045,734.86
Total 5,945,896.93 70,508,514.69 5,945,896.93
(1)Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whhether Amount of Amount of Assets-relate
Subsidy Issuing subsidies on
Issuing body Nature special current previous d/income
items reason the current
subsidies period period –related
profit and
loss
Grants
obtained due
to
Special funds conforming
for the use of Fuqing City to the local
Subsidy Related to
foreign Finance supporting Yes No 300,000.00
income
capital in Bureau policies such
2017 as local
government’s
investment
attraction
178
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
policy
Grants
obtained due
to
conforming
to the local
Huzhou
Listing Subsidy supporting Related to
Finance Yes No 20,000.00
subsidy policies such income
Bureau
as local
government’s
investment
attraction
policy
A subsidy
obtained due
to
undertaking
the state’s
2015
safeguarding
Depreciation
Provincial for protection
of equipment
Science and Subsidy for a certain Related to
for provincial No No 301,701.96
Technology utility or income
achievements
Bureau socially
transformatio
necessary
n project
product
supply or
price control
function.
A subsidy
obtained due
to
undertaking
1.24 Youfang
the state’s
government
safeguarding
Zhenjiang Yangzhong
Subsidy for protection Related to
Jinshan City Finance No No 600,000.00
for a certain income
talents Bureau
utility or
scheme
socially
funding
necessary
product
supply or
price control
179
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
function.
Grants
obtained due
Zhenjiang
to research
Science and
3.14 The 5th and
Technology
Zhenjiang Subsidy development, Related to
Bureau, No No 20,000.00
Excellent technical income
Zhenjiang
Patent Award renovation
Finance
and
Bureau
transformatio
n, etc.
Grants
obtained due
to research
3.24 and
Science and
Technology Subsidy development, Related to
Technology No No 15,000.00
Innovation technical income
Bureau,
Award. renovation
and
transformatio
n, etc.
Grants
obtained due
Investment
to the country
and Subsidies
encourage
of “Double
and support
Hundred Henan Office
specific
Plan” Project of industry Subsidy Related to
industries No No 100,000.02
granted by and assets
(Obtained in
the People's information
accordance
Government
with the
of Henan
national
Province
policies and
regulations)
Grants
obtained due
TFT glass Zhengzho u to the country
substrate Science & Subsidy encourage Related to
No No 4,999.98
technology Technology and support assets
R& D fund Bureau specific
industries
(Obtained in
180
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
accordance
with the
national
policies and
regulations)
Grants
obtained due
to the country
encourage
and support
TFT glass Zhengzho u
specific
substrate Municipal Subsidy Related to
industries No No 333,333.36
project Finance assets
(Obtained in
Subsidy Bureau
accordance
with the
national
policies and
regulations)
Investment
and Subsidies
within Grants
Budget for obtained due
Technologica to the country
l encourage
Transformati and support
National
on Project by specific
Development Subsidy Related to
National industries No No 466,666.68
& Reform assets
Development (Obtained in
Commission
and Reform accordance
Commission with the
and the national
Ministry of policies and
Industry and regulations)
Information
Technology
Grants
obtained due
TFT glass Zhengzhou to the country
substrate Municipal Subsidy encourage Related to
No No 666,666.66
project Finance and support assets
Subsidy Bureau specific
industries
(Obtained in
181
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
accordance
with the
national
policies and
regulations)
Grants
obtained due
Special
to the country
Funds for
encourage
Major
and support
Scientific and
Zhengzho u specific
Technical Subsidy Related to
Technology industries No No 33,333.36
Projects by assets
Bureau (Obtained in
Finance
accordance
Bureau of
with the
Zhengzhou
national
City
policies and
regulations)
Grants
Financial obtained due
Supports for to the country
National Key Zhengzho u encourage
Industry and Economic and support
Technical and specific
Subsidy Related to
Transformati Technology industries No No 466,666.68
assets
on Projects Development (Obtained in
Granted by Zone Finance accordance
the Municipal Bureau with the
Finance national
Bureau policies and
regulations)
Financial Grants
Supports for obtained due
Industrial to the country
Development encourage
Granted by Zhengzhou and support
the Finance Municipal Subsidy specific Related to
No No 233,333.34
Bureau of the Finance industries assets
Economic Bureau (Obtained in
and accordance
Technologica with the
l national
Development policies and
182
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Zone regulations)
Grants
obtained due
to the country
encourage
Funds for
and support
Independent Henan
specific
Innovation of provincial Subsidy Related to
industries No No 199,999.98
Provincially finance assets
(Obtained in
Supported department
accordance
Enterprises
with the
national
policies and
regulations)
Grants
obtained due
to the country
encourage
and support
Supporting Henan
specific
Funds on provincial Subsidy Related to
industries No No 66,666.66
Finance finance assets
(Obtained in
Discounts department
accordance
with the
national
policies and
regulations)
Grants
obtained due
to the country
Funds for encourage
Education, and support
Zhengzho u
Science and specific
Municipal Subsidy Related to
Culture industries No No 49,999.98
Finance assets
Granted by (Obtained in
Bureau
the Finance accordance
Bureau with the
national
policies and
regulations)
Supporting Zhengzho u Grants
Subsidy Related to
Funds for Economic obtained due No No 93,333.36
assets
Industrial and to the country
183
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Structure Technology encourage
-adjusting Development and support
Projects Zone Finance specific
Granted by Bureau industries
the Regional (Obtained in
Finance accordance
Bureau with the
national
policies and
regulations)
Grants
obtained due
to the country
encourage
and support
Zhengzhou
Industry specific
Municipal Subsidy Related to
discount and industries No No 53,333.34
Finance assets
expenses (Obtained in
Bureau
accordance
with the
national
policies and
regulations)
Grants
obtained due
to the country
Financial
encourage
discount of
and support
Henan Department
specific
State-owned of Finance of Subsidy Related to
industries No No 166,666.68
assets Henan assets
(Obtained in
holding Province
accordance
Operation
with the
Co., Ltd.
national
policies and
regulations)
Zhengzhou Grants
2013
Economic obtained due
Industrial
and to the country
restructuring Subsidy Related to
Technology encourage No No 160,000.02
project assets
Development and support
financial
Zone Finance specific
funds
Bureau industries
184
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(Obtained in
accordance
with the
national
policies and
regulations)
Special Grants
Funds for obtained due
High-end to the country
Information encourage
Industry and support
Henan Office
Chain specific
of industry Subsidy Related to
Granted by industries No No 166,666.68
and assets
thFinance (Obtained in
information
Bureau of the accordance
Economic with the
and national
Technologica policies and
l Develop regulations)
Grants
obtained due
to the country
encourage
Zhengzho u
and support
2015 project Municipal
specific
equipment Commission Subsidy Related to
industries No No 1,145,800.02
investment of industry assets
(Obtained in
subsidies and
accordance
information
with the
national
policies and
regulations)
Zhengzhou Grants
City Finance Henan obtained due
Bureau in Provincial to the country
2011 and Department encourage
2012 has of Finance and support
Subsidy Related to
been the and specific No No 86,666.64
assets
acceptance of Zhengzhou industries
the provincial Municipal (Obtained in
industrial Bureau of accordance
structure Finance with the
adjustment national
185
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
project the policies and
second batch regulations)
of funds
Grants
obtained due
Zhengzhou to the country
Economic encourage
and and support
Director of
Technologica specific
the year Subsidy Related to
l industries No No 200,000.00
quality Award assets
Development (Obtained in
2016
Zone accordance
Management with the
Committee national
policies and
regulations)
Grants
obtained due
to the country
Henan encourage
College Provincial and support
graduate Department specific
Subsidy Related to
employment of Human industries No No 492,000.00
assets
apprenticeshi Resources (Obtained in
p subsidy and Social accordance
Security with the
national
policies and
regulations)
Grants
obtained due
to the country
Zhengzhou encourage
Municipal and support
Introducing
Bureau of specific
foreign Subsidy Related to
Human industries No No 50,000.00
intellectual assets
Resources (Obtained in
work funds
and Social accordance
Security with the
national
policies and
regulations)
The first National Award Grants Yes No 399,999.97 Related to
186
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
batch of Development obtained due assets
central and Reform to research
budgetary Commission and
investment in development,
strategic technical
emerging renovation
industry and
projects transformatio
n, etc.
Grants
obtained due
Mianyang
Mianyang to research
City's 2011
City and
key
Economic Subsidy development, Related to
technology Yes No 50,000.00
and technical assets
renovation
Information renovation
completion
Committee and
project funds
transformatio
n, etc.
Grants
obtained due
2011 to research
Suchuan
Strategic and
Economic
Industry Subsidy development, Related to
and Yes No 57,500.00
Development technical assets
Information
Promotion renovation
Committee
Fund and
transformatio
n, etc.
Ministry of Grants
Industry and obtained due
2012 Information to research
Electronic Technology and
Information Electronic Subsidy development, Related to
Yes No 100,000.02
Industry Information technical assets
Development Industry renovation
Fund Project Fund and
Management transformatio
Office n, etc.
Economic Economic Grants
and Development Subsidy obtained due Related to
Yes No 400,000.00
Technologica Zone to the country assets
l Government encourage
187
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Development and support
Zone Finance specific
Bureau industries
subsidy (Obtained in
accordance
with the
national
policies and
regulations)
Grants
obtained due
PDP glass
to research
substrate Provincial
and
finishing Economic
Subsidy development, Related to
technology and Yes No 23,333.33
technical assets
achievements Information
renovation
transformatio Committee
and
n project
transformatio
n, etc.
Grants
obtained due
The first to research
batch of Mianyang and
provincial Science and Subsidy development, Related to
Yes No 111,111.12
science and Technology technical assets
technology Bureau renovation
funds in 2014 and
transformatio
n, etc.
Grants
obtained due
2015 Sichuan
to research
Province
Ministry of and
Industrial
Industry and Subsidy development, Related to
Transformati Yes No 725,000.00
Information technical assets
on and
Technology renovation
upgrading
and
Project
transformatio
n, etc.
2013 Provincial Grants
Strategic Economic Subsidy obtained due Related to
Yes No 16,666.66
Emerging and to research assets
Industry Information and
188
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Funds Committee development,
Disbursed by technical
the Economic renovation
Development and
Zone transformatio
Government n, etc.
on behalf of
the Provincial
Department
of Finance
Grants
obtained due
Special funds to research
Provincial
funded by the and
Economic
Mianyang Subsidy development, Related to
and Yes No 10,000.00
Municipal technical assets
Information
Finance renovation
Committee
Bureau and
transformatio
n, etc.
Grants
obtained due
Special fund to research
Provincial
for industrial and
Economic
development Subsidy development, Related to
and Yes No 18,333.33
of the technical assets
Information
Finance renovation
Committee
Bureau and
transformatio
n, etc.
2013
Strategic
Grants
Emerging
obtained due
Industry
to research
Funds Provincial
and
Disbursed by Economic
Subsidy development, Related to
the Economic and Yes No 166,666.67
technical assets
Development Information
renovation
Zone Committee
and
Government
transformatio
on behalf of
n, etc.
the Provincial
Department
189
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
of Finance
Grants
obtained due
Economic to research
Development and
Zone 2016 Municipal Subsidy development, Related to
Yes No 980,113.64
Industrial government technical assets
Development renovation
Special Fund and
transformatio
n, etc.
