Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 October 2019 1 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 I. Important Notice 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. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Wang Lipeng, Person in charge of the Company, Ms.Feng Qiuju , Person in charge of accounting works, Mr.Wang Cang , Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness of the financial report enclosed in this report. 2 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 II. Basic information about the company I.Main financial data and financial index Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. √Yes □No Reasons for retrospective restatements: Accounting policy change Changed (%)over As at the end of the As at the end of last year end of prev. year reporting period Before adjustment After adjustment After adjustment Gross assets(Yuan) 72,440,407,897.85 72,576,122,859.60 72,576,122,859.60 -0.19% Net assets attributable to the shareholders of the listed company 33,282,397,733.05 32,521,130,925.14 32,521,130,925.14 2.34% (Yuan) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating revenue(Yuan) 4,091,106,986.20 -33.30% 12,566,196,209.13 -27.21% Net profit attributable to the shareholders of the listed company 290,704,217.37 -36.37% 1,134,880,387.35 -13.71% (Yuan) Net profit after deducting of non-recurring gain/loss attributable 183,931,159.91 -58.26% 962,026,486.57 -23.16% to the shareholders of listed company(Yuan) Net cash generated from /used in -- -- 127,114,559.45 124.66% operating activities(Yuan) Basic earning per 0.05 -37.50% 0.20 -13.04% share(Yuan/Share) Diluted gains per 0.05 -37.50% 0.20 -13.04% share(Yuan/Share) Weighted average return on 0.88% -39.31% 3.45% -17.66% equity(%) The Reason of the Change of the Accounting Policy and the Correction of the Accounting Error Items and amount of non-current gains and losses √ Applicable □ Not applicable In RM B 3 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Amount (Year-beginning to Items Notes the end of the report period.) Non-current asset disposal gain/loss(including the write-off part 147,664,236.12 for which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business 107,995,116.58 and granted under the state’s policies) Gain/loss on loans obtained by entrusting others 246,200.42 Other non-operating income and expenditure beside for the above 4,745,332.46 items Less: Influenced amount of income tax 74,860,960.41 Amount of influence of minority interests(After tax) 12,936,024.39 Total 172,853,900.78 -- 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 recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares 377,080( Including 360,087 Total preference shareholders shareholders holding A Total number of common shareholders at the with the voting power shares and 16,993 0 period-end recovered at the end of the shareholders holding B reporting period(if any) shares) Shares held by the top 10 shareholders Amount of Pledging or freezing tradable shares Properties of Share Shareholder name Quantity with Status of the shareholder proportion % Quantity Conditional shares held Domestic Non Tunghsu Group Co., Ltd. -State-owned legal 15.97% 915,064,091 352,006,791 Pledge 799,643,042 person Shijiazhuang Baoshi Domestic Non Electronic Group Co., -State-owned legal 5.80% 332,382,171 Pledge 153,520,000 Ltd. person Shanghai Huimao Domestic Non Enterprise M anagement -State-owned legal 4.58% 262,626,262 262,626,262 Pledge 80,000,000 Co., Ltd. person Beixin Ruifeng Fund- China M erchants Bank- Daye Trust-Daye Other 1.08% 62,095,032 TrustProfit increase 3 single fund plan Shenzhen Taianer Domestic Non Information Technology -State-owned legal 1.07% 61,165,682 Pledge 55,265,682 Co., Ltd. person Hong Kong Securities Overseas Legal 0.94% 53,932,469 Clearing Co., Ltd. person M insheng Royal Fund M anagement Co., Ltd- Domestic Non -Ping An Bank-Daye -State-owned legal 0.85% 48,663,412 TrustZengli 2 single person Fund Trust Kunshan Development State-owned legal Zone State-Owned person 0.73% 41,838,269 Investment Holding Co., Ltd. 5 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Tunghsu Optoelectronic Technology Co., Ltd.- Other 0.63% 36,319,731 The first ESOP Domestic Non China Securities Finance -State-owned legal 0.54% 30,906,112 Co., Ltd. person Shares held by the Top 10 Shareholders of Non-restricted shares Share type Shareholders’ Names Number of the non-restricted shares held Share type Quantity RM B Tunghsu Group Co., Ltd. 563,057,300 Common 563,057,300 shares RM B Shijiazhuang Baoshi Electronic Group Co., 332,382,171 Common 332,382,171 Ltd. shares Beixin Ruifeng Fund-China M erchants Bank RM B -Daye Trust-Daye TrustProfit increase 3 62,095,032 Common 62,095,032 single fund plan shares RM B Shenzhen Taianer Information Technology Co., 61,165,682 Common 61,165,682 Ltd. shares RM B Hong Kong Securities Clearing Co., Ltd. 53,932,469 Common 53,932,469 shares M insheng Royal Fund M anagement Co., Ltd- RM B -Ping An Bank-Daye TrustZengli 2 single 48,663,412 Common 48,663,412 Fund Trust shares Kunshan Development Zone State-Owned RM B Investment Holding Co., Ltd. 41,838,269 Common 41,838,269 shares RM B Tunghsu Optoelectronic Technology Co., Ltd. 36,319,731 Common 36,319,731 -The first ESOP shares RM B China Securities Finance Co., Ltd. 30,906,112 Common 30,906,112 shares RM B Pingan Bank Co., Ltd.