TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 Stock code：000413,200413 Abbreviation：Dongxu Optoelectronic, Dongxu B AnnouncementNo.：2018-120 TunghsuOptoelectronic Technology Co., Ltd.
The Summary of 2018 Semi-annual Report
August 2018
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 I. Important Notice
The summary is abstract from full-text of annual report, for more details information , investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed by CSRC.
Non-standard audit opinion tips
□ Applicable√ Not applicable
The board discussed reporting period ordinary shares profit distribution plan or provident fund to share capital plan
□ Applicable√ Not applicable
The board approved this reporting period preferred shares profit distribution plan
□ Applicable√ Not applicable
II. Company Information
1.Company Profile
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|-|-|-|-|-|
||Dongxu Optoelectronic,Dongxu B|||000413、200413|
|Stock abbreviation||Stock code|||
|Stock exchange for listing|Shenzhen Stock Exchange||||
|Contact person and contact manner|Board secretary||Securities affairs Representative||
||Gong Xin||Wang Qingfei||
|Name|||||
||Lin 5 Yard,No.23 A Fuxing Road, HaidianDistrict, Beijing ,China.||Lin 5 Yard,No.23 A Fuxing Road, HaidianDistrict, Beijing ,China.||
|Add|||||
|Tel|010-68297016||010-68297016||
|Fax|010-68297016||010-68297016||
|E-mail|gongxin_dx@126.com||wangqingfei@dong-xu.com||

2.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:
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 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||637,480,381.47||
|||635,855,750.37||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||-1,364,949,813.78||
|||-1,414,361,686.97||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||30,949,718,542.41||
|||30,922,796,455.46||0.85%|
|shareholders of the listed company（RMB）|||||

3.Shareholders and shareholding
In Shares
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common||||||||
|shareholders at the end of the|358,541（Including 341,239 shareholders holding A shares and 17,302 shareholders holding B shares）|||||||
|reporting period||||||||
|Particulars about shares held above 5% by shareholders or top ten shareholders||||||||
||||Proportion of|Number of|Amount of|Number of share||
|||Nature of||||||
|Shareholders|||shares held|shares held at|restricted shares|pledged/frozen||
|||shareholder||||||
||||（%）|period -end|held|State of share|Amount|
|Tunghsu Group||Domestic Non-State-owned legalperson|15.97%|915,064,091|791,889,488|||
|||||||Pledge|799,643,042|
|Shijiazhuang Baoshi ElectronicGroup Co., Ltd.||Domestic Non-State-owned legalperson|5.80%|332,382,171||||
|||||||Pledge|153,520,000|
|Shanghai Huimao Enterprise||Domestic Non|4.58%|262,626,262|262,626,262|Pledge|80,240,722|

TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|Management Co., Ltd.|-State-owned legalperson||||||
|China Fund Management Co., Ltd.－Huaxia Bank－TTCO Trust Co.,Ltd.－TTCO Trust Co., Ltd.－Shunjing No.5 Single capital trust|Other|2.54%|145,759,116||||
|Minsheng Royal Fund ManagementCo., Ltd－-Ping An Bank-DayeTrust·Zengli 2 single Fund Trust|Other|1.70%|97,192,224|97,192,224|||
|Tunghsu Optoelectronic TechnologyCo., Ltd.－The first ESOP|Other|1.27%|72,639,296|72,639,296|||
|BeixinRuifeng Fund－ChinaMerchants Bank－Daye Trust－Daye Trust·Profit increase 3 singlefund plan|Other|1.08%|62,095,032|62,095,032|||
|Shenzhen Taianer InformationTechnology Co., Ltd.|Domestic Non-State-owned legalperson|1.07%|61,165,682||||
||||||Pledge|55,265,682|
|Wanhe Securities－ChinaMerchants Bank－Wanhe Securitiesand No.1 Collective assetmanagement plan|Other|0.96%|55,246,500||||
|Nuoan Fund-IndustrialSecurities-Nanjing Shuangan AssetsManagement Co., Ltd.|Other|0.96%|55,246,487||||
|||Among the top ten shareholders ,Tunghsu Group and Baoshi Group have|||||
|||relationship and constitute persons taking concerted action. The company|||||
|Explanation on shareholders participating in the margin|||||||
|||does not know whether there is relationship between other 8 shareholders or|||||
|trading business|||||||
|||whether they are persons taking concerted action defined in Administrative|||||
|||Measures Relating to Acquisitions of Listed Companies.|||||
|Notes to the shareholders involved in financing|||||||
|||Not applicable|||||
|securities (if any)|||||||

4. 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.
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 5. Statement of preffered shares held by top 10 shareholders
□ Applicable√ Not applicable
Report period has no preffered shares statement
6.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
|||||||
|-|-|-|-|-|-|
||Abbreviated Bond|||Bond||
|Bond Name||Code|Date Due||Interest Rate|
||Name|||Balance(RMB’0000)||
|2015- corporate bond of Tunghsu||||||
||15Tunghsu bonds|112243|May 19,2020|95,604.27|6.80%|
|Optoelectronic Technology Co., Ltd||||||

(2).Financial indicators to the end of the reporting period
Ten thousand
|||||
|-|-|-|-|
|Items|As at the end of the reporting period|As at the end of last year|YoY+/-（%）he same period|
|Debt ratio|52.04%|53.11%|-1.07%|
||Reporting period|The same period of last year|At the same time rate of change|
|EBITDA interest||||
||3.44|2.85|20.70%|
|coverage ratio||||

III. .Operation situation discussion and analysis
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
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 of128.24% over the same period in 2017; the net profit attributable to the parent Company of RMB 811 million, an increase of43.83% over the same period in 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.
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 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[5million] 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 glasssubstrateSheet Production Line of Xuhong Optoelectronic was included into theCompany’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 theCompany’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 majorcustomers’ 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 developmentand 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.
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 GrapheneApplication 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
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 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 linesand
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 SuqianPeople’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 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 theCompany’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.
TunghsuOptoelectronic Technology Co., Ltd. The Semi-annual Report 2018 2.related to fianance report item
(1)The explain about accounting policies, accounting evaluation and accounting checking methods compared the last accounting year
□ Applicable√ Not applicable
The report period has no change about accounting policies, accounting evaluation and accounting
checking methods.
(2). The explain about having main accounting mistake and need retrospective restatement
in report period
□ Applicable√ Not applicable
(3).The explain about the change of combined statements range compared the last accounting year
□ Applicable√ Not applicable
1.Notthe same controlled company merge
(1) Not the same controlled company merge in this year
See note eight for details.
TunghsuOptoelectronic Technology Co., Ltd. Chairman: Wang Lipeng Issue day approved by the Board ofDirectors：August 30, 2018