Grants
Economic obtained due
and to research
Technologica Economic and
l Development Subsidy development, Related to
Yes No 294,478.53
Development Zone technical assets
Zone Finance Government renovation
Bureau and
subsidy transformatio
n, etc.
Production of
Grants
high-strength
obtained due
and ultra-thin
to research
aluminosilica
Mianyang and
te touch
Science and Award development, Related to
screen glass Yes No 150,000.00
Technology technical income
achievement
Bureau renovation
conversion
and
project based
transformatio
on float
n, etc.
process
Grants
obtained due
December of Mianyang to research
2016 Economic and
High-tech Development Award development, Related to
Yes No 100,000.00
enterprises Bureau technical income
recognize Finance renovation
subsidies Bureau and
transformatio
n, etc.
3D Provincial Award Grants Yes No 300,000.00 Related to
190
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
High-Permea Science and obtained due income
bility Super Technology to research
Ultra High Department and
Strength development,
Al-Si technical
(advanced) renovation
and
transformatio
n, etc.
Grants
obtained due
to the country
encourage
Finance and support
Bureau's Chenzhou specific
Subsidy Related to
subsidy to Finance industries Yes No 153,000.00
income
urban public Bureau (Obtained in
transport accordance
with the
national
policies and
regulations)
Grants
obtained due
to the country
encourage
and support
Provincial
Key new specific
Science and Subsidy Related to
product industries Yes No 19,999.98
Technology assets
projects (Obtained in
Departmen
accordance
with the
national
policies and
regulations)
Grants
Financial
obtained due
allocation for
Provincial to the country
Strategic
Development Subsidy encourage Related to
emerging Yes No 18,200.00
and Reform and support assets
Industries in
Commission specific
Sichuan
industries
Province
(Obtained in
191
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
accordance
with the
national
policies and
regulations)
Grants
obtained due
to the country
Technical
encourage
revamping
and support
items of
Provincial specific
300,000 Subsidy Related to
Economic industries Yes No 43,000.02
production assets
Commission (Obtained in
Line of
accordance
Pole-less
with the
Lights Ballast
national
policies and
regulations)
Grants
obtained due
to the country
Intelligent encourage
Engineering and support
Provincial
Laboratory of specific
Development Subsidy Related to
High industries Yes No 90,000.00
and Reform assets
efficiency (Obtained in
Commission
Lighting accordance
system with the
national
policies and
regulations)
Foreign trade
SMEs
Subsidy Related to
develop Yes No 28,000.00
income
market
subsidies
Grants
Shijiazhuang obtained due
Technical Developme to research
Subsidy Related to
reconstructio nt and and Yes No 133,333.34
assets
n Reform development,
Commission technical
renovation
192
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
and
transformatio
n, etc.
Grants
obtained due
to
conforming
Shijiazhuang
Grant of to the local
High-tech
Glass Subsidy supporting Related to
Zone Yes No 713,333.34
Substrate policies such assets
Management
Project as local
Committee
government’s
investment
attraction
policy
Grants
obtained due
to
conforming
Shijiazhuang
to the local
Industry High-tech
Subsidy supporting Related to
Development Zone Yes No 233,333.34
policies such assets
Fund Management
as local
Committee
government’s
investment
attraction
policy
Grants
obtained due
to research
and
Project Shijiazhuang
Subsidy development, Related to
finance Finance Yes No 15,666.66
technical assets
discount Bureau
renovation
and
transformatio
n, etc.
Grant of Grants
Industry obtained due
Shijiazhuang
Revitalizatio Subsidy to the country Related to
Finance Yes No 3,257,666.66
n and encourage assets
Bureau
Technology and support
Reconstructio specific
193
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
n Project industries
(Obtained in
accordance
with the
national
policies and
regulations)
Grants
obtained due
to
Provincial conforming
strategic Shijiazhuang to the local
emerging Development Subsidy supporting Related to
Yes No 166,666.66
industries of and Reform policies such assets
special grant Commission as local
funds government’s
investment
attraction
policy
Grants
obtained due
to research
Technology and
Shijiazhuang
reconstructi Subsidy development, Related to
Finance Yes No 1,078,000.00
on Special technical assets
Bureau
funds renovation
and
transformatio
n, etc.
Grants
obtained due
to
Provincial conforming
strategic Shijiazhuang to the local
emerging Development Subsidy supporting Related to
Yes No 1,000,000.00
industries of and Reform policies such assets
special grant Commission as local
funds government’s
investment
attraction
policy
Production Shijiazhuang Subsidy Grants Related to
Yes No 753,471.70
line reward High-tech obtained due assets
194
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
fund Zone to
conforming
to the local
supporting
policies such
as local
government’s
investment
attraction
policy
Grants
Wuhu obtained due
Grant of
Economic to research
Industry
and and
Revitalizatio
Technologica Subsidy development, Related to
n and Yes No 116,666.64
l technical assets
Technology
Development renovation
Reconstructio
Zone Finance and
n Project
Bureau transformatio
n, etc.
Grants
obtained due
Wuhu to
Economic conforming
Grant of
and to the local
Government
Technologica Subsidy supporting Related to
Infrastructure Yes No 1,122,300.00
l policies such assets
（Land
Development as local
repaymen）
Zone Finance government’s
Bureau investment
attraction
policy
Grants
obtained due
to research
Yangzhong
Equipment and
City
investment Award development, Related to
Development Yes No 109,100.00
incentive technical income
and Reform
funds renovation
Commission
and
transformatio
n, etc.
Center Wuhu City Award Grants Yes No 100,000.00 Related to
195
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Innovation Finance obtained due income
Team to the country
Support Fund encourage
and support
specific
industries
(Obtained in
accordance
with the
national
policies and
regulations)
Grants
obtained due
to
conforming
Jiangsu to the local
Taizhou New supporting
Technology Award 36,497,930.5 Related to
Energy policies such Yes No
reward 0 income
Management as local
Committe government’s
investment
attraction
policy
Wuhu
Grants
Economic
obtained due
and
to the country
Technologica
encourage
l Development
and support
Development Zone
specific
Zone Economic Award Related to
industries Yes No 114,800.00
Economic and Trade income
(Obtained in
and Trade Development
accordance
Development Bureau
with the
Bureau
national
Export
policies and
Increase
regulations)
Award
Development Development Grants
Zone Zone Award obtained due 13,312,000.0 Related to
Yes No
Economic Economic to 0 income
and Trade and Trade conforming
196
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Development Development to the local
Bureau Bureau supporting
(2012-2016) policies such
Income Tax as local
Refund government’s
investment
attraction
policy
Grants
obtained due
to the country
Wuhu
Central Party encourage
Economic
Committee and support
and
Organization specific
Technologica Related to
Department Subsidy industries Yes No 500,000.00
l income
allocates the (Obtained in
Development
third batch of accordance
Zone Finance
support funds with the
Bureau
national
policies and
regulations)
Grants
obtained due
to
Suqian
conforming
Economic Suqian
to the local
Development Economic
supporting Related to
Zone Finance Development Subsidy Yes No 230,000.00
policies such income
Bureau talent Zone Finance
as local
introduction Bureau
government’s
special funds
investment
attraction
policy
Grants
obtained due
Grant of to research
Shiijiazhuang
Glass-tube and
Municipal
Secondary development, Related to
Finance Subsidy Yes No 5,000.01
Environment technical assets
Bureau
al Protection renovation
and
transformatio
n, etc.
197
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
69,887,507.5
Total -- -- -- -- -- 320,000.00 --
2
72.Non-Operation expense
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Donation expense 268,500.00 268,500.00
Liquidated damages 2,038,214.22 472,448.13 2,038,214.22
Other 461,097.79 130,049.52 461,097.79
Total 2,767,812.01 602,497.65 2,767,812.01
73. Income tax
(1) Details of income tax
In RMB
Items Amount of current period Amount of previous period
Current Income tax 266,217,607.40 180,288,675.05
Deferred income tax 15,913,168.84 11,225,209.48
Total 282,130,776.24 191,513,884.53
（2）Accounting profit and tax expense adjustment process
In RMB
Items Amount of current period
Total profit 1,176,191,505.48
Income tax expense at statutory / applicable tax rates 176,428,725.82
Effect of different tax rates applicable to subsidiaries 59,083,388.27
Income tax adjustments on prior periods -4,817,305.09
Effect of non-taxable income 311,512.14
Affect the use of deferred tax assets early unconfirmed
-1,513,452.40
deductible losses
The current period does not affect the deferred tax assets
52,637,907.50
recognized deductible temporary differences or deductible loss
Income tax expense 282,130,776.24
198
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
74 .Other comprehensive income
Seen in Note
75.Items of Cash flow statement
（1）Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 2,562,489.64 47,314,940.12
Government subsidy 61,907,216.56 58,468,830.50
Deposits income 638,622,319.42 97,933,974.36
Other 27,459,273.74 29,668.70
Total 730,551,299.36 203,747,413.68
Explanation on other cash received in relation to operation activities：
(2)Other cash paid related to operation activities
In RMB
Items Amount of current period Amount of previous period
Deposits income 1,021,839,493.62 752,985,658.23
Consultation Services fee 30,513,337.97 13,031,790.06
Business expenses 17,688,855.86 3,187,285.00
Transportation fees 4,166,872.76 2,301,143.56
Advertising expenses 5,182,114.95 3,069,680.35
Travel expenses 20,052,329.77 4,359,728.53
Office expenses 24,347,292.88 20,222,253.34
Bank fees 25,958.40 4,791.60
Shipping fee 13,487,314.75 2,608,089.38
Petty cash 9,329,418.54 1,242,892.54
Security service charge 862,988.91 72,000.00
Vehicle charge 193,216.07 3,120.00
Communication expense 1,542,212.42 199,286.59
Rent water and electricity property 60,663,860.42 8,317,828.86
Residual insurance 1,204,391.96
199
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Labour protection fee 2,939,306.44 1,472,973.11
conference fee 2,145,102.71 664,731.28
Traffic expenses 44,596,072.72 1,546,078.81
Recruitment fees 138,443.69 1,037.74
Low-value consumables and repair costs 8,087,098.53 386,017.64
Research and development fee 37,388,611.51 25,648,041.28
Information system fee 455,883.63 2,414.71
Customs and agency fees 616,441.07 36,410.00
Other financial expenses 6,296,589.32 22,588.12
Other expenses 22,417,945.63 9,290,478.07
Total 1,336,181,154.53 850,676,318.80
Explanation on other cash paid in relation to operation activities：
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Fixed deposit 200,000,000.00 190,962.49
Total 200,000,000.00 190,962.49
Explanation on cash received from other investment activities：
Notes
(4)Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Cash flow 317,956,820.99 50,000,000.00
Other 280,256.00
Total 318,237,076.99 50,000,000.00
Explanation on cash payable from other investment activities：
（5）Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
200
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Interest received 210,076,517.70 133,596,848.85
Financing lease 280,000,000.00 103,800,000.00
Cash flow 75,708,760.40 224,500,000.00
Total 565,785,278.10 461,896,848.85
Explanation on other cash received in relation to financing activities：
（6）Cash paid related with financing activities