-China stock 800 trading 24,381,300 Common 24,381,300 open index securities investment fund shares 6 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Among the top ten shareholders , Tunghsu Group and, Baoshi Group have relationship and constitute persons taking concerted action. The company does not Explanation on shareholders participating in know whether there is relationship between other 8 shareholders or whether they the margin trading business are persons taking concerted action defined in Administrative M easures Relating to Acquisitions of Listed Companies Participation of top 10 unconditional common share shareholders in securities margin trading Not applicable (if any) 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. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 7 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 III Significant Events I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes √ Applicable □ Not applicable No Items Ending balance Opening balance Changes Remarks on the change Inventories increased by 47.65%, which’s mainly due to the stock for the completion of the follow-up orders and 1 Inventories 5,183,647,890.84 3,510,786,666.85 47.65% the increase in the outstanding unsettled assets of the construction business segment. The main reason is that the increase of Long-term account 2 553,235,076.74 344,430,815.68 60.62% installment business leads to the receivable increase of long-term receivables. Long-term account M ainly due to the decrease in the 3 1,552,195,921.05 2,644,309,592.95 -41.30% payable balance of finance lease loans Year-beginning to S ame period of last No Items the end of the report Changes Remarks on the change year period M ainly due to that the Company optimized the product structure and 1 Revenue 12,566,196,209.13 17,263,567,779.22 -27.21% concentrated the resources to strengthen the quality product development. M ainly due to corresponding changes in 2 Operating costs 9,911,799,916.26 14,026,126,902.57 -29.33% business income M ainly due to the increased sales 3 Sales expense 257,054,949.35 179,353,037.49 43.32% promotion M ainly due to the increase in 4 Other income 391,804,098.83 155,240,877.89 152.38% government grant II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. □ Applicable √ Not applicable Progress in the implementation of share repurchase □ Applicable √ Not applicable Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding □ Applicable √ Not applicable 8 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √Not applicable The company has no commitments completed in period and those without completed till lend of the period from actual controller, shareholders, related parties, purchaser and companies. IV. Investment in securities √ Applicable □Not applicable In RM B Book Book value Cumulat Purchas value M ode of balance Changes Sale ive fair e Gain/los balance Stock Initial accounti at the in fair amount Account Source Security Security value amount s of the at the Abbrevi investm ng beginni value of in the ing of the category code changes in the reportin end of ation: ent cost measure ng of the this this items shares in this g period the ment the period period equity period reportin reportin g period g period Transac 3,000,0 3,000,0 3,000,0 9,945.6 Self Bonds 204004 GC004 FVM 0.00 0.00 0.00 0.00 tional 00.00 00.00 00.00 1 funds financia 3,000,0 3,000,0 3,000,0 9,945.6 Total -- 0.00 0.00 0.00 0.00 -- -- 00.00 00.00 00.00 1 Disclosure date for the notice of approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ M eeting (If any) V. Entrusted Financial Management □ Applicable √Not applicable There is no Entrusted Financial Management during the report period. VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √ Applicable □Not applicable 9 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Reception time Way of reception Types of visitors Basic index Details can be found in the Record Chart of the M ay 31,2019 Onsite investigation Organization Investor Relation Activity disclosed on Juchao website(www.cninfo.com.cn) on 31 M ay 2019. Details can be found in the Record Chart of the Investor Relation Activity disclosed on Juchao September 16,2019 Onsite investigation Organization website(www.cninfo.com.cn) on 16 September 2019. January 1,2019 -- By phone Individual Company telephone records September30,2019 VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period IV. Financial State ment I. Financial statement 1. Consolidated balance sheet Prepared by:Tunghsu Optoelectronic Technology Co., Ltd. September 30,2019 In RM B Items September 30,2019 December 31,2018 Current asset: Cash and bank balances 18,316,331,896.27 19,807,094,397.16 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into 10 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 current income account Derivative financial assets Notes receivable 254,982,458.07 499,781,503.17 Account receivable 11,801,072,939.48 14,352,781,895.39 Financing of receivables Prepayments 6,149,290,112.13 5,215,414,219.51 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 1,821,457,689.85 1,125,991,020.55 Including:Interest receivable 143,850,518.91 56,811,961.67 Dividend receivable Repurchasing of financial assets Inventories 5,183,647,890.84 3,510,786,666.85 Contract assets Assets held for sales 119,355,435.58 119,355,435.58 Non-current asset due within 1 year Other current asset 842,775,602.57 809,360,778.49 Total of current assets 44,488,914,024.79 45,440,565,916.70 