IIn RMB
Items Amount of current period Amount of previous period
Bank commission 2,106,071.31 1,937,116.55
Credit guarantee 4,076,591.14 27,620,596.86
Bank financing 1,900,000.00 1,130,000.00
Financial lease rent 299,742,705.14 419,037,111.72
Cash flow 332,177,258.30 50,000,000.00
Total 640,002,625.89 499,724,825.13
Explanation on cash paid related with financing activities：
76. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 894,060,729.24 685,767,271.37
Add: Impairment loss provision of assets 1,058,589.31 -497,492.48
Depreciation of fixed assets, oil and gas
475,906,123.13 399,428,761.84
assets and consumable biological assets
Amortization of intangible assets 42,850,991.09 9,559,826.81
Amortization of long-term deferred expenses 10,182,574.85 4,155,040.09
Loss on disposals of fixed assets, intangible
664,826.45 30,537.14
assets and other long-term assets ("-" for
201
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
gains)
Financial cost 588,837,294.67 415,537,608.52
Investment losses -23,706,518.19 -6,676,924.21
Decrease in deferred income tax assets 23,648,059.15 11,776,372.44
Increased in deferred income tax liabilities 2,146,288.22 -11,805.12
Decrease in inventories 703,598,779.36 -1,025,419,094.41
Decease in operating receivables -16,508,886,465.22 -2,261,677,453.88
Increase in operating payables 13,873,256,015.60 403,077,538.11
Cash flows from operating activities 83,617,287.66 -1,364,949,813.78
2.Significant investment and financing
-- --
activities not affecting cash flows
3．Changes in cash and cash equivalents： -- --
Ending balance of cash 21,442,933,365.47 22,463,648,543.19
Less: Beginning balance of cash equivalents 25,114,660,756.25 25,537,802,101.80
Net increase of cash and cash equivalents -3,671,727,390.78 -3,074,153,558.61
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Cash or Cash Equivalent of Enterprise consolidation that Occurred
111,799,996.00
in the Current Period Paid in the Current Period
Including： --
Huaxi Nanchong Automobile Co., Ltd. 44,800,000.00
Zhongcheng national construction co., Ltd. 39,999,996.00
Shenzhen Sanbao Innovation Intelligent Co., Ltd. 27,000,000.00
Less：Cash or Cash Equivalent Owned by Subsidiary on the
4,037,901.86
Purchasing Date
Including： --
Huaxi Nanchong Automobile Co., Ltd. 3,265.51
Zhongcheng national construction co., Ltd. 959,251.79
Shenzhen Sanbao Innovation Intelligent Co., Ltd. 3,075,384.56
Including： --
Received Net Cash Paid by Subsidiary 107,762,094.14
Other notes：
202
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Cash or cash equivalents received by the disposal company in the
550,000,000.00
current year
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. 550,000,000.00
Less：Cash and cash equivalents held by a controlling subsidiary 156,272,347.41
Including： --
Xuyou Electronic Materials Technology (Wuxi) Co., Ltd. 156,272,347.41
Including： --
Net cash received from disposal subsidiaries 393,727,652.59
（4）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-beginning
21,442,933,365.47 25,114,660,756.25
I. Cash
460,584.36 2,461,658.94
Including: cash in treasury
Bank savings could be used at any time 21,287,528,272.13 24,971,467,452.68
Other monetary capital could be used at any
154,944,508.98 140,731,644.63
time
III. Balance of cash and cash equivalents at
21,442,933,365.47 25,114,660,756.25
the period end
77. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
78. The assets with the ownership or use right restricted
In RMB
Items Closing book value Causation of limitation
Mainly term deposits, deposits and partial
Monetary funds 2,351,663,690.33
litigation freezes
Set up the mortgage and the fixed assets of
Fixed assets 10,433,568,773.50
the financial lease
Intangible assets 350,282,096.92 Pledge loans
203
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Construction in progress 1,210,207,009.84 Pledge loans
Investment property 66,930,130.01 Pledge loans
Total 14,412,651,700.60 --
Other notes ：
79. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Cash and bank balances
Including：USD 5,389,780.01 6.6166 35,662,018.41
Euro 38,868.80 7.6515 297,404.62
HKD 18,233.84 0.8431 15,372.95
JPY 251,464,500.95 0.0599 15,066,244.11
GBP 2,277.81 8.6551 19,714.67
Account receivable
Including：USD 1,170.41 6.6166 7,744.13
Euro
HKD 9,694.95 0.8431 8,173.81
JPY 1,726,840,023.03 0.0599 103,461,893.14
Account payable
Including：USD 3,625,065.37 6.6166 23,985,607.53
Euro 2,989.00 7.6515 22,870.33
HKD 906,750.01 0.8431 764,480.93
JPY 223,302,422.00 0.0599 13,378,941.31
Short-term loans
Including：USD 3,807,370.00 6.6166 25,191,844.34
(2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
204
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
80. Hedging
81.Other
VIII. Changes of consolidation scope
1. Enterprise consolidation not under the same control
（1）Business combinations not under common control in the reporting period
In RMB
Income of Net Profit of
Determinatio Acquire from Acquire from
Ratio of
Time-point of Obtained Method of n Basis on the the
Name of Obtained Purchasing
Obtained Cost of Obtained the Purchasing Purchasing
Acquiree Equity Date
Equity Equity Equity Purchasing Date to the Date to the
(100%)
Date End of the End of the
Period Period
Shenzhen
Merger of
Sanbao
157,750,000. non-identical Acquisition
Chuangxin May 30,2018 67.00% May 30,2018 736,964.91 -1,227,519.10
00 controlled of contro
Intelligent
enterprises
Co., Ltd.
Zhongcheng Merger of
national March 140,000,000. non-identical March Acquisition
70.00% -665,082.13
construction 30,2018 00 controlled 30,2018 of contro
co., Ltd. enterprises
Merger of
Huaxi Bus 56,000,000.0 non-identical Acquisition
April 4,2018 100.00% April 4,2018 4,251,788.55 773,846.32
Co., Ltd. 0 controlled of contro
enterprises
(2) Consolidation Cost and Goodwill
In RMB
Shenzhen Sanbao Chuangxin Zhongcheng national
Consolidation Cost Huaxi Bus Co., Ltd.
Intelligent Co., Ltd. construction co., Ltd.
--Cash 157,750,000.00 140,000,000.00 56,000,000.00
Consolidation Cost 157,750,000.00 140,000,000.00 56,000,000.00
Less：Reduction: 91,548,329.84 9,830,031.87 -773,762.72
Obtained Definable
Net Assets Fair
Proportion
205
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Goodwill/ The 66,201,670.16 130,169,968.13 56,773,762.72
Consolidation Cost is
Less Than the
Obtained Definable
Net Assets Fair
Proportion
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Shenzhen Sanbao Chuangxin Zhongcheng national construction
Huaxi Bus Co., Ltd.
Intelligent Co., Ltd. co., Ltd.
Fair value on Book value on Fair value on Book value on Fair value on Book value on
purchase date purchase date purchase date purchase date purchase date purchase date
Monetary 127,075,384.55 127,075,384.55
959,251.79 959,251.79 3,265.51 3,265.51
fund
Account 203,360.00 203,360.00
receivable
Inventory 31,984,526.65 18,724,138.92 3,275,246.59 3,280,573.26
Fixed assets 11,192,806.79 9,391,876.78 24,866.48 24,888.64
Intangible 53,241,307.46 53,849,371.07
19,486,104.61 5,402,067.11
asset
Disposal of
19,499.99 19,499.99
fixed assets
318,723.00 318,723.00
Prepayment 227,138.68 227,138.68 585,871.75 585,871.75
s
Other 5,297.05 5,297.05
350,323.23 350,323.23 386,428.00 386,428.00
receivable
Other 7,989,998.57 7,989,998.57
current 44,193.14 44,193.14
assets
Deferred 154,125.90 2,110.00
Income tax 1,331.67
assets
Account
4,200.64 4,200.64 4,839,563.18 4,839,563.18
payable
Deferred 3,765,329.44
Income tax 3,522,014.92
Liabilities
206
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Advance 412,420.94 412,420.94
176,000.00 176,000.00
Payments
Employees’ 59,926.94 59,926.94
wage 1,258,965.67 1,258,965.67
payable
Tax payable 8,067.95 8,067.95 23,898.68 23,898.68 10,343.06 10,343.06
Other 91,280,486.44 91,280,486.44
account 2,259,395.34 2,259,395.34
payable
Net assets 136,639,298.26 125,799,357.67 14,042,902.67 3,480,902.25 -773,762.72 -769,767.72
Less：
Minority
45,090,968.43 41,513,788.03 4,212,870.80 1,044,270.68
shareholders
' equity
Acquire net -773,762.72 -769,767.72
91,548,329.83 84,285,569.64 9,830,031.87 2,436,631.57
assets
Determination method for fair value of the identifiable assets and liabilities:
The acquired company Shenzhen Sanbao Chuangxin Intelligent Co., Ltd. can identify the fair value of net assets
and liabilities based on the evaluation company Wanlong (Shanghai) Asset Appraisal Co., Ltd. issued an
evaluation report.
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the controlduring the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
（6）Other notes
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Recognition Income of the Net profit of Income of the Net profit of
Combined Proportion of Combination basis of combined the combined merged party the combined
Basis
party the profits date combination party from party from during the party during
date the beginning the beginning comparison the period of
207
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
of the year to of the year to period comparison
the date of the date of
the merger the merger
Tunghsu
Pay
（Yingkou）
Same parent consideration 27,289,664.9
Optoelectroni 65.00% June 30,2018 -9,555,668.76 -5,213,532.93
company , control 9
c Display
operation
Co., Ltd.
（2） Consolidation Cost
In RMB
Consolidation Cost Tunghsu(Yingkou)Optoelectronic Display Co., Ltd.
Cash 195,525,500.00
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Tunghsu（Yingkou）Optoelectronic Display Co., Ltd.
End of previous period
Merger date
Cash and bank balances 49,876,382.38 85,581,351.01
Account receivable 26,247,411.94 27,508,065.58
27,104,233.68 23,963,131.18
Fixed assets 330,341,703.53 335,451,284.12
Intangible assets 24,988,633.63 25,314,850.99
Prepayments 2,483,530.03 858,504.05
Other receivable 32,000.00 2,000.00
Other current assets 75,603,084.09 74,056,644.01
Construction in process 586,201,554.22 570,609,032.67
Deferred Income tax assets 5,334,663.88 5,334,663.88
Other non-current assets 1,985,104.15
Account payable 28,970,435.09 101,667,530.90
Notes payable 1,164,100.00
Advance Payments 11,593.50 9,537.00
Employees’ wage payable 296,037.13 249,318.39
Tax payable 1,840,851.65 280,315.37
Interest payable 589,174.98 1,075,377.78
Other payable 187,575,741.76 124,403,423.83
208
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Non-current liabilities due 1 year 36,316,392.68 36,316,392.68
Long-term loans 420,000,000.00 425,000,000.00
Deferred Income 84,997,214.64 85,655,410.98
Other non- current liabilities 108,000,000.00 108,000,000.00
Net assets 258,451,655.95 268,007,324.71
Less：Minority shareholders' equity 90,458,079.58 93,802,563.65
Acquire net assets 167,993,576.40 174,204,761.10
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
√ Yes □No
In RMB
The
differenc
The
e
Determin amount
between
ation of of other
the
Regainin the fair compreh
disposal
The g gains value of ensive
price and The fair
Proporti book or losses the income
the share value of
Determi on of value of arising remainin related to
of the the
ning the remainin the from g equity the
Equity Equity Loss of subsidiar remainin
Disposal basis for g stocks remainin re-measu at the atomic
Name disposal disposal control y's net g equity
of equity the loss at the g equity rement date of company
price ratio point assets at at the
of date of at the of the loss of 's equity
the level date of
control loss of date of remainin control investme
of the loss of
control loss of g equity rights nt
consolid control
control at fair and its transferr
ated
value main ed to
financial
assumpti investme
statemen
ons nt profit
t
and loss
correspo
nding to
209
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
the
disposal
of the
investme
nt
Xuyou
Electro
nic
Received
Materia
consider
ls 550,000, April -2,053,5
51.00% Sell ation and 0.00% 0.00 0.00 0.00 0.00
Technol 000.00 28,2018 58.36
lost
ogy
control
(Wuxi)
Co.,
Ltd.