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 243,158,605.30 Other investment on bonds Expired investment in possess Long-term receivable 553,235,076.74 344,430,815.68 Long term share equity investment 2,220,130,837.05 2,174,347,969.22 Other equity instruments investment Other non-current financial assets 548,158,605.30 Property investment 703,253,374.12 686,993,881.02 Fixed assets 9,512,734,799.30 9,634,463,323.77 Construction in progress 4,956,647,559.30 5,013,941,980.61 Production physical assets 11 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Oil & gas assets Use right assets Intangible assets 1,071,918,499.27 1,146,949,745.14 Development expenses 40,072,802.72 37,122,235.94 Goodwill 2,702,403,019.28 2,835,672,586.90 Long-germ expenses to be amortized 22,903,926.50 21,884,204.82 Deferred income tax asset 529,157,272.82 533,094,627.68 Other non-current asset 5,090,878,100.66 4,463,496,966.82 Total of non-current assets 27,951,493,873.06 27,135,556,942.90 Total of assets 72,440,407,897.85 72,576,122,859.60 Current liabilities Short-term loans 10,129,150,000.00 8,361,106,651.33 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 1,245,105,499.95 1,643,167,026.68 Account payable 7,169,816,748.49 8,632,927,106.20 Advance receipts 1,640,093,367.18 1,402,283,662.37 Contract Liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 147,644,202.06 238,146,977.17 Tax payable 374,808,968.47 817,173,127.12 Other account payable 2,627,744,791.21 2,089,603,676.60 Including:Interest payable 283,661,586.73 117,554,951.58 Dividend payable 89,544,942.34 Fees and commissions payable Reinsurance fee payable Liabilities held for sales 12 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Non-current liability due within 1 year 3,238,184,894.19 3,697,392,864.91 Other current liability 473,494,228.58 315,193,128.73 Total of current liability 27,046,042,700.13 27,196,994,221.11 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 2,953,742,673.95 2,741,589,600.00 Bond payable 5,283,889,315.84 5,630,818,825.32 Including:preferred stock Sustainable debt Lease liability Long-term payable 1,552,195,921.05 2,644,309,592.95 Long-term remuneration payable to staff Expected liabilities 92,169,224.93 99,765,750.04 Deferred income 670,373,925.18 676,146,399.31 Deferred income tax liability 53,646,602.58 55,192,983.97 Other non-current liabilities 508,000,000.00 108,000,000.00 Total non-current liabilities 11,114,017,663.53 11,955,823,151.59 Total of liability 38,160,060,363.66 39,152,817,372.70 Owners’ equity Share capital 5,730,250,118.00 5,730,250,118.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 21,812,136,465.66 21,786,233,393.78 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income -29,175.80 -29,175.80 Special reserve 14,215,188.29 12,614,331.35 Surplus reserves 245,507,019.95 245,507,019.95 Common risk provision Retained profit 5,484,740,436.95 4,750,977,557.86 Total of owner’s equity belong to the 33,282,397,733.05 32,521,130,925.14 parent company M inority shareholders’ equity 997,949,801.14 902,174,561.76 Total of owners’ equity 34,280,347,534.19 33,423,305,486.90 13 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Total of liabilities and owners’ equity 72,440,407,897.85 72,576,122,859.60 Legal representative :Wang Lipeng Person-in-charge of the accounting work:Feng Qiuju Person-in -charge of the accounting organ:Wang Cang 2. Balance sheet of Parent Company In RM B Items September 30,2019 December 31,2018 Current asset: Cash and bank balances 4,680,260,358.50 9,732,302,654.23 Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 50,000.00 Account receivable 238,937,474.76 176,563,926.23 Financing of receivables Prepayments 2,778,960.71 2,008,364.11 Other account receivable 11,570,854,039.27 6,281,675,319.27 Including:Interest receivable 46,967,564.49 7,521,489.86 Dividend receivable 500,000,000.00 500,000,000.00 Inventories 187,539,316.81 269,759,580.95 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 148,973.38 148,973.38 Total of current assets 16,680,519,123.43 16,462,508,818.17 Non-current assets: Debt investment Available for sale of financial assets 129,500,056.00 Other investment on bonds Expired investment in possess 14 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Long-term receivable Long term share equity investment 28,389,525,568.72 26,504,735,200.89 Other equity instruments investment Other non-current financial assets 429,500,056.00 Property investment Fixed assets 149,336,842.79 160,867,244.63 Construction in progress Production physical assets Oil & gas assets Use right assets Intangible assets 9,078,606.77 9,339,387.26 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 102,498,508.59 119,964,967.85 Other non-current asset Total of non-current assets 29,079,939,582.87 26,924,406,856.63 Total of assets 45,760,458,706.30 43,386,915,674.80 Current liabilities Short-term loans 6,529,000,000.00 4,278,000,000.00 Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 7,214,450.15 11,500,796.58 Advance receipts 842,498.78 1,991,498.78 Contract Liabilities Employees’ wage payable 4,481,371.86 4,484,401.86 Tax payable 13,821,959.07 17,959,833.09 Other account payable 4,582,303,283.17 3,656,725,253.66 Including:Interest payable 263,454,751.86 97,197,464.99 Dividend payable 89,544,942.34 Liabilities held for sales 15 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Non-current liability due within 1 year 1,473,257,632.58 1,533,383,333.28 Other current liability Total of current liability 12,610,921,195.61 9,504,045,117.25 Non-current liabilities: Long-term loan 496,000,000.00 Bond payable 4,683,889,315.84 5,630,818,825.32 Including:preferred stock Sustainable debt Lease liability Long-term payable Long-term remuneration payable to staff Expected liabilities Deferred income Deferred income tax liability Other non-current liabilities Total non-current liabilities 5,179,889,315.84 5,630,818,825.32 Total of liability 17,790,810,511.45 15,134,863,942.57 Owners’ equity Share capital 5,730,250,118.00 5,730,250,118.