Other notes：
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation)
and relevant information:
6.Other
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
9 Huanghe Road,
Shijiazhuang
High-tech
Shijiazhuang
Industrial Photoelectric
Colour Bulb Co., Shijiazhuang 81.26% Establish
Development display material
Ltd.
Area,
Shijiazhuang,
Hebei Province
210
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
No.36, Daowei 2
Road, Wanchun
Wuhu Tunghsu
Street , Wuhu
Optoelectronic Photoelectric
Wuhu Economy 100.00% Establish
Technology Co., display material
Technology
Ltd.
Development
Zone
1/F, No.2
Business tower,
Huazhong
Wuhan Tunghsu
Shuguang
Optoelectronic Photoelectric
Wuhan Software park, 100.00% Establish
Technology Co., display material
No.1Guanshan
Ltd.
Road,Donghu
Development
Zone, Wuhan
Room C17,
Building 1,
Beijing Xufeng
No.10, Xinghuo Real estate
Real Estate Co., Beijing 100.00% Establish
Road, Technology Development
Ltd.
City, Fengtai
District, Beijing
No.500, Pengxi
Tunghsu
North Road,
（Kunshan） Photoelectric
Kunshan Economic 88.89% Establish
Display Material display material
Development
Co., Ltd.
Area,Kunshan
66,No 3
Zhengzhou Xufei Jingnan Road,
Optoelectronic Econornic & Photoelectric Control
Zhengzhou 100.00%
Technology Co., Technology display material combination
Ltd. Development
Zone, Zhengzhou
Shijiazhuang No.377,Zhujiang
Xuxin Road, High-tech
Photoelectric Control
Optoelectronic Shijiazhuang Area, 100.00%
display material combination
Technology Shijiazhuang,
Co.,Ltd. Hebei
Beijing Xutan 206, 2/F, Building Industrial
New Material 2B,No.80, application of
Beijing 70.00% Establish
Technology Co., Xingshikou Road, graphene
Ltd. Haidian District,
211
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Beijing
New Material
Jiangsu Jixing
Industry Zone, Photoelectric Non control
New Material Jiangsu 100.00%
Youfang Town, display material combination
Co., Ltd.
Yangzhong City
1201-E18(Area)1
2/F,No.1, 6-3
Beijing Tunghsu
Building,
Huaqing
Beijng Autornobile Investment 70.00% Establish
Investment Co.,
Museum East
Ltd.
Road, Fengtai
District, Beijing
(072) Room
109,Supervision
Building,
Fuzhou Tunghsu Processing trade
Optoelectronic Free zone, Photoelectric
Fuzhou 87.25% 12.75% Establish
Technology Co., Fuzhou, display material
Ltd. Fujian.(No.9,
Xinjiang Road,
Xincuo Town,
Fuqing City)
Wuhu Tunghsu Room 302, A floo
Optoelectronic r,Management Co
Equipment and
Equipment Wuhu mmittee of Jiangb 100.00% Establish
technical services
Technology Co., ei Industry Zone,
Ltd. Anhui Prov
Room 02,
Shanghai
2/F,No.3
Tanyuan Huigu Industrial
Building, No.28,, Non control
New Material Shanghai application of 50.50%
Jiangcchuan East combination
Technology Co., graphene
Road, Minhang
Ltd.
District ,Shanghai
Room 201, A
building, No.1,
Shenzhen Xuhui Qianwan Road,
Investment Co., Shenzhen Qianhai Investment 100.00% Establish
Ltd. Shenzhen-Hongk
ong Cooperation
Zone, Shenzhen
Tunghsu No.21, 15 Building Non control
Sichuan 100.00%
Construction Building, No.181, Installing combination
212
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Group Co., Ltd. Erhuan Road,
Jinniu District,
Chengdu
A, No .2898,
Shanghai
Huaning Road, New Energy Non control
Sunlong Bus Co., Shanghai 100.00%
Minhang Autonobile combination
Ltd.
District ,Shanghai
No.177, Fubin
Sichuan Xuhong
Nortth Road,
Optoelectronic Photoelectric Control
Mianyang Economic 100.00%
Technology Co., display material combination
Development
Ltd.
Zone, Mianyang
28/F, Shenye
R&D and
Shenzhen Sanbao Shangcheng ,
manufacturing of
Innovation Huanggang Road, Non control
Shenzhen robots and 67.00%
Intelligent Co., Hufu Street, combination
intelligent
Ltd. Futian District,
electronic devices
Shenzhen
Tunghsu
No.19, Xincheng
(Yingkou) Photoelectric Control
Liaoning Street, Yingkou 65.00%
Optoelectronic display material combination
City, Liaoning
Display Co., Ltd.
Explanation on share-holding ratio in subsidiary different from ratio of voting right：
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights：
Controlling basis for the structuring entity included in consolidated range：
Basis on determinning to be a agent or consignor：
Other notes：
Notes：According to the signed agreement, Taizhou Tunghsu Graphene Industry Investment Fund Management
Center (limited partnership) sets up the investment decision committee as the highest decision-making organ,
which is responsible for making decisions on project investment, disinvestment and other matters. The investment
decision committee is made up of five committee memerein, the general partner Beijing Tunghsu Huaqing
Investment Co., Ltd. appoints 2 members, the limited partner Tunghsu Photo-electricity Technology Co., Ltd.
appoints 1 member and the other 2 members are appointed through social recruiting. The limited partner Taizhou
Jintaiyang Energy Co., Ltd. doesn’t appoint members. And the chairman of committee shall be assumed by the
representative of general partner. The decisions will be valid with the consent of the majority of committee
members (4 votes and above), and the chairman of investment committee has the one-vote veto. As the executive
partner, the general partner Beijing Tunghsu Huaqing Investment Co., ltd. assumes unlimited, joint liabilities for
the limited partnership’s debts. As the posterity limited partner, Tunghsu Photo-electricity Technology Co., Ltd.
bears responsibilities for the limited partnership’s debts with its subscribed investment. And Taizhou Jintaiyang
Energy Co., Ltd., as the priority limited partner, assumes responsibilities for the limited partnership’s debts with
its subscribed investment.
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss attributable
Holding proportion of Dividend declared to Closing balance of
Name to non-controlling
non-controlling interest non-controlling interest non-controlling interest
interest
Fuzhou Xufu
Optoelectronic 40.00% 6,454,615.67 119,029,434.07
Technology Co., Ltd..
Shanghai Tanyuan Huigu
New Material 49.50% -3,276,208.31 48,922,792.83
Technology Co., Ltd.
Shenzhen Sanbao
Innovation Intelligent 33.00% -405,081.30 44,685,887.13
Co., Ltd.
Tunghsu (Yingkou)
Optoelectronic Display 11.11% -44,707.04 99,730,691.36
Co., Ltd.
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance Year-beginning balance
Non Current Non Non Current Non
Name Current Total Total Current Total Total
current Liabilitie current current Liabilitie current
assets assets liabilities assets assets liabilities
assets s liabilities assets s liabilities
Fuzhou
Xufu
Optoelec
761,479, 443,418, 1,204,89 719,324, 188,000, 907,324, 646,709, 423,862, 1,070,57 601,135, 188,000, 789,135,
tronic
050.29 584.41 7,634.70 049.52 000.00 049.52 574.39 686.32 2,260.71 214.70 000.00 214.70
Technolo
gy Co.,
Ltd..
Shanghai
Tanyuan
Huigu
New 24,391,6 81,670,8 106,062, 7,228,60 7,228,60 29,877,8 84,534,6 114,412, 6,477,59 389,647. 6,867,24
0.00
Material 45.13 85.30 530.43 5.53 5.53 54.31 00.13 454.44 8.47 55 6.02
Technolo
gy Co.,
Ltd.
214
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Shenzhe
n Sanbao
Innovati
63,785,0 63,842,4 127,627, 2,930,16 2,930,16 30,316,9 63,243,3 93,560,2 91,760,9 91,760,9
on 0.00 0.00
58.35 66.68 525.03 4.51 4.51 02.09 57.85 59.94 02.27 02.27
Intellige
nt Co.,
Ltd.
Tunghsu
(Yingko
u)
795,994, 601,563, 1,397,55 219,891, 280,000, 499,891, 529,335, 506,767, 1,036,10 138,034, 138,034,
Optoelec 0.00
353.63 285.70 7,639.33 650.51 000.00 650.51 649.08 622.38 3,271.46 919.30 919.30
tronic
Display
Co., Ltd.
In RMB
Amount of current period Amount of previous period
Cash flows Cash flows
Total Total
Name Business from Business from
Net profit Comprehensi Net profit Comprehensi
income operating income operating
ve income ve income
activities activities
Fuzhou Xufu
Optoelectroni 632,696,266. 16,136,539.1 16,136,539.1 -15,703,750.7 46,983,656.1 -21,118,901.4
1,844,869.14 1,844,869.14
c Technology 30 7 7 6 8 8
Co., Ltd..
Shanghai
Tanyuan
Huigu New 12,587,728.4 20,745,934.2 20,745,934.2
488,093.83 -6,566,421.86 -6,566,421.86 194,829.10 8,580,349.37
Material 7 3 3
Technology
Co., Ltd.
Shenzhen
Sanbao
Innovation 736,964.91 -1,101,997.15 -1,101,997.15 -730,374.74
Intelligent
Co., Ltd.
Tunghsu
(Yingkou)
16,409,299.1 -253,855,084. 2,968,413.54
Optoelectroni -402,363.34 -402,363.34 -360,330.51 -360,330.51
7 87 1
c Display
Co., Ltd.
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Name of Main Places of Registration Nature of Shareholding Ratio (%) Obtaining
Subsidiary Operation Place Business direct indirect Method
Yudean Finance Guangzhou Guangzhou Finance 40.00% Equity method
（2）Main financial information of Significant joint venture
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/This period Opening balance/Last period
Current assets 2,440,811,321.54 2,682,394,584.48
Non-current assets 17,426,928,351.70 9,907,461,970.78
Total of assets 19,867,739,673.24 12,589,856,555.26
Current liabilities 14,841,406,072.32 7,579,701,042.91
Total liabilities 14,841,406,072.32 7,579,701,042.91
Attributable to shareholders of the parent
5,026,333,600.92 5,010,155,512.35
company
Share of net assets calculated by stake 2,010,533,440.37 2,004,062,204.94
Book value of equity investment in
2,010,533,440.37 2,004,062,204.94
associates
Business income 105,177,198.83 75,053,678.73
Net profit 16,178,088.57 -39,256,450.56
Total comprehensive income 16,178,088.57 -39,256,450.56
(4) Summary financial information of insignificant joint venture or associated enterprise
Closing balance/This period Opening balance/Last period
Joint venture: -- --
The total number of shares in each of the
-- --
following shares
Associated enterprise： -- --
Total investment book value 130,804,634.60 126,422,519.76
The total number of shares in each of the
-- --
following shares
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
--Net 5,365,389.05 196,087.39
Total comprehensive income 5,365,389.05 196,087.39
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
(6) The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
The Company faces a variety of financial risks in the course of operation: credit risk, market risk and liquidity risk.
The Business Management Department of the Company management is fully responsible for the determination of
risk management objectives and policies, and assumes the ultimate responsibility for the risk management
objectives and policies. The Business Management Department of the Company reviews the effectiveness of the
performed programs as well as the rationality of risk management objectives and policies through monthly work
statement submitted by the Functional Department.
The objective of the Company’s engagement in risk management is to obtain a proper balance between the risks
and benefits, reduce the risks’ negative impact on the Company's operating performance to the lowest level and
maximize the interests of shareholders and other equity investors. Based on the risk management objectives, the
basic strategy of the Company's risk management is to identify and analyze the risks faced by the Company,
establish appropriate baseline of risk tolerance, conduct risk management as well as timely and reliably supervise
various risks to control the risks within a limited range.
1. Credit Risk
Credit risk refers to the financial loss risk of the other Party if one Party of financial instruments fails to perform
its obligations. The Company mainly faces customer credit risk caused by the credit sale. The Company would
make an evaluation on new customers’ credit risk before signing new contracts, which includes external credit
rating and bank reference letter (when available) under certain circumstances. The Company sets quota on credit
sale for each customer and such quota is the maximum amount without additional approvals.
The company ensures that the company's overall credit risk is within a manageable range through quarterly
audits of existing customer credit ratings and monthly audits of accounts receivable aging analysis. In monitoring
the customer's credit risk, according to the customer's credit characteristics of its grouping. Customers who are
rated as "high risk" will be placed on the restricted customer list and the company will be able to credit it in the
next period, subject to additional approval, otherwise it must be required to pay the corresponding payment in
advance.
2. Market Risk
The market risk of financial instruments refers to the risk that the fair value or future cash flow of the financial
instruments would fluctuate due to the market price changes, which includes interest rate risk ,foreign exchange
risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flow of the financial instruments would
217
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
fluctuate due to the market price changes. The interest rate risk faced by the Company mainly comes from
short-term bank loans. The Company meets various short-term financing needs through establishing good
bank-enterprise relationship as well as reasonably designing credit line, credit type and credit term to guarantee
the sufficient bank credit line. In addition, the Company also reasonably reduces the fluctuation risk of interest
rate by shortening the term of single loan and performing specially agreed prepayment term.
(2) Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of the financial instruments would
fluctuate due to the market price changes. The Company would match the foreign currency incomes and expenses
as far as possible to reduce the foreign exchange risk. On account of the small proportion of foreign financial
assets and liabilities in the total assets, there’s no forward foreign exchange contract or currency swap contract
signed by the Company in January 2018- 2017.
The foreign exchange risk faced by the Company mainly comes from the financial assets and financial
liabilities priced by US dollar, Yen, Euro and GBP . For the amount of foreign currency financial assets and
foreign currency financial liabilities converted into RMB, please refer to Note 7. In the notes to the consolidated
financial statements, 79 foreign currency monetary items.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabiliies measured by fair value
2.Recognized basis for the market price sustaining and non-persistent measured by fair value oon first-order
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure
sustaining and non-persistent on second-order
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9.Other
XII.Related parties and related-party transactions
1. Parent company information of the enterprise
Vote right ratio of
Share ratio of parent
Parent company parent company
Registration place Nature Registered capital company against the
name against the
company(%)
company(%)
No.369, Zhujiang Investment ,
Tunghsu Group 31.8billion 15.97% 21.85%
Road, High-tech production and R &
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
zone, Shijiazhuang D, etc.
Explanation on parent company of the enterprise
Ultimate controller of the Company is Li Zhaoting
2.Subsidiary of the Enterprise
See details to Notes IX, Situation of the enterprise subsidiaries refer to the Notes.
3.Cooperative enterprise and joint venture
See Notes IX.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or
occurred in pervious period：
Name Relation of other Related parties with the company
CUHK international business factoring co., Ltd Associated enterprise
Tunghsu Group Finance Co., Ltd. Associated enterprise
Tunghsu(Deyang) Graphene Industry Development Fund
Associated enterprise
Partnership (Limited Partnership)
Zibo Bus Co., Ltd. Associated enterprise
4.Other related party
Other related party Relationship with the Enterprisse
Tunghsu Technology Group Co., Ltd. The shareholders of the company
Tunghsu Optoelectronic Investment Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic vacuum Glass Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Large-diameter plastic tube Co., ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Zhonghe Steel Plastic Shape Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Xuming Tube Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baodong Electronic Co.,Ltd. Controlled by the same actual controller
Hebei Baoshi Lighting Co., Ltd. Controlled by the same actual controller
Jinzhou Xulong New Material Technology Co., Ltd. Controlled by the same actual controller
Hebei Decoration Printing Machine Co., Ltd. Controlled by the same actual controller
Chengdu Optoelectronic Technology Co., Ltd. General Manager: Li Zhaotin
Shijiazhuang Xuling Electronic Technology Co., Ltd. Controlled by the same actual controller
Shijiazhuang Baoshi Electronic Group Co., Ltd. Controlled by the same actual controller
219
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tibet Financial Leasing Co., Ltd. Controlled by the same actual controller
Tunghsu Group Finance Co., Ltd. Joint venture of the company
Yinchuan Fengxiang Street Underground integrated Management
Controlled by the same actual controller
Co., Ltd.
Yixian Xuhua Park Construction Development Co., Ltd. Controlled by the same actual controller
Guangdong Huakai Real estate Development Co., Ltd. Controlled by the same actual controller
Li Qing The spouse of the actual controller
Kunming Tunghsu Qiming Investment Development Co., Ltd. Controlled by the same actual controller
Aahui Tunghsu Dabieshan Agricultural Technology Co., Ltd. Controlled by the same actual controller
Dongguan Yijiu Real Estate Development Co., Ltd. Controlled by the same actual controller
Tunghsu North Real Estate（Beijing）Co., Ltd. Controlled by the same actual controller
Tunghsu Technology Development Co., Ltd. Controlled by the same actual controller
Tunghsu Lantian New Energy Co., Ltd. Controlled by the same actual controller
Fujian Hengda Investment Co., Ltd. Controlled by the same actual controller
Hunan Baoan Hongji Real Estate Development Co., Ltd. Controlled by the same actual controller
Huiyin Jinkong Asset Management Co.,Ltd. Controlled by the same actual controller
Huidong Baoan Hongji Real Estate Development Co., Ltd. Controlled by the same actual controller
Huidong Baoan Jinan Real Estate Development Co., Ltd. Controlled by the same actual controller
Shenzhen Hongji Property Management Co., Ltd. Controlled by the same actual controller
Chengzhou Zhexu Real Estate Co., Ltd. Controlled by the same actual controller
Zhangzhou Shenghuawu Real Estate Development Co., Ltd. Controlled by the same actual controller
Chongqing Tunghsu Qide Real Estate Co., Ltd. Controlled by the same actual controller
Baoshi Group, Industry & Trade Company Mineral Water
Controlled by the same actual controller
Factory
Shijiazhuang Tunghsu Machinery Co.,Ltd. Controlled by the same actual controller
Shanghai Anxuan Autormation Technology Co., Ltd. Controlled by the same actual controller
Tibet Xuri Asset Management Co., Ltd. Controlled by the same actual controller
Beijing Hexie Guanglu Technology Co., Ltd. Controlled by the same actual controller
Chengdu Taiyisi Technology Co., Ltd. Controlled by the same actual controller
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
In RMB
Related party Content Current amount Approval trading limit Whether over the Last amount
220
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
trading limit(Y/N)
Baoshi Group Security fees 360,500.00
Anhui Tunghsu
Dabie Mountain
Agricultural Tea oil 28,800.00
Technology Co.,
Ltd.
Shijiazhuang
Baoshi Zhonghe
Material 4,000,000.00
Steel Plastic Shape
Co., Ltd.
Shijiazhuang
Mechanical &
Baoshi Electronic
Electrical 980,000.00
vacuum Glass Co.,
Equipment
Ltd.
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Beijing Hexie Guanglu
Efficient lightbulb 287,179.49
Technology Co., Ltd.
Chengdu Taiyisi Technology
Efficient lightbulb 23,131.62
Co., Ltd.
Chengdu Optoelectronic
Efficient lightbulb 13,203.41
Technology Co., Ltd.
Chengdu Optoelectronic
Traction roll project 611,459.82 504,871.80
Technology Co., Ltd.
Dongguan Yijiu Real Estate
Construction Engineering 431,182.25
Development Co., Ltd.
Tunghsu North Real Estate
Efficient lightbulb 40,528.38
(Beijing) Co., Ltd.
Tunghsu North Real Estate
Graphene 48,801.64
(Beijing) Co., Ltd.
Tunghsu Group Efficient lightbulb 1,589,885.32
Tunghsu Technology
Construction Engineering 3,794,623.64
Development Co.,, Ltd.
Tunghsu Technology Group
Efficient lightbulb 811.97
Co., Ltd.
Tunghsu Technology Group
Graphene 2,735.05
Co., Ltd.
221
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Lantian New
Construction Engineering 2,719,618.11
EnergyCo., Ltd.
Fujian Hengda Investment
Construction Engineering 2,745,454.55
Co.,Ltd.
Fujian Hengda Investment
Graphene 15,404.96
Co.,Ltd.
Guangdong Huakai Real Estate
Construction Engineering 19,945,292.12 7,565,972.68
Development Co., Ltd.
Hebei Baoshi Lighting Co., Ltd. Efficient lightbulb -37,264.96
Hunan Baoan Hongji Real
Construction Engineering 229,566.55
Estate Development Co., Ltd.
Huiyin Jinkong Asset
Efficient lightbulb 270,305.10
Management Co., Ltd.
Huidong Baoan Hongji Real
Construction Engineering 46,614,031.74
Estate Development Co., Ltd.
Huidong Baoan Jinan Real
Construction Engineering 46,435,095.47
Estate Development Co., Ltd.
Kunming Tunghsu Qiming
Investment Development Co., Construction Engineering 140,707,948.79
ltd.
Shenzhen Hongji Property
Efficient lightbulb 263,333.34
Management Co., Ltd.
Shengzhou Zhezhao Real Estate
Construction Engineering 35,168,074.85
Co., Ltd.
Shengzhou Zhezhao Real Estate
Graphene 13,641.03
Co., Ltd.
Shijiazhuang Baoshi
Large-diameter plastic tube Co., Construction Engineering 594,000.00
ltd.
Yixian Xuhua Park
Construction Development Co., Construction Engineering 39,616,134.40 7,783,800.00
Ltd.
Yinchuan Fengxiang Street
Underground integrated Construction Engineering 45,273,158.21 97,789,036.93
Management Co., Ltd.
Zhangzhou Huawu Real Estate
Construction Engineering 22,413,913.92
Development Co., Ltd.