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 21,832,453,907.50 21,832,453,907.50 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income Special reserve Surplus reserves 226,517,795.62 226,517,795.62 Retained profit 184,848,693.73 467,252,231.11 Total of owners’ equity 27,969,648,194.85 28,252,051,732.23 Total of liabilities and owners’ equity 45,760,458,706.30 43,386,915,674.80 3.Consolidated Income statement of the Report period In RM B 16 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Items Amount in this period Amount in last period I. Turnover 4,091,106,986.20 6,133,715,988.34 Including :Operating income 4,091,106,986.20 6,133,715,988.34 Interest income Insurance fee earned Fee and commission received II. Total operating costs 3,960,264,425.02 5,609,792,675.17 Including :Operating costs 3,339,906,699.32 5,036,411,172.85 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty, net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 13,484,690.14 23,906,807.14 Sales expense 101,242,232.81 85,460,345.07 Administrative expense 129,084,674.37 148,717,384.56 R & D expense 152,203,114.68 167,589,371.79 Financial expenses 224,343,013.70 147,707,593.76 Including:Interest expense 309,177,328.11 260,361,572.27 Interest income 90,045,140.54 116,750,430.74 Add:Other income 169,152,359.66 46,878,821.37 Investment gain(“-”for loss) 137,097,767.53 17,356,371.68 Including: investment gains from -1,055,027.96 16,524,039.25 affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange Net exposure hedging income Changing income of fair value Credit impairment loss -4,068,499.41 Impairment loss of assets 1,400,471.00 653,072.76 Assets disposal income -2,073,076.28 -814,481.33 III. Operating profit(“-”for loss) 432,351,583.68 587,997,097.65 17 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Add :Non-operating income 1,881,466.41 8,221,514.11 Less: Non-operating expenses 2,259,372.16 1,196,410.58 IV Total profit(“-”for loss) 431,973,677.93 595,022,201.18 Less:Income tax expenses 127,395,305.35 133,529,216.17 V Net profit 304,578,372.58 461,492,985.01 (I) Classification by business continuity 1.Net continuing operating profit 304,578,372.58 461,492,985.01 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of 290,704,217.37 456,861,464.93 parent company 2.M inority shareholders’ equity 13,874,155.21 4,631,520.08 VI. Net after-tax of other comprehensive -9,338.97 income Net of profit of other comprehensive inco -2,996.12 me attributable to owners of the parent co 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. 3. Changes in the fair value of investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will be -2,996.12 reclassified into profit or loss. 1.Other comprehensive income under the 18 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 equity method investee can be reclassifie d into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair v alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financ -2,996.12 ial statements 9.Other Net of profit of other comprehensive inco me attributable to M inority shareholders’ -6,342.85 equity VII. Total comprehensive income 304,578,372.58 461,483,646.04 Total comprehensive income attributable 290,704,217.37 456,858,468.81 to the owner of the parent company Total comprehensive income 13,874,155.21 4,625,177.23 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.05 0.08 (II)Diluted earnings per share 0.05 0.08 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB-9,555,668.76. Legal representative :Wang Lipeng Person-in-charge of the accounting work:Feng Qiuju Person-in -charge of the accounting organ:Wang Cang 19 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 4.Income statement of the Parent Company of the Report period In RM B Items Amount in this period Amount in last period I. Revenue 1,135,035.03 3,256,300.61 Including :Operating costs 876,819.06 2,218,588.34 Business tax and surcharge 990,268.44 915,072.46 Sales expense 18,769.00 Administrative expense 4,234,809.43 8,823,593.81 R & D expense 774,668.87 Financial expenses 105,138,400.02 103,671,007.85 Including:Interest expenses 207,064,079.10 132,725,693.85 Interest income 102,879,825.66 30,455,946.93 Add:Other income Investment gain(“-”for loss) 381,599,672.04 16,524,776.06 Including: investment gains from -1,055,027.96 16,524,776.06 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets -52,500.00 Assets disposal income II. Operating profit(“-”for loss) 270,719,741.25 -95,813,454.79 Add :Non-operating income 1,570.00 973.04 Less:Non -operating expenses 5,341.10 209,000.00 III. Total profit(“-”for loss) 270,715,970.15 -96,021,481.75 Less:Income tax expenses 40,765,649.72 IV Net profit 229,950,320.43 -96,021,481.75 1.Net continuing operating profit 229,950,320.43 -96,021,481.75 2.Termination of operating net profit V. Net after-tax of other comprehensive income (I)Other comprehensive income items 20 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 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. 