Zhangzhou Huawu Real Estate
Efficient lightbulb 6,974.36
Development Co., Ltd.
222
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Chongqing Tunghsu Qide Real
Construction Engineering 18,348,758.40
Estate Co., Ltd.
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertake
In RMB
Gains from the
Name of the Name of the Asset situation of
Start date Terminating date Pricing basis deal in report
employer undertaker the undertaker
period
Tunghsu Group,
Yingkou Coastal
Development
Tunghsu Tunghsu
Construction Co.,
Optoelectronic (Yingkou)
Ltd.Minmetals January 1,2012 June 30,2018 Notes1 250,000.00
Technology Co., Optoelectroric
(Yingkou)
Ltd. Display Co., Ltd.
Industrial Park
Development
Co., Ltd.
Notes 1：Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),
including basic management fee of 1 million per year, incentive management fees per year managed company
with net operating profit after tax of 5% calculation（Base incentive management fees deduct prior years' losses）
Notes 2: Trusteeship costs include basic management fees and incentive management fees(0.5 million/years),
including basic management fee of 1 million per year, incentive management fees per year managed company
with net operating profit after tax of 5% calculation.
Notes 3 :On June 30, 2018, Tunghsu Optoelectronic Technology Co., Ltd. purchased a 65% stake in Tunghsu
(Yingkou) Optoelectronic Display Co., Ltd. held by Tunghsu Group Co., Ltd., and the equity custody ended.
Lists of entrust/contractee
(3) Information of related lease
（4）Status of related party guarantee
As a secured party for the company
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Tunghsu Group , Li
200,000,000.00 March 15,2018 May 15,2019 No
Zhaoting
Tunghsu Group , Li
30,000,000.00 May 22,2018 May 22,2019 No
Zhaoting
223
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Group 100,000,000.00 January 31,2018 December 31,2018 No
Tunghsu Group , Li
200,000,000.00 June 26,2018 June 24,2019 No
Zhaoting
Tunghsu Group , Li
200,000,000.00 October 26,2017 October 26,2018 No
Zhaoting
Tunghsu Group , Li
200,000,000.00 November 30,2017 November 30,2018 No
Zhaoting
Tunghsu Group 100,000,000.00 July 31,2017 July 30,2018 No
Tunghsu Group , Li
400,000,000.00 August 15,2017 August 14,2018 No
Zhaoting
Tunghsu Group , Li
50,000,000.00 August 3,2017 August 2,2018 No
Zhaoting
Li Zhaoting 400,000,000.00 October 19,2017 October 19,2018 No
Li Zhaoting 560,000,000.00 December 15,2017 December 15,2018 No
Tunghsu Group 200,000,000.00 December 22,2017 December 22,2018 No
Tunghsu Group 50,000,000.00 November 1,2017 October 30,2018 No
Tunghsu Group 20,000,000.00 Novermber 16,2017 November 25,2018 No
Tunghsu Group 50,000,000.00 December 1,2017 November 30,2018 No
Tunghsu Group 50,000,000.00 December 28,2017 December 27,2018 No
Tunghsu Group 50,000,000.00 February 27,2018 February 27,2019 No
Tunghsu Group 25,000,000.00 April 28,2018 April 27,2019 No
Tunghsu Group 100,000,000.00 July 7,2017 July 6,2018 No
Tunghsu Group 20,000,000.00 July 26,2017 July 6,2018 No
Tunghsu Group 80,000,000.00 August 1,2017 August 1,2018 No
Tunghsu Group 50,000,000.00 August 29,2017 August 28,2018 No
Tunghsu Group 100,000,000.00 September 25,2017 September 24,2018 No
Tunghsu Group 50,000,000.00 October 9,2017 October 8,2018 No
Tunghsu Group 50,000,000.00 August 30,2017 August 29,2018 No
Tunghsu Group 25,000,000.00 October 19,2017 October 19,2018 No
Tunghsu Group 70,000,000.00 September 22,2017 September 21,2018 No
Tunghsu Group 50,000,000.00 October 12,2017 October 11,2018 No
Tunghsu Group 40,000,000.00 September 29,2017 September 27,2018 No
Tunghsu Group 100,000,000.00 October 26,2017 October 25,2018 No
Tunghsu Group , Li
100,000,000.00 December 29,2017 December 28,2018 No
Zhaoting
Tunghsu Group 200,000,000.00 June 11,2018 June 8,2019 No
224
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Group 50,000,000.00 August 24,2017 August 24,2018 No
Tunghsu Group , Li
100,000,000.00 November 13,2017 November 12,2018 No
Zhaoting
Tunghsu Group , Li
70,000,000.00 January 11,2018 December 31,2018 No
Zhaoting
Tunghsu Group , Li
30,000,000.00 February 13,2018 February 12,2019 No
Zhaoting
Tunghsu Group , Li
42,000,000.00 April 10,2018 October 10,2018 No
Zhaoting
Tunghsu Group , Li
38,000,000.00 April 11,2018 October 11,2018 No
Zhaoting
Tunghsu Group 95,000,000.00 March 19,2018 March 12,2019 No
Tunghsu Group 90,000,000.00 April 12,2018 April 2,2019 No
Tunghsu Group 15,000,000.00 June 12,2018 May 7,2019 No
Tunghsu Group 25,000,000.00 October 20,2017 October 19,2018 No
Tunghsu Group, Li
299,650,000.00 June 7,2016 June 7,2019 No
Zhaoting, Li Qing
Tunghsu Group, Li
200,000,000.00 May 15,2017 May 15,2019 No
Zhaoting, Li Qing
Tunghsu Group, Li
300,000,000.00 June 2,2017 June 2,2019 No
Zhaoting, Li Qing
Tunghsu Group, Li
115,000,000.00 October 31,2017 October 31,2019 No
Zhaoting, Li Qing
Tunghsu Group, Li
200,000,000.00 December 27,2016 December 27,2018 No
Zhaoting, Li Qing
Tunghsu Group, Li
200,000,000.00 December 29,2016 December 29,2018 No
Zhaoting, Li Qing
Tunghsu Group, Li
100,000,000.00 December 23,2016 December 23,2018 No
Zhaoting, Li Qing
Tunghsu Group 194,000,000.00 December 15,2016 December 15,2018 No
Tunghsu Group , Li
100,000,000.00 March 3,2017 March 2,2019 No
Zhaoting
Tunghsu Group , Li
204,000,000.00 March 29,2017 September 28,2018 No
Zhaoting
Tunghsu Group , Li
199,000,000.00 February 24,2017 August 23,2018 No
Zhaoting
Tunghsu Group , Li
97,000,000.00 April 27,2017 October 26,2018 No
Zhaoting
225
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Group, Tunghsu
Optoelectronic
400,000,000.00 November 30,2016 November 30,2019 No
Investment Co., Ltd., Li
Zhaoting
Tunghsu Group , Li
41,666,666.62 January 6,2017 January 6,2019 No
Zhaoting
Tunghsu Group , Li
99,000,000.00 July 7,2017 July 6,2019 No
Zhaoting
Tunghsu Group, Li
75,000,000.00 September 26,2013 April 11,2022 No
Zhaoting, Li Qing.
Tunghsu Group, Li
300,000,000.00 April 1,2014 April 11,2022 No
Zhaoting, Li Qing.
Tunghsu Group, Li
150,000,000.00 April 22,2015 April 11,2022 No
Zhaoting, Li Qing.
Tunghsu Group , Li
450,000,000.00 September 30,2016 September 29,2021 No
Zhaoting
Tunghsu Group 545,000,000.00 January 28,2013 January 27,2021 No
Tunghsu Group 39,699,600.00 January 28,2013 January 27,2021 No
Tunghsu Group 455,000,000.00 November 7,2016 June 20,2024 No
Tunghsu Group 95,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 190,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 190,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 95,000,000.00 September 18,2017 September 15,2022 No
Tunghsu Group 190,000,000.00 October 31,2017 September 15,2022 No
Tunghsu Group 190,000,000.00 October 31,2017 September 15,2022 No
Tunghsu Group , Li
300,000,000.00 November 6,2017 November 6,2020 No
Zhaoting
Tunghsu Group , Li
199,000,000.00 November 7,2017 November 7,2020 No
Zhaoting
Tunghsu Group , Li
200,000,000.00 November 10,2017 November 15,2022 No
Zhaoting
Tunghsu Group 106,813,432.82 May 25,2016 May 20,2019 No
Tunghsu Group , Li
158,352,857.29 May 31,2016 May 30,2021 No
Zhaoting
Tunghsu Group , Li
35,118,543.68 June 16,2016 June 16,2019 No
Zhaoting
Tunghsu Group, Li
200,000,000.00 May 27,2016 May 26,2019 No
Zhaoting, Li Qing.
226
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Tunghsu Group , Li
15,000,000.00 October 20,2015 October 15,2018 No
Zhaoting
Tunghsu Group 220,000,000.00 March 17,2016 March 17,2028 No
Tunghsu Group 280,000,000.00 June 16,2016 June 16,2028 No
Tunghsu Group 106,000,000.00 September 3,2016 September 2,2024 No
Tunghsu Group 45,000,000.00 May 28,2018 May 28,2019 No
Tunghsu Group 135,000,000.00 June 27,2018 June 27,2019 No
(5) Inter-bank lending of capital of related parties：
(6) Related party asset transfer and debt restructuring
(7) Rewards for the key management personnel
（8）Other related transactions
6. Payables and receivables of the related party
（1）Receivables
In RMB
Amount at year end Amount at year begiing
Name Related party
Balance of Book Bad debt provision Balance of Book Bad debt provision
Chengdu Zhong
Account receivable Optoelectronic 1,310,860.00 629,722.60
Technology Co., Ltd
Hebei Baoshi Energy
Account receivable saving lighting 43,600.00
technology Co., Ltd.
Guangdong Huakai
Real Estate
Account receivable 10,549,142.58 19,184,644.15
Development Co.,
Ltd.
Jinzhou Xulong New
Account receivable 2,449,198.07 2,449,198.07
Material Co., Ltd.
Kunming Tunghsu
Qiming Investment
Account receivable 61,056,762.56 29,110,261.39
Development Co.,
Ltd.
Yinchuan Fengxiang
Account receivable Street 181,832,540.69 173,363,844.40
Comprehensive
227
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Construction
Management Co.,
Ltd.
Huidong Baoan
Jinan Real Estate
Account receivable 22,079,177.86
Development Co.,
Ltd.
Zhangzhou
Shenghua Real
Account receivable 19,886,092.23
Estate Development
Co., Ltd.
Shengzxhou Zhexu
Account receivable Real Estate Co., 19,316,896.10
Ltd.
Huidong Baoan
Hongji Real Estate
Account receivable 14,107,754.19
Development Co.,
Ltd.
Chongqing Tunghsu
Account receivable Real Estate Co., 4,701,058.91
Ltd.
Tunghsu Technology
Account receivable Development Co., 4,174,086.00
Ltd.
Fujian Hengda
Account receivable 3,020,000.00
Investment Co., Ltd.
Tunghsu Lantian
Account receivable New Energy Co., 903,222.06
Ltd.
Guangdong Huakai
Real Estate
Account receivable 10,549,142.58
Development Co.,
Ltd.
Huiyin Jinkong
Account receivable Asset Management 221,379.90
Co., Ltd.