3. Changes in the fair value of investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (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. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair v alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other VI. Total comprehensive income 229,950,320.43 -96,021,481.75 VII. Earnings per share 21 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 (I)Basic earnings per share (II)Diluted earnings per share 5. Consolidated Income statement between the beginning of the year and end of the report period In RM B Items Amount in this period Amount in last period I. Turnover 12,566,196,209.13 17,263,567,779.22 Including:Operating income 12,566,196,209.13 17,263,567,779.22 Interest income Insurance fee earned Commission charge and commission income II. Total operating costs 11,606,233,115.90 15,696,976,204.44 Including :Operating costs 9,911,799,916.26 14,026,126,902.57 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty,net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 60,211,803.78 210,002,927.84 Sales expense 257,054,949.35 179,353,037.49 Administrative expense 411,202,698.94 412,996,869.13 R & D expense 373,530,637.91 325,561,757.35 Financial expenses 592,433,109.66 542,934,710.06 Including:Interest expense 897,744,842.39 856,102,489.72 Interest income 319,022,171.63 314,912,662.98 Add:Other income 391,804,098.83 155,240,877.89 Investment gain(“-”for loss) 159,148,105.57 41,062,889.87 Including: investment gains from 16,382,867.83 28,360,663.73 affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange 22 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Net exposure hedging income Changing income of fair value Credit impairment loss -13,735,862.13 Impairment loss of assets -353,137.15 -405,516.55 Assets disposal income -2,073,076.28 -1,479,307.78 III. Operating profit(“-”for loss) 1,494,753,222.07 1,761,010,518.21 Add :Non-operating income 9,801,394.59 14,167,411.04 Less: Non-operating expense 4,574,800.13 3,964,222.59 IV Total profit(“-”for loss) 1,499,979,816.53 1,771,213,706.66 Less:Income tax expenses 314,304,023.20 415,659,992.41 V Net profit 1,185,675,793.33 1,355,553,714.25 (I) Classification by business continuity 1.Net continuing operating profit 1,185,675,793.33 1,355,553,714.25 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of 1,134,880,387.35 1,315,157,554.01 parent company 2.M inority shareholders’ equity 50,795,405.98 40,396,160.24 VI. Net after-tax of other comprehensive 4,756.26 income Net of profit of other comprehensive inco 4,756.26 me attributable to owners of the parent co 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. 3. Changes in the fair value of investments in other equity instruments 4. Changes in the fair value of the 23 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 company’s credit risks 5.Other (II) Other comprehensive income that will be 4,756.26 reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie d into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair v alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financ 4,756.26 ial statements 9.Other Net of profit of other comprehensive inco me attributable to M inority shareholders’ equity VII. Total comprehensive income 1,185,675,793.33 1,355,558,470.51 Total comprehensive income attributable 1,134,880,387.35 1,315,162,310.27 to the owner of the parent company Total comprehensive income 50,795,405.98 40,396,160.24 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.20 0.23 (II)Diluted earnings per share 0.20 0.23 24 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB-9,555,668.76. Legal representative :Wang Lipeng Person-in-charge of the accounting work:Feng Qiuju Person-in -charge of the accounting organ:Wang Cang 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RM B Items Amount in this period Amount in last period I. Revenue 119,463,664.36 58,572,283.01 Including :Operating costs 105,145,585.10 40,711,128.57 Business tax and surcharge 4,976,905.87 3,087,770.21 Sales expense 18,769.00 Administrative expense 20,956,885.00 33,117,331.75 R & D expense 2,472,551.86 Financial expenses 249,197,283.14 355,271,284.54 Including:Interest expenses 549,600,702.10 486,422,033.10 Interest income 302,394,392.44 132,632,720.00 Add:Other income 50,000.00 Investment gain(“-”for loss) 399,037,567.83 21,656,065.50 Including: investment gains from 16,382,867.83 28,360,663.73 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss 3,579.22 Impairment loss of assets 241.00 7,848,812.69 Assets disposal income II. Operating profit(“-”for loss) 135,805,841.44 -359,826,748.25 Add :Non-operating income 379,929.80 1,644.45 Less:Non -operating expenses 5,341.10 209,000.15 III. Total profit(“-”for loss) 136,180,430.14 -360,034,103.95 25 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Less:Income tax expenses 17,466,459.26 -1,269,693.27 IV Net profit 118,713,970.88 -358,764,410.68 1.Net continuing operating profit 118,713,970.88 -358,764,410.68 2.Termination of operating net profit V. Net after-tax of other comprehensive income (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit 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. 3. Changes in the fair value of investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (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. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair v alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 6. Allowance for credit impairments in investments in other debt obligations 26 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other VI. Total comprehensive income 118,713,970.88 -358,764,410.68 VII. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RM B Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 16,313,795,681.66 15,776,552,566.68 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 Cash received from interest, commission charge and commission Net increase of inter-bank fund received Net increase of repurchasing business Net cash received by agent in securities trading Tax returned 214,448,224.11 535,606,707.13 Other cash received from business 1,054,754,750.55 1,445,590,352.94 operation 27 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Sub-total of cash inflow 17,582,998,656.32 17,757,749,626.75 Cash paid for purchasing of 14,639,564,848.32 14,640,101,334.51 merchandise and services Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Net increase for Outgoing call loan Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 796,831,947.67 873,946,590.61 Taxes paid 858,148,458.85 718,192,319.59 Other cash paid for business activities 1,161,338,842.03 2,040,936,112.00 Sub-total of cash outflow from business 17,455,884,096.87 18,273,176,356.71 activities Net cash generated from /used in 127,114,559.45 -515,426,729.96 operating activities II. Cash flow generated by investing Cash received from investment 1,251,030,000.00 retrieving Cash received as investment gains 13,923,452.07 Net cash retrieved from disposal of fixed assets, intangible assets, and other 148,041.02 3,889,040.00 long-term assets Net cash received from disposal of 154,823,420.43 393,727,652.59 subsidiaries or other operational units Other investment-related cash received 1,540,725,801.60 329,439,021.36 Sub-total of cash inflow due to 1,695,697,263.05 1,992,009,166.02 investment activities Cash paid for construction of fixed assets, intangible assets and other 1,281,678,070.49 2,899,735,048.66 long-term assets Cash paid as investment 332,390,000.00 446,473,324.50 Net increase of loan against pledge Net cash received from subsidiaries and 108,724,611.43 other operational units 28 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Other cash paid for investment 754,833,239.59 452,439,739.56 activities Sub-total of cash outflow due to 2,368,901,310.08 3,907,372,724.15 investment activities Net cash flow generated by investment -673,204,047.03 -1,915,363,558.13 III.Cash flow generated by financing Cash received as investment 131,690,000.00 6,399,500.00 Including: Cash received as investment 125,000,000.00 6,399,500.00 from minor shareholders Cash received as loans 6,414,443,540.78 4,419,098,213.33 Other financing –related cash received 2,062,562,380.83 777,589,299.83 Sub-total of cash inflow from financing 8,608,695,921.61 5,203,087,013.16 activities Cash to repay debts 6,652,951,104.36 6,926,972,109.28 Cash paid as dividend, profit, or 1,227,738,290.72 1,171,170,999.61 interests Including: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 713,106,691.62 704,299,273.76 Sub-total of cash outflow due to 8,593,796,086.70 8,802,442,382.65 financing activities Net cash flow generated by financing 14,899,834.91 -3,599,355,369.49 IV Influence of exchange rate -803,387.02 7,175,415.44 alternation on cash and cash equivalents V.Net increase of cash and cash -531,993,039.69 -6,022,970,242.14 equivalents Add: balance of cash and cash 14,916,637,291.04 25,114,660,756.25 equivalents at the beginning of term VI ..Balance of cash and cash 14,384,644,251.35 19,091,690,514.11 equivalents at the end of term 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RM B Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 100,044,957.17 70,757,928.40 rending of services 29 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Tax returned 13,719.30 Other cash received from business 1,255,277,193.85 444,929,669.15 operation Sub-total of cash inflow 1,355,322,151.02 515,701,316.85 Cash paid for purchasing of 2,062,657.18 34,817,201.76 merchandise and services Cash paid to staffs or paid for staffs 12,823,734.51 24,886,017.39 Taxes paid 33,282,120.77 33,226,454.45 Other cash paid for business activities 1,272,735,223.00 219,935,549.94 Sub-total of cash outflow from business 1,320,903,735.46 312,865,223.54 activities Net cash generated from /used in 34,418,415.56 202,836,093.31 operating activities II.Cash flow generated by investing Cash received from investment 1,770,000,000.00 retrieving Cash received as investment gains 678,923,452.07 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of 400,000,000.00 subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 400,000,000.00 2,448,923,452.07 investment activities Cash paid for construction of fixed assets, intangible assets and other long-term assets Cash paid as investment 2,162,300,000.00 2,617,565,500.00 Net cash received from subsidiaries and other operational units Other cash paid for investment 23,721,374,168.74 20,234,170,247.66 activities Sub-total of cash outflow due to 25,883,674,168.74 22,851,735,747.66 investment activities Net cash flow generated by investment -25,483,674,168.74 -20,402,812,295.59 III. Cash flow generated by financing 30 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Cash received as investment Cash received as loans 