Beijing Hexie
Account receivable Guanglu Technology 138,000.00
Co., Ltd.
Shenzhen Hongji
Account receivable 15,405.00
Property
228
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Management Co.,
Ltd.
Hunan Baoan Hongji
Real Estate
Account receivable 12,626.16
Development Co.,
Ltd.
Hebei Baoshi Energy
Prepayments saving lighting 60,000.00 60,000.00
technology Co., Ltd.
Hebei Decoration
Prepayments Printing Machinery 848,396.00 835,680.87
Co., Ltd.
Shijiazhuang Baoshi
Other non-current
Electronic vacuum 420,000.00
assets
Glass Co., Ltd.
Other non-current
Tunghsu Group 132,132,857.44 132,132,857.44
assets
（2）Payables
In RMB
Name Related party Book balance at year end Book balance at year beginning
Shijiazhuang XumingTube Co.,
Account payable 14,948.00 14,948.00
Ltd.
Shijiazhuang Baoshi Electronic
Account payable 986,344.16 6,344.16
vacuum Glass Co., Ltd.
Shijiazhuang Baoshi
Account payable Large-diameter plastic tube Co., 533,942.80 533,942.80
ltd
Shijiazhuang Baoshi
Account payable Zhonghe Steel Plastic Shape 4,030,296.40 30,296.40
Co., Ltd.
Shijiazhuang Xuling Electronic
Account payable 1,320,164.09 1,320,164.09
Technology Co., Ltd.
Shijiazhuang Tunghsu
Account payable 14,381.92 14,381.92
Machinery Equipment Co., Ltd.
Advance revenue Tunghsu Group 46,176,000.00 46,176,000.00
Chengdu Zhong Optoelectronic
Advance revenue 38,692.80 38,692.80
Technology Co., Ltd
Advance revenue Yixian Xuhua Park 45,562,318.00 3,852,318.00
229
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Construction Development Co.,
Ltd.
Huidong Baoan Hongji Real
Advance revenue 61,371,921.90
Estate Development Co., Ltd.
Other payable Baoshi Group 722,000.00
Other payable Tunghsu Group 198,526,185.51 470,099,941.55
Shijiazhuang Baoshi Electronic
Other payable 4,739,613.30 4,700,985.30
vacuum Glass Co., Ltd.
Tibet Xuri Capital Management
Other payable 8,000,000.00
Co., Ltd.
Huidong Baoan Jinan Real
Other payable 8,400.00
Estate Development Co., Ltd.
Chengdu Zhong Optoelectronic
Other payable 6,850.92
Technology Co., Ltd
Shijiazhuang XumingTube Co.,
Other payable 97,031.00 97,031.00
Ltd.
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
230
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Importance commitment events
Important commitments of existence of balance sheet date
As of June 30,2018, there was no significant commitment or contingency in the Group.
2. Contingency
(1) Significant contingency at balance sheet date
1.Chengdu Tongxing Micro-credit Co., Ltd. sued Sichuan Shangwei Construction and Decoration Engineering Co.,
Ltd., Wang Shaoqing, Lin Suqiong, Yang Jianzhong, Tunnel Group Engineering Co., Ltd. for the loan contract,
and requested a loan amount of RMB 6,500,000, interest of RMB 87,7500 , penalty interest of 1,395,333.33
yuan, a total of 8,772,833.33 yuan,among them, the company bears the guarantee responsibility. Chuan 0191
Minchu No. 10209 of the People’s Court of Chengdu High-tech Industrial Development Zone (2016). It is first
notified to hold the court session on October 11, 2016, and later the judge telephoned the lawyer to postpone the
court session. As of the reporting date, no judgment has yet been made, and the court sentenced that the 7377500
yuan is to be borne by Shangwei Company, Wang Shaoqing, Lin Suqiong, Yang Jianzhong, and R&B Group
Engineering Co., Ltd. are jointly and severally liable for the guarantee. The court froze the amount and interest of
7,441,788 yuan.
2. Liupanshui Jiuxiang Blasting Engineering Co., Ltd. sued the company due to project construction and requested
the company to pay the project amount of RMB341,198.25 and the interest since April 30, 2014 (calculated at 6%
per annum), The No. 1929 case of (2017) QIAN 0524 MIN CHU of Zhijin County Court, Guizhou Province was
held on June 20, 2017. At present, the appeal against jurisdiction objection to the Bijie County Intermediate
People’s Court is currently being heard.
3Construction project contract disputes. The plaintiff Xu Wenhua requested amount: 1. Construction and
guarantee funds of RMB 3 million and the calculation of interest losses on the basis of the People's Bank loan
interest rate for the same period from August 10, 2013 to the time of payment; 2. The defendant will bear the legal
costs. The No. 992 case of (2017) E 2823, MINCHU of the People's Court of Badong County, Hubei Province
was held at 14:40 on June 12, 2017. and the appeal against jurisdiction objection to the People’s Court of Enshi
Tujia and Miao Autonomous Prefecture of Hubei Province is currently being heard.
4. Construction project contract disputes. Plaintiff (counterclaim defendant) Zhou Jihong, defendant (counterclaim
231
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
plaintiff) Daosui Group Engineering Co., Ltd., defendant (counterclaim third party) Road&bridge International
Co., Ltd., defendant (counterclaim third party) Chengdu Beixin Construction Engineering Co., Ltd. The Nanchong
Intermediate People's Court made the No. 29 civil judgment (2013) Nanzhongfaminchuzi on April 21, 2017,
ruling: Daosui Group paid Zhou Jihong 167,034.97 yuan of various amount and interest, and the interest should be
accounted from May 16, 2013; reject the counter-claims of Daosui Group. After the verdict of first instance,
Road&bridge International Co., Ltd. and Bridge Construction Co., Ltd. and Daosui Group Engineering Co., Ltd.
both filed an appeal.
5. Labor contract dispute, plaintiff: Yang Zaibing, who requesting an amount of 333,874.00 yuan. Chuan 3330
Minchu No. 16 case of Sichuan Province Dege County People’s Court (2017) was opened at 9: 00 on July 20,
2017. On July 25, 2017, Chuan 3330 Minchu No. 16 Judgment of Sichuan Province Dege County People’s
Court (2017) ruled that Luo Zhicong paid the plaintiff 333,874.00 yuan, and Sichuan province Jinkun Labor
Company and R&B Group Guang’an Engineering Co., Ltd. were jointly and severally liable. A second instance
appeal has been filed.
6. Construction project contract disputes. The plaintiff Chongqing Mingyi Labor Service Co., Ltd. requested the
amount of 5 million yuan in project compensation and the interest from August 1, 2011. The No. 2370 Case of
(2017) CHUAN 1130 MINCHU of the People's Court of Shunqing District of Nanchong City was held at 15:30
on July 26th, 2017, and the case was transferred to the Intermediate People's Court of Chengdu for railway
transportation.
7. Construction project contract disputes. Plaintiff: Chongqing Minyi Labor Service Co., Ltd., Defendant: Daosui
Group Engineering Co., Ltd., Road&bridge International Co., Ltd., Third Party: Earth and Rock Engineering
Branch of Sichuan Nanchong Hongcheng Construction Engineering Co., Ltd., Litigation Request: Litigation
request: Daosui Group Engineering Co., Ltd. pays 4,260,061 yuan for on-site material equipment and interest on
January 23, 2011; Road&bridge International Co., Ltd. and the third party bear joint responsibility for payment
within the scope of 2,750,721.63 yuan of on-site materials and equipment received. The No. 2371 case of (2017)
CHUAN 1302 MINCHU of People's Court of Shunqing District of Nanchong City was held at 15:30 on July 27th,
2017, and the case was transferred to the Intermediate People’s Court of Chengdu for railway transportation.
8. Private lending disputes. Plaintiff: Ye Pingyuan, defendant: He Yuanyuan, Daosui Group, plaintiff's request:
immediate repayment of the loan principal amount of 3.3 million yuan and interests of 726,000 yuan during the
period, overdue interests and penalty interests, etc.; a total of 80,000 yuan for lawyers’ fees, travel expenses,
property preservation guarantees, etc. The plaintiff's request: immediate repayment of the loan principal of 2.7
million yuan and interest of 972,000 yuan during the period, overdue interest and penalty interest, etc.; payment of
legal fees, travel expenses, property preservation guarantee fees, etc., totaling 50,000 yuan. The People’s Court of
Nanan District, Chongqing City accepted and issued the No. 5009 and No.5010 notice of respondence to action of
(2017)YU 0108 ZI to Daosui Group on August 3, 2018.
9. Dispute on sales contract, plaintiff: Building Materials Management Department of Xiaoren Yangliuping Sand
Field, Zishi Township, Tianquan County, who requesting the payment of 2,262,194.00 yuan for sand and gravel
materials and interest calculated from the date of prosecution to the date of actual payment based on the bank
interest rate for the same period. In the case of Chuan 1825 Minchu No. 668 of Sichuan Tianquan County
People’s Court (2017), R&B group filed a jurisdictional objection. The case is scheduled to open at 9: 00 on
August 18, 2017. The appeal for jurisdictional objection is currently being heard.
10.Disputes over compensation for property damages, plaintiff: Yan Kaiyuan, defendant: Project Management
232
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Department of A2-1 bid of R&B Group Engineering Co., Ltd., Xie Wanyou and Yin Xiuchao, the plaintiffs
request an compensation for damages to electromechanical wells, water pumps and other losses totaling
182,900.00 yuan. No. 01292 case of Helingeer County People's Court (2015) is scheduled to open on December
29, 2015.
11.Dispute on construction contract, plaintiff: Nanchong Jianan Labor Co., Ltd., defendant: CCCC Road and
Bridge Construction Co., Ltd., third party: R&B Group Engineering Co., Ltd., the plaintiff requests a lawsuit
related to R&B Group: the defendant was ordered to pay 3,850,838.84 yuan of creditor’s rights and interest
transferred by the third party, and the third party was jointly and severally liable. The case of Chuan 1302 Minchu
No. 1489 of Nanchong Shunqing District People’s Court (2017) will open at 15: 30 on June 6, 2017. CCCC
Road and Bridge Construction Co., Ltd. raised a jurisdictional objection which is currently being heard.
12.Dispute over right of recourse, plaintiff: Liang Honglin, requesting 234,000.00 yuan, i.e. overdue interest,
Chuan 1681 Minchu No. 225 case of Huaying Municipal People's Court (2016) was on court on July 21, 2017. On
August 8, 2017, Chuan 1681 Minchu No. 225 judgment of Huaying Municipal People's Court (2016) ruled that
R&B should return 100,000 yuan to plaintiff and calculate interest based on loan interest for the same period
starting from (September 20, 2016).
（2）The Company have no significant contingency to disclose, also should be stated
The was no significant contingency in the Company.
233
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
3.Other
XV. Post-balance-sheet events
1. Significant events had not adjusted
2. Profit distribution
3. Sales return
4.Notes of ohter significant events
XVI. Other signifiant enents
1.The accounting errors correction in previous period
（1）Retrospective restatement
（2）Prospective application
2. Debt restructuring
3. Replacement of assets
（1）Non-monetary assets exchange
（2）Other assets replacement
4.Pension plan
5.Discontinuing operation
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
（2）Reporting Segment Financial Information
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
（4）Other notes
7. Other important transactions and events have an impact on investors’ decision-making
234
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
8.Other
XVII. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Account receivables
provided bad debt 24,066,8 333,978. 23,732,86 24,456, 619,428.9 23,837,262.