3,051,000,000.00 580,000,000.00 Other financing –related ash received 19,504,029,140.15 19,085,073,335.80 Sub-total of cash inflow from 22,555,029,140.15 19,665,073,335.80 financing activities Cash to repay debts 1,468,383,333.28 3,281,257,300.02 Cash paid as dividend, profit, or 688,082,349.42 735,920,735.65 interests Other cash paid for financing activities 1,350,000.00 Sub-total of cash outflow due to 2,157,815,682.70 4,017,178,035.67 financing activities Net cash flow generated by financing 20,397,213,457.45 15,647,895,300.13 IV Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash -5,052,042,295.73 -4,552,080,902.15 equivalents Add: balance of cash and cash 9,732,302,654.23 11,224,359,236.39 equivalents at the beginning of term VI ..Balance of cash and cash 4,680,260,358.50 6,672,278,334.24 equivalents at the end of term II Adjustments to the Financial Statements 1. Adjustment of the relevant items of the financial statements at the current year beginning according to the new standards for financial instruments, the new standards for revenues and the new standards for lease implemented commencing from year 2019 √ Applicable □ Not applicable Consolidated balance sheet In RM B Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Cash and bank balances 19,807,094,397.16 19,807,094,397.16 Settlement provision Outgoing call loan Transactional financial assets 31 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable 499,781,503.17 499,781,503.17 Account receivable 14,352,781,895.39 14,352,781,895.39 Financing of receivables Prepayments 5,215,414,219.51 5,215,414,219.51 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 1,125,991,020.55 1,125,991,020.55 Including:Interest receivable 56,811,961.67 56,811,961.67 Dividend receivable Repurchasing of financial assets Inventories 3,510,786,666.85 3,510,786,666.85 Contract assets Assets held for sales 119,355,435.58 119,355,435.58 Non-current asset due within 1 year Other current asset 809,360,778.49 809,360,778.49 Total of current assets 45,440,565,916.70 45,440,565,916.70 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial 243,158,605.30 -243,158,605.30 assets Other investment on bonds Expired investment in possess Long-term receivable 344,430,815.68 344,430,815.68 Long term share equity 2,174,347,969.22 2,174,347,969.22 investment Other equity instruments 32 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 investment Other non-current financial 243,158,605.30 243,158,605.30 assets Property investment 686,993,881.02 686,993,881.02 Fixed assets 9,634,463,323.77 9,634,463,323.77 Construction in progress 5,013,941,980.61 5,013,941,980.61 Production physical assets Oil & gas assets Use right assets Intangible assets 1,146,949,745.14 1,146,949,745.14 Development expenses 37,122,235.94 37,122,235.94 Goodwill 2,835,672,586.90 2,835,672,586.90 Long-germ expenses to be 21,884,204.82 21,884,204.82 amortized Deferred income tax asset 533,094,627.68 533,094,627.68 Other non-current asset 4,463,496,966.82 4,463,496,966.82 Total of non-current assets 27,135,556,942.90 27,135,556,942.90 Total of assets 72,576,122,859.60 72,576,122,859.60 Current liabilities Short-term loans 8,361,106,651.33 8,361,106,651.33 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 1,643,167,026.68 1,643,167,026.68 Account payable 8,632,927,106.20 8,632,927,106.20 Advance receipts 1,402,283,662.37 1,402,283,662.37 Contract liabilities Selling of repurchased financial assets Deposit taking and interbank deposit 33 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 238,146,977.17 238,146,977.17 Tax payable 817,173,127.12 817,173,127.12 Other account payable 2,089,603,676.60 2,089,603,676.60 Including:Interest payable 117,554,951.58 117,554,951.58 Dividend payable Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due 3,697,392,864.91 3,697,392,864.91 within 1 year Other current liability 315,193,128.73 315,193,128.73 Total of current liability 27,196,994,221.11 27,196,994,221.11 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 2,741,589,600.00 2,741,589,600.00 Bond payable 5,630,818,825.32 5,630,818,825.32 Including:preferred stock Sustainable debt Lease liability Long-term payable 2,644,309,592.95 2,644,309,592.95 Long-term remuneration payable to staff Expected liabilities 99,765,750.04 99,765,750.04 Deferred income 676,146,399.31 676,146,399.31 Deferred income tax liability 55,192,983.97 55,192,983.97 Other non-current liabilities 108,000,000.00 108,000,000.00 Total non-current liabilities 11,955,823,151.59 11,955,823,151.59 Total of liability 39,152,817,372.70 39,152,817,372.70 Owners’ equity Share capital 5,730,250,118.00 5,730,250,118.00 34 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 21,786,233,393.78 21,786,233,393.78 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income -29,175.80 -29,175.80 Special reserve 12,614,331.35 12,614,331.35 Surplus reserves 245,507,019.95 245,507,019.95 Common risk provision Retained profit 4,750,977,557.86 4,750,977,557.86 Total of owner’s equity 32,521,130,925.14 32,521,130,925.14 belong to the parent company M inority shareholders’ equity 902,174,561.76 902,174,561.76 Total of owners’ equity 33,423,305,486.90 33,423,305,486.90 Total of liabilities and 72,576,122,859.60 72,576,122,859.60 owners’ equity Adjustment statement According to the Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets (CK [2017] No.8), the Accounting Standards for Business Enterprises No.24-Hedge Accounting (CK [2017] No.9), Accounting Standard for Business Enterprises No.37-Presentation of Financial Instruments (CK [2017] No.14) (hereinafter referred to as the new financial instruments standards) issued by the Ministry of Finance in 2017, in combination with the company's business mode of managing financial assets and the contractual cash flow characteristics of financial assets, the original available-for-sale financial assets are adjusted to be accounted for as financial assets measured at fair value with changes included in current profits and losses. Since the period is more than one year, it is listed as "other non-current financial assets" in the report. Parent Company Balance Sheet In RM B Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Cash and bank balances 9,732,302,654.23 9,732,302,654.23 Transactional financial assets Financial assets measured at fair value with variations accounted into current 35 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 income account Derivative financial assets Notes receivable 50,000.00 50,000.00 Account receivable 176,563,926.23 176,563,926.23 Financing of receivables Prepayments 2,008,364.11 2,008,364.11 Other account receivable 6,281,675,319.27 6,281,675,319.27 Including:Interest receivable 7,521,489.86 7,521,489.86 Dividend receivable 500,000,000.00 500,000,000.00 Inventories 269,759,580.95 269,759,580.95 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 148,973.38 148,973.38 Total of current assets 16,462,508,818.17 16,462,508,818.17 Non-current assets: Debt investment Available for sale of financial 129,500,056.00 -129,500,056.00 assets Other investment on bonds Expired investment in possess Long-term receivable Long term share equity 26,504,735,200.89 26,504,735,200.89 investment Other equity instruments investment Other non-current financial 129,500,056.00 129,500,056.00 assets Property investment Fixed assets 160,867,244.63 160,867,244.63 Construction in progress Production physical assets Oil & gas assets Use right assets Intangible assets 9,339,387.26 9,339,387.26 36 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset 119,964,967.85 119,964,967.85 Other non-current asset Total of non-current assets 26,924,406,856.63 26,924,406,856.63 Total of assets 43,386,915,674.80 43,386,915,674.80 Current liabilities Short-term loans 4,278,000,000.00 4,278,000,000.00 Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 11,500,796.58 11,500,796.58 Advance receipts 1,991,498.78 1,991,498.78 Contract Liabilities Employees’ wage payable 4,484,401.86 4,484,401.86 Tax payable 17,959,833.09 17,959,833.09 Other account payable 3,656,725,253.66 3,656,725,253.66 Including:Interest 97,197,464.99 97,197,464.99 payable Dividend payable Liabilities held for sales Non-current liability due 1,533,383,333.28 1,533,383,333.28 within 1 year Other current liability Total of current liability 9,504,045,117.25 9,504,045,117.25 Non-current liabilities: Long-term loan Bond payable 5,630,818,825.32 5,630,818,825.32 Including:preferred stock 37 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 Sustainable debt Lease liability Long-term payable Long-term remuneration payable to staff Expected liabilities Deferred income Deferred income tax liability Other non-current liabilities Total non-current liabilities 5,630,818,825.32 5,630,818,825.32 Total of liability 15,134,863,942.57 15,134,863,942.57 Owners’ equity Share capital 5,730,250,118.00 5,730,250,118.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 21,832,453,907.50 21,832,453,907.50 Less:Shares in stock 4,422,320.00 4,422,320.00 Other comprehensive income Special reserve Surplus reserves 226,517,795.62 226,517,795.62 Retained profit 467,252,231.11 467,252,231.11 Total of owners’ equity 28,252,051,732.23 28,252,051,732.23 Total of liabilities and 43,386,915,674.80 43,386,915,674.80 owners’ equity Adjustment statement According to the Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets (CK [2017] No.8), the Accounting Standards for Business Enterprises No.24-Hedge Accounting (CK [2017] No.9), Accounting Standard for Business Enterprises No.37-Presentation of Financial Instruments (CK [2017] No.14) (hereinafter referred to as the new financial instruments standards) issued by the Ministry of Finance in 2017, in combination with the company's business mode of managing financial assets and the contractual cash flow characteristics of financial assets, the original available-for-sale financial assets are adjusted to be accounted for as financial assets measured at fair value with changes included in current profits and losses. Since the period is more than one year, it is listed as "other non-current financial assets" in the report. 38 Tunghsu Optoelectronic Technology Co., Ltd. The Third Quarterly Report 2019 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for financial instruments and the new standards for lease implemented commencing from year 2019 √Applicable □Not applicable Beginning January 1, 2019, the company began to implement the new financial instrument guidelines, This accounting policy change does not involve retrospective adjustments in previous years, and does not affect the Company's 2018 annual financial indicators. III. Auditor’ report Is the Third Quarterly Report be audited? □ Yes √No The Third Quarterly report is not audited. Tunghsu Optoelectronic Technology Co., Ltd. Board Chairman: Wang Lipeng Issue day approved by the Board of Directors:October 30,2019 39