100.00% 1.39% 100.00% 2.53%
provision in credit 41.50 91 2.59 691.50 1 59
risk groups
24,066,8 333,978. 23,732,86 24,456, 619,428.9 23,837,262.
Total 100.00% 1.39% 100.00% 2.53%
41.50 91 2.59 691.50 1 59
Receivable accounts with large amount individually and bad debt provisions were provided.
□ Applicable √ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □Not applicable
In RMB
Amount in year-end
Aging
Account reivable Provision for bad debts Proportion%
Within item 1 year
Within credit period 900.00
Subtotal 1 year 900.00
3-4 years 138,768.39 69,384.20 50.00%
Over 5 years 264,594.71 264,594.71 100.00%
Total 403,363.10 333,978.91
Notes：
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
Name Amount in year-end Amount in year- begin
Other group 23,663,478.40
235
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
（2）Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the
reversed or collected part during the reporting period was of RMB285,450.0.
Where the current bad debts back or recover significant amounts:
In RMB
Name Back or withdraw money Method
Hebei Shengshi Machinery tools Group Co.,
285,450.00
Ltd.
Total 285,450.00 --
（3）The current accounts receivable written-offs situation
（4）The ending balance of other receivable owed by the imputation of the top five parties
The total receivable amount of top five closing balances collected by the debtors in the current reporting period is
RMB20,069,912.24, which accounts for 83.39% of the total receivables. The total amount of closing balance for
corresponding accrued bad-debt provision is RMB0.00.
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
2. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion( Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) %)
Other account
4,792,3
receivables provided 7,277,65 1,590,10 7,276,060 1,590,109 4,790,712,6
100.00% 0.02% 02,782. 100.00% 0.03%
bad debt provision in 0,814.21 9.46 ,704.75 .46 72.70
16
credit risk groups
4,792,3
7,277,65 1,590,10 7,276,060 1,590,109 4,790,712,6
Total 100.00% 0.02% 02,782. 100.00% 0.03%
0,814.21 9.46 ,704.75 .46 72.70
16
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Other receivable of combinational withdrawing bad debt provision by aging analysis method
236
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
√Applicable□ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Provision for bad debts Proportion(%)
WithinItem 1 year
Within credit period 12,411,147.86
Within 1 year after credit period 96,550.70 4,827.54 5.00%
Subtotal 1 year 12,507,698.56 4,827.54
3-4 years 200,000.00 100,000.00 50.00%
Over 5 years 1,485,281.92 1,485,281.92 100.00%
Total 14,192,980.48 1,590,109.46
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√Applicable□ Not applicable
Closing Balance
Name
Other account reivable Bad debt provision Proportion
Related current account 7,235,364,183.36
Deposit 26,693,666.66
676,970.63
Personal official borrowing
576,360.09
Persona Returnable Insurance
Export tax refunds 146,652.99
Total 7,263,457,833.73
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB 0.00.
Significant amount of reversed or recovered bad debt provision：
(3) Other account receivables actually cancel after wtite-off
(4) Other account receivables category by nature of money
In RMB
Naature Ending book balance Beginning book balance
Related current account 7,235,364,183.36 4,728,633,349.92
current account 14,192,980.48 28,846,088.84
237
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Deposit 26,693,666.66 31,693,666.66
Personal official borrowing 676,970.63 159,109.89
Persona Returnable Insurance 576,360.09 446,555.34
Other 146,652.99 2,524,011.51
Total 7,277,650,814.21 4,792,302,782.16
（5）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
Wuhu Tunghsu
Optoelectronic Current account 2,830,661,471.94 Within credit period 38.90%
Technology Co., Ltd.
Wuhu Tunghsu
Optoelectronic Within credit period
Current account 2,503,648,360.33 34.40%
Equipment
Technology Co., Ltd.
Shanghai Sunlong
Current account 745,000,000.00 Within credit period 10.24%
Bus Co., Ltd.
Beijing Xufeng Real
Current account 455,852,347.30 Within credit period 6.26%
Estate Co., Ltd.
Fuzhou Xufu
Within credit period
Optoelectronic Current account 282,500,616.65 3.88%
Technology Co., Ltd.
Total -- 6,817,662,796.22 -- 93.68%
(6) Accounts receivable involved with government subsidies
3.Long-term equity investment
In RMB
End of term Beginning of term
Items Impairment Impairment
Book Balance Book value Book Balance Book value
provision provision
Investment in 23,295,190,195.2 22,917,017,545.3 21,269,035,359.7 20,890,862,709.8
378,172,649.84 378,172,649.84
subsidiaries 1 7 1 7
Investment in
joint ventures and 2,141,338,074.97 2,141,338,074.97 2,129,502,187.30 2,129,502,187.30
associates
238
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
25,436,528,270.1 25,058,355,620.3 23,398,537,547.0 23,020,364,897.1
Total 378,172,649.84 378,172,649.84
8 4 1 7
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Wuhu Tunghsu
Optoelectronic
Equipment 290,900,000.00 290,900,000.00
Technology Co.,
Ltd.
Shijiazhuang
Xuxin
Optoelectronic 1,966,568,609.92 1,966,568,609.92
Technology Co.,
Ltd
Zhengzhou Xufei
Optoelectronic
1,791,853,741.58 1,791,853,741.58
Technology Co.,
Ltd.
Sichuan Xuhong
Optoelectronic
1,221,178,272.58 800,000,000.00 2,021,178,272.58
Technology Co.,
Ltd.
Wuhu Tunghsu
Optoelectronic
4,711,064,000.00 4,711,064,000.00
Technology Co.,
Ltd.
Fuzhou Tunghsu
Optoelectronic
1,745,000,000.00 1,745,000,000.00
Technology Co.,
Ltd.
Wuhan Tunghsu
Optoelectronic
3,247,200.00 690.57 3,246,509.43
Technology Co.,
Ltd.
Fuzhou Xufu 24,000,000.00 24,000,000.00
239
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Optoelectronic
Technology Co.,
Ltd.
Shenzhen Xuhui
Investment Co., 100,000,000.00 100,000,000.00
Ltd.
Xuyou Electric
Material
570,628,050.30 570,628,050.30
Technology
（Wuxi）Co., Ltd.
Tunghsu
（Yingkou）
167,993,576.37 167,993,576.37
Optoelectroinc
Display Co., Ltd.
Shijiazhuang
Colour Bulb 439,341,956.80 439,341,956.80 378,172,649.84
Co., Ltd
Jiangsu Jixing
New Material Co., 222,345,300.00 71,040,000.00 293,385,300.00
Ltd.
Tunghsu
（Kunshan）
800,000,000.00 800,000,000.00
Display Material
Co., Ltd.
Beijing Xutan
New Material
10,500,000.00 10,500,000.00
Technology Co.,
Ltd.
Beijing Xufeng
Real Estate Co., 470,000,000.00 470,000,000.00
Ltd.
Tunghsu
Construction 3,000,453,728.53 3,000,453,728.53
Group Co.,Ltd.
Shanghai Sunlong
3,800,000,000.00 1,400,000,000.00 5,200,000,000.00
Bus Co., Ltd.
Shenzhen Sanbao
Chuangxin 157,750,000.00 157,750,000.00
Inteligent Co., Ltd.
Beijing Tunghsu
3,500,000.00 3,500,000.00
Huaqing
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Investment Co.,
Ltd.
anghai Tanyuan
Huigu New
Material 73,454,500.00 73,454,500.00
Technology Co.,
Ltd.
Taizhou Tunghsu
graphene Industry
Investment Fund 25,000,000.00 25,000,000.00
Management
Cente
21,269,035,359.7 23,295,190,195.2
Total 2,596,783,576.37 570,628,740.87 378,172,649.84
1 1
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decrease Gain/loss nt of Declarati
Opening Add Other n Closing of
Name d of other on of cash
balance investmen equity impairme Other balance impairme
investmen Investme comprehe dividends
t changes nt nt
t nt nsive or profit
provision provision
income
I. Joint ventures
II. Associated enterprises
Zhongda
Chengx
in
Internat
ional 73,306,96 2,886,186 76,193,15
Comm 8.08 .76 4.84
ercial
Factori
ng Co.,
Ltd.
Tunghsu(
Deyang) 19,454,20 19,483,72
29,527.77
Graphen 0.71 8.48
e
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
Develop
ment
Fund
Partners
hip（LP）
Tunghsu
2,004,062 6,471,235 2,010,533
Finance
,204.94 .43 ,440.37
Group
Zibo Bus 32,678,81 2,448,937 35,127,75
Co., Ltd. 3.57 .71 1.28
2,129,502 11,835,88 2,141,338
Subtotal
,187.30 7.67 ,074.97
2,129,502 11,835,88 2,141,338
Total
,187.30 7.67 ,074.97
（3）Other notes
Long term equity
investment impairment Opening balance Increase Decrease Closing balance
Name
Shijiazhuang Colour 378,172,649.84 378,172,649.84
Bulb Co., Ltd
Total 378,172,649.84 378,172,649.84
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 54,602,917.98 38,492,540.23 11,006,532.52 6,941,391.49
Other business 713,064.42 27,591,148.66 21,150,871.79
Total 55,315,982.40 38,492,540.23 38,597,681.18 28,092,263.28
Other notes：
5. Investment income
In RMB
Items Amount of current period Amount of previous period
Investment loss through disposal of
11,835,887.67 -15,507,683.03
long-term equity investment
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Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
-20,628,050.30
Disposal of investment income from
long-term equity investments
Other Investment income 13,923,452.07 22,183,417.04
Total 5,131,289.44 6,675,734.01
6.Other
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Gains/Losses on the disposal of non-current
-664,826.45
assets
Government grants recognized in the current
period, except for those acquired in the
ordinary course of business or granted at 44,668,918.09
certain quotas or amounts according to the
country’s unified standards
Gains and losses from assets under trusted
13,923,452.07 Investment Financing income
investment or Management
Gain/loss from debt reorganization 484,207.00
Net gain/loss of current term from
consolidation of subsidiaries under common Business combination under the same
-9,555,668.76
control from beginning of term to the control. Retroactive adjustment
consolidation date
Entrusted with the operating of the trust to
235,849.06
obtain fee income
Net amount of non-operating income and 2,694,248.35
expense except the aforesaid items
Less: .Amount of influence of income tax 6,987,734.04
Amount of influence of minority interests -2,152,164.99
Total 46,950,610.31 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
243
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
2 Return on net assets and earnings per share
Earnings per share
Profit of the report period Return on net assets . Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the
Common stock shareholders of 2.74% 0.15 0.15
Company.
Net profit attributable to the
Common stock shareholders of
2.59% 0.140 0.120
Company after deducting of
non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
4.Other
244
Tunghsu Optoelectronic Technology Co., Ltd. The Semi-annual Report 2018
XI. Documents available for inspection
1.The original semi-annual report bearing the signature of the Chairman of the Board of Directors of the
Company;
2.The text of the financial report bearing the seal and signature of the 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.
4.【Notes】This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese
version shall prevail.
Tunghsu Optoelectronic Technology Co., Ltd.
Chairman:Wang Lipeng
Issue day approved by the Board of Directors：August 30，2018
245
